3 Big bull, big price Vol 16 No 26, July 3, 2017
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Wool pile grows We have wool which has all the good things people want but there is no demand for it.
Neal Wallace neal.wallace@nzx.com
A
COLLAPSE in the market for some types of crossbred wool has forced the stockpiling of thousands of bales amid warnings it could be another year before the market improves. For some types of wool, farmers have been told more has been put in storage than has sold in the last nine months. PGG Wrightson wool manager Cedric Bayly was reluctant to reveal figures but said the firm was storing three times the normal volume because of the drying up of demand from China for predominantly second shear 38 to 40 micron crossbred wool that was 50mm to 75mm in length. Bayly said the wool was mostly used for carpet yarn for which demand had dried up but the market remained relatively strong for finer crossbred and mid micron wool. New Zealand Wool Services International chief executive John Dawson said in the year to the end of April, wool exports to China were 40% lower than the previous year. AgriHQ data last week quoted 39 micron wool at $3.25 a kilogram compared to $5.80 a year ago, 35 micron wool at $3.35 compared to $5.85 and 29 micron at $6.65 compared to $7.85. Bayly said wool was being stored on farms and with brokers, merchants and scours but he warned that if it got damp it would
Simon Englebrecht Farmer
STOCKPILE: Unsold wool is mounting up in stores at brokers, merchants and scours and on farms, PGG Wrightson wool manager Cedric Bayly says. Photo: John Cowpland
lose its colour and further erode in value. The shift to hogget then full wool shearing in the coming months would help ease pressure on the market but Bayly said it was vital the stockpiled wool was carefully managed onto the market so prices were not compromised. “China will come back as they get rid of their yarn stocks,” he said. The speed with which prices fell took many by surprise but Dawson said a consequence of the
low price could be to encourage yarn producers to use more NZ crossbred wool. He recently visited China and hoped they might start blending the coarser fibre with higherpriced finer wool or use it in other fabrics. Even if that happened there would be a time lag before it helped the price, Dawson said. Current prices were comparable with 2008 when the global financial crisis hit and it could be the middle of next year before prices and demand improved.
“We always try to be positive but as I sit here today there is nothing that I can really seize upon that in the short term is going to change.” Dawson said it was fortunate sheep farmers had a relatively good year from meat. Beef + Lamb NZ said wool made up about 9% of farm income. Simon Englebrecht who farms at Stoneburn in east Otago described wool prices and demand as hugely disappointing and said it showed it needed to be more aggressively marketed.
“Everyone wants a sustainable world. I do water quality testing, I use Overseer and I care for welfare of my animals and here we have wool which has all the good things people want but there is no demand for it.” South Otago’s John Bennett who farms at Te Houka hadn’t sold any ewe wool this year because prices were half last year’s return, which he described as an insult. He reduced autumn fertiliser to compensate for the lower income in the hope prices would lift over winter but they were getting worse. “It’s lucky the season has been friendly.” He agreed wool has been marketed poorly, saying the sector had not had any outside help but neither had it helped itself. “If wool had been going good, there would be a lot less dairy farms.” Bennett said he sold hogget wool for $3.70 a kilogram when he started farming in 1997 and it took until two seasons ago for that price to be bettered.
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NEWS
NEW THINKING
13 Genetics team cracks
manuka code
60 Wetter than
In a year’s time Plant and Food Research science group leader Dr David Chagne and fellow researchers hope to be looking at a map on their computers that highlights the varieties of manuka spread across New Zealand.
40
OPINION
4 Young Farmers compete for
title
16 Alternative View Alan Emerson wants politicians to show some spine.
History could be made later this week when New Zealand’s top young farmers front up to contest the 2017 FMG Young Farmer of the Year.
Cartoon ���������������������������������������������������������������������� 14
5 Kiwifruit boom to help
Pulpit ������������������������������������������������������������������������� 15
Maori landowners and workers are sitting on a goldmine of potential for greater earnings and income from kiwifruit growth between now and 2030.
11 Book asks can we feed
world?
Massey University’s second Land and Food Annual asks Can New Zealand Feed the World Sustainably?
Bull sales bring $3.75m boost ������������������������������������ 3
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From the Ridge ��������������������������������������������������������� 17 Meaty Matters ����������������������������������������������������������� 17
REGULARS Real Estate ����������������������������������������������� 18-24 Employment �������������������������������������������� 25-26 Classifieds ������������������������������������������������ 26-27 Livestock ������������������������������������������������������� 27
MARKETS
No choice on debt repayment ����������������������������������� 7
Map reading tips This map shows the difference or anomaly in soil moisture level at the date shown compared to the average, generated from more than 30 years of records held by NIWA.
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Dairy industry wants case against Canada ��������������� 8 Top arable farmers win new awards ����������������������� 10 Book asks can we feed world? ����������������������������������11
On July 8 the rising trajectory of Jason Te Brake’s professional life will split between Stanford University in California and the FMG Young Farmer Contest grand final in Palmerston North and Feilding.
10
Alternative View �������������������������������������������������������� 16
Kiwifruit boom to help economy ������������������������������ 5
12 Belief vital to nation’s future
20
Letters ������������������������������������������������������������������������ 14
Young Farmers compete for title ������������������������������� 4
NEWSMAKER
normal (mm)
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Editorial ��������������������������������������������������������������������� 14
economy
Soil Moisture Anomaly (mm) at 9am June 29, 2017
32 Trade flux creates doubt A trade deal giving United States beef exporters access to China could have long-term repercussions for New Zealand.
Market Snapshot ����������������������������������������� 28
Contact us Editor: Bryan Gibson Twitter: farmersweeklynz Email: nzfarmersweekly@nzx.com Free phone: 0800 85 25 80 DDI: 06 323 1519
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News
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
3
Bull sales bring $3.75m boost Hugh Stringleman hugh.stringleman@nzx.com RANGATIRA Angus stud made the top prices during East Coast bull sales week for what agents and buyers said was a magnificent line-up of more than 50 bulls. Top price of $50,000 was paid by Kevin and Megan Friel of Mt Mable Angus, Woodville, for Rangatira 15-32, now to be called Mack, sired by Kaharau Cobra 10-546. Charles and Susie Dowding, Rangatira Stud, at Coventry Station, Muriwai, also received $47,000 twice, for lots 2 and 13. Rangatira Taurus 15-1 was bought by Justin and Meg King, Brookwood Station, Takapau, and Rangatira 15-131 was bought by the Borck family, Springdale Angus, Taumarunui. Lot 3, Rangatira 15-21, was bought by the Bayly family at Cricklewood Stud, Wairoa, for $38,000. The full Rangatira offering of 54 bulls sold for an average of $12,740, which was more than $3000 better than last year. The Dowdings also hold the onfarm sale record price of $100,000 set in 2015 with Rangatira 13-38. Another Bayly-owned stud, Tangihau, at Rere, managed by Dean McHardy, topped the Gisborne Combined Breeders sale at Matawhero, with $42,000 paid by Kaharau Angus. Tangihau also received $40,000 twice, paid by Cricklewood and a combined bid from Turiroa Angus and Whenuapapa Angus. The average for Tangihau was an extraordinary $15,475 for 20 bulls sold, which was nearly $6000 above last year. The other breeders at the combined sale were Stephen and Jenny Herries, Alpine Angus, Gisborne, who sold 17 from 17 for an average $7000; Grant and Sue Crawshaw, Kenhardt Angus, Nuhaka, who
SALE DAY: Rangatira 15-32, purchased for this season’s record price of $50,000 by Mt Mable Angus, now has a new name, Rangatira Mack.
The average for Tangihau was an extraordinary $15,475 for 20 bulls sold, which was nearly $6000 above last year.
sold 22 for $7136 average; and Cricklewood, which sold five at $8000 average. Earlier on the same day Andrew and Rick Powdrell, Turiroa Angus, Wairoa, sold 44 bulls for an average of $8181. The top price was $31,000, paid jointly by Brackenfield and Grampians studs, both in the South Island, while $18,000
was paid for a Turiroa bull by Rangatira. Hamish and Angela Williams, Turihaua Angus, north of Gisborne, had a full clearance of 69 bulls for an average of $10,162, $2000 up on last year. They also sold seven two-yearold in-calf stud heifers to newer breeders for the excellent average price of $6071, PGG Wrightson livestock agent Steve Goldsby said. In the bulls, top price was $21,000 for Turihaua L81 paid by the Scott family, Mangapapa Angus, Oparau, followed by $20,000 paid by the MacFarlanes, Waiterenui Angus, Hastings. Whangara Angus and NZ Angus Association president Patrick Lane sold 33 bulls for an average of $10,300.
Top price was $18,000 paid for a bull sold to combined studs. The 60th sale of Kaharau Angus, at Muriwai, under studmaster Colin Williams and daughter Penny Hoogerbrug, had a complete clearance of 51 bulls at an average of $8288. Top price was $16,000 paid by K and P Shea Brothers, Raglan. Quailburn Downs, Otago, bought for $15,000, and R J Quin, Kaikohe, paid $12,000 for a Kaharau bull. Melville and Nicki Story, at Ratanui Angus, Tologa Bay, began the East Coast week with a sale at Matawhero where all 30 bulls sold for an average of $9333. Top price of $16,000 was paid by the Willis Family Trust, Matamata. The fourth and last day of the week was devoted to Herefords.
Papuni Station, Ruakituri, Hawke’s Bay, paid the top price at both sales. The Reeves family’s Mokairau Stud, Gisborne, sold 26 at $6538 average and a top of $13,000. The Humphreys family’s Wilencote Stud sold 18 at $7238 average with a top of $15,500. East Coast bull sales registered more than $3.75 million in turnover, a big boost to the regional economy. The final Angus bull sale of the South Island section was at David Giddings’ Meadowslea Stud, Fairlie, when 63 of 68 sold for an average of $8600. Top price of $20,000 was paid by Merchiston Angus, Feilding, and another four bulls went to the North Island, PGG Wrightson agent Greg Uren said.
My holiday starts the day I set stock to lamb “We have consistently produced 150% survival to sale for the last ten years, with at least half sold prime, and the balance sold store, due to our very short season. The ewes are shorn and set stocked, and I leave them to it. We have a very simple system where all ewes, including two tooths, are run in one mob from February onwards. Any light ewes are mated to a terminal, but that’s only about sixty two tooths and a few mixed age ewes”. Dougal and Mary Cottier run 2200 ewes on 980ha near Albury, South Canterbury. The property runs from 480 to 850 metres above sea level, and consists of mainly tussock hill paddocks.
“The Wairere sheep are just easy to farm”.
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4
News
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Young farmers to compete for title Annette Scott annette.scott@nzx.com HISTORY could be made later this week when New Zealand’s top young farmers front up to contest the 2017 FMG Young Farmer of the Year. If the only female contestant, Lisa Kendall from Northland, among the seven finalists manages to pull off the win she will become the first woman in the 49-year history of the event to take the title. The Grand Final will be contested from July 6 to 8 in Manawatu. In her first attempt the 24-yearold from Karaka took her regional final by storm, convincingly beating experienced competition to win the right to represent the Northern region. The talented ballet dancer, who grew up on a lifestyle block then swapped her ballet shoes for farm boots, owns and operates agricultural support service company Nurture Farming.
She was picked as a hot favourite but there were six equally determined young men vying for the honour. Representing Otago-Southland, Milton sheep and beef farmer Nigel Woodward would represent one of the strongest contest regions in the country. The 28-year-old with an agricultural science degree worked at Midlands Seeds in Ashburton for five years before returning to the family farm. From the region producing the most winners, Arjan Van’t Klooster could make Aorangi the second to have a three-peat of winners behind Otago-Southland that achieved the feat in 2005. The 25-year-old dairy farmer from Glenavy, who started his journey to young farmers as a Teen-Ag competitor, was rated a big chance after dominating his regional final. From Tasman, Andrew Wiffen was a contest veteran stepping up to the final with experience in both sheep and dairy farming.
The 29-year-old former Marlborough lad was now a West Coaster milking on a 200-cow family dairy farm. The pride of the East Coast lay with 27-year-old Hamish Best, tipped as a chance to be the first Coaster to take home the title in a decade. The Massey University 2011 student of the year, Best traded his grassroots in sheep and beef farming to now work for PGG Wrightson as a technical representative. With the home town advantage James Lawn representing Taranaki-Manawatu, was expected to have a psychological edge as he fronted his first final. A veteran traveller, Lawn has worked on a grain farm in Australia and also had experience on an arable farm in England. He won his regional final just four weeks after returning to NZ. ANZ rural banking graduate, before his roots called him back to farming, Waikato-Bay of Plenty representative Richard French was
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another newcomer to the final. From the family farm in Wairarapa but in the contest as a shepherd from Rotorua, French proved his previous experience as a top-level sportsman was an advantage in the regional final. The Grand Final would, for the first time, be available on multiple online platforms in a move away from screening on television. Since the early 1980s the contest had been screened on television but this year organisers wanted to embrace the growing online audience and move most of the content online, chairman Dean Rabbidge said. The NZYF YouTube channel and the FMG Young Farmer of the Year Facebook page would live
stream several key events. “We see this as an incredibly positive move as the contest looks to develop further and believe we will be able to showcase more than ever exactly how prestigious the contest is in terms of rural NZ,” Rabbidge said. There would still be a television screening of the final through pay channel Country TV. Another first would be a transTasman ag battle between NZ and Australia. It would pit champion Athol New against Australian winner Marty McConnon in what promised to a keenly fought event stretching them to the limits of endurance in physical challenges in Feilding on Friday.
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TECHNOLOGY will be the biggest challenge for modern farming and its speed of change will be measured in months rather than decades, KPMG financial consultant Brent Love says. So the arable industry must get “super fit” and tell its own story, he told the Foundation for Arable Research conference at Lincoln. “This isn’t being really good at one aspect of the business but good across all parts of the business.” The parts were the management of physical resources to produce food, business governance and the impact the business had on the wider community. “That’s the collaborative beast and the challenge for you is to be across the business rather than a specialist,” he told farmers. Technology had continued to change how farmers managed physical resources. “This is nothing new and as New Zealand farmers you are actually really good at utilising and reforming that technology to achieve better farm efficiency and optimise resources.” But while technology was often costly, the timing was no longer a choice. The use of drones, precision agriculture and robotics was changing the pace of farming, how labour was used and the scale of operations individual farmers could manage. “We must be more open to
these changes and be faster on the uptake as our competitors are already on the move.” Data was the new DNA of the business and governance was an ever-changing space of how data was collected and used to change and evolve systems onfarm and beyond. And while the NZ Story was being told by meat processors that was not the answer for the arable industry. “Arable farmers need to tell their own story. “The industry is one of the most exciting spaces to be right now as people move away from protein to eating cereal.” Now was the best-ever chance for arable to tell its story and tell it from the farm, he said. “Being able to tell a customer that the bread they are eating came from a farm in Canterbury, had minimal impact on the environment, is healthy to consume and contributed positively to its surrounding community – I believe will potentially bring a premium in a world that will soon be dominated by other potentially cheaper food options such as synthetic proteins. “The speed of change is fast and unfortunately there isn’t choice, you have to keep up,” Love said. “The future isn’t five years away – it’s here now so time to play. “Be brave with your investment in technology and tell your own story.”
News
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Kiwifruit boom to help economy Richard Rennie richard.rennie@nzx.com MAORI landowners and workers are sitting on a goldmine of potential for greater earnings and income from kiwifruit growth between now and 2030. A report for Zespri by Waikato University business professor Frank Scrimgeour painted a high growth picture for the sector with estimates an extra 29,000 full time equivalent jobs would be generated by it over the next 13 years. The sector’s total contribution to GDP was expected to almost triple from today’s $2.6 billion to $6.14b in 2030. The Bay of Plenty region claimed the country’s highest proportion of Maori, accounting for 25% of the population against an average of 15% and also had some of the largest areas of Maori-owned land suitable for kiwifruit production. The report estimated Maori grower revenue would lift at the same rate as the entire sector, from its present $270 million a year to $638m a year. Maori wages and salaries earned in the sector in Bay of Plenty were set to double from $22m to $52m a year in that time. As a group Maori earned $100 a week less than the rest of the region’s wage and salary earners and 30% of income was government-sourced. Of the 29,000 jobs created, 14,329 were in Bay of Plenty and 500 in Northland with the rest spread largely throughout other North Island growing regions. Maori-owned kiwifruit company Te Awanui Hukapak chief executive TeHoripo Karaitiana said much of the projected growth was being driven by the popular SunGold variety. Te Awanui Hukapak was a wholly Maori-owned kiwfruit business with a 17% stake in post-harvest processor Seeka. “Compared to, say, dairy farming kiwifruit is offering a very good rate of return,” Karaitiana said. “Those areas of the eastern Bay of Plenty and the East CoastWairoa districts have land that has been identified as very suitable
I am used to people telling me tall stories and when I crunch the numbers the good news is not usually so good. Professor Frank Scrimgeour Waikato University
BETTER: Compared to options like dairy, kiwifruit offers a very good rate of return, Te Awanui Hukapak chief executive TeHoripo Karaitiana says.
