Farmers Weekly NZ July 31 2017 by AgriHQ

3 Hamilton steps down Vol 16 No 30, July 31, 2017

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MPI urges vigilance Annette Scott annette.scott@nzx.com

HILE he may be the first in New Zealand to have the cattle disease Mycoplasma bovis detected on his farm, South Canterbury dairy farmer Aad van Leeuwen is confident he won’t be the last. The Ministry for Primary Industries notified the detection of Mycoplasma bovis (M. bovis) disease on a South Canterbury dairy farm on July 25, but the identity of the property wasn’t revealed until four days later, on Friday, prompting speculation to run rife meantime. Devastated that the disease – listed as an unwanted organism under NZ’s Biosecurity Act 1993 – had hit his dairy operation, van Leeuwen said he was cooperating 100% with MPI. “In fact, I have been willing long before now to keep moving on this faster than I have been allowed,” he said. “But for reasons critical to MPI and the meat industry, there was an embargo on what I could do, and I was told this was in the best interests of the industry to contain the disease. “I was set to destroy the cows as soon as they were diagnosed, I pushed very hard from day-one for that to happen but I had to wait – the embargo has been lifted and I can now do that. “The cows will go very soon,” van Leeuwen said. Initially 150 cows valued at about $270,000 would be killed. “It’s devastating and it’s

upsetting, for us and staff and everyone involved on our farm, but we know that this is what has to happen.” The van Leeuwen family run 13 dairy operations in the South Canterbury region, with an additional three support farms. The dairy enterprise includes the world’s largest robotic dairy barn, established at a cost of $22 million to carry a maximum 1500 cows. But contrary to assumption, van Leeuwen said M. bovis wasn’t the result of his barn farming. “All these infected cows were I was set to destroy outside cows, and all were in very the cows as soon good nick,” van Leeuwen said. as they were diagnosed He said he had never had – I pushed very hard any previous awareness of the from day-one for that to disease. happen. “But now I do believe this has been in NZ for a while, managed without knowing what it was – not Aad van Leeuwen just in South Canterbury, but right Dairy farmer across NZ. “It has only now been identified and I may be the first – I don’t CONCERN: About 150 farmers attended an MPI meeting on M. bovis cattle disease in Glenavy last Friday. know, perhaps we are lucky we are the first, but I am sure we won’t be “At this time, we are still of stock and other risk goods off not just the dairy industry – a lot the last.” determining the scale of this the farms. of beef farmers are getting calves Farmers at a meeting in situation through onfarm Neighbouring properties, from the dairy industry, so it’s Glenavy on Friday were keen to sampling and testing, and tracing understood to number about 50, pretty widespread for everyone.” learn more. of movements of stock on and off Anderson said it was made clear would also undergo testing. There was a real thirst for the properties. MPI regional controller Dr that MPI hadn’t identified the knowledge, Federaterd Farmers “This will help inform our Chris Rodwell said the situation vector of the disease. national meat and fibre chairman future management activities, was well under control, with “Tracing will be ongoing, but Miles Anderson said. which we are currently working support from the affected farm they said they may never know.” “It was a big meeting, about up in partnership with the animal owner and farm managers. There was still hope that the 150, and the MPI presentation industry bodies. “I cannot speak highly enough van Leeuwen property would was very good. “These could include area of the affected farmer and his be the only incursion, but as “There were a lot of questions movement controls, selective staff,” he said. “They’re working investigations continue farmers answered, and a lot that weren’t, culling of some stock, or closely with us during what is a were urged to be “extra vigilant”, but they [MPI] were upfront other long-term management difficult and stressful time for Anderson said. with what they couldn’t answer,” measures,” Rodwell said. them, and I applaud their level of Meantime, work continued at Anderson said. professionalism.” pace on the large van Leeuwen He said farmers’ main concerns ProCool Ice andoperation, Glycol options available. Rodwell said MPI’s focus was farming withalso all 16 had been about how to mitigate MORE: to identify affected stock and properties under Restricted Place spread. Notices controlling the movement contain the disease. “It has to be recognised this is UNDERSTANDING ESSENTIAL P8

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NEWSMAKER

NEWS

Soil Moisture Anomaly (mm) at 9am July 27, 2017

18 Pure class from ‘Queen St

farmer’

60 Wetter than

Grand Champion Steak of Origin 2017 had a sweet taste for Angus cattle breeders Tim and Kelly Brittain, of Otorohanga, in the 15th year of the keenly contested national competition.

normal (mm)

NEW THINKING

19 Bug hunt stepped up with

-10

new test

-20

The Dairy Antibiogram test is the result of a joint venture between Bayer and Morrinsville-based production animal research company, Cognosco.

4 Milk price boost a lift for

farmers

Fonterra last week delivered what it hoped would be heartening news to dairy farmers coping with a wet and cold calving, when it boosted the milk price forecast by 25c to $6.75/kg milksolids.

7 Optimism follows record

rains

Canterbury soils are saturated, crops have drowned and pastures have transformed to mud bowls, but in the aftermath of the worst-ever rain event on record, there are positives.

11 Acid goes on new manuka

honey test

A Manawatu beekeeper and honey processor is alarmed at the effect proposed manuka honey standards are having on the value of multi-floral honeys containing manuka, depressing the value of the product by a third despite shortages in the market.

Hunt on for new SFF CEO �� 3 Milk price boost a lift for farmers �� 4 Rising payout tide coincides with rain �� 5 Optimism follows record rains �� 7

-30

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Drier than normal (mm)

OPINION

22 Alternative View Alan Emerson demands a clear path through the gorge.

Editorial �� Cartoon �� Letters �� Pulpit �� Alternative View �� From the Ridge �� Meaty Matters ��

20 20 20 21 22 23 23

REGULARS Real Estate �� 24-25 Employment �� 26 Classifieds �� 26 Livestock �� 27

MARKETS

32 Japan

imposes frozen beef tariffs New Zealand beef exporters are facing 50% tariffs on frozen exports to Japan over the next eight months.

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

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Understanding of cattle disease essential �� 8

Twitter: farmersweeklynz

Appeals flow on ECan’s red-zone plan �� 10

Email: nzfarmersweekly@nzx.com

Acid goes on new manuka honey test �� 11

Free phone: 0800 85 25 80

Bequeath a class act for Young Farmers �� 12 Fonterra creams global butter prices �� 14

Market Snapshot �� 28

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Access assured for NZ sheep meat FRESH FIELDS: Silver Fern Farms chief executive Dean Hamilton is leaving the company at the end of the year.

Hunt on for new Silver Fern CEO Alan Williams alan.williams@nzx.com SILVER Fern Farms will be making a “global trawl” for a new chief executive to replace Dean Hamilton when he leaves at the end of the year. “We’re setting the bar high,” chairman Rob Hewett said. “We’ll be setting the right specifications for the job, and then we’ll be getting the best person.” After three years as chief executive, and organising the major capital restructuring, Hamilton is leaving Dunedinbased Silver Fern to spend more time with his family. “I live in Queenstown and commute to work, and there’s a lot of travelling round the place, so it works out about 150 nights a year away from home.

“It’s time to draw a line under it, and rebalance,” Hamilton said. The board was sad to see him go, Hewett said. “His decision is the start and finish of this, and ideally we wish we weren’t having to do this now.” Silver Fern hopes to have the new chief executive in place before year-end, but Hewett said if the process took a bit longer, the company knew that Hamilton would be close-by to help with the transition. Hamilton said he had achieved all he set out to do. “The biggest challenge was the capital structure – there had been losses, and we needed to raise equity. “It took a lot of effort from everyone, but now it’s never been as strong – there’s cash in the bank and no borrowings. It’s in better

shape for the next person to come in.” Silver Fern recapitalised through the $260 million capital injection by Chinese group Shanghai Maling for a half-share in the business. Hewett said Hamilton had also realigned the organisation to support group strategy, strengthened the culture, rationalised the processing plant base, and introduced financial and risk management disciplines. If Shanghai Maling put up a candidate for the role, they would have to meet all the requirements the group wanted, Hewett said. “We’re a New Zealand company, and we export to 60 markets around the world – China is important in that, but not the only market. “Really, they’re still relatively new and we’re still bedding it down.”

Nigel Stirling nigel.g.stirling@gmail.com ON HIS flying visit to this country last week, British Foreign Secretary Boris Johnson sent a strong signal that New Zealand sheep meat access to the United Kingdom wouldn’t be harmed by its departure from the European Union. As part of their divorce proceedings, the EU and UK will have to decide how to handle the 228,000 tonnes of tariff-free quota that has underpinned NZ’s most valuable sheep meat market for decades. Asked in Wellington last week whether the UK government would bend to British farming’s calls for NZ lamb imports to be cut back, Johnson said none of its trading partners would be worse-off after Brexit. “No party in the deal we are going to do is going to be any worse off. “We are going to get a great deal that works for everybody – Brexit will not be about us turning away from the world.” The NZ Government’s agricultural trade envoy Mike Petersen said Johnson’s comments were positive for this country hanging on to its current levels of access for sheep meat, and chimed with what he had been told by other British politicians. “We are not looking for windfall gains from this, but we are looking for some fairness and certainly not to be any worse-off, and that counts the flexibility we have got between the UK and the EU as well.” It was reported ahead

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of the first round of Brexit negotiations earlier this month that a number of options were on the table for so-called third-country quota access, including splitting the existing allocations between the UK and EU. Former High Commissioner to the UK Lockwood Smith said any splitting of the quota would reduce the flexibility for NZ exporters to utilise it fully, as they do now. “If it is split, there will need to be compensation for loss of flexibility [because] at the moment we can put more or less into the UK, and more or less into Europe if the UK leaves the EU,” Smith said. Petersen said he interpreted Johnson’s comments as supportive of NZ maintaining its existing flexibility in the use of the quota. “We are not being specific about how we are going to try and achieve that, but we have said that we are happy to look at creative ways to try and make that happen. “So I think both the UK and EU are looking for some way to keep those current market access arrangements intact even when the UK leaves Europe.” Petersen also welcomed Johnson’s comments reiterating that NZ would be “at or near” the front of the queue for a free-trade deal with the UK after it left the EU in 2019. NZ currently faces high EUwide tariffs exporting beef and dairy products to the UK, and hopes to improve on that in negotiations for a trade deal with the UK.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Milk price boost a lift for farmers Hugh Stringleman hugh.stringleman@nzx.com FONTERRA last week delivered what it hoped would be heartening news to dairy farmers coping with a wet and cold calving, when it boosted the milk price forecast by 25c to $6.75/kg milksolids. Chairman John Wilson said farmers had told him the past year had been one of the toughest on man and beast with floods, storms, reduced pasture growth and low milk production. “The past year saw difficult farming conditions for pretty much every farmer in the country, so this is good news for them,” Wilson said. “We are seeing confidence growing, global demand strengthening and good signs for the start of the New Zealand season, resulting in a Fonterra milk intake forecast lift to 1575 million kilograms (3% growth). “A 25c lift this early in the season, plus our first-earnings estimate of 45-55c a share, reflects our level of confidence looking forward.” Farmers could therefore cautiously budget on a total payout of about $7.15 after retentions.

PROMISING: Fonterra chairman John Wilson says strengthening global demand for dairy products is a good sign for the start of the New Zealand season.

But they must bear in mind that it was very early in the season and it would be 15 months before the forecast was confirmed and fully paid. The advance rate schedule had been increased by 15c over the peak of the season, beginning at $3.85/kg for the August payment, plus the retro payment from last season. The opening earnings forecast was also encouraging, being a repeat of last season, because rising dairy ingredient prices had put pressure on Fonterra’s margins for further processed products.

That showed the benefits of Fonterra staying on the V3 strategy and driving addedvalue production and reducing operating costs. Wilson said price volatility was a fact of life for Fonterra and its farmers, but that the fall-off to $4 after 2013-14, when total payout reached $8.50, was a result of three major market shocks, only one of which would have affected prices. “Now we have recovery to market balance, and while there will continue to be price cycles, I think what happened last time we

had high prices was extreme.” Commenting on the very high butter and anhydrous milk fat prices at the moment, Wilson said butter and cream plants were running hard to maximise export returns and satisfy the food service demand. “We have got past a couple of decades of poor science that misinformed the consumers, and now dairy fats generally are recognised as high-quality nutrition. “So it is a structural shift and it is long overdue.” European dairy farmers hadn’t been incentivised to increase production in quite the same way as NZ farmers, who were now enjoying the prospect of the highest milk prices globally. “Global supply remains constrained, and we continue to see a global dairy market that is largely in balance,” Wilson said. “The supply side is acting rationally, and there is good demand in most of our key markets for all of our products, including milk powder.” Wilson took issue with dairy commentator Keith Woodford, who wrote recently that the NZ dairy industry was in a pickle with the wrong cows, the wrong dairy systems, the wrong product mix,

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a raft of environmental issues and too much debt. Woodford said overcapacity in whole milk powder plants was a blind alley because only developing countries used it. Wilson said the reality was NZ dairy farming efficiency was based on the pasture curve, integrated from the farmgate to the market through a co-operative. “That has been the case for generations, and it is why we are the most efficient and often the best-paid dairy farmers in the world. “We take that huge volume of milk in the spring and convert that effectively into a high-quality product, by taking the water out. “That powder is exported, often to our own businesses, to turn into high-quality dairy products. “At the same we are driving for higher-value products – for consumers, food service or higherlevel ingredients. “We can only do that because we can deal efficiently with those high volumes of milk off farms. “Both have to be done, not one or the other. “Fonterra doesn’t build commodity plants – it builds highquality ingredients plants, and the products are used around the world,” Wilson said.

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Rising payout tide coincides with the rain Tim Fulton PAYOUT and water tables are rising as one for North Canterbury dairy farmers. Claire McKay’s farm at Cust was awash after the past week’s rain, but she was smiling at Fonterra’s 25c/kg milksolids increase in the farmgate milk price. McKay, a Canterbury regional councillor, owns the farm but not the 850 cows on the 220haeffective property. It had been a hard couple of years financially and mentally for farmers, so the payout lift was like a breather, she said. “I think any increase would help farmers reduce debt. We know nationally the dairy industry is pretty indebted so there’s got to [now] be some debt reduction to get some resilience into the farming system.” The 25c rise was a buffer against the strain of calving and

I think any increase would help farmers reduce debt. We know nationally the dairy industry is pretty indebted so there’s got to [now] be some debt reduction to get some resilience into the farming system. Claire McKay Dairy farmer the shock of the past week’s rain. Part of McKay’s regenerating wetland was demolished by flooding when a race overflowed. But as a member of the regional council’s Waimakariri zone

POSITIVE: Hurunui farmers Sara and Kevin O’Neill welcome Fonterra’s forecast payout rise, but will continue to “stick to their knitting”.

committee, she was pleased to report a rapid rise in local groundwater levels. A 12-metre well at nearby Fernside rose 1.4m between July 21-26, from 8.3m to 6.9m below the surface. Similarly, a 30m well rose 0.6m to 2.7m below ground. In Hurunui, farm owner Kevin O’Neill was picking his

way through mud and “dodging raindrops” as he reflected on possibly 25c/kg more in the bank, down the track. It was “all positive” and helpful for confidence in dairying, but he wasn’t about to rush out and write cheques. Immediate priorities were calving and managing the wet conditions.

The family operation ran 780 cows at Rotherham, and started a 550 cow unit at Culverden this season. Payout forecasts didn’t change the budget or day-to-day operations, O’Neill said. “The farm programme starts for the year and we pretty much run through it. It’s just stick to your knitting.”

Clouds parting as BOP farmers emerge from payout gloom Richard Rennie richard.rennie@nzx.com FOR Bay of Plenty farmers whacked by cyclones in March and April, the payout increase from Fonterra announced last week couldn’t come soon enough. The region has experienced near-biblical levels of rainfall, with little feed reserve ahead as calving commences. Edgecumbe farmer Bruce

Wood told Farmers Weekly in April he had already experienced 1200mm of rainfall for the calendar year, and that has since blown-out to 1700mm in a region that averages 1500mm a year. Between March 24 and April 3, he recorded 300mm of rain including 186mm in only three hours. The second major event between April 4-6 recorded 356mm.

