3 Lamb prices too high Vol 17 No 37, October 1, 2018
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Water scheme sinks Annette Scott annette.scott@globalhq.co.nz
S
OUTH Canterbury farmers banking on Hunter Downs water to future proof their farming businesses have been left high and dry. The scheme that’s been 10 years in the making has been scrapped because of low farmer uptake, Hunter Downs Water chairman Andrew Fraser said. Hunter Downs Water, after investigating the feasibility of and completing extensive work around optimum scheme design and funding solutions, together with Waimate-based Rooney Holdings, had reached the stage where there was a technically and economically viable scheme for all stakeholders. In August it released an updated product disclosure statement to issue up to 7000 new water shares to raise $18.55 million to fund the construction and all prospective investors were asked to reconfirm their commitment to the project by September 10. But despite the years of work and planning to finally reach a financially viable stage the required support was not forthcoming. “It is with great disappointment that I advise that as a result of a significant drop-off in support from those farmers previously committed this project no longer has sufficient numbers to warrant proceeding with this scheme,” Fraseer said. Project manager Stacey Scott said the board and many supporters had worked incredibly
hard over the past 10 years and while there were many hurdles the team and community had remained committed to deliver the scheme. The decision to can it is gutting for everyone involved, she said. “We had the farmer support to get the start but we just can’t load the level of risk on those day-one adopters to make the start. “There just became too much change and it became too hard. It’s 10 years, we have given it every shot. “Since Christmas we lost Government support and had to find an option. While the BNZ did a wonderful job of getting together a term sheet it just came down to farmers. “You can’t expect 50 farmers with 7000 hectares to safeguard reliable water for generations – and some of those farmers dropped off in the end,” she said. There were various reasons why farmers failed to support the scheme. “This current environment we are working in really worries people and they just got cold feet on their investment. “A the end of the day they weren’t willing to take that commitment to construction.” Cropping farmer Gary Johnston was an early adopter and is now “bloody disappointed”. Next year his family will have farmed the property at St Andrews, south of Timaru, for 100 years. “I’m a third generation farmer. We have two sons and some grandsons so we are looking at fifth generation. “We were future proofing for generations to come. This is an opportunity lost for this district.” While fully irrigated there are
BLIND: Every year Gary Johnston’s farm runs out of water. He’s bitterly disappointed the scheme is not going ahead as he questions local councils’ lack of vision. Photo: Stu Jackson
There just became too much change and it became too hard. It’s 10 years, we have given it every shot. Stacey Scott Hunter Downs Water limits coming on their surface water take that will affect Johnston’s farm. “Getting water from the Waitaki to our farmgate was our future.” Johnston doesn’t hold farmers solely responsible for the lack of support for the scheme that also factored in ability to assist in future proofing both Waimate’s
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and Timaru’s town water. “You had to see the vision. While enough farmers didn’t, neither did councils. There was too much negativity – doomsayers creating knock-backs. “Government nailing their part to the door and the shortsightedness and lack of vision from the district councils hasn’t helped the surety of the project and those people that were teetering and tottering pushed themselves out. “In farming we look 20 years out, they (councils) look five years out. “You can’t just put it on farmers to say this has not happened now. It’s a community project with huge benefit to the towns. “This is going to limit what we can achieve and do in the future,” Johnston said.
Fraser stressed the scheme was not all about intensifying land use and conversion to dairy but focused on relieving the pressure on existing water takes, decreasing reliance on surface water, drawing from the reliable and plentiful Waitaki River. “There is a need to protect and enhance our natural environments, many of which are under serious pressure,” he said. HDW will now work to secure the water take consent owned in a 50-50 partnership between Hunter Downs Irrigation Scheme Trust and Meridian Energy that invested in and supported the project to secure the consent. It will continue to exist and continue to administer and protect the consent for future environmental enhancement.
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NEWS
WEATHER OVERVIEW This week kicks off with a lot of high pressure around New Zealand, especially out to the east and to the west. This long belt of high pressure will slowly cross the country extending the drier-than-average pattern in a number of regions. However, the remnants of the recent out-of-season and very early tropical cyclone near the Solomon Islands will this week drift towards NZ and might create a new low around Wednesday or Thursday, which could deepen as it moves in. At the time of writing this forecast it is looking borderline but heavy rain is possible for northern parts of NZ. This weekend and next week see variable winds and neither big highs nor big lows.
4 Worker shortage hits meat plants A jigsaw with bits missing ���������������������������������������������� 7 Tatua pays farmers $8.10/kg MS ����������������������������������� 8 Foreign buyers put off farms ���������������������������������������� 10
Newsmaker ������������������������������������������������������22 New Thinking ��������������������������������������������������23
Pasture Growth Index Above normal Near normal Below normal
7-DAY TRENDS
Rain
Wind
We’re entering into another drierthan-average phase for most places despite a few showers here and there. High pressure dominates this week, however, the sub-tropics and tropics are very active with a possible northern rainmaker mid to late week.
Opinion ������������������������������������������������������������24 World �����������������������������������������������������������������30
ON FARM STORY
NZX PASTURE GROWTH INDEX – Next 15 days
Winds are fairly changeable over the next week or so. There will be another surge of westerlies for the nation this week (not strong) and a potential sub-tropical low might create strong easterly quarter winds for a time too. For further information on the NZX PGI visit www.agrihq.co.nz/pgi
Highlights/ Extremes
Temperature Fairly mild this week in many regions with daytime highs often around average or above average. There might be some light frosts inland, through the South Island especially, but many other places look closer to 10 degrees than zero at night.
A drying-out phase is kicking in across the country, again with eastern and central areas shaping up to be the driest. To the north a sub-tropical low this week might be worth monitoring, not locked in that it will hit NZ.
14-DAY OUTLOOK
The colder weather lately and drier conditions have seen pasture growth slowing, according to those of you who interact with WeatherWatch. co.nz. Generally speaking, NZ is slightly drier than average in a number of regions but nothing dramatic yet. We also have some regions, like Hawke’s Bay and coastal Otago, that are wetter than average. Despite the mainly dry forecast there is a chance of heavy, subtropical, warm rain for northern NZ this week but it is not locked in yet.
SOIL MOISTURE INDEX – 28/09/2018
28 Getting to the next generation Ken Hames thinks a lot about the big issues facing farming and society. He accepts change as part of life and gets on with doing the necessary work then moves on as he keeps looking to the future.
REGULARS Employment ����������������������������������������������������31 Classifieds ��������������������������������������������������31-32 Livestock ����������������������������������������������������32-35 Markets �������������������������������������������������������35-40 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $1198. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.
Source: WeatherWatch.co.nz
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For more weather information go to farmersweekly.co.nz/weather
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
3
Meat firms lose cash on lambs Alan Williams alan.williams@globalhq.co.nz A $20 a head disconnect between global market prices and New Zealand procurement prices for lamb are hurting processing companies, Alliance chief executive David Surveyor told North Canterbury shareholdersuppliers. There are signs of push-back from consumers in markets over lamb prices, Surveyor said after the Cheviot meeting, the first of the group’s new season shareholder roadshows. Global prices flattened out but the companies kept pushing prices up for winter and spring supply. Companies are losing money as margins disappear. “It’s not commercially sensible.” Alliance has started pulling prices back though they remain at elevated levels. They are about $8/kg as the group works to fill orders for the European Christmas chilled market. Once through that, prices are likely to fall to the mid-$6s/kg after Christmas, livestock and shareholder services general manager Heather Stacy said Sheep prices will be $4.50/kg to $4.95/kg. She also spoke about customer resistance to prices and the need to realign procurement pricing though the Australian drought is affecting international supply of lambs and might keep prices higher. Surveyor warned a small number of shareholder/suppliers at the meeting that the cooperative will report lower profits for the year ending September 30. At this stage it is less likely that pool payments will be made. “For absence of doubt, the company is profitable and the balance sheet is incredibly strong to fund our growth,” he said. A bonus issue of shares will be made later in the year to
TOO FAR APART: The gap between farmer returns and prices for lamb meat are now $20 a head, Alliance chief executive David Surveyor says.
For absence of doubt, the company is profitable and the balance sheet is incredibly strong to fund our growth. David Surveyor Alliance put increased group equity into shareholders’ hands while retaining cash. Alliance has also passed on increased value gains to shareholders in farm-gate prices, he said. Revenue has increased by $174 million this year but price payments to farmers have gone up by $211m, a $37m up-front benefit. “Your gains have come at the farm-gate and our profits are captured in those gains.”
The year had been challenging with economic ill-winds. They included putting on earlier capacity to meet climate-driven processing demand and the capacity had been maintained when demand eased back. In autumn new pasture feed levels meant farmers held back on cattle processing by about a month so the season coincided with the cow cull then the start of Mycoplasma bovis kill. The group didn’t have enough capacity to meet demand, leading to considerable overtime costs at Pukeuri and Mataura, shipping 4000 cattle from the South Island to Levin for processing and making offers to farmers to keep their stock grazing longer. The company has built a new venison processing plant at Lorneville and has potential to process cattle there as well, Surveyor said. Alliance made a pre-tax operating profit of $20.2m in the September 2017 year, ahead of a substantial one-off gain on
the sale of its Makarewa venison processing site. Those earnings allowed an $11.38 pool payment to shareholders A board decision on pool payments will be made as the accounts are finalised and audited. Though earnings have fallen, processing plant efficiency gains and product yield improvements have been achieved. Alliance is in the third year of a major business transformation process. “Every time we go looking we always keep finding opportunities to get more value back to you,” he said. No plan is perfect or gains achieved in a straight line but the directors have confirmed their belief in the strategy and their confidence in the business as part of a move away from being a commodity business. The programme also includes a new logo, highlighting Alliance as a farmers’ produce business and with a farm-gate design to link farmers to consumers.
There were no questions about the logo or marketing message in question time and shareholders spoken to afterwards indicated it wasn’t a priority issue for them. There are several positive initiatives in the business plan, Surveyor said. The food service project in Britain, targeted at top-end restaurants, is profitable and had lifted revenues from start-up to $10m in less than two years. Sales will double next year. A similar programme is now planned in the United States, initially on the west coast. The business will not compete with the NZ Lamb Company in the US, in which Alliance is a shareholder. New work in blood and pharmaceutical products produced $4m in sales during the year. The group is also talking to a large, multi-national household retailer about potential markets for skins and hides products and beyond that for meat products.
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Shortage of workers hits meat plants Alan Williams alan.williams@globalhq.co.nz MEAT processing plant staff shortages and day-to-day absenteeism are costing Alliance Group about $20 million a year in lost value, chief executive David Surveyor says. At its biggest site, Lorneville in Invercargill, on any given day about 100 people do not turn up for work, he told shareholders suppliers in Cheviot, North Canterbury, at the first of the group’s new season roadshows. The loss of workers reduced capacity to further process product. Alliance has applied to Immigration New Zealand to bring in 100 workers from overseas to make up some of the shortfall at Lorneville. “If you know any politicians ask them if they’d help us on this,” Surveyor said. “Across the industry there are 2000 people too few working in processing plants. “That’s a big number. It’s a really big deal.” Meat Industry Association chief executive Tim Ritchie confirmed that figure, saying it is based on a survey of the companies. “We need about 25,000 people working in processing plants at the peak of the season and that shortfall is about 10%. It is a very significant problem for us.” It means meat companies cannot optimise product specification and some products cannot be recovered for processing in the boning room so end up in the chute for rendering. Ritchie didn’t have an overall cost for the sector but the result was less export revenue for NZ than should be achieved.
The industry has to go through a very bureaucratic system to get approval to bring workers in from overseas. Companies handle their own applications for general plant workers but MIA handles the process for halal-certified slaughter-board staff on their behalf and that is one of the main problem areas. Alliance people and safety general manager Chris Selbie said companies want to employ workers from local communities because that is the most straightforward option but there are not enough suitable and interested people in regional NZ, where the plants are. Overseas workers are not used to displace locals. But the Meatworkers’ Union opposes the Alliance application, Invercargill-based SouthlandOtago secretary Gary Davis said. He claimed Alliance’s recruitment criteria for Lorneville is too restrictive in terms of physical ability and age-group. A lot of people aged over 55 are being rejected when they are capable of working. “We think there are enough people around the catchment.” Selbie said some people are not physically fit for the work and others fail the mandatory drug tests. “We’re not unreasonably fussy.” Davis acknowledged absenteeism is a problem but is an issue across other industries too, not just in meat processing. Lorneville should have about 1700 workers during the peak processing season. “On average we’d be 105 workers short of being fully manned each day and on the worst days the impact of both the ordinary
WHERE ARE THEY? About 105 workers a day fail to show up for work at Lorneville and on a bad day 250 can be missing.
shortages and absenteeism could be as high as 250,” Selbie said. Some people have genuine reasons to miss work, such as illness, but others don’t or can’t turn up.
We need about 25,000 people working in processing plants at the peak of the season and that shortfall is about 10%. Tim Ritchie Meat Industry Assn Alliance is also struggling to fill the required job numbers at its Pukeuri, Oamaru, and Smithfield, Timaru, plants in the South Island for this season and in putting on the second shift at Levin. It has had approvals to bring in workers for Pukeuri and Mataura,
including beef boners from China at Mataura last season. The company doesn’t know day-to-day how many staff it will have but plans for a certain level of absenteeism. At peak, its workforce nationally should be about 4200. Because of the piece-rate payments system, based on product tallies, the shortages of staff and lost production mean lower pay for all workers, Selbie said. Ritchie said the problem around the Halal-certified slaughter staff and access to market is acute. The industry needs about 240 of these people and they must be Muslim. Only about half can be sourced domestically, leaving the balance to come from the wider Asia-Pacific region. Immigration rules say overseas workers must be approved every year and effectively because of the income levels around seasonal work they can come for only three years, returning home in the off-season, but not for a fourth successive year. That means finding and training
new people every year and that is a challenge. “We argue that we are an export industry bringing in very important overseas funds and it’s crazy to be compromising that activity,” Ritchie said. Halal-certified staff make up about 1% of total processing plant numbers but about 40% of product is required by Muslim export markets to be certified. On top of this, other specific customers require halal product, for example Chinese firms supplying the 23 million Muslim market in China. On absenteeism, Davis said the work is hard and physical and involves shift work and as the season moves on, people start to wane. He thinks companies can do more to train young people and give them time to grow into their work and help provide a more balanced work/life pattern for workers. However, at Lorneville there are a lot of workers on the number one chain well into their 60s and working very effectively.
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
5
Five compete for three seats Hugh Stringleman hugh.stringleman@globalhq.co.nz FIVE candidates for the Fonterra board must get approval from 50% of the farmer-shareholders who vote to stand a chance of filling three vacancies this year. Three with both that shareholder approval and the highest numbers of votes can be successful. But farmers can also reject any or all of them. Three candidates, Peter McBride, Jamie Tuuta and Ashley Waugh, came through the confidential nomination and panel assessment route, confusingly called the independent nomination process. Two, Leonie Guiney of Fairlie and John Nicholls of Christchurch, have self-nominated with the support of 35 shareholders each. All five now face a five-week campaign, including seven official director candidate meetings for shareholders throughout the country between October 23 and 26. Voting closes on November 6 and the results will be declared later that day. This is the first major test of the dual nomination routes and
STANDING: Two independent candidates, Leonie Guiney and John Nicholls, are standing against three approved candidates for the Fonterra board.
the first-past-the-post majority electoral system and it carries some risks for Fonterra. Farmers get only three yes votes so it is possible having five candidates will split the voting, making 50% approval harder to get. But they do get up to five no votes, raising the possibility a
majority of farmers say they are unhappy with some or all of the candidates. If one or more of the board vacancies is not filled the Shareholders’ Council will determine the rules for a further election. That might not be a complete re-run of the nomination,
assessment and pre-selection process. However, an objective would be to improve on the suitability of the endorsed candidates, from a farmer’s point of view. It is thought status quo voting should favour the assessed and nominated candidates, McBride, Tuuta and Waugh. By that reasoning voters would be expressing confidence in the 2016 governance revisions designed to improve the skills matrix and suitability of candidates for the task. The contrary view is protest voting will swing towards Guiney and Nicholls, who have similar concerns with Fonterra’s recent performance though their candidatures are not linked. Guiney is the best-known candidate, within and outside the co-operative, because of a previous three-year term as director and some outspoken views. Last September, at the end of her first term, she was not chosen through the selection panel for re-nomination and was ineligible to self-nominate. Subsequent comments in the media resulted in legal actions
over director confidentiality that were recently resolved, with the company paying her costs. Like Guiney, Nicholls is a Massey University-trained agriculturist with overseas experience before farming. Both self-nominated candidates have multiple farm ownership in Canterbury and are very large Fonterra suppliers. Nicholls is co-owner and director of the Rylib Group of six dairy farms. All five candidates for director will be profiled in the Farmers Weekly and voting packs will be mailed to eligible shareholders on October 15. Elections for positions on the Fonterra Shareholders’ Council will be required in two wards. In ward 7, Waipa, the nominees are Nick Palairet, Andrew Reymer and Mike Montgomerie. In ward 19, Tasman, they are Sue Brown and Deborah Rhodes. One nomination was received in each of eight other wards so no elections are required. Five of the eight are incumbents. Shareholders David Gasquoine and Stephen Silcock stood unopposed for the Directors’ Remuneration Committee so no election is required.
Alliance has work still to do on beef prices ALLIANCE has a lot of work to do to get up to competitive pricing for prime beef and bulls. “We’re a mile off where we need to be,” chief executive David Surveyor told shareholders in North Canterbury. It will be working to get a better offer in the market this
season but there will not be an overnight fix. “We need to get the price to a point where its profitable for us and for farmers,’’ he said afterwards. The co-operative’s beef suppliers are loyal but it is important to be frank with the owners about the issues. It plans to increase chilled beef exports to China and move up the value chain.
Staff are working on a computer model to identify cuts for maximum value. The company is competitive in the manufacturing beef market. Scale in the beef market has been an issue for Alliance with just an 8.64% share of the United States beef quota, making it sixth biggest of the New Zealand processors.
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That is at odds with its number one position on the European Union sheep meat quota where it has a 27.68% share. Surveyor said Alliance is operating more like a farmerowned co-operative in the venison market. Prices are strong and both the company and farmers are making money. Venison prices are expected
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in the $11/kg to $11.74/kg range in the next three months, easing to $10.40/kg to $11/kg after Christmas, livestock and shareholder services general manager Heather Stacy said. Cattle prices are expected in the $4.80/kg to $5.50/kg range over the next six months or so with cows slipping from about $4/kg to the high-$3s.
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
7
A jigsaw with bits missing Annette Scott annette.scott@globalhq.co.nz MYCOPLASMA bovis had a head-start on officials trying to eradicate it but Nait is helping them catch up. While Nait is not perfect it has enabled the eradication attempt that otherwise might not have been possible, Ministry for Primary Industries intelligence group manager Alix Barclay says. That head-start has, over time, meant changes to the design of surveillance and how it is implemented, Barclay said. The intelligence team is responsible for tracing the disease, surveillance, targeting of sampling, data management and the diagnostic laboratory systems. “Simply it’s about tracking it down and once tracked finding out if, in fact, there’s infection and identifying farms at risk and finding out which way they fit the tracing puzzle. “So, in the intelligence team we have a wide variety of tasks and a lot of specialist groups targeting specific aspects of our responsibilities. “The team includes different breeds of epidemiologists, some also contracted to specifically support the surveillance teams.” Barclay said the fact M bovis had a head-start on the tracing has become significant in how the surveillance is structured and how it is implemented now, compared to 14 months ago. “Given the head-start bovis had on us, perhaps here in NZ as long as a couple of years so we are now learning, in the beginning our ability to catch up with farms was
much slower as we gained tracing patterns, meaning in many cases a farm could have been infected for several months before we started tracing it. “That meant a lot more tracing work from each at-risk property and we had a lot of catching up to do.” Now farms have more often than not been infected for only a month when they are identified, making tracing much quicker under a new design that’s intercepting likely spread much sooner.
If bovis had got here before Nait we wouldn’t be doing this. Alix Barclay MPI “But still, every farm is different with its own individual challenges whether it be calves, beef cattle or dairy so the pressure doesn’t really ease at all for the tracing team. “We are just catching it sooner and implementing surveillance in a new design learned from experiences of the past 14 months.” In tracing the movement of animals MPI is also tracing business networks and business relationships. “Once we have determined an infected property we look at all movements from that farm and onto that farm and once we have all those movements logged we
will know when that farm got infected.” Essentially, given the greatest risk of spread is through animal movements, the initial tracing is forward. “But we also trace back, mapping out business relationships to determine the level of risk from the infected property and to develop a link to the rest of the response. “Once we have identified a business relationship, that needs to be investigated and that’s significant ongoing surveillance. “It’s one big puzzle but unlike a jigsaw puzzle the problem with tracing is you don’t have everything you want to start and you have got to gather the pieces, piece by piece to put it together.” Barclay said while Nait has not proved to be everything it was thought to be, it has given the response the ability to design tracing and surveillance. “If bovis had got here before Nait we wouldn’t be doing this. “We don’t think we would have been able to attempt eradication the way we are. “It may not be a perfect tool but it’s given us a chance to start.” With 12,000 risk events in the tracing network it’s effectively mapping a community. “That’s not 12,000 farms but actual risk events where a farm may have bought this year from an infected property and then popped up again having bought again next year. “Risk events are multiple on some farms.” Surveillance is about getting the full picture of what’s happening on each infected farm.
BUSY: Dr Hye Jeong Ha is one of MPI’s Wallaceville laboratory team that has completed 180,000 Mycoplasma bovis diagnostic tests over the last year with farms being traced now presenting diagnostically different to the first farms. Photos: Annette Scott
“Diagnostic testing around forming that picture is an area we have learned a lot about as the response has gone on. “There’s been no template, no text book to do this. “We have been working from a clean slate to develop systems. “That’s why things have changed over time and we appreciate that’s been confusing for farmers along the way. “Farms we are tracing now are presenting diagnostically different to the very first farms. “We expected that given the first farms had been infected for at least a year.” Working from the temporary Wallaceville MPI laboratory the testing team has completed 180,000 M bovis diagnostic tests alone over the past 12 months. The laboratory’s normal work is 25,000 tests a year.
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MIND BOGGLING: Genetic data from laboratory sequencing work pulls together a lot of processes as Mycoplasma bovis response intelligence group manager Alix Barclay analyses those of just a single farm.
