C
NZ science running on empty
Richard Rennie TECHNOLOGY Research
SCIENTISTS and researchers throughout the agri-sector and beyond are running on empty from today, July 1, as funding for the National Science Challenges comes to an end with no immediate prospect of funds to take its place.
Set up a decade ago, the 11 Challenge areas have received a total of $680 million, with as much as $97m in peak years, and $64m this year.
National Science Challenge high value food and beverage director Joanne Todd said her team of researchers and scientists have undertaken to continue operating over coming months, despite having no funds allocated beyond last week.
“Of course this can’t last, and we do face the risk we lose talented staff, but this is the level of commitment: they have undertaken to continue with the work they have been doing,” she said.
Her unit has typically received about $5m a year and that funding helped deliver some notable success stories from the 60 businesses it partnered with in conducting research on 137 products.
Higher profile successes
included identifying the sleeppromoting qualities of Zespri kiwifruit, work with Sanford’s on greenshell mussels’ impact on joint pain, and validating Torere Macadamias’ claim of high nutrient content in its Gisbornegrown nuts.
Her unit and other science challenge groups are holding their collective breath on the outcome of a full-scale review being conducted on the future of NZ’s science funding.
The review is being chaired by Sir Peter Gluckman, heading a body of nine members with their first summary due out in coming weeks.
But Todd said this leaves several months at least when no definitive funding is being provided to tide the units over until the review’s recommendations play out.
“We run the risk of losing some of our brightest scientific minds to countries with better funded research programmes,” she said.
She called for an interim lifeline of $5m annually over the next 10 years to ensure research and development could continue with the 18 institutions involved.
Lincoln University professor Jon Hickford said he fully expects that shutting up shop will be the only option for many Challenge units.
Hickford said the government has offered the sector no interim
Continued page 3
Spooked forestry set to plant 41% less
Land converted into new forestry planting next year could be 41% less than in 2022, the first decline since 2019, according to a survey. It is thought fallout from Cyclone Gabrielle and government tinkering with the Emissions Trading Scheme have deterred investors.
NEWS 3
SECTORFOCUS
Panel commissioned by govt to review NZ’s methane reduction targets.
NEWS 5
Offshore owners dig in for future
Craigmore Sustainables is predicting its horticulture business to grow from $400 million total assets to $650- $700m over the next 18 months.
HORTICULTURE 18-21
Exporters face the greatest disruption to shipping services since covid.
NEWS 7
Things are clearly not well with our Air Force, writes Ben Anderson.
OPINION 15
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27-28
News in brief
Emissions reduction
The government and the Bank of New Zealand are committing $8 million to the AgriZeroNZ programme to reduce agricultural emissions.
This sees BNZ become a shareholder in AgriZeroNZ, a public-private joint venture to accelerate the development, commercialisation and uptake of practical tools to reduce agricultural greenhouse gas emissions. This takes the overall investment in AgriZeroNZ to $191m. Half that of that funding is Crown investment.
Levy vote
Fruit and vegetable growers have voted overwhelmingly to continue supporting Horticulture New Zealand.
36
RISK: The head of Massey University’s School of Accountancy, Claire Matthews, says it is hard to argue that farm loans are not inherently more risky than residential mortgages.
In the recent levy referendum, 97% of growers, by value, voted to continue support of HortNZ, while 87% of growers by number voted to continue paying the levy. HortNZ board chair Barry O’Neil said growers provided HortNZ with a strong mandate to continue advocating for them.
MPI investigation
The Ministry for Primary Industries is investigating a Southland farmer over poor winter grazing practices that required seven heifers to be euthanised.
MPI animal welfare officers visited the farm near Riverton, where they found about 2000 cattle in substantial mud and with insufficient water. The MPI said five heifers were euthanised on advice from private veterinarians. Another two were euthanised by the farm manager. An assessment of all the cattle is being carried out.
Avocado growth
Global avocado consumption and import demand are expected to grow, creating opportunities for New Zealand growers to export a quickly expanding crop.
Industry forecasts are for 75,000 tonnes of NZ production in 2031, three times the harvest in 2023-24 and twice that of the previous season, according to a Rabobank report.
funding to carry research over until any recommendations of Sir Peter’s review are in place.
“Science Minister Judith Collins has acknowledged it is likely that some older scientists will finish their careers as a result of this, but she believes there will be plenty of young scientists ready to take their place.
“This just simply is not the case. It takes 10 years for a scientist to reach a point they are contributing. Collins had six years in opposition to come up with options.”
He said there is little in terms of tenure or remuneration to make NZ’s research sector an appealing one for young potential scientists to want to engage in.
He also pointed to the positive outcomes delivered by other Science Challenges, including Our Land and Water.
“This has had a real impact upon understanding land-based activity’s impact upon water quality. We are vastly better off thanks to OLW, particularly around phosphate.”
Professor Troy Baisden, copresident of the NZ Association of Scientists, described the Budget as “worse than a nothing-burger for science” .
Other than some funding for Geonet’s seismic hazard model there were no bailouts for areas of national importance that the Science Challenges supported.
“Given the composition of the coalition, farmers might have hoped for some new research, but I can’t spot it,” Baisden said on Budget day.
The loss of about $70m a year in funding to the Science Challenges also risks pushing NZ even further down the ranks for national science investment as a percentage of GDP.
Hickford said at 1.47% NZ already sits below the OECD average of 2% of GDP spend on science.
The loss of the $97m in National Science Challenge funding will push NZ to 1.37%, equal to Lithuania and behind Turkey.
MORE:
For
Growing wary, forestry set to plant 41% less
Neal Wallace NEWS Forestry
THE area of new forestry planting next year could be 41% less than in 2022, the first decline since 2019, according to a Ministry for Primary Industries survey.
Fallout following Cyclone Gabrielle and government tinkering with the Emissions Trading Scheme (ETS) are deterring investors.
In 2022, 88,000 hectares of farmland were converted to forestry. For 2023, the MPI’s afforestation and deforestation survey indicates plantings of 68,500ha.
Forecast plantings for this year are 51,800ha, although only 85% was confirmed when the survey was done.
Nearly 90% is expected to be radiata.
A second MPI survey on seed stock production for 2023 planting estimates 113,000ha of both new and replanting harvested areas were planted last winter, all but 2000ha in Pinus radiata.
The MPI afforestation survey found planting expectations for 2024 were blunted by ETS policy uncertainty, the Overseas Investment Office (OIO) approval process of overseas investors, local government regulations, difficulty obtaining resource consents, the National Environmental Standards for Commercial Forestry and tree stock availability.
Forest Owners Association chief executive Elizabeth Heeg said the decline in planting intentions were of concern and reflect a lack of confidence among forest owners.
“They are looking for policy certainty. At this stage they are not sure about the planting
environment. When they buy seedlings they are unsure where they can plant them.”
It is also of concern given the area of forestry is less than in 2004, and considering the role of forestry in carbon sequestration.
She welcomed recent legislative change, such as the repeal this week of Log Trader and Forestry Adviser legislation, which required people in those roles to be registered.
She wants to work with the government to get stability around the ETS, improve the OIO process and work with rural communities to address concerns about the spread of forestry.
“The debate has become them and us when it needs to be us and us.”
AgriHQ reports that log and timber prices are flat and awaiting a market rebound while the sector also deals with rising shipping costs and a strengthening exchange rate.
The MPI survey was done in late 2023, when the NZ Unit price was between $60 and $75/NZU.
The spot price this week has varied between $45-$50/NZU, but for the second time this year the carbon auction failed to attract a bid.
Two trends for 2024 planting intentions were identified: those accelerating their afforestation intentions because of concerns about pending legislative change, and those who have slashed their planting intentions since last year.
Comments from respondents in the former group include wanting to plant everything they can in case the ETS rules changes or before the government imposes land use restrictions.
Comments from respondents in the latter group included: “The phone is dead for greenfields afforestation”; “Interest in
They are looking for policy certainty ... when they buy seedlings they are unsure where they can plant them.
Elizabeth Heeg Forest Owners Association
afforestation has waned with government tinkering with ETS”; and “All our clients have been spooked by the ETS shenanigans over the last 12-24 months.”
The MPI estimates 73% of exotic afforestation from 2019 to 2023 was in the North Island, with 40% of that on the east coast, in Hawke’s Bay and southern North Island.
It notes that the largest change between 2022 and 2023 planting intentions was the reduction of new forestry on the North Island’s east coast.
“This is likely to be a consequence of Cyclone Gabrielle.
However, there is no reduction in the percentage of intended afforestation in Hawke’s Bay, another region affected by Cyclone Gabrielle.”
The survey revealed tighter forestry rules introduced by the Otago Regional Council and Environment Canterbury have scuppered some planting plans there.
An extra 1200ha of indigenous afforestation nationally is likely to be planted between 2023 and 2024, with 9000ha expected to be planted this year.
This data is based on planting intentions from those wanting to register land they are reverting back to native vegetation with the ETS.
The increase reflects the time required and delays in the registering the land from last year.
The intended area of mānuka planting has declined due to lower mānuka honey prices, with 2100ha tagged for planting this year, down from 3500ha last year and 2800ha in 2022.
Exporters take over Taste Pure Nature
Neal Wallace NEWS Food and fibre
MEAT exporting companies are taking over the Taste Pure Nature marketing programme established by Beef + Lamb New Zealand.
The Meat Industry Association (MIA) will lead the programme with meat companies designing, governing and funding activity using the brand and associated programmes.
BLNZ chair Kate Acland said the levy body will transition to a supporting role, having established Taste Pure Nature in 2019.
She said the brand has achieved its aim of showing global red meat consumers how their meat is produced after earlier research
revealed they knew little about NZ farming systems.
“There are growing concerns about the environmental and animal welfare aspects of red meat production, and pressure to reduce meat consumption,” she said.
“At the same time, we are seeing growing interest in natural, grassfed, hormone-free, antibiotic-free meat, which is the way NZ farms.”
SUPPORT: BLNZ
chair Kate Acland says the levy body will transition to a supporting role, having established Taste Pure Nature in 2019.
Research also found that country of origin is the primary factor when a consumer considers what food to buy and it is also a shortcut to understanding and trust.
Acland said surveys show Taste Pure Nature has helped address some of those consumer concerns.
A quarterly brand survey last year found more United States and Chinese consumers are aware of,
and looking for, NZ grass-fed beef and lamb.
MIA chair Nathan Guy said exporting companies will collectively lead the marketing programme.
“We believe this new phase will help unlock greater value for our brand and the NZ red meat sector as a whole.”
Under the agreement, BLNZ will retain ownership of the intellectual property and companies will take the lead in using the brand in marketing programmes. A governance board, on which BLNZ will have a seat, will be established to manage the investment.
Acland said BLNZ and MIA will each contribute $2 million to the programme over three years to maintain its momentum.
EMPTY: National Science Challenge high value food and beverage director Joanne Todd says her research team are committed to continuing their work, despite money running out at the end of June.
the full interview with Joanne Todd listen to Farmers Weekly In Focus, wherever you get your podcasts.
CONCERNED: NZ Forest Owners Association chief executive Elizabeth Heeg says data showing a sharp decline in new forestry planting reflects a lack of confidence among her members.
Study puts Brussels sprouts back on menu
Richard Rennie TECHNOLOGY Food & fibre
BRUSSELS sprouts are the vegetable most often avoided by parents keen to enjoy peaceful family dinners free of food strikes. However, thanks to groundbreaking work by AgResearch scientists, the dreaded sprout may be made far more appealing to palates young and old.
Scientist Dr Raise Ahmad, with his team Jihan Kim and Scott Hutching, is working with the Australian Meat Processor Corporation to extract a flavour peptide from beef offal that could bring higher value to a low-value waste stream, and be a healthy flavour enhancer.
“Kokumi” is being labelled nature’s taste enhancer to sweet, salty and umami tastes, while also turning the bitter profile found in the likes of Brussels sprouts into an appealing caramellike taste.
“Kokumi flavour peptides are really just little pieces of proteins that bind and activate the calcium-sensing receptors on our tongue and create a distinct kokumi sensations of mouth fullness, continuity and aftertaste in our brain,” Ahmad said.
Fellow scientist Dr Santanu DebChoudhury said kokumi lends a greater depth of flavour, taste and richness to food.
Deb-Choudhury and his team are no strangers to getting deep into the molecular nitty gritty of what constitutes tasty food.
He has also worked with development chef Dale Bowie using technology, including mass spectrometry, to determine the optimal temperature for cooking steak to ensure the best
combination of aroma, taste and texture. That temperature is 58-62 °C.
The researchers describe the process of identifying and developing kokumi as a three-step one.
“We are firstly applying cutting edge mass spectrometry techniques to determine if the peptides have this property,” DebChoudhury said.
The next stage uses a receptor assay test developed by Ahmad to see if the peptides generate a
When kokumi was added to the Brussels sprouts, people tasted a caramelised flavour rather than the customary bitterness.
Dale
Bowie Development chef
response, and the third involves testing on consumers with development chefs.
This has again involved Bowie’s Development Kitchen in Wellington, a partnership he established with fellow chef Shepherd Elliott.
In the consumer trials using Bowie’s recipes, dishes were cooked with and without the kokumi added, and taste testers’ responses recorded.
“People were blown away by what they were tasting. [When kokumi was] added to the Brussels sprouts, they tasted a caramelised flavour rather than the customary bitterness.
“Less salt, fat and sugar needed to be added to dishes with kokumi achieve the same level of taste,” Ahmad said.
“It really is just the elevation of the flavours, the complete mouthfeel, really the excitement of being able to taste some of the
MIRACLE WORKER: Kokumi is being labelled nature’s enhancer of sweet, salty and umami tastes, while also turning the bitter profile found in the likes of Brussels sprouts into an appealing caramel-like taste.
TASTIER: AgResearch scientist Dr Raise Ahmad says the use of kokumi in food gives flavours greater mouthfeel and enhances tastes.
flavours that you didn’t expect to taste,” Bowie said.
The next stage is discussion with collaborative partners on the ability to scale up production and commercialise kokumi output.
Ahmad said there is no shortage of waste offal from New Zealand’s processing stream, while the food safety aspects are also minimal given the natural kokumi peptide’s production from offal.
“You are not faced with the challenges of artificial flavour enhancers such as MSG, in terms of risk.”
Kokumi comes under an ever-broadening portfolio of food development technology AgResearch scientists have been working on.
Their work in identifying the optimal cooking point for steak also unlocked greater understanding on the potential combinations of food ingredients, based off their molecular compatibility.
They have also used artificial
intelligence technology to develop flavour combinations that are not typically considered, looking at the molecular composition of ingredients.
Collecting a huge number of recipes and ingredients, they use AI to start off pairing conventional ingredients, then go beyond to look at ones not normally considered. Such combinations included a chicken and chocolate dish that was surprisingly popular with its sample consumers.
The researchers are also working with potential shareholders on applying kokumi to the rapidly growing ready-to-eat sector as a meal ingredient.
“We have also started analysing what provides the sense of ‘freshness’, something that is more of a feeling than a taste. There are aromatic compounds in food that provide ‘feel’ of freshness,” Ahmad said.
“Combined with kokumi, there are some exciting opportunities out there.”