“There is still a lot of pressure on farms through the region. In the last 50 years we have had three years with total rainfall over 2000mm, but those other years mostly came in single bursts,” Woods said. “This seems to have been ongoing since last spring, with a few big dumps as well.” He said the Bay of Plenty Rural Support Trust was asking for farmers to take 10-15 cows each

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from some of the worst-affected farms, but feed is tight even for those that were not flooded out. He suspected the increase in payout may yet be destined for supplementary feed to boost spring supplies, and even that supply would be challenged. “We had a lot of maize crops that were unable to be harvested, and that is going to roll into the new season too.”

Other than supplementary feed, any additional income over and above farm operational expenses was likely to be committed to much-overdue repairs and maintenance. “And many farms have races that have had a real hammering with this wet weather. Much of the pumice on them had run off, and will need to be replaced on top of existing R and M jobs.”

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Optimism follows record rains Annette Scott annette.scott@nzx.com CANTERBURY soils are saturated, crops have drowned and pastures have transformed to mud bowls, but in the aftermath of the worstever rain event on record, there are positives. “Despite the fact we are sludging on in extremely trying conditions, and more rain, the positives would outweigh the negatives,” Federated Farmers Mid Canterbury vice-chairman David Clark said. In the worst-hit parts of the South Island, the deluge dumped up to 180mm across Mid Canterbury in what has been recorded as the biggest rain event ever for the region, while in South Canterbury 67mm of rain fell in 12 hours, more than its average July rainfall of 40mm. “It has been quite bad – scouring on properties with slopes, autumn-sown cereal and grass seed crops washed out, soils messed-up – certainly there will be some redrilling.” Clark said grazing cows had got very messy, with major damage to soil structure that would take a couple of years to repair. “Support farms are in a hell of a mess, and the dairy guys are really under the pump in the lead-in to calving – there’s real stress on the dairy front. “But it is winter time and we will get through. We haven’t had a wet winter in three years, we desperately needed rain – as much it has been frustrating, it will be manageable,” Clark said. “For the guys on the heavier soils it will take a lot longer, and if we get a wet August there will be some touch-and-go for spring plantings.” Clark said if it stayed wet, it was likely that planting would push back until September and the wet conditions might also result in a decline in wheat area and an increase in barley, because of the timing of when it would be possible to get crops planted. On the positive side for cropping farmers, supplementary feed was in hot demand and there

TRYING CONDITIONS: Mid Canterbury Federated Farmers vice-chairman David Clark battles the elements to load feed off his property. Photo: supplied

There is a lot of work to do, but at this stage the damage I have seen is not insurmountable. Mark Adams Federated Farmers

was increased inquiry for feed grain sales. “Straw and balage is flying out the door, and grain has gone out of this farm every day for the past three weeks – and it’s all grain that we have sold since July 1,” Clark said. The other positive was the water recharge. “We have been waiting a long

time for a recharge like this – we certainly have got it now.” In South Canterbury the aftermath was much the same. Feds provincial president Mark Adams said there hadn’t been quite so much rain, but it had come in so fast in a short space of time and created a lot of flooding. Culverts had scoured-out, fences were leaning over, tracks had flooded and soils were sodden. “While it has been massively disruptive and frustrating, I think we have gotten off somewhat lighter here and the mop up won’t be quite so bad as some parts of Canterbury.” Adams said the priority for farmers was buying in feed to get stock off saturated pastures and winter feed, but given the abundant spring growth there was a lot of supplement made so there should be enough to go around if

people were looking for extra. “There is a lot of work to do, but at this stage the damage I have seen is not insurmountable,” Adams said. Meanwhile, insurers were yet to assess the full extent of the rain storm damage, with the insurance council suggesting it was expecting up 2000 claims. Major rural insurer FMG had so far received 160 claims, but expected that number to steadily increase over the coming weeks as farmers and other clients had time to fully assess all damage. FMG chief operations officer Conrad Wilkshire said claims had been lodged from across the country, with the vast majority coming in from the Canterbury and Otago regions. Most claims were for water damage to dwellings, while other claims included water damage to farm buildings and farm contents,

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as well as sodden silage and hay. “A few claims are coming in for balage in Otago, which has floated away down the Taieri River,” Wilkshire said. There had also been claims for farm fencing, and a few relating to beehives. Wilkshire said as soon as the storm had passed, FMG began calling clients in and around the most-affected regions checking they were okay, offering support and providing advice on lodging a claim. “It’s still early days yet but we feel we’re making good progress. We’re mindful that some clients are yet to make a claim, and we encourage them to do so as quickly as possible.” Wilkshire advised people to take as many photos of damage as possible before doing emergency repairs or disgarding perished foods.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Understanding of cattle disease essential Annette Scott annette.scott@nzx.com

EARLY DETECTION: Massey University’s Dr Fernanda Castillo Alcala says rapid diagnosis of M. bovisinfections is fundamental for the prevention and effective control of the disease.

IGNORANCE at first was the biggest risk to effective control, an Australian bovine expert said of a response to the detection of cattle disease Mycoplasma bovis in a South Canterbury dairy herd. The disease commonly found in cattle globally, including Australia and now detected in New Zealand, doesn’t infect humans and presents no food safety risk, but it does have serious effects on cattle including mastitis, abortion, pneumonia and arthritis. The Ministry for Primary Industries was hopeful the disease could be contained to the one infected property, but far and wide understanding

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of Mycoplasma bovis (M.bovis) was critical to successful management, Sydney University director of bovine clinical service, Associate Professor John House said. House said once in a herd the disease was highly contagious, but when people knew what to do, it could be managed. There was no effective way to get rid of it from a herd. “Once it’s in a herd, potentially it’s there forever, and what is different about it is you could have it and not know,” he said. “The most serious scenarios are in first herds until you know how to manage it. Ignorance in the beginning is a real risk. “Understanding in the beginning is the big problem, and the more communication that can be had, the better the understanding will be, and the better the understanding the better the management – and the better the initial management, the greater success will be for longterm management. “Spread the word, get everyone understanding. I don’t think everyone should be petrified, but it can be traumatic until you know what is going on. “A herd that has it, through knowledge, will develop an attention-to-detail process, and be at the ready to pull together a bunch of management tools that will enable very effective management,” House said. He was unable to say for sure how the disease would have entered this country, but given NZ didn’t import live cattle the most likely scenario was through embryo and semen imports. Mycoplasma bovis did survive freezing, House said. “I doubt it would have been via infected equipment, so the most logical transmission would seem to be through semen and embryos.” Senior lecturer in anatomical pathology at Massey University, Dr Fernanda Castillo Alcala, said M.bovis was the cause of several disease syndromes that included mastitis, otitis media, keratoconjunctivitis, and most importantly pneumonia and arthritis in calves and young cattle. She said the disease was one of the most important and prevalent agents isolated from cases of enzootic pneumonia in calves, and in cases of undifferentiated bovine respiratory disease in feedlot cattle. Mastitis primarily affected adult dairy cows, and M. bovis had also been reported as the cause of mastitis and arthritis in young dairy replacement calves, and first lactation cows. Arthritis associated with M. bovis infection caused lameness, swelling of the joints, distension and abscessation of the tendon sheaths, and if severe, reduced feed consumption and marked debilitation. Alcala said transmission of M. bovis could be established by direct contact between hosts, or through secondary means such as aerosols, fomites, food, water and other vectors. Secondary transmission could also occur through healthy or convalescent carriers recovering from acute infections. Sub-clinically infected animals played an important role in the epidemiology of the disease, and were considered the main obstacle in the control and eradication of mycoplasmoses. Alcala said control strategies should focus on early disease recognition and diagnosis. “Rapid diagnosis of M. bovis infections is fundamental for the prevention and effective control of the disease. “Establishing objective disease-identifying protocols that can accurately detect animals suffering from clinical and sub-clinical disease is essential,” she said. Deciding what monitoring and control strategies to use would depend on the extent of the problem. “So far the disease has been reported in one farm in the South Island, and a full epidemiological study may help provide more information as to what strategies should be implemented,” Alcala said.

An ongoing success story SHAREHOLDER REBATE $45/TONNE* If you’re a Ballance shareholder, your rebate’s on its way to you. The $45/tonne* we’re paying this year comes from the success of your Co-operative and our commitment to helping you farm more productively, profitably and sustainably. With our eyes on the future, we are focused on delivering innovation and expertise to help you grow your business. Thanks for your support in 2017.

* The average rebate is $45 per tonne. Individual rebate will vary based on the mix of fertiliser product purchased.

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Together, Creating the Best Soil and Feed on Earth 27/07/17 10:42 AM

News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Appeals flow on ECan’s red-zone plan

Federated Farmers’ assessment

Tim Fulton A PLAN change for water and nutrient use in Canterbury’s red-zone catchments has drawn eight appeals, from irrigation companies to big farming corporates. Environment Canterbury (ECan) last month adopted the recommendations of the independent hearing commissioners on Plan Change 5. Federated Farmers is one of eight entities appealing to the High Court on points of law over the changes to the Land and Water Regional Plan.

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• No drainage allowed from irrigation events • Allowance for lighter soils has been removed • Irrigation application efficiency requirement should be 80% consistent with the way water is allocated • GMP should reflect a travelling irrigator scenario – this has been ignored Fertiliser modelling rules: • Technical flaws will mean that GMP N losses from farms will be generally under-estimated by the Farm Portal • This means that GMP loss rates may be less than what is realistic and may not be able to be met

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The other objectors are Barrhill Chertsey Irrigation, South Island corporate farmer Dairy Holdings, DairyNZ, Irrigation New Zealand, irrigation network operator Rangitata Diversion Race Management, and Ravensdown. In public documents, ECan says it’s using the Overseer nutrient management modelling tool to create a new Farm Portal, which includes input limits based on “baseline discharge”. By 2020 these limits become the basis of socalled good management practice (GMP). Federated Farmers understands nothing short of 100% irrigation efficiency will be good enough under changes to the Land and Water Regional Plan. Feds’ senior policy analyst Lionel Hume said the lobby group agreed with a lot of the plan change but ECan had “got their recipe a bit wrong in places”. The GMP was meant to relate to what can reasonably be expected in terms of limiting nutrient discharge from farms with various combinations of land use, soil type, climate and topography. For irrigation, even the existing allowance of 80% water efficiency was a high bar, Hume said. It would only take a piece of sub-standard equipment, inaccurate soil mapping or other small management slips for a farm to fail the new standard, he said.

There’s a million-and-one reasons why you won’t be 100% efficient. Lionel Hume Federated Farmers “There’s a million-and-one reasons why you won’t be 100% efficient.” The federation’s objections include the new nutrient threshold. “One of the reasons [for the appeal] is that it doesn’t square with good agronomic practice. It will be very difficult to achieve,” Hume said. Feds argued the Farm Portal supporting the new planning rules doesn’t work well for some farm systems, notably arable. At planning hearings, the federation argued for an alternative consenting path in cases where the Farm Portal didn’t work. There was also a need for flexibility for those at the low-end of the nitrogen discharge range to allow for changes such as market conditions and climate. Mid Canterbury Federated Farmers president Mike Salvesen said the federation was appealing “for positive reasons and for sustainable, practical and affordable solutions”. The plan failed to recognise the extent to which farmers were already monitoring water quality, he said. “We just want to make the system the best it can possibly be so we can achieve the results everyone is striving for.” ECan regional planning manager Andrew Parrish said it would be inappropriate for ECan to comment on Federated Farmers’ appeal or other appeals. “We will consider each appeal on its merits, and will seek to better understand how the plan change aligns with good management practice,” he said.

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

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Acid goes on new manuka honey test Richard Rennie richard.rennie@nzx.com NOT SO SWEET: DownUnder Honey’s Jason Prior says he is concerned that a chemical marker used in MPI’s new test will make NZ manuka honey vulnerable to overseas tampering.

have been struggling to sell it, and I know of honey packers who have shut-up shop because anything classed as multi-floral manuka they cannot shift, and there are warehouses full of the stuff.” But UMF Honey Association spokesman John Rawcliffe urged caution on where pricing would eventually sit for the honey. He said speculation on pricing was unhelpful until the standards were finalised. UMF Honey’s concerns lay more with the breadth of the “multifloral” manuka definition that also captured native kanuka, Rawcliffe said. MPI’s newly-minted manuka tests include four chemical markers and a DNA pollen test to

identify manuka composition. Prior said one of those chemical markers had a level, that if not detected over a certain content, meant the honey was classed as multi-floral, not mono-floral. But he was concerned that particular chemical marker made the test vulnerable, because the chemical could be added in a synthetic form to boost the level and get it over the line and into the “manuka” definition. Prior said he was sympathetic to what MPI was trying to achieve with the standard. However, he was concerned that in trying to validate the “manuka” definition, MPI risked making the definition more vulnerable to fraud and manipulation.

NZ manuka [honey] have been allowed when clearly many of the market issues are a result of manuka being adulterated overseas. “It is unclear if the standards will close the regulatory holes in NZ and overseas that allow manuka to be adulterated.” The costs of testing under the new standards was also posing an issue for processors. Prior said processors could be facing costs as high as $400 for each drum of honey, and possibly a re-testing fee prior to export. Bryan Wilson, MPI’s director for regulation and assurance, told honey processors at the recent Apiculture NZ conference in Rotorua that the ministry acknowledged the issues about the chemical markers used in the test. They were one of three areas of concern that had prompted MPI to extend the consultation period on submissions. The other two areas were the DNA test for manuka identification, and concerns on the blending of manuka honey with other types to meet the manuka proof test. In an unusual move, the consultation period to consider the 120 submissions received from the industry has been extended by an additional eight weeks.

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A MANAWATU beekeeper and honey processor is alarmed at the effect proposed manuka honey standards are having on the value of multi-floral honeys containing manuka, depressing the value of the product by a third despite shortages in the market. “The Ministry for Primary Industries’ new manuka standard makes a distinction between multi-floral manuka [honey] and mono-floral manuka [honey],” Jason Prior, the owner of DownUnder Honey near Cheltenham, Manawatu, said. “Traditionally, honey of less than 3, or even 5 non-peroxide activity was not seen as manuka, but has become more common to be sold as table manuka honey. “The new test is going to stop some of this being sold as manuka,” he said. Prior’s company owns 3000 hives throughout the lower North Island, and extracts honey from an additional 5000 hives. He said there was an irony in how prices had fallen away for the “multi-floral” manuka honey, given it had been the worst year in a decade for manuka harvest, with poor yields. “The perverse thing is people

“This comes as the industry is expecting them [MPI] to deal with the problems once and for all.” While he believes the standards are an attempt to control manuka levels within New Zealand boundaries, Prior and his colleagues are concerned they fail to address issues about adulterated bulk manuka honey exported from this country. “The continued practice of allowing the bulk export of manuka honey allows this honey to be adulterated once it leaves NZ’s jurisdiction,” Prior said. “We don’t believe the standards will stop practices such as the addition of synthetic chemical offshore, and traceability is not sufficiently robust to prevent this. “Put simply, it is easier to add something to a bulk barrel of honey than it is to a retail-type container.” Rawcliffe acknowledged what MPI had proposed did offer the potential for opportunistic blending, but he hoped a review of submissions on the standards would see this addressed. Prior claimed there were large quantities of low-grade manuka exported from NZ in the past year and now in foreign market supply pipelines. “We can’t understand why in the last five years bulk exports of

“The longest conversation I’ve had with a client? 15 years.” Shaun Crofskey, Westpac Senior Agribusiness Manager, Te Awamutu

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Bequeath a class act for Young Farmers Annette Scott annette.scott@nzx.com NEW Zealand Young Farmers has landed a windfall that will enable the organisation to better showcase agriculture as a career option to students. With no affiliation to farming, but not wanting his land to be carved up for residential development, the late Donald Pearson donated his dairy farm to NZ Young Farmers (NZYF). The 74-hectare Auckland farm located between Manurewa and Whitford would display a wide range of industries including horticulture, dairy, and sheep and beef operations, NZYF chief executive Terry Copeland said. “This is not a money-making exercise for NZYF, but rather an amazing opportunity to further our emphasis on engaging with students in Auckland schools to showcase the vast array of careers available in the agri sector,” he said. While details were yet to be finalised, it was envisaged the

farm would become a doorway to innovative technology and a masterclass in the future of farming. “There are enormous possibilities, and we are excited about the partnerships this will bring across the industry to communicate the opportunities the sector can offer NZ’s youth.” To have the facility in the heart of Auckland presented a substantial asset the industry needed, Copeland said. “It will play a significant role in the Ministry for Primary Industries’ target of attracting an extra 50,000 employees to the sector by 2025.” Currently, 39% of all high school students in NZ resided in Auckland, and just 29% of all students resided in rural areas. “So we have a real problem, and this farm will give us a solution,” Copeland said. NZYF, through its Primary Growth Partnership with DairyNZ and Red Meat Profit Partnership funding, was constantly working with urban schools to sell a positive message around agri

careers and the farm would add stronger foundations to that message. The gift had been extraordinary because Pearson had no children of his own, nor did he have a formal relationship with NZYF. “But he knew he didn’t want his land carved up and sold off to residential housing,” Copeland said. “His passion for agriculture and belief in the organisation to use it to bring people into the sector has left a legacy that all of the agri sector will celebrate for decades to come.” Pearson’s friends and family were keen to help set-up the farm because they wanted to realise his dream. “Donald (Pearson) initially didn’t know what he wanted to do with the farm if he died, but he knew what he didn’t want to happen, which was to have it endup all subdivided,” a friend said. Describing it a most generous donation, NZYF chairman Jason Te Brake was excited about the opportunities the farm would offer to the organisation.