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Westland result disappoints Annette Scott annette.scott@globalhq.co.nz WESTLAND Milk shareholders have been warned for months their co-operative’s annual result would be at the lower end of the range so shouldn’t be surprised with the final $6.07/kg MS for last season, chairman Pete Morrison says. He acknowledged farmers won’t be particularly happy with the payout this year. Westland has reported a final milk payout for 2017-18 of $6.12 per kilo of milk, minus a five-cent retention, delivering a net average of $6.07/kg MS. A substantial number of shareholders received a premium on the net result of 4.4c/kg MS for providing UHT winter milk and colostrum, giving them an average of $6.11. “I’m like all farmers, I’m disappointed with this result. It’s not competitive and it’s not sustainable. “But I am encouraged by the processes in place, the people in place and the markets going forward and we hope to have
positive news for all shareholders prior to Christmas,” Morrison said. “We do have a $3.3 million profit and it’s got to be good governance to make a profit.” The board has reduced the payout prediction for 2018-19. “With the current international decrease in butter pricing the board has revised its predicted payout for 2018-19 to $6.50 to $6.90. “This is in line with other milk processors,” Morrison said. He’s not expecting an exodus of suppliers because of the result. “We don’t think we will lose any (milk) supply up until Christmas because farmers are giving us that time to see an updated forecast and also a progress update on the capital structure review.” The Project Horizons capital structure review is based on three options – maintaining the status quo, finding a cornerstone shareholder or merging with another entity. So is Westland Milk on the market? “Not at all,” Morrison said. “We want the best outcome for
IMPROVING: Westland Milk is implementing its five-year strategy that will allow its products to carry more value and thus return greater premiums for farms, chief executive Toni Brendish says.
all our shareholders and we are working through the processes of Project Horizons and our shareholders are waiting to hear that outcome. “We will be coming back to our farmers before anybody else and that’s timed for December 5.” He said the co-operative made $3.3m profit before tax because of the decision to retain five cents. “It was essential to retain a degree of payout to ensure a
Tatua pays farmers $8.10/kg MS Hugh Stringleman hugh.stringleman@globalhq.co.nz
TATUA Co-operative Dairy has paid $8.10/kg of milksolids to its 110 supply farms for the 2017-18 season, $1 more than last year and $1.41 more than Fonterra. Operating revenue was a record $357 million, up from $333m the previous season, and earnings before interest and tax were $127m ($114m). Chief executive Brendhan Greaney said the co-op’s Tatuanui, Waikato, plant took in 14.7m kilograms of milksolids
from shareholders, down slightly from the 15m of the previous season. Earnings were therefore $8.62/ kg milksolids ($7.60) and the directors had decided to retain 52c/kg for re-investment in the company. The payout to farmershareholders was the secondhighest in Tatua’s history behind the $9 paid in 2013-14. Greaney said the differential over the benchmark industry payout has widened in recent years as Tatua invested in more value-add processing. The revenue from value-
add products was up 23% last season, showing Tatua can both pay a high milk price and make good margins. Its bulk ingredients – caseinates, whey protein concentrate and anhydrous milk fat – had a good year and have started the new season strongly as well. The outlook for milk fat products continues to be strong, Greaney said. In the past eight years Tatua has retained nearly $5/kg MS in total for building its value-add processing capacity, compared with only 70c/kg by Fonterra.
strong balance sheet and leave us options for capital expenditure to drive growth.” He said the board acknowledged its milk payout isn’t competitive and is focused on achieving parity in future. “This year’s payout was at the lower end of our range and was affected by global commodity prices, the impact of Cyclone Fehi and a strike at the Port of Lyttelton. “We also didn’t meet our production and processing targets for the year. “Top line sales were not as good as they could have been but we are seeing improvements with the new sales team in place and the benefit of improved processes.” The capital structure review is in response to high debt and limited financial flexibility. “Our priority is to accelerate our strategic business plan and to drive better, long-term returns and value to our shareholder farmers.” Chief executive Toni Brendish said the co-operative made important performance improvements in 2017-18 in Right First Time manufacturing, along with process and efficiency improvements. “Changes to our internal
systems and processes will continue to help improve our performance and drive better outcomes in the coming year,” Brendish said. “Last year our workplace safety performance was particularly pleasing with a 23% drop in total recorded injury frequency rate. “This speaks to a good safety culture and helps reduce costs and increase efficiencies. “This focus, along with the commencement of work to deliver on the segregated milk component of our five-year strategy, combined with the process improvements in all levels of the organisation give us more confidence to achieve a goal of competitive payout in our predicted payout for 2018-19.” Brendish said Westland is implementing its new five-year strategy, the key to which is milk segregation and the continual focus on improving internal systems and process, which are starting to deliver results. “During the 2017-18 season we proved our ability to identify, separately collect and process milk with key characteristics that carry significantly more value in the market place and return increased premiums. “We’re working with Southern Pastures to produce grass-fed milk to a set of very high standards that include strict environmental, animal welfare, feed management, soil and water management and other criteria that will set this milk apart.” Brendish said Westland’s comparatively smaller processing plant allows flexibility to produce nutritional products for specific niche markets with increasing global demand for other types of specialty milk to be available soon. “We are very pleased with the development of our five-year strategy. It’s looking very positive and we are well placed to deliver on that strategy,” Morrison said.
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News
10 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Foreign buyers put off farms Neal Wallace neal.wallace@globalhq.co.nz FEWER foreigners are buying New Zealand farms with banks blaming, in part, a 15% fall in the dairy farm price index in the last year. Westpac senior economist Anne Boniface said the Government’s tightening last December of rules on the sale of sensitive property to overseas investors has been most noticeably felt in the dairy sector where the Real Estate Institute’s dairy farm price index fell 15%. “When you talk to people in the sector it is one of the things they mention why the rural property market was slower.” The tightening of rules for foreign investors buying land over 5ha puts greater importance on economic factors and requires oversight and participation by New Zealanders. Not all the decline was attributable to the more stringent rules for foreign buyers but she noted prices for other land types have increased in line with growing revenue and profitability. Institute data for the year to year to July noted the all-farm index rose 3.7% with sales in the three months to July consistent with 2017 but 15% less than the same period in 2016.
On a price per kilogram of milksolids the median sales price for dairy farms was $32.01 for the three months ended July, compared to $33.37 for the three months ended June (-4.1%) and $35.97 for the three months ended July 2017 (-11%). ANZ commercial and agri managing director Mark Hiddleston said the impact of policies to restrict overseas owners and investors is still to be fully realised but values appear to be starting to react to the new foreign investment guidelines. Chapman Tripp partner Bill Sandston said foreign investors have recently withdrawn from four or five farm sales his firm was dealing with, realising they would not meet the Government’s new benefit test. Law firm Lane Neave partner Mark Williams said it has also had clients withdraw after inquiring with the Overseas Investment Office and being told their proposals were unlikely to succeed. The November directive to the OIO from the new Government changed the game quite significantly, he said. Two OIO approvals indicate the new threshold foreign investors have to be meet.
A British couple with over 30 years’ experience milking goats was granted approval to buy a 100ha dairy goat farm near Te Aroha and plan to introduce genetically-superior Yorkshire dairy goats to improve the industry’s productivity. United States-based NZ Redwood Company was granted approval to buy an 1150ha Waikato farm at Matiere for $7 million on which it will plant 650ha in redwood trees. Sandston said the new threshold means applications most likely to get approval are boutique ventures. “Unless your proposal provides significant benefits that have been outlined they (OIO) are likely to turn you down. “They have not closed it all down but it seems you are more likely to get approval for a boutique-type proposal whereas I am personally aware of a larger farm operation, specifically a dairy conversion, where they have withdrawn an application that would previously have gone through.” Foreign buyers are aware the threshold has been raised and Sandston said their absence is dampening the market. “Overseas people know that and I think we will move to a
Unless your proposal provides significant benefits that have been outlined they (OIO) are likely to turn you down. Bill Sandston Chapman Tripp much more domestic market for farm sales.” Catherine Reid, a barrister specialising in OIO applications said sales are still being made but overseas buyers have to offer substantial and identifiable economic benefits. The directive prioritises economic benefits as a condition of purchase over commitments such as improved public access or environmental gains, which will be considered on a case by case basis. In June Australian wine maker Craggy Range was granted approval to buy 132ha of grazing land at Martinborough on which it plans to plant grapes and create 20 new jobs. Reid also acted for Southern Ranges, which bought the 40,000ha Mt White Station Crown
Pastoral Lease in Canterbury, a deal approved because the new owner Lukas Travnicek and his family intend living in NZ indefinitely. There is still plenty of investor interest in buying NZ land because the country is considered safe and stable, she said. Sales of South Island high country farms to foreign investors have previously included sweeteners such as improved public access or donations to causes such as wilding tree control but Williams said such inducements will no longer suffice. The climate, soil type, planning laws and size of property restrict the ability for investors of those properties to meet the new threshold while the high purchase
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
11
Politicians put off foreign buyers Neal Wallace neal.wallace@globalhq.co.nz
GONE: Prospective buyers are pulling out of deals to buy New Zealand farms because of the frustrations of dealing with the Overseas Investment Office, rural real estate agent Brian Peacocke says.
approval than reasons to grant approval.” It is proving a major disincentive for potential foreign buyers and those dealing with them but it is also difficult to determine the impact of purchase agreements not being fulfilled and applicants being turned away. “I am not quite sure where we are heading. “I can’t get beyond the feeling that is seems to be politically driven.” Peacocke said the growing frustration with the OIO rules was illustrated when he was working with a British investment fund considering buying a big property. The farm had previously been marketed domestically – as was required – but the highest price was well short of expectation and half what the British later offered. They also had plans for a substantial investment to develop the property. After more than 18 months unsuccessfully trying to get approval, they withdrew their application. “The net result was some quite futile requests for information during which the clock keeps running for the applicant in terms of legal expenses.” It also ties up the vendor who is
locked into a purchase agreement pending the OIO decision. But Horne said the OIO has to comply with the ministerial directive which was aligned to the Government’s policy on overseas investment and set out various criteria. An April review of the OIO by the Office of the Auditor General said “It is not the OIO’s role to set the criteria for whether overseas investment should be allowed, encouraged or promoted. “These criteria are in the governing legislation set by Parliament and policy expectations set by the elected government.” Horne said her office publishes guides for working through the Act on its website and offers preapplication meetings with staff to discuss applications and the assessment process. The time taken for the OIO to process farm purchases since the new Government’s directive had increased because active applications when the changes were introduced had to be reassessed under the new directive. In 2015-16 the OIO took an average of 55 working days to assess an application and make a recommendation. So far this year the average time was 48 days. 13148
price might see some overseas buyers unable to sell or be required to sell at a significant discount. “They’re not going to move and we could get foreign owners of those properties stuck with them.” Similar restrictions on foreign buyers of urban property apply from October 22 and Williams warned the same problems could occur in centres like Queenstown, which have large numbers of multi-million-dollar residential properties but few local buyers who can afford them.
THE process for approving foreign purchases of farmland has become politicised, rural real estate agent Brian Peacocke says. Government ministers rule on most applications, which must give benefits exceeding those of a business-as-usual model. But the OIO’s consideration of recent sales to foreign buyers he has been involved with has been time-consuming, drawn out by continual requests for information, Peacocke, a Waikato estate agent, said. And the interpretation of benefits from farm investment is confusing, especially compared to forestry. Land Information Minister Eugenie Sage and Associate Finance Minister David Clark decide most applications, based on an assessment of whether an investment is likely to substantially and identifiably benefit NZ. Land Information’s Overseas Investment Office (OIO) manager Vanessa Horne said a ministerial directive last November to her office said it is a privilege for overseas people to own sensitive NZ land.
As such applicants must offer a point of difference from a NZ farmer. “The rural land directive raises the importance of five benefit factors for purchases of all rural land over 5ha, other than forestry – jobs, new technology, exports, domestic processing and participation.” It can be very hard for a buyer intending to continue running a farm as before to show any benefit to NZ, she said. Conditions for foreign investment in forestry are slightly easier to reflect the capital required and the length of investment needed. The criteria includes encouragement to invest in wood processing or supporting existing processors. Another option to satisfy the OIO is for foreign investors to live in NZ indefinitely, as Lukas Travnicek did when he bought the 40,000ha Mt White Station in Canterbury. Since the tightening of foreign investment rules signals from the OIO mirror the political leanings of the coalition Government, Peacocke said. “It’s almost as though since the result of the election of the coalition Government the OIO is seeing more reasons not to grant
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12 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
a2 shares sale sparks debate Richard Rennie richard.rennie@globalhq.co.nz THE decision by a2 Milk chief executive Jayne Hrdlicka to quit 357,000 of her shares just two months into the job has drawn fire from Shareholders Association head Michael Midgely. Hrdlicka sold her shares for $4.3 million before the high flying company’s share price eased, to $11.95 by the middle of last week, down from $12.51 when the firm announced the sale to the market. The reasons given for the sale include a need for Hrdlicka to fund tax obligations relating to the recent automatic exercise of time-based rights and to fund commitments made by her before taking up the job with a2 Milk. She has retained interest in time-based rights and performance rights. The time-based rights give her the right to acquire ordinary shares in the company, to compensate for the forfeiture of incentive entitlements from her former employer, Qantas-owned Jetstar Group, where she was chief executive for five years. Estimates are she still has 250,000 a2 shares which become fully tradable by August next year. Australian Financial Times columnist Joe Aston reported that when employed by a2 Hrdlicka
was paid $600,000 up front in cash, two-thirds of the value of the short-term incentives she was to receive with her then employer Qantas, and 599,245 a2 shares. The 357,000 shares became eligible for trading on September 3, two weeks after a2’s 2018 financial year results were announced.
As a matter of principle we are not very happy about golden welcomes to incoming chief executives. Michael Midgely Shareholders Assn Midgely said the association is paying close attention to Hrdlicka’s actions and it is a “bad look” for the company. “Different companies have different policies but you need the approval of the company to do this. A quick look at a2’s policy sees a broader allowance for share sales than some other companies.” He said the reasons given suggest there could have been a better way to organise the
payments Hrdlicka had to make than with the shares’ sale. “And in this case, to have to have a total sale of the shares? I would have thought a bit of advance planning would have avoided that. “As a matter of principle we are not very happy about golden welcomes to incoming chief executives. “If these payments are going to happen, why can they not just be cash?” The shares were included in her remuneration that also includes a salary of A$1.5 million. Midgely said regardless of how eligible the chief executive might have been to sell her shares it is not a particularly positive signal to investors and the market and more so for a company like a2 Milk that has a high price to earnings ratio. A2’s P:E ratio has investors paying about 32 times over earnings against a sector average of 21. Latest valuations have the company worth $9.2 billion, with annual revenue of $922 million. Following sale on September 21 an announcement was made to the stock exchange that investment firm BlackRock had lifted its stake in a2 Milk from 5.03% to 5.212%. BlackRock is the world’s largest asset manager with
SOLD: A2 Milk chief executive Jayne Hrdlicka made $4.3 million by selling shares two months into her new job.
US$6.29 trillion of assets under management. A long-time recruitment consultant said some companies don’t allow chief executives to sell their shares but NZ lacks any clear recording of what they are being paid in shares. “In the United Kingdom the Financial Times keeps a list of
shareholdings held by directors and will report on any sales or movements. “It is very much watched by the investor market.” That comes amidst growing shareholder dissent in the UK over disparities in executive pay levels, with reports of an 18% rise in FTSE 100 bosses’ salaries last year alone.
News
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
13
Tax changes will hit farmers Neal Wallace neal.wallace@globalhq.co.nz THE Government has confirmed any changes to the tax system will be revenue neutral but a tax expert warns farmers to expect to see new charges imposed on their activities. The Tax Working Group was told changes should not increase the amount of revenue collected. That will be done by extending the existing tax base, Chartered Accountants Australia and New Zealand’s NZ tax leader John Cuthbertson said. The group’s mission is to find ways to improve the fairness, balance and structure of the tax system. It will release its final report in February. Its interim report said it is considering two options to extend tax of capital income; taxing realised gains on untaxed specific assets and taxing certain assets on a deemed return basis, what it calls a risk-free rate of return. It also proposes introducing a suite of environmental taxes to complement environmental regulation. Cuthbertson expects to see some roll-over relief for farmers in the group’s final recommendations on a capital gains tax for replacing an existing farm or an intergenerational purchase of a family property. The Government has ruled out an inheritance tax. He also expects to see taxes on farming’s environmental impact, including an extension to the Emissions Trading Scheme and charges for nitrogen leaching, degrading water quality and water use. While the interim report gives an insight to the group’s thinking the key will be the detail in its final report and which elements of the package the Government will adopt. Massey University tax lecturer Alison Pavlovich said NZ already operates a risk-free rate of return tax model for owners of foreign shares. Inland Revenue calculates the amount of tax to be paid based on the appreciation in value of the investment over the year. Pavlovich is surprised the working group is considering applying that system to farming assets because it would be a new concept, being a tax on unrealised gains and could have unfair implications on cashflow. If the deemed tax rate is set at a predetermined figure that rate could be less than the actual amount of money realised. “It would not tax exceptional gains.” Pavlovich also questioned how easily the system could be applied to assets like farms. “There are issues around having cashflow to pay the tax but another issue is that it is fine for taxing shares but it can be quite difficult to value other assets like a farm,” she said. Small business owners such as farmers and farm support companies should benefit from another of the group’s recommendations, the establishment of a Tax Advisory Service to help resolve tax disputes. Employing a tax adviser to help with disputes is too expensive for many small businesses unless the disputed tax is about $30,000 but an advisory service would make justice more affordable The group said increasing the tax taken from capital income requires taxing more income from land. “Land has the advantage of being an immobile tax base, unlike financial capital and labour, which are increasingly mobile due to macro trends such as technology advances and globalisation. “Broadening the tax base to include more income from land, therefore, helps to diversify and provide more flexibility in the system to respond to future changes.” The paper suggests taxing interest in land, except the family home, intangible property such as goodwill, plant and equipment, company shares and other equity interests. Acquisition and improvement costs would be deducted from sale proceeds. Taxing capital gains on the realisation of assets if implemented in 2021-22, is projected to raise $6 billion by 2030-31. Proceeds from taxing rural land over that period are picked to grow from $30 million to $840m.
The group ruled out a land tax or an annual wealth tax on the unimproved value of the land. Such a broad-based tax is considered efficient to gather and less volatile than a capital gains tax. But the group said there will be criticism because it applies to one type of asset and disproportionately affects groups and industries that hold a greater share of their wealth in land. While some landowners are wealthy, others are not and a tax could mean some owners had negative equity or cashflow issues for assets not generating regular income. “If land associated with the principal residence is exempt, the tax would not have the economic efficiency benefits of a general tax on land,” it said.
BOTH WAYS: New taxes will affect farmers but they should also get some relief, Chartered Accountants Australia and New Zealand NZ tax leader John Cuthbertson says.
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14 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Water pressure remains post dam Where the water goes
Richard Rennie richard.rennie@globalhq.co.nz
Top five water takes in Ruataniwha aquifer – Tranche 1 consents Applicant
Epic Agriculture Ingleton Farms
ISSUES: Protecting the Ruataniwha aquifer is now on the agenda because the Ruataniwha Dam is not being built.
Now, though, that is not the case and issues with pumping capacity and future limits could arise, given the close connection between river and aquifer levels. Issues around allocation in the Ruataniwha aquifer catchment are likely to become more fraught in the short-term, with even greater demand pending from the Tranche 2 water take proposed to be consented for the catchment. Tranche 2’s allowance of 17 million cubic metres of water a year is dominated by two large applicants. Plantation Road Dairies has applied for 6m cubic metres of water and Te Awahohopu Forest
Trust for almost 5m. The next two largest applicants, J M Bostock and Buchanan Trust, are each seeking about 1.6m. The dominance of a few large parties claiming the bulk of the consented water from the aquifer is similar to what is already in play with Tranche 1 takes. Consents for the 28m cubic metres of Tranche 1 water from the aquifer each year are dominated by dairy operations. Ingleton Farms has a take of 3m, Plantation Road Dairies 1.9m and Epic Agriculture 4.02m. Between them the three dairy operators Plantation Road, Ingleton Farms and Epic Agriculture claim a third of the
Consent Volume (million cubic metres)
Activity
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4.02
Dairy
14%
3
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Ruataniwha aquifer water take. Hewitt said she is not aware of the concentration of water take into a few large operations. “But for takes that are legally consented, there is nothing we can do about that.” The council’s integrated catchment manager Iain Maxwell said the applications for Tranche 2 water are on hold while the council requests more information from applicants on how they intend to manage and mitigate the impact of the water take. “The applications for a second tranche are by no means a done deal and there is a process that has to be followed.” Central Hawke’s Bay District Council chief executive Monique
Davidson said the council will work closely with all water users to determine how best to manage and conserve water resources with summer’s approach. “We realise the implications of Plan Change 6, which requires minimum water flows to be raised and it is going to cause a pinch for certain users.” She said winding back PC6 is not off the table but is not something her council has given her direction on. Meantime, all water users have to be realistic the water taskforce will be more focused on medium to longer term solutions. Hewitt said the only way minimum flow rates imposed under PC6 can be reversed is by rolling back that plan change.
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HAWKE’S Bay water problems are likely to remain at the forefront of the region’s short term development despite a taskforce being set up to try to deal with them. The group, established following rising concerns over the region’s water limitations now the Ruataniwha Dam is not going ahead, consists of key water users, council, environmental groups and iwi. The group met for the first time in September. Taskforce chairwoman and Hawke’s Bay Regional Council member Debbie Hewitt said a key first stop for the group is to try to identify the water issues frequently raised by residents in the Tikokino and Onga Onga settlements. “Overall, we are aiming to have a focus on ground-water management that is based on the best science. “In the absence of Ruataniwha, however, there are some real hard yards that now need to be done here.” Originally, the dam project would have eliminated deep well extraction from the Ruataniwha aquifer.
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News
16 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Dam halt compounds water issues Richard Rennie richard.rennie@globalhq.co.nz FARMERS and other water users in Central Hawke’s Bay are crossing their fingers for a wet summer as the area grapples with the fallout from the Ruataniwha dam’s halt and legacy water allocations hang in the air. Waipawa farmer Alistair Setter said there are some major implications under the region’s Plan Change 6 (PC6), made at the same time the Ruataniwha project was still being assessed, that are now going to have even greater consequences on water users. “It may have been the two issues, Ruataniwha and PC6, were supposed to be quite separate but, unfortunately, what has happened is they are not separate, with some of the requirements of PC6 being based on Ruataniwha going ahead, which it is not.” The dam was canned last year following a Supreme Court decision preventing the exchange of land vital to maintain the dam’s economic viability. But extra water allocation and minimum flow rate maintenance are two key issues still hanging over the district’s water users. “The bottom line with PC6 was minimum flow rates were going to be increased after being in place for decades. “That would have made sense if the dam was going to go ahead and it could have augmented the flow but it isn’t,” Setter said. But the biggest threat existing water users both urban and rural
see is a Tranche 2 water-take being granted to a handful of large water users applying for 17.1m cubic metres. That is a substantial amount, coming on top of the original Tranche 1 take of 28m cubic metres already extracted from the aquifer. Setter said unlike most river systems the Ruataniwha aquifer has a significant impact on river flow, with the Tranche 2 take equating to a further 650l a second of water extracted on top of the 780l a second of Tranche 1 water already extracted. “That is significant in terms of effect upon our dropping bore levels.” The applicants include three dairy farms with one large dairy operation seeing 6m cubic metres including using 1.6m cubic metres as augmentation water to re-apply into surface waterways. The ability to apply for more water came from the original board of inquiry overseeing PC6 finding it would be a sustainable take. However, Hawke’s Bay Regional Council science reports have since said it will have a major impact on the Ruataniwha Basin’s groundwater levels. “So, not only do we have a situation where existing users are squeezed by minimum flows increasing but the system is also losing more water to a brand new group of users,” Setter said. Setter maintains the regional council’s management is pushing to have the applications granted,
WHERE’S THE WATER: Decisions made when the Ruataniwha Dam was going ahead will have even greater consequences now it isn’t, Waipawa farmer Alistair Setter says. Photo: John Cowpland
There will be no emotional blackmail going on with this. Rex Graham Hawke’s Bay Regional Council with some applicants already sinking considerable capital into well development, despite council approval still pending. But council chairman Rex Graham said any decision on allowing the water allocation is far from done and dusted. He acknowledged some past allocation decisions were made under pressure from applicants who had gone ahead and invested in water bores before having final consent. “But that will not be the case this time. “The council does have the ability to say no. “Any decision here will be based on science. “There will be no emotional blackmail going on with this.”
Public interest in whether the applications are granted extends to urban water users on the plains who already have supplies threatened by the Tranche 1 allocation at the height of summer, with about 150 homes in the Onga Onga and Tikokino areas affected. Graham confirmed because of the intense public interest in water availability the Tranche 2 applications will almost certainly be subject to public hearings. He expects a decision could be made before Christmas. When it comes to minimum flow rates it has not been possible to get the 80% support required by the council’s resource planning committee vote to have the issue re-examined. “My own view is that PC6 was rushed through and there was a lot of poor science behind it but it was caught up in the momentum of the dam application at the same time. “I think we do need to review the flow rates but I am only one vote on that committee.” Iain Maxwell, Hawke’s Bay Regional Council integrated catchment manager said while
there has been public concern over the region’s aquifer levels, he and his staff did not share them at this stage. “There are no suggestions in ground water levels that we need to take action on. We believe it (the aquifer) is behaving entirely as expected. Ground water levels will decline but will reach a new equilibrium, and we are seeing that happen exactly as we would anticipate.” He said what was less clear was where exactly the aquifer would settle, something difficult to predict given the variable nature of irrigation. “But it is not being mined, it is being replenished.” Regional councillor Peter Beaven welcomed the decision to have a multi-party taskforce meeting this week to try to address the water issues facing the district. “We are going to have to find solutions for the people most impacted by this. It may include helping out with pumps or shared bored options. “There are also about a dozen applications also in for on-farm water storage now the dam is not happening.”
News
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
17
Hunters fear Sage’s deer plans Neal Wallace neal.wallace@globalhq.co.nz HUNTERS fear Conservation Minister Eugenie Sage will turn her sights on cutting deer numbers if her department proceeds with plans to cull 17,500 tahr from the South Island’s Southern Alps. The Conservation Department has started an aerial cull of Himalayan tahr to reduce grazing pressure on alpine landscapes and ecosystems but has provoked a storm of resistance from hunters. NZ Deerstalkers’ Association spokesman Bill O’Leary estimated 3000 tahr have been killed already but while Sage and DOC officials have agreed to meet hunting representatives to discuss the dispute hunters have launched direct action. It includes seeking an injunction to stop the cull while more than 1500 people have donated in excess of $130,000 to fighting fund. A petition launched by the National Party asking Sage to stop the cull attracted almost 20,000 signatures 20 hours after being launched. O’Leary described DOC’s tahr control plan as hastily conceived
BLAME THEM: National’s failure to adequately fund the Conservation Department allowed the tahr population to balloon, Conservation Minister Eugenie Sage says.
without supporting research by a minister who, as a former employee of conservation group Forest and Bird, does not want introduced animals in NZ. The size of the variation in DOC’s estimated tahr population of between 17,500 and 55,000 gave hunters little confidence in the department’s research, he said. Given the minister’s philosophy, her background and increasing numbers of deer O’Leary sees no reason why they would not also face an organised cull in the future. “Once bitten twice shy,” he said.