Nicola Shadbolt to chair methane review
Neal Wallace NEWS Emissions
MASSEY University’s Nicola Shadbolt is to chair an independent panel commissioned by the government to review New Zealand’s methane reduction targets.
Climate Change Minister Simon Watts and Agriculture Minister Todd McClay said the panel will report back by the end of the year with evidence-based advice on what NZ’s biogenic methane target should be to ensure no additional climate warming.
McClay said the panel will complement the Climate Change Commission’s review of the 2050 targets this year while helping to inform the government’s response to that advice.
“The government is committed to meeting our climate change obligations without shutting down Kiwi farms. We need to make sure our targets are fair and sustainable,” he said.
Farming groups have welcomed the announcement.
They described the panel as credible and its members as respected experts.
Federated Farmers president Wayne Langford said the review is long overdue, describing the current targets as “divisive and highly political” with “no credible science to underpin them”.
“They’re completely unrealistic, totally unaffordable, and go much further than is needed to stop farmer’s contribution to further warming.”
MANAGEMENT: Nicola
agribusiness
Current methane targets require a 10% reduction by 2030 and 24%47% reduction by 2050, which the federation has consistently opposed.
“The government’s own
modelling showed that achieving a 10% methane reduction by 2030 could see our sheep and beef production reduce by more than 20%.”
Beef + Lamb NZ chair Kate Acland said many farmers recognise their role in addressing climate change, but they want fair targets.
“We’ve long argued that the targets should be based on no additional warming and this review will enable NZ to take a proper look at what the targets should be.
“Farmers want to feel confident that targets are underpinned by the appropriate science, where methane is being asked to do what’s being asked of other gases, which is to achieve no additional warming.”
Shadbolt, a professor of farm and agribusiness management
The government is committed to meeting our climate change obligations without shutting down Kiwi farms.
Todd McClay Minister of Agriculture
at Massey, will be joined by David Frame, a physics professor from Canterbury University, Sara Mikaloff-Fletcher, a carbon chemistry and modelling scientist with NIWA, Laura Revell, an associate professor of physical and chemical sciences at Canterbury University and Bill Collins, a professor of atmospheric chemistry and earth system modelling at the University of Reading.
Hoggard sets out live-export process timeline
PUBLIC consultation around the reinstatement of livestock export by sea is set to go live in the coming months.
Associate Minister of Agriculture Andrew Hoggard has confirmed that the government is progressing its commitment to reinstate livestock exports by sea with a consultation process set to start before September.
“I acknowledge there is significant interest in this work, and I want to give stakeholders, and the public, a clear timeline for change,” Hoggard said.
He said live exports will only commence once strengthened welfare standards are developed and in effect to protect New Zealand’s reputation as a responsible exporter and international trade obligations.
“My officials are preparing a discussion document that will be released publicly before September,” he said.
Reinstating livestock exports by sea would require an amendment to the Animal Welfare Act 1999. Strengthened welfare standards will be developed before the trade returns, Hoggard said.
“I understand animal welfare is a top priority for all Kiwis. It’s vital, and in fact non-negotiable, that the new standards are in place before trade is restarted.
“Hearing a range of voices will help us to understand how we can best achieve this.”
Following consultation Hoggard said he intends to seek cabinet decisions before the end of the year and introduce legislation to the house in early 2025, followed by updated regulatory standards.
The road to reversing the ban promises to be anything but smooth, however.
Last Tuesday a petition signed by more than 57,000 people calling for the government to keep the ban in place was handed over to Parliament.
It was accepted by former agriculture minister Damien O’Connor, who put the ban in place when he was in office.
Live Export New Zealand (LENZ) independent chair Glen Neal said the industry welcomes the government announcement.
“It is good news and we look forward to working with officials to get the rules right for the economic and animal welfare outcomes we all seek.
“We are working with the Ministry for Primary Industries to ensure the rules governing the export of live animals overseas reflect the high expectation New Zealanders have around animal welfare.
“The government laid out a clear signal around that [public concern]
and new gold standard regulations address that concern.
“The job ahead for LENZ is to pull the sector together to make sure regulation is grounded in the realities of farming and trade and in line with world standards
for the confidence of the wider community,” Neal said.
Live exports have earned NZ up to $400 million a year, with 5000 farmers across all regions of NZ having supplied breeding cattle for export in the 10 years to 2021.
Shadbolt is a professor of farm and
management at Massey University.
Annette Scott NEWS Exports
WELFARE: Reinstating livestock exports by sea would require an amendment to the Animal Welfare Act 1999.
Testing times return for global shipping
Neal Wallace MARKETS Transport
EXPORTERS face the greatest disruption to shipping services since covid, as conflict in the Red Sea causes ships to re-route around the Cape of Good Hope, sending freight prices soaring and creating port congestion.
Ships are delayed from entering ports and freight is being stockpiled, especially at the ports of Singapore and Shanghai, which is reducing shipping reliability and causing shipping costs to rise 50%.
In a customer newsletter, freight logistics company Kotahi says Singapore, a key hub for vessels linking Europe and the Middle East with China, is significantly congested.
“Vessels are currently waiting up to seven days to berth, the highest since covid, and there are reports of nearly half a million containers stuck at Singapore ports,” Kotahi says.
Ships are diverting via the Cape of Good Hope to avoid the military conflict in the Gulf of Aden with the diversion adding four weeks to sailing.
This means vessels cannot meet their schedules, with some avoiding calling at smaller ports to recover lost time.
They are putting into practice a lot of the resilience built up during covid.
The port at Singapore has employed additional staff, reopened closed berths and announced plans to open three new berths later this year.
The port at Shanghai is reporting severe congestion with estimates 50 container ships are at anchor waiting to berth.
Silver Fern Farms chief executive Dan Boulton said one
carrier servicing New Zealand has signalled intentions to limit consignment sizes to parts of Europe, Latin America, and Africa due to capacity issues in Singapore.
Boulton said capacity issues for shipments to the Americas, specifically the United States east coast, is compounded by strong export demand from both NZ and Australia, which share capacity on key services.
Joshua Tan, the executive director of Export NZ, said the issue has worsened, but dealing with the subsequent shipping disruption during covid has helped prepare exporters.
“They are putting into practice a lot of the resilience built up during covid.”
The shipping congestion problem was compounded by NZ last month setting new export records of $7.2 billion for May.
Tan said compared to prior to the start of the conflict last November, shipping costs have increased 50% but port productivity, measured as the time to get a ship into port
and cargo loaded or unloaded, has declined 43% due to congestion.
Tan said as a comparison, shipping rate increases during covid were in triple figures.
NZ Council of Cargo Owners chair Mike Knowles said exporters are getting accustomed to disruption, having contended with covid, drought restricting use of the Panama Canal and now geopolitical tensions in the Red Sea.
This latest issue means exporters face surcharges, higher costs as ships are diverted around the Cape of Good Hope and logistical issues as cargo consignments and the relocation of empty containers are delayed.
He said the problem is outside exporters’ control and they are focusing on improving their domestic supply chain efficiency while seeking improvement in the performance of port companies.
Dairy farm costs hit 10-year high: survey
Staff reporter NEWS Dairy
THE 2022-2023 season was the most expensive in a decade for dairy farmers, the DairyNZ Economic Survey shows.
The survey shows that dairy farmers, like others in New Zealand, have been battling with inflation, with the report showing an ongoing change in the makeup of expenses and the impacts this has had on dairy farm businesses.
DairyNZ head of economics
Mark Storey said the combination of a reduced milk price and increased on-farm costs compared to the previous season saw last season’s operating profit drop to $2.57/kg MS, down from $3.46 per kg/MS in 2021-2022.
“For owner-operators we saw operating expenses increased by about 5% in the 2022/23 season, up to $6.67/ kgMS, which is the highest it has been in the last 10 seasons.
“A deeper dive into the
operating expenses shows that feed continues to be the largest operating cost, making up around 30% of total farm expenses.”
This was followed by labour (19%) and maintenance costs (18.7%), as the second and third highest expenses.
Feed costs have been the largest operating cost on dairy farms since the 2007-2008 season.
“Positively, for the 20222023 season we saw an above average milksolid payout received again, with it sitting at $8.68/kg MS. While lower than the previous season, it was a still a relatively high payout, which helped farmers as they managed these record-high operating expenses.”
Sharemilkers also experienced an increase in operating expenses, to $3.76/kg MS. Compared to the 2021/22 season, there was also a reduced average milksolids payout to $4.14/kg MS.
Despite this tightened economic performance, on average, sharemilkers were able to
maintain profitability and positive returns.
“Farmers have focused on making changes to manage these increased costs, and fluctuations in the milk price payout, to remain profitable.
“We also noted the ongoing shift in the make-up of costs farmers are facing, with a large increase in interest costs in 2022-2023.
In this context, it is encouraging to see that debt to asset ratios marginally declined (down 3%), which is a positive indication that
COST CENTRES:
Labour (19%) and maintenance costs (18.7%) were the second and third highest expenses on dairy farms last season.
farmers did not take on more debt in that season.”
Heading into the new season, farms are still operating in a tight economic environment and should remain focused on being considerate of their spending and look to manage their costs and budgets accordingly, he said.
“A range of advisers and rural professionals are available to support farmers plan and adjust their business for the next season, especially as the dairy environment continues to fluctuate.”
Key numbers from the Economic Survey
Owner-operators:
The average milksolids payout received by owner operators was $8.68/kg MS, $0.51 lower than the previous season.
• Operating expenses increased by about 5%, to $6.67/kg MS, the highest of the last 10 seasons. Cash available for living and growth was $301,982 per farm, the third highest of the last 10 seasons.
• Feed continued to be the largest expenditure category at around 30%.
Sharemilkers:
The average milksolids payout received by 50:50 sharemilkers was $4.14/kg MS, $0.40 lower than the previous season.
• Operating expenses per kilogram of milksolids increased by about 4%, to $3.76/kg MS, the highest of the last 10 seasons.
Lower milk payouts received were partially offset by an increase in milksolids per cow (+10 kg MS) and a slight increase in herd size (+15 cows).
MOVING: The port at Singapore has employed additional staff, reopened closed berths and announced plans to open three new berths later this year.
Joshua Tan Export NZ
Get Smart about on-farm safety
Gerald Piddock NEWS Safety
DISCUSSING on-farm health and safety needs to be normalised, Sarah Smart says.
The Otago dairy farmer said her life was instantly changed when she had a serious accident on her quad bike 12 years ago. Smart was part of a panel discussion in a workshop on health and safety at the South Island Dairy Event
The accident triggered a passion for effective health and safety processes on farms and Smart now works with industry groups to push the message for better health and safety.
Smart’s quad bike accident left her with multiple broken bones and internal bleeding. She puts this life-changing accident down to not managing fatigue and not considering the risks involved in using a farm vehicle.
It happened at the end of
August when the farm was well into calving the 1250-cow herd. It was her day off and Smart had been busy with some chores and decided to check on her horses in a paddock on a hill.
“It was on the way back, I was rushing, it was dusk, I was in a hurry, and I rode the quad bike straight over the bank.”
Smart was severely injured, breaking her pelvis, and shattering her collarbone and smashing her thumb. She was helicoptered to Dunedin Hospital for emergency surgery and was in the ICU before being transferred to Christchurch, where she spent a further three weeks recovering.
Smart then had months of rehabilitation – two months in a wheelchair and a further two on crutches – and further physiotherapy to get her 90% back to where she had been.
It was one of those things that you never expect to happen to you – until it does, she said.
“Everything changed in an
instant and it changes the whole course of your life. I was going to train to be an AI technician, but I can’t ever do that now because of the injuries.”
The injuries also affect the rest of the farm, her family and partner, who worked on the farm with her and had to keep it operating with one less person at a busy time of the year.
“It was doubly hard for him.”
Smart said the experience made
her a lot more cautious when on a quad bike and she readily shows her injury scars to reinforce the message to any new staff.
Farmers need to be mindful of their actions, she said.
“Concentrate on what you are doing not on what you are doing next and rushing off to the next job – while not concentrating on your quad bike riding down a hill,” she said.
Smart believes farmer attitudes
Industry bands together on fall armyworm
Staff reporter NEWS
Biosecurity
AN INTEGRATED pest management approach is being developed by the Ministry for Primary Industries and sector groups with the aim of safeguarding New Zealand’s maize and sweetcorn industries against fall armyworm.
The approach will see the MPI collaborate with the Foundation for Arable Research (FAR), Process Vegetables NZ, Vegetables NZ Inc and growers on management and mitigation strategies to help reduce production losses and enhance resilience to the invasive
pest, Biosecurity New Zealand deputy director-general Stuart Anderson said.
“Together we’ll develop some really good tools for growers, including establishing surveillance networks on a national scale.”
Fall armyworm is believed to have blown over to New Zealand from Australia after a cyclone in early 2022.
After a year of battling the pest, MPI and industry partners agreed to close the response and shift the focus to long-term management of the pest by industry.
The invasive pest has the potential to impact 72,490 hectares of maize, with an estimated value
of more than $480 million, and 3320ha of sweetcorn production, with an export value of $36.9m.
FAR biosecurity officer Ashley Mills said it is unknown what the full impact of the fall armyworm incursion will be in the future as it depends largely on winter temperatures and suitable host plants in the absence of maize and sweetcorn.
“For instance, in areas with warmer winter temperatures such as Northland, the insect has the capacity to overwinter and survive all year round.
“With warming temperatures, we might expect the problem to grow year on year.
“Part of our research will be to identify gaps of knowledge around the winter growing season and dispersal of fall armyworm.”
The approach will focus over the next three years on understanding fall armyworm phenology and distribution, developing New Zealand-specific economic thresholds and finding long-term solutions that reduce reliance on agrichemicals and preserve soil health, water quality and biodiversity.
FAR and Vegetables NZ Inc will host information and tools for fall armyworm management on their websites.
It was on the way back, I was rushing, it was dusk, I was in a hurry, and I rode the quad bike straight over the bank.
Sarah Smart Otago
to health and safety are improving. It is a topic that is more visible and talked about and seen as an everyday topic to be discussed, which it was not in 2012 when she had her accident.
“That is one of the messages we try to get across: make it an everyday part of your team culture.”
Achieving that means incorporating that into the daily discussions farmers have with their staff around what tasks are to be done today.
“It doesn’t have to be formal,” she said.
It is also critical that the farm owner and manager set the example for the rest of staff.
“You can’t expect staff to wear [quad bike] helmets if you’re not wearing one yourself.”
According to WorkSafe data, there were 12 deaths on farms between July 2022 and June 2023.
WINDBLOWN:
Harriet Mellish, AgriFutures GrowAG
Senior Farmers Weekly journalist Richard Rennie is subbing in for Bryan He talks to Harriet Mellish, general manager for Australia’s AgriFutures GrowAG initiative. Harriet outlines the opportunities GrowAg provides for Kiwi agritech startups to tap into
ACCIDENT: Otago dairy farmer Sarah Smart’s life was changed after a serious quad bike accident.
The invasive pest has the potential to affect 72,490 hectares of maize, with an estimated value of more than $480 million.
Bank inquiry puts NZ on ‘risky’ road
FNigel Stirling NEWS Finance
ARMERS risk being abandoned completely by New Zealand’s foreignowned banks if steps are taken to reduce the profitability of rural lending, says a leading banking academic.