LEGACY: The late Donald Pearson’s wish was that his Auckland dairy farm be used to attract young people into primary industries careers, NZ Young Farmers chief executive Terry Copeland says.

He said it would play a significant role in allowing NZYF to continue to connect and develop the future people of the primary industries. “The farm is intended to showcase the primary industries to NZ youth, and this aligns

perfectly with our strategic direction and compliments the rewarding results we are already achieving through our schoolbased programmes,” Te Brake said. The farm will begin trading under NZYF from September.

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News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Fonterra creams global butter prices Hugh Stringleman hugh.stringleman@nzx.com FONTERRA is creaming world markets for butter and anhydrous milk fat, with prices at record levels, more than twice where they were 12 months ago. The co-op is the world’s largest exporter of butter and anhydrous milk fat (AMF), accounting for about half of world trade, and its Clandeboye, South Canterbury, plant has the largest export butter output. Butter and AMF are core reference products for the Fonterra milk price forecast, currently at $6.75/kg milksolids at the farmgate. New Zealand exported 287,000 tonnes of butter last year, worth $1.3 billion, of which about 90% came from Fonterra factories. Because of the much higher world prices, butter exports should be worth more than $2b this year, assuming Fonterra was maximising production from its sites where butter was made. NZ exported 213,000t of AMF last year, valued at $1.09b. Combined, the high milkfat exports of butter and AMF worth $2.4b were about 20% of Fonterra’s ingredients revenue in 2015-16. Fonterra’s global operations chief Robert Spurway said his

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FAT OF THE LAND: NZ exported 287,000 tonnes of butter last year, worth $1.3 billion, of which about 90% came from Fonterra factories.

mix of butter and AMF plants nationally was capable of meeting the rising demand and maximising the record prices for the milk price, and for farmers. Every two weeks, current prices were fed into the product optionality programme, along with estimates from Fonterra’s inmarket representatives of supply and demand. It had also invested appropriately over recent years to build capability right across the range of options, but butter capacity was already adequate. Recent examples were

agrievents

Hugh Stringleman hugh.stringleman@nzx.com

Thursday 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/

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Should your important event be listed here? Phone 0800 85 25 80 or email adcopy@nzx.com

urbanisation and expanding middle class had increased out-ofhome spending. “Asian consumers are prepared to pay more for premium bakery foods containing real dairy,” Watson said. Almost all of the butter consumption growth since 2005 had occurred initially in Asian countries, but was now followed by growth in developed countries. “Given the scale of butter consumption in developed countries, even small changes can have a large impact on demand. “For example, McDonald’s switched to butter on the Egg McMuffin, increasing US annual butter consumption by about 9000 tonnes.” Lower milk production and unfavourable economics had reduced European butter production by 5% in the first four months of this year, and United States production had fallen slightly. Therefore, GDT prices had risen 120% since May 2016, and were now 22% higher than the previous peak in June 2014. Spurway said butter left NZ in a variety of forms and pack sizes, from 9g mini-dish catering, through to 375g-500g consumer packs, 1kg-5kg food service forms, and up to 25kg ingredient blocks. Butter sheets were also made for pastry manufacturers. Fonterra had seven export butter plants, north to south, at Kauri, Te Rapa, Edgecombe, Te Awamutu, Morrinsville, Whareroa and Clandeboye.

New plants to meet Asian cream cheese demand

AWDT’s Escalator 2018 Applications for AWDT’s Escalator 2018, growing primary industry leaders, are now open. Applications close September 30, 2017 To apply: Admission to Escalator is by written application. Places are limited to 14 each year. For an application pack and more information please contact: www.awdt.org.nz/programmes/escalator/ Phone: 06 377 4560, Hannah@awdt.org.nz

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

the milk protein concentrate and AMF plants at Edendale, and the plants for related cream products like mini-dish butter and cream cheese at Te Rapa, and now Darfield, and UHT cream at Waitoa. “As a result we are able to respond well to the favourable conditions for milkfat products right across the market,” Spurway said. However, he wouldn’t specify the butter and AMF production increase in the new season, saying that was commercially sensitive. “We obviously have commitments to our own branded products and food service needs, and longer-term supply

agreements we need to fulfil.” Fonterra could also increase the tonnages of butter and AMF on its GlobalDairyTrade platform if needed. Spurway ruled out any butter shortages at retail level, or in commercial kitchens in NZ and Australia. That was in response to Arla Foods chief executive Peder Tuborgh, who said that some United Kingdom stores were already rationing butter and cream supplies, and shortages would get worse during the second half of the year. UK National Farmers’ Union dairy chairman Michael Oakes said dairy farmer confidence was seriously damaged by price volatility, and the industry needed a culture change for new mechanisms to help farmers plan production. The International Dairy Federation estimated that annual butter consumption had risen 1.7 million tonnes since 2005, and that a further 2.1m tonnes would be required annually by 2025. In developed markets, butter had developed a healthy halo attractive to younger consumers, and it had been rehabilitated as permissible for older demographics. “Margarine sales in developed markets have plummeted as consumers switch back to butter as spreads and in cooking,” Fonterra’s global food service director Grant Watson said. In Asian countries the growing

FOOD service markets in Asia are delivering unprecedented demand for cream cheese, made into cheese cakes, pastries and a new beverage craze in China, tea macchiato. Fonterra has announced two new cream cheese plants to be built at the Darfield site in Canterbury that will expand the company’s production of that product family by 160% over the next three years. The two existing cream cheese plants at Te Rapa, Waikato, together produce 30,000 tonnes a year – each of the two new Darfield plants, CC3 and CC4, will produce 24,000t annually. The first new plant will cost $100 million and be ready for production by August 2018. The fit-out of the second plant, to cost $50m and to be built under the same roof, could finish by spring 2019 or 2020, depending on the demand growth. The new plants would contain new technology to enable Fonterra to vary the firmness, flavour and colour of cream cheese, especially to suit new trends in food service in China. Cream cheese was made

TWO FOR TEA: Fonterra has announced the construction of two new cream cheese plants at the co-op’s Darfield site near Christchurch.

by culturing fresh cream, but Spurway wouldn’t further describe the manufacturing machinery or the new technology. Fonterra’s global director of food service, Grant Watson, said the growing urban population in China had fewer preconceived notions about how dairy products should be consumed. That led to the most innovative food service developments between Anchor Food Professionals and their customers.

Tea macchiato drinks have different teas topped with blends of UHT cream and cream cheese. Retail outlets serving different flavours and presentation styles in Chinese cities had been swamped by demand, to the extent of queues forming outside on pavements during office breaks. Spurway said cream cheese manufacture at Te Rapa was expanded three years ago, and the ongoing demand from Asian markets had created the

need for a boost in capability, announced now. Fonterra’s annual output would quadruple in about six years when the Darfield site was fully developed. Global growth of food service and out-of-home eating was growing at 5-6% a year, and Fonterra’s food service sales were growing at more like 18-20%. These were cheese and cream products such as mozzarella, sliced cheese, cream cheese and UHT cream.

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News

16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Confidence back in rural real estate Alan Williams alan.williams@nzx.com RECENT farm sales are down from earlier highs but still ahead of the past couple of years. While the sector gets through its seasonal quiet period as farmers focus on lambing and calving, several pointers show a confident view of the season ahead, the Real Estate Institute of New Zealand’s rural spokesman Brian Peacocke said. In the year to the end of June, finishing farm sales were 37% higher than a year earlier, and dairy farm sales up 27%. The All Farm Index fell 2.5% in the three months to the end of June, compared to the three months to the end of May, but the year ending June was up by 4.9%. This index adjusts sales figures for difference in farm size, location and farming type, and is considered a more thorough measure than the median price index, which fell by 4.5% between May and June. With finishing properties dominating the sales mix, Otago had the biggest increase in sales, up 13 on the same three-month period last year, with Gisborne up by nine sales, and Southland by seven.

RIPE FOR PICKING: Gold kiwifruit orchards in Bay of Plenty are hot property at the moment, REINZ rural spokesman Brian Peacocke says.

Dairy farm sales volumes were lower in the June period than in May (59 compared to 89) but were ahead of the past two years. As well, the REINZ Dairy Farm Index rose by 17.7% on last year, but was marginally down in June compared to May. The median index is up 6.7% over the year. As well as sales being 27% ahead of last year, dairy farm sales made up 13% of total sales. Peacocke said a highlight of the market was a late surge

in Canterbury sales. Canterbury also had very strong activity in finishing farm sales, as did Southland, while activity in north Waikato, eastern Bay of Plenty, Rotorua, and through all lower North Island provinces was steady. A shortage of listings was also evident, partly because of the conversion of northern finishing farms to dairying in recent years, Peacocke said. There was a reduction in sales

volumes of arable properties in Canterbury, though some of the finishing properties sold would have been mixed sheep and cropping units. The June period had a big fall-off in grazing property sales – marked by much lower median prices – in most regions except Northland, Manawatu-Wanganui, and Wairarapa-Wellington. The median price per hectare fell by 39% over the 12-month period. In horticulture, the median

price fell by 28.7% over the year, but Gold kiwifruit orchards in Bay of Plenty were hot property, with two reported sales of producing blocks in the $1 million percanopy hectare range, Peacocke said. The median price for all farms sold in the June period was $25,993/ha, compared to $26,361/ ha a year earlier. For dairy farms, the median was $34,789, the same as in May, and up from $32,614/ ha in June last year. Finishing farm median prices were virtually steady from May to June at $26,163/ha, up from $25,942/ha more than a year earlier. The downward move for grazing properties meant a median price of $10,093/ha in the three months to June, from $14,160/ha in May, and $16,604 in June last year. The general reduction in sales at this time of year was in-line with the autumn-winter trend of recent years, Peacocke said. However, sector morale was buoyant, with a positive price outlook for most farm products. An indication of this confidence was the record attendance at National Fieldays in Waikato with strong activity in vehicles and farm machinery.

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18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Newsmaker

Pure class from ‘Queen St farmer’ Tim and Kelly Brittain have been a driving force behind the emergence of AngusPure as a leading brand. Now, their steak has been judged the best in New Zealand. Hugh Stringleman reports.

RAND Champion Steak of Origin 2017 had a sweet taste for Angus cattle breeders Tim and Kelly Brittain, of Otorohanga, in the 15th year of the keenly contested national competition. Their championship honour was validation of their breeding programme that focuses on more marbling for Storth Oaks Angus, the Brittain’s family stud business. It was a commercial success on two levels – for Storth Oaks’ annual bull sales and for the beef brand AngusPure, of which Tim Brittain has been chairman since 2005. “I was a director on the old Meat Board and helped to set up Steak of Origin at the Beef Expo back in 2003 with John McCarthy,” Brittain said. “We have entered many times over the past 15 years and been finalists several times, but have never won an Angus or grand championship, so it was very gratifying to win this year.” Brittain, who used to describe himself as a Queen St farmer, was also at the birth of AngusPure in the late 1990s, when entrepreneur Guy Sargent and the New Zealand Angus Association sought to replicate the success of certified Angus beef programmes overseas. Now the largest of several Angus

brands in NZ, AngusPure covers and audits between 20,000-25,000 carcases annually, sold mostly through Foodstuffs supermarkets and in hotels and restaurants. It has been represented in the winners’ circle at almost every Steak of Origin, and was judged the Brand of the Decade in 2012, the same year Northland AngusPure suppliers Chris and Karren Biddles were also judged Breeder of the Decade. A businessman in Auckland, Brittain took up farming in the early 1990s and was quickly “captured” by the business of Angus cattle breeding, performance recording and genetic programmes. His profile on the AngusPure website said the technological approach of farming suited his business background and interest in computing. Tribute was also due to his wife Kelly for her farm management during the many times when Brittain was away on business. This year they entered a customary batch of younger Angus heifers not required for breeding. They were killed at Auckland Meat Processors, operated by Wilson Hellaby, where AngusPure cattle are processed for Foodstuffs North Island. Sirloins were then sent to Carne

SMOKIN’: Steak of Origin 2017 grand champion Tim Brittain barbeques up an Angus beef storm during the Meatstock food and music festival held earlier this year in Auckland. Photo: anguspure.co.nz

We have entered many times over the past 15 years and been finalists several times, so it was very gratifying to win this year. Tim Brittain Storth Oaks Angus Technologies in Hamilton for tenderness testing. More than 300 entries were tested, and the top 20% in each of eight categories went to taste testing as finalists. Each was tasted by a panel of top chefs. The steaks were cooked in non-flavoured oil, with no seasoning, for three minutes on each side, and rested for five minutes. This year an AngusPure entry from Neat Meat wholesaler in

Auckland also won the food service best of brand award. Steaks from a rival Angus brand, Countdown Angus, took gold and bronze in best of brand, retail, and then won the 2017 brand championship. Brittain described the proliferation of Angus brands among processors, wholesalers and retailers as a benefit to the breed as a whole, the largest beef cattle breed in the country. Storth Oaks now mates 320 Angus cows and first-time heifers each year somewhat differently from normal, with two cycles of artificial insemination and a follow-up cycle of bull mating over the heifers. “We’re aiming to cast the net wider, to shorten the generation interval and make quicker genetic progress.” The biggest move for AngusPure in recent times had been the launch of the Special Reserve export brand, now being supplied to Broadleaf Game in California.

Broadleaf was owned by Mark and Annie Mitchell, New Zealanders who had imported NZ lamb and venison into the United States since 1988. To qualify, beef needed a marbling score of 2 or 3 in addition to the AngusPure qualifiers. Brittain said the premium paid to farmers for the Special Reserve hadn’t yet been determined from the market, and the AngusPure premium had settled down at 1015c/kg carcaseweight. His winning heifer for Steak of Origin had a good AngusPure breeding index, and an estimated breeding value of 2.7 for marbling, so probably would’ve qualified for Special Reserve as well. Having reached the top in the national beef competition after 15 years of trying, would the Brittains now rest on their laurels? No, they wanted to continue to enter, for the thrill of competition and for the validation of breeding efforts.

Cows euthanased after ergot outbreak Neal Wallace neal.wallace@nzx.com A NATURALLY-occurring toxic fungal disease has been found in dairy cows on three Otago and Southland farms, with more than 100 having to be euthanased. Given ideal conditions, the ergot fungus infects grain and grass, producing alkaloids that grow on seed heads, with its toxic compounds causing blood vessels to constrict and cut-off blood supply to parts of the body. Cold winter temperatures can lead to a frost bite-type effect that in extreme cases in animals can cause the loss of limbs, or affected parts of the body. The Ministry for Primary Industries said the disease can cause lameness, inability to stand, loss of condition, and in severe cases cold and necrotic lower limbs.