Kiwifruit’s future – the numbers • Generates 10,760 jobs in Bay of Plenty, 2475 Maori jobs. • Another 29,000 jobs to be created nationally by 2030. • SunGold variety driving 75% of projected growth. • Contribution to GDP is $2.6 billion, projected to lift to $6.14b in 2030. • Contribution to Bay of Plenty GDP expected to lift from $867 million today to $2b by 2030.
for early-start, high value SunGold crops.” In mid-June the Maori kiwifruit growers’ forum was launched as an advocate group for Maori growers, partnering with Te Puni Kokiri and Zespri. At the time Zespri chief executive Lain Jager said the goal was to lift Maori growers from their present 8% share of Zespri production to 20%. The report estimated SunGold fruit would deliver an extra $300m
in revenue every year to iwi across New Zealand. The latest Maori kiwifruit investment in the region was a $30m investment programme to establish 10 kiwifruit orchards in Bay of Plenty and Gisborne. It was the single largest kiwifruit investment ever made on Maori land on 90ha of semi-productive greenfield sites. But Karaitiana cautioned skill and labour needs would be a challenge for a sector already experiencing pressure during seasonal peaks. “We have developed a Kiwi Leaders programme focused on Maori and need a concerted effort to build on that.” He maintained there was a need for central government input, given the Government’s enthusiasm to see the sector do well for regions needing growth. Scrimgeour said he was receiving anecdotal feedback that those prospects for Maori landowners were already starting to come to fruition. He had been pleasantly surprised by the highly positive results of this report. “As an economist I am used to
people telling me tall stories and when I crunch the numbers the good news is not usually so good.” He felt the industry was in a better place than it was 20 years ago when it was wholly reliant on one crop type. Without the SunGold variety growth would only be half that projected. “This showed to me the importance of working on genetic improvements and taking a longterm view, given you never know what is around the corner.” NZ Kiwifruit Growers chief executive Nikki Johnson said the report gave the industry a case to take to the Government should it seek an increase in the numbers of migrant workers permitted to come to NZ under the Recognised Seasonal Employers scheme. While admitting being a bit nervous about the industry’s reliance on SunGold to drive the growth, she said Zespri appeared to be taking an acceptably cautious approach over growth in demand. Zespri innovation manager Carol Ward said she was confident the post-harvest sector was gearing up effectively to cope with the ever-increasing crop flows and technology was helping play a role in easing labour constraints. “Technology like the optical systems used for grading combines the latest equipment with very experienced grading staff to lift productivity.” Plant researchers were also continuing to work hard at developing a sweeter, easier ripening Green fruit and work continued apace on a commercially viable Red variety, due for release in two years.
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Date set for court action Richard Rennie richard.rennie@nzx.com KIWIFRUIT growers taking the Government to court over claimed biosecurity failures leading to the 2010 Psa incursion are confident they have a strong case to put before the High Court. August 7 has been set as the date to start what promised to be a protracted case. The Government denies the Ministry for Primary Industries (then known as Biosecurity New Zealand) was negligent in enabling the Psa incursion to occur. Group spokesman John Cameron said the 212 growers represented were individuals adversely affected by the Psa outbreak while all those in the industry today continued to grapple with the disease’s presence. If the claim succeeded it would be a legal landmark. “We have DNA evidence the strain of Psa that led to the outbreak in NZ matches almost identically Psa from Shaanxi Province,” he said. There had been claims Psa came in through imported pollen distributed through the Te Puke district. A second part of the proceedings, should culpability be proved, was to seek compensation for growers from the Government. The case was expected to span 13 weeks in the High Court at Wellington.
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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
7
No choice on debt repayment Annette Scott annette.scott@nzx.com MANAGING a business in a high payout environment was almost more difficult than managing through a trough. That was the message “three wise heads” gave a room full of dairy farmers at the South Island Dairy Event (SIDE) at Lincoln University. Canterbury farm consultant Jeremy Savage of Macfarlane Rural Business, FarmWise dairy consultant Brent Boyce from Marlborough-Nelson and Canterbury BDO financial expert Frazer Weir set about defining resilience and sustainability and how to manage volatility following the recession. Resilience was about getting through the peaks and troughs, particularly the troughs, and bouncing back, Weir said. “We are now into another cycle. The payout’s going up so how do we bounce back to minimise the down times and cash losses. “If we have lost $500,000 in the past two to three years, and most of us have, how do you get back to where you were before? “Suddenly you have got a $500,000 surplus but it’s not a surplus until you take into account the $500,000 lost and that’s what is often forgotten,” Weir said. “How to manage business in a high-payout environment is almost more difficult than managing through a trough,” he said. Savage said a lot had been learnt from the recession. “We have learnt what we can go without and we have to take those lessons from the down times and capitalise on the upside and be better businesses for that. “Volatility keeps a lean and mean machine and resilience is
WAGE RISE: Frazer Weir told dairy farmers they are not paying staff enough. Photo: Annette Scott
about what we can manage now,” Savage said. Farm work expenses versus payout had got extremely out of whack and really good savings applied to management techniques derived from proactive solutions would cut the right costs and avoid spending the unnecessary dollar, he said. Cashflow forecasts were critical and should be done for the start of the season. “We need to see more discipline now,” Weir said. “What’s the culture and strategy for the next 12 months and what are the fundamental blocks that make it work – plan early and stick to it.” Boyce cautioned against cutting too many costs and leaving production on the floor. “Volatility is here and it’s not going to go away but how we approach that and how we bounce will be all about agility from now on. “How we manage the risk and how we manage the up and down
bounce will determine the level of resilience we can build in our businesses,” Boyce said. Making effective decisions was determined by the goals and objectives clearly set out in a farm policy document.
How to manage business in a highpayout environment is almost more difficult than managing through a trough. Frazer Weir BDO “That’s having a sense of purpose of why you are farming and what ticks your boxes,” Savage said. “If production and shiny gear is the most important then so be it but it’s the key things focusing
INSIGHT: Jeremy Savage said farmers must know why they are farming and what ticks their boxes. Photo: Annette Scott
around the day to day farm working expenses that will make effective decisions easier. “Does it make the boat go faster, is the cost justified?” Capital gain would continue to be debt-driven and it was not all about the milk price. The interest line and the stock income line were very significant to the equation, Savage said. “We need a good, strong beef industry going forward,” he said. There were a lot of dynamics around what was a sustainable milk price but it was considered $6 would hold asset returns up. “What is sustainable will be different in each business – you have got to get robust, get debt levels down and then be agile,” Boyce said. The choice between principle repayment and debt payment had been taken away over the past three years and the Reserve Bank was not happy about what had gone into rural lending and it had made that clear to banks now, Weir said.
“The choice is gone – that message is loud and clear from the bank manager and if it’s not then you would have to question is he asleep at the wheel?” Weir said staff were the most important asset in the business and he urged farmers to recognise their top staff. “You are not going to like what I’m going to say but I’m going to say it anyway – you are not paying enough,” Weir said. “Look at the top guys in your business and pay appropriately, not everyone is going to be worth $120k but those that are will be your wealth creation, so look after them and pay them appropriately,” he said. Savage said the bottom line of managing volatility was knowing where a business was going and how it was getting there. He strongly encouraged farmers to have a policy. “Make sure it works for your business and make sure you continue with that policy no matter what happens.”
Dairy profit plan is simple Annette Scott annette.scott@nzx.com OVER the past three years farmers have focused on improving onfarm cost structures, tightening their belts to combat low milk prices. While that was an appropriate short-term reaction, it was now time to move into a secondary phase, FarmWise dairy consultant Debbie Kinder told farmers at the South Island Dairy Event (SIDE). While there was no set recipe there was a set of principles. Plan A business had a clear purpose looking ahead five to 10 years. It would cope with change when the payout took a quick drop so it didn’t make a difference, have clear tactics and an action plan that was monitored. It was about health checking the business, Kinder said. “Do you know if your business has moved forward over the past
three years, do you have long and short term goals – do you know where you want to be in 10 years from now? “The key to the future will be a strong cashflow, strong debit to asset ratio and a strong balance sheet that gives opportunity to make changes easily. “I can’t give you a recipe today, more a set of principles as opposed to a recipe,” Kinder said. “Ask the questions – what is important to you, where do want to be and how are you going to get there.” Kinder told farmers at least 20% of their time should be spent on their business that needed to pull out a minimum $1/kg MS in discretionary cash from a $6 payout. Farmers should set targets, develop an action plan, monitor it and, most of all, keep it simple. “Lower capital structure, lower operational overheads is a simple system.
“It’s not going to get you the glory of a higher payout but it will get you a sustainable business that keeps going no matter what the payout.” Benchmarking both the financial and physical performance against other farmers was critical but it had to compare apples with apples so it was important to know how the plan worked on another farm when benchmarking against it. “If you don’t pull out information and benchmark, you don’t know where you sit in the scheme of meeting goals.” Kinder said there was a lot of debate around whether $4.93/ kg MS as a break-even milk price was sustainable or was even happening. “Well, it’s not just a pie in the sky. These figures are achievable and there are farms out there doing it now. “Plan A business is very simple. Don’t overtune the boat. Just build
LOOK AHEAD: Debbie Kinder encouraged dairy farmers to health check their businesses and set a simple plan for the next 10 years. Photo: Annette Scott
a business that sits within the fluctuations with clear purpose goals generating $1/kg MS discretionary cash and ability to make change easily if the payout goes down.”
Once targets were set they should be monitored. “The idea is to know your business is sustainable and resilient to manage through tight times,” Kinder said.
8
News
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Dairy industry wants case against Canada Nigel Stirling nigel.g.stirling@gmail.com
OUTCOME: Dairy Companies Association chairman Malcolm Bailey says it doesn’t matter how the dispute with Canada is resolved.
THE dairy industry is unconcerned at the length of time the Government is taking in deciding whether it will bring a World Trade Organisation complaint against Canada for milk pricing policies it says are depressing international skimmed milk prices. The New Zealand industry joined with rivals from the United States, Mexico, the European Union, Argentina and Australia this week in writing to trade ministers calling on them to consider all avenues to challenge the measures. “In the absence of such efforts, Canada’s Class 7 policy will seriously further distort and disrupt international dairy trade,” they said.
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It follows a similar letter in September last year raising concerns about a milk pricing agreement between Canadian milk producers and processors, which the industries said had the potential to lead to unfair competition from Canadian dairy products in overseas markets. “That agreement has become reality and so, too, have the substitution of Canadian ingredients for our imports and the undercutting by Canadian protein exports of our exports in third country markets,” the industries wrote in their latest letter to ministers. The letter includes the Argentinian dairy industry, which was not a signatory to the September version. The industries said Milk Class 7 allows Canadian processors to buy subsidised local milk at low prices, further shutting imports out of what was already a highly-protected market. In giving a boost to local production the new milk class had also had the further effect of creating a pool of skim milk powder surplus to Canada’s domestic needs, which was now finding its way onto world markets. In the first four months of this year Canadian skim milk exports increased by 273% to 11,900 tonnes, the letter said. “Moving this protein onto the thinly traded global market of two million tonnes of SMP per annum will add to the already swelling global supply of milk protein and depress market prices for farmers around the world.”
Canada’s policy will seriously further distort and disrupt international dairy trade.
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Prices for skim milk powder at Fonterra’s Global Dairy Trade auctions fell from US$2600 a tonne to US$1900 a tonne between February and April this year but rallied to US$2100 a tonne at the most recent auction. The latest letter to trade ministers said the Canadian policy contravened an agreement by World Trade Organisation members in 2015 to not introduce new export subsidies. “We are now writing ... to ask the authorities in Argentina, Australia, the EU, Mexico, NZ and the US to pursue all avenues available to challenge these measures, including WTO dispute settlement and bilateral trade agreement relationships.” Last month Trade Minister Todd McClay said it could take four or five months before the Government was in a position to make a decision on either initiating or joining a case at the WTO against the Canadians. Dairy Companies Association chairman Malcolm Bailey said it backed the Government even though it would have been more than a year since first signalling concerns by the time it made a decision. “I am not critical at all of our Government because I know this is difficult to deal with because the Canadians, as one would expect, have not made it easy to get hold of the documents that are critical.” Canada at a recent meeting of the WTO agriculture committee in Geneva fielded a barrage of questions from NZ, which trade lawyers indicated could be in preparation for a possible legal challenge. Bailey said he did not discount the possibility of the Americans resolving the matter themselves in their re-negotiation of the North American Free Trade Agreement [NAFTA] with Canada and Mexico. The letter sent to trade ministers arrived the same day as the US government began public hearings on the NAFTA renegotiation. “From our point of view this has got to be resolved and it is the outcome that matters ... if other parties can successfully get an outcome without having to go (to the WTO) then great,” Bailey said.
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10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Top arable farmers win new awards Annette Scott annette.scott@nzx.com
SELFLESS: Volunteer work on behalf of farmers affected by the pea weevil quarantine earned Karen Williams the DOUBLE CHAMP: World wheat production Federated Farmers’ biosecurity farmer of record holder Eric Watson is the arable the year award. Photos: Annette Scott farmer of the year.
WAIRARAPA farmer Karen Williams and Mid Canterbury cropper Eric Watson have taken out Federated Farmers arable sector’s inaugural honours for excellence. They were celebrated as the best and the brightest leaders in the industry with the introduction of the awards aimed at inspiring others in the sector, arable chairman Guy Wigley said.
Williams was named Biosecurity Farmer of the Year for her leadership and advocacy for farmers in the pea weevil biosecurity response, Wigley said. “Alongside our Wairarapa provincial president Jamie Falloon, they were both influential components in the development of the response costs package for Wairarapa pea growers and staunch advocates for farmers and growers in the pea weevil response.” Williams was an integral part of the grower group spending many hours working alongside farmers and the Ministry for Primary Industries. “All of this voluntary and all to make a bad situation for growers better. “Without Karen and Jamie’s hard work, tenacity and leadership we believe farmers and growers wouldn’t have got the right outcomes in the response,” Wigley said. Those outcomes included good news for the industry nationwide with no pea weevils found outside Wairarapa. “This inaugural award will hopefully inspire other arable farmers to look at ways and opportunities to improve their onfarm biosecurity and reporting of any unwanted pests, weeds or diseases.”
Success in the arable industry typically flies under the radar compared to other agri-sectors in NZ. Guy Wigley Federated Farmers
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Falloon was honoured for his part when he received the award for outstanding advocacy at the Federated Farmers recent national conference. Mid Canterbury cropping farmer Eric Watson was crowned Federated Farmers-Bayer Arable Farmer of the Year. Watson was a Guinness World Record holder for producing the highest wheat yield of 16.791 tonnes a hectare, eclipsing the previous record of 16.519 tonnes. He and wife Maxine are widely regarded for their innovative thinking and knowledge of overseas technologies they use to improve onfarm productivity. “This is a fitting reward. Eric has contributed to research in the arable industry since the inception of the Foundation for Arable Research. “He has hosted trials and other research plots on his farm over the past 20 years, which has translated into productivity lifts for the entire arable sector,” Wigley said. “He is a quiet and unassuming leader. He lets his farm’s performance do the talking. “This award recognises his current achievements and ongoing leadership in our industry.” Scott Hanson of Bayer said leaders like Watson in the industry promoted New Zealand all over the world. “His recent achievement of gaining the wheat world record certainly has helped put us on the world stage. Federated Farmers looked forward to the awards becoming a much anticipated part of the industry conference in years to come. “Success in the arable industry typically flies under the radar compared to other agri-sectors in NZ. “It is long overdue that we recognise the outstanding contribution arable farmers make to the industry and the country in general,” Wigley said.
News
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
11
Book asks can we feed world? Hugh Stringleman hugh.stringleman@nzx.com
EDITOR: Professor Claire Massey presides over Massey University’s Land and Food Annual.
He ventured the unpopular suggestion that pasture-based dairying in NZ was a “climate hero” rather than villain because of our GHG efficiency and the likelihood any reduction in cow numbers would be replaced by less-GHG efficient milk
elsewhere in the world and should lead to local food trails and the development of regional food tourism.
True value-add will only be realised when we put the culture back in agriculture. Professor Tracy Berno Auckland Technology University “Our farms, restaurants, cafes, artisan food producers and large food corporations are world-class, enthusiastic and ready to take NZ food to places where recognition can be achieved,” she said.. Yet Auckland University of Technology associate Professor Tracy Berno said NZ was very reliant on our “brand state” for agriculture and tourism but the relationship between them remained weak and relatively unexploited. That was a lost opportunity for the NZ economy. She called for 100% Pure to be extended from on the land (landscape and adventure
tourism) to of the land (terroir and gastronomy). “True value-add will only be realised when we put the culture back in agriculture,” she said. Massey produced a balanced account of sustainability, the good and the bad. The big-picture contributions on our shortcomings like sediment loss, nitrogen leaching, cadmium contamination and the climatic effects of meat and dairy protein production were matched by the optimists quoted above. Her former vice-chancellor Steve Maharey said NZ’s mission was to produce food for 40 million or more discerning customers. “These are those who are willing to pay extra to access food that is natural, fresh, healthy, nutritious, delicious, fashionable, safe, additive-free, convenient, sustainable and traceable.” He quoted Alibaba e-commerce billionaire Jack Ma, of China. “As a citizen of the Earth, I would like to thank NZ for your benefit to the planet.”