Finance Minister Nicola Willis responded last week to growing dissatisfaction among farmers with their banks by ordering a parliamentary inquiry into competition in the rural banking market.
Federated Farmers is calling on the inquiry to look closely at the differences between farm borrowing and home loan interest rates.
The NZ Bankers Association argues higher rates for farmers can be attributed to Reserve Bank rules requiring its members to hold more capital to insulate against losses from riskier rural loans.
However, Federated Farmers suspects that the returns being earned by the banks on farm loans are excessive even when accounting for their higher capital requirements.
“It is hard to think of when the banks have made a loss over the last 20 or 30 years,” Feds national
board member Richard McIntyre said.
“So where is the risk they are taking on?”
The head of Massey University’s School of Accountancy, Claire Matthews, said it is hard to argue that farm loans are not inherently more risky than residential mortgages.
Reserve Bank figures show 6% of dairy loans currently classed as non-performing, compared to just 0.5% of home loans.
She said the risk weights driving the higher capital requirements for rural loans simply reflect that.
“If they were not having as high a rate of loss then they would not be putting a higher risk weight on it.”
Asked whether the returns being earned by the banks from their rural lending books are more than is justified by the capital held against them, Matthews said she was unsure.
However, she said, the sector has in the past pushed the limits of debt sustainability, which raised its risk profile with the banks more than if it had adopted a more prudent approach.
“Farmers have always seemed very willing to take on debt when things are going really well and instead of paying it off they tend to borrow more because they can afford it.
“And when things aren’t going well they tend to have a lot of trouble.”
Regardless of the inquiry’s outcome, Matthews said the government should be wary of trying to tilt the playing field in favour of farm borrowers if it comes at the expense of the foreign-owned banks’ profitability.
“While we might be a developed country and all the rest, the reality is that we are somewhat
Synlait proposes mustwin loan approval
Hugh Stringleman NEWS Dairy
SHAREHOLDERS of Synlait Milk have been called to a last-ditch special meeting on July 11 to approve a $130 million loan from cornerstone shareholder Bright Dairy of China.
Without that loan the directors believe that Synlait would need to cease trading or initiate insolvency proceedings.
But it is not known if the other large shareholder, a2 Milk Company (ATM), will vote in favour of the loan.
ATM has just under 20% of the Synlait shares and Bright Dairy 39%, but Bright is excluded from voting on the loan approval. Therefore, ATM will be voting about onethird of the eligible votes.
The proposal requires a simple majority of the eligible votes to pass.
The special meeting is to be held four days before Synlait must make a repayment of $130m to its banking syndicate.
Synlait’s independent directors have
unanimously recommended shareholders vote in favour of the resolution. It also needs approval from the banks.
Synlait has agreed to pay 8% interest on the loan, payable quarterly, and it could extend the term from one year to two.
But the dairy company would not be out of debt problems, as it needs further approval for waivers on its banking covenants and must make minimum earnings in FY24 of $45m.
Chair George Adams said Synlait’s directors and advisors are working on an equity raise to be announced in August or earlier.
That will be to raise $180m to redeem subordinated bonds that mature in December.
Bright Dairy said it will support the capital raise, although what shareholdings will result have not been disclosed, and there could also be a need for foreign investor approval.
At 29c currently Synlait shares have lost 83% of value over the past 12 months and more than 90% of the recent peak of market value of $3.68 in December 2022.
ELEVENTH HOUR:
The special meeting to vote on the loan is to be held four days before Synlait must make a repayment of $130m to its banking syndicate
inconsequential in terms of their overall businesses.
“While we are making a good profit for them it is worthwhile for them but if they are not going to get that return on their investment and if it becomes too challenging they may just say what is the point and get rid of it.”
On the flip side, any instruction to the Reserve Bank to relax the capital minimums for rural loans would, while boosting bank
Farmers have always seemed very willing to take on debt when things are going really well and instead of paying it off they tend to borrow more because they can afford it.
Claire Matthews Massey University
profitability without the need for higher interest margins, risk undermining the independence of the central bank.
She said this wouldn’t be in the best interests of farmers as it would set a worrying precedent for government interference in other areas such as the conduct of monetary policy and setting the Official Cash Rate.
Setting interest rates according to the whims of politicians would be damaging to the ability of the Reserve Bank to fight inflation effectively and risk undermining the international competitiveness of all exporters.
“That would definitely be the concern that having interfered in one area you have kind of loosened the whole concept [of independence], which just makes it so much easier to interfere somewhere else.”
RISK: The head of Massey University’s School of Accountancy, Claire Matthews, says it is hard to argue that farm loans are not inherently more risky than residential mortgages.
Tangihau Angus shatters on-farm bull record
Hugh
Stringleman MARKETS Livestock
TANGIHAU Angus stud at Rere, Gisborne, has blown the lid off twoyear-old bull prices this winter, achieving $135,000 and $115,000 with Lots 2 and 18 in its annual sale.
Both bulls broke the on-farm bull sales record price of $108,000. They were not isolated peaks, as five of the first seven lots offered made a total of $450,000 and the whole sale of 45 bulls grossed nearly $970,000, averaging $21,200.
Lot 2, Tangihau T549 is sired by Albert of Stern out of a now seven-year-old Tangihau cow, and Lot 18 (sold in third place in the catalogue) is by the same sire and a sister cow.
Lot 2 was sold to Kaharau and Turiroa Angus studs and Lot 18 was sold to Rolling Rock Angus and Earnscleugh Station.
Tangihau manager Dean McHardy said the Tangihau record price before this season was $85,000.
Tangihau also sold Lot 3 for $90,000 to Oregon and Albert Hill
studs, and Lot 4 for $72,000 to Puke-Nui Angus.
Eleven of the 45 bulls sold went to 15 studs.
McHardy purchased the highest priced Angus bull in the early weeks of the sale season, paying $75,000 for Shian 22-T635 from the Sherson family at Taumarunui.
Albert of Stern has certainly dominated the sale ring so far, producing sons to $135,000 at an average of $28,000 for the 28 sons offered between Stern and Tangihau.
Stern Angus, owned by the Fraser family at Pleasant Point, South Canterbury, made some of its own top prices, led by Stern 22712 for $42,000, bought by Dandaloo Angus, Wairarapa.
Stern also had sales at $34,000 to Ranui and Merchiston Angus with Martin Farming, and two at $30,000, bought by Riverlee Angus and Riverlands J Angus.
The average price was $10,167 across 93 sold from 98 offered.
Kaharau Angus, Gisborne, had a top price of $37,000 paid by Kenhardt Angus and had a complete clearance of 61 bulls with an average price of $10,975.
Orere Angus, Gisborne, had a full clearance of 18 bulls, averaged
$8055 and had a top price of $11,500 twice.
Ratanui Angus, Wairoa, had a high price of $14,000 to Painga Station, Ohuka, Wairoa, and sold 32 from 40 offered, averaging $8188.
Blacknight Angus, Marlborough, sold 11 from 14 offered, averaged $8045 and had two sold at $12,500 to commercial farmers.
Burtergill South Devons, Canterbury, sold all 11 bulls offered, averaged $7272 and had a top of $9500 by a commercial buyer.
Glenrossie Beef Shorthorns and Santa Gertrudis, Whangārei Heads, sold 13 out of 16 and averaged $4638 with a top price of $6200 paid by Eastern Livestock.
Whangara Angus, Gisborne, sold 30 of 38 with an average price of $7316 and a top of $14,000 paid by James Williams, Otupae.
The Turihaua Angus sale was at the height of the storm, on the coast at Whangara, and had a full clearance of 66 bulls, with an average price of $12,931.
Top was $78,000 paid by Cricklewood Angus for Lot 8, Turihaua T18, followed by $28,000 paid by Kayjay Angus for Lot 3 and two at $15,000 for Dandaleith and Hingaia.
OUTSTANDING: Tangihau T549 has reset the New Zealand on-farm bull sale price record with $135,000 paid by Kaharau and Turiroa Angus studs.
SOUTHERNER: South Canterbury bull Stern 22712 is headed to Dandaloo Angus in Wairarapa, with a $42,000 price tag.
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I read it online. I drop the hard copy into the team here at the workshop. It’s great to be able to share the news with them as well.”
Sandra Faulkner
Federated Farmers National Board Member and Gisborne farmer – sheep, beef, annual cropping and horticulture
From the Editor
TNeal Wallace Senior reporter
HE wind of change is sweeping through primary sector leadership.
Since the start of the year, 10 of our most important and influential primary sector bodies have changed, or have announced they are changing, their chair or chief executive. In the case of two entities, both are being changed.
Since January Beef + Lamb NZ (BLNZ), Zespri, Hort NZ, Deer Industry NZ, Silver Fern Farms and Ospri have made their intention known to appoint new chief executives, or have already done so. Over that same time new chairs have been or will be elected to DairyNZ, Deer Industry NZ, Alliance Group, Silver Fern Farms (SFF), Synlait and Pāmu.
In many cases this represents a significant loss of experience.
Innes Moffat worked for Deer Industry NZ for 18 years and was its chief executive for four; Jim van der Poel has been a director
with DairyNZ and its various early entities since 2000 and its chair for seven; Rob Hewett was a SFF director since 2008 and its chair for 11 years.
That loss of institutional knowledge is significant but there are benefits that come with change.
Most of those stepping down have endured a torrid six years treading the delicate line between appeasing their sector’s general unhappiness with an aggressive government agenda and dealing with inevitable market pressures and fluctuating product prices.
Their roles had become untenable, the sort that would take a toll on anyone.
sector and on the very best information available.
We saw with He Waka Eke Noa that primary sector leaders walked a tightrope between politicians, officials and their constituents, only to have the pin pulled when the outcome was found to be inequitable and not in the best interests of the sector.
The past six years have revealed how demands on our sector leaders are growing.
Whether it is as directors or senior management of companies meeting shareholders or on trade missions, or leaders of levy-paying groups interacting with government ministers or officials, the demands on people’s time and energy have increased.
Fortunately this has been realised and there are multiple professional programmes such as Dairy Women’s Network, Rural Leaders and To The Core.
Letters of the week
Tiwai was trouble from the start
Tony Orman Marlborough
FIRSTLY, congratulations to your columnist Alan Emerson for being named 2024 Ravensdown Agricultural Communicator of the Year. His views are invariably refreshing, logical and practical.
Not surprisingly, his column, “Doubling down on a crazy call at Tiwai” (June 17), was bang on.
Originally the smelter and its electricity supply morphed into a big nationwide conservation issue when the government of the day proposed raising Fiordland National Park’s Lake Manapouri to supply cheap power. It was cheap – reportedly well below the cost the NZ consumer paid.
The environmental issue became an election issue, a key one that saw the National government defeated and Labour, led by the charismatic Norman Kirk, sweep to power.
While one can sympathise with Southlanders who find employment at the smelter, from a national perspective, the continuance of the operation lacks justification.
Employment alternatives, as Emerson pointed out, exist in the primary sector.
The smelter uses a big chunk (13%) of NZ’s electricity supply – and 33% of the South Island’s – and reportedly at a substantially discounted rate.
The smelter has constantly haggled over the price it pays, forcing renegotiations in 2015 and 2021. The 2021 agreement reportedly reduced the price from 5.5c to 3.5c per kWh with the smelter scheduled to close this year.
Rio Tinto has threatened closure of the smelter on several occasions if it couldn’t get a cheaper deal for electricity from retailer Meridian, or the government failed to give out a substantial subsidy to cover losses.
The NZ government subsidising a foreignowned consortium? As the title of Emerson’s column says, “a crazy call”.
Sure, some of those issues remain, but with new people come new ideas, energy and enthusiasm.
We are fortunate as a sector not only in the calibre of our leaders, but also in their commitment to what is a time-consuming role.
Their decisions and the positions they take on issues certainly do not please everyone – and nor should they as the primary sector is a very broad church.
All that can be asked is that decisions are made in the best interests of the
The leaders of our levy-funded bodies certainly do not do it to be popular or for the money. In fact many say it costs them money as they need to find covering staff for when they are away on sector business.
A remit to increase the BLNZ director’s renumeration pool was rejected earlier this year – reflecting the tough times facing the sector – and there appears little appetite to regularly increase what they are paid.
However, the fact is that if we want to attract the brightest and most enthused, we need to have a mature, realistic debate on how we reward them.
Lake Manapouri was saved back in 1972 but in recent years the Tiwai Point smelter has shown no environmental conscience in stockpiling many tonnes of hazardous waste near Bluff Beach and Mataura. Best letter WINS a quality hiking knife
Send your letter to the Editor at Farmers Weekly P.0. Box 529, Feilding or email us at farmers.weekly@agrihq.co.nz
In my view ...
We need climate action that builds ag
Kate Acland
Acland is chair of Beef + Lamb New Zealand
THE recent announcement by the government that agriculture is to be removed from the Emissions Trading Scheme was met with widespread approval from the primary sector.
But it does leave the question of what next? It’s clear that the government’s intention is not to “do nothing”, and the expectation remains that agriculture should “play its part”.
A Beef + Lamb New Zealand (BLNZ) review of livestock numbers using the most upto-date figures suggest that agriculture is well on its way to meeting, and in the case of sheep, exceeding the current 2030 methane targets.
But most of this reduction has happened due to a reduction in stock numbers through land use change and the planting of trees on productive land.
A price or a tax on livestock emissions is a blunt tool that would exacerbate this, risking the loss of our iconic mosaic landscapes and the important role that extensive hill country farming plays. Let’s also not forget sheep and beef farms also help safeguard New Zealand’s biodiversity.
Sheep and beef farmers are looking after a large portion of indigenous biodiversity, with 24% of the country’s native vegetation
cover on sheep and beef farms, second only to the conservation estate.
This reduction in stock numbers, particularly from our hill country, is not positive, it’s not good for the New Zealand economy, and given that we are among the most carbon efficient producers of protein in the world, it’s not great news for the planet either.
We need to find and embrace solutions that won’t put the production of world-class beef and lamb at risk.
The country’s methane targets are currently under review, and we’re hopeful these will be reviewed based on the science around the warming impact of methane.
There are various views as to what these targets should be, but regardless, they won’t be zero. New Zealand has emissions reductions to make and international obligations to meet.
As an agriculture sector, we’re at a critical juncture. We can continue to make “progress” towards targets through deintensification, destocking and land use change – or we can embrace the investment in technology that will reduce methane emissions from our livestock that will allow us to maintain and even grow our production base.
With the government making the call to remove agriculture from the ETS, we are now
CROSSROADS: New Zealand’s agriculture sector is at a critical juncture, says Kate Acland – continuing down the path of destocking and land use change, or embracing investment in technology that will reduce methane emissions while ‘we maintain and even grow our production base’.
Photo: Clare Toia-Bailey
world, balancing climate, water and biodiversity.
We need to find and embrace solutions that won’t put the production of world-class beef and lamb at risk.
presented with an opportunity.
We need to do more of what we’re best in the world at, not less. It’s in no one’s interest for the agriculture sector to shrink further in this country.
We are well placed to position ourselves as the most naturepositive red meat producers in the
Japan hungry for NZ dairy ingredients
THE spotlight has been on the Japanese market recently and the opportunities it presents to New Zealand exporters, with Prime Minister Christopher Luxon and an accompanying business delegation visiting Japan in June.