Numbers of both deer and tahr could be controlled through hunting but DOC appears reluctant to engage or communicate with hunters as it is required to do under the 1993 Himalayan Tahr Control Plan. That plan – the most recent tahr management document targeted a population of 10,000 as an acceptable maximum over an area from Wanaka to Arthurs Pass, where they inhabit sub-alpine and alpine zones from 1000m to 2000m above sea level. The Game Animal Council is formulating a management plan
for tahr in which hunters would shoot 20,000 animals, primarily nannies, over three years. That is contrary to the DOC plan to target bulls and juveniles, he said. Trophy bulls are the main lure for hunters and the council’s plan involves encouraging hunters to also target nannies. Juveniles have a high natural death rate so do not need targeting. Deer hunters have traditionally left hinds to encourage population growth but for population control reasons they could be encouraged to shoot hinds for meat, O’Leary said. Sage said the previous National government failed to adequately fund DOC to control tahr, allowing the population to balloon and damage alpine landscapes. DOC’s Eastern South Island operations director Andy Roberts said monitoring shows the tahr population to be higher than expected, which prompted the minister’s urgent call for DOC to reduce numbers by 10,000 over the next 10 months. Another 7500 would be allocated to hunters, wild animal recovery operators, trophy hunting concessionaires and professional hunting guides.
We will need to continue to increase our combined efforts over the next few years to reduce these numbers further. Andy Roberts Conservation Department
Roberts said the cull would occur on public conservation land focused on Mt Cook and Westland National Parks with the first areas targeted in the Rakaia, Rangitata, Gammock and Two Thumb ranges. He estimates 4600 tahr are killed each year by controlled operations and hunters but that is inadequate to keep the population under control. “This joint effort to remove 17,500 animals will stabilise the current population. “We will need to continue to increase our combined efforts over the next few years to reduce these numbers further,” he said.
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18 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Project to help head off food scares Richard Rennie richard.rennie@globalhq.co.nz
IT’S HAPPENING: The issue of traceability had been talked about for some time but failed to gain traction before the Fonterra botulism scare, AgriChain managing director Anne-Marie Arts says. Photo: Fraser Newman
suggested carrots or lettuce as the source at the time. A hepatitis A infection from frozen Chinese berries in 2015 led to four people being infected. But Arts said the scale of outbreaks overseas highlights how difficult fresh produce can be to trace accurately when supply chains span the globe to meet year-round consumer demand for products. In 2011 in Europe 4000 people fell ill with E coli infection that killed 53 of them. It was traced to Egyptian fenugreek sprouts grown in Germany. That outbreak was costed at US$2.8 billion in lost productivity and medical costs. “One of the issues of globalisation of fresh produce is
globalisation of these outbreaks. “Between the Yersinia outbreak and Fonterra’s scare the industry realised we needed to look at traceability and in 2015 we did a pilot trial on strawberries.” Strawberries are a good proxy for a lot of packaged fresh produce. Next year a trial will step up to loose produce, probably lettuces, which has a higher level of risk and tracing complexity. In October the group is running trials through several domestic supply chains distributing strawberries, using both forward (grower and beyond) and reverse (outlet back to grower) traceability. Ultimately it aims to generate guidelines specific for NZ that
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can apply across a range of fresh produce types. The foundation for produce traceability lies with standards used by other industries, such as the meat and dairy sectors, where bar-code data is the base standard for products to be scanned at every point of the process through to final retail outlet. “We are not saying this is where fresh produce has to get to but it will form a foundation for where to go.” The earlier work by United Fresh identified weaknesses in NZ’s supply chain. While reluctant to be specific, Arts said they tend to lie at points where information is transferred from one stage of production or distribution to the next.
Scour going to unnamed buyer
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THE Australian strawberry needle crisis has put the spotlight on a New Zealand traceability project aimed specifically at making such an event in the domestic fresh produce market even less likely. AgriChain Centre managing director Anne-Marie Arts is on the technical committee of United Fresh, a low-profile industry organisation focused on delivering a sustainable produce sector. Its work includes the 5-Plus a Day campaign to increase fresh produce consumption. The group is also tasked with drilling into produce distribution and helping develop guidelines for improved traceability. “The situation in Australia really highlights what a challenge the fresh produce sector has in its supply chain, which is complex with hundreds of different perishable products sold by hundreds of growers through a variety of different outlets,” Arts said. The group’s traceability project kicked off this year and continues for three years, co-funded by Ministry for Primary Industries’ Sustainable Farming Fund. It owes its beginnings to the major wake up call the NZ food industry got with the Fonterra botulism scare in 2013. “The issue of traceability had been talked about for some time but we had failed to get any traction. “Then we had the Yersinia pseudotuberculosis outbreak that affected 330 people in 2014.” The source of that outbreak was never confirmed despite MPI investigations but reports
As tempting as technologies like block chain appear as a solution to supply chain transparency, it is more important to get a foundation like GS1 underlying it and laying technology like block chain over the top of it. GS1 is a non-profit organisation based in Brussels that develops and maintains global standards for business communication. The best known is the bar-code standard. While not wanting to second guess the causes of Australia’s needles epidemic, Arts said it is nearly impossible to stop a lone wolf attack on food but food defence is now high on the agenda in its wake. The fresh produce market in any country is a problematic one because of the perishable nature of the goods and the need to move them quickly through supply chains. In NZ, particularly, it is made even more problematic by the number of small growers. “In the United States Walmart has managed to cut traceability down from 60 hours to a matter of seconds. “However, those sort of systems are easier to implement when you have an industry dominated by large corporate operators that can put those systems in place, compared to smaller operators.” In NZ the export culture around some fresh produce items, including kiwifruit and avocados means those industries are already abiding by internationally required standards. Getting the same level of care and best practice competence in food safety and traceability for the domestic market is part of the group’s ultimate aim.
Alan Williams alan.williams@globalhq.co.nz
CAVALIER Corporation is selling out of its New Zealand wool scouring business, freeing up funds to focus on being a highend carpet marketer, chairman Alan Clarke says. A deal is being finalised after the four owners of the Cavalier Wool Holdings scour business were approached by an experienced wool scour investor. He couldn’t elaborate on the buyer’s identity. The sale price reflects a much lower value than Cavalier’s book value of the investment on June 30. Its 27.5% shareholding was valued at $24.5 million but the cash payment to the NZX-listed Cavalier will be $13.5m. That’s quite a discount given the June 30 accounts were finalised in August. Two of the other CWH owners, ACC with 13.75% and Direct Capital Investments with 13.75% are also selling their holdings. Lempriere-owned Scouring Investments will reduce its shareholding from 45% to 30% .
The new buyer will own 70%. Cavalier will have a long-term wool scouring agreement with the new owner, chief executive Paul Alston said. “We do not believe it is essential to own scouring infrastructure to secure the supply of scoured wool.” The $13.5m will be used to reduce borrowings, which stood at just under $30m on June 30. Clarke said the company is now in a strong position after challenges caused by the rationalisation process of its processing plants around the country. Cavalier did a lot of work with its clients over the last 12 months as well as considering exactly what sort of business it is, concluding it was a marketer of high-end products and not just a maker of carpets. It is already a large player in NZ and strengthening the balance sheet now will open opportunities for carpet market activity in Australia and further afield. “We’ve had a foothold for many years in the United States, Europe and United Kingdom,
NO NEED: Cavalier doesn’t believe it is essential to own scouring plant to secure a supply of scoured wool, chief executive Paul Alston says.
where there are niche, boutique markets which have a knowledge of the Cavalier Bremworth brand and NZ wool.” The CWH wool scouring plants are in Napier and Timaru.
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Waimea’s dam project advances Richard Rennie richard.rennie@globalhq.co.nz A BILL critical to the Waimea Dam’s future has got overwhelming Government and Opposition support. Tasman District Council (Waimea Water Augmentation Scheme) Bill gained 112 votes for with eight Green votes against in its first Parliamentary hearing last week. The bill is a critical part of the dam’s approval process, necessary to resolve issues of access to Conservation Department land for the reservoir in Mount Richmond Forest Park. It was strongly sponsored by local MP and previous Environment Minister Nick Smith. The affected land area is about 10ha on the Lee River and was sought under the Public Works Act. It was originally denied on grounds the underlying reason for its use is not for a conservation purpose. Smith said the project now has its full resource consents and the $100 million funding required through shareholders and the Crown. That funding also includes an eleventh hour injection of $11m by a mystery investor who has agreed to buy up the 2000-plus share shortfall in the scheme. Local irrigators have expressed commitment to about 3000 of the shares. Waimea Irrigators chairman Murray King said while the first reading’s success is welcome it is only a first step in the three-reading process that also requires a select committee hearing. It is ironic the project has been slowed by concerns over the land given the commitment the dam project made to environmental remediation in the reservoir area. That includes a $1.67m contribution to a biodiversity package and pest control of $480,000 in the Mount Richmond Forest Park. “So DOC was supportive and fairly heavily embedded in this project, as were the Greens.” While irrigation is one part of the project, it is also linked to ecological goals by helping maintain local river flow levels and recharging aquifers and town water supplies. But opposition remains and Waimea Irrigators and Water Users spokesman Brian Halstead is highly doubtful Nelson is ever likely to run out of water, given the quality of the aquifers that serve it. His group will continue its opposition to the scheme and is about to file an application to the Environment Court citing some of its concerns about dam supporters’ aquifer claims. But King said with newly imposed minimum river flows coming into effect, water users across all areas will start to feel the pinch in coming years and the dam is an intergenerational, long-term counter to that. The scheme’s fate appeared sealed in late August when Tasman District Council voted it down on grounds of its cost. But only days later the dam was back on when the council voted of 9-5 in favour as three councillors changed their minds. That was largely in response to shifts in the project’s funding, with a surprise $23m surge in costs not being passed on to ratepayers and the appearance of the unnamed local investor. The investor will be issued convertible preference shares for 2000ha for the $11m input. The investor will be required at a future date to
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convert them to water shares, with an expectation the share value will increase over time. The scheme also now has increased contributions from Waimea Irrigators and Crown Irrigation Investments. King cautioned there are still several stages for the project to get through, including the possibility of another council vote on it once funding is confirmed.
19
ACTION: The Waimea Irrigators and Waters Users is about to file an Environment Court case against the Waimea Dam, spokesman Brian Halstead says.
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FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
21
New rules and higher prices Neal Wallace neal.wallace@globalhq.co.nz
BEWARE: New animal welfare regulations including a ban on docking dogs’ and cattle tails takes effect today.
New health and safety tool of quad bike or vehicle accidents. SafeFarm creates a single site for farmers to record core data such as hazards and their risk mitigations, incidents and the lessons from them and emergency equipment locations, with the objective of making farms safer. Farmlands chief executive Peter Reidie says Farmlands is taking a leadership role to help the agricultural sector improve its health and safety performance. “We have seen the statistics and the headlines regarding serious injuries and fatalities in rural NZ. Farmlands wants to assist with the protection
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of our shareholders and effective health and safety management is a cornerstone of this – as is their personal attitude to safety,” Reidie said. “SafeFarm was created to offer our shareholders the opportunity to work safe and get home safe, every day. “We consider this free offer the start of the digital farming journey for some of our shareholders.” SafeFarm includes a farm diary, inventory control and the ability to allocate tasks on-farm, while a later release will focus on safe visit tools so farmers know who is on their farm and can ensure they are aware of the hazards and the
methods of mitigation. The SafeFarm tool has been tried with shareholders on their properties to ensure the end users have a practical, simple way to develop their health and safety initiatives and plans. FarmIQ chief executive Darryn Pegram said it is not easy for farmers to stay on top of their responsibilities and many are looking to their smartphones for apps that can help. “Our customers were telling us they wanted all their farm information in one place and that health and safety was a critical part of their farm management system.”
As road users we do not mind if the money is spent wisely and well back into the roading network but now we have it being splashed out on spurious, multi-million-dollar projects that have nothing to do with roading. Ken Shirley Road Transport Forum With reports of petrol prices exceeding $2.40 a litre the Auckland Regional Fuel tax allowed the oil companies to increase prices throughout the country, he said. The prices rise were worst for those outside the Gull zone, the area south of a line between Levin and Masterton. Where Gull operates it provides competitive fuel prices. The Government introduced the 11.5c a litre tax in June to fund transport projects in Auckland but Shirley said it has resulted in higher fuel prices beyond the intended boundary.
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FARMLANDS’ 68,000 shareholders now have free access to innovative technology allowing them to make their land safer by easily recording hazards, tracking incidents and marking the location of emergency equipment. It and FarmIQ have launched a free application, SafeFarm, designed to help primary sector improve its poor health and safety record. WorkSafe New Zealand said agriculture is the country’s most dangerous industry to work in. Nine people have lost their lives working in the sector this year – seven of them dying as a result
HIGHER fuel and freight costs and tougher animal welfare enforcement laws come into force over two days, September 30 and October 1. An increase of up to 8% in fuel excise tax and higher road user changes will be felt at the fuel pump and in higher costs for goods and services involving transport while new regulations introduce tougher enforcement of low to medium violations of animal welfare laws. “The vast majority of these regulations are based on current standards in the codes of welfare so the major change is how they will be enforced and the penalties for noncompliance,” a Ministry for Primary Industry spokesman said of the animal welfare changes. They include a $300 fine for poorly fitted collars and tethers, tighter restrictions on the use of electric prodders, a ban on docking dogs’ and cattle tails and the mandatory use of pain relief for other procedures. The measures being introduced also clarify requirements such as those for transporting stock. From October 1 electric prodders can be used only on the muscled hind or forequarters of cattle or pigs over 150kg when loading or unloading for transport, loading into stunning pens or when loading deer into stunning pens. Striking or prodding animals in sensitive areas is also banned and noncompliance can result in a fine of up to $500. From October 1, 2019, debudding or dehorning cattle will require a local anaesthetic. The delay allows time for farmers, veterinarians and contractors to prepare. Farmers doing the procedure must be trained
in anaesthetic use. Road Transport Forum chief executive Ken Shirley said not all the new fuel and road taxes will be invested in the National Land Transport Fund. The money can now be used to fund public transport projects like light rail. “As road users we do not mind if the money is spent wisely and well back into the roading network but now we have it being splashed out on spurious, multi-million-dollar projects that have nothing to do with roading.”
Newsmaker
22 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Ain’t no mountain high enough . . . Musterer, station owner, beer ad man and mountain climber Brian Dagg, who has scaled the highest peaks on seven continents, rises above the humdrum. He had a yarn with Tim Fulton.
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RIAN Dagg, aka Daggy, has always done it differently. The Wakatipu man spent his first year after school working for his uncle and father on the 22,660ha Coronet Peak Station. He and his brother John decided they wanted to buy the property. After 22 years in a family partnership Brian and his wife Dale sold most of the place and pursued a life of adventure, including climbing the highest peaks on seven continents. “I owned the place and now I’m having a look around so I suppose I’m doing it the other way round.” He always felt there was life outside farming. “You know what it’s like at school, you change your mind every 10 minutes. I was going to be a vet and then, I thought, a pilot. I got to do both those things. I work with animals and I get to ride in helicopters and in planes.” Dagg has always given things a crack. In the 1980s he fronted Speights ads, riding horses into bars and the like for the Southern Man campaign. He says now he put himself forward for the job because no-one else wanted to do it. “The Southern Man thing started coming in around about ’85 and they couldn’t get guys up in Canterbury to do it. They wanted dry, hard country so a mate of mine who’s a rep said ‘send them down here’. So we did, got paid very little ... but it morphed into other things and I started doing appearances.” The brewers bought him a horse float and he started doing wine and food festivals and opening ale houses. The profile led to television commercials for Nissan and Toyota and ultimately speaking
at conferences and community functions. At some events he has dressed up as Gandalf from Lord of the Rings and arrived on his white horse. “For Amway I shore a sheep and worked a dog. It was pretty simple. It’s a nice wee sideline anyway.” In the spirit of why-not he also jumped into mountaineering. “I’m not a big procrastinator. I decide something and just do it.” Now he’s learning Spanish because he always wanted to learn a second language and it’s so widely spoken.
I’m not a big procrastinator. I decide something and just do it. Brian Dagg Adventurer Dagg does casual mustering on about seven stations, allowing him to take the winter off for other pursuits, including mountaineering. He works mainly around the Wakatipu area but as far north as Waitaki and down to Te Anau. “They’re all good people I work for … it’s something different every day. I work with deer, cattle, goats, sheep and it’s a lot of fun.” He cherishes the long musters with horses, camping out under big skies. “You don’t come home until you finish the muster. It’s great.” The mustering gave him ingrained fitness, which prepared him well for the seven continental peaks of Carstensz Pyramid (Indonesia), Vinson Massif
(Antarctica), Elbrus (Europe), Kilimanjaro (Africa), Denali (North America), Aconcagua (South America) and Everest (Asia). “I haven’t done a lot of extra fitness. Prior to Everest I only spent two or three weeks on a rowing machine at night, rowing about 5km to 10km, just mainly to loosen up my body and put on just a bit of muscle bulk, but that’s about it.” But the part-time rugby coach always operates with an attitude of prepare for the worst and hope for the best and sometimes wonders whether people could apply a bit of mountaineeringthinking to everyday life. “Nowadays, when you see a rugby player kick the ball out on the full they just stick their hand up and smile – that’s their acknowledgment of a mistake. But I wonder if they’d kick the ball out on the full if their mistake could cost them a leg, a finger or their life.” New Zealand peaks can be just as demanding as those overseas. There are parts of Cecil Peak and Mt Crichton that are steeper than anything he traversed with crampons and ice axes. Dagg considers himself lucky to live such a varied life and realises it took him a long time to get there. Coronet Peak had been in the Dagg family for two generations when he sold the place. At the time it ran only wethers so the cost of hogget replacements was pinned on the price of wool. But then meat works came in and started buying Merinos, which hiked the price of wethers. “It would take you two years to get your money back off them instead of one and you had a death rate so it was all things to weigh in.”
FROM CORONET PEAK TO MT EVEREST: Brian and Dale Dagg, seen here at Mt Everest base camp, have swapped life on the farm for one of travel and adventure.
He also considered his parents’ attachment to the property, his own age and stage of farming and the fact his boys weren’t interested in being farmers. “The time felt right. I have no regrets, put it that way.” Looking at his position now, he’s content he put plenty in that part of his working life. “A lot of urban people don’t understand that you work all those years and have very little apart from an asset because 90% of your income goes back into your farm. They see the figure for
the farm sale and think ‘oh, these guys have done well’. But what about a lawyer who’s charging $250 an hour since he gets into practice?”. What counts for him is having a hunger for daily work and new challenges. “I mean, how many people can get up in the morning and say they look forward to going to work every day? “I do something that I enjoy and people pay me to do it. I don’t think there’s a better job in the world for me personally.”
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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
23
Medicinal trees cleansing water Trees known by iwi to have specific medicinal properties are proving to be valuable for healing the land as much as people. Research by Environmental Science and Research scientists is only now beginning to understand their potential for restoring water quality. Scientist Dr Maria Gutierrez-Gines spoke to Richard Rennie about what has been learnt.
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ATIVE manuka, so often revered for its valuable role in generating highvalue honey, is also proving it might have an equally valuable role in helping restore waterways thanks to medicinal properties only now being unravelled by scientists. A research team run by the Centre for Integrated Biowaste Research, including Environmental Science and Research scientists, has been working on small plots of predominately manuka plantings around Lake Wairarapa in an effort to better understand laboratory work that has demonstrated manuka and kanuka appear to accelerate the die-off of E coli bacteria in soil and reduce nitrate leaching more effectively than some other tree types or pasture. Dr Maria Gutierrez-Gines said Lake Wairarapa typifies the type of water body found in areas of intensive farming, with elevated nutrient levels and significantly modified surroundings. Researchers were engaged by the Wellington Regional Council and iwi to pursue their field studies with the lake being an ideal real-world test to better understand the potential such plantings might offer as the farming sector works to remediate waterways with riparian plantings. Further north at equally environmentally troubled Lake Waikare in Waikato they also have
GETTING TO THE ROOT OF THE PROBLEM: Scientist Dr Gutierrez-Gines is investigating the power of medicinal plants to purify soil and water.
plantings in place in partnership with local iwi, Waikato Regional Council and Waikato River Authority. But the scientists are quick to dispel any thought this is just any bunch of trees planted to filter nutrients. “What the work is doing is to try and recreate the original ecological state of the lake and integrate it into the landscape. “It is not necessarily about having the fastest growing, most efficient trees in place to filter nutrients. ‘If we did that then we’d probably just have banks of willows through there,” GutierrezGines said. The mosaic of manuka, kanuka and, more recently, horopito, cabbage trees and rata came in part from working with local iwi, incorporating taonga species important to tribes that lived in the region in early days, who reached for such species in dayto-day living. Scientists are keen to better understand what makes the manuka, in particular, so capable of breaking down E coli in soil. “It is the why we are trying to understand.
“Is it the result of the combination of tree plantings, conditions in the water and the soil particular to this area?” There are a number of interesting hypotheses held by the scientists that only time and funds will be able to winkle out.
You may think that as biomass grows the ability to filter would too but we really do not know at this stage.
“One could relate to the antimicrobial properties we know manuka and kanuka have in their leaves, often extracted as essential oils. “We know there are concentrations in their root systems and they could be acting on the E coli in soil.” There might also be some relationship with how the trees turn nitrogen into nitrate in the soil and their relationship with microbial communities that are still not fully understood.
The recent addition of horopito introduces a plant local iwi are very familiar with from its medicinal properties and ability to treat fungal infections. Key measurement indicators for scientists include nitrate levels around the plantings, phosphorous, pathogens and nutrient flow patterns. Gutierrez-Gines said the research has a strong element of ecosystem service study behind it. It is a rapidly evolving area of broad science studying the many and varied benefits humans freely gain from the natural environment and properly functioning ecosystems. Recreating realistic riparian plantings that capture species previously found in an area as natives meets not only the needs of farmers seeking to purify water runoff but iwi keen to see land restored with culturally significant species and communities wanting to see greater natural biodiversity. Support from local farmers has been particularly positive, with the entire trial area on private farmland they have offered to set aside for the trials. Farmer Julie Wrigley said the reason for participating is as much
about protecting the environment for future generations as it is to minimise present day damage to the lake. CIBR researchers also hope to take some of what they will learn from the study to another project involving a 10ha area of land near Levin being committed to landbased treatment of municipal waste water, funded by the Ministry for the Environment and Horowhenua District Council. “We are going to convert 10ha of pine trees to native vegetation to study how well native trees can treat the waste.” Only time will be able to answer some of the big questions raised by the study, including how well the plants continue to filter nutrients and pathogens as they grow bigger. “You may think that as biomass grows the ability to filter would too but we really do not know at this stage.” Longer term the scientists hope they will eventually be able to offer some solid planting recommendations on plant types and combinations tailored to the region being planted, meeting the needs of all parties in communities.
Make daylight saving life saving. Protect your loved ones by checking your smoke alarms when you put your clocks forward this weekend. If you don’t have smoke alarms please get them installed right away.
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Opinion
24 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
EDITORIAL Election is about more than ability
F
ONTERRA farmers are faced with a choice of five candidates for the three available directors’ jobs. Three are endorsed by the co-op’s formal selection process and two are standing independently. One the face of it the exercise is an easy one – pick the three best people for the job. It’s a nice idea but it doesn’t happen. In reality party politics, factions, prejudice, ideology, personalities, vested interests and populism are all factors influencing the way people vote. This election can also be seen as an endorsement or rejection of Fonterra’s selection process though there is also the possibility of a hung jury because to be elected candidates must get more than 50% of the vote. This issue is personified by the presence on the ballot paper of former director Leonie Guiney. We don’t know how Fonterra’s selection process works but it rejected Guiney. That and later events suggest Guiney was an odd voice out on the board. Farmers are now being asked if there should be a questioning voice at the table or if consensus rather than accountability and transparency should prevail. That’s a question that goes deeper than Fonterra because this obsession with presenting a united front and maintaining an image pervades society from the government down through our democracy and bureaucracy. In the case of this election the vote is also a test of confidence in Fonterra’s new leadership of chairman John Monaghan and interim chief executive Miles Hurrell. They have made promises about future performance but farmers have little of substance they can use to evaluate those good intentions. The pair have put everything Fonterra does up for review but farmers are being asked to vote in the dark because there is no indication of where that review will lead. Depending on what the candidates have to say the vote might reflect farmers’ attitudes to the internal conflicts Fonterra faces, most notably those between milk price (farmers) and dividend (investors) and commodities versus valueadd. There seems to be a growing voice that Fonterra is good at commodities and should stick to what it’s good at despite having invested enormous sums in infrastructure to produce value-added goods.