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MASSEY University’s second Land and Food Annual asks Can New Zealand Feed the World Sustainably? Its editor Professor Claire Massey and some contributors say we can’t, for a variety of reasons based on perceived lack of sustainability in farming practices, especially water quality. However, by the end of the book there are enough wise words to re-address the proposition and answer yes instead of no. No in absolute numbers – kilograms of food produced for the greatest number of Earth’s inhabitants – but yes in terms of training and leading by example. Professor Ralph Sims, Massey’s School of Engineering and Advanced Technology, summed up his theme on the evolution of energy-smart, resource-smart and climate-smart food production systems. “NZ is not leading by example but we could,” he said. Fonterra chief scientist Jeremy Hill also said NZ could and was developing solutions for increased milk production and mitigation of the greenhouse gas emissions of dairy cows.
production elsewhere. Sanford Industries chief executive Volker Kuntzsch said our unmatched wild fishing and aquaculture resources needed a “vision for the ocean”. Our fourth-largest exclusive economic zone, world-leading quota management system and by-catch mitigation techniques should enable NZ to lead by example, he said. Professor Julian Heyes, of Massey, said NZ had extraordinary opportunities in post-harvest technology to produce, grade, store and transport sustainably as a very successful producer and exporter of perishable products. Science writer Anna Dickson drew attention to the pioneering discovery by Massey researchers of the “bypass pathway” to non-GHG nitrogen gas without going through the GHG baddie, nitrous oxide, in denitrification – the biological process after nitrogenous fertilisers were applied. The discovery could lead to inoculation of effluent ponds or modification of fertilisers, without the milk-trace fallout experienced with dicyandiamide (DCD). Food writer Lauraine Jacobs said our proximity to food sources could not be matched
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12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Newsmaker
Belief vital to nation’s future Young Farmers national chairman Jason Te Brake is the youngest person to be awarded an Emerging Primary Industries Scholarship. Before leaving for the Te Hono Boot Camp at Stanford University, California, he spoke to Hugh Stringleman.
O
N JULY 8 the rising trajectory of Jason Te Brake’s professional life will split between Stanford University in California and the FMG Young Farmer Contest grand final in Palmerston North and Feilding. While he would like to be watching the 49th contest, which many friends would be attending, organising and competing in, he needed to fly to the United States to be ready to start this year’s Te Hono boot camp on Sunday. Te Brake would also miss the Young Farmers annual meeting, at which he has put himself forward for another two-year term on the board and then to continue as chairman if board members want.
If we lose the NZ identity of our products then we become part of someone else’s story. Jason Te Brake He has served four years on the board and two as chairman and now, aged 28, he can do one more term before compulsory retirement from the ranks of Young Farmers. The key account manager for Maori-owned Miraka dairy company in Taupo was born and brought up on a south Waikato dairy farm at Arohena by parents Alfons and Heather.
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He always wanted to have a career beyond the farmgate rather than behind it. After Hamilton Boys High School he joined KPMG in 2006 and studied part-time at the Waikato Institute of Technology and became a chartered accountant in 2011. Subsequently he spent twoand-a-half years at Affco’s head office at Horotiu before doing a year in sales and marketing for Anzco in Christchurch. Family ties and the birth of baby Alex with wife Emma took him back north to Miraka, where he had been a key account manager for 18 months. His heritage is not Maori, but Dutch, in a dairy industry that owes a great deal to that immigrant source and their descendants. Before working for Miraka, he would not have based his speech to the annual KPMG Fieldays Breakfast on the values of kaitiakitanga or guardianship and their appropriate foundation for the New Zealand brand story. Introduced as the latest Te Hono scholarship winner, along with former colleague Julia Jones, a farm enterprise specialist for KPMG in Hamilton, Te Brake picked out four themes in the latest KPMG Agribusiness Agenda. The first was the need for a truly authentic NZ brand, underpinned by Maori cultural values and beliefs. His Miraka role had shown him those values and how they resonated with foreign customers. “They are elements of storytelling and brand-building that can’t be replicated around the world.” Secondly, there was no debate
NEW OUTLOOK: Te Hono scholar Jason Te Brake’s job at Miraka has allowed him to incorporate Maori values into his world view.
on the need for sustainability. “We tell our story with our hand on our heart – we do it this way and believe in it. “If we lose the NZ identity of our products then we become part of someone else’s story.” Te Brake was a firm believer in the technological basis for continuous improvement in sustainability to maintain the right to operate from non-farming citizens. Technology would also help put NZ producers alongside food consumers Wyld actively supports weka farming around the world. “No farmed species has ever died out” Roger Beattie In Singapore recently he Support weka conservation and buy a Weka Woo hat today saw NZ Trade and Enterprise $80 @ wyld.co.nz offer headsets to people to watch the grape harvest in Marlborough or the kiwifruit harvest in Te Puke then send them along to the NZ Winegrowers or Zespri stands.
Finally, Te Brake spoke about the Young Farmers’ efforts to recruit the very best young people into the whole primary sector, not just for farming. “In the past three or four years we are seeing more people looking for a wider range of opportunities in the primary sector rather than being told to milk cows and dag sheep. “I would rather see more effort into recruitment post farmgate because that is where the biggest returns will come, in science, technology and marketing.” Te Brake’s regrets at being unable to attend the Grand Final climax and the annual meeting next day were tempered by the chance to attend Stanford and to bring that lesson back to Young Farmers and Miraka. The Emerging Primary Industries Scholarship was sponsored by the Ministry for
Primary Industries, Agmardt and the Te Hono Movement. Young Farmers chief executive Terry Copeland said the scholarship reinforced the significant role the organisation played in providing tomorrow’s leaders in the primary sector. “We continue to strive to develop leaders who will make a vital impact and we are immensely proud of Jason’s achievements to date. “He has shown outstanding leadership within our organisation and we are delighted to see him expand that capability further. “To be the youngest recipient of the scholarship shows the depth of maturity and professionalism he and many of our members display on an ongoing basis and we believe our organisation is key to developing future leaders that will add value to the primary sector.”
New thinking
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
13
Genetics team cracks manuka code Scientists working on the DNA of manuka for the last few years have done work that might help determine which plants are tolerant or even resistant to myrtle rust. The work, begun to help manuka honey provenance, might now be used to combat the disease and produce a map of plants and their susceptibility and of the disease and its variants. Richard Rennie reports.
I
N A year’s time Plant and Food Research science group leader Dr David Chagne and fellow researchers hope to be looking at a map on their computers that highlights the varieties of manuka spread across New Zealand. Chagne and his research group were leading the charge to try to identify how many varieties of manuka there were in the country to help determine the provenance of manuka honey. But a big spin-off from the research was learning which might also be more tolerant or even resistant to myrtle rust. Myrtle rust fungal disease was found in NZ last month and plants of the myrtle family including pohutukawa, feijoas and manuka were at risk of being wiped out by its presence.
A spectrum of tolerance is likely, based on what has been observed in other myrtle species. Dr David Chagne Plant and Food Research Having already sequenced manuka’s DNA two years ago, researchers were now using cutting-edge sequencing techniques to determine if there were subspecies and different provenances within manuka and if they were more or less susceptible to the disease. The work was a collaborative effort between Maori partners, Waikato University, Plant and Food and Landcare Research as scientists doubled down in their efforts to better understand the uniqueness of manuka provenances across NZ. With 1000 samples of manuka leaves used in the original DNA sequencing effort, researchers were now calling on a relatively new field in science to help find variations of the hardy bush tree. Known as bioinformatics, the interdisciplinary field combined a scientist’s specialist biology field with an ability to collate, manage and interpret the vast amounts of meta-data genomic sequencing typically generated. “It is really a cross between biology and computer science in the era of big data. “We are generating lots of data here, more than terabytes worth, so you need the tools to manage that data, using innovative computer code. It almost means a scientist has to have that skill
ahead of their specific skill in their chosen field.” Five years ago his team comprised five bioinformaticians. That had since grown to 12 in a field where qualified people could be easily lured into other areas of research and commerce, such was the demand for an ability to manage and interpret big data. “But here we have quite an exciting situation with the myrtle rust incursion. “Researchers are able to help demonstrate how their skills can deliver a positive outcome for the primary sector. They are very engaged by that opportunity.” It was also useful that the sequencing technology being used now to identify manuka variants could also be used to better understand the nature of the disease threatening it. Just as researchers mapped the genome of the devastating Psa disease in kiwifruit, the manuka researchers were also able to try to determine if there were genetic variants of the myrtle rust disease. “We would hope that ultimately we could place over a map of NZ an indication of what manuka variants are where and what myrtle rust variants are present in different regions. “It will help give us an idea of where tolerance is greater or lesser and to what version of the disease and help us model its likely spread better.” However, to date very little research work has been done on manuka’s potential to have different sub-species. “For so long manuka was regarded as a weed, like gorse. Some work on kanuka (a cousin plant to manuka) found that after they thought there was only one variety, there were in fact 11. “It could well be the same with manuka. And those sub species could hybridise, making it a nice challenge for us to investigate.” Manuka had not been the main plant affected so far in NZ’s myrtle rust outbreak and evidence from Australia indicated the plant might not be wiped out by the disease’s presence here. “A spectrum of tolerance is likely, based on what has been observed in other myrtle species.” Chagne said mapping the DNA of manuka variants could add value by determining the provenance of manuka honey with potential for valuable marketing benefits and was the key goal of the research. “But myrtle rust tolerance was a welcome added bonus. “We are conscious, however, that we do not want to go reworking the DNA marker work already done for manuka honey standards.”
RESISTANCE LEADER: Dr David Chagne and his researchers are trying to identify manuka species that will stand up to myrtle rust.
Opinion
14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
EDITORIAL Wool needs all to knit together
N
Neal Wallace
LETTERS
Give rural sector some credit AS AN “urban polluter” who works daily in the rural sector I am becoming increasingly sickened by the mostly one-sided attacks on farmers. In my job I get to meet a great number of farmers and I have not come across one who does not expect to take some responsibility for rural pollution. I wonder how many of the urban-based, anti-farming lobby are prepared to face the same scrutiny of their activities. I wonder where the amassed roadway muck and gunge goes when it rains in the city or flows off our rural highways. Perhaps it is just farmers who leave all that rubbish on
our beaches and at popular picnic spots. We are now in grave danger of forgetting how vital the rural economy is to our high lifestyle, with the primary sector contributing $24 billion in 2016 – almost 11% of GDP. It’s time for our broader media to give the rural sector some credit for the strong commitment it is showing, physically and financially, to reducing pollution. And while we’re at it, let those of us who are urban polluters begin to take a serious look at our involvement in the big picture. To the farming-kickers, take your halos off for a minute and engage in some meaningful and sustainable discussion with all the cards
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Gimme a pill MY WEEKLY read of your commendable publication is highlighted by the interesting and diverse content that comprises The Pulpit. Two recent outstanding contributions came from the pens of Dave Hunger and Roger Beattie, essential reading for any aspiring politician/bureaucrat, as a reference to the “roll your sleeves up, get stuck in” attitude of your average, hardworking Kiwi. These people typify why the backbone and fabric of our nation is so strong.
The old-schoolers of our ranks are rapidly diminishing. We are being forced to obey the new world rules constructed by the truants of the school of hard knocks and the school of common sense. Just give me my medication. Michael Jephson Charleston
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EWS this week that some types of crossbred wool are being stockpiled because markets have dried up is another sorry chapter in what was once a noble export product. As we report in this week’s Farmers Weekly, wool, which once made up more than a third of sheep farmers’ incomes, now contributes a paltry 9%. It is easy to agree with east Otago farmer Simon Englebrecht who says the ills of strong wool were down to a lack of marketing. Individual companies are doing their best playing catch up but none has the clout or presence to significantly win back ground lost by wool to synthetic fibre producers, especially in the carpet market. You can’t go to a conference or read an assessment of markets without being told consumers today want natural, sustainable, renewable products. Wool ticks all those boxes yet most consumers don’t buy woollen carpets. Put simply, farmers and the wool sector have dropped the ball and cannot decide if they want to pick it up. If it is concluded that wool has a future, its problems are obvious and, at least in a broad sense, so are the solutions. Consumers need to be re-educated about wool’s qualities. A generation of consumers and, perhaps more disconcertingly, carpet retailers and their staff have grown up totally ignorant of those attributes. We could commission yet another expensive, door-stopping sized report from consultants on how to rectify that. We could relitigate the wisdom of dismantling the Wool Board or the fact farmers have not paid a wool levy since 2009 or we could argue the merits of one company’s marketing programme over another. What is blindingly obvious is the need for a united effort to reconnect with consumers, backed by marketing grunt and cash. Naturally, sourcing the cash and managing such a project will be the subject of exhaustive discussion but the fact wool has all the attributes desired by consumers is surely sufficient incentive for an industrygood push to restore interest in the fibre.
Opinion
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
15
End nigh for anti-farm greenies Andrew Hoggard
I
F THERE’S one thing three years as chairman of the Federated Farmers dairy group has underlined for me, it’s that change and challenges are a constant. The bar – particularly around environment and animal welfare aspects – will continue to be lifted by our customers. We might as well accept that fact and continue to innovate and adapt. In my swansong speech to the dairy group’s annual meeting I said those pressures were not confined only to farmers here. The International Dairy Federation meeting in Brussels debated the worldwide anti-dairy movement. The nuances are different in each country but a common claim is that we can save the planet by ditching animal-based agriculture for a diet of lentils, mung beans and tofu. It’s not only the hippy-type activists who want to tell us how to farm. Farm Animal Investment Risk and Return (FAIRR) put together by investment funds manager Jeremy Collier advises investors on the pitfalls of what they call factory farming. The people behind it manage about $1.5 trillion in assets. Do they see us as factory farming? Unfortunately, I think many of these types view any sort of farming where you employ others to help you or have more than a handful of animals as factory farming. Others fret about the rise of synthetic milk. But we already have dairy alternatives taking market share from us. Here’s the reality check: if customers like what you are selling they will buy it, if they really like it, they will pay more. We have to tell the best story we can on why natural, healthy milk from free-roaming, pasturefed cows on farms that show environmental stewardship is worth paying a premium.
The
Pulpit
Internationally, in trying to get a jump on our fellow global farmers to get a bigger slice of the pie, we miss the point that the pie is at risk of shrinking. There is much we should all be doing in the pre-competitive space before we start trying to knife each other. The classic example is lamb. I sometimes wonder whether United Kingdom sheep farmers spend much time on their farms as so often it seems they’re in supermarkets looking for a New Zealand lamb chop to photograph and then complain about on Twitter.
A common claim is that we can save the planet by ditching animal-based agriculture for a diet of lentils, mung beans and tofu.
Meanwhile, lamb consumption plummets. I’ve regularly been asked to comment on criticism of farmers’ performance on the environment, employment and animal welfare. Some criticism has been justified, some is way over the top.
ENOUGH: After three years leading Federated Farmers’ dairy section Andrew Hoggard has reached Peak Greenie.
Even if there’s a valid concern, so often the person or organisation raising it deliberately ignores the good work going on to improve performance and the steady gains made. Irrigation is a favourite target. In some lobbyists’ minds, irrigation equals an increase in dairy equals an increase in nitrogen run off. So the catch cry is to scrap Government funding or “subsidies” for irrigation schemes. Let’s be clear, these are not subsidies. It is a contestable fund, there to facilitate start-ups. The projects have to stand financially on their own feet. Irrigation is like any other piece of infrastructure. There are plenty of roads in this country I will never drive on, yet my taxes help pay for them. Irrigation is not just about dairy. Without water nothing will grow. Given that climate change is supposed to bring drier conditions to some parts of the country, surely we want to mitigate that and protect our economy and food supplies from
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the potential impact of drought. Or would these groups prefer that we suffer penance like some sort of medieval religious cult. The amount of dairy expected to be in the Ruataniwha Irrigation Scheme was only going to be about 10%. The recently released Fresh Water Rescue plan also pushes a “polluter-pays” concept. If this is some sort of levy or tax, I trust it would apply to all forms of pollution - storm water and urban discharges included. The whole thrust of it suggests farmers aren’t already paying a lot to meet higher expectations and standards. Effluent systems today cost hundreds of thousands of dollars. Farmers are investing more and more in stream fencing, riparian planting, wetland creation and erosion control. What would a tax on top of that achieve – most likely less money to spend on all those enhancement activities. Another assumption is that all the contaminants could be measured and taxed simply. That might have worked had it been in place in 1840 when people
could have factored it into what they were willing to pay for land. The problem with doing it now is that young couples who stretched themselves thin to take over farms paid a price based on the land’s productive capacity. They haven’t budgeted for nitrogen, phosphorus or sediment taxes. In all fairness, if approaches like this are going to be made then those farmers affected must be compensated for their losses. There is definitely more work to do but it’s about carrying on with the work under way, focusing on the catchments that need focus and informing farmers of good practice and new ideas. Surely the end is nigh for antifarming diatribes and calls for change that will take us back to subsistence agriculture. Some people go on about Peak Cow, well, I’m at Peak Greenie.