Fonterra has been operating in Japan for more than 20 years and the market is now one of our top export destinations for high-quality, innovative dairy ingredients.
I’m fortunate to have travelled to Japan many times both on holiday and for business and from those experiences there are three things that come to mind when I think of Japan: quality, food and technology.
These same three things that are at the heart of Fonterra’s business in Japan, which is using our dairy science expertise to cater for an increasing demand for foods that support healthy living.
Our protein ingredients in
particular are popular with our Japanese customers. These proteins are used in a range of applications including medical nutrition, infant formula and sports supplements, as well as everyday foods such as beverages, yoghurt and even bread.
Any visitor to Japan who steps into a 7-Eleven store has a good chance of finding protein-fortified drinks and yoghurts containing Fonterra farmers’ milk. It would seem in the eyes of the consumer, the more protein that can be included in a product, the better.
Any visitor to Japan who steps into a 7-Eleven store has a good chance of finding protein-fortified drinks and yoghurts containing Fonterra farmers’ milk.
Research shows Japanese consumers are willing to pay a premium of up to 50% for products that have added health and nutrition benefits, and with
one in three people in Japan estimated to be over 65 years old by 2030, there’s an increasing appetite for products that support wellbeing and mobility, and combat cognitive decline.
Fonterra is well placed to meet this growing demand. Our proteins are designed to help people maintain muscle mass for better quality of life, our dairy lipids help to improve mood and our probiotics support immunity and digestion.
Many of our proteins have been specifically developed for the Japan market and in some cases, individual customer applications. We actively work with customers, technical experts in market, and our Fonterra Research and Development Centre (FRDC) to develop innovative products that meet the changing needs of consumers.
For Fonterra, the Japanese market is worth the investment in time and resources. There’s healthy demand not just for proteins, but for household staples such as cheese and butter too. Japan is one of Fonterra’s
champion these efforts, the scientists and the people and companies investing, because we know our competitors overseas are chasing the same goal.
But too often we see stones being thrown at those looking for the solutions that could open up the opportunity to maintain or grow our production levels and extract more value in the market.
BLNZ is currently undertaking a study of what other countries are doing in the emissions mitigation space. It’s clear that customers are pushing their supply chains for action and farmers in other parts of the world are viewing this as an opportunity.
But the critical difference is farmers internationally aren’t being taxed, they are being incentivised to embrace technology and are being recognised for their efforts.
We have several organisations and groups in New Zealand working to support that goal, with the help of investment from successive governments in finding methane mitigation technologies and improving animal efficiency.
Although most of these technologies aren’t commercially available yet, science has shown that it’s theoretically possible to reduce methane while maintaining production and product quality – so it’s only a matter of time.
We should celebrate and
Stories of New Zealand are intertwined with the stories of agriculture and of innovation. In fact, it’s been innovation and a willingness by our farmers and growers to embrace change that has made our sector as strong as it is today. The current investment into methane mitigation is the next step in this change and innovation journey.
Brand New Zealand is by its very nature a country that cares about its environment. People will and do pay a premium for this. Right now, we have the choice: do we further grow this brand, or do we allow another country to take our place?
DESIGNER: Many of Fonterra’s proteins have been specifically developed for the Japan market and in some cases, individual customer applications.
largest markets for cheese exports, and we are seeing growing interest in grass-fed butter with sustainable dairy increasingly being recognised by consumers.
While demand for dairy is growing, Japan’s domestic production has dropped more than 10% since the year 2000.
The industry has been struggling to attract the next generation of farmers.
But it’s not just dairy where Japan presents opportunities. It’s a market worth the time of other Kiwi exporters, too.
Japan is the world’s fourth largest economy and also New
Zealand’s fifth largest export market, accountable for around $4.3 billion in export earnings each year.
New Zealand and Japan have shared interests in science and innovation, food and agriculture and the two nations enjoy a strong relationship. This foundation means there’s plenty of scope for further growth for New Zealand businesses to enter or grow in Japan.
For Fonterra, this means partnering with customers to make innovative, high-quality ingredients to meet Japan’s growing demand.
Miles Hurrell Hurrell is CEO of Fonterra
Calling Aussie banks on the carpet at last
Alternative view
Alan Emerson Semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com
THERE’S been criticism of the Aussie-owned banks since Adam rode the range, with most of it justified.
They come across to me as a venal lot but on the other side I feel humbled at being able to contribute far more to their bottom line than my counterparts in Australia do.
Politicians have wept and wailed over the Aussie banks for years to little avail.
There was the now infamous swap crisis where three of the banks – ANZ, Westpac and ASB – were found by the Commerce Commission to have misled customers.
It was estimated that up to 2000 New Zealand farmers had lost up to $1 billion as the result of swaps. The media at the time ran stories about farmers feeling betrayed by their bank managers, and farmer suicides.
The banks gave the sincere impression of not giving a fig.
Now the heat is going back on the big Aussie banks but, as with the swaps fiasco, I still can’t imagine them giving the proverbial fig.
Recently the banks were summoned to Parliament. Their discussions there involved “painting a rosy picture of the support and love they showed farmers”. The MPs, to their credit, weren’t convinced and neither was I.
Now we have a campaign calling the banks to account and I’m rapt that’s happening.
It was started by Federated Farmers surveying members about their satisfaction with their banks. The results were interesting.
The average mortgage rate has increased from 7.84% to 8.26% since May. Surprisingly, in my view, 3.2% are paying over 10%.
Over the same period the interest rate on overdraft increased to 10.52%.
One in four farmers feels under pressure with almost half claiming their mental wellbeing is affected by debt levels.
In summary, farmers believe the interest rates they are paying are
too high, with lending conditions much tougher than those applying to urban businesses.
ACT MP and Primary Production Select Committee chair Mark Cameron has been tireless in his questioning of the activity of the Aussie banks.
His committee will be working in conjunction with the Finance and Expenditure Select Committee to set up the terms of reference for the inquiry.
The terms of reference must be strong and specific about the issues farmers are facing. The process must also be transparent as the banks will fight it whenever and wherever they can.
I’m surprised it’s taken so much effort from our rural politicians to get an inquiry. My information suggests the opposition came from the upper levels of the National Party, which is interesting.
The reality is that the Australian banks have 85% of our mortgage market. They are among the most profitable banks in the world.
In the year to June 2022 they earned $6.3bn in profit from NZ. That is 70% as much profit as our 50 largest companies combined. In the six months to March this year ANZ earned $1.04bn, up from $1bn a year ago.
That increase occurred when the economy was technically in a recession and when the bank’s Australian parent company reported a reduction in profit.
The reality is that the Australian banks have 85% of our mortgage market. They are among the most profitable banks in the world.
The Commerce Commission said that the high profitability of the big four is due to a “lack of competition”.
When I talked to Groundswell’s Bryce McKenzie at National Fieldays, we were both somewhat gobsmacked at the banks’ current initiative with climate agendas. They intend setting emissions targets that, you guessed it, will be set by the banks.
My initial question would be to ask what possible qualifications the banks have to set those targets.
That’s compounded by the cynic in me believing that the banks would use those targets to rort higher interest rates from farmers they don’t believe are doing their bit – in the banks’ eyes that is.
We are a country that survives by selling food to 40 million consumers. Producing that food is a hard, sometimes thankless, job.
What we don’t need is a banking system focused on indecent profits caused, in part, by rorting the sector,
What we definitely don’t need is an Australian-governed bureaucrat delving into on-farm emissions.
Hard to spot any green shoots on the horizon
Meaty matters
I believe the government has the ability to fix that, either by breaking up the big four, giving Kiwi and Heartland Banks Reserve Bank funding, or starting a rural bank.
What is interesting is that all the main political parties are backing an inquiry.
National, Labour, ACT and NZ First are all committed. Add to that Federated Farmers, Groundswell and the governor of the Reserve Bank and it would be a brave person or organisation that opposed it.
Feds dairy head Richard McIntyre said that farmers are expecting a thorough inquiry and will be closely monitoring progress. He feels the problems need to be identified and then fixed in this once-in-a-generation inquiry.
Not satisfied with worldbeating profits and squeezing the productive rural sector financially, they have moved on to telling us how we can farm.
Allan Barber
Meat industry commentator: allan@barberstrategic.co.nz, http:// allanbarber.wordpress.com
THE outlook for agriculture and the economy in general appears pretty gloomy at the moment and positives are in short supply, although there are some green shoots starting to appear if one looks hard enough. Any improvement is unlikely to happen before next year at the earliest, but it will surely arrive at some point, when the cycle turns. Interestingly, the latest Rabobank quarterly farmer confidence survey reports farmers’ faith in their own business prospects has improved markedly, although confidence in the broader agricultural economy has fallen. Unsurprisingly, sheep and beef farmers were the least optimistic, but even their confidence level has improved significantly, possibly because of better beef returns.
Dairy farmers and horticultural growers both showed positive results, although the drop in the latest GDT auction came after the survey, while anecdotal evidence suggests grower returns are insufficient to cover production
The latest market update from ANZCO’s Rick Walker points to some positives in United Kingdom and United States lamb and beef sales. Domestic lamb supplies in the UK have become very expensive, which has resulted in supermarket chain Morrisons backing away from its 100% British lamb stance, a situation that is likely to persist for quite some time. Lamb sales to European countries have also shown signs of improvements in price and volume, while the US market is holding up well, except for some resistance on French racks, traditionally the highest priced cut.
Beef + Lamb NZ underlines the continued support by the UK’s “big four” retailers for New Zealand lamb, which provides a competitive alternative to UK production at different times of the year, particularly the May/June period when the price differential is at its greatest. However, the UK takes only about 10% of our production, which is too small to influence returns to farmers very much.
Unfortunately, China and Japan are proving challenging, with little probability of an improvement until next year at the earliest.
China, which has become both the largest market for New Zealand sheepmeat as well as the main destination for lower value cuts, remains depressed in both retail and foodservice.
BLNZ cites competition from Australian sheepmeat and domestic Chinese pork production as additional negative factors. This means achieving a satisfactory return across the whole carcase is proving difficult as long as these headwinds persist.
The UK Free Trade Agreement has produced some promising signs for premium beef sales, while the US has a supply shortage of domestic cattle, which indicates strong demand for imported product, particularly lean cow and bull.
Inquiries from US buyers for premium grassfed beef cuts are also at an unprecedented level in a market that has traditionally favoured domestic grain-fed product. The prices from these other markets, especially the US, have served to compensate for the downturn in demand from China, which suffers from competition from Brazilian beef as well as the depressed state of the economy.
The most encouraging signs for the future come from the progress being made with various trade negotiations. Trade Minister Todd McClay has made a commitment to concluding an FTA with India, which would appear to be overoptimistic, unless he is
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ACCOUNTABLE: ACT MP and Primary Production Select Committee chair Mark Cameron has been tireless in his questioning of the activity of the Aussie banks.
On a wing and a prayer
Eating the elephant
Ben Anderson
Ben Anderson lives in central Hawke’s Bay and farms deer, cows and trees.
eating.the.elephant.nz@gmail.com
THINGS are clearly not well with our boys in blue. Their recent extended stay in sunny Port Moresby along with the PM and his entourage hit the airwaves for all the wrong reasons.
Seasoned observers of our nation’s fine Air Force will note that their breaking down is nothing new.
Although it gets more media time when the prime minister is aboard, no trip that is dependent on Defence equipment can ever be considered a sure thing. Much like the Interislander and its maritime misadventures, wringing the last ounce of life from old gear is just a reality of life in New Zealand’s Defence Force, as frustrating as it may be. It’s hard to soar with the eagles when you’re riding a donkey.
New Zealand has always had old military gear. Decades ago on an
willing to accept a less ambitious agreement that recognises India’s refusal to include dairy and other off-limit items.
The Australian FTA is an example of what is possible as distinct from ideal, but, encouragingly, it removed a 30% tariff on sheepmeat as well as making tariff reductions on
armoured personnel carrier drivers course we had to re-appropriate rusty old steel track holding down the scrum machine at the Waiouru Rugby Club because we had no spares in the country. If that didn’t work our next stop was the museum just down the road.
The Air Force suffered the same equipment issues. I was once part of a training exercise where we had seven Iroquois helicopters in support. Lots of photos were taken before we started because we all knew it would be the first and last time we would ever see that many choppers airworthy at the same time. And we were right.
But while things were bad then, this time it’s worse. You see, while the Air Force could never be fully relied upon to turn up when you needed it, it could always be relied upon to turn up to a cocktail party, of which the recent prime ministers’ trip undoubtedly had many.
Equally, if the Air Force were to break down, it would unerringly be in the same location as a wellreviewed beach resort, with quality accommodation and those little umbrellas that you can put in your drinks.
A breakdown in Port Moresby on the way to a cocktail circuit is therefore the Air Force’s equivalent of a desperate cry for help.
While my feet still hurt from the memory of the numerous Air Force no-shows for a pickup, and the small person inside me enjoys watching both our politicians and well-groomed air crew suffer the same fate, I think in fairness we badly need a couple of new jets.
And yes, these jets should belong to the Air Force because contrary to a few opinions out
horticultural products. It also contains provisions for technical assistance and greater access for study and work visas, which reflect India’s desire for agreement beyond trade purely in goods and commodities.
Another FTA under negotiation is with the United Arab Emirates, with which McClay has developed a very good relationship as a consequence of his time as vice-chair
there, they don’t exist purely to fly over sports stadiums and cart the prime minister around. The ability to rapidly and reliably transport soldiers and equipment to locations that commercial air carriers cannot fly to is an essential component of any semi credible defence force.
Aside from the Defence piece, there is another critical reason the PM needs a new set of wings: trade.
see the PM and his delegation turn up on the national airline. As a Kiwi it seems to showcase our natural humility and willingness to get on the job without a bunch of unnecessary pomp and fluff. But the reality is that many of our trading partners value pomp and fluff. It demonstrates to them that we are a serious player, and that we in turn see them as deserving of such respect.
It’s true that no government in its right mind would want to spend money on new jets when so many of its people are doing it tough. It’s much easier to spend money on
Investing in the core drivers of our economy is always a hard sell, but it is critical that we do so if we want a country worth living in.
we want a country worth living in. Investing in the means of getting our trade representatives out into the world and doing business is a key part of this.
As I write this article I’m looking out the window at the rain and
It’s fantastic to see our new government following through on its commitment to grow the value and size of our exports, but we need to provide those who represent us with the tools to get the job done.
In some ways it’s pleasing to
of the WTO ministerial conference in Abu Dhabi in February.
While a broader aim is to revive an agreement with the Gulf Cooperation Council, the agreement with the UAE for which round one has been launched will be an important stepping stone.
The Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP) currently has 11 members, but
health and welfare, nice safe vote buyers that they are. But without strong trading relationships and the income that it provides, there will be no money to buy votes. Investing in the core drivers of our economy is always a hard sell, but it is critical that we do so if
the UK is going through the ratification process by all the members after it was accepted as the 12th member in July last year; at this point only Japan and Singapore’s parliaments have formally ratified UK membership, but there are no obstacles to ratification by the other nine.