Stephen Bell
LETTERS
Save Basin water for energy ACCOUNTANT Murray Valentine (August 27) says he bases his decisions on facts. However, that maxim can lead one astray if facts relevant to a project or the wider economy are ignored. There’s an ignored issue in the dispute about expanding irrigation in the Mackenzie Country. The water used for irrigation there would otherwise be generating electricity renewably. The power stations and distribution infrastructure are sunk costs paid by taxpayers, investors and consumers. The energy returns on the hydro schemes’ investment are diminished by every bit of water taken for irrigation. The Waitaki power complex will be important in enabling NZ to reach Paris Agreement greenhouse emissions targets. If we are to have a sustainable
economy, electric transport alone will put heavy pressure on generation capacity. There are countless other potential uses for hydroelectric energy, which can smooth our journey to a prosperous, sustainable economy. The broader dairy industry is dependent on energy for sterilisation, dehydration and urea synthesis, though development of improved nitrogen-fixing plants might diminish the latter. The Mackenzie dams have an advantage over other sources of renewable energy such as wind and solar, which are erratic or seasonal. Hydro dams can quickly adjust supply to eliminate shortfall/surplus and they have the capacity to store energy. Even leaving aside biodiversity and scenery issues, increasing irrigation in the upper Waitaki is insane economics. These arguments
do not apply to water taken below the Waitaki dam near Kurow. Hydro energy commonly outperforms other energy resources with regard to energy return on investment. In 1926 British Nobel laureate chemist Frederick Soddy criticised the focus on monetary flows in economics, arguing real wealth is derived from the use of energy to transform materials into physical goods and services. Soddy’s ideas found fertile ground in the new discipline ecological economics in the late twentieth century. Farms as well as other users will become increasingly dependent on electrical energy as coal is phased out in the milk processing industry. There’s a legal presumption that prior legal access to a good such as water confers inalienable rights on the user.
However, in the MacKenzie Basin water rights situation, farmers have alienated the long-established rights of the hydro generators. Because a National-led government privatised half the ownership, private owners, including me, have, along with the New Zealand public, suffered financially from irrigation. I am no tycoon. I invested in a hydro company partly to reduce the possibility of these Crown jewels of the public ownership portfolio falling into the hands of foreign capitalists. The situation in the Waitaki catchment is different from the Clutha dams where orchardists were forced to move. They were compensated and their prior rights to irrigate were recognised on their new orchard sites. Allen Cookson Oxford
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Opinion
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
25
Unnecessary calf deaths anger Patrricia Hosking
M
Y LIFE as a calf rearer has been hell these last three weeks and I am angry. Every year I buy calves at a calf sale and too many die. Last year I lost 9%, in previous years more but this year 25% died miserable deaths in my sheds. The first calf to die was assisted off the truck. Yes, I attended the sale and bought the calves but we rearers have no way of telling which calves got sufficient colostrum until they start dying. In the space of a few hours from purchase one calf had become catastrophically unwell. It was immediately tube fed electrolytes, given antibiotics and faecal tested. The result was rotavirus. It died the following day. Then rotavirus broke out in the next pen then the next until all but one were full of infected calves. As my doctor friend said, it’s hard enough controlling rotavirus in a hospital ward so calf rearers can’t control the spread. Only one pen remains uninfected and thriving. I am angry because this scenario is repeated all over the country in calf rearers’ sheds and it is completely avoidable. The dairy farmer with an outbreak of rotavirus should not have sent any calves to the sale yard. S/he has simply made the rearers and calves lives miserable and potentially undermined the rearer’s profit margin. Why? When I mention high percentages of calf deaths to other rearers, all recall similar distressing experiences of dead and dying calves. Many think they should have somehow prevented the deaths, so they don’t report them. My experience is that calves don’t die of rotavirus if they get enough fresh colostrum within 24 hours of birth, enough electrolytes and good nursing care. Instead, many calves in my
The
Pulpit
sheds became depressed and sluggish, their heads and ears drooped and they crowded around the troughs continually slurping water to cool their elevated temperatures. They were tube fed electrolytes, up to 10 litres a day and had daily antibiotics.
My message to you, the guilty, lazy, greedy and incompetent dairy farmer who is to blame for the calf deaths is stop taking short-cuts.
Still they staggered and scoured bucket-loads of watery, stinking scours that eventually covered their rear ends, the shed walls, the bedding and the other sick calves. They lost weight, lost interest, lay down and refused feeds and many didn’t get up. Some I euthanased and many died despite my efforts. It was not a pretty sight. The calves that arrived in the same truck and had sufficient colostrum were not hard to identify. They recovered within days. The ones that didn’t have the
IT’S NOT ON: Ngongotaha calf rearer Patricia Hosking is angry at farmers continuing to send sick calves for sale.
colostrum died. The speed at which they died and my inability to save them tells a story. A sad statistic is that most rearers get out of the business of calf rearing after four years and nobody can blame them. Many rearers losing calves are experienced people with skills and proper facilities For instance, my sheds were purpose built. They have small pens with solid dividers to prevent the spread of disease. Their water is the water I drink, their bedding is clean untreated wood shavings, they have meal feeders and water troughs and both are cleaned out daily, sometimes more often. They have compartment milk feeders and get the amount and strength they are supposed to get. I have farmed and reared calves and nursed all my adult life and have a masters degree in health so I am probably qualified to talk about animal health. It is common knowledge that many dairy farmers do not give their day-old bobby calves, bulls and beef calves sufficient first day fresh colostrum. These calves are prevented from sucking their mother’s milk and
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getting the antibodies they need. They are often quickly carted to the shed and fed weakly diluted one, two, three and four day old colostrums and antibiotic milk. What they must have is three to four litres of fresh colostrum in the first 24 hours of life. If they don’t get it they will not survive. No amount of intervention during an infection a week or two or three weeks later will keep that calf alive. I estimate about 25% of dairy farmers don’t give beef calves sufficient colostrum. The industry recognises this to the extent that vets advise rearers not to buy from calf sale yards. That the problem is so widely acknowledged but has gone unchecked for decades reflects poorly on everyone in the industry but particularly dairy farmers, stock firms and the Ministry for Primary Industries. It threatens to be the next highly publicised issue of animal abuse on New Zealand dairy farms and it needs to be urgently addressed. My challenge to MPI is to randomly blood test colostrum levels at calf sale yards and prosecute farmers who send in calves with inadequate levels.
My challenge to stock firms is to refuse subsequent calves from dairy farmers who send sick calves and withhold payment when rearers report disease outbreaks. My challenge to all rearers is to record and notify stock firms of all calf deaths and stop blaming yourselves. My challenge to dairy farmers is to care for newborn beef and bull calves as you do your heifer replacements. My message to you, the guilty, lazy, greedy and incompetent dairy farmer who is to blame for the calf deaths is stop taking short-cuts, give them proper colostrum and stop killing calves. It has cost us our reasonable quality of life, it has impacted on our incomes and it has caused distressing death to far too many calves. Their deaths are a poor reflection on NZ dairy farmers, not the calf rearer. Please fix this industry.
Your View Got a view on some aspect of farming you would like to get across? The Pulpit offers readers the chance to have their say. nzfarmersweekly@nzx.com Phone 06 323 1519
Opinion
26 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Our fertiliser use is ethical Alternative View
Alan Emerson
I CAN remember at school being told of our fantastic scientists who, in the 1950s, solved the affliction known as Bush Sickness. It was a wasting disease where healthy cattle and sheep lost condition and eventually died a cruel, lingering death. Our scientists found that by fertilising with cobalt and phosphorous Bush Sickness could be eliminated. That freed up much of the 13,000 square kilometers of land known as the Volcanic Plateau for pastoral farming. All New Zealand has benefited since, even the vegan fundamentalists with their Ohakune carrots. I’m sure NZ could survive without fertiliser but our standard of living would plummet. The harsh reality is that our soils are missing some important elements to grow grass and to make them productive we need fertiliser. It is also important to recognise that many of our fertilisers, lime and phosphate for example, are natural products. All that hasn’t stopped Fairfax Media from running a vitriolic diatribe against local farmers and the fertiliser they and indeed the country rely on. From accusing us of stealing phosphate rock to poisoning the environment, nothing seems sacred.
For the record, I believe the NZ fertiliser industry is ethical and responsible. Farmers, fertiliser cooperatives and our academic institutions have jumped through hoops to establish a strong, environmentally responsible industry. It is also obvious to me the authors of the anti-farming articles have little knowledge of the realities of farmers, farming and fertiliser. Mike Joy and anglers were consulted but of reputable NZ agricultural scientists, experts from NIWA, Lincoln and Massey or even farmers themselves I could find no evidence. We also had some sweeping statements such as “the (fertiliser) co-op model makes them resistant to social pressure”. One could respectfully and humbly suggest that statement was made without visiting either Ravensdown or Ballance’s websites, talking to anyone in authority from those co-ops or attending an annual meeting. We are told that there is 187,000 tonnes of nitrogen polluting our rivers but no factual explanation as to where the figure came from. For the record, I don’t accept it. Further, the Ministry for the Environment report released last year said more than 99% of total river length is estimated not to have nitrate nitrogen concentrations high enough to affect the growth of multiple, sensitive, freshwater species for the period 2009 to 2013. So where is the 187,000 tonnes? There are higher concentrations of nitrate in kale, beetroot and some cans of baby food than in our rivers. In addition, we have farmers accused of perpetuating a refugee crisis in the Western Sahara as we
EXACT: Fertiliser is spread on the basis of scientific analysis using accredited products and contractors.
buy phosphate rock from there. I had several communications with the OCP Group, the company that sells phosphate rock to NZ. The global reserves of phosphate are 70 billion tonnes, of which Morocco has 50b. The Boucraa mine, the establishment that has created all the controversy, has but 2% of Moroccan phosphate – 98% is contained within the traditional borders of Morocco itself with the main mine near Casablanca and the second biggest near Marrakech. NZ buys from all three. The Boucraa phosphate is, however, more suitable for processing and meeting environmental specifications and nutrient content. What is interesting is the OCP group established a subsidiary, Phosboucraa, where all the profits are invested in the Southern Sahara region so an alternative argument to the Fairfax rant could be that buying fertiliser
That not only tells the farmer the fertiliser required but all of the effects and implications of applying that fertiliser. The farmer then uses a Fertmark certified fertiliser because more than 90% of NZ fertilisers are. Fertmark is a stringent qualitycontrol standard for fertiliser. Most then use a Spreadmark accredited operator who is highly trained and has the machinery to precisely spread the product. The farmer then receives a GPS map showing him or her exactly where the fertiliser was applied. There is absolutely no guesswork in the process. That is the factual reality of farmers and fertiliser in NZ, not what you might read in the papers.
from Boucraa is doing the locals a favour. What was also ignored in the articles is that many countries have their own sources of phosphate. NZ doesn’t. If we are to survive and prosper as a nation we have to import it and that will, inevitably, be from Morocco. We had a headline talking about our phosphorus use entitled Dangerous Addiction. According to my dictionary dangerous means perilous or being vulnerable to injury. Addiction means a person who is addicted, especially to narcotic drugs. Do we have a dangerous addiction to fertiliser? Do we hell. Looking at the facts. The reality is simple. Farmers test their soil to establish what is lacking. They consult their academically qualified fertiliser representative and use an internationally accepted modelling tool with Overseer.
Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz
The end of plastic milk bottles businesses? We’re already starting to see some change because of the growing level of concern about plastic pollution. This month my local supermarket ditched single use plastic bags and by the end of the year all Countdown supermarkets will be plastic-free. I can refill my empty shampoo and dishwash bottles at a shop up
of consumption with every empty bottle or packet. I’ve worked out my household sends 208 two-litre plastic milk bottles to the recycling plant every year but we now know recycling plants can’t keep up with the amount of plastic we’re sending their way.
the road and take empty jars from my pantry to fill at the bulk bins. Even so, every two weeks our recycling is collected and without fail we fill up the 240 litre bin-onwheels with all sorts of plastic, paper and glass. When these blue-lidded bins arrived years ago I felt proud of how good our family was at recycling but now I feel the weight
Continued on next page
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NZ Maternal Worth with Facial Eczema (MW+X)
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Amy Williams
ONE evening as I sat scrolling through my social media feeds I joined an online petition to Fonterra to bring back glass milk bottles. The petition was small with just over 1000 supporters and called for the dairy giant to switch to glass to reduce plastic and it got me thinking about who initiates change – consumers or
Town Talk
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
27
MPI and laughing at dance of death From the Ridge
Steve Wyn-Harris
LAST week’s curious story of the suspected poisoning of a bunch of Carterton School children took my attention. Jane and I watched the breaking news item and the dramatic shots of children being decontaminated and interviews of children who recounted that their friends had seen planes flying overhead with something coming out. I suggested that this could be a textbook case of mass hysteria but could understand the authorities had to take a precautionary approach, just in case. Sure enough, it turned out the most likely cause of 50 children vomiting, feeling dizzy, suffering headaches and others feeling unwell and being hospitalised briefly was a cubic
metre of compost delivered to a neighbouring property, potentially opening up a whole new area of chemical warfare. The mushroom compost was a bit fresh and still cooking so fairly pungent. It emitted a sulphur smell. The incident reminded me of the time when Auckland had to be sprayed for an insect incursion, the painted apple moth from memory, and, of course, there was a great deal of opposition leading up to the campaign. Finally, the plane flew over with its first load and resulted in large numbers of folk reporting all sorts of symptoms including some quite serious reactions. The trouble was the first flights were water only because they were test runs. When mass hysteria leads to actual illness it is called mass psychogenic illness (MPI). It differs from other collective delusions in that the symptoms of the disease have no organic cause. There have been some great examples of MPI through history. The Middle Ages saw several outbreaks of dancing mania
IDEAS MAN: Glen Herud with his mobile milking unit and the end product, organic whole milk.
Continued from previous page Everyday people like me are doing the maths, working out our footprint on the environment and
trying to find ways to reduce it. And maybe signing a petition. When it comes to milk, reusable glass bottles make sense but the products available are priced at
The most likely cause of 50 children vomiting, feeling dizzy, suffering headaches and others feeling unwell and being hospitalised briefly was a cubic metre of compost.
NOT FUNNY: The Tanganyika laughing epidemic closed schools.
where large groups would go at it sometimes for weeks. Often participants would howl, strip, make obscene gestures and laugh and cry to the point of death. I’d pay good money to watch this carry-on. Young female nuns seemed to be particularly affected and the priest was called to exorcise the supposed demons. However, the deprivation and tough discipline these young girls underwent was the likely trigger. The Dancing Plague of 1518 in Strasbourg was a decent case where 400 people were affected and many danced themselves to death.
However, an alternative theory to an hysterical outbreak is that their grain had an ergot fungus in it and it produced something like LSD, so that might have been the original Woodstock. Once the industrial revolution took place, outbreaks of MPI occurred in factories throughout all industrialised countries, likely brought about from poor conditions and stress. A well-documented case that came to be called the June Bug outbreak happened in the southern United States in June 1962 in a dressmaking factory. Sixty-two people, 59 of them women, quickly came to believe they had been bitten by bugs and developed severe nausea and their skin broke out. No bugs or bite marks were discovered but all those afflicted were under a lot of strain at the time.
the premium end of the market – $6 or more per litre – and you have to know where it’s sold. In Auckland a few cafes sell glassbottled milk. What would it take for the big dairy businesses to stop using plastic bottles? One clever competitor could disrupt the market and my hopes are pinned on Happy Cow Milk 2.0. After Happy Cow Milk Company went into liquidation in April founder Glen Herud received so much support for his dream of creating a more ethical and sustainable dairy model that he didn’t throw the towel in. Since I last wrote about the company, Herud, a Rangiora dairy farmer, has started looking for farmers to partner with who’d supply milk they could process on-site with their own mobile cowshed. Herud created a system
that dramatically reduces the setup cost of pasteurising milk. The milk would be bottled in re-usable glass. In an update on Happy Cow Milk’s Facebook page Herud says he wants to make it so ordinary people who have a little bit of land or a lot of land can supply their local market. He says 20 farmers with 120 cows each would be a good start for a national footprint. The idea sounds like common sense – the model in theory would be profitable for farmers and local delivery would make the price of milk more affordable for consumers. If these Happy Cow herds can be found it will be up to consumers to back the new dairy model. Just like taking reusable bags to the supermarket we might need to take glass bottles to a recycling station.
One of my favourites is the Tanganyika laughter epidemic also in 1962 but in Tanzania and affecting school children. It started with just three girls in one school but spread throughout a region. In the end 14 schools had to be shut and 1000 children were affected. It lasted up to two weeks in some individuals. Symptoms, as well as the laughing, included pain, fainting, flatulence, respiratory problems, rashes, attacks of crying and random screaming. It is now known intense media coverage is not helpful and tends to exacerbate an outbreak of MPI. Enough said.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
It will take commitment from consumers to make it work but I suspect many people would go the extra little mile to reduce plastic in their households. Could one clever competitor really change an industry that revolves around mass production and shareholder returns? If it’s financially viable for farmers then it’s possible a more ethical and sustainable dairy model could take off over time, as long as consumers support it. Change is rarely easy. I’ve forgotten my reusable supermarket bags twice in the last few weeks but I’m committed to reducing plastic in our household. I’ve said it before – I’ll get behind any dairy company that offers glass-bottled milk at a competitive and sustainable price. And despite the small petition, I suspect thousands of others would too.
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On Farm Story
28 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Getting to the next generation Ken Hames thinks a lot about the big issues facing farming and society. He accepts change as part of life and gets on with doing the necessary work then moves on as he keeps looking to the future. He talked to Glenys Christian about his views on the challenges facing farmers and what they need to do to meet them.
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ORTHLAND farmer Ken Hames always has an eye to the future. So, when he pays local school children $1.20 for each tree they plant on his Paparoa farm he is already thinking about what will happen when they’re adults. “Seventy percent of them will be living in cities,” he said. “Rural New Zealand needs to get wider NZ on side to lock in our licence to farm and this is how we can influence the next generation. “There needs to be a game plan for that to happen and farmers have to play their part. “We’ve got to lead by example and a lot of farmers are doing that. “We’ve got to be thought of positively.” And he not only gets farming’s environmental message across to the youngsters he employs. “Sometimes their parents come along to help them,” he said. He bought his first farm at 23 after completing an agricultural degree at Massey University, always having planned to go farming. But 10 years later he sold that 260 hectare block and bought the 370ha property just 6km away that had been farmed by his father and uncle. As well as the larger scale the fact it was on a school bus route was an attraction as he’d met and married Janine, a vet working out of Ruawai. Their children are David, 19, who’s in the army and Suzy, 16, completing her second to last year at high school. There was plenty of work waiting for him. “There were only 23 paddocks but there are 120 now,” he said. They’re also divided by using more than 4000 standards for break feeding. He also designed a water reticulation system and put troughs in each paddock. While he started out running more than 1500 ewes and about 300 cattle over 10 years he moved progressively towards switching to running bull beef only. “It depends where your interest lies but it’s less hard, physical work,” he said. “Monocultures are simpler.” He now buys all his stock in. A quarter are 100kg autumn-born calves that come from a longterm Waikato supplier and the rest rising one-year-olds bought around Northland through winter. He targets live weights greater than 530kg when the bulls leave his farm after regular weighing. The arrival of Mycoplasma bovis has meant some changes to his usual routine this year. He hasn’t sold any of his Friesian bulls as he usually would to local farmers but has the surety of knowing his Waikato supplier has bought
animals only from closed herds. When it comes to the recent review of the National Animal Identification and Tracing System he said it was a warning to farmers to lift their game. “You have to be compliant,” he said. “It can be onerous but you’ve got to make sure you do.” He believes there will be penalties in future if farmers don’t comply. Ken says it’s important farmers step up when it comes to environmental issues. Ten years ago he contacted Northland Regional Council to ask it to be involved in an environmental plan on his farm. “I recognised it was the right thing to do,” he said. “I saw it was coming to other industries and I believe that every farmer should protect waterways where they can.” Since then it’s been a case of chipping away at what needed to be done. “Northland Regional Council has been a big supporter and has contributed finance every year to costs to fence off waterways,” he said. “Without that I would have struggled. In tough years when there wasn’t much money I chose an easier bit to do.” While he’s accomplished all the fencing required on the farm along with that around seven
IF THE CAP FITS: Ken Hames is involved with governance and farmer education groups and with teaching youngsters about citizenship.
different bush blocks making up about 60ha the recent purchase of an adjoining 30ha has seen another fencing and planting programme put in place. “That will be two years’ work,” he said. For the last several he’s concentrated on putting natives in where he’s already fenced waterways. He’s also put poplar poles in on hillsides at risk of slipping. And for the last three years he’s been chairman of the Auckland Ballance Farm Environment Awards. About 10 years ago he and Janine got involved in the dairy industry, buying a small local dairy farm and boosting production from about 50,000kg MS to more than 70,000kg in one season. But, as with sheep and beef farming, more scale beckoned. That led to them selling that
farm and buying a half share in a 284ha Tomarata farm on the east coast. It now milks 530 cows. A share in a second farm in the same area was also bought but then sold to enable their partner to buy his first farm. “It was about growing the business and diversifying by moving into another industry,” he said. A contract milker has been on the farm for the last seven years, employing three staff. Ken is in charge of the farm accounts and spends at least one day a month there at a regularly scheduled meeting of the business partners. In 2013 he threw his hat into the ring when former deputy chairman and Northland dairy farmer Greg Gent retired from the Fonterra board. Though unsuccessful he’s had a wide range of governance experience since
GREEN: Ken Hames has spent 10 years making environmental enhancements on his farm.
We’ve got to lead by example and a lot of farmers are doing that. We’ve got to be thought of positively. Ken Hames Farmer earlier having completed the Fonterra Governance Programme. “It’s all about the people you meet and giving back to the community,” he said. He was a North Power director for six years as well as serving a year on North Power Fibre and three years on the company’s subsidiary, West Coast Energy, in Western Australia. As with many farmers internet connectivity is a case of finding your spot – in his dining room it’s all systems go but in his office at the other end of the house there’s no reception. “All farmers want fast internet access and the Government could help,” he said. It would certainly make increasing compliance requirements a lot easier to deal with. “People don’t enjoy it but it’s the way of the world.” Ken has also been on the Northland Beef and Lamb Farmer Council for the last nine years and admits there are some headwinds out there. “Individually, some farmers feel knocked about,” he said. “It’s been going on for some years but sheep and beef farmers have a big task ahead when it comes to water quality accords. “And there’s more volatility in their income and product prices.” They need to have their debt at the right level and if confronted with a large amount of fencing and
On Farm Story
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
GET ON WITH IT: Farmers have to lift their compliance game to keep their social licence to farm, Ken Hames says. planting required to meet future environmental standards, chip away at the task ahead one small piece at a time, he believes. When it comes to big issues on the horizon for the sector he’s quick to name meeting NZ’s carbon reduction goals. “We haven’t got our heads around it and I probably haven’t thought about it enough,” he said. “We need to get a 10-year plan in place and my thoughts are, is there a win:win situation?” That could perhaps involve sheep and beef farmers doing a deal with their dairy farming counterparts to plant trees on their properties while being compensated by a share of milk flow income. Ken already has 25ha of pines on his farm, planted almost 20 years ago. To establish the block he took on a 25% investor because he couldn’t afford the outlay himself at the time. He thinks that once the trees are harvested they’re likely to be replanted. The land is not suited to regenerating manuka and despite high returns for manuka honey he believes production is more suited to lowcost Northland land where there are few neighbours and therefore not a variety of feeding sources for the bees. His second concern is the threat posed by synthetic meat. “It worries me,” he said. “Will consumers pay a premium for naturally grown beef versus a low-cost product?” One factor he is relying on is
the rise and rise of wealth in Asian consumers, which he first saw up close during participation in a FAME programme a decade ago. “It taught me how to think about a customer focus and the consumer’s point of view,” he said. And he believes telling the NZ story can help a great deal, giving information about how farmers are doing the right thing and care for the land where food comes from. “We’re all in the same boat,” he said. And while industry bodies have a big role to play sometimes he feels the message can be more powerful coming from farmers, whether it be through establishing their own brands for products or using social media avenues. “New Zealanders are sometimes modest and they don’t like telling their story,” he said. A more recent role he’s taken on has been as chairman of Extension 350, an innovative Northland project launched three years ago and involving the Ministry for Primary Industries, DairyNZ, Beef and Lamb NZ, Northland Inc and the regional council. “It’s all about farmers learning from farmers and there’s been strong interest,” Ken said. There are seven clusters of target, mentor and associate farmers up and running so far and three more dairy clusters are to be added next year. “People have got in behind it, got involved and made it happen,” he said.