Rob Mills, a vet at Clutha Vets, said the South Otago outbreak affected more than 40 cows, with a number having to be euthanased. Media reports state that in one Southland herd, 120 animals were affected and in another, 56. Mills said the outbreak was the result of ideal weather and grass conditions immediately before harvesting, and when silage or balage was fed out. The South Otago farmer acted quickly when he noted his cows were unwell, and Mills said those that couldn’t be cured were humanly euthanased. Mills said ergot was relative easy to identify, resembling mouse droppings on the head of grass seed, but he added it may only occur in part of a paddock. While large-scale outbreaks were rare, Mills said they could affect individual animals without farmers realising.

OUTBREAK: Ergot fungus resembles mouse droppings on grain and grass seed heads.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Bug hunt stepped up Antibiotic resistance of bacteria in the human population has been touted as one of the biggest risks to health in coming years, with the planet facing what the World Health Organisation describes as a “race against time” to develop new antibiotics. However, resistance in New Zealand’s farm production animal population remains low, and a new initiative will help paint a clear picture on where resistance risks really lie, and how to manage them. Richard Rennie reports.

HE Dairy Antibiogram test is the result of a joint venture between Bayer and Morrinsvillebased production animal research company, Cognosco. Cognosco director Dr Scott McDougall said that vets and farmers will be able to collate the results of the test to paint a picture of where resistance lies in dairy herds nationally, ensuring a more targeted use of appropriate antibiotics against bacteria. The test has been developed from a Dutch concept, but modified to the New Zealand situation. It targets the two most important mastitis bacteria, S. aureus and Strep. Uberis, through a bulk-milk sampling technique that cultures bacterial growth, and then assesses the amount of a number of different antibiotics required to kill those bugs.

The test will give us clarity, and go a long way to ensuring effective treatment of mastitis in our dairy herds. Dr Ray Castle Bayer The Antibiogram partners have developed a novel screening process where the S. aureus and Strep. uberis can be recovered from among the other bacteria present in bulk tank milk. Bayer dairy veterinarian Dr Ray Castle said clinical mastitis occurred in 10-20% of NZ’s dairy cows every year. Each case of clinical mastitis cost the farmer about $250 per cow, with additional losses attributable to chronic and sub-clinical infections. The test involves a consultation between vet and farmer, with bulk-milk sample results providing a report on the level of resistance, if any, detected in a particular herd.

NEW INITIATIVE: Cognosco director and dairy veterinarian Dr Scott McDougall, left, and Bayer dairy veterinarian Dr Ray Castle are introducing the Dairy Antibiogram test into New Zealand.

McDougall said the test was a herd-screening test, and wouldn’t identify an individual cow’s resistance to a particular antibiotic, but it would give a broad-brush indicator of that herd’s bacteria-resistance status. “Then, if it proves there is resistance in the herd, the next step down is to identify individual cows, and their individual quarters if necessary, within the herd.” He said his support for Antibiogram came from the “herd” overview it gave, which was sufficiently accurate as a first indicator and well-suited to NZ’s larger herd sizes. “Historically, we have struggled to get samples from individual cows for culture and resistance testing due to logistics, particularly in spring when farmers are really busy. “So this system is really easy for farmers, as they don’t need to identify and culture individual cows.” The Antibiogram test is also providing a means of starting the conversation about antibiotic resistance between vets and their farmer clients. “Colleagues are saying it is relatively easy to demonstrate the value to herd owners,” McDougall said. With greater public awareness of antibiotic resistance, NZ’s farm sector wasn’t immune from pressure to dial back antibiotic use, even if evidence so far didn’t support any significant shifts in antibiotic resistance among the national herd. The test promises to provide another means of helping the industry demonstrate to consumers and regulators that the sector is using antibiotics in a prudent way, and that resistance isn’t increasing. Earlier research by McDougall and his colleagues on farmer antibiotic use had helped vets

develop an antibiotic plan they can take to farmers to develop a more effective treatment regime. “We found that farmers who engaged with their vet on a plan actually held or even reduced the amount of antibiotics they used,” McDougall said. “We have since had a roadshow to 220 dairy vets nationally around the whole resistance story and encouraged them to discuss with farmers how we need to do, and be seen to be doing, the right thing.” With vets supporting the Antibiogram test, a significant amount of data will also be generated.

Bayer’s Ray Castle said ideally he would like to see all dairy farms nationally have their milk undergo the Dairy Antibiogram test. “The test will give us this clarity, and go a long way to ensuring effective treatment of mastitis in our dairy herds,” he said. McDougall said, from a researcher’s perspective, the test promised to offer a treasure trove of data to better understand how bacteria populations and resistance patterns changed through lactation. “We have vets planning to test this spring, and then again around drying-off time. Over time,

and with sufficient samples, this will help identify any seasonal changes in bug populations, or in resistance profiles. “The data will also eventually enable us to benchmark nationally for herds’ resistance status, and when we identify any herds that are outliers, this can be the start of a constructive conversation between vet and farmer on how to manage that. “The next step may be to identify individual cows infected with resistant bacteria and treat appropriately, or in some cases culling may be the best option,” McDougall said.

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Opinion

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

EDITORIAL

Keep farmers in the loop

EWS last week that the cattle disease mycoplasma bovis had been found in South Canterbury couldn’t have come at a worse time in the farming

Bryan Gibson

LETTERS

Blinkers off on Ruataniwha’s worth RE Steve Wyn-Harris’ column, FW, July 17 – regrettably, he appears to ignore the facts with regard to the Ruataniwha dam. Whether this is intentional or ignorance is hard to say, but I sincerely hope it’s the latter. If not, Steve runs the risk of losing credibility. The fact is, it’s not only the 22ha of DOC land at issue here – it’s the other 185ha of native bush and habitat within the dam footprint that would also be destroyed. Steve can verify this by reading the Kessels Environmental Assessment report, commissioned bythe Hawke’s Bay Regional Council, on the council’s own website. Another fact Steve ignores is that the Smedley Station land is also owned by the Crown – if it has high conservation values, why don’t they transfer it to DOC? Instead, we have convoluted legal gymnastics from the previous regional

council, the Hawke’s Bay Regional Investment Co, DOC and the Government to make it look like a credible deal, which it patently isn’t. There’s much hard evidence the 22ha has high conservation values, as stated in a previous DOC report, also conveniently forgotten about or ignored. It’s also not hard to believe the previous Conservation Minister, Nick Smith, leaned on DOC to ensure that the most recent assessment by the four DOC ecologists came up with a result that supported the pro-dam view, similar to the original DOC submission to the board of inquiry that “fell off the truck” and was replaced by a weak, inconsequential substitute. It’s also difficult to ignore the many highly-qualified conservationists and academics who vigorously refute the low conservation

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Exotic phobia?

Emerson where he called trout an invasive species while failing to finger the most invasive species, namely Emerson and his fellow human beings. I had first hand problems with exotic phobia when my first application for a QE2 open space covenant on my 114ha of wetland was rejected because it had too many exotic trees and wildlife. QE2 had no real interest in superb habitat but preferred to remain fixated on exotic phobia. We need to grow up and join the 21st century where things are not always native to the district, like our economy built around sheep, cattle, hogs, and many more – all adding value. Sadly the invasive humans cleaned out the moa and others.

I HAVE been following with interest an item by Alan

Bud Jones QSM Eketahuna

Dan Elderkamp Waipukurau

MORE: WYN-HARRIS RESPONDS P23

Letterof theWeek

EDITOR Bryan Gibson bryan.gibson@nzx.com

value argument. Steve’s view that Central Hawke’s Bay is “now consigned to become an economic backwater” only illustrates that the pro-dam lobby has all its eggs in one basket, and is unable to see outside its confined irrigation box. I, for one, can’t accept alternatives for irrigation and economic growth in the district and region don’t exist. There are plenty, and perhaps if Steve and his colleagues took their blinkers off they might see some.

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calendar. With calving about to get under way, winter grazers coming home and milk production kicking-off, the movement of stock is considerable. The Ministry for Primary Industries has assured us all steps are being taken to contain the affected farm. Unsurprisingly, farmers in the region are concerned, both about the outbreak itself and the lack of information they’ve received on how to keep their own farms diseasefree. As of last Thursday, many South Canterbury farmers were still waiting for answers from authorities about how to protect their own stock. They were filling the vacuum by taking their own precautions – limiting stock movements and screening visitors to their properties. As one farmer said: “We may be overcautious, but we would rather be that way than not be cautious enough – that would be devastating.” A scientist spoken to by Farmers Weekly said ignorance was the biggest risk when coping with an outbreak like this. MPI appears to be doing all the right things in terms of tackling the outbreak at the source. But in an industry where tankers, contractors, workers and stock tend to move frequently between properties at this time of year, shouldn’t farmers be given a bit more guidance on the situation, and how they should behave? At the very least, it would avoid some of the chaos we’ve uncovered, with farmers refusing to take cattle back to where they should be, and transport companies also balking at the prospect of moving them. Farmers potentially have their livelihoods at stake here and the consequences for a misstep could be huge. They want to be proactive, to do their bit to help themselves and their industry, but they need good and timely information to do so. They deserve to be kept in the loop.

Opinion

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Wading into the waterquality debate Laura Henderson

EW Zealand’s water quality is one of the big election issues this year, with every political party wading in to have a say while farmers basically get the blame. As usual, general ignorance leads to much emotion but little in the way of facts. In my final year of high school I studied the water quality on my parents’ farm. Water was tested from where it came out of the ground (a spring), and then several kilometres further on where it left the property. The spring water was as clean as could be, and where it left the farm it was well and truly safe enough to swim in. Water quality was worse immediately after rain when sediment had washed in, but once the rain stopped our relatively fast-moving, shingleand-stone-bottom creek naturally purified itself within hours. However, we now find people living in urban communities with no rural knowledge or experience

The

Pulpit

trying to lay blanket rules on everyone with a one-size-fits-all strategy. And if they can’t make policy, they’ll certainly have their tuppence-worth on what others should do. They advocate for the fencing of all waterways – and in some cases a polluter-pays regime, which is

SILVER BULLET: Fencing waterways is only part of the solution to improving water quality, Laura Henderson says.

fine according to Gareth Morgan because farmers can then be taxed out of existence. Our animals don’t get sick drinking the water, and many rural kids splash around in waterways during summer with no adverse effects. The argument that fertiliser and nutrient run-off damages waterways is only partly true. Why spend tens of thousands of dollars to fertilise your farm and help grass growth only to have that wash into the waterways the first day it rains? The goodness goes into the ground, and is taken up by the pasture plants. Look at the rivers running through cities, particularly downstream from big cities like Hamilton. These waterways appear more polluted than those in rural areas. In cities, the rain falls on tarmac and concrete that’s not capable of soaking up water. This rain water then runs into creeks, carrying with it oil and suchlike from roadways, and the litter people drop in gutters. In the countryside the ground soaks up water until it’s reached capacity – any run-off takes away only small debris and loose soil. Forestry must also accept some responsibility for water degradation, given the huge amount of logs and debris often left behind post-harvest. Heavy rain can flush this material into creeks and rivers, eventually restricting water flows. The idea to make farmers fence all waterways is economically unsound, not to mention totally impractical in a hill-country environment. Give credit to the dairy farmers who’ve fenced and planted the

2096FW

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HOLDING WATER: Wellington student Laura Henderson says stock doesn’t get sick drinking from NZ’s rural waterways, and country kids splash around in creeks and rivers during summer with no adverse effects.

They advocate for the fencing of all waterways - and in some cases a polluterpays regime, which is fine according to Gareth Morgan because farmers can then be taxed out of existence. flats. You see, agriculture really is the backbone of this country’s economy. Tourists not only come here to ski and bungy jump and all that, but also to look at our beautiful farmland and bushcovered mountains. Agriculture contributes far more to the economy than simply meat, dairy and wool. We also have rural schools

with staff, shearers, crutchers and fencers, fertiliser and farm consultants, rural banks and businesses, not to mention all the farm workers, managers, vets and institutions that train people in agriculture. Virtually all these people would be out of a job if farmers walked off the land. With unemployment running high in the cities, does NZ really want that many more people coming begging? Not to mention the cost of food going through the roof as imports increase significantly. I think not. • Laura Henderson is a Wellington student.

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

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

Once more unto the breach Alternative View

Alan Emerson

I’VE written on the Manawatu Gorge before and will inevitably do so again. Simply, I think the situation between Palmerston North and Woodville is a classic example of bureaucratic and political incompetence. The Manawatu Gorge is a vital route between the easternsouthern North Island and its western side. It was completed a while ago, 1872 in fact, and is just nine kilometres long. It’s also the only major east-west route between Wellington and the Napier-Taupo Road, which is a long, often meandering highway subject to closure because of weather. There are, however, two smaller roads linking east and west. The Pahiatua Track runs from Palmerston North to Pahiatua, and the Saddle Road goes from

Ashhurst to the north of Woodville. They are narrow, mainly singlelane affairs that’ve been allowed to fall into disrepair. When the gorge was closed for fourteen months in 2011 after a major slip, the brains trust at the New Zealand Transport Agency (NZTA) decided they’d upgrade these roads. What that meant was while the gorge was shut, both routes had time-delaying road works. The Saddle Road has had some money spent on it with extra passing lanes, but when you’re behind a convoy of a dozen or so trucks, they’re not a lot of use. In my rugby-playing days, we sometimes ran across the Saddle Road – from recent experience, I reckon running would be the quickest option because of the trucks. But it’s not really a trucking problem. If you want to get in and out of Wellington, Palmerston North, Taranaki or Hawke’s Bay, the Saddle Road is the only real option. In addition, if you get stuck behind a vehicle at the Palmerston North end of the Pahiatua Track, you’re over the track before there’s any passing lane, and that’s very small. The gorge closure also puts

increased pressure on the Rimutaka Hill and Wairarapa roads, which isn’t appreciated. It’s a shambles, and an extremely expensive one. Seven thousand vehicles used the gorge every day before its closure, and in the past decade it’s been out of commission for 338 days. A paltry $30 million has been spent over that time maintaining the gorge, and presumably the tracks. I’m sure that’s less than the Prime Minister’s slush fund. In fact, it’s a pittance. If the Manawatu Gorge had been located north of the Bombay Hills, the gorge would’ve been fixed long ago. The vast majority of this country’s exports travel by road – 95% of fruit, 86% of wool, 85% of dairy products, 65% of logs, though just 35% of export meat. With the contribution from the southern North Island for these products, we’re talking billions of dollars. According to Tararua mayor Tracey Collis, the indefinite gorge closure will affect “500,000 people”. So what’s happening? In a word: nothing. We’ve had Transport Minister Simon Bridges, complete with a high-vis vest and hard hat, telling

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us the gorge is unsafe. So what are you going to do about it? We’ve also had the moribund NZTA telling us they hope to have a plan by Christmas. That’s not good enough – in fact, it’s totally unacceptable. Talking to the locals is interesting. They claim communication with NZTA is “distorted and convoluted”. The government agency is also described as being “arrogant and high-handed”. The Saddle Road, which the NZTA says they’ll fix, came in for special mention. “The Saddle Road is totally dysfunctional, with cars losing their bumpers in pot-holes,” one local told me. “It is probably the most dangerous stretch of road in NZ,” and “The money already spent has only made it more dangerous,” others said. In addition, there’s Woodville that relies on road traffic getting bypassed, and Ashhurst which doesn’t want to be inundated with trucks parading through the middle of town. It should’ve been obvious to NZTA in 2011 for the need of an alternative route to the Manawatu Gorge. Typically, little progress has occurred. It’s frustrating because back in

2012, after the gorge had been out for more than a year, the Government announced $12.3 billion of funding for its Roads of National Significance programme. Sadly, rural roads didn’t feature. This year’s budget contained $4b for infrastructure, with $1.8b for transport. Again, there’s nothing for the gorge. The cost of fixing it isn’t great. Building additional roads north or south of the gorge is estimated at costing between $120 million$300m. Bridges criss-crossing the river would cost $415m, and a tunnel going through would cost $1.8b. For the amount of freight, tourism and general transport going through the gorge we’re talking a pittance. That’s especially so considering that the 27km Puhoi-to-Wellsford motorway north of Auckland will cost $1.4b-$1.9b to build. That’s a lot to pay for Aucklanders to get to their baches at Omaha Beach slightly faster, while leaving the Manawatu Gorge to wallow in political and bureaucratic ennui.