China has applied for membership, although there appear to be several reasons for this to take quite some time to achieve. New Zealand’s FTA with China makes this less of a factor for NZ exporters.
New Zealand has trade agreements with many countries critical to our economic performance, but on their own they cannot guarantee prosperity.
Despite CPTPP provisions for tariff removal on 99% of goods between all member countries, New Zealand is currently in dispute with Canada, which has blocked dairy imports in spite of the obligation to provide limited duty-free quota access for most dairy products. The arbitration panel has found comprehensively
mud, with the next job being shifting breaks. To be honest, it’s a little galling making the case for new planes for our fearless aviators while I slide around in a wet paddock. Who knows, maybe we’ll all get invited to the next cocktail party?
in favour of New Zealand without any apparent movement by Canada.
The other high quality agreement concluded in the past year was the NZ/European Union FTA, which entered into force on May 1 2024, providing for duties to be removed on 91% of New Zealand exports immediately, rising to 97% after seven years. This FTA famously failed to negotiate anything like the desired access for beef and dairy, but in other respects it achieved good outcomes for our exporters.
New areas for negotiators to explore, rather than trying to expand geographically to countries like the US, which appears to be withdrawing from concluding new trade agreements, include digital trade across borders, which will reduce the business costs for exporters and importers.
New Zealand has a comprehensive suite of trade agreements with many countries throughout the world that are critical to our economic performance, but on their own they cannot guarantee prosperity. This requires a great deal of initiative to ensure we provide what customers need and want, taking advantage of the hard work of our trade negotiators to be ready when the upturn comes.
OLD GEAR: Much like with the Interislander and its maritime misadventures, wringing the last ounce of life from old gear is just a reality of life in New Zealand’s Defence Force, as frustrating as it may be.
GROUNDWORK: Another FTA under negotiation is with the United Arab Emirates, with which Trade Minister Todd McClay has developed a very good relationship as a consequence of his time as vice-chairman of the WTO ministerial conference in Abu Dhabi in February.
Guilds take top sustainablility honours
HAMISH and Simon Guild of High Peak Station in Canterbury were this year’s Gordon Stephenson Trophy winners at the National Sustainability Showcase held in Hamilton.
The win makes the brothers this year’s National Ambassadors for Sustainable Farming and Growing.
On accepting the award, Hamish Guild says the farm business goes beyond just himself and his brother.
“It’s a full family business that we’re part of and every piece of that is incredibly important.”
In the lead-up to the awards night, the regional finalists did presentations outlining their farm businesses.
A common theme was that they have stood on the shoulders of people better than them to get to where they are today, Hamish says.
“I think that’s certainly the case with this family.”
Simon Guild says they stood there as the second generation to be managing High Peak Station following their parents James and Anna.
“We wouldn’t be standing here for a minute if it weren’t for them.”
High Peak Station is a 3760 hectare (3450ha effective) property managed by an eightway partnership that runs four different businesses.
The partnership comprises the Guilds – James, Anna, Hamish, Gemma, Simon and Kate – and Amelia and Tom Dunbar.
There is a strong focus on adding value to all the enterprises, with the team striving towards highend products and experiences.
High Peak Station’s income is derived from sheep, cattle, deer, honey and tourism.
The separate entities operate in synergy, with each family member bringing different strengths to the table, which has ensured a sustainable and robust business.
James Guild says he knew Gordon Stephenson, describing him as a “most outstanding man”.
“My challenge to my family
behind me is to take the Gordon Stephenson mantle and go out and carry on the good work of the Farm Environment Trust in extending the best land management systems that we can in New Zealand.”
Winning the Trophy was a huge privilege, honour and responsibility, he says.
“It will be this generation doing the ambassadorial stuff,” he says gesturing to Hamish and Simon.
He called it an honour to be judged by their peers against a lineup of outstanding regional finalists.
Included in winning the Trophy is a study tour sponsored and coordinated by the Ministry for Primary Industries worth $20,000.
Hamish says they may look to go somewhere that is climatically similar to NZ in the red meat and tourism sectors, such as South America.
The Guild and Dunbar families won the Canterbury Regional Supreme Award in March, with Hamish and Simon representing the family in the national judging process.
The judging process for the Gordon Stephenson Trophy includes on-farm judging as well as a panel interview. The trophy recipients displayed a combination of an exemplary farming operation – from a financial, social and environmental perspective – and the ability to articulate informed responses and insightful views on a range of pan-sector topics.
National judging panel chair Karen Williams says the calibre of regional winners across the country was extremely high.
“All of the stories were magnificent, and as a farmer you feel really proud listening to them explain what they do and why.
“Hamish and Simon gave articulate, succinct and wellthought-out responses to all of our questions, and demonstrated a strong customer and market focus, with particular awareness of global markets and how our products are seen off shore,” says Williams.
“They have a strong focus
on succession, with the idea of ‘making the pie bigger’ to ensure everyone in the family finds a niche and a place to operate together.”
Williams noted that the family’s approach to climate resilience stood out, particularly as they have experienced floods followed by drought.
“They recognise that science will deliver some of the tools to help build resilience, such as adopting more weather tolerant pasture
species; they have explored the vulnerabilities to their business in detail; and they have adjusted or enhanced infrastructure to ensure they’re adaptable to climate change and severe weather impacts.”
The National Judging Panel also commended the Guilds for their creative approach to health and wellbeing within their team and their involvement in the wider community.
“This is a diverse, multi-
generational farming family with lots of strings to their bow,” says Williams.
Alongside a theme of multigenerational farming businesses and “succession on show” in this year’s Regional Supreme Winners, Williams noted there was strong commitment to enhancing biodiversity, a clear desire to reduce GHG emissions, and an emphasis on the value of telling our story as New Zealand food and fibre producers.
Tracy Brown to lead DairyNZ board
Staff reporter PEOPLE Dairy
TRACY Brown has been selected as chair-elect of DairyNZ after Jim van der Poel announced he will be stepping down at the organisation’s annual meeting in October.
Van der Poel has been DairyNZ chair for seven years and has steered it through a new strategic direction.
He served as a farmer-elected director on the inaugural board in 2007-2009, then again from 2013. Prior to this, he was appointed to the foundation board of DairyNZ’s predecessor Dexcel in 2000, becoming chair in 2003.
After his third re-appointment as chair in October last year, Van der Poel said he would remain to support the transition of new chief executive Campbell Parker, the development of DairyNZ’s new strategy, and see through the change of government.
“DairyNZ is in good health and it’s time to pass the baton to the next generation.
“I have confidence in the depth of the board, the direction of the new chief executive and strategy, and am happy to be handing over duties to Tracy in an orderly way over the next few months,” Van der Poel said.
“In less than a year, Campbell Parker has set a new strategic direction which rightly refocuses the organisation on the future,
NEW CHAIR: Tracy Brown will take over as chair of DairyNZ after Jim van der Poel announced he will step down in October.
Time and time again
Jim proved his fortitude as a leader in dairy for New Zealand and I look forward to learning all I can over the next four months as he hands over the reins.
Tracy Brown DairyNZ
science and research, and profitability.
“The dairy industry has been good to me, and it’s been my privilege to give back.”
Brown said Van der Poel had
delivered decades of dedication to the dairy sector.
“The backdrop of his influential tenure includes the Mycoplasma bovis biosecurity incursion, the highs and lows of the milk price, and an upswing in environmental regulation – all while he has advocated for and achieved a more positive future for dairy farmers.
“Time and time again Jim proved his fortitude as a leader in dairy for New Zealand and I look forward to learning all I can over the next four months as he hands over the reins.
“On behalf of the DairyNZ board we thank Jim for his unswerving commitment, which ensures we’re able to continue to make progress with confidence.”
Deputy chair Jacqueline Rowarth will also step down, opening two new positions for farmer-elected directors on the board.
Rowarth has served DairyNZ for six years and was a leading force behind establishing an independent science advisory panel to provide expert advice on research for the future.
Rowarth said she sees the future of the board is in the next generation of keen and enthusiastic farmers, working with the excellent independent directors of the board.
DairyNZ has a governing board of eight members – five directors are elected by farmers and three are independent and appointed by the board.
Canterbury’s High Peak Station, home to the winners of the Gordon Stephenson Trophy, is a showcase for sustainable farming, Gerald Piddock reports.
THRILLED: The winning team out on the farm at High Peak Station. From left, Tom Dunbar, Hamish, Simon, James and Anna Guild.
PROUD: James and Anna Guild of High Peak Station. James says winning the Gordon Stephenson Trophy is a huge privilege, honour and responsibility.
Haldon solar farm site to help heal the land
IMPACT: Haldon Station manager Paddy Boyd says the solar project will have a beneficial effect on the land and will result in revegetation of the original native fauna and flora.
Renewable energy project on the iconic station will also encourage the regeneration of a wind-blown, rabbit-infested parcel of land. Annette Scott reports.
NEW Zealand’s leading solar generation company, Lodestone Energy, has clinched a partnership with South Canterbury’s iconic Haldon Station to build and operate a 220 MW utility-scale solar farm.
Located in the heart of the Mackenzie district, Haldon Station offers a 340ha parcel of land for the development.
The partnership comes ahead of Lodestone’s capital raise announcement to enable further
extension in the South Island.
The partners selected the parcel of land for the solar farm, the area being just 1.5% of the total sheep, beef and deer station.
Haldon Station has been owned by the Auckland-based Klisser family for more than 30 years and is one of NZ’s premier highcountry stations, spanning more than 22,000ha.
Haldon Station said it had been considering for years how to enhance an area on the property that is non-productive and has suffered from significant wind erosion due to its dryness and pest infiltration.
Lodestone saw value because of its top-quality solar resource, proximity to transmission infrastructure, good road access and minimal visual impact.
The partners also believe there is an opportunity for meaningful ecological restoration during the 70-year period that the solar farm could be operating.
“We believe from research, and observation on other wellplanned developments on the property, that the partial shade and shelter from the panels will result in a beneficial effect on the lands below and will result in revegetation of the original native fauna and flora,” Haldon station manager of 42 years Paddy Boyd said.
“The station is planning for the area to be ring-fenced with rabbit netting and totally destocked to allow for full regeneration of the natural grasses.”
Haldon has spent several years investigating ways to reduce net emissions on the station along with options to utilise this nonproductive area, and identified Lodestone as the ideal partner out of a large field, because of a complete alignment in their longterm visions for protection of the land and environment, Boyd said.
Managing director of Lodestone Energy Gary Holden said there’s increasing demand from commercial customers to have 100% renewable energy, which is
helping the country move towards a zero-carbon future.
“By diversifying our production and expanding into the South Island, we’re helping meet our customers’ needs, giving them an alternative power option and playing a key role in meeting zero carbon goals.
“In addition, we can support Haldon Station to achieve their goals through restoration support,” Holden said.
By diversifying our production and expanding into the South Island, we’re playing a key role in meeting zero carbon goals.
Gary Holden Lodestone Energy
Construction of the solar farm is planned to start in 2025 and will produce 340 GWh a year at full capacity, generating enough renewable energy to power almost 50,000 homes.
Haldon Station is the fourth solar farm to be confirmed in Lodestone’s Phase 2 programme, with sites in Clandeboye, Mount Somers, and Dunsandel confirmed in January 2024.
Lodestone’s Phase 2 solar programme will be funded by a recently announced capital raise led by Forsyth Barr and Barrenjoey. Lodestone already has two North Island solar farms, Kohirā and Rangitaiki, generating electricity and three additional North Island projects, Whitianga and Dargarville, set to commence this year with construction underway on a third in the Bay of Plenty.
Lodestone was founded in 2019 with a vision to help the national effort to decarbonise the energy sector.
It aims to contribute a substantial amount of solar production in the country’s electricity market and be the leader in bringing solar-based energy contracts to customers.
Funding boost for new mastitis technology
Gerhard Uys TECHNOLOGY Dairy
AGRI-TECH innovator Bovonic has secured $940,000 capital investment to fast-track delivery of its mastitis detection technology to dairy farmers.
Farmer’s Weekly reported in October last year that Bovonic founder Liam Kampshof had developed a user-friendly mastitis detection technology, called QuadSense, that dairy farmers can install in milking cups.
QuadSense incorporates a milking sensor in each cup, allowing it to test each quarter individually rather than the entire cluster, Kampshof said.
It’s a small sensor that farmers can install themselves by simply opening the cup and inserting the sensor and it runs on AA batteries, eliminating the need for an electrician.
“The sensors measure the conductivity of the milk, as most milk metres do. Our innovation is that we are measuring and comparing quarter conductivity,” Kampshof said.
The capital will be used to ramp up production. It will also allow us to start building connections overseas so we can trial QuadSense in other markets.
QuadSense starts measuring milk as soon as the cups are on, and gives a result after just a minute. It gives a red-light alert when mastitis is present.
The funding was finalised this March.
“More than 450 farmers have registered their interest in our product with 400 units already
pre-ordered by New Zealand farmers,” Kampshof said.
“With the level of demand we’ve received, we made the decision to commercially launch the technology at this year’s National Fieldays rather than later in 2024.”
The innovation was first showcased in 2021.
“We’ve designed QuadSense to be accurate, fast, and easy to use, but at $500 per QuadSense unit, per bail, it delivers an economically viable option for dairy farmers,” Kampshof said.
The capital round, which has been led by venture capital investor Pacific Channel alongside Enterprise Angels, MIG Angels and NZVC, follows an initial $750,000 investment from Pacific Channel.
“The capital will be used to ramp up production. It will also allow us to start building connections overseas so we can trial QuadSense in other markets”
HISTORY: Haldon Station has been owned by the Auckland-based Klisser family for more than 30 years and is one of NZ’s premier high-country stations, spanning more than 22,000ha.
Key initiatives Bovonic will prioritise with this new funding include the development of advanced features such as hygiene checks and integration with rotary milking systems.
SENSITIVE: Bovonic founder Liam Kampshof with QuadSense, made up of four patented milk sensors that are inserted into the four liners of the milking cups.
Photo: Salina Galvan
Craigmore’s offshore owners plant for future
CRAIGMORE Sustainables is a New Zealand rural investment company in horticulture, forestry and farming and it forecasts its horticulture business to grow from $400 million total assets to $650$700m over the next 18 months.
The growth will be in further planting of existing properties in kiwifruit, apples and grapes, along with new signed land purchases, not yet announced.
Chair Forbes Elworthy said Craigmore favours industries in which New Zealand has competitive advantages and strong markets.
The Craigmore 2023 Impact and Sustainability Report, published last November, reported over $1 billion in total assets across horticulture, dairying and forestry, totalling 60 properties and 229 direct employees.
Thirty-seven per cent of the capital is already invested in horticulture, with more to come. Most of the horticulture investments involve capitalintensive conversion of bare land to modern orchards on new structures and IP protected varieties.
It requires a long-term mindset, access to the right varieties, good development design and execution.
Craigmore has a unique structure compared to other offshore land owners in New Zealand – while it has access to offshore capital, it maintains New Zealand control over management and governance
Craigmore’s structure is built on managing its investments, often via limited partnerships funded by
capital it has raised from longterm private investors, mostly European.
Craigmore makes all material (and non-material) decisions regarding acquisition, divestment, management and director appointments. Investors have to be patient and passive.