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
16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Political parties lacking courage Alternative View
Alan Emerson
THE recent Federated Farmers annual gathering in Wellington was interesting. I’ve attended the annual cocktail function for many years now and this one was quite different. I talked to many provincial presidents and was impressed by their energy, grasp of issues, ability to think outside the square and commitment. I also thought the presidential and vice presidential elections showed an organisation in good heart. All the candidates who put their names forward were extremely capable. In many previous years either Anders Crofoot or Katie Milne would have been considered shoe-ins. That they both stood illustrated to me the strength of the organisation. The candidates obviously preferred Katie Milne but Anders
could have equally done the job. Katie is impressive. Likewise, with the vice presidential candidates. I don’t know Chris Allen personally but I know his public persona and he, Andrew Hoggard and Rick Powdrell are all capable people. It would have been a difficult choice with Andrew being ultimately successful. Katie and Andrew will be a formidable team. It is to the credit of the board that the organisation is in such good heart. I also believe Dr William Rolleston has been an excellent president who has achieved much. The new Feds strength flows through to staff where recent recruitment has been impressive. They have joined a solid management team. In the past I’ve been critical of Feds when I’ve felt it was deserved but currently I feel positive about the organisation. The annual get together in Wellington was really interesting for a variety of factors. It’s obvious we’re heading into an election with Primary Industries Minister Nathan Guy addressing the cocktail function. He spoke well and has done well as minister, especially considering what he inherited but my concern
is that his party and Labour aren’t parties of the provinces. On that note New Zealand First has positioned itself firmly as a provincial party. It recruited David Broome from Federated Farmers some time ago and the media position is definitely provincially and farming oriented. For example, the state of the Manawatu Gorge is an absolute festering sore for the southern North Island and the only party I’m aware of that wants to give it a permanent fix is NZ First. Its leader Winston Peters addressed the conference and went for the political jugular. He asked why lucerne was now considered a dangerous crop and why you could have all the dogs you liked on a quad but not a pillion. He talked about race-based planning and farming curtailing regional plans. He told the audience “in 2017 NZ First is the farmers’ party” going on to show the number of farming candidates the party had. He described National and Labour as the “Coke and Pepsi of NZ politics”. His priority post-election was to fix the Resource Management Act followed by mending the urban-rural divide, promoting water storage and
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repealing the Emissions Trading Scheme. He also promised to boost resources for the heartland, changing monetary policy to support exporters not importers, promoting trade agreements, lifting public research and development spend and putting Government Industry Agreements on importers and not farmers. He also promised to overhaul Biosecurity NZ so it was fit for purpose and get the government out of the cities and into the provinces. It was an extremely clever speech superbly targeted to a rural farming audience. His final sentence was “you Lions are being led by donkeys in blue. Break the cycle. Back NZ First and our candidates who look, speak and sound like farmers because they are.” It will be really interesting to see if farmers do just that. One of the interesting discussion papers that became a remit concerned Fish and Game. Basically Feds want the licence fee split into an administrative fee and a voluntary contribution if a person supports the organisation. I spoke to North Otago president Simon Williamson who was passionate about the subject.
He asked “Why would you have a compulsory levy to fight farmers when the majority of ducks, geese and fishing is on or through farmland? ”They’ve given up many hatcheries, they don’t control Canada geese any longer yet they still charge this exorbitant licence fee to give them a slush fund to hammer farmers with. “Fish and Game don’t maintain waterways – farmers do. “We maintain the habitat and get nothing for it. “I don’t believe they’re representing their licence holders. They’re talking to us,” he said. I agree with all of those points and would vote for a political party that would include that in its manifesto. Sadly, I don’t think any political party has the courage to do it. They’d sooner blindly accept the bluff and bluster from Fish and Game that farmers and others are paying for. That leaves it to Feds and they have the unity, ability, will and determination to fix the problem. Watch this space.
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 3, 2017
17
Talk and innovate achieve success Meaty Matters
Allan Barber
THREE weeks ago, just before the start of Fieldays, I was in Hawke’s Bay enjoying a taste of FAWC or, to give its full name, the Food and Wine Challenge. This dovetailed neatly with being able to talk to two farmer groups, a smaller informal gathering at the ANZ at Stortford Lodge and a large station discussion group in Taupo organised by Taumarunui consultant Geoff Burton. I was keen to take the opportunity to talk to a good cross-section of sheep and beef farmers with substantial land holdings and stock numbers to get a feel from them about their view of their sector and its prospects. The unofficial title of my presentation to the Taupo gathering was Is the meat industry buggered? though I took the less challenging stance of Does the red meat sector have a profitable future? My answers to the two questions were No and Yes in that order. I found the farmers at both meetings to be positive about their own farm operations but, as expected, less convinced about
the sector’s long-term prospects. The higher average lamb and beef returns this season provided a much needed boost to morale though the disappointment from wool persists. Overall, farmers appear to be positive about the future but would like to feel more engaged with the meat exporters to generate better information about the needs of the market and how they can produce the ideal product. Without, I hope, being an apologist for the meat companies’ shortcomings, I tried to explain why the processors/exporters operate the way they do, using the industry’s origins, recent history and changing global markets to illustrate the companies’ case. More specifically, I painted the picture of the modern industry which has made huge changes to its methods of doing business in the past 30 years. These changes cover virtually all aspects of operation, including plant footprint, operating shifts, diversity and sophistication of product forms, recovery of co-products, food handling and safety, automation, packaging and product traceability. Another major change, driven by economics, has been the dramatic decline in the national sheep flock, offset by a compensatory increase in productivity, lambing percentage and slaughter weights. Producers, processors, exporters and customers have all shared in the contribution to progress but those behind the farmgate
can take enormous credit for responding to the different circumstances that have led to it. The main area in which farmers have seen very little change is livestock procurement. Admittedly processors can now supply kill sheets electronically, there is more carcase feedback, a certain amount of reward based on yield grading and the first trial of electronic ASDs is under way. But a farmer suddenly transported from 1987 to the present day would still recognise most of the procurement habits from his farming operation 30 years ago. He (it was nearly always he) would be surprised by the degree of computerisation onfarm, the increase in traceability and the ubiquitous nature of mobile phones. But he would still receive a weekly schedule, talk to his mates at the sales, hear tales of premiums available and he could sell through his stock agent rather than directly to his meat company buyer. My meetings with farmer groups last month demonstrated very clearly to me the huge change in farmers since the 1980s. Those I met were all totally computer literate, aware of the benefits of technology and using it to run their farming operations, very conscious of environmental demands and keen to produce what the market wants. To achieve the last point requires contact with and feedback from their meat processor. I advised them to be
SHAKE-UP: Amazon’s purchase of the Whole Foods chain means the retail market for Kiwi products is about to start changing even faster.
persistent, demand as much useful feedback as they want and if they don’t get it, either change processor or insist on talking to somebody high enough up the tree who can provide it. In this intensely global marketplace, close communication between all parts of the supply chain is essential. Consumer tastes and shopping habits are changing all the time which means marketers must keep ahead of trends; processors and suppliers will have to find ways of keeping up or risk becoming redundant. The latest development in the retail sector is internet monolith Amazon buying the Whole Foods bricks and mortar retail chain for US$14 billion so the retail sector, including groceries, is about to start changing even faster. In answer to the question why Amazon would want physical stores, it seems they will become distribution and order assembly
points for the online business as well as offering a choice to shoppers who still prefer to buy their food in person. Consumers’ needs and wants are certain to move in different directions which will affect what we produce and sell. On one hand there will be a move towards fresh, premium produce and on the other an increasing trend towards convenience and ready to eat. By using the sort of innovative thinking that has just won the America’s Cup, NZ’s red meat sector must look for new and different ways of meeting the consumer wants of the future. As Ernest Rutherford said “We haven’t the money, so we’ve got to think”.
Your View Allan Barber is a meat industry commentator: allan@barberstrategic. co.nz, http://allanbarber.wordpress. com
Faith overcomes a lack of understanding From the Ridge
Steve Wyn-Harris
BEEF + Lamb New Zealand Genetics held its annual sheep conference in Napier last week so I wandered along to keep abreast of latest developments and catch up with fellow sheep stud breeders. B+LNZ Genetics was established in 2014 to consolidate NZ’s sheep and beef genetics research and innovation into a single entity. The main portal or interaction sheep breeders like me have with it is through the Sheep Improvement tool. That is where all the performance recording and genetic evaluations are done and the outputs we use are the selection lists for our sheep. This lets stud breeders identify the very top genetics for future sires, cull the low genetic worth
individuals and sell to commercial farmers the good rams backed with plenty of robust data that will give them more profit. However, there are many other interactions we have with BLG. There’s the Central Progeny Test, which is the structure that makes the numbers work. It now includes the Next Generation Sites which takes these evaluations out onto commercial farms to ensure the science works where the genetics will be used. There is also the work that the scientists and some of us are using incorporating genomics into the mix, allowing much earlier selection decisions based on genetic information. But SIL is a tool for commercial farmers as well and can easily be visited at the website so they can ensure the genetics they are getting from the breeder are as good as he says they are. If your current breeder is not on SIL, you are very likely missing out on a great deal of onfarm performance and production and hence profit and should be asking him and yourself some hard questions. And while you are online, visit
the BLG site itself which provides plenty of simple-to-understand information for commercial farmers. One of our many great speakers at the conference was Professsor Dorian Garrick, a good fellow and very smart. When his first slide went up, I thought I had this under control. His underlying concept slide was stuff I understood and used. The extra polygenic effect made me slightly uneasy but I decided to let it pass. The following slide (pictured) with the selection index
assumptions saw the stud breeders visibly slump in their seats and made me realise that even if I had concentrated really hard at maths at school, it wouldn’t have made any difference. I felt nauseous just looking at his slide. I’d long ago realised that after I’d diligently collected physical measurements of my flock and sent them into SIL, they worked their magic with all sorts of maths, science and equations and I didn’t have to understand what they were doing or how but to have trust and confidence in the
tools and the people and use the selection lists generated. Garrick’s equation only reinforced my method. We had other terrific geneticists like Dr Michael Lee, Dr Peter Amer, Dr Neville Jopson and Dr Sheryl-Anne Newman who are all from different NZ institutions but each working with BLG and providing new and exciting science to enhance and improve the tools we use to identify and use the best genetics available. The other great thing with this annual gathering is to rub shoulders with sheep stud breeders from varying breeds and different parts of the country. This gathering has encouraged a greater exchange of ideas and co-operation among a group that remain competitors but acknowledge the real competition are things like changing land use and alternative proteins including those made from plants and in the lab.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
Real Estate
Farm prices will keep rising in the corresponding period last year. In the year to May 2017, 1790 farms were sold, 1.4% more than ARM values are likely in the year to May 31 2016. Sales to keep rising in the were up 32% for finishing farms next few months, PGG and 20% for dairy farms but down Wrightson Real Estate 20.3% for grazing farms. general manager Peter The median price per hectare Newbold says, as a shortage of for all farms sold in the three good properties and increasing months to May 2017 was $27,212 demand has been confirmed. compared to $26,683 recorded for However, prices were three months ended May 2016, inconsistent, the latest statistics a 2% rise but the median price from the Real Estate Institute per hectare for May fell 4.1% showed. compared to April. That confirmed the market was The institute’s All Farm Price giving off mixed signals, institute Index fell 2.4% in the three months rural spokesman Brian Peacocke to May compared to the three said. months to 2017. Compared to May Newbold said recent institute 2016 the index rose 4.6%. statistics indicating the market “What we know from discussion was trending steadily up were with farmers and investors is borne out by what his regional that as the outlook for dairy sales teams across the country becomes more optimistic all rural were seeing face to face with categories now have a positive farmers. mind-set,” Newbold said. “REINZ’s analysis of the rural “As that occurs, many farmers property market for the quarter to will look to increase their holdings. May this year showed the volume “In such a confident market and value of sales is up slightly owners invariably become more compared to last year, growing by bullish while pressure eases in the 5.1% and 2% respectively. lending sector. The statistics showed there “That will lead to a shortage of were 25 more farms, 514, sold in supply against growing demand the three months to May 31 than for rural property. “We have seen that for a few months with viticulture and horticulture land and, to a lesser extent, forestry property and sheep and beef farms. Wednesdays 05/07/2017 and 02/08/2017 “In the coming AWDT Understanding Your Farming Business months, while Three full-day workshops and an evening graduation those other ceremony run over four months categories Venue: Te Akau Community Complex, Te Akau Contact: anna@awdt.org.nz or 06 377 4560 should remain Website: To register for the programme go to highly sought http://www.awdt.org.nz/programmes/understanding-yourafter, a similar farming-business/ supply-demand imbalance is also Sunday 09/07/2017 likely to occur Plant Nutrition and Your Health across all other Professor Huber will speak on the results of his rural property comprehensively researched long term effects of glyphosate based herbicides, genetically modified organisms and the impacts on soil, air and water ecosystems. Venue: Featherson Community Centre, Wakefield Street Time: 7pm Cost: Koha
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Many farmers will look to increase their holdings. Peter Newbold PGG Wrightson
positive and property prices would continue to rise, reflecting that. “Larger investors and corporate farmers are becoming more active. “While some institutional investors will use this opportunity to exit the market we have also noted a pick-up in genuine investor inquiry, which is likely to build through the winter and into the spring. “Buyers in this category are firmly focused on value and will be mainly motivated in ensuring return on investment from any farm they purchase,” Newbold said. Peacocke said sales figures in the three months to May 31 reflected a steady tone in the rural market as the productive portion of the season tapered off, albeit
Farm prices won’t go mad, ANZ says
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Monday 10/07/2017 Plant Nutrition and Your Health Professor Huber will talk about the essential nutrients for plant growth and reproduction. How plants absorb these minerals and how a lack or overabundance affects their ability to withstand plant diseases. He has written a comprehensive book “Mineral nutrition and plant disease” that has become an essential resource to many farmers. Venue: Te Pare Farm, 1403 Kahutara Road, South Wairarapa Time: 10.00am to 3.00pm Cost: $30 Thursdays 20/07/2017 and 17/08/2017 AWDT Understanding Your Farming Business Three full-day workshops and an evening graduation ceremony run over four months Venue: Hunterville Contact: anna@awdt.org.nz or 06 377 4560 Website: To register for the programme go to http://www.awdt.org.nz/programmes/understanding-yourfarming-business/
sectors, in particular for dairy, which tends to dominate the market. “Per-hectare values will therefore continue edging up and purchasers in all regions will encounter a shortage of supply of the type of properties they are looking for,” he said. “Listings are short though we know several desirable properties will come to market in the next few months. “With the upturn in attitude buyers will need to prepare for these higher profile properties to be especially hotly contested.” And values for viticulture and horticulture land should keep setting new records. Though less spectacular, the other rural sectors were all
IMPROVED farmgate milk prices should not prompt another boom in farm prices, ANZ rural economist Con Williams says. “We’re not expecting improved cashflow in 2017-18 to see the market launch back into behaviours of old with a surge in prices,” he said in the lastest ANZ Agri Focus. Higher interest rates, policy uncertainty and continued balance sheet repair capped land prices. The result was dairy, finishing and arable prices had softened since summer while grazing prices had moved back up to long-run averages, reflecting better seasonal conditions and improved red meat prospects. Horticulture remained a standout with solid cash income prospects, more corporate-type and Maori investment, a diminishing area of suitable land in key regions and migration out of expensive urban areas in search of lifestyle options all combining in various measures to support valuations.
sales prices were giving mixed signals. In spite of an oversupply of rain and resulting crop and pasture management difficulties in some areas, most regions benefitted from favourable autumn conditions. “As early frosts and snowfalls signal the approach of winter, confidence within the rural sector continues to build in anticipation of improving incomes during the forthcoming season.” Demand for quality properties and the shortage of supply remained constant. As expected for the period leading into June when most dairy farm sales were settled, volumes across the country had eased. Sales instigated by financers, particularly in northeastern Waikato, confirmed recent comments from the Reserve Bank that some farmers might struggle to cope with the debt built up over recent seasons, with selling being the only option in such cases, he said. Confidence in the finishing sector was demonstrated by a healthy level of sales in Auckland and Waikato with strong volumes and some particularly strong prices in Canterbury and Otago, and Southland close behind. Particularly strong grazing farm activity was recorded in Northland. It was steady in Hawke’s Bay and ManawatuWanganui with a continuation of the recent solid levels of sales in Canterbury and Otago. There was good demand and good prices for cropping farms in Waikato, Canterbury and Southland with volumes constrained by supply. Horticulture showed a continuation of solid activity across the board in Bay of Plenty in May with a surge of sales in Gisborne but the market was very quiet in Hawke’s Bay, Nelson and Marlborough. Good returns from woodlots and plantations resulted in an upturn of interest and sales activity in Nelson, Canterbury and Otago but it was a quiet month in the North Island with just one forestry sale being registered in Hawke’s Bay. Finishing properties accounted for the largest number of sales with a 31% share of all sales over the three months to May, grazing properties accounted for 30%,
dairy properties for 17% and horticulture for 12%. The median price per hectare for dairy land was $34,789 (89 properties) in the three months ended May compared to $35,186 for the three months ended April 2017 (98 properties) and $33,507 (60 properties) for the three months ended May 2016. The median price per hectare for dairy farms had risen 3.8% over the past 12 months. The median dairy farm size for the three months ended May 2017 was 116 hectares. On a price per kilogram of milksolids the median sales price was $36.26 for the three months ended May 2017, compared to $34.47 for the three months ended April 2017 (+5.2%) and $33.97 for the three months ended May 2016 (+6.7%). Finishing farms for the three months ended May 2017 had a median sale price per hectare of $27,141 (157 properties), compared to $25,585 for the three months ended April (122 properties) and $24,026 (107 properties) for the three months ended May 2016. The median price per hectare for finishing farms had risen 13% over the past year. The median finishing farm size for the three months ended May 2017 was 52 hectares. Grazing farms for the three months ended May 2017 had a median sales price per hectare of $14,160 (155 properties) compared to $15,079 for the three months ended April (146 properties) and $16,334 (173 properties) for the three months ended May 2016. The median price per hectare for grazing farms had fallen 13.3% over the past year. The median grazing farm size for the three months ended May 2017 was 75 hectares. Horticulture farms for the three months ended May 2017 had a median sales price per hectare of $181,427 (64 properties) compared to $278,419 (62 properties) for the three months ended April and $243,942 (81 properties) for the three months ended May 2016. The median price per hectare for horticulture farms had fallen 25.6% over the past year. The median horticulture farm size for the three months ended May 2017 was seven hectares.