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 31, 2017

No dam dooms region to decline From the Ridge

Steve Wyn-Harris

I SEE Dan Elderkamp from Forest & Bird has given me a serve (see Letters) over my column anguishing the opportunity lost for the Hawke’s Bay region. My concern comes from the Supreme Court’s ruling against the Ruataniwha dam conservation land swap, possibly ending all hope for the proposed water storage scheme. Some years ago, I went on a Duke of Edinburgh tramp with Dan as we travelled with our young charges through the wonders of New Zealand’s native forests. We both share that interest and love of the great outdoors. Dan is a likeable fellow, but as his campaign against the dam intensified, I’d point out to him that the school bus he drove through the district would eventually reflect the demographics and economic decline of our area without the

opportunities the dam would bring. That bus feeds into Central Hawke’s Bay College – when I went there a long time ago, there were 900 students, when my kids attended there were 650 and at the moment there’s about 520. When I organised a 30th reunion of my seventh form class of 50, there were just four former classmates still living and working in the area because the rest had spread around the world for jobs and further opportunities. So, without new economic initiatives in Central Hawke’s Bay there’ll be an inevitable population decline in the district, along with the prospect of fewer jobs for teachers, support staff and school bus drivers. Those of us who’ve survived the massive changes farming has experienced since the 1980s have dramatically changed the way we farm to survive, and hopefully thrive. Those changes are a very real example that my colleagues don’t have blinkers on and are prepared to adapt to changing circumstances. But climate change, increasing droughts and a forecast drier future for this part of the world, continues to make a compelling argument for capturing the vast

volumes of water going into the ocean unused during winter to utilise during dry summers. Dam opponents tell us that onfarm storage is the answer, although this has a much higher unit cost than water from a scheme. And at the same time they say that the scheme’s water is uneconomic, which just confuses me. This column’s accompanying photo was taken by Steve Wilson, a neighbour of the 22ha Department of Conservation land proposed for the swap. It hardly shows pristine DOC estate, as argued by those who haven’t seen it. It’s true that Smedley Station, which was proposing to swap 170ha for the 22ha of DOC land, is owned by the Crown but it’s interesting to note that it was a farmer, Josiah Howard, who gifted that land to be used for the agricultural training of NZ’s young farmer cadets, something it’s done admirably over the years with 600 graduates. The AW Parsons Estate is another local property gifted by a farmer for the betterment of the district’s youth. Around the country there are other estates and trusts that farmers have bequeathed because they have an

SPECIAL? A view of the “pristine” 22ha of Department of Conservation land offered as a land swap with Smedley Station for the proposed Ruataniwha dam in Hawke’s Bay. Photo: Steve Wilson

intergenerational view towards their communities. Because of the tie-up of home, business, love of the land and family history, many farming families live in these communities for a hundred years or more. We have built these communities, and want to see them continue and thrive. Folk like Dan, who emigrate to this country and end up in a place like Central Hawke’s Bay, are attracted by our values, the pace of life, a safe community, the activities on offer and, of course, the relatively lower land values. We welcome these new people, the different perspectives they

offer and the varying skills they bring. But what is difficult to swallow is when someone like Dan does everything he can to deny a sustainable economic future for our district’s youth, then decamps to Waikato, a region I note that doesn’t require irrigation through summer, and has a heavy dependence on dairy with the consequent burgeoning of school rolls and plentiful job prospects.

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

Red meat’s passport to success Meaty Matters

Allan Barber

KPMG’s 2017 Agribusiness Agenda paints a positive picture of a profitable future for New Zealand agriculture. The report describes the industry as an “artisan, niche producer of premium-quality, safe and sustainable food and beverage, fibre and timber products – the sector does not aspire to feed the world, but recognises the importance of making a substantive contribution to helping the world to feed itself”. However, to reach this future state, agribusiness must embrace the principles of sustainability, innovation, guaranteed provenance and reputation for quality. As always when a document attempts to embrace the whole agricultural sector, comparative goals become a bit stretched across such widely divergent commodities as meat, dairy, horticulture, wine, wool and forestry. But the message is clear: to establish a competitive position at

the higher end of the value chain, it’s necessary to focus on providing what the world’s wealthier consumers demand, instead of persisting in selling what we produce. The Agribusiness Agenda states unequivocally the consumer must be central to everything we do – by now this ought to be elementary because without the consumer there is no market – but this isn’t the case. The NZ wine industry is the most obvious agribusiness example of a successful extension into the upper reaches of a consumer market segment, the result of good marketing and a sizeable dollop of luck. If the herbaceous character of our sauvignon blancs hadn’t fortuitously coincided with a change in northern hemisphere taste buds, particularly in the United Kingdom and United States, our wine industry would’ve still been trying to discover its unique market positioning. Although individual wine labels have been able to build strong brands on the back of the sauvignon blanc craze, the “parent” brand remains NZ, with Marlborough as a strong regional denominator. This has gradually allowed a range expansion across other grape varieties like pinot noir. It is more than 15 years since Fonterra was formed and this country is firmly established as

the world’s biggest exporter of dairy, much of it in the highlycommoditised form of whole milk powder, although share of the world’s dairy production is relatively small. Progress towards a global reputation for high-quality, branded consumer products has been much slower. Individual dairy companies have developed their own niches – Tatua, Synlait and Fonterra, among others – but realistically to reproduce the scope and scale of Danone and Nestle is beyond NZ’s financial capacity. We have to be smarter at how we evolve our competitive position. Although Anchor and Anmum have achieved consumer success in specific markets, Fonterra now appears to be pursuing a food ingredients strategy as the most logical means of tapping into high-value product areas. The co-op’s recently announced $150 million cream cheese project aims at taking advantage of the fast-growing Asian demand for innovative milk-based products. Reliable supply of mozzarella for pizzas is another profitable niche. Over the past 25 years, the red meat sector has emerged slowly from decades of commodity trading, notably with the development of chilled lamb sales to the European Union, but even this higher-value segment has become increasingly price-driven. The dramatic growth in the

Chinese middle class, and the NZ-China free-trade agreement, have combined to enable meat exporters to spread their risk outside traditional markets, and extract more value from totally new cuts and different parts of the carcase. Partnerships with Chinese food retail and distribution companies like Grand Farm and Shanghai Maling will only enhance this value-building process. The KPMG Agribusiness Agenda identifies the trends our food producers must recognise and be aware of, as they develop products to meet consumer wants. Sustainability at all stages of production won’t be negotiable when accessing premium markets – although this doesn’t appear to apply to the packaging of luxury perfumes and cosmetics – and farmers will be expected to produce ever-higher yields from fewer inputs, assisted by computerised measurement of all aspects of production. Provenance of product and uptake of the technological agrarian revolution will provide the essential passports to market success. In the foreword to KPMG’s report, the organisation’s global head of agribusiness, Ian Proudfoot, notes the significant change in the industry’s attitude since the 2014 general election, when leaders were concerned

about the possible effect of a change of government. In 2017 there is much greater recognition of the importance of the consumer in setting the agenda instead of worrying about the effects of legislation. Proudfoot challenges all those involved in the agribusiness sector to do what they can to complete the report’s theme, Recipe for Action, which lists 110 separate actions identified from discussions with industry leaders, whether producers, processors, exporters, research institutes, industry-good bodies, local or central government. On reading this year’s Agribusiness Agenda, I’m concerned the general reaction might be to file it and ignore the challenges, but Greenlea chief executive Tony Egan was more positive. He takes the view it offers an important perspective on a future direction that companies and producers have already started to follow. Like all visionary strategic plans, speed of uptake will vary, but the effects will suddenly become evident just when we least expect it.

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

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – July 31, 2017

INVESTMENT OPPORTUNITY

WAIBURY

GROUP FARMS

THE OFFERING

THE OVERVIEW

• Land and Buildings - 8 Dairy Farms - 115ha bareland runoff (North Canterbury) • Stock, Plant and Equipment • Fonterra Shares

Total Farms

Total Area

2,164 hectares

Effective Area

2,027 hectares

The Waibury Group will be sold with the existing equity operators of each dairy unit in place, which under the present structure, a new owner would have an approximately 86% share of the Group.

Total production 16/17 season 3,348,820kgMS Cows wintered 2017

7,600

There is a separate management company, Total Management Services Limited, which could continue into the future, or help a new owner transition into the Group if required.

Plus runoff

115 hectares

Ben Turner 027 530 1400 ben.turner@bayleys.co.nz

Mike Adamson 027 221 1909 mike.adamson@bayleys.co.nz

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

DEADLINE SALE 4pm, Fri 25 August 2017 (unless sold prior) bayleys.co.nz/555080

VIEWING BY APPOINTMENT

VALHALLA FARM - ELITE FARMING COUNTRY 175 Valhalla Road, Kekerengu 282.3ha (697.3 acres). Valhalla Farm is a once in a lifetime opportunity to own your slice of rarely available and desirable Marlborough east coast land. With such expansive surroundings overlooking the ocean, you are guaranteed phenomenal views throughout this amazing property. Well renowned for quality livestock and great stock health, Valhalla benefits from approximately 136ha of flats and easy rolling country. The farm has enjoyed an ongoing development programme including regrassing and greenfeed crops. Farm improvements include implement shed / workshop, haybarns, 3 stand shearing shed, sheep and cattle yards, and other ancillary buildings. The homestead, set amongst established grounds comprises of five double bedrooms, office / sunroom and double living. The open plan kitchen, dining, and living, along with the large formal lounge is positioned perfectly to absorb the sea views. Set in a stunning valley, Valhalla is an attractive finishing property and is sure to appeal. This property is offered for sale by tender closing 2pm Wednesday 30th August 2017 at 62 Market Street, Blenheim.

282.3ha

Tender - 2pm Wednesday 30th August 2017 www.msfn.co.nz/msru10007

Eion Townley m 021 221 3328 b 03 578 8059 eion@firstnational.co Licensed Salesperson REAA 2008 Mark Tschepp m 027 472 4991 b 03 578 8059 markt@firstnational.co Licensed Salesperson REAA 2008

Marlborough Licensed Agent REAA 2008

Contributor to realestate.co.nz

Real Estate

THE NEW ZEALAND FARMERS WEEKLY – July 31, 2017

farmersweekly.co.nz/realestate 0800 85 25 80

RURAL | LIFESTYLE | RESIDENTIAL

Licenced under REAA 2008

AUCTION

TENDER

Fully Deer Fenced Grazing Block

Wellsford

Choose The Options To Suit

Komata

74.93ha (185 acres) predominantly easy rolling contour. Large deer shed, modern three bay tractor shed and two barns. 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

Option A: • 180ha dairy unit supplying OCD • 30ASHB shed and tidy three bedroom cottage Option B: • 57ha elevated rolling hill grazing block on Strange Road. • A two bay shed, cattle yards and load race. Option C: • Three bedroom 1900´s Kauri villa home • Situated on Maratoto Road, sitting on 4.3ha (STS)

TENDER

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

(Unless sold prior) Closes 4.00pm, Friday, 25 August PGG Wrightson Real Estate, Morrinsville OPEN DAY 11.30 - 1.00pm, Tuesday, 1, 8, 15, 22 Aug MARATOTO ROAD

A tender may be for Option A, B, C, or for all three. www.pggwre.co.nz ID: WEL26297

www.pggwre.co.nz ID: MOR25634

Scott Tapp B 09 423 9717 M 021 418 161

Allister Coombe B 07 889 0167 M 027 507 7622

pggwre.co.nz

New Zealand's leading rural real estate company

Licensed under REAA 2008

RURAL Office 0800 FOR LAND

Property Brokers Limited Licensed REAA 2008

Kaitawa - 542ha

Outstanding Levels Lifestyle This outstanding property has it all; 17.8515ha (three titles) of flat to gentle rolling fertile soils, nine main paddocks, mostly deer fenced with excellent subdivision and lane systems. Well maintained shelter belts and aesthetic plantings. Excellent stock handling facilities including deer yards, cattle yards and a small sheep yard. Consent to irrigate with K-line irrigation, the mainline system feeding hydrants to all paddocks. A magnificent architecturally designed, four bedroom home. www.pggwre.co.nz ID: GER26415

farmersweekly.co.nz

WEB ID MR56544 ALFREDTON 14405 Route 52 View By Appointment This 5200 s/u plus grazing and semi-finishing property TENDER closes Wednesday 9th August, 2017 at 4.00pm, located in a renowned farming district has a balance of Property Brokers Limited, 84 Chapel Street, Masterton Paul Joblin northern facing hills and 45 hectares of flats in Mobile 027 443 3756 improved pastures. The pastures on the hills are Office 06 378 7604 4 indicative of an excellent fertiliser program. The Home 06 372 7789 paulj@pb.co.nz improvements are of a high standard including a 3 stand woolshed with an excellent covered yard facility 2 Jared Brock (1500NP), a sound 4 bedroom home as well as a good Mobile 027 449 5496 3 bedroom cottage with a variety of farm buildings Office 06 376 4823 Home 06 376 6341 including an impressive 10 bay calf rearing facility. 2

TENDER

Timaru DEADLINE PRIVATE TREATY (Unless sold prior) Closes 4.00pm, Thursday, 24 August CONTACT AGENT FOR OPTIONS TO PURCHASE Richard Scott B 03 687 7330 M 021 352 701 H 03 693 8311

pggwre.co.nz

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

farmersweekly.co.nz/realestate

www.propertybrokers.co.nz

jared@pb.co.nz

ANIMAL HANDLING

ATTENTION FARMERS

DOGS FOR SALE

FLY OR LICE problem? Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

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

HEADING DOG, 2 years. Noise on cattle, $950. 11 month Smithfield dog, good potential. $950. Phone 07 873 0711. ONE 7-MONTH-OLD very well bred Huntaway pup ready to start AND one 8-month-old Heading bitch ready to work. Phone 06 388 0212 or 027 243 8541.

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

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

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

DOGS FOR SALE SAVE YOUR MARRIAGE! With a dog? Never draught stock with your partner again! 40 DOGS $1000-$3500. View online or on farm working sheep or cattle. Deliver NZ wide. Trade ins welcome. 30 day exchangeable trial. 07 315 5553 Mike Hughes

DOGS WANTED BUYING 300 DOGS, NZ wide annually! Quick easy sale. No trial required. No one buys or pays more! 07 315 5553 Mike Hughes.

BLACK KELPIE BITCH 6 months reg, vacc and microchipped keen as $700. Other pups available in 3 weeks. Phone 04 439 6720.

Classifieds

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

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

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

FERAL DEER WANTED

IN SOUTH ISLAND. 2-year Heading dog. Pulling sides, good distance, capable dog, Moves stock! $2875. 07 315 5553. Mike Hughes.

HAVE YOU GOT A problem with feral red deer on your farm? We will harvest and process them for you. Top prices paid. Enquiries to Garry 027 636 5446 or David 027 303 9206.

CHOCOLATE LABRADOR pups, ready now. Out of top field and water bitch. Sire: 1st season shot over. Approved homes only. Phone 09 233 4066 / 027 470 5508.

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

GRAZING AVAILABLE 180 HECTARES HILL country. Tuturumuri district. Numbers negotiable, viewings welcome. Phone Chris 06 307 8862 or James 06 307 8115.

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

THE NEW ZEALAND FARMERS WEEKLY – July 31, 2017

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

WANTED FOR FIREWOOD

CHILLERS &

FREEZERS

EARMARKERS

BIRDSCARER DE HORNER

udly NZ Madew Pro Since 1975

021 441 180 (JC)

TREES. BLACK WATTLE, Blackwood, Casuarina, Gums etc wanted. Clean up guaranteed. Waikato / BOP areas. Tokoroa based. Phone 07 886 6387.

WORK WANTED SEMI-RETIRED Shepherd General, seeking long term position on cattle finishing block. Own dogs and kennels. Kaipara Whangarei. Please phone 021 0826 7450. BEE KEEPER available for 2017-2018 season. 5 years experience, own vehicle negotiable. Base and fourbay shed available. Sites available for 500 hives, mainly kanuka and manuka in Ruatoria – Te Tuia Springs area. Wages or contract negotiable. Phone Taiaho White 06 864 0803.

HOOF TRIMMER

FARMERS

frigidair@vodafone.co.nz

Do you need new farm tracks or upgrade existing ones?