“It helps farmers achieve their goals and they’re not always financial. You hear stories at field days which are quite moving.” And perhaps the most forwardlooking of his governance roles is as national chairman of the Duke of Edinburgh Awards, which he’s held for the last year. Closer to home he heads out to the bush with local students and
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Photos: Malcolm Pullman a teacher on some of the three tramps in each of three years they must complete as part of the adventurous journeys component of activities that also include involvement in community services and hobbies. “They have to be motivated,” he said. “We’re teaching them citizenship.”
It’s all about the people you meet and giving back to the community. Ken Hames Farmer
SHOW THE WAY: Ken Hames has a strong involvement in farming and community groups but isn’t a preacher. He leads by example.
World
30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
Health, integrity drive choices trustworthiness of food and drink. Making such information available will require a change in approach along the whole supply chain. A recent report by meat company Cranswick tried to expand on what that might mean in practice. The report suggests we are entering a new era of radical transparency. Being able to prove where meat comes from is fast becoming a business-critical issue, the report said. It suggests companies will need to publicly share significant amounts of information and data on their process, products and supply chains to allow shoppers to make informed buying decisions. That will involve showing behind-the-scenes, real-time processes on farms and in factories. For example, farmers are likely to be expected to provide greater disclosure on the use of any pesticides, herbicides and antibiotics that might leave traces of chemicals. Consumers should be able to use QR codes on food packages to drill into details of where their food has come from and the assurance standards to which it has been produced, Cranswick said. A government and industry Agrievents 2018 group in Britain is working towards a new traceability system to unite online movement AWDT Understanding Your Farming Business & Wahine Maia, systems and add Wahine Whenua new production 3 full-day workshops and an evening graduation ceremony run over four months. data features Registrations for 2019 programmes are now open, visit the such as EID cattle website for dates, locations and to register. tagging and the Website: To register visit www.awdt.org.nz/programmes simplified sharing Contact: anna@awdt.org.nz or 06 375 8180 for more information of medicine and RMPP Action Network – Facilitator training courses health data. For rural professionals or farmers looking to run an Action Group It includes the under RMPP Action Network. No course fees. Register at board as well as www.actionnetwork.co.nz/training Lead Facilitator workshops the Department • East Coast/Gisborne 16 & 17 October of Environment, • Wellington 4 & 5 December Food and Rural Action Network Fundamentals & Extension Design affairs and workshops all livestock • Hawkes Bay 17 & 18 October farmer groups, • Invercargill 24 & 25 October • Whangarei 7 & 8 November auctioneers and • East Coast/Gisborne 13 & 14 November meat processors. • Christchurch 12 & 13 December The ability to For more info contact info@actionnetwork.co.nz attach medicine Wednesday 17/10/18 & Thursday 18/10/18 records or TB NZGSTA Annual Conference and Book Launch data to animal For members and associates of the NZGSTA movement records Venue: The Crowne Plaza Hotel, Cnr Colombo & Armagh Sts. would improve Website: https://www.nzgsta.co.nz/nzgsta-conference-2018/ You can register online or for more information contact the confidence of
CHANGING consumer trends and developments in the food chain could have a big influence on the future marketplace for farm produce, a Consumer Insight report by Britain’s Agriculture and Horticulture Development Board says. It lists four main influences as successive food scares leaving their mark, engineered meat and milk, plant proteins and the different attitudes of nextgeneration consumers. Consumers are said to be seeking greater assurances about the provenance and integrity of food and digging much deeper than they ever have before. According to research company Mintel, many consumers around the world lack trust in regulatory systems, manufacturers and even their fellow humans. It means they are increasingly looking for complete and total transparency from food companies and the farmers who supply them. That can take many forms. Some consumers will be simply interested in knowing where a product was made. Others might want much more detailed information about production standards to reassure themselves about the safety and
0091182 0076663
71.67x200 200x71.67
agrievents
Tricia.radford@seedindustrynz.co.nz
Saturday 27/10/18 117th Amberley A&P Annual Show Venue: Amberley Domain, 50 Douglas Road, Amberley Time: Gates open 7am Admission: Adults $10, children under 15 free Contact: amberleyaandp@gmail.com
farmer and food chain buyers, its supporters argue. The new system would also aim to facilitate international and domestic trade as well as supporting supply chain efficiency and farm productivity. The day lab-grown meat or animal-free dairy products becomes a mainstream commercial reality is still a while away but investment by companies such as Cargill, Unilever and the tech billionaire Bill Gates is hastening the development of scientifically engineered food and drinks. Memphis Meats in the United States is one of a number of startups working in this field. It focuses on producing real meat from animal cells without the need to raise or process animals, with an aim to launch in 2021. The company and others are already marketing themselves using the words clean meat. They aim to appeal to environmentally conscious consumers worried about the effect of rearing livestock in terms of greenhouse gas emissions and water use. They also use clean to signify their products will be created without antibiotics and with a lower risk of food-borne diseases. Another US company, Perfect Day, is creating cow-free dairy products using a process similar to craft brewing. It uses yeast and fermentation techniques to make the same dairy proteins that cows make but without the need for cows. Arguments are already starting in the US courts about
How can farmers react?
LK0085515©
Wednesday 31/10/18 Rural Business Network Positioning for a very different future – Dr Warren Parker Venue: Barge Showgrounds Events Centre, Whangarei Time: 5:30pm - 7:30pm Website: https://my.youngfarmers.co.nz/rbn/events
IS IT REAL: What is the future for traditional farm produce in an era of alternative proteins?
Should your important event be listed here? Ph 0800 85 25 80 or email adcopy@globalhq.co.nz
• Work to help build consumer trust in meat and dairy production by demonstrating transparency and the positives of farming. • Use social media tools like Twitter to present the positive and human face of farming. • Minimise any instances of poor welfare practices that could lead to damaging headlines that might put people off consuming meat and milk. • Focus on producing to specification. A key differentiator between traditional meat and lab-grown meats is likely to be its eating quality, taste and texture. UK Farmers Weekly
whether these products should be marketed as meat or milk if they don’t involve rearing and processing animals. Whatever the answer, the cost of producing artificial meat is falling fast. A briefing paper published in August by the Adam Smith Institute said just five years ago the cost of a burger made with meat grown in a lab stood at £192,000 but has dropped to just £8. “The world is on the cusp of an historic change,” it said. “Animal husbandry, which has for millennia been the way in which meat was produced, now faces a viable alternative.” When Waitrose issued its list of food-based predictions for 2018, high on the list was increased demand for plant proteins. New plant-based proteins appeal to people wanting to follow a flexitarian (semi-vegetarian) diet as well as to full-time vegetarians and vegans. They attract people who believe they will cut their environmental impact by choosing not to eat meat as regularly. But they also appeal to consumers who like the idea of following a more natural diet because of perceived health benefits. In May, Tesco became the first supermarket to sell a plantbased steak which its Dutch manufacturer claims looks and tastes just like real meat. The product is a world first and made from a combination of soya and wheat with beetroot used to help give the product the look and feel of a real steak. The first examples sold out within a day in some stores. Demand for plant-based foods grew by more than 20% in the US between June 2017 and June 2018 and the sector is now worth more than £2.28 billion according to the Plant-Based Foods Association. That compares with growth across all food sales of 8% in 2017 and just 2% in 2018. According to data from the sales research company Nielsen: Plant-based milk accounts for 15% of total milk sales, worth an estimated £1.22b last year. Cow’s milk sales were down 6%
on the previous year. Plant-based meat sales rose by 24%, topping £461m. Strong growth in sales of plantbased coffee creamers (up 131%), cheese (up 43%) and yoghurts (up 55%). The board recently produced a report on the implications of increased interest in plant-based foods on the meat and dairy sectors. It concluded increased sales of plant-based products are being driven not by vegans but by meateaters keen to try something new and who want to cut back on meat consumption because of health and environmental concerns. The board predicts the number of people prepared to commit to a fully vegan diet is likely to remain quite low because, despite the growth in plant-based options, it remains a difficult diet to stick to permanently. “There are changes on the horizon but, as yet, British consumers, by and large, are maintaining their desire to eat meat and dairy.” However, the report suggests the industry needs to work together to build consumers’ trust and confidence in meat and dairy production. Kantar Worldpanel analysed the dairy consumption of 16 to 24-year-olds and found there are interesting differences to older generations. They generally tend to drink less tea and coffee at home than older people and are less likely to have a traditional sandwich at lunchtime, so they eat less butter. However, they are open to eating dairy products as they are consumers of Italian foods such as pizza and lasagne. Cheese is identified as the dairy product they are least willing to give up. This intelligence led to a £1.2 million consumer-facing campaign by the board and Dairy UK, aimed at people born between the mid-1980s and through the 1990s to remind them of the values of all dairy products and how they can fit into their lives. The results have been promising. Attitudinal research done after the initial wave of promotional activity in February and March showed 8% of the target audience is less likely to cut down dairy intake and 11% are less likely to replace dairy with alternatives compared with before the campaign. Other characteristics associated with younger consumers are costconsciousness and unwillingness to spend a long time cooking. That means they want foods that are quick and easy to prepare and cook. People are increasingly thinking about the health benefits when choosing their food though health means different things to different people. However, a greater focus on the health benefits of beef, lamb and dairy could drive consumers to buy more.
Employment
Classifieds
Junior Shepherd
SHEEP BREEDING OPPORTUNITY A large-scale ram breeding entity is looking for expressions of interest from people to form a partnership to operate one or more ram breeding flocks. • Each flock comprises up to 1000 ewe plus replacements • Opportunity to achieve a premium for progeny that meet specification at weaning • Lambing date mid to late August • Lower North Island location • Management and infrastructure capable of handling increased complexity associated with the operation of a ram breeding flock
Tasmania Creese North East is a 4000ha farming business located at Tomahawk in North East Tasmania. The property runs 1000 Angus Cows and 12,000 Composite Ewes as well as 400ha of irrigation. We currently have a position vacant for a junior shepherd to work as part of our team.
LK0094610©
Persons interested in investigating this opportunity are invited to contact Richmond Beetham at BakerAg, Masterton richmond@bakerag.co.nz Enquiries will be treated in complete confidence.
Remuneration by negotiation depending on experience. Applications or enquiries to: sam@creesenortheast.com.au
Shepherd General
Kotare requires a shepherd/general on their 490ha lamb and beef finishing operation, which is located 15km north of Feilding. It is an intensive flat land block which is run in conjunction with breeding properties in the Turakina valley, north of Hunterville. The successful applicant will be a part of an enthusiastic and progressive team. They must be competent in the following: • Machinery maintenance and operation • Land preparation for cropping • Stock movement – 2-3 dogs under good control • Fencing – conventional and electric • General stock work and husbandry There is a newly renovated one bedroom house available. Remuneration will be based on experience.
LK0094642©
This position would suit a person passionate about agriculture and looking to gain experience on a progressive livestock operation in Tasmania.
HUNTAWAYS, HEADING DOGS from 50 cents a day! Deliver NZ wide! Trial OK. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.
CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com
ANIMAL SUPPLEMENTS
Tasmania Creese North East is a 4000ha farming business located at Tomahawk in North East Tasmania.
APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz
The property runs 1000 Angus Cows and 12,000 Composites Ewes as well as 400ha of irrigation. We currently have a position vacant for an experienced shepherd to work as part of our team who would need the following attributes.
ATTENTION FARMERS
• A good understanding of pasture management • Be able to work in a team or individually • Have good working dogs • Good stock husbandry skills LK0094643©
LK0094649©
Send CVs with references to: kotare1@xtra.co.nz
FLY OR LICE problem? Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m
ANIMAL HEALTH
Senior Shepherd
Remuneration by negotiation depending on experience.
DOGS FOR SALE
www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).
The position is primarily livestock focused but will include some general farming duties.
For further information please contact Andy Hurley 0274 429 143
ANIMAL HANDLING
Applications or enquiries to: sam@creesenortheast.com.au
www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 brianmace@xtra.co.nz
CONTRACTORS GORSE AND THISTLE SPRAYING. Experience teams with mist blowers, hand pumps and gun and hose. No job too big. Camp out teams. Phone Dave 06 375 8032.
DOGS FOR SALE
AgriHQ Senior Analyst Red meat
GlobalHQ, based in Feilding, is the country’s most innovative multimedia agri-information hub. We work hard to create valuable content that informs, inspires and entertains. We invest in great people, and products including the AgriHQ suite of data and analysis products, Farmers Weekly, On Farm Story and Dairy Farmer. We have a vacancy for a smart-thinking candidate with a real interest in the business of farming, to work alongside our experienced team of five analysts. You will join our trusted AgriHQ team using the latest tools to produce in-demand red meat sector data and analysis. You will maintain and uphold the current reputation of our flagship AgriHQ report – Livestock Insight and in doing so, build on the strong relationships we have with industry contacts. Your week will be spent creating high level analysis and commentary the industry trusts. You will build professional relationships, extracting the right information from a wide range of industry sources. You will be working in a team the primary sector turns to first for independent content they value to give them a competitive edge. With a great working environment comes serious responsibility, decision making, and company collaboration! We have an open mind on the location and whether this is a full or part time role. If you’re ready for the responsibility and the challenge, we invite you to register your interest and request a job description now. Please email: steph.holloway@globalhq.co.nz LK0094575©
Application close date: Monday 8th October 2018
HANDY HUNTAWAY bitch, 16 months old. Been used on dairy heifers. $800. Phone 07 872 2838. WAIKATO CENTRE. Tux Yarding/Handy dog challenge/Trans-Tasman course. 15th, 16th, 17th, 18th November. Aratiatia Station, Taupo. Enquiries Phone 07 543 2157 / 027 495 5368. We would like to thank the following sponsors: Aratiatia Station for land and sheep, Rangitaiki Station for sheep, Purina Tux,Central Motor Group Taupo, Wairakei Pastoral, Team Wealleans, PGG Wrightson & Gordon’s Transport.
YOUNG HEADING and Huntaways. Top working bloodlines. View our website www.ringwaykennels.co.nz Join us on Facebook: Working dogs New Zealand. Phone 027 248 7704.
DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. BUYING SOUTH AND North Islands. No one buys or pays more! www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.
FARM MAPPING YOUR FARM MAPPED showing paddock sizes. Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz
FERTILISER DOLOMITE, NZ’s finest Magnesium fertiliser. Bio-Gro certified, bulk or bagged. 0800 436 566.
GRAZING AVAILABLE
RAMS FOR SALE
CALF GRAZING available for 25-35 animals. Good weekly rates. Raglan area. Phone 07 825 4423.
2018 has been a record season for Sheep. Top Ramguard Facial eczema tested, SIL recorded, Purebred Romney Rams will be hard to find. Approx 80 Rams will be available at the 34th Mid-Northern Romney Ram Fair Thursday 1st November 2018 at 12 noon. In conjunction with Waikato Agricultural and Pastoral Association. Waikato Events Centre. Claudelands Hamilton.
HORTICULTURE NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz
LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. 20 IN-CALF BLACK Wagyu cows and heifers. Vetted and calf for autumn calving – March/April. Phone Steven 029 770 4693. Whangarei. B R O O K L A N D SIMMENTAL, LBW, short gestation, bulls, suitable for beef or dairy, EBV’s available. Phone 06 374 1802.
PROPERTY WANTED HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654.
FOR SALE DOG/PET FOOD. Lamb/ Beef and chicken products. All natural - raw - no preservatives or additives. NOSLOC PRODUCTS. Ex-freezer Te Kuiti. For information and prices www.nosloc.com or phone 07 878 6868.
GOATS WANTED
FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916. GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis. GOATS. 40 YEARS experience mustering feral cattle and feral goats anywhere in NZ. 50% owner (no costs). 50% musterer (all costs). Phone Kerry Coulter 027 494 4194.
SITUATIONS VACANT MILKER REQUIRED for casual weekend and odd weekday work. Familyrun dairy farm in Fernside. 200 cows 24 ASHB. Punctual and reliable with experience preferred but training for those keen to learn the industry. Email holmcroft@hotmail.com
STOCK FEED MOISTURE METERS Hay, Silage dry matter, grain. www.moisturemeters.co.nz 0800 213 343.
FOR SALE
SELLING
SOMETHING? Have something to sell? Advertise in Farmers Weekly Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz
1113205-Electronic Registers:Layout 6
30/09/2010
Free Dummy Collar, LOOK! if required, with all NO GST PRICE INCREASE! InnoteksportDOG NZ is maintaining allorders current low prices
KEEP YOUR WORKING DOGS ON THE JOB * Model SD-1825 with up to 6 collars 1.6km range (1 mile) * Model SD-1225 with up to 3 collars - 1.2km range & SD-825 - 800 metre range
GREAT VALUE * All with tone and vibration options
SD-1825 with collar * 24 levels of correction -31 year warranty$685.00
2IC Analyst Assistant Manager Farm Manager Genetic Manager National Beef Performance Manager Regional Manager Sheep Breeding Opportunity Shepherd Shepherd/General
farmersweeklyjobs.co.nz Employers: Advertise your vacancy in the employment section of the Farmers Weekly and as added value it will be uploaded to farmersweeklyjobs.co.nz for one month or close of application. Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz
Prices include GST
GREAT VALUE
SD-1825 WITH 1 COLLAR $695.00 SD-1225 WITH 1 COLLAR $595.00 SD-825 WITH 1 COLLAR $495.00 EXTRA COLLARS $325.00 PRICES INCLUDE GST
sales@innotek.co.nz • Anti-bark training collars • Containment systems
For a free brochure call
0800 872 546
www.innotek.co.nz or Ph 0274 935 444
LK0094651©
RURAL SECTOR JOBS BOARD
SD-800 with 1 collar $535.00
* All collars and remotes rechargable and waterproof Extra collars $245.00
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classifieds@globalhq.co.nz – 0800 85 25 80
Classifieds
FARMERS WEEKLY – October 1, 2018
TESTIMONIAL I commenced advertising in the classifieds section of the Farmers Weekly end of July through to beginning of
Standard price $1690 (GST incl) Including tie down rail (as shown) $1990 (GST incl)
During this period I noticed an increase in calls especially on the day the paper was published. They were quality
Custom builds are available • Shipping costs additional if required
Deadline for booking ads – Wednesday midday Deadline for material – Wednesday midday Deadline for completed ads – Wednesday 5pm
ZON BIRDSCARER
DE HORNER
Phone: +64 6 357 2454
MOA MASTER
Proudly made in New Zealand
Quality you can rely on – GUARANTEED
Cattle Crush, Vet Crush, Auto Head Yoke, Sliding Gates.
TOWABLE FLAIL MOWER $3910 + GST
Heavy duty build means there is no weight limit allowing you to handle calves through to bulls without concern. Hot dipped galvanised for longevity. Self-catching and auto reset functions mean you will never miss! Efficient one man operation. Full range of options available. Call for a quote.
TOWABLE TOPPING MOWER $3570 + GST
FROM HERE...
LK0094471©
VETMARKER
LAMB DOCKING / TAILING CHUTE
With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)
T HI NK P R E B U I L T
CHILLERS &
FREEZERS
SOLID – PRACTICAL
udly NZ Madew Pro Since 1975
WELL INSULATED – AFFORDABLE
12 HP DIESEL MOTOR “ELECTRIC START”
Videos on website South Island - Stuart 027 435 3062
Phone: 06 323 0765 Email: classifieds@globalhq.co.nz FW Jobs: www.farmersweeklyjobs.co.nz
NEW HOMES
“WOOD SPLITTER” 50 TON
0800 227 228 www.combiclamp.co.nz
livestock@globalhq.co.nz– 0800 85 25 80
EARMARKERS
HOOF TRIMMER
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The most versatile sheep handler on the market. Hands free operation, good stock flow and portable. Weigh, dag, draft, vaccinate, feet - all in one pass! No air or power = no breakdowns! Modular - buy what you need, add more later.
electro-tek@xtra.co.nz
LK0093733©
STOP BIRDS NOW!
P.O. Box 30, Palmerston North 4440, NZ
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DEADLINES
w w w. e l e c t r o t e k . c o . n z
Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach
021 441 180 (JC) frigidair@xtra.co.nz
$3990 + GST
To find out more visit
www.moamaster.co.nz Phone 027 367 6247 Email: info@moamaster.co.nz
Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz
LK0094662©
Aaron West
LK0093237©
work opportunities.
Dimensions 1600w x 900d x 600h
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inquiries and as a result received good
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Introducing our new large flatdeck dog box
September 2018.
FOR FARMERS & HUNTERS When only the best will do!
Livestock
THIS SEASON’S CROP FIRST LIGHT WAGYU IS QUIETLY GROWING IN LINE WITH DEMAND FROM OUR DISCERNING NEW ZEALAND AND INTERNATIONAL CUSTOMERS.
THIS YEAR WE HAVE A LIMITED RELEASE OF HEALTHY, WAGYU DAIRY CALVES AVAILABLE TO PURCHASE.
• • • • •
90kg+ Calves to purchase Proven sustainable premium returns Guaranteed buy-back of finished cattle Producer group of NZ’s elite cattle farmers Bred and reared under strict Bio-security Protocols
NO
ANTIBIOTICS OR ADDED HORMONES EVER
Talk to us - 0800 4 Wagyu (0800 492 498) info@firstlight.farm www.firstlight.farm
...TO HERE
Livestock
FARMERS WEEKLY – October 1, 2018
Belted Galloways
30 Purebred 2-year heifers, empty 20 Purebred Yearling heifers
STOCK REQUIRED
1YR FRIES BULLS 220-270kgs
LK0094646©
1YR FRIES HERE STEERS 220-270kgs 220-250kgs 1 YR FRIES HERE HEIFERS
Sought after for breeding bulls for the dairy market
230-270kgs 1YR ANG
STEERS 2YR xBRED HEIFERS 450-550kgs 2YR STEERS
Phone: 027 505 1010
Ross Dyer 0274 333 381
ENTRIES CLOSING SOON
A Financing Solution For Your Farm E info@rdlfinance.co.nz
PROTECT YOUR FUTURE FLOCKS
ECZEMA TOLERANT
WAITEIKA HILL COUNTRY ROMNEYS RAMGUARD TESTING SINCE 1985 ***** RATING
* Robust functional sheep that survive * Dag and Condition Scoring
BREEDING ANGUS BULLS FOR HEIFER MATING YOU CAN TRUST Pinebank
Glanworth
60 Yearling Bulls by Private Treaty from October
35 Yearling Bulls by Auction 4th October – 12 Noon Viewing from 10.30am
CONTACT WILLIE Ph 06 372 7041 Email: falloon.waigroup@xtra.co.nz
CONTACT SHAUN Ph 06 376 8869 Email: Glanworthfarm@gmail.com glanworthangus
anguswaigroup.co.nz
ENTRIES CLOSE:
MON 29 OCTOBER 2018 WWW.THESHOW.CO.NZ // SARAH@BECKANDCAUL.CO.NZ
* No ewes worm drenched, dipped or vaccinated WormFEC™ * Monitoring Parasites
LK0094403©
www.dyerlivestock.co.nz
Genetically linked to Waimai & Kikitangeo Romney
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LIVESTOCK FOR SALE
FOR SALE
LIVESTOCK ADVERTISING LK0094664©
Keith Abbott Raglan 027 463 9859 www.waiteikaromneys.co.nz
livestock@globalhq.co.nz – 0800 85 25 80
Advertise your stock sales in Farmers Weekly
farmersweekly.co.nz
Your source for PGG Wrightson livestock and farming listings Beef
Sheep
Other
KAURI SPRING CATTLE FAIR
WAIROA CATTLE FAIR
Kauri Saleyards, Whangarei Friday 5th October 2018 12.30pm start Approx. 1000 Head, comprising of 150 2yr Strs 70 2yr Hfrs 450 1yr Strs 250 1yr Hfrs 80 A/B Wnr Strs & Hfrs For further information please contact Ian Munro – 0275 986 074 Mike Laing – 0275 986 736
Preliminary Notice Thursday 11 October @ 11am Entries include: A/c Tangihau Stn 200 1yr Angus Strs A/c Cricklewood Stn 150 1yr Angus Strs A/c Okare Stn 180 1yr Angus Strs A/c Te Tiki Stn 150 1yr Angus Strs A/c Pihanui Stn 45 1yr Angus Strs A/c Rosscommon 50 1yr Ang & Ang/Here Strs A/c Papuni Stn 70 1yr Ang & Ang/Here Strs A/c Mahurangi Stn 130 2yr Hereford Heifers 270 2yr Angus Heifers Grand opportunity to purchase large lines of well bred station cattle renown for their shifting ability Enquiries Ian Rissetto – 06 838 8604 or 0274 449 347 Mason Birrell – 06 838 7091 or 0274 967 253 Hamish Forrester – 0276 012 351
MORRINSVILLE INMILK SALE Wednesday 3rd October Venue: Morrinsville Saleyards: A/C Rockhill Jersey 47 Inmilk Jsy Heifers. BW 140, PW 126 16 Inmilk Jsy Cows (Recorded) Herd est in 1905. Complete replacement line from long established herd. Heifers A2 profiled, bred for conformation, dairy type and temperament. Come forward in excellent condition (once a day). TB C10, EBL free, BVD neg, Lepto vacc, Mbovis milk tested negative (closed herd). Peter Schnuriger – 0272 431 836
CA
N
LE CE
D
MORRINSVILLE 1YR HEIFER SALE Wednesday 3rd Oct (Sold after Inmilk Dairies) Venue: Morrinsville Saleyards: Approx 120 1yr Heifers A/C Client 62 1yr Frsn/ Frsn X Hfrs, BW 90, PW 92 (Avg 340kg) Enquiries to Andrew Reyland - 0272 237 092
Are you one tup ahead? ROMNEYS
The mainstay and back bone of our breeding operation. Over 40 years’ of high selection pressure under commercial conditions has put these rams on the map. Sheep that ‘hold it together’ during tough times and deliver predictable and repeatable performance.