The capital is placed in funds like the Craigmore Permanent Crop Partnership, which owns orchards and contracts in management services from Craigmore and others to run the assets and operations. Expansion is happening rapidly across 15 sites in Northland, Bay of Plenty, Gisborne and Hawke’s Bay, Nelson and Marlborough, horticulture general manager Con Williams said.
In the 2023 report, Craigmore tallied the planting in one year of 860,000 apple trees, 140,000 kiwifruit vines and 491,000 grapevines on what was previously pastoral land.
The apple industry is very innovative, and I think the key is to pick a structure and orchard design and do it well.
Con Williams Craigmore
In FY 2024, Craigmore had 2160ha of orchards, including leased land, and total assets of $376m, including seven main kiwifruit orchards, six large apple orchards, over 350ha in grapes in three regions, a minority share in 350ha of hops, and a small Far North avocado orchard.
Williams said some of the older orchards have now been operating four or five years and are
approaching full production and higher asset values.
Craigmore does not invest further along the value chain, in either packing or branding, but has management relationships with the like of Seeka, Trevelyans, EHC, Kiwicrunch, Indevin and Clayton Hops.
“We stick to the orchard development and management and leave others to do what they do best,” Williams said.
Kiwifruit, apples and grapes are the three major crops where Craigmore’s foreign investors satisfy the Overseas Investment Office requirements such as employment growth in disadvantaged communities, investment that might not otherwise have occurred, boosting export revenue and sustainable development.
Craigmore orchards are mainly in the core growing districts for the specific crops – kiwifruit in Kerikeri and Te Puke, apples in Gisborne and Hawke’s Bay, and grapes in Hawke’s Bay and the Wairau Valley, Marlborough.
“That is partly for climatic reasons and soils, and partly for the existing industry infrastructure, service providers and access to skilled people,” he said.
Around 25% of the kiwifruit orchards are managed and certified organic, matching investor preferences with the higher fruit prices.
Craigmore grows 20% of New Zealand’s organic gold kiwifruit, for the higher orchard gate returns that are available and its sustainability credentials.
COVERED:
UNDER DEVELOPMENT: Springhill is home to 170 canopy hectares of sauvignon blanc and pinot gris grapevines.
Significant recent gold kiwifruit development is almost complete at Wiroa, near Bay of Islands Airport, with vertical shelter and drip irrigation from the Kerikeri scheme.
Nearby are the smaller Kiwinorth established orchards bought from Seeka and still managed by that packhouse.
Northland sites total 200ha while five Bay of Plenty sites total 120ha, with a plan to even the regional split up over time, Williams said.
The Gisborne sites include cropping leases formerly part of Coxco and Cedenco, and the Sunpark and Glenpark apple orchards, being planted with Envy and Rockit, plus other varieties.
Further south, in Central Hawke’s Bay, Craigmore has its largest single location, the 480ha Springhill development at Ongaonga, now established with 180 canopy hectares (cha) of apples and this year 170cha of grapes.
Envy, Rockit and Dazzle are the main apple varieties, although Craigmore guards against being over-reliant on one variety.
An adjacent 17cha is developed in grapes, mainly sauvignon blanc with some pinot gris.
Also in Hawke’s Bay is the CFP apple orchards of 112ha in a range of varieties that is leased to Mr Apple, the Scales Corporation division.
Williams said the life cycle of apple varieties has quickened along with the introductions of new structures and planting densities to get the most out of every hectare.
The modern structure Craigmore has selected is 1950 twin-stem trees per hectare on trellis structures to produce a wall of fruit that might be mechanically harvested or pruned in the future.
“The apple industry is very innovative, and I think the key is to pick a structure and orchard design and do it well.”
Craigmore is a 24% owner in the Clayton Hops businesses at Battery Hill and Blue Rock, Tapawera, Nelson Province, consisting of growing, processing, pelletising and selling hops.
Williams said this is effectively the only stake Craigmore has beyond the orchard gate directly in processing. The business is managed by the Claytons who are the majority owners.
Over in Marlborough, the newly acquired Cat Creek properties total 418ha and are being planted in sauvignon blanc, to be managed by Babich Wines, with processing at Riverlands.
It will be planted at a rate of 90-100ha annually at 2222 vines/ ha over two years as water builds up in the storage dam totalling 180,000 cubic metres over a 5ha area.
The Craigmore horticulture business has between 80 and 85 full-time-equivalent employees, including those in the development and business teams along with orchard managers and their staff members. The seasonal workforce requirements are rapidly expanding as canopies mature and the crop loads to harvest increases.
“As a New Zealand-owned investment manager, Craigmore is on a mission to use long-term capital to grow our sustainable horticulture, farming and forestry sectors,” Williams said.
Springhill orchard, Hawke’s Bay, has one of New Zealand’s most extensive canopy covers to guard against hail.
Hugh Stringleman NEWS Investment
INVESTMENTS: Craigmore’s horticulture general manager, Con Williams, has a geographically widespread and capital-intensive field of operations.
Getting the right tools into hort’s hands
Sector
also needs the right policy settings to support approvals of crop protection products.
Sector perspective
NEW Zealand’s growers are facing a raft of new challenges as climate change brings dry conditions, warmer temperatures, more storms and increased outbreaks of pests and diseases.
This means it is essential that the horticulture sector, which is vital to the economy and critical to domestic food security, has the right tools to continue to operate effectively and sustainably.
It also needs the right policy settings in place to support approvals of crop protection products.
Registration of new crop protection products and new modes of action (including softer chemistry) is key to providing growers with the ability and confidence to invest in and succeed in the sector.
Currently, product approval takes a long time and is very costly, and there is a significant
backlog of applications stuck in the regulatory process for new actives designed to control pests and diseases in the most sustainable ways.
HortNZ is concerned that the approach the Environmental Protection Authority (EPA) is taking to registrations and reassessments threatens to leave the sector with fewer options to manage risks, in an increasingly risky environment.
The Principles in the Hazardous Substances and New Organisms (HSNO) Act requires the EPA to recognise and provide for safeguarding the life-supporting capacity of air, water, soil and ecosystems as well as recognise and provide for the maintenance and enhancement of the capacity of people and communities to provide for their own economic, social, and cultural wellbeing and for the reasonably foreseeable needs of future generations.
It is essential that the EPA give weight to both of these elements in both the way it is resourcing its workload, and in the way it is analysing effects.
HortNZ advocates for sensible regulatory settings that manage risks while acknowledging the vital importance and benefits of crop protection products to growers in production of their crops.
The sector absolutely supports the need to ensure that any agrichemicals and biological tools approved for use in New Zealand have been rigorously tested, through a trusted process.
HortNZ would, however, like the process for registration to be more efficient.
Given the complexities of resource and funding constraints, the EPA acknowledged in a recent report that there is a massive opportunity to make increasing use of the process where the EPA can recognise overseas bodies as international regulators and make rapid reassessment where international regulators have
Increased use of recognised international regulators would expedite the process and make it more cost effective for registrants.
already assessed and approved the same or similar substance.
Increased use of recognised international regulators would expedite the process and make it more cost effective for registrants. The cost of generated data in NZ is high, and inefficient if the same studies have already been undertaken overseas (that satisfy recognised international regulators).
If the EPA starts to make more use of this process, it will result in an approach that would then enable faster registrations, with fewer costs passed on to growers,
and would ensure NZ keeps up with our trading partners in terms of access to the latest pest control products.
NZ growers are working to progressively lessen the use of agrichemicals and move to products that are more environmentally friendly and sustainable with less impact on the environment.
The sector is front-footing initiatives to reduce the use of chemical sprays through the A Lighter Touch (ALT) programme. This is funding extensive demonstrations with the aim of transitioning from agrichemical pest management to agroecological crop protection.
HortNZ holds the contract with the Ministry for Primary Industries to deliver this programme, which is a partnership between horticulture product groups and the arable and viticulture sectors.
The programme partners are
contributing $16 million to the programme, with $11m coming from the MPI.
Crop protection products are vital to horticulture production. For example, without crop protection products, horticulture would lose 75% of the value of its crops.
Vegetable growers would incur losses of about 88% of the value of vegetable crops – 80% of vegetables in NZ are grown for domestic supply. New Zealanders’ food security is dependent on the EPA working well, as is our economy.
To manage that risk, we need to ensure interpretation of the HSNO Act is not creating a barrier to horticulture’s success, and that it is enabling, to allow growers access to new tools so they can produce healthy fruit and vegetables for New Zealanders and achieve the government’s vision of doubling exports.
Investing in your wellbeing during good times means you ’ll have plenty to draw on when the going gets tough.
Sam Whitelock Farmstrong Ambassador
Michelle Sands Sands is general manager for strategy and policy at Horticulture New Zealand
LOSSES: Without crop protection products, horticulture would lose 75% of the value of its crops, says Michelle Sands.
Labour-saving robots ready to hit the vines
Richard Rennie TECHNOLOGY Horticulture
LABOUR challenges have bitten the horticultural sector particularly hard in the past few years, and University of Waikato engineers have developed a suite of solutions that could provide more options to take the hands out of horticulture.
Mystery Creek Fieldays was the opportunity to showcase the robotic prototypes developed, covering repetitive, labourintensive tasks in the blueberry, viticulture and general horticultural sectors.
“Labour supply is a common theme throughout the sector and a lot of the technology we have developed is transferable between crops, whether it is apples, grapes or kiwifruit. It often just involves some retraining of the robotics,” said Dr Ben McGuinness of the university’s engineering school.
The prototype grapevine pruner robot has taken a skilled repetitive task and condensed its performance into the action of a robotic arm, complete with pruning attachment enclosed within a self-propelled aluminium
chassis driven by electric motors.
“We have had this out for the past two years and have trialled it in Marlborough and this year will be in Hawke’s Bay.”
He said the advent of artificial intelligence and machine learning has revolutionised how engineers programme and “teach” such robots, providing either a “rules based” approach or a more humanistic approach to tasks.
He acknowledges the machine remains slower than a skilled vine pruner at this point but has proven its worth as a proof of concept as the project comes to the end of its five-year funding, and starts to seek private investment to advance it to the commercial stage.
“It also offers the basis for a task that is unpopular, conducted in the middle of winter in often cold conditions where the work is required to be done relatively quickly.”
Meantime McGuinness and his team of graduates have also been working on making the life of blueberry harvesters easier with a machine that aids rather than replaces people.
The blueberry shaker and catcher is a handheld humanassist harvest device that shakes
It also offers the basis for a task that is unpopular, conducted in the middle of winter in often cold conditions where the work is required to be done relatively quickly.
Dr Ben McGuinness University of Waikato
the bush’s branches at the right frequency to cause the ripe blueberries to fall into a specially developed catcher.
Developed by Master’s student Alicia Sim, the machine’s smarts are based on the understanding
that ripe berries will fall in response to a different frequency of shaking than unripe berries.
McGuinness said blueberries are among the toughest berries to pick given they demand pickers spend time both upright and bent over the bush. Multiple passes have to be made over the same bushes, and demand a delicate berry by berry approach when picking.
Labour costs in the sector have surged by 45% in the past six years, and the handheld device is an accessible tool for smaller operators to reach for when seeking productivity gains.
Typically, because of the tough picking task younger workers are required, and the machine also opens the door to a wider
ROBOTIC: Dr Ben McGuinness, of University of Waikato engineering school, said the prototype vine pruner has proven the task can be automated, with improved speed now a focus.
demographic, vital in a constricted labour market.
The engineering school has been engaged in discussion with a local operator keen to oversee a precommercial production run of the machine.
Also on show at Mystery Creek was a low-cost navigation system for autonomous vehicles used in orchards, including kiwifruit.
The innovation provides an affordable alternative to more expensive GPS and LiDAR (light detection and ranging) technology often used at present. The university system offers a cost-effective set-up that has multiple applications in thinning, grass cutting, pest detection and harvesting.
The world needs to grow more plant breeders
Annette Scott TECHNOLOGY Research
ALACK of scientists specialised in plant breeding has the potential to lead to dire food security implications globally, according to new research released out of Australia.
A joint paper between Australia’s national science agency CSIRO, Lincoln University in New Zealand and McGill University in Canada has painted a concerning picture about future capacity in the plantbreeding area.
Plant breeding is a multidisciplinary science that underpins the global production of food, animal feed, fuel and fibre.
Using detailed surveys in three Organisation for Economic Cooperation and Development countries, the study investigated the current state of the plant breeding sector across tertiary education, government and industry levels.
The findings highlight increasing concerns about the shortage of trained plant breeders, especially in the private sector, impacting food security and the economy. It provides valuable insights for decision makers toward strategic planning to address global food and fibre production challenges.
The paper found that to maintain the current level of agrifood, fibre and feed production, the skills shortage needs to be urgently addressed.
Lead author and CSIRO scientist Dr Lucy Egan said the shortage has been building for some time and has the potential to impact agricultural production worldwide.
“What we’re seeing is a whole generation of highly skilled plant breeding specialists who are now reaching retirement age, with a gap left as university graduates opt to focus on other areas of plant science including molecular biology,” Egan said.
“The implications of this shortage could be dire, affecting global food security and the economies of different countries around the world, including NZ and Australia.”
Lincoln University’s Dr Rainer Hofmann said the situation is similar in NZ.
“Agricultural production plays such a key role for our country, so it’s really important we start looking at strategies to slow this skills shortage,” Hofmann said.
“Our research looked at the current state of plant breeding across tertiary, government and industry sectors and found that
decreasing skills in plant breeding will have flow-on effects for a wide range of agrifood and fibre sectors.”
The report has highlighted a number of responses to the skills shortage, including the need for a co-ordinated approach between the public and private sectors.
McGill University’s Dr Valerio Hoyos-Villegas said one of the keys in addressing the shortage will be the establishment of dedicated training facilities in various countries.
Suggestions for improvements include the establishment of
the dedicated facilities, national funds for graduate fellowships and increased private sector involvement in plant breeding education.
The importance of adapting plant breeding courses to emerging scientific and technological advancements is highlighted, along with industryrelevant training and improved promotion of the sector.
“We also need more focus on graduate programmes in plant breeding and increased private sector involvement if we are to keep pace with emerging scientific and technological advances in the sector,” Hoyos-Villega said.
SKILLS: The paper found that to maintain the current level of agrifood, fibre and feed production, the skills shortage needs to be urgently addressed.
“Due to the long-term nature and the variety of agricultural industries plant breeding serves, it is important that funding and research become a matter of priority, with modernised plant breeding education top of mind.”
Agricultural production plays such a key role for our country, so it’s really important we start looking at strategies to slow this skills shortage.
Rainer Hofmann Lincoln University
Kiwifruit now knocking on cows’ door
Richard Rennie NEWS Horticulture
CHEAPER land options, plentiful water supply and a desire to diversify land use is driving increasing demand for the services of orchard developers in the Waikato region, pushing the crop well beyond its traditional Bay of Plenty boundaries.
Zane Marsh, founder and managing director of GrowTech, an orchard development company, said Mystery Creek Fieldays has him fielding strong interest from farmers in the region, and orchardists in Bay of Plenty looking at land options further afield.
We have had four dairy farmers who have gone ahead and diversified into kiwifruit who would not look back now they are set up.