FOR FARMERS & HUNTERS When only the best will do!

FOR SALE

SELLING

SOMETHING? 0800 85 25 80

Good tracks and raceways: • make it quicker and easier to get around the farm • reduce wear and tear on farm vehicles • help prevent lameness in stock OR Have metal that could be used for crushing? We have two mobile crushers and screening plant. We do: • on site metal crushing • metal supply and cartage • upgrade existing tracks & drainage • retaining wall construction • river production and stream maintenance • all types of earth works and metal contracting

LK0088518©

classifieds@nzx.com – 0800 85 25 80

LK0088498©

Tim McColl Contracting Ltd

17 Simon Street FEILDING Office: Phone 06 323 8889 Tim: 027 446 3383

Employment

Move to the Bay Of Plenty!

Wanted for Timahanga Station on Taihape Napier Road, 80 kilometres from town. • General hand, tractor driving experience required

NEED

• Ability to work with stock in yards • Fencing and chain saw experience an advantage

STAFF?

• Able to work in a team or on their own • Single accommodation only. Meals at cookhouse. Enquiries to Alan Roberts evenings 06 388 0405

LK0088586©

• Dogs not required

Call Debbie

Email your CV to: lee@sxhort.co.nz

• LEASE • BUY • SERVICE • COMPLIANCE

0800 383 5266

We have an exceptional leadership opportunity for an ambitious individual to bring their expertise and experience to help drive our new strategy. This busy and challenging role will be a key part in driving change within our business and best suits an individual who has a strong agricultural background, with proven experience of being a successful leader. You will oversee and be accountable for fourteen farms. The successful candidate will contribute significantly to the development of national livestock strategies, provide people, financial and business leadership, act as a role model of organisational values, be the public face of Landcorp within the region and build rewarding and trusting relationships with key stakeholders. The position has a significant revenue and expenditure accountability and requires regular travel. You will bring • Extensive commercial and leadership experience in NZ agricultural industry • Strong numeracy skills and a high level of computer literacy • Proven ability in leading and coaching teams • Sound knowledge of New Zealand livestock farming systems and the agricultural industry • Ability to build strong relationships and networks with both internal and external stakeholders • Practical understanding and experience of using farm-related software programs like Farmax and FarmIQ • Comprehensive understanding of product quality, occupational health and safety, animal welfare and environmental management. Info about the vacancy and details of how to apply: www.landcorp.co.nz/careers

Group Manager Our client, Waikura Joint Stations, has business interests across the East Cape of the North Island of New Zealand consisting of forestry, farming, beekeeping and hunting. This new role will manage group operations to deliver on company objectives, provide quality leadership for managers and staff, drive internal reporting improvements and maintain regular and proactive communication with the Chairman on all aspects of the East Coast operations. We are looking for candidates who have a broad range of skills and experience encompassing leadership, finance, planning, asset management, and compliance monitoring and reporting. You will have commercial acumen and the proven ability to translate this into delivering expectations. Above all we are seeking a high level of selfmotivation, energy and confidence, someone who is professional and has a strong ability to think laterally to deliver focused business solutions. A large four-bedroom home is available onfarm in the Waikura Valley but alternative options could be considered.

CLASSIFIEDS REACH EVERY FARMER IN NZ FROM MONDAY Advertise in the NZ Farmers Weekly $2.00 + GST per word - Please print clearly Name: Phone: Address: Email: Heading: Advert to read:

To apply for this role, please submit a letter of introduction and an updated CV via www.qjumpers.co.nz/job-seeker – highlighting how your experience aligns with the requirements of the role.

Applications close: Wednesday, 16 August 2017 Go to www.waikura.co.nz for further information about Waikura Joint Stations

LK0088515©

FOR SALE

0800 85 25 80 classifieds@nzx.com

SENIOR BUSINESS MANAGER WELLINGTON

Applications close 5pm Sunday, 13 August 2017.

Fencing and outdoor working skills required for developing kiwifruit orchards in Te Puke to Waihau Bay areas. Excellent opportunities to grow your skills and income with our team focused, progressive, respectful and values-based company. References required.

LK0088543©

General Hand

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

Livestock

THE NEW ZEALAND FARMERS WEEKLY – July 31, 2017

SALE TALK

annual bull sale Tuesday 15 August 2017 – 12.30pm 341b Matauri Bay Road, RD1, Kaeo, Northland th

90 LOTS with massive dollar indexes – 76 R2's & 14 autumn born yearlings The stud herd of 400 females is run under commercial conditions on hill country.

R1 YR ANGUS STEERS 220-280kgs

R2 YR STEERS 420-500kgs 400-500kgs R2 YR BULLS FRIES & BEEF MA SIC COWS Nov/Dec/Jan BULL

www.dyerlivestock.co.nz

TOKOROA WEEKLY CALF SALE Commencing Friday 28th July 2017 – 12 Noon 547 State Highway 32, Tokoroa Contact: Steve Emile – Putaruru/Tokoroa 027 224 3380

MATAURI OUTLIER F031

Michael Conwell – Rotorua/Reporoa 027 226 1611 Bryan Sweeney – Te Poi/Tirau 027 869 2620

FRANKTON FEEDER CALF SALE

CONTACTS 027 501 8182 027 592 2121 027 497 8691 09 405 0357

Sales every Wednesday 12 Noon Contact: Stu Wells 027 282 8204

For more info please email colin@matauriangus.com or visit www.matauriangus.com

ALL CALVES MUST BE NAIT TAGGED!

Crossbreed Autumn Heifers for Export

Download the app today

Breed: Colour:

Jersey/Friesian cross Brown and black broken colours Age: Born Autumn 2016 Weight: 300-350kg Pedigree: 3-generation pedigree Pregnancy: Confirmed in-calf to Jersey bull Date: September 2017

PROMOTE YOUR 2017 YEARLING STUD BULL SALES

$1300 + GST ex farm North Island

LK0088544©

LK0088556©

Price:

LIVESTOCK ADVERTISING

Enquiries to mark@hedleyjohn.com or 021 866 673 for further details

Taupo Western Bays Farm Manager Lance Aldridge has used Gleniti Romney Rams for over 25 years. He says their consistency and reliability has produced top performing ewes whose fertility is outstanding and impressive.

“

Strong demand for Friesian bulls. Recorded Friesian heifers & Whiteface calves.

Book your ad in our livestock section to reach the right audience today!

”

Contact Nigel Ramsden now on 06 323 0761, 027 602 4925 or livestock@nzx.com

Bill Hume 06 307 7847 David Hume 06 307 7895 Gleniti, RD 2, Featherston

2348FW

We’ve had the highest scanning ever despite going through two droughts back to back. We keep going back because it works. It’s about performance and profit in a harsh environment including, snow ice and summer droughts.

LK0088405©

Cam Heggie Bruce Orr Neil Miller Colin Maxwell

Download the app today

0800 85 25 80

R1 YR BULLS 150-270Kgs

Used in 180 stud herds the Matauri AI team have topped numerous sales throughout Australasia with sons selling up to $47,000 this season.

32 R3 Hereford Heifers with 13 Autumn-born Hfd Bull calves and 19 Autumn-born Hfd Hfr calves at foot. RWB Mangahina Hfd bull, 2018 calving 42 days Also 11 R3 Hfd Heifers and 14 R2 Hfd heifers. RWB Mangahina Hfd Bull, 1st March 2018 calving, 42 days. Enquiries to Vaughan Rogers 027 452 1568

livestock@nzx.com

180-250kgs R1 YR HEIFERS

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

Friday 4th August SPECIAL ENTRY A/c Glendeen Farm Ltd

Call Nigel

STOCK REQUIRED

In the last 3 years Matauri Angus has established itself as a leading provider of NZ Angus based genetics in the Australasian beef industry.

TE KUITI CATTLE FAIR

Advertise your ram sale in The NZ Farmers Weekly

Ross Dyer 0274 333 381

LK0088542©

The game show contestant was only 200 points behind the leader and about to answer the final question - worth 500 points! “To be today’s champion,” the show’s smiling host intoned, “name two of Santa’s reindeer.” The contestant, a man in his early thirties, gave a sigh of relief, gratified that he had drawn such an easy question. “Rudolph!” he said confidently, “and, ...Olive!” The studio audience started to applaud (like the little sign above their heads said to do), but the clapping quickly faded into mumbling, and the confused host replied, “Yes, we’ll accept Rudolph, but could you please explain... ‘Olive?!?’” “You know,” the man circled his hand forward impatiently and began to sing, “Rudolph the Red Nosed Reindeer had a very shiny nose. And if you ever saw it, you would even say it glowed. *Olive,* the other reindeer...”

livestock@nzx.com – 0800 85 25 80

MARKET SNAPSHOT

IN PARTNERSHIP WITH

Grain & Feed

MILK PRICE FORECAST ($/KGMS) 2017-18

6.50

6.68

AS OF 24/05/2017

AS OF 20/07/2017

Prior week

Last year

Mar 17 AgriHQ Spot Fonterra forecast

May 17

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

WMP GDT PRICES AND NZX FUTURES

5.50

338

333

NI mutton (20kg)

4.10

2.70

345

342

273

SI lamb (17kg)

6.65

5.35

Feed Barley

352

255

SI mutton (20kg)

4.15

2.60

222

Export markets (NZ$/kg) 8.14

8.22

7.55

221

UK CKT lamb leg

Maize Grain

418

410

342

PKE

219

220

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.

Jul 17 AgriHQ Seasonal

6.75

6.5

Last week

Prior week

5.0

Last year

4.5

CBOT futures (NZ$/t) Wheat - Nearest

245

256

214

Corn - Nearest

200

203

185

390

380

327

3500 3000

ASW Wheat

379

375

326

2500

Feed Wheat

292

290

262

2000

Feed Barley

337

332

262

113

PKE (US$/t)

Jun 17 Sep 17 NZX WMP Futures

South Island 1 7kg lamb

7.0 6.5

APW Wheat

1500 Sep 16 Dec 16 Mar 17 C2 Fonterra WMP

6.0 5.5

INTERNATIONAL

Australia (NZ$/t)

4000

North Island 17kg lamb

7.0

Ex-Malaysia

NZ venison 60kg stag

6.0

600

$/kg

5 Jan 17

5005.5 4005.0 3004.5 Oct Oct

Dec Dec

FebFeb

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

Prior week

vs 4 weeks ago

WMP

3225

3150

3000

SMP

2030

AMF

6900

Butter

6300

Last week

Prior week

Last year

Last week

Prior week

Last year

2100

Urea

477

475

29 micron

6.65

8.20

6700

6900

Super

309

314

35 micron

3.30

5.55

6300

5900

DAP

784

39 micron

2.65

5.55

702

3000 2750 Oct

Nov

Dec

Jan

THE global quarterly reporting season gave us plenty to monitor last week, with a number of large corporates reporting earnings for the second quarter of 2017. The most-watched event last week was without doubt the United States Federal Reserve’s two-day July meeting. Although this meeting wouldn’t result in a change to forecasts, nor would it result in a change to rates, the commentary was going to be watched for clues on the central bank’s path. As expected the Fed funds rate range remained on hold after being raised by 0.25% last month to 1-1.25%. The commentary was positive, albeit cautious, because the committee continues to see economic activity rising – however, inflation remains subdued and this is of concern. The committee expects to begin implementing its balance sheet normalisation programme soon, unwinding the massive quantitative easing programme it undertook following the global financial crisis. The overall cautious tone of the commentary has seen expectations of another rate hike this year fall again. Market commentary provided by Craigs Investment Partners

11284

S&P/FW AG EQUITY

14030

S&P/NZX 50 INDEX

7712

S&P/NZX 10 INDEX

7470

$/kg

250 150 Jul 13

4 w eeks ago

Sharemarket Briefing

5.5

NZ venison 60kg stag

600

c/k kg (net)

350

NZ$/t

US$/t

3250

39 micron wool price

6.5

CANTERBURY FEED PRICES 450

S&P/FW PRIMARY SECTOR

This yr

(NZ$/kg)

3500

Latest price

Last yr

AugAug

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Sep

JunJun

WOOL

* price as at close of business on Thursday

Aug

AprApr

FERTILISER

Last price*

2500

Last year

6.75

Feed Wheat

Waikato (NZ$/t)

Last week Prior week

NI lamb (17kg)

Milling Wheat

PKE

Slaughter price (NZ$/kg)

c/kkg (net)

$/kgMS

Last week Canterbury (NZ$/t)

MILK PRICE COMPARISON

US$/t

SHEEP MEAT

DOMESTIC

AGRIHQ 2017-18

FONTERRA 2017-18

Sheep

$/kg

Dairy

Jul 14 Feed barley

Jul 15

Jul 16 PKE spot

Jul 17

300

2.5

Oct Oct

Dec Dec

Feb Feb

AprApr Last yr

JunJun

AugAug This yr

Dollar Watch

YTD High

YTD Low

Auckland International Airport Limited

6.95

7.43

6.31

Meridian Energy Limited

2.89

3.02

2.57

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

3.83 11.03 7.84 3.45 8.93 5.34 3.35 26.09

3.95 11.67 10.86 3.59 9.12 5.34 3.60 26.36

3.32 8.50 7.38 2.94 8.12 4.65 2.08 17.47

Listed Agri Shares

3.5 400

5‐yr ave

Top 10 by Market Cap Company

4.5

500

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

4.520

2.060

Cavalier Corporation Limited

0.300

0.810

0.270

Comvita Limited

6.000

8.650

5.150

Delegat Group Limited

6.850

5.650

Foley Family Wines Limited

1.300

1.500

1.200

Fonterra Shareholders' Fund (NS)

6.030

6.400

5.880

Livestock Improvement Corporation Ltd (NS)

2.400

2.610

2.350

New Zealand King Salmon Investments Ltd

1.680

1.750

1.220

PGG Wrightson Limited

0.590

0.610

0.490

Sanford Limited (NS)

7.260

7.750

6.700

Scales Corporation Limited

3.460

3.650

3.210

Seeka Limited

5.010

5.500

4.300

Tegel Group Holdings Limited

1.270

1.460

1.050

S&P/FW Primary Sector

11284

9307

S&P/FW Agriculture Equity

14030

10899

S&P/NZX 50 Index

7712

7733

6971

S&P/NZX 10 Index

7470

7563

6927

THE New Zealand dollar This Prior Last is very stretched both NZD vs week week year technically and in terms of USD 0.7487 0.7409 0.7079 speculative buying at the moment, and could stay EUR 0.6414 0.6371 0.6391 that way for a time yet. AUD 0.9398 0.9306 0.9432 “Any way you look at GBP 0.5733 0.5711 0.5378 the charts suggests a very Correct as of 9am last Friday sharp rise, up too far and too fast,” Westpac Bank strategist Imre Speizer said. “It can stay stretched for quite a while, but the data is a warning that you wouldn’t want to buy it at these levels because there could be a sharp pull-back.” The kiwi moved above US$0.75 briefly last week, to a twoyear high. Speculative buying of the dollar around the world is near record levels, Speizer said. “When it is that lopsided and everyone moving one way on it, when there is a catalyst the other way the selling can become a stampede.” The issue for currency cross-rates has been weakness in the United States dollar, and that’s why there’s been no kiwi pullback yet, he said. “We’ve struggled to get it right for a while now, but we cling on to the view that the US economy is improving, interest rates will rise during the year and that the dollar will rise.” Speizer’s sticking with a US$0.68 rate for the NZ dollar by year-end. He expects the kiwi to remain steady with the euro over the next few months, to rise against sterling, and to fall to about 0.90 on the Aussie cross. Alan Williams

Markets

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

WAIKATO MAIZE GRAIN

NI SLAUGHTER LAMB

SI SLAUGHTER LAMB

($/T)

($/KG)

TRADITIONAL PRIME HEIFERS, 470-660KG, AT TEMUKA

($/KG)

6.75

418

6.65

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

Last week

Prior week

Last year

NI Steer (300kg)

5.65

5.50

NI Bull (300kg)

5.60

5.45

NI Cow (200kg)

4.50

SI Steer (300kg)

5.45

5.55

5.30

SI Bull (300kg)

5.15

5.20

SI Cow (200kg)

4.35

4.15

US imported 95CL bull

7.07

7.15

7.07

US domestic 90CL cow

6.92

7.06

6.85

Export markets (NZ$/kg)

North Island steer (300kg)

6.5

$/kg

6.0 5.5 5.0 4.5 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)

8.90

8.00

NI Hind (50kg)

8.80

7.90

SI Stag (60kg)

9.10

8.00

SI Hind (50kg)

9.00

7.90

New Zealand venison (60kg Stag)

c/k kg (net) $/kg

NZ venison 60kg stag

600 8 500 7 400

300

6 Oct

Oct

Dec Dec 5‐yr ave

Feb Feb

Apr Apr Last yr

Jun Jun

Aug Aug This yr

2.73

high lights

$280-$310

$106-$122

Good Hereford-Friesian bull feeder calves at Manfeild Park Calf Sale

Medium-to-good male lambs at Stortford Lodge

Temuka sale largely unaffected by flooding

LOODWATERS had receded around South Canterbury, and the Temuka sale was largely unaffected by the deluge, with just a small number of sheep reportedly not able to make it to sale. Wet conditions did little to discourage buyers either, with winter low yarding’s easily absorbed by regular buyers. NORTHLAND NORTHLAND More rain has left Northland saturated and was eating into buyers appetite for store cattle at WELLSFORD. Quality beef cattle were in short supply through the R2 steers, and these were down a little. Hereford-Friesian, 454-522kg, made $2.79-$2.80/kg, while a good portion of the rest were a mixture of various different dairy-types, with 416-461kg making $2.60-$2.69/kg. Prices through the R2 heifers exceeded expectations given the numbers offered, selling to very consistent market. They were mainly a mixture of beef-dairy and Herefordcross, with $2.75-$2.85/kg covering almost anything in the 318-401kg range. R1 steers were in complete contrast in that prices varied heavily. A few Hereford-Friesian, 263-317kg, did top out the market at $900-$1005, $3.17- $3.42/kg. Two lines of Friesian & Friesian-cross steers, 270-315kg, made $700-$790, $2.51-$2.59/kg. A line of 200kg Angus-Friesian were the highlight of the R1 heifers at $740, $3.70/kg. Some 106kg Hereford-Friesian bulls proved especially popular at a very impressive $640, $6.04/kg. While the weather in Northland is making buying tentative, KAIKOHE sale last Wednesday did manage to hold its own, with prices mainly steady, PGG Wrightson agent Vaughan Vujcich reported.