ROMTEX
Bred out of our replacement stud Romney ewe hoggets (genetic gain) by robust and structurally sound high index Texel rams. Robust and meaty rams run under the same conditions as the Romneys and subject to the same strict culling standards.
SUFTEX
A nationally proven and predictable terminal ram. We understand and appreciate the need for culling/ selection pressure so have a strong focus on providing structurally sound rams with a focus on longevity.
YEARLING BULL SALES
For advice on your next yearling bull purchase visit:
pggwrightson.co.nz/yearlingsales
Freephone 0800 10 22 76 | www.pggwrightson.co.nz
Zandy Wallace P: 06 372 2551 M: 0226 580 680 E: zandyandcaroline@waiitiromneys.co.nz Helping grow the country
Tim Wallace P: 06 372 2654 E: wai_itiwal@hotmail.com
www.waiitiromneys.co.nz
LK0094518©
Key: Dairy
Livestock
SUDELEY GENETICS
PINE PARK RAMS
Vendor: E & K Zink Location: 363 Hydro Rd, Whakatane Date: Thursday 11th October 11am 250 Fr/FrX Herd BW83 PW65 99% RA Passionately farmed on the family farm (since 1966). A closed herd for the past 23 years. Breeding focus has been for fertility the last 10 years with fertility traits as high as the herd averages allow. Under cover in our Mobile Auction Facility
•
•
Approx 50 Angus Yearling bulls for Auction
Contact Andrew or Paul for more info Agents: Andrew Gordon 027 4872044 Paul Collins 027 3048994
40 x month old ID hfr calves, min Bw 100, $130. Matt 027 601 3787
www.carrfieldslivestock.co.nz
80 x Fsn Aut bulls, 160kg/lw, $700. Monty 027 807 0522
HEREFORD YEARLING BULL SALE
260 x in-milk dairy herd, XB, LIC bred, BW 58, PW 88, R/A 59%, total herd, $1500. Stephen 027 453 8769
LK0093724©
October 11th, 2018, 1pm
LIVESTOCK ADVERTISING
•
40-50 x ylg Hfd X or Angus X strs, 260kg/lw. Jack 027 823 2373
•
150 wnr Jsy bulls. Noel 027 588 7632
•
60 - 80 - XB dairy ylg hfrs, BW 115+ avge, top money. Stewart 027 270 5288
•
100 x A2/A3 ID ylg dairy hfrs ID, Monty 027 807 0522
Are you looking in the right direction?
ENQUIRIES: Rob Burrows 027 263 3582 Rob Stokes 027 757 1673 Helen Molloy 027 203 3854 RURAL LIVESTOCK: Anthony Cox 027 208 3071
“You mean a rose?”
Catalogue online at www.rurallivestock.co.nz
EARN FARM SOURCE REWARD DOLLARS ON ALL FARM SOURCE LIVESTOCK PURCHASES & SALES*
PHONE NIGEL RAMSDEN 0800 85 25 80
“That’s great! What was the name of that clinic?” Fred went blank. He thought and thought but couldn’t remember. Then a smile broke across his face and he asked, “What do you call that flower with the long stem and thorns?”
ON OFFER: 80 Hereford Yearling Bulls 10 FI Speckle Park, Hereford Cross Yearling Bulls
0800 548 339 | nzfarmsource.co.nz/livestock
SALE TALK Two elderly couples were enjoying friendly conversation when one of the men asked the other, “Fred, how was the memory clinic you went to last month?” “Outstanding,” Fred replied. “They taught us all the latest psychological techniques - visualisation, association - it’s made a big difference for me.”
BEECHWOOD, RICHON & WOODBURN HEREFORDS 2pm Tuesday 9th October 2018 136 Maskells Road Amberley
LIVESTOCK REQUIRED
(No outside trading or grazing cattle farmed)
Edward Sherriff 06 327 6591 021 704 778
LK0093719©
40 x 2yr Angus bulls, closed herd, 600kg/lw, all tested, $2400. Colin 027 646 8909
SIL Carcass Scanned FE Testing
LK0094623©
LIVESTOCK FOR SALE
•
Enquiries to your local Livestock Agent or Andrew and Anna Laing 027 253 5625
FE Coopworth FE Romney x Coop Texel x Coopworth Suffolk Suftex Texel x Poll Dorset
Dairy In-Milk Auction
•
546 Selwyn Lake Road, Irwell, Leeston
FARMERS WEEKLY – October 1, 2018
LK0094226©
livestock@globalhq.co.nz – 0800 85 25 80
LK0094545©
34
“Yes, that’s it!” He turned to his wife. “Rose, what was the name of that clinic?”
sale day
T&Cs apply. See nzfarmsource.co.nz/rewards
*
Mon 5 Nov, 2018 Tuakau Saleyards • Sheep Industry Award Winner
FOR SALE
An Invitation to Open Days
40 x G3 Xbred yearling bulls
In association with NZ Farmers Livestock you are invited to a number of well-known and successful Ram Studs throughout the Waikato and King Country for your interest and perusal.
Average BW 120 Average weight 310kg Ideal for heifer mating
Please note this is a self drive event, you are welcome to visit these farms at any time during the open days and times.
www.nikaucoopworth.co.nz
Northern King Country – Tuesday 9th October – 9.00am to 12 noon Awaroa Perendale Phillip Brandon 07 873 6313 Puketotara Romney Ken Haywood 07 877 8586 Raupuha Pere/Romdale Russell Proffitt 07 877 8977 Herangi Cheviot/Pere John Spellman 07 877 8401 Awapiko Perendale Neil Langlands 07 896 8660
For more info, contact Chris (Spags) Martelletti 027 497 3802 or 07 544 1121. E: chris.martelletti@nzfll.co.nz
R1 Yr Dairy Heifers Friday 5th October 12 pm Entries to date 120 x Fr FrX + Jsy Heifers Comprising: 88 x Fully Recorded Fr FrX Heifers Line averages up to BW 143 PW 154 LK0094574©
For further information please contact: Brent Bougen 027 210 4698 NZ Farmers Livestock (Stud Stock) Caroline Keyte 07 889 1671 Or any of the listed Stud Breeders
LK0000000©
These dates are definitely not to be missed if you are contemplating looking for new rams. You will get FE Tolerance at most studs PLUS Fertility, wool, survival, type.
On the market now for Forward Delivery, a Bay of Plenty herd that ticks all the boxes and stands out above the rest. This LIC (for 38 years) Friesian herd of 575 cows has been faithfully farmed by diligent owners who are retiring next year. Buy with confidence from a M Bovis-safe farm, boundered by the ocean and no neighbouring livestock, the herd is status C10, EBL tested free, Lepto inoculated, and Dry-cowed/teat-sealed. Producing 305,450 milk solids last year on System 5, it equates to: 580ms/cow; 2000ms/ha or 2.75/cow/day. SCC = 153,000. Tested quarterly, the herd averages BW100/45; PW116/56; RA99%. Traditionally AB to LIC Friesian for 6 weeks, tailed with Friesian, out 25/12. (2-3 bred bulls each year go to LIC). Physically, these cows are capacious, tidy-uddered and quiet-temperament, and are coming back into peak condition after calving and a wet winter.
09 2333 230
MORRINSVILLE SALEYARDS
RARE OPPORTUNITY: TOP LIC FRIESIAN HERD
Southern King Country – Tuesday 10th October – 12 noon to 4pm Brookbank Romney Chris Brears 07 896 6102 Shian Romdale/Romney Rob Sherson 027 230 8230 Romani Coopworth Ross Richards 07 895 7144
Please email: caroline.keyte@nzfll.co.nz to register your attendance and request a map detailing farm addresses.
Andrew Noble-Campbell, Pregnancy Scanner
30 x AB Bred Xbd + Jsy Heifers (unrecorded) For all enquiries or further entries Bryan Sweeney 027 869 2620
LK0094629©
07 888 1703 07 825 4925
NZ Farmers Livestock recommend that you put these two dates on your calendar and join us on the Waikato, King Country Ram Walk.
• Highly FE Tolerant - 34 years testing. • Robust genetics with a focus on structure, longevity and efficiency. • Farmed in a tough environment for parasites, viral pneumonia and Facial Eczema. • No drench ewe flock - Consistently weaning 175%. • Hoggets grown on grass with minimal drench. Weaning 120%. • Selecting for performance under pressure with low input.
Contact Bill Sweeney Phone 027 451 5310 or 07 889 5608
Stud Farms Open Days as follows:
Waikato – Monday 8th October – 10am to 3pm ARDG Romney Craig Alexander Waimai Romney Alistair Reeves
Maternal Trait Leader for Parasite Resistance
LK0094640©
ATTENTION RAM BUYERS
Nikau Coopworth bloodlines are consistent high performers at scanning time; notably in the more challenging seasons. Results in the top 25 %
Livestock
FARMERS WEEKLY – October 1, 2018
NZ’s No1 F.E. Meat Breed Flock * SIL * Parasite Testing Well Muscled - Fast Growth. Ph: David 027 2771 556 PAKI-ITI ROMNEY
NUMBERS TELL A STORY • 154 clients purchased or leased Paki-iti rams last year
8th Annual Spring Sale
Friday 5th October Commencing 10.30am Approx 950 Straight Beef Bred Ylg Steers Wednesday 10th October Commencing 10.30am Approx 500 Straight Beef Bred Ylg Heifers 350 Straight Beef Bred 2yr Steers 70 Beef 2yr Heifers
Advertise in Farmers Weekly
Enquiries to: Nic Denton (PGW) – 027 4344 094 Jon Waghorn (HRL) – 027 4620 121
BUT BREEDING IS MORE THAN NUMBERS
paki-iti.co.nz
Sterndale, Totara Valley Wednesday 10 October 2018 1pm
LIVESTOCK ADVERTISING
CHEVIOT SPRING CATTLE SALES - CHEVIOT SALE YARDS
Stewart Morton 06 328 5772 • Andrew Morton 06 328 2856 RD 54 Kimbolton, Manawatu • pakiroms@farmside.co.nz
yearling bull sale Tuesday 9th October 2018 – 12.30pm 341b Matauri Bay Road, RD1, Kaeo, Northland
62 Low Birth Weight Lots: 17 Autumn Born Bulls & 45 Spring Born Yearlings The stud herd of 400 females is run under commercial conditions on hill country. Matauri Angus has established itself as a leading provider of NZ based genetics in the Australasian industry. Matauri genetics have had phenomenal success in a wide variety of environments having been used in over 200 stud herds. Matauri Reality 839 alone has had 4500 progeny analysed by Breedplan. Recently Matauri Reality 839 set a new NZ record with a single purchaser price for a yearling bull at $27,000. His 3 sons in this sale averaged an incredible $16,833. Two year old sons of Matauri Sires have sold for up to $47,000. CONTACTS Cam Heggie Bruce Orr Neil Miller
Call Nigel
FRIDAY 5th OCTOBER 2018 1pm, on-farm Fairlie
0800 85 25 80 livestock@globalhq.co.nz
027 501 8182 027 492 2122 027 497 8691
Tom Bayly Colin Maxwell
027 415 4125 09 405 0357
For more info please email colin@matauriangus.com or visit www.matauriangus.com
Photo: Stud Ewes Glenafric - June18
Meadowslea F540 - ranked 3rd for Short Gestation (BLNZ Dairy Beef Progeny Test July 2018)
Top 10% breed – Calving Ease, Short Gest, Low Birth Wt, Days to Calve, Scrotal, Milk, Rib and Rump Fat
50 2yr Angus Bulls Selected for mating Cows and Heifers
60 1yr Angus Bulls
LK0094196©
Offering:
WAIDALE RAMS ON FARM SALE In conjunction with Agonline.co.nz
Where you can buy some of the best rams in the country! (Romneys, South Downs, South Suffolks) Bring your surf board as well!
Top picks included from leading bloodlines Featuring Low birth weights with calving ease, suitable for both Beef and Dairy Strong NZ Bloodlines with powerful maternal & fertility traits and exceptional rib & rump fats All bulls tested clear for EBL and BVD and vaccinated
Vendor: D S Giddings 03 685 8027 www.meadowslea.co.nz Auctioneers: PGW John McCone 027 229 9375 6% purchasing commission to all other companies
28 November at 2.00pm 1306 Mt Cass Rd, Waipara
ike@waidalerams.co.nz | www.waidalerams.co.nz 03 6148388 or 0274427746
LK0094510©
Visit to view our breeding programs
MEADOWSLEA ANGUS Spring Bull Sale
PAKI-ITI ROMTEX
It is about longevity, structural soundness, constitution and then the numbers.
46 Yearling Bulls
www.sternangus.co.nz
Tuesday 9th October, 11.15 Heifers, 12.00 Bulls Venue: Frankton Saleyards Comprising: 800 Calves 150 Aut Heifers 150 Aut Beef Bulls 300 Frsn Bull Calves 100 Spring Beef Bulls 100 Spring Beef Heifers Enquiries to: Tony Blackwood (PGG) – 0272 431 858 Gareth Price (NZF) – 0274 777 310
• 100% of Romney and Romtex sale rams are 5k DNA tested for greater accuracy – a first for the NZ sheep industry • 150%+ lambing, unshepherded on steep hill country rising up to 637m asl • 11 years of growth rate and meat yield progeny trials • 98 years of breeding rams for the NZ sheep industry
LK0094561©
LK0094648©
STER N ANGUS
SINCE 1937
LK0094345©
Medium size and docile Fertile – Polled – Free calving High yielding tender carcass
FRANKTON DAIRY BEEF SALE
35
A r v i d s o n W I L T S H I R E S - Pure Meat, No Shearing
New Zealand Red Poll
Proven as a pure breed Proven as dairy beef sires Proven in NZ since 1898 Breeders New Zealand wide www.redpollcattle.co.nz See us on Facebook
livestock@globalhq.co.nz – 0800 85 25 80
MARKET SNAPSHOT
36
Market Snapshot brought to you by the AgriHQ analysts.
Suz Bremner
Rachel Agnew
Mel Croad
Cattle
Reece Brick
Sheep
BEEF
Deer
SHEEP MEAT
VENISON
Last week
Prior week
Last year
NI Steer (300kg)
5.90
5.90
5.70
NI lamb (17kg)
8.45
8.45
7.10
NI Stag (60kg)
11.50
11.50
9.70
NI Bull (300kg)
5.40
5.50
5.50
NI mutton (20kg)
5.10
5.20
4.20
SI Stag (60kg)
11.40
11.40
9.70
NI Cow (200kg)
4.35
4.45
4.30
SI lamb (17kg)
8.15
8.25
7.00
SI Steer (300kg)
5.85
5.90
5.35
SI mutton (20kg)
5.10
5.20
4.25
SI Bull (300kg)
5.10
5.20
5.10
Export markets (NZ$/kg)
SI Cow (200kg)
4.25
4.30
4.25
UK CKT lamb leg
9.07
9.16
9.30
US imported 95CL bull
6.36
6.44
6.89
US domestic 90CL cow
6.54
6.73
6.71
Slaughter price (NZ$/kg)
Export markets (NZ$/kg)
6.0
9 8 6
7.0 6.0
11 South Island lamb slaughter price
9.0 $/kg CW
South Island steer slaughter price
7.0
6
6.0
Oct
Dec
Feb
Apr
Jun
2016-17
5-yr ave
Aug
2016-17
2017-18
Last week
Prior week
Last year
Coarse xbred ind.
3.30
3.37
3.08
37 micron ewe
3.40
3.45
30 micron lamb
Dairy
6.5
420
$/tonne
470
6.0
Dec-17
Feb-18 Sept. 18
Apr-18
Jun-18 Sept. 19
Sep-17
Prior week
vs 4 weeks ago
WMP
2745
2695
2850
SMP
2030
2035
2075
AMF
5330
5330
5700
Butter
4270
4290
4650
Milk Price
6.69
6.69
6.70
-
Nov-17
570
570
477
3.25
Super
304
304
297
-
DAP
755
755
702
Top 10 by Market Cap Company
Jan-18
Mar-18
May-18
Jul-18
6.11
Fisher & Paykel Healthcare Corporation Ltd
14.85
16.44
11.92
The a2 Milk Company Limited
11.55
14.62
7.66
Meridian Energy Limited (NS)
3.21
3.42
2.75
Spark New Zealand Limited
3.93
4.10
3.28
Ryman Healthcare Limited
13.64
14.09
10.27
Fletcher Building Limited
6.49
7.96
5.74
Mercury NZ Limited (NS)
3.34
3.45
3.08
Contact Energy Limited
5.81
5.96
5.15
Port of Tauranga Limited (NS)
5.24
5.27
4.74
5pm, close of market, Thursday YTD High
YTD Low
The a2 Milk Company Limited
11.550
14.620
7.660
420
Comvita Limited
6.390
9.210
5.590
400
Delegat Group Limited
10.250
11.000
7.510
Foley Family Wines Limited
1.450
1.610
1.400
380
Fonterra Shareholders' Fund (NS)
4.900
6.660
4.800
Livestock Improvement Corporation Ltd (NS)
0.700
3.000
0.700
New Zealand King Salmon Investments Ltd
2.700
2.990
1.840
340
PGG Wrightson Limited
0.610
0.720
0.560
320
Sanford Limited (NS)
8.030
8.500
7.350
Scales Corporation Limited
4.940
5.000
4.350
SeaDragon Limited
0.002
0.006
0.002
Seeka Limited
6.000
7.010
5.800
Synlait Milk Limited (NS)
10.770
13.530
6.260
T&G Global Limited
3.050
3.300
3.000
360
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
$/tonne
2700
YTD Low
440
300
2800
7.49
Listed Agri Shares
350
2900
YTD High
7.35
Sep-18
WAIKATO PALM KERNEL
3000
Close
Auckland International Airport Limited
Close
Sep-17
WMP FUTURES - VS FOUR WEEKS AGO
NZ average (NZ$/t)
Company
* price as at close of business on Thursday
2600
-
Urea
CANTERBURY FEED BARLEY
$/tonne
Last price*
Aug 2017-18
Last year
370 320
Aug-18
DAIRY FUTURES (US$/T) Nearby contract
Jun
Prior week
CANTERBURY FEED WHEAT
7.0
Oct-17
Apr 2016-17
Last week
Grain
Data provided by
MILK PRICE FUTURES
5.5
Feb
FERTILISER
(NZ$/kg) Jun
Dec
Fertiliser
Aug 2017-18
WOOL
4.5
Apr
Oct
5-yr ave
5.0
Feb
8 7
5-yr ave
Dec
9
8.0
4.0
Oct
10
5.0
5.5
4.0
South Island stag slaughter price
12
$/kg CW
$/kg CW $/kg CW
10
7
5.0
6.0
Last year
11
4.0
4.0
Last week Prior week
North Island stag slaughter price
12
5.0
4.5
$/kg MS
Slaughter price (NZ$/kg)
8.0
5.5
US$/t
Last year
North Island lamb slaughter price
9.0 $/kg CW
North Island steer slaughter price
Last week Prior week
$/kg CW
Slaughter price (NZ$/kg)
Ingrid Usherwood
Tegel Group Holdings Limited
1.230
1.240
0.810
S&P/NZX Primary Sector Equity
17021
17682
14417
S&P/NZX 50 Index
9286
9376
8059
S&P/NZX 10 Index
8974
9212
7640
250
Oct
Nov Dec Latest price
Jan Feb 4 weeks ago
Mar
200
Sep-17
S&P/FW PRIMARY SECTOR EQUITY
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
17021
S&P/NZX 50 INDEX
9286
S&P/NZX 10 INDEX
8974
37
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018 NI SLAUGHTER STEER
NI SLAUGHTER MUTTON
SI SLAUGHTER STAG
($/KG)
($/KG)
PRIME ANGUS-HEREFORD HEIFERS, 520-530KG, AT CANTERBURY PARK
($/KG)
($/HKG LW)
5.90
5.10
11.40
3.08
Fickle spring weather affects store markets
DON’T STOP HERE... If you love the information you get from these pages, you will love AgriHQ’s livestock reports.
B
UYERS are competitive on good quality cattle and are prepared to tour the sale yards for them. However, a grass market is needed before demand for off types and lesser bred lines comes to fruition and to date that has been lacking as spring continues to throw a bit of winter back at the countryside.
LivestockEye
We create transparency for the industry with these independent, objective reports providing full sale results and informed commentary covering 10 saleyards across NZ that are emailed directly after the sale.
RUGGED UP: Stock at the Feilding sale last Monday.
kg, and Devon-Hereford, 332-373kg, $2.98-$3.10/kg. Beef-dairy lines were strong, with Angus-Friesian, 316-358kg, lifting to $2.88-$3.03/kg, while FriesianJersey, 462-494kg, made a premium on lighter lines, earning $2.66-$2.87/kg, with 381kg at $2.56/kg. Two-year heifers were solid as Angus-Hereford, 291kg, returned $2.99/kg, and Hereford-Friesian, 315401kg, $2.81-$2.98/kg. One-year steers were steady for the majority with 165kg Angus-cross and 157kg beef-cross making $3.67/kg and $3.50/kg respectively. Hereford-cross, 171-248kg, were also steady at $3.30$3.62/kg. Hereford-Friesian, 240264kg, lifted to $3.54-$3.67/kg, with a line of fifteen, 237kg, catching buyer’s attention and earning $1000, $4.22/kg.
Dollar Watch
This Prior Last ANZ Bank believes higher United NZD vs week week year States interest rates will slow the USD 0.6616 0.6683 0.7212 economy quicker than people EUR 0.5683 0.5693 0.6039 think, leading to just one Fed AUD 0.9170 0.9163 0.9086 rate rise next year. GBP 0.5059 0.5103 0.5556 The path for the kiwi dollar Correct as of 9am last Friday against the US dollar will still be lower but not to the extent it would be if those Fed rates kept rising. The kiwi’s level against the big dollar might not run in a straight line, ANZ senior economist Phil Borkin said. There seems full agreement after last week’s Fed rate rise that there will be another one in December. Fed indications are for three more rises next year and the market consensus is two rises. “We’re a bit more dovish. We think the tightening there will get traction and the economy will cool down and not need more than one rise next year,” Borkin said. A softer US economy generally means a softer world economy, which translates to a lower kiwi dollar. The Fed funds rate is already above NZ’s OCR and the Reserve Bank said last week the rate is expected to stay where it is until into 2020 and again that the next move could be up or down. ANZ projects a Fed rate of 2.75% against the OCR of 1.75% by June next year. Its call for the kiwi dollar at the same time is US$0.61, from a forecast 0.62 late this year. Alan Williams
Heifers were strong and Angus & AngusHereford, 197kg, fetched $3.54/kg, whilst Angus-cross, 151kg, managed $3.87/ kg. 147kg Murray Grey-cross were solid at $3.95/kg, and beef-dairy lines, 213229kg, lifted to $3.69-$3.80/kg. AUCKLAND AUCKLAND A run of good spring weather brought more buyers to PUKEKOHE on Saturday 22nd September, with prices buoyant across all classes. Heifers were the feature in the prime pens as medium types made $3.05$3.16/kg, with lighter steers earning $3.00-$3.08/kg. Hereford bulls proved popular and at 370kg sold for $3.51/kg.