HOLD STEADY: REINZ spokesman Brian Peacocke says there was a steady tone in the rural market.
bayleys.co.nz Contributor to realestate.co.nz
20
farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
THE NEW ZEALAND FARMERS WEEKLY – July 3, 2017
MATURE FORESTRY INVESTMENT Kauarapaoa Road, Brunswick, Wanganui The opportunity to secure a close to harvest forestry investment property, totaling 644ha comprising of 4 titles with approximately 170 ha pine plantation planted in 1993, 1994 and a balance of 30 ha in 1995. The remaining area consists of 60 ha of manuka and regenerating native species, 8 ha livestock grazing pasture and 406 ha of virgin native forest. The hill country property has good strategic tracking throughout the pine forest to assist harvesting and placement of a small number of Beehives.
644 hectares Tender (unless sold prior) www.nzr.nz | Ref: R269 Tender closes 4pm, 3rd August 2017 1 Goldfinch Street, Ohakune Jamie Proude AREINZ 06 385 4466 | 027 448 5162 jamie@nzr.nz NZR Central Ltd | Licensed REAA 2008
For Sale NEW LISTING
South Canterbury | Timaru
Deadline Sale
110 Hectares For Sale / 215 Hectares For Lease
Closing 1pm, Thursday 3 August 2017
Attention All Vegetable Growers And Cropping Farmers. Opportunity to purchase and lease a substantial amount of premium irrigated land. The land is currently growing a diverse range of vegetable crops, cereals and small seeds with contracts to supply local and international markets. The following options are available for sale and lease.
Inspection By appointment
Option 1 – For Sale: 110 hectares in four titles, fully irrigated by pivot, lateral and gun. (Sold in total or as 95 hectare and 15 hectare parcels).
Contact Option 2 – For Lease – Evergreen min 5 year term: 215 hectares, fully irrigated by pivot, lateral and gun irrigators. Additional leasehold blocks may also be available. Option 3: Expressions of interest in supply contracts and purchase of equipment for growing carrots, potatoes and onions plus arable crops. It would be desirable that the Lessee would purchase and utilise the very efficient carrot wash on the Divan Road farm.
Simon Richards 027 457 0990 Eddie Moir 021 731 199
This is an incredible opportunity for growers to expand or to get economies of scale and security through existing contracts. The vendors preference is to provide an opportunity for a motivated young farmer and as such would prefer one entity to purchase/lease the whole business but would consider all options on there merits including pastoral options. | Property ID TU10979
NEW LISTING
Canterbury | Darfield 306 Hectares
Subject to survey
Strategic Opportunity - Scale, Scope, Location. A collective total sale area of 306.48 hectares (subject to survey), comprising of 241.78 hectares (Beattys Road) and a proposed subdivided parcel of contiguous land of 64.7 hectares (Yeomans Road). An opportunity with significant scale and excellent shape in terms of future irrigation and general farm layout. Shares held in the CPW scheme allow for a range of land use options. Located 40 minutes from Christchurch, this well located property is poised for the next level of production. Farmlands Real Estate is privileged to showcase this strategic opportunity. | Property ID DA1733
Licensed under REAA 2008
NEW LISTING
Deadline Sale Closing 1pm, Wednesday 9 August 2017
Inspection By appointment
Contact Matt Collier 027 205 6626
South Canterbury | Hunter 591.5 Hectares Once In A Lifetime. Outstanding dairy unit presently milking off approximately 475 hectares, 1,800 quality cows, achieving 760,000kgMS. Excellent housing on all units, including executive homestead. Two outstanding rotary dairy sheds, supported by a full complement of ancillary buildings. Great location and close proximity to two dairy companies, 25km South of Timaru. Immaculately presented, quality soils, great contour and cost effective irrigation water on the dairy units. Sufficient Hunter Downs Water Ltd shares purchased to complete the irrigation expansion. Growth opportunities abound on this outstanding property. Nearby 385 hectare run-off also available. | Property ID WA1511
Deadline Sale Closing 4pm, Friday 25 August 2017
Inspection By appointment
Contact Ian Moore 027 539 8152 Neill Dick 021 359 793
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farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
THE NEW ZEALAND FARMERS WEEKLY – July 3, 2017
FOR SALE
FOR SALE
NEW PLYMOUTH COOL STORE 20 HAKIRAU STREET, New Plymouth
WAIOTIRA SOUTH FOREST 549 PAIAWA ROAD, Waiotira, Northland
SO CLOSE TO NORTHPORT!
REDEVELOP OR ADD VALUE OPPORTUNITY This is an outstanding opportunity to purchase a cool store/logistics facility of significant scale on an undoubtedly strategic land holding adjacent to the New Plymouth Port. Benefit from the holding income while you develop a third party logistics business or re-purpose the existing structure to suit your intended use.
Waiotira South Forest represents a superb opportunity for a purchaser to secure a younger forest with existing forestry infrastructure.
+ 2.5836ha freehold land** + 17,830sqm of buildings (approx.) + Functional cool store/logistics facility
Located just Southwest from Whangarei and only 51km from Northport means this is an exceptionally well situated property.
+ Up to two years holding income or flexible settlement + Close proximity to New Plymouth CBD
Pinus Radiata net stocked area is 144.9ha planted between 2010 and 2012 with a total freehold land area of 173.4227ha across five titles.
FOR SALE BY TENDER Thursday 13 July 2017 at 4.00pm* ALAN JOHNSTON 027 293 0762 IAIN TAYLOR 021 473 253
JEREMY KEATING 021 461 210
+ Superb location only 51km from Northport + Net Stocked Area of 145ha + Second Rotation forest with prior harvest infrastructure + Crop aged between 5-7yrs
DEADLINE TENDER Friday 28 July 2017 at 4.00pm WARWICK SEARLE
ANDREW STRINGER 021 388 834
021 362 778
*Unless sold prior **Subject to minor boundary adjustment; boundary line indicative only
www.propertyconnector.co.nz/207478Q27
www.cbre.co.nz/207975Q27 Success Realty Limited, Licensed under the REAA Act 2008
CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
SOUTHERN WIDE REAL ESTATE
SOUTHLAND
THE ADDRESS FOR RURAL REAL ESTATE
BRYDONE, 10KMS FROM EDENDALE DAIRY FACTORY 188.05 HA FH
Stay up-to-date with the real estate market with
Presently utilised as a sheep milking unit, this property previously milked dairy cows and may be re-converted (subject to the necessary consents) or used for other alternatives. Equipped with an extensive range of buildings including three dwellings, a near new wintering shed of approximately 3000 square metres, three lambing or calf sheds, dairy shed currently set up for sheep milking and several other buildings. The property features good layout with established shelter, easy rolling contour, is well subdivided into 52 paddocks with races of a good standard and pressure water system to troughs from a bore.
farmersweekly.co.nz/realestate
Deadline Sale closing 4.00pm, 21st July 2017. Prior offers considered MICHELLE LUCAS p 03 218 2795 m 0275 640 737 e michelle.lucas@swre.co.nz
Hargest House, Level One, 62 Deveron Street, Invercargill 9810 p 03 218 2795 f 03 214 0872 e southland@swre.co.nz
LK0088051
DALLAS LUCAS p 03 231 3014 m 0274 325 774 e dallas.lucas@swre.co.nz
©2087RE
Web Ref SWI1861
OPOTIKI FARM - 358 Ha 701 Otara Road
OPOTIKI - Otara Rd. Situated 7 Km from Opotiki this long held Family Farm is to be sold. Total land area 358.8866 Ha, held in 13 titles, currently operating as a Dairy Farm. The property is available to purchase as one lot or in part with five attractive options to consider: Option 1; The Total Package, 358.88 Ha, Option 2; Home Dairy Farm, 86.97 Ha, Option 4; Hill Country, 122.37 Ha,
Option 3; Forestry Block, 88.33 Ha, Option 5; Northern Flats, 61.21 Ha.
There are five houses on the property, all options except the forest block have house/s and farm buildings. The farm property is being offered for sale as land, buildings and farm chattels. This is an exciting opportunity with appealing choices to be had. Information Memorandum and Tender Documents are available from the Agent. More information online. The purchase price is PLUS GST (if any), for settlement 1st June 2018 For sale by public tender, closing at the office of: Professionals Whakatane Ltd, 38 Landing Rd, Whakatane; 12.00 noon Wednesday 9 August 2017. (Note: Will not be sold prior). FARM OPEN DAYS: Mon 10 July, Fri 14 July and Wed 19 July – Times 10.30am to 1.00 pm. (You may bring own farm bike or UTV – Helmets a must have)
VIEW ONLINE: professionalswhakatane.co.nz/PWK00915
Maurice Butler @RuralRealEstateWhakatane 07 307 0165 0274 514 395 professionalswhakatane.co.nz maurice@professionalswhakatane.co.nz Licensed under REAA 2008
WE DON’T JUST SAY TEAM. WE GUARANTEE TEAM.
It’s no secret that the rural real estate industry is known for agents working in isolation and jealously guarding their listings. That’s not great for you and is why every member of the Property Brokers’ rural team has signed a binding agreement to work together to sell your property. No working in isolation, no guarding listings. So while you’ll still have a lead agent, you are guaranteed to have a true team of equally committed agents, marketing experts and support staff, from right across the country, working for you to get you and your farm the best result. Find out more at pb.co.nz/trueteam
WAIKATO
LOWER NORTH ISLAND
SOUTH ISLAND Property Brokers Limited MREINZ Licensed REAA 2008 0800 FOR LAND
TRUE TEAM
This is Property Brokers’ Country!
GUARANTEE
THE NEW ZEALAND FARMERS WEEKLY – July 3, 2017
Employment
classifieds@nzx.com – 0800 85 25 80
FARM WORKER
Shepherd
Ingleby NZ LP’s Puketiti Station, located in the King Country has a vacancy for a shepherd to join the team to help drive the overall objective to increase production on this 23,000su sheep and beef station.
Taringamotu Otamakahi Trust
DAIRY BUSINESS OPERATIONS MANAGER
Applications can be made to Rusty Morgan, Farm Manager via email to puketiti@ingleby.co.nz and should include a covering letter and an updated CV
•
Closing date: 9 July 2017 For further information on Ingleby, please visit www.inglebyfarms.com
Shepherd General Te Uranga B2 Incorporation operates a 1153ha sheep and beef enterprise 10 minutes north east of Taumarunui carrying 12,000 stock units and is a past finalist in the Ahuwhenua Trophy Maori Farmer of the Year. With a mixed stocking policy including sheep, beef and dairy heifers this is a fantastic opportunity to be involved in the running of a diverse farming operation. You will be working alongside the Farm Manager and the Shepherd with the role being based around 50% stock work and 50% general duties. You will have: • The ability to work efficiently on your own and as part of the team • A high level of pasture and stock management skills • A strong work ethic to “get the job done” • Excellent communication skills and an attention to detail • Two dogs under good command
For more information phone Manager, Rod Walker on 07 895 7008 or send CV and covering letter directly to: Rod Walker 611 Ngakonui Ongarue Road RD 4, Taumarunui 3994 Or e-mail Upoko@teurangab2.co.nz Applications close: Friday 7th July
www.no8hr.co.nz | ph: 07-870-4901
LK0088216©
We offer excellent remuneration for the right skills, good quality housing and a location close to town and schooling.
As a successful Operations Manager you’re wondering ‘what next’ • As an excellent leader of people you’re looking for an organisation that will do the same for you • As someone who knows their way around business you’re looking for a career move that will work for your personal circumstances as well as your CV And this is where Craigmore Sustainable New Zealand Limited comes in. With a reputation as a quality business, well set up, structured and delivering for its investors, this is an organisation that understands its core business, knows what success looks like and has the business structures and systems in place to deliver. What’s missing for the GM – Dairy is the support of a strong, practical leader to assist with the implementation of operational, tactical and strategic initiatives across the dairy farming business. To be successful in this kind of role you’ll have significant dairy experience, have lead multiple teams at an operations manager level and have credibility from grass roots through to the boardroom. From a technical perspective, farm systems modeling, maximising asset utilisation and managing and influencing change will be the kind of things you do in your sleep. You’ll be able to ‘read the numbers’ and ‘read the people,’ bring this together to optimise performance. You will be reporting to the GM – Dairy who is a straight shooter with the high work output, energy and determination… you need to be ready to not only foot it with him but also bring the innovation and operational excellence that will be the ultimate measure of success of this role. Sounding promising? Take more of a look at the Craigmore business by visiting www.craigmore.com. To learn more about the role, including a Position Description, log on to www.no8hr. co.nz (Ref #8RH890). Apply directly there, or for a confidential conversation about the role, contact the No8HR Business Manager, Toni Trusler on 07 870 4901. Applications close 9 July 2017.
SEE NEXT PAGE FOR MORE JOBS
The position requires a knowledge in animal husbandry, livestock grazing, fencing and general farm duties. The position requires the applicant holds a full driver’s license and has three (under control) working dogs. The Trust encourages and supports further training through PITO. If you have the above skills, can work unsupervised and you are punctual, conscientious and hardworking, please send a brief CV or details to: Farm Manager PO Box 384, Taumarunui 3946 Ph: 07 894 5987 or 0274 905 098 tot@farmside.co.nz Applications close Friday 14 July 2017
cash cow?
Know the like you
know the
Technical Manager – Animal Health • One role based in Lower South Island • One role based in Central North Island You know animals. You’ve got an in-depth technical knowledge of animal health, but you also have a sales record that shines. In fact, your skills are the perfect match for this role, and when you join the Ravensdown team, you’ll positively thrive. LK0088213©
Single accommodation is available on farm and an attractive remuneration package is offered. The farm is 30 minutes from the thriving rural community of Pio Pio. Accommodation will be shared from time to time.
LK0088259©
To be short listed for this role, candidates must: • Have experience moving stock • Have a minimum of three working dogs • Be able to use a hand piece • Be willing to help in all facets of stock and general work duties • Have a positive attitude towards Health and Safety
We are seeking a Farmworker to work on our farms located north of Taumarunui. The successful applicant will need to be able to work as part of a team, on the main farm as required, and individually as you take day-to-day care of our second farm, a 151ha effective farm block with 1500 stock units A well-maintained three-bedroom house is available on the bus route for local primary and secondary schools.
In this role, you’ll be sharing your knowledge with our Agri Managers and store operators so that they’re motivated and confident in selling animal health products. When you’re not imparting your technical expertise, you’ll be working on the sales side – looking for new pipelines, setting targets and strategies, and training sales and store staff to help them meet those targets. You’ll be experienced in the field, and have a real passion for NZ Farming. You know the local industry almost as well as it knows you. You’ll have an infectious enthusiasm for new products you believe in, and the ability to gain respect and get a team on board with your plans. Here’s your chance to join a company that’s making a direct contribution to the success of the NZ Agriculture industry, and to receive an impressive haul of personal benefits, from medical insurance, and superannuation to excellent training and development opportunities. If you know animals, and know sales, we know you’ll thrive in this role. Register your interest now by emailing your CV and cover letter to Nik Sheremetov, Kelly Services at nik.sheremetov@kellyservices.com Applications close Friday, 14 July 2017. Ravensdown is committed to a drug and alcohol free workplace. The successful applicant will be required to undergo a pre-employment drug test.
www.ravensdown.co.nz/careers
LK0088203©
www.farmersweeklyjobs.co.nz
Ag jobs at your fingertips
Reporting to the stock manager for day-today work plans, we are looking for candidates who have energy and enthusiasm, a positive attitude and a willingness to learn. We ask that you can clearly communicate to assist the stock manager in making sound management decisions. As a progressive station, the applicant will need to be willing to take on new technologies and learnings.
Training will be provided as required and support given in developing dog competencies.