FULL HOUSE: Big numbers were on sale at the Feilding saleyards on Friday. Photo: Aaron Davies More photos: farmersweekly.co.nz

Around 550 head were on offer, with the R2 steer pens consisting of beef and beef-Friesian, with most making $2.85-$2.90/kg. Friesian and Ayrshire sold for $2.52-$2.62/kg. In the bull pens, the better Friesian and beef-cross traded on a softer market at $2.70-$2.80/kg. Heifers had some quality in the pens, with most Angus-cross or exotic, though prices of $2.65-$2.75/kg reflected an easing in demand. The R1 market was solid enough, though anything lesser types were overlooked. Luckily these were in the minority, and beef steers sold on a steady market at $3.40-$3.50/ kg, while the better bulls returned $3.10-$3.30/kg. Autumn-born 100kg bulls fetched $615. Heifers had good weight at 250-290kg, and mainly consisted of Angus and Simmentalcross. Prices reflected solid demand,

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with these going under the hammer for $3.00-$3.05/kg, while red Hereford-Friesian weaners made $450-$460. The cow market softened as schedule prices do the same, and heavy types returned $1.80-$1.92/kg, and lighter dairy, $1.70/kg. AUCKLAND AUCKLAND Wet conditions forced more cattle to market at PUKEKOHE on Saturday 22nd July, and with schedules not budging, returns to vendors remained the same, Livestock Mart auctioneer Pat Farrell reported. The top line of steers packed plenty of weight at 795kg, and made $2.83/kg, with 501kg earning $2.70/ kg. Lighter steers, 430kg, returned $2.81/kg, while the best of the heifers,

Continued page 30

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Markets

30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017

BAY OF PLENTY BAY OF PLENTY A relatively warm day at RANGIURU greeted a decent crowd from Auckland, the King Country and local areas. R1 steers and heifers had a big presence, with quality lines present for both classes, but weren’t many R2 lines. A few 762-780kg HerefordFriesian steers were a highlight among the prime cattle at $3.06$3.08/kg. Boner Friesian cows at 400-480kg were $1.88-$2.00/kg, though one 643kg line went for $2.26/kg. In-calf Friesian cows,

There were quite a few breeding ewes in the pens. A line of more than 200 scanned-in-lamb twotooth’s were the highlight, selling to $140. The better mixed age scanned-in-lamb ewes were $104$110, but decent run-with-ram lines were only at $70.50-$90.50. Most prime lambs were $114.50-$121, though two better lines were at $134-$158.

The slight increase of autumnborn R1 cattle did not soften the market. Hereford-cross steers, 136kg, were snapped up for $490, while their sisters, 102-129kg, managed very similar returns at $400-$500. Autumn-born R1 bulls, 93-111kg, proved popular and sold for $630-$700. Dairy types dominated the cow yarding, with Friesian and Friesian-cross, 433-580kg, returning $1.89-$2.07/kg. A small offering of Angus-cross cows with calves-at-foot made $750.

HAWKE’S BAY HAWKE’S BAY Mild weather in Hawkes Bay boosted confidence in all classes at STORTFORD LODGE last Wednesday, while Angus cows featured on Monday. Cattle sold to expectations at last Monday, as limited processor space was counterbalanced by low numbers. Angus cows featured and sold for $2.17/kg, with Murray Grey, 527kg, managing $2.15/kg. Angus heifers softened to $2.92-$2.93/kg for 605-663kg, with second cut’s earning $2.71-$2.80/kg. A typical winter yarding of sheep sold on a firm market, with all regular buyers in action. Ewe lambs came out in force, and $135-$156 was common ground, with most male’s heavy types at $143-$153. Top honors of $170 went to a line of very heavy mixed sex. Ewe numbers did start to come down, and the lighter end in particular were chased. Most traded at $110-$132, with twotooth’s earning $104-$128. Three days of mild, fine weather is boosting confidence in the sheep pens, helped along by

KING COUNTRY KING COUNTRY While numbers were low at the TE KUITI cattle sale on Friday 21st July, an increase in buying power from Manawatu saw good results posted, Carrfields auctioneer Carl White reported. A consignment of 80 R2 Hereford steers featured, with the top line, 419kg, and returning $3.31/kg, while 375-393kg fetched $3.34-$3.43/kg. The c/kg continued to climb for the fourth line, which at 350kg, returned $3.54/kg. Angus steers, 415kg, sold for $3.18/kg, with 300kg earning $3.06/kg, and Friesian, 333kg, $2.55/kg. In the bull pens, R2 crossbred, 400kg, sold well at $2.75/kg, with a small offering of heifers returning $2.75-$2.90/kg. Younger cattle numbers were limited, but quality and demand were right up there. R1 AngusHereford steers, 271-275kg, made $970-$975, and Hereford, 247kg, $870. Smaller crossbred lines returned $800-$850. Yarding size did not improve

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was a line of Angus-Friesian of very good breeding, and these made $105, though the section was topped by Hereford-Friesian, $150. WAIKATO With the sunshine came a strong contingent of local buyers at FRANKTON last Wednesday, with all classes of stock selling to good demand. R3 cattle numbers were low and prices steady. Steers, 576-582kg, returned $2.82-$2.85/kg, and Friesian heifers, 458-459kg, $2.52$2.69/kg. R2 beef steers, 453-463kg, held firm at $2.87-$2.95/kg, with beef heifers, 326-364kg, making $2.76$3.05/kg. Friesian R2 steers, 474-522kg, made $2.65-$2.74/kg, and their female counterparts, 443-492kg, $2.53-$2.72/kg. A highlight in the R1 steers was Angus 295kg, at $1130. AngusHereford, 144-158kg, made $750-$800, with Hereford-cross, 134-179kg, returning $740-$775. R1 Angus-Hereford heifers, 152157kg, managed $530-$675, and Hereford-cross, 139-172kg, $465$590.

for the sheep sale last Wednesday either, as the smallest yarding this season was put forward. This only made the job harder for buyers, and prices firmed. Store lambs filled one and a half rows, and were predominantly mixed sex. The first pen up made top dollar, with Coopworth lambs fetching $111, while other good types sold for $102-$104, and longer term lambs, $70-$80. Approximately 200 prime lambs met good demand, with heavy types making $130-$136.50, and medium $112-$119. Ewe numbers were low, with farmers now well through scanning. Heavy ewes sold for $121, medium $118, and lighter, $99, with 2-tooths returning $105-$109.50. POVERTY BAY POVERTY BAY Ewes easily outnumbered lambs at what was a small yarding at MATAWHERO. The few medium-to-good store ewe lambs made $100-$102, while the cut below were $74-$88. Male lambs were few and far between. A heavy line did make $116, but other medium lines were back at $87-$100.

adding pressure to local buyers. Heavy R3 Angus steers, 534586kg, made $3.03-$3.05/kg, though a lighter line of 476kg managed $3.27/kg. Local R2 Hereford steers were hotly contested by both local and Manawatu, and 445-497kg returned $3.25-$3.30/kg. The real money makers were the lighter traditional lines, with Angus, 368kg, achieving $3.60/ kg, and Hereford, 400kg, $3.46/ kg. Friesian bulls continued their strong run, with prices steady to firm at $3.13-$3.15/kg for 471479kg. The heifer pens featured a specially advertised consignment of capital stock Angus R2 and R1, on offer due to a farm sale. These were picked up for breeding, and R2, 428kg, sold for $3.12/kg, while the R1 lines achieved $915-$1110. Nearly all other lines of R2 heifers sold well over $3/kg, including Hereford-Friesian. R1 Angus steers, 216-296kg, returned $920-$1270, with a line of Angus-Hereford, 171kg, making $775, $4.53/kg. A total of 1600 sheep ventured to DANNEVIRKE last Thursday, as winter low levels continue. Just over 70% of the yarding were store lambs, and prices reflected continuing good demand. Cryptorchid lambs made up half the number, and sold for $71-$128, with the remainder ewe lambs at $75-$118, and a small mixed sex offering earning $63$118. In the prime pens, 400 ewes included a wide range of condition and size, though most were medium types. The top price was $118, with the average price sitting at $92, though the lightest line sold down to $30. Prime lamb numbers were very low, and all traded at $113-$125.

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COUNTIES COUNTIES There was plenty of outside buying support at TUAKAU last Thursday, Keith West of Carrfields Livestock reported. Prices for some R2 steers lifted slightly, and other classes in the 400-head yarding sold at similar rates to the previous week. The offering included a small entry of 30-month steers, 503580kg, which traded at $2.85$2.98/kg, $1470-$1660. Prices for some pens of R2 steers increased by about 4c/kg on the previous sale, with 423-490kg making $2.90-$3.05/kg, and 350-385kg earning $3.04-$3.13/kg. Good R1 steers, mostly Hereford-Friesian, 195-242kg, sold at $830-$900 and 155-185kg, $710-$775. Good R2 heifers, 420-448kg, traded at $2.74-$2.84/kg, and 371-375kg, $2.75-$2.79/kg. Good yearling heifers, 200-230kg, earned $760-$840, and 160-184kg, $630-$700. Some early weaner Hereford-Friesian heifers, 100140kg, sold well at $500-$590. Last Wednesday’s prime sale drew a yarding of 350-400head, and prices remained firm. Heavy prime beef steers sold at $2.93-$3.00/kg, medium $2.86$2.91/kg, and lighter $2.80-$2.85/ kg. Heavy prime beef heifers earned $2.79-$2.86/kg, and medium $2.76-$2.79/kg. Lighter, dairy-type heifers sold at $2.18$2.48/kg, and a small entry of beef cows $1.96-$2.29/kg. Heavy Friesian cows traded at $2.10$2.26/kg, medium $1.90-$2.04/kg, and lighter boners, $1.70-$1.88/ kg. A small offering of heavy beef bulls returned $2.94-$3.05/kg. Prime lambs continued to sell well at last Monday’s sheep sale. Heavy prime lambs in the small yarding made $146-$162, medium $124-$134, and lighter types $110$123. Store lamb prices ranged from $72 to $99, and the best of the prime ewes made $104-$139, with medium earning $84-$97.

531-591kg, made $2.18/kg-$2.38/ kg. R2 steers made a return after not showing at the previous sale. The better Angus and HerefordFriesian lines, 352- 456kg, were bought at $2.98-$3.10/kg. The R2 heifers firmed a touch, where Angus and Hereford-Friesian, 415- 487kg, were the best of the bunch at $2.89-$2.92/kg. The market and enough buying power to soak up the extra R1 cattle numbers with ease. The majority of the steers were Hereford-Friesian, with 228- 244kg selling at $855-$915, 184-208kg at $780-$850, and 140178kg making $645-$795. The money through the heifers was quite consistent on a per kilo basis. The bulk of the 160-223kg Hereford-Friesian and Herefordcross lines made $3.57- $3.85/kg. The sisters to last week’s Limousin steers were there too, making $1075 at 268kg. Demand for autumn-born Hereford- Friesian bull calves is quite strong at the moment, backed up by a single 102kg line selling for $575. Rangiuru is well into feeder calf sales now, with just over 200 on the books last Wednesday, with buyers present from Bay of Plenty and Gisborne. The better end of the Friesian bulls traded at $105-$145, compared to $80-$120 last year, with lighter types at $40-$90. Top Hereford-Friesian made $220$360, which was steady to firm on last year’s $225-$270. A feature in the heifer pens

Tho

541kg, fetched $2.86/kg. Plainer heifers, 436-438kg, managed just $2.52-$2.62/kg, while in-calf Friesian, 400-480kg, fetched $820$1130, for varying c/kg. The top boner cows sold well, with 512kg returning $2.38/kg, though lesser dairy lines made $1.54/kg. Bulls, 524kg, traded at $2.63/kg. Very few young cattle are being offered as many vendors are trying to get cattle through to spring when prices would be expected to rise. Very light R1 steers, 186kg, returned $615, with weaners bettering that at $605$750 for 134-200kg. The yarding also included very light crossbred R1 heifers, which at 274-292kg, made $805. Weaner heifers, 113120kg, finished up at $470-$640.

extra buyers from Manawatu and regular locals back in the market. On offer was 4700, with good numbers of both male and ewe lamb lines, including more from the Chatham Islands, though in smaller numbers. Heavy male lambs sold to $116-$125, with one line of cryptorchid reaching $140. Good types firmed to $110$122, with the lighter end earning $94-$106. A big chunk of the ewe lambs were very good types and matched the male prices at $111$124, with medium types at $99$117. Mixed sex mainly traded at $106-$113. The breeding ewes could have been sold twice over, and the first line of 300 Romney-Coopworth, scanned in lamb 181%, were split down the middle, with half making $153, and the remainder $152.50. Five-six year Romney, 188%, also sold well at $140.50. Store cattle throughput is starting to creep up as the light at the end of the winter tunnel looms, and both buyers and vendors alike gear up for the start of the ‘spring’ sales. Also of note was an increase in outside buying power, with Manawatu returning,

MANAWATU MANAWATU The RONGOTEA sale last Wednesday saw a lift in prices across all lines in the cattle pens, and a big increase in the number of feeder calves as spring calving moves into full swing, New Zealand Farmers Livestock agent Darryl Harwood reported. R2 Friesian steers, 385kg, returned $2.60/kg, with bulls, 480kg, making $2.62/kg. The heifer pens were busier, and the better Hereford-Friesian sold to $2.89/kg, with most other lines of beef and beef-Friesian, 375-435kg, making $2.48-$2.64/kg. Dairy, 303-426kg, fetched $2.23-$2.46/ kg. Demand was strong in the R1 pens, with Red Devon steers, 322kg, a highlight at $930, with heifers, 317kg, making $900. In the bull pens, Friesian, 137200kg, sold well at $660-$745, Hereford-Friesian, 124-225kg, $616-$730, and Angus-cross, 150kg, $610. Crossbred lines traded up to $750 also, while Jersey, 180-225kg, returned $505$550. A sizeable offering of feeder calves drew out a good number of buyers. Top Friesian bulls made $250-$280, medium $180-$220, and small, $80-$120. The best of the Hereford-Friesian achieved $250-$290, medium $185-$230, and small $120. The heifer pens featured Hereford-Friesian at $250-$300,