Livestock Insight
Every week, we explain the context of the current market situation, drivers which are impacting the livestock markets and what to expect in the coming week.
Continued page 38
Sharemarket briefing IT WAS a big week for central banks this week after the Federal Reserve (Fed) increased rates and maintained its plans to steadily tighten monetary policy. Following the Fed, the Reserve Bank of New Zealand (RBNZ) kept the Official Cash Rate (OCR) unchanged at 1.75%, as expected, saying the outlook for the economy was little changed. In addition, we saw business confidence rebound this month after reaching a decade low in August. The local share market was more subdued this week, after reaching an all-time high last Friday. Within the index, Auckland Airport closed at a two-year high while Metlifecare, Mainfreight and Precinct Property all closed at records. Friday marked the last day of the third quarter and, at the time of writing, the index was up 4.6% for the quarter, following a 7.5% gain in the second quarter. In economic news, NZ posted its largest monthly trade deficit on record in August. The trade deficit stood at $1.484 billion in August, missing forecasts for a shortfall of $925m following the revised deficit of $196m in July. Market commentary provided by Craigs Investment Partners
Livestock Outlook
For those who want to see and understand forecasting, this monthly report projects farmer operating prices six months ahead and supports these prices with analysis of supply/demand, procurement factors, key export markets and exchange rate effects.
INDEPENDENT • OBJECTIVE TRUSTED • WORTHY Discover how we can help you keep up to date with market conditions.
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NORTHLAND NORTHLAND KAIKOHE saw a turning of the tide for cattle demand last Wednesday, as more people gathered on the bench for the 500 head yarding. The upwards trend was felt across all classes of store cattle and good two-year steers lifted to $3.00-$3.15/kg, with dairycross lines just shy of that. Lesser lines that have been hard to sell made $2.70$2.75/kg. That flowed through into a small dairy-beef heifer section with most trading around $2.85/kg. Yearling prices also improved and a small yarding of lighter Angus and beefFriesian steers made $3.30-$3.60/kg. Bull prices firmed and Angus and exotic-cross earned $3.10-$3.35/kg. Even the heifers found buyers and medium beef-Friesian reached $3.10-$3.20/kg with a line of light Hereford-Friesian up to $3.50/kg. Crossbred managed $2.85-$2.90/kg. Cow prices have been consistent to date but were the one section to soften. In-calf dairy cows made $2.13/kg and empty lines, $1.80-$1.95/kg. A line of young, empty Angus cows sold for $950, while Hereford-cross cows with calvesat-foot made $1200 per unit. Another smaller yarding was on offer at WELLSFORD last Monday, with almost all lines not exceeding eleven head. In the two-year pens Angus-cross steers, 396-430kg, earned $3.09-$3.12/
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38 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018
COUNTIES COUNTIES A small yarding of store cattle was presented at TUAKAU last Thursday, and with recent rain fuelling spring grass growth, the market was very firm, Karl Chitham of Carrfields Livestock reported. The sale drew a good bench of buyers, including several new faces, and bidding for quality cattle was keen. The offering included 407kg Hereford-Friesian steers, which traded at $3.11/kg. R2 Angus, 369kg, made $3.05/kg, with Hereford-cross, 336kg, earning $3.18/kg. Hereford-Friesian yearling steers, 278kg, sold at $975 and 175kg, $720. Autumn-born Hereford-Friesian weaner steers, 135kg, fetched $690. Heifers were in short supply. Red-bodied Hereford-Friesian, 436kg, traded at $3.00/kg, with 297kg Hereford-Friesian making $1020 and 237kg Angus, $780. There was little of note in the weaner section. Last Wednesday’s prime sale also drew a small yarding and the market for most classes reflected recent schedule changes. Prime steer prices eased by 5c/kg as heavy types traded at $3.07-$3.18/ kg, medium $3.00-$3.07/kg, and lighter $2.89-$2.96/kg. Prime heifer numbers were light and the market was topped by 570kg Angus-cross, which made $3.16/kg. Other good-medium heifers fetched $3.00-$3.04/kg. Well-conditioned Friesian cows sold at $1.94-$2.06/kg, with medium earning $1.78-$1.86/kg and lighter boners $1.40-$1.69/ kg. Good beef bulls made $2.84-
$3.01/kg and Jersey, 340-370kg, $2.00-$2.20/kg. Lamb prices eased slightly at last Monday’s sheep sale. The best of the prime lambs made $207, with other good lambs selling from $175. Medium types returned $155-$178 and light $131-$148. The ewe market was strong as heavy types fetched $200-$225, medium $165-$179 and light $89-$114. At the feeder calf sale, the best of the HerefordFriesian bulls sold up to $300. WAIKATO Numbers swelled to just over 1200 at FRANKTON last Wednesday, with quality throughout the yarding mixed. Two-year steers were steady with Hereford and Herefordcross steers as 405-437kg, made $3.06-$3.19/kg, and HerefordFriesian, 441kg, $3.11/kg. Heifers were similar with Hereford-cross, 358-404kg, steady at $3.02-$3.07/ kg, though Hereford-Friesian, 340411kg, softened to $2.94-$3.04/kg. The majority of yearling steers sold on a lifting market and Hereford-cross, 207-263kg, reached $3.26-$3.55/kg and 301336kg, $3.05-$3.15/kg. AngusFriesian, 191-317kg, earned $3.28-$3.38/kg, and HerefordFriesian, 265-311kg, $3.28-$3.49/ kg. However Angus-cross eased with 368-372kg at $2.96-$3.06/ kg, and 191-270kg, $3.28-$3.33/ kg. Most Angus-Hereford heifers, 212-316kg, traded at $3.00-$3.07/ kg, though three, 292kg, caught buyer’s attention and sold for $3.30/kg. Hereford-Friesian, 211309kg, lifted to $3.27-$3.45/kg. A consignment of Hereford bulls, 281-297kg, were purchased for breeding at $1230-$1370, $4.38-$4.61/kg, while Friesian bulls, 264-347kg, had varied returns of $2.80-$3.17/kg. Hereford-Friesian were sought after in the autumn-born weaner pens and steers, 117kg, returned $675, and 119-138kg bulls traded at $640-$690. Heifers, 101-129kg, managed $470-$575. The prime market was steady to easing for most and steers, 522577kg, all traded at $2.97-$3.04/ kg. Beef-cross heifers, 426-540kg, were steady at $2.89-$3.16/kg, with Hereford-Friesian lines varied as 420-451kg softened to $2.88-$3.00/kg, whilst 471-507kg were solid at $3.11-$3.13/kg. Good Friesian bull calves were
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steady at $148 with medium and small lifting to $120 and $70. Hereford-Friesian eased for good types to $300, while medium and small lifted to $230 and $150. Heifers of same breeding were harder going at $100 for good, medium $50 and small, $35. BAY OF PLENTY BAY OF PLENTY A temperamental spring is upsetting demand for store cattle nationwide, including RANGIURU last Tuesday. A small yarding of two-year cattle had mainly highs as Hereford and Hereford-Friesian steers, 433-487kg, earned $2.91$3.02/kg and four Charolais heifers, 470kg, made $2.94/kg. Lighter Hereford heifers also sold well at $2.99/kg, and 324-351kg Hereford-Friesian, $3.28-$3.30/kg. The quality lines of HerefordFriesian yearling steers met solid demand but lesser lines struggled. Highlights included HerefordFriesian, 250-311kg, $3.47-$3.60/ kg, and 196kg, $810-$820, $4.13$4.18/kg. A line of 19 Friesian, 241kg, sold well for what they were at $2.84/kg. Buyers were very selective on heifers and Angus, 185-212kg, made $575-$660, $3.11/ kg. Hereford-Friesian of similar weight managed $3.53-$3.58/kg, with AngusFriesian at $3.30/kg. The bull pens featured small lines with no consistency between pens. Hereford, 285kg, managed $3.96/kg, but other lines were well below $3.00/ kg. Autumn-born cattle followed a similar pattern. Prime cattle prices either held or improved. Good steers made $3.06-$3.10/kg, and beef-Friesian heifers, 460-510kg, $3.00/kg. A line of young Angus-Friesian cows reached $2.77/kg while boners were variable. Prime lambs sold well at $133-$202.50, with stores earning $90-$105.50.
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Boner cows were variable and lighter sorts traded down to $1.58/kg, though the better types attracted $1.85/kg. There was $1000 difference between the top line of cows with calves-at-foot as they traded at $780 and $1780. The hint of grass growth was enough to increase demand for store cattle and medium two-year steers earned $3.14-$3.19/kg, with heifers trading at $2.95-$3.05/kg or $880-$1200. 18-month steers made very similar values as the heifers. In the younger pens medium R1 steers fetched $940-$950, and smaller crossbred, $470-$770. Heifers sold for $550-$740 and weaners, $400-$560.
TARANAKI TARANAKI A big month of cattle sales at TARANAKI finished
with an 1150 head yearling and autumn-born fair last Wednesday. The big volume meant buyers could afford to be selective and prices did ease on recent levels. Despite good weights bids past $1000 for steers were a rarity with just a few lines achieving that. Below that level more buyers entered the market, and $/kg prices increased as the weight decreased. Hereford-Friesian steers, 262-285kg, made $3.40$3.53/kg, while 222-236kg reached $3.77-$3.83/kg, with one line even up to $3.98/kg. Heifers had a better day than their older sisters the previous week. An outstanding line of 422kg Simmental-Charolais topped the whole sale at $1350, $3.20/kg, with 330kg Speckle Park making $1200. For most beef-Friesian ranges of $550-$720 and $750-$880 were common, with prices around $2.95-$3.10/kg popular. The autumn-born pens lacked quality, especially in the bull pens. Heifer quality was better and Hereford-Friesian, 133-142kg, fetched $500-$600. POVERTY BAY POVERTY BAY With most of the region in the middle of docking, it was little surprise to see next to nothing offered up at MATAWHERO. Prime lambs were the main source of action. The heaviest pens were $180.50-$190, whereas $154$170 covered the middling types, rounded out at $110-$141. Prime ewes were sold in three pens, all within the $121-$161 range. A very small line of light ewes with lambs-at-foot were $70 all counted. HAWKE’S BAY HAWKE’S BAY STORTFORD LODGE sold the first line of store new season lambs nationwide last Wednesday, while two weeks of larger sales meant a tidy-up round for store cattle. Last Monday a good size yarding of 2950 sheep were in, with just over 2000 of these lambs. Each pen was scrutinized as teeth cutting becomes relevant. The market was strong for most,
though very heavy male and ewe lambs eased. Top male lambs made $225-$231, with other very heavy types easing to $215.50$216. Heavy males were steady at $190-$205, and very good, $173$180.50. Very heavy ewe lambs softened to $169-$191.50, with good to heavy types up to $147$160. The ewe market had mixed results as very heavy type’s maintained levels of $180-$212.50, while heavy ewes eased to $148$167.50. Good ewes lifted to $138-$146, as did light-medium to medium to $110-$125. Very heavy two-tooth ewes traded at $168. Another very small offering of cattle were penned and the only line of over two head were nine Angus heifers, 542kg, which earned $3.06/kg. The store sheep sale was small but had plenty of talking points. A line of 23 new season lambs heralded the start of the season and sold for $128.50. Another big ewes with lambs-atfoot section brought a big bench of buyers to the rails and with one particularly dominant prices lifted $6-$12. Medium ewes with older single lambs made $125 all counted, while the top multiple lines sold for $118-$124 and second cuts, $114.50-$116. Store lambs just nudged over 1000 head and prices managed to hold. One line of well-bred ewe lambs made $193, while 60% of the yarding came from one property at Mahia. Two lines of cryptorchid made $143-$161, with most mixed sex trading at $130$160 on a steady market. In contrast to sales over the past two weeks the cattle pens housed a multitude of mixed bred cattle, with dairy blood prevalent. Despite the yarding there were more people in the rostrum than the previous week and better bred cattle sold well, though lesser lines struggled. Traditional two-year steers sold on a steady market as Angus, 471kg, earned $3.58/kg, and Hereford & Angus-Hereford, 427kg, $3.65/kg. Friesian, 439459kg, made $2.46-$2.53/kg. Four lines of heifers were penned and varied from Angus & Angus-cross, 328kg, $3.26/kg, down to Friesian, 484kg, $2.61/kg. Friesian bull prices firmed as 427-489kg fetched $3.22-$3.29/kg. Chatham’s cattle were offered in the yearling pens and DevonHereford steers, 196kg, sold for $4.11/kg. Simmental-Hereford earned $3.82-$3.99/kg for 280316kg. Heifer volume was low and beef-cross and Angus, 222-250kg, traded at $3.40-$3.48/kg to be a highlight, though were bettered by a line of five Angus, 308kg, at $1040, $3.38/kg. The bull section offered up an array of breeds and prices with a heavier line of Friesian bulls, 327kg, making $990, $3.03/kg, though 261kg gained 30c/kg to earn $3.33/kg. MANAWATU MANAWATU A big yarding of yearling cattle were the feature at RONGOTEA last Wednesday, with the calf pens also showing no lightening of volume, New Zealand Farmers Livestock agent Darryl Harwood reported. Dairy cows continue to flow in also and in-milk Friesian cows made $880 and in-calf Jersey
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heifers, $1100. Boner Friesian, 375-485kg, earned $1.84-$1.86/kg and crossbred, 335kg, $1.19/kg. Buyers sought out quality in the two-year pens and good Hereford-Friesian, Angus-cross and crossbred steers, 405-480kg, all made $2.80-$2.95/kg. Friesian, 435kg, earned $2.62/kg. Bull prices were also more consistent and Hereford-Friesian, 407-490kg, returned $2.80-$2.97/kg, while Jersey, 530kg, reached $2.26/kg. Good heifers made $2.95/kg, but lesser dairy-cross only reached $1.88-$2.30/kg. Buyers were selective on a big yarding of yearling cattle with a price ceiling in place. Top dollar for steers was $850 for 290kg Belgium Blue-cross, with 335kg Hereford-Friesian only making $810. Lighter lines of same breeding however pushed to $3.42/kg. More interest in bulls provided a competitive environment. Friesian, 265327kg, made $2.43-$2.83/kg, and Hereford-Friesian, 290kg, $2.83/ kg. Jersey and crossbred were well off that pace. Heifer quality was variable and a line of 397kg Hereford-Friesian made $1105, while Angus-cross, 306kg, earned $950. Lighter lines exceeded $3.00/kg. A small weaner section had Hereford-Friesian steers, 135kg, at $570, and heifers, 112-128kg, $480-$550. Bulls of same breeding and 120kg fetched $490, while Friesian, 121-157kg, made $500$545. Friesian bull calf prices eased though demand was still strong for beef-Friesian lines. Friesian made $80-$165, while good Hereford-Friesian returned $150-$275. Smaller calves fetched $80-$140 and beef-cross sold for $80-$165. The top HerefordFriesian heifers made $90-$165 and smaller, $60-$80. Angus-cross earned $75-$175. The exodus of last season’s lambs from traders continued at FEILDING last Monday. Nearly 6000 went under the hammer with prices softer to begin with but a lift in demand meant the sale finished on a steady market. Big line sizes again featured, especially in the mixed sex pens where 70% of the lambs were. The majority were very heavy types and sold for $190-$198, with top lines up to $203-$220. Medium types eased to $160-$178 range, with very heavy males doing the same at $185$206. A fine week of weather to dock boosted ewe volume and one buyer dominated. Very heavy ewes pushed to $180-$180.50 with good lines steady at $135-$153. Most of the yarding fell in those two price ranges with just a few at $80-$133. The cattle sale went from a feast to a famine with only 10 entered. Five Friesian cows, 578kg, made $2.27/kg, while the only other beast of interest was a White Galloway heifer, in-calf to an Angus bull, which sold for $2.61/ kg. A good crowd gathered for the calf sale, which resulted in a solid market across all types. Several lines of good beef bulls exceeded $300, with a line of Speckle Park taking top honours at $370. Friesian bulls traded at $160$205. Well-presented heifers sold well and Hereford-Friesian made
FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018 $155-$205, with all other calves of mixed breed making $115-$155. A reduced yarding of 210 calves sold with mixed results at MANFIELD PARK last Thursday. Good Friesian bulls held value as they traded at $180-$215, and medium types were solid at $150-$175. Beef-cross bulls sold to keen interest and Herefordcross reached $295-$360, and Angus-cross, $190-$210. Medium Hereford-cross earned $128-$180. Heifer demand softened and good Hereford-cross returned $100-$190, and medium, $45-$90. Buyers were once again treated to a large yarding of quality store cattle at FEILDING on Friday. There was no shortage of buyers too, which saw heavy traditional steers of all ages do well. A token selection of 460-580kg three-year steers were at $3.10$3.25/kg, but traditional two-year olds, 385-565kg, were much better received, mainly in the middle of the $3.35-$3.55/kg range. Three pens of 360-465kg two-year heifers all made $2.80-$3.05/kg. A few 440-485kg Friesian bulls fell short of previous sales at $3.15$3.20/kg. Heavy traditional one-year steers caught the attention of the crowd, pushing 280-335kg lines all the way up to $3.95-$4.05/ kg, $1110-$1355, but 260-280kg pens were lower at $3.50-$3.55/ kg. Hereford-Friesian steers, 205-300kg, sold for $3.40-$3.50/ kg, with the heavier end making a small premium on the rest. Hereford-Friesians made up most of the yearling heifers, and out of these 250-300kg were regularly $3.10-$3.20/kg. Traditional heifers were often lighter which lead to mixed pricing, but a single 320kg pen was a highlight at $3.40/kg, $1085. Per head budgets meant the one-year bulls had next to zero consistency in per kilo rates. Friesian bulls, 225-295kg, were often $760-$860, and a few 230-255kg beef-Friesian pens were at $675-$690. Store lamb numbers were more than the week prior, but only just, meaning the sheep sale was all finished about an hour in again. The options were all old season types, only occasionally numbering more than 100 head per pen. As a whole the market was similar to the previous sale. The better lines of male lambs were $179.50-$188, whereas the heavier ewe lambs were at $156-$170. Mixed sex and ewe lines cover a large portion of the medium-to-light pens, where $133-$147 was commonly paid. A few tail-enders were solid selling at $119-$133. The 600 ewes with 900 lambs-at-foot started not too differently from last week, but lost momentum as the sale progressed. Pens with good ewes or forward blackface lambs were sold for $113-$119.50 all counted. Mid-range types and anything with longer-term lambs were harder shifting, mainly $106-$110 all counted, but a few were down at $90-$101 all counted too. A single pen of 200 wet/dry Perendales in solid nick claimed $147.50. CANTERBURY CANTERBURY Prices eased through both the sheep and cattle pens at CANTERBURY PARK last Tuesday.
Given the time of year the sheep yarding was bigger than usual, with fine wool and fine wool-cross now dominating. Store lamb price eased though were still solid. Merino proved quite popular with better lines making $133-$138, and the balance, $101-$117. Other mixed sex traded at $100-$138, with one line up to $165. The biggest section was the prime lambs and though nearly 90 still managed to reach $200-$213, most other lines sold on an easing market at $170-$199. Ewe prices made similar movements and a few sold to $208-$251, with good to heavy lines making $175-$199. Most ewes were light-medium through to medium-good and ranged from $116 up to $170. The cattle pens felt the effect of little to no available processor space. However some lines shone purely on their quality, including eight forward store Angus steers, 504kg, which made $3.32/kg, while Angus-Hereford heifers, 490-530kg, earned steer values of $3.06-$3.18/kg. A line of local trade heifers, 421kg, earned $3.15/ kg, with most other lines of quality heifers selling on a steady to easing market at $2.82-$2.91/kg. Heavy prime steers eased and Angus-cross, 560-621kg, traded at $3.09-$3.11/kg, with similar weighted Hereford-cross at a 4c/kg discount. Better yielding Hereford-Friesian, 545-665kg, eased to $2.95-$3.02/kg. Friesian and Friesian-cross bulls were store types and at 436-530kg made a respectable $2.32/kg. Prime lamb volume lifted to the highest level in 12 months at COALGATE last Thursday, while all other sections of the sale fell back in quantity. Prime lambs are typically offloaded at this time of year and just over 3900 were penned. Due to the volume and tight processor space prices fell, with heavy types back $5-$7 to $180-$209, and medium lambs losing $3-$5 to $150-$179. After the prime lambs were sold there was little else for buyers. A small ewe section followed schedule prices down and while prices ranged from $100 up to $209 most traded at $130-$177. An even smaller entry of store lambs sold to very limited interest and a few lines managed $131$146, though fine wool types eased to $94-$114. Both sections of the cattle sale shrunk in size. Specially advertised Angus & AngusHereford yearlings attracted a few more buyers and easily made a premium. The top pen of Angus steers, 290kg, made the highest $/kg at $3.52/kg to sell for $1020, while 214-272kg returned $735-$880, $3.24-$3.43/kg. Angus-Hereford had more weight at 300kg and made a premium over the Angus at $3.60/kg. Angus heifers, 237kg, lifted to $3.08/ kg, while Angus & AngusHereford, 219kg, fetched $700, $3.20/kg. Hereford-Friesian yearling steers, 280-314kg, sold on a firm market at $2.99-$3.04/ kg, while heifers from the same camp and 304-323kg were discounted to $2.76-
$2.79/kg. Friesian bulls, 170208kg, looked buy-able at $380$470. Prime volume was well down and heifers made up the majority. They had a good day as prices firmed for 410-455kg to $2.76$2.84/kg. Heavier types, 480kg, made $2.89-$2.95/kg. The steer pens featured Hereford, 515530kg, which sold on a softer market at $2.96-$3.06/kg. SOUTH CANTERBURY SOUTH CANTERBURY A clash with the Canterbury Park sale did not seem to have any impact on the cattle market at TEMUKA last Tuesday, though had some effect on sheep. Prime stock filled most sheep pens but the $200 mark was notably absent from the lamb books as most sold for $170-$189, with third cuts earning $140-$168. The ewe section included a consignment of 375 fine wool ewes which sold in three cuts at $78-$112. Overall ewe prices eased and though a few managed to push to $210-$211 most sold for $110-$179. The store lamb pens were empty with a total of 65 lambs penned. The top lines made $120$128, with medium types earning $100-$110, and a few lighter lines, $70. Small pens of ewes with lambsat-foot were also offered and three lines sold to $122-$128 all counted, with the balance trading at $70-$97. The cattle section sold on a buoyant market due to low numbers. Better yielding Friesian boners from 400kg up to nearly 700kg made $1.75-$1.85/kg, with second cuts trading on a firm market at $1.65-$1.71/kg. Boner heifers made steady returns as most were 470-585kg and traded at $2.48-$2.55/kg. Hereford cows were part of a consignment from Wanaka and the better lines, 548-603kg, earned $1.80-$1.84/kg. A steady theme ran through the prime steer and heifer pens. A few lines of exotic and Herefordcross steers exceeded 700kg and with price tags of $3.02-$3.03/ kg made $2175-$2197, with a lone Charolais, 770kg, up to $2279. Very heavy types traded at $2.93-$3.03/kg, with second cuts making $2.85-$2.88/kg. That was almost repeated in the heifer pens for Angus, 525-590kg, which
mainly traded at $2.86-$2.95/kg. Hereford-cross and Murray Grey, 473-725kg, traded at $2.81-$2.91/ kg, with one very heavy Herefordcross making $2110. Store cattle volume grew to 1450 head as the previous week’s sale was cancelled, and 90% of the offering were beef-Friesian. Heifers made up nearly half the sale with over 400 yearlings penned. Buyers were local for steer and heifer while bull headed to Central Otago. Vendors met the market and few lines were passed in, though there was some good buying to be had. Murray Grey sold well in the two-year steer pens with 415437kg making $3.14-$3.20/kg, while most Hereford-Friesian sold for $2.90-$3.00/kg. Traditional and exotic heifers made a 23c/kg premium at $2.83-$2.96/kg over beef-Friesian, with most trading at $2.60-$2.74/kg. Both the two-year and yearling bull section were picked up by one buyer. Two-year HerefordFriesian, 418-455kg, made $2.66$2.73/kg, while yearling Friesian bulls, 191-195kg, finished on a steady market at $2.56-$2.62/kg. The yearling steer and heifer pens were jam-packed with Hereford-Friesian and quality heifers pushed up to medium steer value. The top lines of steers however were not to be caught and 205240kg earned $3.33-$3.47/kg if they had the quality. Heavier lines, 260-340kg, sold for $2.82-$3.13/ kg, while similar weighted heifers were not far behind at $2.86$2.99/kg. A good quality line-up in the 237-239kg range made $3.08-$3.16/kg, though lesser lines dropped away to $2.58-$2.74/ kg. OTAGO OTAGO The BALCLUTHA sale last Wednesday was exceptionally small as the focus for farmers is very much on lambing. No store lambs were offered and only limited volumes of prime lambs and ewes. Results were mixed with heavy and medium prime lambs holding value at $185-$195 and $165-$175 respectively, but third cuts eased $5 to $145-$155. Ewe prices eased across the board as heavy lines made $150-$160, medium $135$145 and light, $70-$100.