With almost 700 hectares in kiwifruit, Waikato sits well behind the Bay of Plenty’s 11,300ha, but still third after Auckland region’s 730ha.
The area in crop in Waikato has lifted by over 100ha in the past four years, representing almost 25 additional averaged-sized orchards.
Marsh was confident the spread would be even faster in coming years as price differentials continue to open up between it and the BoP.
Waikato’s 700ha comprises 430ha of Green, 220ha of SunGold and 40ha of RubyRed.
“We have had four dairy farmers who have gone ahead and diversified into kiwifruit who would not look back now they are set up.”
He said Waikato’s generally ample water supplies are a critical factor, given how much needs
to be on hand to operate frostprotection systems.
But it is the significantly lower capital cost of land that means orchard conversions can also be done to a high standard, from a blank canvas.
“You can be paying well over $800,000 a hectare for an orchard in Bay of Plenty now.
“Over here you are not paying nearly that for your land, so you are able to set the entire operation up in the right order, to a high standard with good shelter, good frost protection, along with hail protection.”
Having orchards fully enclosed also helps elevate the temperature by 1-2degC, which significantly improves the growth rates of young plants.
“Having that cover in right from the start gives the plants a far better start and means you will start to harvest off them at 21 months, not 33 months, so you pay for the extra protection in your first harvest.”
Total turnaround time from putting in the first posts to finishing an orchard conversion is about four months.
Marsh’s business is now almost exclusively outside the traditional growing area of BoP, with a crew of full-time staff based in Waikato, but also working into South Auckland.
The industry recently celebrated the news that Hi-Cane budding spray can continue to be used, something he suspects may open the door wider to new orchardists in the regions.
“It was already pretty hard to get new entrants to the kiwifruit orchard sector, so having that decision has removed some uncertainty, and is a massive win.”
Given the volatility attached to dairy incomes in recent years, he is confident more farmers will consider committing part of their farm to kiwifruit to help balance the rollercoaster of returns.
“When you think about it, we are only talking maybe 4ha, which on an average-sized farm is not an unrealistic area to commit.”
Young blood to be tested in competition
Richard Rennie PEOPLE Skills
EIGHT young contestants are poised to test their skills in the Bay of Plenty Young Grower competition that kicks off on July 17 with a full day’s contesting before a gala dinner and awards evening to name the champion.
The annual competition, run in co-ordination with New Zealand Kiwifruit Growers Incorporated as part of a goal to develop and retain young talent in the sector, will be showcasing the competitors’ horticultural skills with a series of theoretical and practical skill challenges.
“The competitions have an emphasis on practical production or close to orchard and farm skills and business skills associated with growing and industry knowledge,” said contestant liaison Bryce Morrison.
This year’s contestants reflect the influence of kiwifruit across the region, with six of the eight having strong links to the sector. They include Jack Tortoiseshell, a DMS orchard manager who last year became the youngest ever orchard manager employed by DMS.
Fellow contestant Lilah Rosenfeldt has been an orchard manager for three years and now
specialises in trials carrying out research on new cultivars.
Brad Whitehead is one of only two contestants not directly involved in kiwifruit. He grew up with a horticultural background, but became an accountant, only to leave his desk in 2020 for the avocado sector. He is a manager for Ashlin Avos.
This year’s entrants also include Plant & Food Research technician James Hickman and Ballance Agri-Nutrients horticultural specialist Grace Lowery.
The competition is now in its 17th year and has become a significant platform for emerging talent in the region’s vital sector.
COWS TO KIWIS: GrowTech founder
Zane Marsh says the vast majority of his company’s work at present is based around the very non-traditional kiwifruit growing area in Waikato.
Zane Marsh GrowTech
FEDERATED FARMERS
Inquiry an opportunity not a threat
An inquiry into the rural banking system shouldn’t be seen as an attack on the banks, but as an opportunity to build a stronger agriculture sector, Federated Farmers says.
“This isn’t about having a go at or just whinging about the banks,” the organisation’s banking spokesperson Richard McIntyre says.
“This is a once-in-a-generation opportunity for us to really dig into every component of the rural banking system to see how it’s operating.
“There’s a real chance here for everyone to work together to improve how that system functions for the future of our farming sector.”
McIntyre, who’s fronted Federated Farmers’ months-long call for an inquiry, says he’s been surprised at the reaction from some of the banks.
“I’ve found it interesting that they’ve been very defensive, rather than seeing this as an opportunity to create more transparency and give farmers more confidence.
“This is a chance for us all – banks, farmers, the Government and other parties – to consider what we could do to create a more resilient primary sector.
“I really want to see everyone engage in this positively, including the banks, because this is our chance to improve the rural banking system for the banks as well.”
A better-functioning banking sector should lead to greater confidence among farmers to invest in growing their businesses, he says.
“We’ve got a lot of challenges coming towards us as an agricultural sector.
“We’ve got succession challenges, climate change mitigation and adaptation, and a huge amount of technology coming that we need to have the confidence to invest in.
“We got to where we are today –the most efficient producers of meat and milk in the world – because those who came before us had the confidence to try new things, to invest and to grow. We need to get back there.
I really want to see everyone engage in this positively, including the banks, because this is our chance to improve the rural banking system for the banks as well.
Richard McIntyre Federated Farmers banking spokesperson
“Farmers must have the confidence to adapt our farming systems, which is something I hope will come from this inquiry.”
McIntyre says high interest rates, limited ability to borrow money, and a lack of farmer confidence are constraining the farming sector’s growth and development.
“We’re starting to see some real succession challenges because it’s so much harder to get into a farm given some of the cashflow requirements.
“If we can’t bring people into our sector and provide enough opportunity to keep them there, that could be the end of the traditional family farm as we know it.
“That would be a tragedy for our rural communities and the progression pathways that have served our sector incredibly well for generations.”
Since Finance Minister Nicola Willis on June 12 ordered a parliamentary inquiry into banking competition, with a focus on rural banking, McIntyre has heard from countless farmers.
“There’s a huge amount of excitement among farmers about this inquiry getting the go-ahead from the Government,” he says.
“Heaps of farmers who had
contacted me previously, wanting to share their stories, have got in touch again to say, ‘Richard, this is absolutely fantastic’.
“But the overarching theme from farmers is the same: they want to know when we’re going to see some change. It’s great that we’ve got this inquiry announced, but they want to know how long it’s going to be. Is it going to be three months, six months, a year?”
McIntyre, who confesses to being “naturally impatient”, says it’s important not to rush the process, though.
“A lot of farmers are suffering through significant pressure and high interest rates, which are a huge cost for their business.
“They’ve had these questions for a
ASPIRATIONAL: Richard McIntyre says an independent inquiry into rural banking is a chance to improve the banking system so the ag sector can continue to adapt, evolve, and thrive into the future.
very long time around the fairness of their treatment by the rural banking system.
“So, I think we all want things to be sorted out pretty fast, but it’s really important that we take our time and get some good outcomes from this.”
That means the Government needs to set the right terms of reference for the inquiry, allowing the right questions to be asked and the right people to be involved.
“No stone should be left unturned,” McIntyre says.
“It’s going to take a little while but I’d much rather we spent the time to get it right.
“There would be nothing worse than having to revisit this later because we rushed it and didn’t do the job properly.”
Feds: H&S review timely amid financial stress
People’s health and safety is paramount, but it’s also important to weigh up cost against actual risk, Federated Farmers says.
“Absolutely, we want to keep our people safe, and the agricultural sector’s record in this regard needs improvement,” national board member David Birkett says.
“But at a time when businesses, families, councils and even the Government are having to wring every bit of value from their dollars, it’s timely to review what’s working and what isn’t in terms of health and safety regulations.”
Federated Farmers supports the recently announced Government review, which will look at whether current health and safety requirements are too strict or ambiguous.
The review will also consider
VITAL: Federated Farmers firearms spokesperson Richard McIntyre says firearms are a necessity on farms for controlling pests like possums, pigs and wallabies.
whether the threshold at which work-related risks need to be management is under- or overcautious, and the ‘reasonableness’ of other requirements.
“The number of road cones in this country is over the top,” Birkett says.
I think people have a bit of fear around health and safety obligations. That’s not the way to get people engaged.
David Birkett Federated Farmers board member
“We also have a traffic management code that’s nearly 600-pages long, and councils and electricity companies are saying
House
traffic management can drive as much as 30% of the cost of a project.”
Birkett says the review should also look at the responsibilities of a PCBU (person in charge of a business unit) versus those of workers.
“Sometimes if feels like the employer is liable for everything. Of course, they should have robust safety procedures, but there has to be a level of self-responsibility by employees too.
“There needs to be that balance.”
The review could also take in the role of WorkSafe as the regulator, Birkett says.
“In the past, they’ve been quite abrasive with their investigations or inspections.
“Employers can feel like they’re guilty unless they can prove their innocence.
“We know WorkSafe are already going down a track of a more
IMPROVEMENTS: Health and safety is incredibly important on farms, but the rules need to be fair, practical and effective, David
reasonable approach, but there’s still work to do.”
Birkett believes there’s more scope for a co-operative approach, rather than the regulator wielding a big stick.
“I think people have a bit of fear around health and safety obligations. That’s not the way to get people engaged.”
says.
Health and safety paperwork could also be streamlined, he says.
“Should there have to be a health and safety meeting once a week, when maybe a business only has one or two staff members?
“It’s worthwhile taking a look at where we could make improvements and reduce costs.”
Onerous gun laws in the firing line
Firearms laws need to strike a better balance between managing risk and ensuring farmers have access to guns for genuine needs, Federated Farmers says.
Associate Justice Minister Nicole McKee last month announced a comprehensive programme to reform New Zealand’s “outdated and complicated” firearms laws.
Richard McIntyre, Federated Farmers firearms spokesperson, says stepping back and spending more time constructing sensible, workable gun laws is a good move.
“The public need to have confidence that they’re safe and only the right people have access to the right firearms, but the rules need to be practical and fair too.
“The legislation needs to do a better job of balancing the risks of firearms in the community with the
need and legitimate use of firearms as a tool on farms.”
McIntyre says firearms are a necessity on farms for controlling pests like possums, pigs and wallabies.
“We also need to be able to euthanise stock when they get sick or injured,” McIntyre says.
“It’s important that we have reasonable access to firearms so we can carry out those tasks, otherwise there’s a genuine risk to animal welfare and farm profitability.”
Many farmers feel the current laws place an undue burden on firearms owners, with significant compliance costs, he says.
“A lot of the changes to our gun laws were made following the March 15 terrorist attack, but consultation wasn’t good enough and felt rushed.
“I absolutely understand why those
changes were made to give the public confidence in their safety, but I’m not sure we got the balance right.
“We now have a chance to take a closer look, with more time and a clear head, and design a system that protects our communities without being overly onerous for firearms owners.”
In her announcement, McKee said the gun laws, which have been in place for more than 40 years, have been amended in a piecemeal and sometimes rushed way.
“This has resulted in outdated and complicated requirements that unfairly target licenced firearms owners, often with no clear benefit to public safety,” McKee says.
She said the reforms would result in simple and effective laws that keep the community safe while reducing the regulatory burden for licenced firearms owners.
Come and celebrate 100 years with us.
We will be gathering on 20-21 July 2024 to commemorate the 100th anniversar y of Flock House opening For anyone with a passion or link to its histor y we would love you to join us.
Photo credits: Archives NZ & George Wilson
Birkett
Couple inspiring the next generation
Farming in New Zealand’s Far North is a long way from her previous life as an office worker in Uruguay’s capital city, but Maria Puig has never felt more at home.
Now in her second season contract milking on Northland College Farm in Kaikohe, Puig and partner Mauricio Castellano are helping inspire young people to pursue a career in farming.
“We love Northland, especially Kaikohe. We feel a special connection here,” Puig says.
“We feel in some way we can motivate the new generation here, and it feels nice to have a job that also has value and makes a contribution.”
Northland College students with an interest in farming can gain practical skills on the school’s farm under the guidance of Puig and Castellano.
“It’s the best classroom,” Puig says.
“We like to show them that, if they are willing to work hard, they can go far in this industry.
“We just love helping to push young people to get the best out of themselves, and if they are keen on farming, that there are so many opportunities.”
Puig and Castellano picked up several wins in this year’s Northland Dairy Industry Awards sharefarmer category, including the Federated Farmers Leadership Award for their work with youth.
Their drive to help young people into farming stems from personal experience.
After leaving their desk-based careers in Montevideo (Uruguay’s capital city), the couple landed here in 2018 with working holiday visas looking for adventure.
“We are from the outside of Montevideo and, when we were young, during the school holidays we had experience helping the local farmers, and we always liked it.
“We had a goal to try it in New Zealand and we just fell in love with it.
“We love the farming lifestyle, living closer to the nature, and the
possibility of learning things in so many different aspects.
“Right now we are learning how to manage a farming business, but before that we were learning how to fix a leak, or drive heavy machinery.
“You feel empowered.”
The couple started out as farm assistants in Canterbury, before moving to the college farm in the 2021/22 season and then stepping into contract milking.
Puig says the study opportunities, support, career paths and research in New Zealand agriculture are worldleading, and she feels grateful to have found it.
“If you want something, have the passion and you work hard for it in New Zealand, it is there for you.
“This country – and its farming industry – is amazing in that way,” she says.
The pair have worked hard to grow their skill sets not just informally onfarm, but through formal learning opportunities.
“We started studying through Primary ITO and, since then, we’ve
been always studying, working to learn and improve more.
“I’m now doing my Level 5 diploma in Primary Industry Business Management, and Mauricio is doing Level 4.”
Puig says they love new challenges – and farming has provided plenty of them.
If you want something, have the passion and you work hard for it in New Zealand, it is there for you.
Maria Puig
Northland dairy farmer
“The biggest challenge for us is farming in Northland. We feel like we’ve learned the most since we moved here.
“People always say if you farm in Northland, you can farm anywhere, with the extreme weather events, trying to manage kikuyu, summertime, and so on.
“But Northland also has a great community of people. We help
each other and there are a lot of discussion groups.”
She says they’ve been supported hugely by the college farm’s committee of eight farmers/experts, who provide regular advice and feedback on the farm operation.
One of the couple’s goals is to take on a farm cadet, either from Northland College or through Whangarei A&P Society’s intern programme.
And although farm ownership is a distant goal for the couple, who now have a son called Franco (turning two in August), they first want to spend a bit of time farming overseas.
“I don’t think we’ll find the farm we love in other parts of the world, but we want to try farming in Ireland and Canada, and to bring back to New Zealand new ideas and points of view.”
Returning to New Zealand will be a certainty, she says.
“New Zealand is the farming leader in the world, but we also just love the beaches, the forests, the people.
“Everything here is like a dream.”
HOME: Farming and living in New Zealand ‘is like a dream’ for Uruguayans Maria Puig and Mauricio Castellano, who have built a new life and welcomed son Franco into their family since settling in Northland.
LEADERS: Maria and Mauricio receiving their New Zealand Dairy Industry Leadership Award from Federated Farmers Northland president Colin Hannah earlier this year.
NZTA ‘duck shoving’ on closed Waikato road
Rural residents whose lives have been disrupted by a road closure outside Hamilton for more than two years deserve immediate action, Federated Farmers Waikato’s president says.