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HEREFORD STUD FARM POSITION Excellent Career Development Opportunity Our client owns and runs a very successful Hereford Bull Breeding operation in the South Auckland / Northern Waikato region. The operation comprises a rolling to flat 120-ha home block and an 80ha runoff. It is currently wintering 210 breeding cows, 105 heifers, 65 stud bulls, 36 cull bulls and 6 sires. The successful applicant will be energetic, self-motivated, resourceful, and ready to begin working alongside the current owner. You will be able to demonstrate a great work ethic, preferably within the agriculture sector, be reliable and trustworthy and above all, have an affinity with animals. This role would suit someone who is wanting to advance their career in the beef breeding industry with a view to progressing to a management role in time.
Employment
for our unique business as a donor farm situated in the Waikato. Predominate duty; mustering stock to and from • Proven experience with cattle, horses and goats
classifieds@nzx.com – 0800 85 25 80
ANIMAL HANDLING 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 CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www. craigcojetters.com
FOR SALE
SELLING
SOMETHING? 0800 85 25 80
ANIMAL HEALTH www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).
ANIMAL SUPPLEMENTS APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz
ATTENTION FARMERS www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 brianmace@xtra.co.nz
We are a family run contracting and farming business. Specialising in big straw and hay baling, haylage and silage baling. We are looking for employees to start July until end of September with accommodation suitable for male/female. 45 minutes from London. Please email Gavin & Liz at: blackwaterbaling@tiscali.co.uk or telephone (UK) +44 7702 322203
• Good team of dogs
Tidy 3-bedroom accommodation.
www.fegan.co.nz
TRACTOR DRIVERS URGENTLY REQUIRED
facilities.
A competitive salary package including a three-bedroom house is available.
Register to receive job alerts and newsletters.
465ha sheep and bull finishing farm Tiniroto, Gisborne. Trademe reference# 1357437075 Email CV to: Svarncreswell@yahoo.co.nz
We are looking for a keen stockperson
• Be physically fit, honest and reliable
To apply call us now on 07 823 0117 or email jobs@fegan.co.nz
FARM MANAGER/GENERAL
Hill Country Stockperson
The owner is currently fully involved with the operation and will provide full support on a day to day basis. In addition, they are very willing to support the right person through external development courses and programs. If you have a desire to learn about stud breeding and intensive management of a beef breeding system, then you should apply for this role.
THE NEW ZEALAND FARMERS WEEKLY – July 3, 2017
LK0088264©
with good communication skills
LK0088223©
classifieds@nzx.com – 0800 85 25 80
Please email your interest along with your CV to: matahurufarms@outlook.com with verbal and written referees please Start date July 2017
LK0088272©
26
Classifieds
DAIRY SHED REPAIRS
DOGS FOR SALE
PRITCHARD MASONRY. Milking shed masonry repairs. Concrete or block. Solid plastering or pad placement etc. Workmanship guaranteed. Prepared to travel. Phone 06 346 5617 or 027 2740 306.
5-YEAR-OLD Huntaway dog under good command, very honest. Phone 027 410 2702.
DOGS FOR SALE YOUNG HEADING and Huntaways. Top working bloodlines. View our website www.ringwaykennels.co.nz Join us on Facebook: Working dogs New Zealand. Phone 027 248 7704. SIXTY BULL, DAIRY and sheep dogs ($500$2500). View on-farm or online. Deliver NZ wide. 30 day exchangeable. Trade ins welcome. Ask your neighbours! 07 315 5553. Mike Hughes.
MASSIVE MID WINTER DOG clearance blowout! 30 working dogs priced to clear under $999! Bulls, dairy, sheep, deer. Something for everyone. July 1st to 22nd. Don’t pay thousands elsewhere for similar dogs you can’t compare before buying! Best deals ever seen in one location! New dogs arriving daily from all over NZ. Limit two per person! Don’t miss out! 07 315 5553. Mike Hughes. HUNTAWAY PUPS 14 weeks old. Two well bred dog pups. Pedigrees available. $300 each. Phone 027 848 4408.
FOR SALE CLASSIFIEDS REACH EVERY FARMER IN NZ FROM MONDAY
DOGS FOR SALE
DOGS WANTED
WHATATUTU DOG SALE. Starts 12 noon, Saturday, 22nd July at Rangatira Station, Te Karaka. Email entries to: annieflood@hotmail.com with the following details: Heading or Huntaway, name, age, sex, colour and details of working ability.
HEADING, HUNTAWAY, handy, backing dogs or bitches, 2-6 years. Top money paid. Phone Ginger Timms 03 202 5590 or 027 289 7615. 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. BEARDIE OR BEARDIE Heading dog x pup from working parents. Phone 022 1362 771. Tirau.
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 2½ & 5-YEAR Huntaway bitches. 5-YEAR Heading bitch AND 3½-year Heading dog. Phone 022 698 8195. 5-MONTH-OLD Huntaway dog pup. Great nature, good bark. 06 388 0212 or 027 243 8541.
BUYING 250 DOGS NZ wide annually! Quick easy $ale! No one buys or pays more! Next North Island buying trip July 15th. 07 315 5553. Mike Hughes.
FERTILISER DOLOMITE, NZ’s finest Magnesium fertiliser. Bio-Gro certified, bulk or bagged. 0800 436 566.
FOR SALE SILAGE BALES. $60 per bale. Phone Richard 022 317 3905. Ruawaro, Huntly. WINDMILLS for water pumping. Ferguson Windmills Company. www.windmills.co.nz sales@windmills.co.nz Phone 09 412 8655 or 027 282 7689. BOOK AN AD. For only $2.00 + gst per word you can book a word only ad in the Farmers Weekly Classifieds section. Phone Debbie on 0800 85 25 80.
GOATS WANTED 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.
$2.00 + GST per word - Please print clearly Name: Phone: Address: Email: Heading: Advert to read:
Advertise in the NZ Farmers Weekly 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
PROPERTY WANTED HOUSE FOR REMOVAL wanted. Phone 021 0274 5654.
PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts. Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz
WANTED TO BUY SAWN SHED TIMBER including Black Maire. Matai, Totara and Rimu etc. Also buying salvaged native logs. Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954.
Classifieds
CLASSIFIEDS ADVERTISING
BIRDSCARER DE HORNER HOOF TRIMMER
LK0087473©
COPPERFIELD NURSERIES Ph: 07 552 5780 Fax: 07 552 4638
grant@copperfield.co.nz www.copperfieldnurseries.co.nz
Do you have something to sell?
To the Dog Owner Keep your dogs worm free DOG WORMING PROGRAMMES
Advertise in The NZ Farmers Weekly
For the control of all tapeworms eg. Taenia Ovis (sheep measles) Roundworms and hookworms • 3-monthly starting $34.00 per dog per year (Drontal plus) • Monthly starting $54.00 per dog per year (Droncit monthly & Drontal plus 3-monthly For more information contact John
OVIS CONTROL NZ LTD
Phone 03 439 5783 or 027 432 2641 Email mckeownjj@xtra.co.nz
LK0088271©
Price list available.
221 Snodgrass Rd RD 4 Tauranga
EARMARKERS
Call Debbie
0800 85 25 80 classifieds@nzx.com
SALE TALK
LIVESTOCK ADVERTISING PHONE NIGEL RAMSDEN 0800 85 25 80
TE KUITI SUPPLEMENTARY EWE FAIR FRIDAY 7TH JULY A/C TRIPLE FARMS LTD 1200 MA Ewes SIL Suffolk Ram 5/3 to 6/5
CONTACT WARREN CHARLESTON 0274 963 007
11 x 2 YR SIMMENTAL BULLS 30 x 1YR ANGUS BULLS 300kgs
STOCK REQUIRED STORE LAMBS 30-37kgs R 1YR BULL CALVES 150-230kgs 170-230kgs R1 YR HEIFER CALVES R2 YR HEIFERS 330-400kgs R2 YR FRIES & BEEF BULLS 400-500kgs 420-540kgs R3 YR STEERS
www.dyerlivestock.co.nz
Ross Dyer 0274 333 381 A Financing Solution For Your Farm E info@rdlfinance.co.nz
BRIAN ROBINSON LIVESTOCK LTD HAS THE FOLLOWING DAIRY CATTLE LINES ON QUOTE FOR IMMEDIATE AND LATER DELIVERY
FEILDING SALE Friday 7th July
A/C Bullock Hills, Pahiatua 125 R2 owner bred Angus and Angus/Hereford Steers
Friday 14th July
STOCK FOR SALE
After she woke up, a woman told her husband, “I just had a dream that you gave me the most beautiful diamond necklace. What do you think it means?” “You’ll know tonight.” he said with a smile. The woman could hardly think of anything else all day and she couldn’t wait for her husband to return home. That evening, the man finally came home with a small package and gave it to his wife. Delighted, she opened it excitedly to find a book entitled… “The Meaning of Dreams”
Jersey INDEXING in-calf heifers, 25, JERSEY due from 20 & JulyJERSEY to Jersey HIGH bulls, fully recorded, well grown. CROSS HERD
LK0088244©
Specialists in superior field grown trees, all varieties grown.
FOR SALE
LK0088169©
CITRUS TREES
27
Livestock
• Ayrshire cows, 13, recorded, July/August calving • Ayrshire yearling heifers, 50, fully recorded BW 143/50 PW 161/67 RA 100% • Friesian autumn-born weaner heifers, recorded Annual line of very quiet, well grown hill country (in top 10 All Breeds for NZ ) • Friesian autumn 2016-born heifers, recorded cattle sired by high index Mt Mable and Te Mania Jersey weaner heifers, CRL 2017 spring-born, AB bred, Angus bulls. • Many cows contracted to LIC for 2011 matings fully recorded, approximately 100 head for delivery Enquiries: Lance Crocker 027 542 8396 • Due to calve from after weaning Nov/Dec 17. 16-7-12, 6.5 weeks AB Jersey and Kiwi cross Jersey cows for delivery Sept/Oct after calving, • Estimated to be 420 cows after non recorded. pregnant, culls, older cows & 5% rejection Jersey herd, 120 cows, fully recorded, high production • Production last season 347kgs ms/cow, cows, high quality for delivery June 2018. 1000kgs ms/ha, on rolling to steeper 200 Poll Dorset Texel ewe lambs Friesian cows, 150,no fullymeal, recorded, from 450kgorMS herd contoured farm, palm kernel maize Run with ram. Av weight 46.6kg $150 ave, delivery Sept/Oct. fed. Friesian/Friesian Cross cows, 20 available from 200-450kg 100 Poll Dorset Texel MA ewes $170 • Young replacement stockpick also MS herd ave, recorded, delivery to suit purchasers. 40 Poll Dorset MA ewes $170 Bulls of all breeds and ages. Outstanding genetics & potential to be one of Doug Brown – North Otago for more details on two in-milkofsales coming upto the Watch countries leading suppliers Genetics Sept/Oct. the dairy industry for years to come. Full details Phone 027 222 3809 available. All enquiries to: Enquiries to the sole marketing Brian Robinson Ph 027 241 0051 agents: Neil McDonald Ph 027 218 8904 Selwyn DonaldBRLL Ph 027 437 8375 Brian Robinson Kevin Hart Ph 027 PH: 0272 410051 or291 07 5575 8583132 57 R2 owner bred Angus and Angus/Hereford Heifers
NETHERBY STUD COMPLETE DISPERSAL SALE Wednesday 5th July Frankton Saleyards 60 M/A PB Hereford Cows, VIC to Hfd Bull calving from 25th July. Reluctant sale due to change of farming policy. Vaughn Larsen 0278 014 599 or 07 848 2384
We have extended the buy 4 pay for 3 special until the end of the year as we’ve had a good response to the initial offer. You are welcome!
©2339CL
A reminder on how it works: Buy 4 ads and only pay for 3 What does this include? • Colour • Discussion around the content of your ad • The design of your ad • Proof to you for your approval for signing off
To be part of this deal – Call Debbie on 06 323 0765 or email classifieds@nzx.com.
LK0088257©
Gary Falkner Jersey Marketing Service PH: 027 482 8771 or 07 846 4491
LIVESTOCK ADVERTISING PHONE NIGEL RAMSDEN 0800 85 25 80
CORSOCK-COLVEND SHORTHORNS 13 Bulls available for sale Paddock sales ❱ Agent enquiries and inspection always welcome ❱ Can be used as a terminal sire. Will make off spring quiet ❱ Bulls with a quiet temperament ❱ BVD tested clear and vaccinated ❱ Tb status C10
Alan & Val Park Phone 07 894 6030, Taumarunui
LK0088159©
2017 Special Classifieds display advertising
LK0088240©
For Sale
MARKET SNAPSHOT
28
IN PARTNERSHIP WITH
Grain & Feed
MILK PRICE FORECAST ($/KGMS) 2017-18
6.50
6.68
AS OF 24/05/2017
AS OF 22/06/2017
8
Prior week
Last year
5 Dec 16
Feb 17 AgriHQ Spot Fonterra forecast
Apr 17
Jun 17 AgriHQ Seasonal
What are the AgriHQ Milk Prices? The AgriHQ Seasonal milk price is calculated using GDT results and NZX Dairy Futures to give a full season price. The AgriHQ Spot milk price is an indicative price based solely on the prices from the most recent GDT event. To try this using your own figures go to www.agrihq.co.nz/toolbox
6.50
5.35
335
334
340
NI mutton (20kg)
4.15
4.15
2.60
330
328
284
SI lamb (17kg)
6.50
6.50
5.10
Feed Barley
337
335
255
SI mutton (20kg)
4.20
4.20
2.50
236
Export markets (NZ$/kg) 8.73
8.84
7.80
222
221
UK CKT lamb leg
Maize Grain
410
410
338
PKE
221
220
236
* Domestic grain prices are grower bids delivered to the nearest store or mill. PKE and fertiliser prices are ex-store. Australian prices are landed in Auckland.