Markets

with medium types making $180-$220, and small $120-$260. Weaner pigs sold for $40-$127, ewes with lambs at foot $65, and mixed sex lambs, $45-$100. Numbers worked in vendors favour at the FEILDING prime cattle auction. Prices were generally regarded as a bit firmer throughout the offering, though there were not many lines that were directly comparable to last week. Better cows of all breeds were at or a little above the $2.00/kg mark, with the next cut around $1.90/kg. Prime steers were limited to a single line at $2.77/kg. Hereford heifers, 520kg, were $2.70/kg, while a 590kg Friesian line were $2.58/ kg. A lack of interest in prime lambs took the market for these back a peg. Some very heavy lambs were $170, but other heavy lines were $147-$170. Medium types were at $116-$145. A few store lambs made $50-$131, selling to a more stable value than the primes. The bulk of the prime ewes were medium quality, selling for slightly more than a week ago. The better ewes were $122-$128, with the mediums making $86-$118. Twotooths were anywhere between $81 and $112. A bitterly cold wind on Friday reminded everyone of the time of year and may just have kept a lid on sale prices overall. Scanned ewes lifted slightly, at last, for a small yarding, selling up to $152.50 for shorn 4 & 5 year Romney ewes. The heavy male store lambs offered plenty of weight and sold to a relatively steady market. Some woolly ram lambs sold for $160.50 but these lambs could have easily gone straight to the works. Other heavy male lambs sold for $140 plus but the market did ease slightly for the ewe lambs and for the lighter male lambs this week. Once again, the buyers seeking larger numbers came from the eastern side of the ranges with not so many locals operating. Ewes; SIL, $116-$152.50; Lambs; very heavy, $110-$160.50; heavy, $109.50$125,; medium, $107-$125.50; light, $81-$102.50. The prevailing farming conditions just took the edge off the cattle market, despite a reasonable entry of good traditional cattle and Friesian bulls. As common with most sales, the effect was felt by all qualities of cattle. With regard to steers however, highlights were 25 R3 Angus steers at $2020, $3.07/ kig, 25 R2 Angus and Angus-Hereford at $1785, $3.06/kg, and 16 R1 Angus steers at $1100, $4.11/kg. These were all top steers taking most attention. Bulls were steadier, 6 top R2 Friesian bulls made $1780, $3.15/kg and the R1 bulls featured less weight this week plus autumn born yearlings. Heifers felt the cold breeze the most with plenty of good traditional heifers not making $3.00/kg this week - $1345, $2.88/kg, for 10 Angus - and there were some reasonable lines of black R1’s. Steers; R3, 495-657kg, $1650-$2020, $3.07-$3.33/kg; R2, 280-583kg, $900$1785, $2.81-$3.45/kg; R1, 122-288kg, $405-$1105, $3.32-$4.76/kg; Bulls; R2, 370-565kg, $1245-$1780, $2.96-$3.48/kg; R1, 106-304kg, $430-$960, $3.44-$5.42/ kg; Heifers; R2&3, 300-467kg, $910$1345, $2.76-$3.16/kg; R1, 100-238kg, $365-$845, $2.97-$4.36/kg. CANTERBURY CANTERBURY A good frost kept the temperature well down undercover at CANTERBURY PARK last Tuesday, but prices certainly warmed up the complex. Sheep numbers were at typical winter levels, with very few store lambs to speak of, but more action in the prime pens. The store pens mainly consisted

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017 of mixed sex, and cents per kilogram climbed significantly as the weights dropped, with buyers working to per head budgets. Good mixed sex made $108-$116, with medium types similar at $104-$112. Lighter lines made $96-$100, while one small line of good ewe lambs sold for $109. There was little to no discount for Merino-cross, with all lines mediumgood and making $102-$109. Prime lamb numbers did increase, and with the usual buyers were all out in force, competition was heated. Heavy types made up 60% of the offering and returned $140-$171, with most of the rest fetching $110-$139. Ewe numbers also crept up slightly, but again volumes have come off peak levels and prices were firm. A good portion traded at $110-$148, while lightmedium ranged from $80-$108. Cattle are still proving hard to find for the prime sale, with just 77 on the books. Quality was consistently good through the steer and heifer pens, and all lines sold well relative to schedule. Heifers sold at similar levels to the steers, which was a reflection of their condition. Very heavy steer numbers were limited, with just two lines over 700kg, and only one at 730kg managed to hit the $3/kg mark. Most other beef lines, 565kg and over, traded at $2.83-$2.96/ kg, with dairy and dairy-cross earning $2.53-$2.73/kg. Heifers were the highlight, with 555-635kg trading at $2.84-$2.89/kg, and 490-543kg, $2.80-$2.89/kg, while dairy-cross and lighter beef improved to $2.73-$2.84/kg. Cow numbers were very limited, with the best beef lines making $2.24-$2.28/ kg. The store lamb market was the highlight, with all selling to keen interest from the alley. Ram lambs made $97$113, with those carded as males earning $92-$104. The ewe lamb pens included some top quality lines at $112-$118, with the remainder earning $72-$97. Most mixed sex sold for $100-$122. Two lines of fresh 2-tooths, run with a Suffolk-Texel ram, sold well with the top line returning $137, and the second cut, $130. Just over 1000 prime lambs eased $2$3 on the previous week’s strong market. Most lines traded at $120-$168, with nothing of significance selling under $110. Prime ewe numbers dropped on last week, and the market held. Condition through most of the pens was very good, and that saw the bulk trade at $101-$157, with the median price steady at $124. After the previous week’s big yarding, cattle number dropped to just 65 total, most of which were prime and boner. Angus and Hereford steers, 580621kg, returned $2.91-$2.94/kg, to sell on a steady market, though two high yielding Hereford-cross, 643kg, managed $3.10/kg. Hereford-Friesian, 490kg, made $2.83/kg. The prime heifers were mainly beef-dairy which was reflected in the prices, though the stand out was Hereford-Friesian, 500kg, $2.81/kg. The best of the boner heifers were Friesian, 458-560kg, $2.66-$2.70/kg, with the remainder variable depending on quality and condition. Friesian cows sold to strong demand, with top lines making $1.91-$2.00/kg, and a second cut, $1.85/ kg. Store numbers were very low, with the main feature being a line of 15-month mixed sex Belted Galloway, which at 258kg, fetched $750, $2.91/ kg. Uncannily, this weight and price was repeated for a line of two R1 Angus heifers. SOUTH CANTERBURY SOUTH CANTERBURY The weather gods were much kinder

to those around South Canterbury on TEMUKA sale day, putting on a relatively mild day last Monday. Sheep numbers were on the low side, and while cattle numbers were also winter-low, there was a noted increase in dairy cow numbers. Pitt Island lambs filled most store pens, with 14 of the 18 main lines off the boat. Most headed to Mid-Canterbury, with good quality blackface making top dollar at $143. The better end of the mixed sex traded at $120-$132, with very woolly lines right up to the slipe prices, and no lines under $100 through all the big pens. Good ewe lambs made $127-$135, and medium-good, $104-$116, while a small male offering mainly traded at $130$138. The strength continued into the prime lamb pens, where 1000 were offered. Most lambs traded at $120-$168, though some impressive lines managed $175$183. Ewe numbers continue to hover below last year and the 5-year average, but that is only making the job harder for buyers. Light ewes traded at $80-$109, with better types returning $110-$138. Friesian cows led the charge numbers-wise in the rostrum, though a consignment of Angus also bolstered tallies, and prices strengthened. Angus, 589-668kg, sold in the $2.25-$2.28/ kg range, while Friesian, 525-563kg, returned $2.00-$2.10/kg, and better yielding types with more weight, $2.09$2.20/kg. The lighter end of the Friesian cows also firmed, with good results all round in these pens. The heifer pens were a mix of mainly Angus and Friesian, and there was a softer tone to the market for both. The best of the beef heifers made $2.70$2.78/kg, and Hereford-Friesian, 485675kg, $2.75-$2.82/kg. Friesian heifers sold at similar levels to the boner cows, trading for $2.00-$2.10/ kg, though a few better types managed $2.15-$2.20/kg. Numbers were limited across the rest of the yarding, with beef steers making $2.81-$2.84/kg, and Hereford-Friesian, $2.75-$2.79/kg. OTAGO OTAGO Ominous skies loomed over the BALCLUTHA sale yards last Wednesday, though the sale was completed in relatively good conditions. Prime ewes featured with scanned empty lines from the lower country still coming in, while high country properties will start scanning from now. A small store lamb sale was well followed, with prices steady. Top lines made $100-$108, medium $80-$95. Very few light types were offered, with these selling well at $75. The regular buyers kept each other honest in the prime lamb pens, with top lines selling to $140-$160, medium $128$135, and lighter, $107-$117. Most ewes offered were in their jackets, and like the lambs this market was well contested by the regular buyers. Heavy types made $110-$130, medium $85-$100, and lighter $60-$75. SOUTHLAND SOUTHLAND Just for something different, CHARLTON held its 60th Annual dog sale last Wednesday, with a fantastic selection of heading dogs and huntaway’s on offer. The sale was topped by a well-bred and well-trained two and a half year old heading dog, which sold for $6400, while most other heading dogs ranged from $2000-$3000, and better types up to $4500. A smaller offering of huntaways was equally well received, with most selling for $1500-$4300.

Dairy livestock market taking account of beef opportunities through calving Adverse weather around the country is not seriously holding dairy farmers back, though some are wary of the conditions heading into calving. PGG Wrightson Dairy Livestock Manager Paul Edwards says excellent weather through autumn and early winter gave farmers a solid base to take them through to spring. “Winter is definitely here now. Right across New Zealand all farming districts are feeling the brunt of the wet weather. However, there is plenty of winter feed, particularly in the South Island, though some concern has arisen about how much water is around, which could have a detrimental impact,” he says. North Island feeder calf sales are already under way, and Paul Edwards reports strong demand for good four-day-old Friesian feeder calves and beef cross types. “Prices paid for these depend on the breed and quality of the calf, though up to $250 per head is realistic as the season commences in the north. When calving begins further south, similar prices are likely. As the supply of stock increases, values are likely to ease, though demand for feeder calves should continue,” he says. Dairy farmers are seizing opportunities presented by the beef industry, he says. “Acquiring four-day-old calves and taking them through to 100 kilograms is an excellent entry point for those diversifying into the strong beef sector, which is influencing decisions ahead of mating. “Export returns indicate the value of some classes is set to significantly exceed last season. Although calving is only just upon us, farmers are thinking about continuing the cycle next season, and taking advantage of the excellent returns indicated for beef. Utilising well selected beef bulls over a dairy herd can deliver many benefits, including increased profit and production. Using quality recorded, high genetic merit Angus and Hereford bulls, instead of unrecorded, inferior bulls, is an option that many farmers are considering. PGG Wrightson’s ‘Defer-ABull’ initiative provides a deferred payment option for farmers to invest in these higher value bulls, or similarly can be used to purchase more traditional dairy service bulls,” says Paul Edwards. Farmers should also review the new regulations relating to bobby calves. “We have received several enquiries about new requirements around the handling and transportation of bobby calves. Everyone needs to be aware of these. Specific information is on the MPI website,” he says.

Secure your bull team with no upfront cost Talk to us about a Defer-A-Bull purchase agreement. We’ll help you secure your bull team early with a deferred payment date that works best for you.

Get in touch: 0800 10 22 76 www.pggwrightson.co.nz Helping grow the country

Markets

32 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 31, 2017 NI SLAUGHTER STEER

SI SLAUGHTER STEER

NI SLAUGHTER COW

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R2 HEREFORD STEERS, 445495KG, AT STORTFORD LODGE

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high lights

Japan beef tariffs expected Alan Williams alan.williams@nzx.com

EW Zealand beef exporters are facing 50% tariffs on frozen exports to Japan over the next eight months. Suppliers in this country have been caught in the reaction to big shipments from Australia, and especially the United States this year, so that total volumes have reached a trigger point at which the Japanese government has decided it needs to protect domestic farmers. The change was signalled last week, with the expectation it would be confirmed when official Japan trade statistics were released last Friday. The standard tariff on imports from NZ is 38.5% – the 50% figure is also being placed on US frozen shipments. Australia has a free-trade agreement with Japan, with a tariff rate of about 27%, and is exempted from the higher figure. Reporting on the tariff trigger, allowed under World Trade Organisation rules, the Nikkei Asia Review said it would be met with bewilderment and concern by businesses such as restaurants

in Japan, and cause a backlash in the US. Chilled beef shipments aren’t included in the increase, which is expected to be effective until March 31. In the latest year, Australia provided 53% of Japan beef imports, the US 39%, and NZ only 3%. NZ had already lost market share to Australia since their FTA came in in early 2015, with volumes having fallen from 2014 levels, the chief executive of the Meat Industry Association, Tim Ritchie said. “The playing field is already very tilted – it’s hard enough for NZ.” Anzco Foods chief executive Peter Conley thought the latest move could push NZ companies to work on putting more chilled product into Japan. Only 23% of NZ exports to Japan are in chilled form, but it is our biggest chilled market, Ritchie said. The risk was that if US exporters refocused on to large volumes of chilled product, then Japan might trigger the higher tariff on that as well, hurting NZ further. Anzco is about 82%-owned by Japanese interests, which helps with market access, and is the biggest NZ beef exporter to Japan. It puts in large volumes of chilled product – from its Ashburton feedlot,

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Top store ewe lambs at Coalgate

R1 Hereford-Friesian steers, 180-210kg, at Rangiuru

Revised milk price rests on demand

CHILLY REACTION: Anzco Foods is about 82%-owned by Japanese interests, and is the biggest NZ beef exporter to Japan.

and for its retail restaurants in Japan – but doesn’t disclose whether these are frozen volumes. The main effect of the tariff increase would be felt in the Japan market itself, Conley said. “Exporters will pass the tariff increase on to the customer, as we look at a market return net of tariff. If Japan does not meet that return, then the product will go somewhere else.” AgriHQ analyst Rachel Agnew said total beef imports into Japan for the five months to the end of May were 16% up on a year earlier, with US exports up 34% – driven by a big increase in production

$112-$118

– and Australian volumes up 12%. Most US beef is exported chilled, but the frozen volumes for the six months to the end of June were 90,000 tonnes, compared to NZ’s 18,000t. Most of Australia’s exports were also in frozen form, exempt from the tariff increase. The new tariff on US beef meant most of it would have to find new markets, Agnew said. This would include the home US market, and if this was put under pressure from oversupply there would be an effect on NZ’s manufacturing beef trade there.

THE milk production season is just getting under way and already Fonterra has revised up its milk price forecast to $6.75/ kg milksolids (MS). Markets have firmed a little in the past Susan Kilsby couple of months since Fonterra AgriHQ Analyst first forecast a milk price for the 2017-18 season, but the announcement still came as a surprise. Current dairy commodity prices support an upwards revision of the milk price – the AgriHQ milk price currently sits at $6.68/kg MS. But it’s very early in the dairy season, and with the New Zealand dollar rapidly rising, it’s a bold move by the co-op to lift its milk price. In the past couple of months milkfat prices have shot up to record levels, but there has been little movement in milk powder prices. Skim milk powder prices are stuck in the doldrums because of high stocks in Europe overhanging the market. Whole milk powder (WMP) prices have traded in a narrow band slightly above US$3000/tonne for the past four months. The strength of the milkfat market does provide some support for WMP because the high butter price will encourage more milk into butter production, reducing the volume available for WMP. Global milk supply is expected to grow in the coming months, so we’ll need to see equivalent growth in demand for prices to be sustained at the level required for Fonterra to deliver its revised milk price. China may deliver this additional demand since its own milk supply isn’t growing, and therefore it will need to look to the international markets to fill any additional shortfall in supply. The NZX Dairy Derivatives market responded to Fonterra’s announcement with the milk price futures contract for the current season traded up to $6.70/kg MS by the end of last Thursday. susan.kilsby@nzx.com

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