Keith Holmes says NZ Transport Agency Waka Kotahi (NZTA) has been side-stepping its responsibility over Telephone Road for too long.
“These residents affected are innocent bystanders of a juggernaut of incompetence and lack of accountability from NZTA.
“Telephone Road should have been reopened months ago, but what we’ve seen is typical timewasting from the bureaucrats.
“This sort of duck shoving behaviour needs to stop.”
Telephone Road, a section of State Highway 1B just east of Hamilton, has been closed since April 2022, when a truck struck and dislodged
a section of rail at a crossing on the road.
With the risk of a train being derailed, NZTA and KiwiRail closed the crossing while it discussed the future of the intersection.
Traffic has been diverted for the last two years along nearby Holland, Waverley and Seddon Roads.
A farmer who lives on the road says the closure has been incredibly disruptive not only for the local community, but also for those travelling between Hamilton and towns to the east.
“It’s been closed for so long now,” says the farmer, who did not want to be named.
“It’s become a political football between Waka Kotahi and the Waikato District Council (WDC) on who’s going to pay for a solution.
“The diversion adds more than 40 minutes to trips in the tractor, and 20 minutes by car. It’s a real nuisance
trying to get the kids to school or into town for groceries.”
The alternative roads run across peat country and they’re bumpy, despite some upgrading work funded by NZTA.
“You’ve got to be mindful of your speed. They’re just normal country roads without much leeway on them, so you’ve got to be careful passing other vehicles.
“Wear and tear from heavy vehicles diverting down those roads is tearing them to shreds,” the farmer says.
A community petition calling for the road to be reopened claims NZTA has forgotten its duty to taxpayers.
Waka Kotahi commissioned a report on future options for the road, which ranged from permanent closure of Telephone Road through to an $11m plan to reopen the road.
end up paying at least half of the cost of future solutions.
“We’ve been pushing hard against that,” WDC infrastructure committee chair Eugene Patterson says.
DAMAGED: Telephone Road, a section of State Highway 1B just east of Hamilton, has been closed since April 2022, when a truck struck and dislodged a section of rail at a crossing on the road.
There were also options for creating a cul-de-sac and a level railway crossing for cyclists and pedestrians ($3.32 million) or putting in a roundabout ($11m).
“That’s complete drivel – an expensive prevarication at the expense of both the ratepayer and the taxpayer,” Holmes says.
“The local community don’t need another costly report – they need their road reopened.
“This is another case of bureaucratic cat and mouse, ignoring the plight of its stakeholders, Telephone Road residents, who are the trusting, innocent bystanders.
“In this case, NZTA is the ‘cat’ and the ‘bully’ because it has the biggest cheque book.”
With the opening of the Hamilton section of the Waikato Expressway, which has eased pressure on the diversion route, NZTA wants Telephone Road’s state highway status revoked.
That could mean WDC ratepayers
Telephone Road should have been reopened months ago, but what we’ve seen is typical time-wasting from the bureaucrats.
Keith Holmes Federated Farmers Waikato president
“The closure of that road does split the community. It’s harder moving farm machinery and vehicles around, it adds to travel time and it has created problems for residents.”
Patterson says WDC is continuing to negotiate with NZTA to find a solution and get Telephone Road open “sooner rather than later”.
David Speirs, NZTA’s director of regional relationships for the Waikato, says any solution to reopen the railway crossing needs to satisfy KiwiRail’s safety requirements.
He says NZTA is committed to
producing a practical and affordable solution to allow the road to reopen, and a bid for funding is included in the State Highway Investment Proposal released in April 2024.
However, as with rural and urban roads around New Zealand, funding and prioritisation will be considered by the NZTA Board in the National Land Transport Programme by 1 September 2024.
“If funded, detailed design, consenting, and property work will occur over the next few years, followed by construction, which will enable the road to reopen,” Speirs says.
Holmes says it all sounds like a lot of “mucking around” and incompetence by NZTA.
“They knew that rail crossing was a risk. NZTA should have done the forward-planning and budgeting much earlier.
“Waiting for more funding is an indulgent cop-out and the situation needs a quick resolution from NZTA.
“Otherwise, bring in a Ministerial review to show the obvious problem of poor leadership, planning and abuse of planning privilege by NZTA.
“Telephone Road residents deserve much better than this.”
UNHAPPY: Federated Farmers Waikato president Keith Holmes says it’s not good enough that Telephone Road residents have had to put up with two years of diversions and longer drive times.
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Pre-register by emailing. Viewing by appointment if prior to open viewing on 15th & 16th July, 10am to 2pm Food and drinks available on auction day.
Notice of Election 2024 Board of Directors
Ravensdown Limited is governed by a board of 9 directors, 6 of whom are shareholder-elected, representing the North and South Islands One shareholder-elected director from each Island is required to retire by rotation each year
Bruce Wills (North Island) and Pete Moynihan (South Island) are the incumbent directors retiring by rotation this year and nominations are now called for candidates to stand for these director positions Bruce Wills (North Island) has indicated that he intends to stand for re-election Pete Moynihan (South Island) has confirmed he will not be standing for re-election
Nominations must be made on the official form, which can be obtained from the Returning Officer Each nomination form must be signed by the candidate and two nominators who must be transacting shareholders of Ravensdown and who are eligible to vote for the relevant Island area election. Nominations must be received by the Returning Officer by 5pm on Friday 26 July 2024.
For further information or nomination documents please contact the election helpline 0800 666 038 or email iro@electionz com
Anthony Morton
Returning Officer - Ravensdown Limited PO Box 3138, Christchurch 8140
• International marketing governance role
• Highly innovative value chain organisation
• World-leading ethical brand
The N ew Zealand M erino Company (NZM) is an integrated sales marketing and innovation company focused on transforming N ew Zealand s sheep industr y It is one of the world ’s leading ethical wool companies , and through its ZQ and ZQ RX brands sells wool to a global net work of brand par tners and value chain par tners
The NZM B oard is looking to endorse the nomination of t wo director candidates for a three-year term appointment by the shareholders at the upcoming Annual G eneral M eeting on 1 N ovember 2024 These appointments will collectively bring a combination of the following skills:
Previous senior executive experience in a tex tile sector supply chain business
• A deep understanding of the demand side of these businesses including the wool value chain
• A background in apparel fashion brands and an understanding of this in the retail contex t
• E xper tise in the trade and consumer aspects of marketing
• Previous international business development experience and net works
Previous board experience, or experience interacting with boards
• Primar y sector knowledge and credibilit y with the grower communit y
This is a highly commit ted board, individuals
approach and a passion for the
To apply on a confidential basis please
STOCK REQUIRED
Temuka Saleyards
•
Contact
Corbettt & Rankin Partnership 440 Mayfield/Lismore Road
Capital Stock | Wiltshire Ewes
SALE
Thursday 11 July | Commencing 1pm
• 400 2th Ewes SIL 162% Wiltshire
• 350 2 Shear Ewes
• 300 3 Shear Ewes
300 4 Shear Ewes
SIL 188% Wiltshire, Suffolk & Poll Dorset
Rams 8/4 December shorn
400 Ewe Lambs ( Well grown)
Being sold due to farm being leased out Ewes on toxo, campo & footvax programme
Wiltshire rams sourced x John Harvie’s Wiltshire Stud (Nenthorn Valley) They are a top line of ewes and can be thoroughly recommended
Sale located 4km from Mayfield township on Mayfield/Lismore Road
Enquiries: Richard Ashworth 027 229 9377 CORBET T & RANKIN
I remember the time I took my daughter out for her first drink.
Off we went to our local bar only two blocks from the house. I got her a Guinness. She didn’t like it, so I drank it. Then I got her a Heineken. She didn’t like that either, so I drank it. Finally, I thought she might like some cider? She didn’t. I drank it. I thought maybe she’d like whiskey better than beer so we tried a Jameson’s; nope! In desperation, I had her try that 25 year old Glenfiddich. The bar’s finest scotch. She wouldn’t even smell it. What could I do but drink it! I thought she just didn’t like to drink or she didn’t like the environment there. I was so drunk by this stage that I could hardly push her stroller to another bar.
Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’re keen to hear more! If you’ve got a joke you want to share with the farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@agrihq.co.nz with Sale Talk in the subject line and we’ll print it and credit it to you. Conditions apply
Other markets taking up the China slack
Beef and lamb average export values are on the rise, bringing some good news to the farmgate.
Sara Hilhorst MARKETS Exports
THE latest average export value data released has finally delivered some positive news to the lamb and beef markets.
May’s lamb average export value (AEV) lifted 67c/kg month-onmonth to $10.42/kg. While this was 66c/kg behind the five-year average for May, it is the closest value to the five-year monthly averages all season and returns to last October’s level.
The increased activity from export markets has flowed through to lifting farmgate prices. This has given processors a little more wriggle room to inject some procurement competition into the system, particularly as slaughter supplies slump. Further upside in export prices will solidify any further increases at the farmgate. Recent positivity stemming from Japan suggests this market is becoming more competitive for New Zealand lamb, upping its consumption from 440 tonnes in April, to 630t in May.
Although China remains our largest lamb market in volume, increasing by 305t in May, this market continues to be weak in terms of value.
The European Union, United Kingdom and United States have all increased their inquiries and in recent weeks this has translated to further upside in export prices. Demand for higher yielding, higher priced cuts from the EU and UK is supporting this market, coupled with a tightening lamb supply.
While Australia continues to pour record volumes of lamb into global markets, New Zealand retains a competitive edge in the EU and UK market because of easier trade access and our smaller carcases better suit the needs of the UK consumers.
NZ exported a total of 35,500t of lamb in May – the highest monthly volume since March 2021. This comprised 30,600t of frozen and 3000t of chilled lamb. The fact that NZ is exporting more but also seeing a corresponding lift in export values suggests the market may be turning a corner. Focusing on the EU, NZ exports there jumped to 7000t, up from 5700t in April. Exporters welcomed strong demand for chilled boneless legs. This supported the fourth consecutive month-on-month lift in the chilled AEV to $18.28/kg.
This sits 52c/kg above the fiveyear average for May. Frozen demand from the EU lifted 25%
The fact that NZ is exporting more but also seeing a corresponding lift in export values suggests the market may be turning a corner.
in May from April but at an AEV of $9.66/kg, this is still below the five-year average for May of $10.27/kg.
The positive trend continues in the beef market too. The monthly AEV for May lifted to its highest level since November 2022, to $9.46/kg.
Broken into chilled and frozen,
chilled lifted $1.17/kg to $17.71/ kg, and frozen supplies were 70c/ kg stronger at $8.90/kg.
In May, volumes shipped to the US lifted substantially to 24,150t – the highest monthly volume dispatched in six years. Just over 18,000t of this was manufacturing beef, a month-on-month increase of 4300t.
But there has also been strong support for higher-valued, chilled boneless cuts that hit 758t, the largest volume since December 2021. Exponential growth in demand for these from the US this season has supported export pricing and flowed to farmgate prices.
China’s beef purchases are more
subdued. New Zealand shipments in May dropped to 14,880t, which sees it slip behind the US as New Zealand’s largest market season to date.
While there is a weakness in volume demanded, there is also a weakness in pricing.
China decreased its demand for more expensive chilled cuts in May and turned to cheaper frozen cuts.
This trend is similar to lamb and while China navigates its weak economic conditions, this is unlikely to change consumer behavior in a hurry. But thankfully, New Zealand can turn its focus to other markets that are encouraging.
Pinpoint the factors shaping beef and lamb slaughter prices up to six months in advance with this must-have forecasting and planning tool.
COMPETITION: Recent positivity stemming from Japan suggests this market is becoming more competitive for New Zealand lamb.
Weekly saleyards
Dry conditions in the South Island have been the topic of conversation for the last few months. A small amount of moisture and growth in Canterbury has improved store markets slightly. Procurement issues have also given prime markets some upside in both cattle and sheep. On the flip side, another wave of wet weather over the east coast of the North Island has left Hawke’s Bay and Gisborne feeling battered once again. Road closures and safety concerns caused the cancellation of bull sales and the Matawhero sheep sale scheduled for Thursday, July 27.
Mixed-age Angus & Angus-Hereford cows, 616-632kg
Mixed-age Friesian cows, 546-580kg
5-year Romney ewes, SIL Suftex 208%, heavy
6-tooth Romney ewes, SIL Sth Suff, Suftex, good to heavy
Romney ewes, SIL Sth Suff, Suftex, medium to very good
Mixed-age ewes, very heavy
Mixed-age ewes, heavy
Mixed-age ewes, good
Prime Angus, Angus-cross steers, 445-572kg
Boner Friesian, Friesian-Jersey cows, 437-496kg
AgriHQ market trends
Cattle Sheep
NZX market trends
There is method to the winter madness
Philip Duncan NEWS Weather
HALF of 2024 is over and done with. We’ve passed the shortest day, we’re in July, the days are starting to get longer again (I mean, sure, it’s measured in seconds at this early stage but still, glass half full etcetera). As many of you tell me, as the days get longer, the cold gets stronger, or as the days lengthen the cold strengthens.
So with that – welcome to true winter! The next two months are traditionally the time of the year we’re most likely to be hit by the coldest air and some of the bigger winter storms.
But as I’ve often written about, New Zealand’s location on Earth (halfway between the equator and Antarctica) means one week we can have mild sub-tropical winds, the next week it’s Antarctic air. In fact, sometimes we can have very frosty weather in May, only to find it got milder in some places the month or two after.
The placement of air pressure zones is the main deciding
RANGES: Expected rainfall for 15 days shows some large wet areas between Australia and NZ – but our mountains and ranges block that rain for some locations in the east.
factor on whether or not we’re experiencing warmer, colder or normal temperatures for this time of year. When Antarctica broke heat records a couple years ago it was due to a northerly wind off Australia’s interior. When NZ has reached our highest temperatures it was also courtesy of airflows out of Australia’s hot interior.
All this messy variety is what makes our weather – so I’m never truly surprised when winter weather arrives early in autumn, or spring-like weather pitches up in the depths of winter.
NZ’s weather patterns are full of
chaos and right now everything is looking bigger. We have big highs in the forecast – but between them there are big lows.
The “crazy”, turbulent, often confusing weather pattern is now entering peak madness.
The storm in the eastern North Island for the last week of June, the storms bringing days of snow to the Australian Alps, the big highs coming in with frosts and temperatures well below zero in Queensland, the pockets of dry still stuck over some regions of NZ ... there is HUGE variety in weather conditions across Aust-
ralia and NZ right now.
Forgive me for using Australia as an example of NZ’s weather, but parts of Tasmania have maximum temperatures in the single digits on July 1 – while parts of the Northern Territory have highs in the mid 30s!
Soil moisture anomaly (mm) at 9am on 25/06/2024
NEEDS: This Niwa Soil Moisture anomaly map shows some regions are still in need of more rain, but many regions aren’t as ‘thirsty’ as they were a month ago.
In NZ, northerners have had slightly milder than usual days and nights lately, whereas the lower and eastern South Island has recently had a run of singledigit maximums with a lot of
cloud and fog and gloom. It looks as though July offers some big weather variety thanks to big highs and big lows. The method to this madness is that more regions are getting the wet weather they need – and hopefully for drenched regions some dry and sunshine in the mix this July too.