North Island 17kg lamb 7.0 6.5
Prior week
Last year
Wheat - Nearest
235
236
222
Corn - Nearest
203
203
199
APW Wheat
336
339
325
3000
ASW Wheat
331
333
304
2500
Feed Wheat
251
245
257
2000
Feed Barley
296
291
285
1500 Aug 16 Nov 16 Feb 17 C2 Fonterra WMP
PKE (US$/t)
5.0
CBOT futures (NZ$/t)
4.5
May 17 Aug 17 NZX WMP Futures
Ex-Malaysia
87
88
NZ venison 60kg stag
6006.0 5005.5 4005.0 300
4.5
Oct
115
Oct
Dec
Dec
Prior week
vs 4 weeks ago
WMP
2950
2950
3150
SMP
2100
2195
AMF
6930
Butter
5950
Last week
Prior week
Last year
Last year
2175
Urea
477
477
475
6.65
7.75
6900
6655
Super
309
309
314
35 micron
3.30
3.35
5.55
5950
5650
DAP
784
39 micron
3.25
3.25
5.55
702
702
5.5
Sep
Oct
Nov
Dec
Sharemarket Briefing JUNE was very positive for the NZX50, up more than 3%. It is the sixth consecutive month of gains and the biggest monthly gain this year. For the quarter the index is up 6.8%, a slightly better performance than in Q1. Top performer for the month and the quarter is a2 Milk Company, up more than 18% for the month and 33% for the quarter. Air New Zealand was up 15% for the month and 34% for the quarter. SkyCity is the weakest performer for June down more than 6% while Comvita is the weakest for the quarter, falling more than 30%. Economic highlights include migration, which continues to set records. Migration hit a record high in May with net migration hitting 73,300. The Reserve Bank kept the official cash rate on hold for the quarter and, after the June statement, we are expecting this to remain the case till at least next year, with the statement saying monetary policy will remain accommodative for a considerable time. First quarter GDP was lower than expected, however, the outlook for growth is positive and expectations are for second quarter GDP to be stronger. Market commentary provided by Craigs Investment Partners
$/kg
c/k kg (net)
250 Jun 14
Company Auckland International Airport Limited
7685
7563
Jun 17
YTD High
YTD Low
7.17
7.43
6.31
Meridian Energy Limited
2.91
3.02
2.57
3.92 11.57 8.17 3.32 8.35 5.23 3.3 25.9
3.93 11.67 10.86 3.35 9.05 5.31 3.3 26.36
3.32 8.5 7.42 2.94 8.12 4.65 2.08 17.47
Company
5pm, close of market, Thursday
Close
YTD High
YTD Low
The a2 Milk Company Limited
4.03
4.15
2.06
Cavalier Corporation Limited
0.34
0.81
0.33
Comvita Limited
5.96
8.65
5.15
Delegat Group Limited
6.6
6.72
5.65
Foley Family Wines Limited
1.36
1.5
1.2
6
6.4
5.88
Fonterra Shareholders' Fund (NS)
400 3.5 300
2.5Oct Oct
Dec
Dec
Feb
Feb
Apr
Apr
Last yr
Jun
Jun
Aug
Aug
This yr
Dollar Watch
Close
Listed Agri Shares
4.5
500
5‐yr ave
PKE spot
Spark New Zealand Limited Fisher & Paykel Healthcare Corporation Ltd Fletcher Building Limited Mercury NZ Limited (NS) Ryman Healthcare Limited Contact Energy Limited Air New Zealand Limited (NS) Xero Limited
Livestock Improvement Corporation Ltd (NS)
2.4
2.61
2.4
New Zealand King Salmon Investments Ltd
1.65
1.71
1.22
PGG Wrightson Limited
0.58
0.61
0.49
7
7.75
6.7
3.34
3.65
3.21
Scales Corporation Limited
S&P/NZX 10 INDEX
Jun 16
Top 10 by Market Cap
Sanford Limited (NS)
S&P/NZX 50 INDEX
Jun 15
Feed barley
4 w eeks ago
NZ venison 60kg stag
600
350
150 Jun 13
39 micron wool price
6.5
CANTERBURY FEED PRICES
NZ$/t
US$/t
This yr
Prior week
2750
13375
Aug
6.65
3000
10833
Last yr
Aug
Last week
3250
S&P/FW AG EQUITY
Jun
29 micron
450
S&P/FW PRIMARY SECTOR
Jun
(NZ$/kg)
3500
Latest price
Apr
NZ average (NZ$/t)
WMP FUTURES - VS FOUR WEEKS AGO
Aug
Apr
WOOL
* price as at close of business on Thursday
Jul
Feb
FERTILISER
Last price*
2500
Feb
5‐yr ave
NZX DAIRY FUTURES (US$/T) Nearby contract
6.5 $/kg
3500
South Island 1 7kg lamb
7.0
Australia (NZ$/t)
4000
6.0 5.5
INTERNATIONAL Last week
WMP GDT PRICES AND NZX FUTURES
Last year
6.60
Feed Wheat
Waikato (NZ$/t)
6
Last week Prior week
NI lamb (17kg)
Milling Wheat
PKE
7
Slaughter price (NZ$/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
$/kg
Dairy
Seeka Limited
5.1
5.5
4.3
Tegel Group Holdings Limited
1.22
1.46
1.05
S&P/FW Primary Sector
10833
10833
9307
S&P/FW Agriculture Equity
13375
13375
10899
S&P/NZX 50 Index
7685
7685
6971
S&P/NZX 10 Index
7563
7563
6927
THE steam has gone This Prior Last NZD vs out of the New Zealand week week year dollar as buyers migrate USD 0.7289 0.7265 0.7138 to the Australian currency. EUR 0.6373 0.6516 0.6432 Westpac strategist Imre Speizer said buyer AUD 0.9501 0.9632 0.9571 interest had shifted with GBP 0.5605 0.5725 0.5358 the exchange rate falling Correct as of 9am last Friday about 1c over the last week to just over AUD95c. Part of the attraction in the Australian dollar has been a 20% lift in the price of iron ore in the last two weeks. “It looks like it has finally found a bottom and has started to pick up again.” Another factor was indications the Reserve Bank of Australia was likely to lift interest rates in the next year, reversing widely held views its next move would be to cut then hold rates. Against the US dollar, Speizer said soft inflationary pressure appears to have altered expectations the US Federal Reserve would lift interest rates. US companies were cutting costs, which helped reduce inflationary pressure and that saw the NZ-US cross rate fall about US1c recently, from US74c to 0.7289 on Friday with an expectation it could fall to US68c by year-end. The European Union announced plans to unwind its policies of printing money and cutting interest rates, adopted since the global financial crisis. Speizer said a shift to more conventional policies pushed down the Euro-NZ exchange rate from €65 to 0.6373. Similar policies were signalled in Britain with the NZ-sterling exchange rate also easing 2p to 56.05p but Brexit could influence its implementation and market response. Neal Wallace
Markets
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017
CANTERBURY FEED WHEAT
NI SLAUGHTER STEER
SI SLAUGHTER LAMB
($/T)
($/KG)
MEDIUM-GOOD EWE LAMBS AT STORTFORD LODGE
($/KG)
($/HD)
5.70
330
6.50
Cattle & Deer BEEF Slaughter price (NZ$/kg)
Last week
Prior week
Last year
NI Steer (300kg)
5.70
5.70
5.45
NI Bull (300kg)
5.65
5.65
5.40
NI Cow (200kg)
4.50
4.50
4.40
SI Steer (300kg)
5.70
5.70
5.15
SI Bull (300kg)
5.20
5.15
4.90
SI Cow (200kg)
4.30
4.25
4.00
US imported 95CL bull
7.21
7.39
6.71
US domestic 90CL cow
6.98
7.04
6.61
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) $/kg
5.5 600 5.0 500
400 4.5 300 4.0
Oct Oct
Dec Dec
Feb Feb
5‐yr ave
Apr Apr
Jun Jun
Last yr
Aug Aug This yr
VENISON Slaughter price (NZ$/kg)
Last week Prior week
Last year
NI Stag (60kg)
8.65
8.65
7.70
NI Hind (50kg)
8.55
8.55
7.60
SI Stag (60kg)
9.10
9.10
7.70
SI Hind (50kg)
9.00
9.00
7.60
New Zealand venison (60kg Stag)
10 9 $/kg
NZ venison 60kg stag
c/k kg (net)
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
115
high lights
$100-$118
$2.77-$2.83/kg
Medium-good store lambs at Coalgate
R2 Hereford-Friesian heifers, 330-450kg, at Wellsford
Low numbers drive lamb prices higher
S
OUTH island lamb prices are giving North Island a run for their money, as schedule prices are at similar levels in both islands, and low numbers drive prices up. Store lamb numbers to auction around the country have dropped significantly through June at all yards bar Feilding, and prices have been driven higher as expectations are that this is the wind down to the end of the season. New season lambs are already on the ground in the early lambing areas, but it will be some time yet before these are on the market. NORTHLAND NORTHLAND Heavy rain the previous week drew more cattle to auction at WELLSFORD last Monday, though still only 380 were mustered up. A lift in numbers of R2 heifers was met by keen buyers from North Waikato, and prices firmed. The focus from the bench was on the shorter term cattle and good weighted Hereford-Friesian, 423-454kg, firmed to $2.79-$2.81/kg. Lighter Hereford heifers, 378-415kg, were consistent at $2.77-$2.82/kg, though were matched by the crossbred lines, with similar weighted Hereford-Friesian and Hereford-Jersey making $2.72-$2.84/ kg. The steer section was much smaller by comparison and prices steady, with the small beef dominant section making $2.88-$2.95/kg. Local buyers focused on the good quality R1 cattle, and beef and beefFriesian steers, 220kg plus, returned $800- $910, with $3.54-$3.65/kg common, while exotic-cross heifers, 255-299kg, met keen competition and sold for $765-$825. There was a lesser type element to the R1 pens though that were buyable in some people’s books, with steers
ALL SMILES: Johnny and Jimmy Murray at the Matariki Hereford and Woodbank Angus sale in the Clarence Valley. More photos: farmersweekly.co.nz
making $600-$685, and heifers, $430$585. A good clear day at the KAIKOHE sale last Wednesday gave the sale a perky feel, with a lift in interest across most classes, PGG Wrightson agent Vaughan Vujcich reported. Within the 450 head yarding, R2 Angus, Simmental and Herefordcross steers firmed to $2.80-$2.90/kg, though the mainly beef-cross heifer yarding stayed steady at $2.65-$2.70/ kg. The bull pens featured good quality South Devon, as well as Angus and Friesian, with all selling in a consistent range of $2.80-$2.86/kg. Good interest for R1 Hereford-
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Friesian steers, 180kg, saw these sell to $4.10-$4.30/kg, while beef and exotic, 230-250kg, returned $3.40$3.60/kg. Heifer numbers were low and all types traded at $2.85-$3.00/kg. Friesian bulls made $3.10-$3.30/kg, while the beef and beef-Friesian lines returned $3.20-$3.50/kg. A small offering of cows continued to sell well, with in-calf, and heavier types making $2.00/kg, and medium, $1.80/kg. AUCKLAND AUCKLAND Cattle numbers hit winter-low levels
Continued page 30
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Markets
30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017 at PUKEKOHE on Saturday 24th June, with numbers limited in all sections, auctioneer Pat Farrell reported. Prime numbers were limited to local trade heifers, 441-478kg, at $2.72-$2.82/kg, with finished 2-year steers, 500-582kg, trading at $2.70-$2.78/kg. Boner cows, 494-533kg, reached $1.78/kg. Quality store cattle were chased as good grass covers and buyers restocking increased competition. The best of the R2 steers, 400kg, made $2.97/kg, with a lesser line, 410kg, returning $2.80/kg, while 15-month, 325-336kg, fetched $2.98-$3.15/kg. The R1 pens mainly consisted of dairy-cross lines, and steers, 236-237kg, made $555-$740, and 103-109kg, $485-$575. Heifers only featured in the R1 pens, where small off-type crossbred, 96-230kg, sold for $455-$480. COUNTIES COUNTIES A run of frosts may have slowed grass growth in the region, but demand for store cattle at TUAKAU remains steady, Keith West of Carrfields Livestock reported. About 400 cattle were on offer last Thursday, and prices were similar to the previous week. The yarding included some bigger steers at 466-506kg, which traded at $2.80-$2.89/kg. R2 steers continue to sell well, with 385430kg making $2.91-$3.10/kg, and 360-388kg, $3.05-$3.14/kg. Top Hereford-Friesian R1 steers, 193300kg, sold to $855-$980. Medium steers, 170-191kg, earned $745$840, and lighter and later-born weaners, 130-166kg, $590-$700. A pen of Angus bulls, 480kg, fetched $2.80/kg, and R1 Friesian bulls, 177kg, $640. The heifer section included a nice line of R2 Angus, 375-425kg, which traded at $2.80-$2.90/kg, with the next cut mainly HerefordFriesian, sold to similar c/kg for $960-$1070. R1 heifers, 207235kg, returned $700-$780, and 182-205kg, $640-$700. Last Wednesday’s prime market drew a bigger yarding of around 600-head. The market for the heavier steers and heifers eased 5-6c/kg, but cow prices were firm. Heavy steers traded at $2.89$2.95/kg, medium $2.83-$2.88/kg and lighter types, $2.76-$2.81/kg. Heavy beef heifers returned $2.86$3.00/kg and medium, $2.77$2.84/kg. Lighter dairy-type’s made $2.22-$2.56/kg, and a small entry of beef cows $2.29-$2.42/kg. A shortage of numbers is keeping the boner market strong. Heavy Friesians sold at $2.00$2.24/kg, medium $1.82-$1.96/kg, and light, $1.54-$1.79/kg. A small offering of bulls earned $2.88$3.03/kg. Prime lamb prices lifted by $4$5 at last Monday’s sheep sale. The best of the lambs traded at $143$169.50, with medium fetching $126-$142, and lighter, $104-$123. Heavy prime ewes sold at $94$109.50, and medium $76-$90.
BAY OF PLENTY BAY OF PLENTY Typically the market at RANGIURU sees some upwards movement at this time of year, as buyers can see some light at the end of the winter tunnel. That was fully founded last Tuesday, with the regular buyers very active. R3 cattle numbers were low,
CLOSER LOOK: PGG Wrightson genetics specialists Callum McDonald and Callum Dunnett inspect Matariki bulls before the sale. More photos: farmersweekly.co.nz
but both steers and heifers sold to $2.90-$2.94/kg, with a line of seven Angus heifers, 521kg, making $3.03/kg. Prices lifted for R2 traditional and beef-Friesian steers. Angus, 298kg, sold to $3.12/kg, but most lines were Hereford-Friesian, 367396kg, $3.00-$3.04/kg. Autumn-born weaner cattle are making more of an appearance, though a few good lines of R1 steers also featured. The pick was 27 Angus steers, 227kg, $890, while the Hereford-Friesian, 165kg, sold for $775, $4.70/kg. Autumnborn Hereford-Friesian heifers, 78-124kg, returned $350-$460, though still sold for high c/kg. A small offering of run-with-bull cows saw Hereford to Hereford bull make $1305, and beefFriesian, $1310. Sheep numbers were winter low, with prime lambs the main feature, selling for $70-$138. Store lambs made $81-$94, and the better prime ewes, $103-$121. A line of 60 run-with-ram ewes returned $107. WAIKATO A deceptively springlike day brought an air of confidence to the FRANKTON sale yards last Wednesday, with plenty of visitors to the rostrum. Prices were fairly consistent with the previous week, though there was some small improvements seen on the better quality R2 and R1 cattle. However, there was a lack of buying power for the heavy steers, 500kg plus, and autumn-born calves. Heavy beef-cross steers, 600kg plus, made $2.84-$2.90/kg, with prices steady at $2.91-$2.93/kg for a consignment of Shorthorn, 464-521kg. All beef and beef-dairy heifers made $2.82-$2.84/kg. Good quality R2 steers are starting to push the $3/kg mark on a regular basis, though in general beef and beef-cross, 406-456kg, traded at $2.90-$2.97/kg. One line of Hereford-cross heifers, 323kg, managed $3.01/kg, but most were Hereford-Friesian, 441-502kg, at
$2.81-$2.85/kg. R1 Hereford-Friesian steers, 197-253kg, traded at $800-$920, and 10 Angus heifers, 210kg, $725. Lighter Angus-Friesian heifers, 130-173kg, were buy-able at $510-$605. The autumn-born calf market is gaining momentum, though it is still too early for some buyers, with prices fairly easy on the wallet at $392-$460 for heifers, and bulls, $400-$620. TARANAKI TARANAKI Another quiet day at STRATFORD last Wednesday saw a few different breeds feature, with Ayrshire in the bull pens, and a consignment of Shaver-cross heifers in. Good demand for R3 AngusFriesian steers, 584-644kg, saw these sell to $2.90-$2.95/ kg, while the better R2 lines are hitting and passing the $3/kg mark, with Hereford-Friesian, 473kg, making $3.24/kg, and Angus, 325kg, $3.10/kg. The remainder traded at $2.92-$2.95/ kg. Hereford-Friesian also proved popular in the 20-month pens, where 409kg managed $3.42/kg, while Hereford, 410kg, were not far behind at $3.32/kg. Bull quality was mixed, with a consignment of Ayrshire featuring in the R2 and R1 sections. The older lines sold to $2.62/kg, with 15-month and R1 lines making $450-$670. Friesian bulls, 469kg, sold for $2.87/kg. R2 heifer numbers were low, and this market is still sitting in a holding pattern. Shaver-cross, 400-436kg, made $2.75-$2.86/ kg, to be the feature in the R2 pens. R1 Hereford heifers, 135160kg, sold well at $565-$610, and Hereford-cross, 135-152kg, $510$565. Angus-Friesian, 125-154kg, returned $405-$600. Sheep numbers were low and mainly lambs, with mixed sex trading at $90-$96, and a small prime offering, $110-$118. POVERTY BAY POVERTY BAY A larger yarding of store lambs at MATAWHERO found the most
interest since early May. Longerterm types were particularly positive, though some of the heavier types didn’t sell all that well considering their weights. The majority were ewe lambs, which sold anywhere in the $98$109 range regardless of if they were heavy or medium sized. Medium and lighter lines went for $90-$98.50. The heavier males fared better though, making $114$120, easing to $103-$110.50 for the medium types, and $96.50 for two lighter pens. There were two lines of SIL Coopworth ewes, with the better line at $115 and the other making $91. The heavier prime lambs were $126.50-$135.50, and the next cut made $110-$120. Prime ewes were $77-$94. HAWKE’S BAY HAWKE’S BAY A sea of black greeted visitors to STORTFORD LODGE last Wednesday, as R3 and R2 Angus steers make an early appearance. The market felt very spring like, while small numbers of lambs also lifted. Prime ewes continued to flow last Monday, though with scanning now well though, time is limited on these numbers. The lamb section could have been sold twice over, given the amount of interest on the rails. The small size of the lamb yarding was contrasted by mainly big lambs and big prices, with the pick being 100 very heavy male lambs which sold for $170. All other male and ram lamb lines fetched $120-$150, and ewes, $110-$133. A bigger spread of buyers were there to greet the ewes and the better of the 2-tooths made $111- $116, with the remainder at $94-$108. Top mixed age achieved $125- $134, though the bulk of the offering sold for $110-$123. Medium-good types traded at $91-$107, with just a small tail end making $68-$78. Just one 915kg HerefordFriesian steer made up the cattle
sale, selling well at $2685, $2.93/ kg. Store lamb numbers continued their downward trend, with 2300 making up the biggest section of the 2700 yarding. The first row of store lambs last Wednesday recorded a number of lines over 40kg, with woolly male lambs deceptively heavy and the best buying on the day. These types traded at $120-$137, though top honours went to a line of mixed sex at $150. The rest of the male lambs were mediumgood, $103-$119, with mixed sex returning $101-$115. Ewe lambs made up the biggest portion, and medium-good lifted to $101-$125, nearly outpricing the heavier lines which made $112-$130. Breeding ewe numbers dropped, with all later lambing lines. Prices were steady, though smaller lines attracted more interest, with top price of $164 spent on 32 128% Romney’s, while a bigger line of similar ewes with 152% scanning made $161. Romney, run-with-ram, returned $130. Buyers were treated to a top notch line-up of Angus steers and Friesian bulls last Wednesday, and these drew the crowd, with Central Hawkes Bay and Manawatu dominating the market. Two top lines of R3 Angus steers, 527-543kg, fetched $3.14-$3.15/ kg, while six Angus heifers, 590kg, returned $2.84/kg. The R2 pens was where most of the action was, with prices lifting for the mainly Angus and Angus-Hereford line-up. Angus, 466-504kg, lifted to $1545-$1585, $3.29-$3.32/kg, with lighter Angus-Hereford, 413-485kg, reaching $3.28-$3.39/kg. The R2 bull market continued its strong run, with the feature being beefexotic, 457kg, $3.30/kg, while Friesian, 478-481kg, consistently made $3.10-$3.13/kg. Angus also featured in the R1 pens, with glimpses of where this market is headed. Steers, 267kg, made $1075, and heifers, 189239kg, $750-$955.
Markets
Small lines of Angus cows, incalf to an Angus bull, were also included, though headed for the processors with most lines trading at $2.37-$2.40/kg. MANAWATU MANAWATU There was another good selection of 15-month Jersey bulls at RONGOTEA last Wednesday, while calf numbers tapered off as autumn calving winds down, New Zealand Farmers Livestock agent Darryl Harwood reported. R2 numbers were light, with Friesian bulls, 400-635kg, trading over a wide range at $2.12-$2.57/ kg, and Jersey, 585kg, $2.43/ kg. Hereford-Friesian heifers, 380-525kg, sold to $2.20-$2.51/ kg, and Galloway, 335kg, $1.94/ kg. In the boner pens, Friesian and Hereford, 440-545kg, managed $1.73-$1.84/kg. In-calf Jersey heifers made $510-$835, and runwith-bull Hereford cows, $1020. The best quality R1 cattle were in the younger weaner pens, as opposed to the 15-month section, where the only real features were Jersey bulls, 149–211kg, $345$450, and Friesian, 188kg, $690. The first steers were found in the weaner section, with beef-cross and dairy-beef, 134-193kg, trading at $590-$640, though Friesian, 118-135kg, stayed well off the pace at $320-$350. Hereford-Friesian heifers had little weight at 102kg, and sold for $390, while beefcross, 185-235kg, proved to be some of the better selling cattle of the day at $550-$680. Calf numbers have dropped significantly, with just a handful of pens sold. Friesian bulls made $250, Hereford-Friesian $370, and crossbred, $50-$100. Weaner pigs sold for $72-$75, in-lamb ewes $56, and mixed sex lambs, $72-$125. A decline in sheep numbers was not unexpected at FEILDING last Monday, and prices lifted across the board. Cattle sale results were more mixed for a small offering of 90 head. Lambs prices lifted $5-$10, and a new record for the year was set when seven males sold for $188. Heavy types traded at $148-$188, and medium, $121-$153, while store types lambs returned $73$131. Ewe numbers reduced as scanning is well through but buyer numbers increased, and prices firmed $2-$4. The bulk of the ewes were medium types at $81-$119, while a good sized offering of scanned dry 2-tooths made $84$120. Steers were again noted for their absence in the rostrum, and just one heavy Hereford bull sold for $2081, $2.42/kg. Cows made up most of the sale, and results were mixed, with medium and lighter dairy lines softening to $1.87-$1.91/ kg, though heavy types firmed to $1.97/kg. Beef cows traded at steady levels of $1.97-$2.11/kg. Heifer numbers were limited, and prices reflected the mixed offering put forward. High yielding beef-Friesian, and Friesian-cross, made $2.71-$2.77/kg, though most were well off that pace. There was a large selection and variety of SIL ewes for buyers to choose from at Friday’s store sale, though results were quite mixed. Of the 24 pens offered the highlight by quite some distance
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017 was the very first, which had a good line of 5-year ewes, SIL twins, which went all the way to $211. The tone died down considerably after this, but was still above a week ago on average. In general anything SIL 160-200% made $140-$160, varying based on their condition. A handful of SIL singles were $130-$134. The store lambs were relatively varied in the returns they were making, but as a whole the market was near to a week ago. Weights and quality were good throughout the sale. Two cryptorchid lines topped the store lamb section at $148-$149.50, but no other males lambs were able to break $130. The bulk of the male lambs made $115-$125, with very few below $110. A special entry began the ewes lambs, proving to be the peak at $136. Anything else with breeding potential was at $122-$127.50, but the majority of the more standard ewe lambs made $106-$116, and only a handful made less than $100. The cattle pens were relatively empty again, though smaller numbers of R1 and R2 cattle were partially offset by a decent sized selection of R3 steers and heifers. The R3 steers easily lifted, with Angus, 500-595kg, selling to $3.10$3.30/kg, and any other similar lines down to 415kg making $3.35$3.40/kg. Traditional R3 heifers, 350-490kg, were mainly $2.80$2.85/kg, though a 440kg Angus line did make $1340, $3.05/kg. R2 steers were found good interest again, but were in all likelihood steady week-on-week. Angus, 415-470kg, were $3.35$3.50/kg. The R2 heifers and bulls were a mixed, with few numbers or standouts. There were plenty of R1 Angus steers to choose from, which traded to a steady market. The heavier end, 250-270kg, were $1020-$1040, $3.80-$4.15/kg, while the 195-220kg were $880$990, $4.35-$4.60/kg. R1 Angus heifers, 180-190, were $4.20/kg. The R1 bulls met made the same as the week before at $3.65-$3.75/ kg for 215-250kg Friesians. CANTERBURY CANTERBURY Throughput dropped across the board at CANTERBURY PARK last Tuesday, with the cattle sale over in less than 40 minutes, and sheep at their lowest level since Easter. Store lambs numbered 500, and with line sizes were very small, which made it difficult to make too many comparisons on such low numbers. There was however a definite lift in prices for medium types, with mixed sex making $104-$110, and one line of ewe lambs, $107, with the next weight range up making similar values. Top mixed sex made $114-$120.
A weightier line up of 740 prime lambs pushed the median price up to $133, with blackface lines trading at $125-$149. Whiteface prices varied more, and while the range was $110-$163, most made $120-$150. Ewe numbers dropped significantly to 590, and again competition heated up and prices lifting $5-$6. Two-tooth’s mainly traded at $122-$159, and despite a large portion of the mixed age pens being only medium-good condition, they still managed $111-$141, with heavy lines earning $145-$166. The prime cattle sale for 36 head was the shortest in memory as bids flowed freely and the 28 pens of cattle sold in under 40 minutes. The strong prices paid were not a true reflection of where the market is currently at though, as local buyers purchasing for butchers dominated. Heifers featured, and high yielding types, 500-670kg, sold to $2.99-$3.08/kg, with top dollar spent on HerefordFriesian. Steers, 520-600kg, made $2.92-$3.05/kg. The rest of the heifer section was dairy, and Friesian, vetted-in-calf to Jersey bull, 441kg, were purchased to farm on at $2.80/kg, while other lines, 398kg, returned $2.52/kg. A handful of store cattle were offered, with the only line of any significance being three R1 Hereford-cross heifers, 215kg, at $750, $3.48/kg. Sheep numbers improved last Thursday at COALGATE, while cattle hit winter low levels. Most store lambs came in from one property, and with keen bidding from the bench and good quality offered, 95% of the yarding of 1770 made $100-$118. An extra buyer in the prime lamb pens saw prices improve, and over half sold for $130-$159, with top lines reaching $160-$169, and $111 the lower limit. Ewes were the only section to reduce in number to 450 head, though given the time of year that is to be expected. The market could not maintain last week’s high levels as one regular buyer opted out of proceedings, and $92-$140 covered the majority, with a smaller portion lines selling to $144-$161. A total yarding of just 76 cattle were on offer, with almost an even split of prime and store. The bulk of the store section was a specially advertised consignment of late calving Angus and AngusHereford cows, which went under the hammer for $1400-$1570. Buyers could do little but meet the market if they wanted the prime cattle, as there were barely enough to go around. Export and local trade type steers, 440-555kg, traded at $2.85-$2.94/ kg, though
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there was more variation in the heifer pens, where most of the action happened. Higher yielding types, 465- 510kg, firmed to $2.80$2.91/kg, while lighter dairy-cross lines, 369-395kg, returned $2.70$2.82/kg. Four prime cows made up their entire section, and sold for $1.92$1.94/kg. SOUTH CANTERBURY SOUTH CANTERBURY Boner cow prices eased at TEMUKA last Monday, for the first time since mid-April, when cull cow numbers to auction peaked. The sheep markets however continue to climb, on the back of low numbers, good grass covers and lifting schedules. Store lamb numbers lifted marginally, with just over 800 of the better end from one property and the balance from the Chatham Islands. These two consignments added some real weight to the pens, with the yarding very heavy, and few lines selling under $100. Medium-good mixed sex lifted to $100-$111, with very heavy lines trading at $109$137. Good ewe lambs were hot property, and sold for $116-$128, while two lines of males traded at $113 and $133. Prime lambs also reaped the reward of limited numbers and lifting schedules, with the median price climbing a further $3 to $136, and most lambs trading at $120-$160. A slightly bigger yarding of ewes was easily absorbed by a keen bench, and very heavy types managed to sell to $161-$178, while most were good types at $130-$157, with just small lines selling under $110. Boner cow prices came back, though the yarding was made up of small lines from different farms, with quality mixed. The previous week’s lift could not be sustained, and few lines cracked $1.90/kg. Friesian, 520kg plus, made $1.77$1.84/kg, and 422- 475kg, $1.62$1.71/kg. Good weighted beef cows sold to strong demand, and managed $2.10-$2.19/kg. The prime pens lacked numbers, and in particular local trade lines that are proving popular at present. Steers sold on a steady to firm market, with traditional, 575kg plus, firm at $2.95/kg, though the range was $2.92-$3.03/kg. Plainer HerefordFriesian, and Friesian, 485-545kg, returned $2.71-$2.84/kg. Good yielding heifers, 475550kg, made $2.80-$2.88/kg, regardless of breed, while all bulls sold in the $2.75- $2.81/kg range. OTAGO OTAGO The sheep market at BALCLUTHA seems to have found its happy place for the time being, with prices very steady for store
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lambs and prime ewes, with prime lambs easing just slightly last Wednesday. Store lambs sold at identical levels to the previous week, with tops making $95-$106, medium $85-$92, and light lines, $72-$82. Also selling alongside the store lambs were capital stock, in lamb Romney ewes, which had a good following and sold exceptionally well. One-shear ewes made $212, 2-shear $196, 3-shear $185, and 4-5-shear $173. Prime sheep numbers were at moderate levels, and lambs eased marginally to $130-$150 for heavy, $115-$125 for medium, and lighter types, $100-$110. Ewe’s however held their value, with heavy lines achieving $120-$140, medium $100-$115, and light, $78-$95. Rams traded at $75-$79. SOUTHLAND SOUTHLAND Sheep numbers were moderate at LORNEVILLE last Tuesday, with most of the action in the store lamb pens. The cattle pens were also quiet, with the sale well and truly in winter mode. Store lamb prices held, with the top lines making $88-$105, and medium $75-$85, and light, $40$70. A consignment of quality ewe lambs traded at $126-$131, while a line of in-lamb mixed age Romney ewes sold well at $171. Prime lamb prices reflected a good quality line up, with heavy types selling to $153, medium $122 and light, $91. Just over 410 prime ewes were offered, and heavy types held last week’s good market at $130-$158, while medium lines firmed to $100$125, and lighter, $70-$93. With scanning underway a larger number of 2-tooths are coming forward, and heavy types made $118-$123, medium $60-$85, and light, $40-$44. Small numbers also dominated the cattle section, with good steers, 500kg plus, steady at $2.80$2.90/kg, and 450kg, $2.50-$2.70/ kg. Dairy heifers continue to fill most pens, and those 360kg returned $2.10-$2.20/kg. Cow weights were more mixed than seen of late, with very heavy types, 600kg plus, earning $1.90-$2.00/ kg, and 500kg, $1.70-$1.90/kg. Lighter types, 400-500kg, returned $1.60-$1.70/kg. Store cattle numbers were very low, but offered up R1 Herefordcross steers, 215kg, at $800, $3.72/ kg, heifers, 180kg, $660, $3.66/kg, and weaner Hereford-cross bulls, 140kg, $530. The first of the scanned dry ewes came forward at CHARLTON last Thursday, with prices fully firm, PGG Wrightson agent Greg Clearwater reported. A medium yarding of store lambs sold to steady demand, with the top lines better quality and achieving $104, while medium types made similar values to the previous week at $87-$93, and light, $75. The top prime lambs did not quite have the weight, though still sold well at $150, while medium types returned $117-$125, and lighter, $105-$100. Scanned dry ewes added more weight to the pens, and coupled with good schedules prices, the top line sold right up to $160, with medium types firming to $110$120, and lighter, $80-$90. Rams traded at $75-$85.
Markets
32 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 3, 2017 35 MICRON WOOL
SI SLAUGHTER STEER
NI SLAUGHTER LAMB
($/KG)
($/KG)
R2 ANGUS STEERS, 465-505KG, AT STORTFORD LODGE
($/KG)
($/KG LW)
3.30
5.70
6.60
3.30
Trade flux creates doubt Neal Wallace neal.wallace@nzx.com
A
TRADE deal giving United States beef exporters access to China could have long-term repercussions for New Zealand. US beef had been shut out of China for 13 years but Rabobank’s Beef Quarterly report warned while access came with several conditions that required management changes, over time US exporters would be competing for the same consumers as NZ. “Their target consumers are probably the same target consumers as NZ’s focus, the higher value consumers,” Rabobank animal protein analyst Blake Holgate said. China required US beef to be fully traceable, have no artificial growth implants or use of hormones and all products had to be tested for ractopamine. “China has a strict requirement of full traceability for exporters, a major hurdle for the US in regaining direct market access as there is no industry-wide traceability in the US.” Third-party verification of animal origin and the feed yard used in the US was acceptable to the Chinese. China was NZ’s second largest beef market with first quarter this year
UNCERTAINTIES: Issues in the United States, India and Brazil could all affect prices on world beef markets, Rabobank animal protein analyst Blake Holgate says.
exports rising 28% on to the corresponding quarter last year. Holgate said a series of scandals derailed the push by Brazilian beef exporters into markets such as the US. Officials investigated irregularities with meat inspection, prompting import bans, which had since been lifted. Its largest beef processor, JBS, was then caught up in a political scandal.
“What these couple of scandals have done is undermine the confidence of producers and consumers in Brazil,” Holgate said. Now the US had again suspended Brazilian imports over quality concerns. Holgate said he was still trying to determine the exact reasons for the ban and its implications. Brazilian cattle prices had fallen on the back of
that uncertainty, which was likely to slow production growth on the back of that improved access. Another issue affecting world beef production was the Indian Government’s ban on the sale of cattle, including buffalo, in notified livestock markets for non-agricultural purposes. Holgate said that could have an enormous impact on the sale of livestock for slaughter from what was the world’s largest exporter of bovine meat. Its main markets were the Philippines, Malaysia and Vietnam but Holgate said there was some doubt on how individual states would respond or conform to the national directive. On the NZ market, strong global demand and tightening domestic supply were expected to support farmgate prices at or above current levels for the 201617 season. Helping underpin that were high US prices on the back of low exports from Australia as that herd recovered from drought. Prices for lean trimmings, for example, were 12% above the five-year average for this time of the year. NZ was the largest beef exporter to the US for the first quarter of this year despite volumes to the market being 13% lower. US production was expected to increase later in the year, which could put pressure on prices.
high lights
$173-$212
$100-$115
Capital Stock, inlamb Romney ewes at Balclutha
Medium-good mixed sex store lambs at Temuka
The big boys play hard at bull sales THE All Blacks and Lions haven’t been the only big guys in the spotlight through June, with stud bull sales in full swing around the country. Bulls have been paraded in front of potential buyers nationwide and what Suz Bremner amazes me is the sheer volume of sales AgriHQ Analyst that have taken place with 70 listed on the AngusNZ website and a further 60 on the NZ Hereford Association page, not to mention all the other breeds around. It is interesting to note that there are a few more Hereford studs compared to Angus in the South Island, which are there to service the dairy industry while the North Island is still swaying more to the traditional breeding herds, with a larger number of Angus sales recorded. Early results showed that prices were at least $1000 up on 2016 levels, which was hardly surprising given the high demand and good returns for both traditional and beef-dairy cross cattle, both at auction and the processors. However, while there are more buyers in the market this year, they are still being selective with some sales not as successful as last year. From all the results I could glean from various sources (Farmers Weekly Bull Results, Angusnz.com and the Hereford NZ association website being the main sources) average prices were stronger in the South Island, with Angus at $7940, compared to the North Island average of $7250 while Hereford averages were much closer at $6400 in the South and $6340 in the North. Gisborne sales last week were strong with Angus prices averaging up to $15,000 and Herefords to $7000. Prices for Hereford in the South Island were generally $1000-$1500 up on 2016 with North Island sales up $1000. Strong Angus sales through Hawke’s Bay and the lower North Island saw the biggest lift in prices with most studs recording a $1500-$3000 increase, which did also flow through into the South Island sales. While not all sales have been completed, it is safe to say that the stud bull sale season has been a huge success with vendors well rewarded for their hard work. suz.bremner@nzx.com
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