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40 FARMERS WEEKLY – farmersweekly.co.nz – October 1, 2018 SI SLAUGHTER LAMB
NI SLAUGHTER BULL
SI SLAUGHTER STEER
($/KG)
($/KG)
ONE-YEAR HEREFORD-FRIESIAN HEIFERS, 245-270KG, AT FRANKTON
($/KG)
($/KG LW)
8.15
5.40
5.85
3.83
Canterbury Park
Croppers relish mill chance Annette Scott
GET IT BACK: Canterbury cropping farmer Brian Leadley says growers now have a golden opportunity to win back market share that has been filled by imported grains for too long. Photo: Annette Scott
annette.scott@globalhq.co.nz
C
ROPPING farmers are relishing the long-term opportunities sprouting from Champion Flour Milling’s national contract to supply Countdown supermarkets. But Federated Farmers grains vice chairman Brian Leadley said growers will need time to plan. “This long-term supply contract to Countdown for local grain is a breakthrough for us as an industry. “It’s the golden opportunity we have been working on to win back market share that has been filled by imported grains and flour for too long now. “But we can’t make it happen overnight,” Leadley said. “Now this contract is confirmed farmers can plan ahead to grow for the mill but this year timing has been an issue.” By the time the Champion Flour Milling-Countdown supermarkets deal was sealed farmers already had their rotations planned and much of this season’s crop was in the ground. “Cropping decisions happen 12 months out and already in our operation, rotation-wise, we are considering now what crops will go where next year and even drafting the longer-term plan. “Farmers do need to look at committing now that we have
consumers wanting to use our product.” Until this year the in-house bakeries of 180 Countdown supermarkets used premixed ingredients largely imported from Australia. Christchurch-based Champion Flour Milling recently sealed a deal that will see the supermarkets’ bakeries switch to premixes using locally-grown products for all loaves, roll, buns and scones. Champion’s business innovation manager Garth Gillam said the contract is the culmination of years of effort. While support from local industry and growers has been excellent, farmer commitment is needed. The challenge now is to source sufficient grain. Quality and continuous supply are key to mitigate risk of losing the contract. Leadley said there’s no doubting local industry and grower’s ability to supply
the quality and innovation required. “We certainly have the agronomists, soils, innovative (grain) varieties and growers with the capability for good production.” What will be a factor for growers is their ability timewise to switch to more milling grain production. “This year a number of growers have made the commitment around feed (grain) and that’s been a decision not only around timing but the ease of management, fully utilising on-farm infrastructure and financial.” With greater risk around quality and yield and specialist storage requirements, management is more complicated around milling, Leadley said. Potential yield and grade quality penalties are a risk, especially when feed grain prices are higher.
$133-$150 $115-$124 high Medium ewes with to good lights Merino store lambs at Romney multiple docked
Farmers do need to look at committing now that we have consumers wanting to use our product. Brian Leadley Federated Farmers
“The bottom line is net return – rotation, work load, storage and input cost all need to weigh up against net return.” Growing and weather conditions are also a critical part of the equation with the optimum yield window of opportunity much wider for feed varieties. Leadley is confident growers will factor milling wheat into their rotations and longerterm crop planning. “In the future we hope milling contracts will be priced attractively for growers to pick up. With prices around $400 a tonne for both wheat and barley and the kind spring for planting, arable farmers are optimistic for a better harvest this season. Depending on variety and quality, milling wheat prices are looking to be $420-$450/t for next year with the top end feed contracts on farm delivered at $400-$420. “We have been saying for some time that mid-$300s pricing is not sustainable and we appear to have pushed through that now.
blackface lambs, at Stortford Lodge
Last chance for old season lambs I’M NOT sure about everyone else but September has crept by me exceptionally fast. It has not been without its trials and tribulations for the farming community and my thoughts Suz Bremner go out to those who have been AgriHQ Analyst affected by not one but two nasty blasts of weather that has affected different areas of the country. Hopefully, by the end of this week we will all be able to enjoy a proper spring, which has already started here in Hawke’s Bay with inevitable wind, which is one part of a kiwi spring I could do without. With the calendar changing to October this is the last chance really for old season lambs, given that processors start checking teeth and downgrading from October 1. It has been the best season to date for vendors as prices just kept pushing up as schedules and demand did the same. Prices are still higher than in other years and that is with the market doing its typical trend downwards. We’ve seen a bit of a rush of prime lambs over the past few weeks as mainly traders get rid of anything that will run the risk of teeth but in both islands these lambs are still making $170-$190 with a few lines pushing the $200 mark. The South Island is seeing larger numbers of fine wool and fine woolcross now coming forward and once they are through then it really will be tools-down on last season’s lambs. Store lamb numbers on the other hand have been declining rapidly with even the bigger yards lucky to hit the 1000 head mark now. Traders and finishers would like to now turn their attention to the new crop of lambs coming forward but to date through the sale yards they have only been with their mothers. The only new season lambs so far was a line of 23 blackface, which sold at Stortford Lodge on Wednesday for $128.50. suz.bremner@globalhq.co.nz
MORE FROM AGRIHQ: MARKET SNAPSHOT MARKET WRAP
P36 P37
We’re very proud that The Farmers Weekly has been the country’s most read rural publication for more than a decade. Latest independent research says every week on average 117,000 farmers choose to read Farmers Weekly - that’s thousands more than any other rural newspaper in the whole country, and farmers read each issue for longer than any other title. That’s a powerful combination when you want real farmers seeing your advertisement. New this autumn is a special property pull-out in Farmers Weekly that will run through our March issues. Book a campaign of three or more advertisements in March and get a complimentary editorial on your property in one of our pull-out specials. Talk to your agent now and make sure you are in the paper that more farmers read. *conditions apply
Spring 2018 Property Pull-Out October 1, 2018
farmersweekly.co.nz
Agents believe a mix of factors is motivating some older farmers to sell once lambing and calving are finished.
Farm sales rebound picked Alan Williams
T
alan.williams@globalhq.co.nz
HE next few weeks should answer the question of how busy the rural real estate market will be going in to the spring and summer peak. “We’re assuming that a number of properties will come forward,” Real Estate Institute rural spokesman Brian Peacock said. “We’ll know that in October.” There were signals through the year that a mix of factors is motivating some older farmers to look at selling once lambing and calving are finished. The signals include frustrations over finding labour, greater compliance requirements, Mycoplasma bovis and the weather impacts over the last year or so. The timing coincides with favourable price factors such as a dairy farm milk payout forecast higher than last year and strong lamb and beef schedules. “We haven’t got a real feel on prices at this stage but I’d expect values to be close to where they finished last season.” Though there have been
localised impacts, weather and ground conditions this spring in most regions are better than last year and more encouraging for farm sale activity. Spring has certainly come earlier in Waikato where he is based. The institute’s latest data shows overall farm prices slipped marginally in the three months to the end of August but remain slightly better than a year ago. Turnover fell, with 1466 farms sold in the year, down 14.2% on the previous year. All sector activity was down. Arable farms tend to change hands at a slower rate than others and the number of transactions was 16.7% lower; finishing farm sales dropped 14%, grazing farms by 13% and dairy farm sales by 6.8%. According to institute figures, the All Farm Price Index fell 1.6% in the three months to August, compared with the July period. For the year though, the index rose by 4%. This index, regarded as the truest measure of value, adjusts for the difference in farm size, location, and farming type, whereas the median price measure doesn’t. The median price for all farms
sold during the three months to August 31 was $19,792/ha, down 29% on the $27,928 figure a year earlier, Peacocke said. From July to August, the median price was 7% lower. At odds with the overall figures, the institute’s Dairy Farm Price Index rose in the three months to August, by 3.6%, but fell by 13.2% in the year to August 31.
Beef and sheep farms are benefiting from strong schedule prices and horticulture returns are at record levels. Brian Peacocke Real Estate Institute The median price for the latest three months was $30,830/ha, down from $31,881 in July and from $37,842 in August last year. That is a median price fall of 18.5%. The fall was based on lower sales turnover and likely indicates most dairy farm activity was in second and third tier properties
where there was a lot of price sensitivity. He does expect top tier farms to come to market in the spring season and his own firm has farms coming in for listing. There are also indications of an industry focus on the volatility in Fonterra causing some producers to overlook the fact the milk price this year was better than last year. Beef and sheep farms are benefiting from strong schedule prices and horticulture returns are at record levels. The sector was helped by low interest and exchange rates though fuel price increases are having an impact. The Mycoplasma bovis risk remains a major focus and the industry view is stand-alone dairy support properties and dairy farms containing grazing areas will be well sought-after as farmers look to become selfcontained for off-season grazing. Six of the 14 regions recorded increases in sales over the threemonth period. Manawatu-Wanganui had 16 more sales, Southland 12 more and Otago an increase of nine. Canterbury had 14 fewer sales and Auckland was down by 11. The Otago and Southland
figures showed a strong, durable market for finishing and grazing farms and that also applied to Canterbury despite the lower three-month statistic there, Peacocke said. On a year-to-year basis 12 regions had a drop in sales, with the biggest fall being 21 in Waikato. He thinks 2018 activity is reasonably similar to last year though well down on 2016 levels. Most sectors have reduced activity at this time of year because farms are busy with lambing and calving. Finishing farms had a median sale price of $28,011/ha for August this year, higher than the July figure of $26,531 for July but down on the August 2017 figure of $30,566/ha. The year-to-year fall was 8.4%. For grazing properties, the latest median price was steady at $10,168/ha compared to July but was down on the $11,355/ha to August last year, a 10% fall. The very high product prices in horticulture have moved through to orchard prices though they are off an earlier peak. The latest median figure was $255,351/ha, down from $281,468/ha in July but well up on the $158,546/ha median in August last year.
IT’S ALTOGETHER BETTER IN THE
The Spring 2018 edition of Country is out now, with a fresh line-up of the best farm, specialty and lifestyle properties for sale altogether in one place. We also raise a glass to New Zealand hops and the craft beer industry; look at the viability of timber processing to make our forestry sector more competitive internationally and discuss wealth creation for farmers through commercial property investment. Plus we check out A&P Shows and calf days to see how they keep our rural traditions alive. A complimentary copy of Bayleys Country handbook has been provided along with your Farmers Weekly. For a copy of the full Country magazine, including the latest insights and editorial content on key topics of interest to the rural property sector, call 0800 BAYLEYS or view online. Your search for something altogether better starts here.
A LT O G E T H E R B E T T E R
More value from trees a big challenge Interest in forestry and wood processing from government is welcome, but adding value to logs can be a tough job.
The show must go on
The traditional A&P Show is holding its own in a changing society and continues to unite rural and urban communities.
FEATURING
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#1
RURAL REAL ESTATE BRAND
FARM, SPECIALTY AND LIFESTYLE PROPERTIES FOR SALE ISSUE 2 – 2018
bayleys.co.nz/country LICENSED UNDER THE REA ACT 2008
Residential / Commercial / Rural / Property Services
Boundary lines are indicative only
Te Kauwhata 95 Carter Road
One, two or three - dairy, drystock or lifestyle! Excellent improvements, land, and not just one but three houses; your entire wish list will be met. This farm consists of 260.89ha (more or less) of flat to gentle rolling land, making for an easy switch or expansion to your existing business. Currently a large scale dairy unit, the Vendor will sell separately if required as a 17ha ( more or less) block, 118ha (more or less) dairy unit and the back 125ha (more or less) as drystock or a run-off. Each block comes with its own house. The milking shed is a 42 aside herringbone shed which is currently milking 630 cows and supplied Open Country Dairy 235,150kgMS for the 2016/17 season and 200,667kgMS for the 2017/18 season, supplying Fonterra up until 2016. Situated only 1km from Waerenga School and 15km to the bustling town of Te Kauwhata.
Tender (unless sold prior) Closing 4pm, Thu 25 Oct 2018 96 Ulster Street, Hamilton View 1-2pm Wed 3 Oct, Wed 10 Oct & Wed 17 Oct Karl Davis 0508 83 83 83 Lee Carter 027 696 5781
bayleys.co.nz/85898
SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
NEW LISTING
Wairoa 653 Titirangi Road, Frasertown
Quality hill country farming
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Riverlea Station consists of 588ha of strong Wairoa hill country. Circa 4,250SU, historically carrying higher stocking rates and finishing livestock. Set in a desirable farming climate, Riverlea is well positioned to deliver very productive farming. Access, water provision and infrastructure are of a very high standard, whilst the support of natural features such as aspect and shelter, climate, water and contour deliver a well-rounded breeding and finishing unit. 20 minutes north west of Wairoa, accessible to good schooling, amongst a great rural community, the four bedroom refurbished home offers space, privacy and unbeatable rural views with excellent farm infrastructure further enhance the offering. An abundance of hunting and fishing on the doorstep.
Tender (unless sold prior) Closing 4pm, Wed 31 Oct 2018 10 Reads Quay, Gisborne View by appointment Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz James Bolton-Riley 027 739 1011 james.bolton-riley@bayleys.co.nz
Desirable climate, great contour, strong infrastructure and exceptional recreational appeal.
bayleys.co.nz/2751031
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MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
bayleys.co.nz
Hawke's Bay Mutiny Road, Hastings
Grow almost anything on 80ha with water Rarely does one get the opportunity to purchase a large 80 hectare (two titles) area of flat land so close to Hastings and Havelock North. The property is currently finishing lambs as part of a mixed cropping regime, with annual crops grown, such as carrots, onions, squash, maize, sweetcorn and peas. The land has strategic tile drainage and a consent to irrigate, meaning the options to grow almost anything are fantastic. The 3-stand woolshed, sheep yards/cattle yards provide the facilities for efficient livestock handling. Peat soil types and a good fertiliser history provide the fertility, combined with good water one can grow almost anything. Don't miss the opportunity to secure this large parcel of quality land.
Tender (will not be sold prior) Closing 4pm, Thu 18 Oct 2018 17 Napier Road, Havelock North View by appointment Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
bayleys.co.nz/2851323
NEW LISTING
Dannevirke 447 Pukeatua Road
Superbly located 545ha with rainfall Rarely does one get the opportunity to purchase such a well located farm, only 11km south of Dannevirke. 'Atahua' is a very well balanced 545ha sheep and beef farm which has 64ha of flat and easy land that has been developed with two water systems reticulating water to the majority of the property. Fenced into 48 main paddocks, a central laneway and five sets of satellite sheep yards, workability is exceptionally good. Improvements include a refurbished five bedroom homestead, accommodation for staff, implement sheds, four stand woolshed/covered yards complex and cattle yards near the front of the property. Don't miss the chance to own this versatile property in what is regarded as a great farming climate with generally reliable rainfall. Open Days will be held 9am Wed 10 and 17 Oct 2018.
bayleys.co.nz/2851305
bayleys.co.nz
Tender (unless sold prior) Closing 4pm, Fri 16 Nov 2018 17 Napier Road, Havelock North View by appointment Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Vic Ellingham 027 201 6707 vic.ellingham@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Lagoon Hill Station Tuturumuri, South Wairarapa
Scale, diversity, location – 4,273.5 hectares • Iconic large-scale sheep and beef breeding station superbly presented with excellent fertiliser history and well graphed stock performance, wintering some 10,000 ewes and 500 cows over circa 2,190 hectares, and boasting brilliant infrastructure and stock selection. • 1,360 hectares (NSA) of mixed age forestry offers immediate cash flow options with staggered harvesting. • Exclusive hunting camp accommodation situated on 203 hectares of native bush, river frontage and open face clearings presents numerous tourism ventures. • Available in four titles (subject to final survey) located 20 minutes east of booming Martinborough, Lagoon Hill Station is a fantastic opportunity with huge potential. Visit www.lagoonhillstation.co.nz for full details.
Tender Closing 4pm, Fri 16 Nov 2018 (unless sold prior) Bayleys House, 30 Gaunt Street, Auckland Selling 'all or parts' of the portfolio View by appointment Mike Bayley 021 670 101 Lindsay Watts 027 246 2542
bayleys.co.nz/1686618
BAYLEYS REAL ESTATE LTD, AUCKLAND CENTRAL, LICENSED UNDER THE REA ACT 2008 EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
NEW LISTING
Ashburton 84 Forks Road
Attractive dairy farm On offer is a 207.7930 hectare dairy farm in one title plus 17.1 hectares of Crown lease land which has formed part of an approximate 340 hectare milking platform converted in 2007. The total farm milked 1,100 cows in the 2017/18 season producing 484,000kgMS through a 54 bail rotary shed with Waikato plant and all modern inshed technology. Supporting infrastructure on this 207.7930 hectare farm includes recently updated effluent ponds (60 days), excellent tracking, good calf rearing sheds, numerous sheds and modern homes. The 985 metre pivot irrigates 185 hectares with the balance irrigated via sprinklers. Irrigation water is gravity fed from the Ashburton River to a 300,000 cubic metre holding pond then pumped to the pivot and sprinklers allowing for a very efficient and low cost system
Deadline Sale (unless sold prior) 1pm, Fri 9 Nov 2018 Offers invited over $9,500,000 + GST (if any) View by appointment Jon McAuliffe 027 432 7769 jon.mcauliffe@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
bayleys.co.nz/558283
bayleys.co.nz
NEW LISTING
Boundary lines are indicative only
Ohaupo 161 Ranby Road 96 hectare dairy in sought after location Added to the coveted address there is near flat and all effective contour, good production and tidy infrastructure. The farm is very well appointed with a 20ASHB shed, in-shed meal feed system, calf and implement sheds. The three bedroom brick home was completed in 2016. The average production is 103,308kgMS (2016-2018) and presently 280 cows are being milked. Regional council consent is for 336 cows. The pastures reflect a regular fertiliser program and prudent management of the peaty loam. Farms in this desirable location are very tightly held, take action to secure yours now!
Reporoa 274 and 276 Whakapapa Road 3
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Auction (unless sold prior) 11am, Thu 1 Nov 2018 96 Ulster Street, Hamilton View 11am-12pm Tue 9 Oct Sharon Evans AREINZ 027 235 4771 sharon.evans@bayleys.co.nz Stuart Gudsell AREINZ 021 951 737 stuart.gudsell@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Dairy support or dry stock The best 113ha bare block that has come to the market for some time. The block is in two titles. Recently converted from trees in 2011, all the hard work has been done, fencing, races, water, and contouring all done to a high standard. There is currently a very comprehensive new grassing program in place with cropping and new grasses completed over the entire block. The current owner is on their second rotation around the farm with the new grass and cropping regime, there is no room for poor performing pastures. There is three phase power to the middle of the block where there is a four bay implement shed. All weather access to a very good set of cattle yards. A single bore supplies water with a 50mm ring main and 32mm to troughs.
bayleys.co.nz/814758
bayleys.co.nz/2651002
Taranaki 1508 Otaraoa Road, Tikorangi
Opunake 461 Ngariki Road
Self-contained Dairy and Grazing
Top dairy farm - option of 164.9ha or up to 233.8ha
Available is 232Ha in two titles with milking, grazing and finishing platforms that can be sold as a self-contained unit or separately. This is a great opportunity to secure a farm that benefits from a high standard of improvements and recent maintenance upgrades. These include the 2009 built home, 21 ASHB complete with cup removers, new in shed feed system, 5 bay implement/calf shed and silage bunker. Contour across the Dairy platform is mostly undulating to medium hill with the grazing area running from river flats suitable for finishing to steeper sidlings. The second title comes with hay sheds, woolshed, stock yards, upgraded water system and three bedroom cottage. Purchase a secure self-contained unit with good scale or individually.
bayleys.co.nz/522771
bayleys.co.nz
Tender (unless sold prior) Closing 1pm, Wed 31 Oct 2018 15 Courtenay Street, New Plymouth Open Days: Wed 3 & 10 Oct 11-12pm Mark Monckton 021 724 833 mark.monckton@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Seldom do you find a predominantly flat farm with a centrally located cowshed that has all the 'bells and whistles' of this size and calibre in Taranaki. Milking the cows through a 54-bail rotary in only its fifth season will be a delight. Milk 430 as a 164.9ha block or up to 620 with the full 233.8ha, Protrac, cup removers, two million litres of effluent storage. Add the very good races which get the cows to the shed in 25 minutes or mostly less. A predominately flat 20.2ha grazing block with yards and large shed is also available.
bayleys.co.nz/522534
Price by Negotiation View by appointment Stan Sickler 021 275 7826 stan.sickler@bayleys.co.nz WESTERMAN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Tender (unless sold prior) Closing 1pm, Tue 23 Oct 2018 15 Courtenay Street, New Plymouth Open Days: Thu 4 & 11 Oct, 1-2pm John Blundell 027 240 2827 john.blundell@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Real Estate
FARMERS WEEKLY – October 1, 2018
farmersweekly.co.nz/realestate 0800 85 25 80
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Farm, feedlot, crops A SIGNIFICANT parcel of largely flat land in Central Hawke’s Bay totalling 579ha on six titles offers a multitude of farming options for new owners. The farm, Tahuna, is well located between Waipawa and Tikokino on a mixture of freedraining and heavier ground that provides choices in winter and summer to keep stock on green feed 12 months of the year. It has consents to irrigate 80ha, which complements the cropping regime and gives the ability to lay down winter feed for the consented feedlot that has the potential to carry up to 800 cattle. Five hectares was established for a feedlot in 2016 and consists of 1ha cells with continuous polyethylene troughs under
fences to enable feeding. Bulls and dairy grazing cows have been run through the feedlot and to date 5ha has been set up with the capability to winter 500 cattle. The consent is in place until 2020 and allows for up to 8ha to be incorporated to carry up to 800 cattle. The rest of the farm is subdivided into 70 paddocks of varying size and a number of central lanes run through the two main titles. This past winter, under a lease arrangement, the property carried 160 R1 bulls, 426 R2 bulls, 500 dairy cows on contract grazing and 105 ewes. Its cropping regime has been integral to the operation and last season the farm grew 70ha of maize, 42ha of barley, 35ha of
oats, 8ha of fodder beet and 15ha of rape. It also grew 20ha of irrigated potatoes, which shows the diversity of the property. This year 105ha was sown in Moata Italian ryegrass. A full set of infrastructure sets the property up well for numerous options and includes a woolshed, sheep yards, two sets of cattle yards, three implement sheds, workshop, hay barns and plenty of auxiliary buildings. Four homes are distributed around the property and the three-bedroom 1940s stucco homestead is set among established trees with a detached two-storey garage with additional accommodation. Paul Harper from PGG Wrightson Real Estate says the farm has scale, location and
The infrastructure includes a woolshed, sheep and cattle yards, three implement sheds, a workshop and hay barns.
This farm shows its versatility by growing a wide range of crops in addition to running beef and dairy cattle and sheep.
numerous land uses generating income streams that make it a highly desirable unit with wide appeal. The deadline private treaty sale closes on November 8.
MORE:
View at www.pggwre.co.nz ID HAS28763 and or call Paul Harper on 027 494 4854 or Doug Smith on 027 494 1839
This farm can run more than 1000 cattle in the 70 paddocks and up to 800 on the feedlot.
FINAL NOTICE
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A STUNNING LIFESTYLE 304 Tablelands Road, Opotiki • Spacious, tastefully appointed, renovated meticulously • Set on 3533m2 amongst mature tropical style gardens
Scargill 554 Waikari Valley Road
• There is nothing to do here but relax • Flowing interiors to private decked outdoor areas
'Double Hill'
bayleys.co.nz/558338
For Sale by Deadline Private Treaty
• Auction 7 October 2018 unless sold prior. View 16, 23, 30 September, 7 October 1-2pm • View: www.ohopebeachrealty.com – open2view.com ID 429727
(unless sold prior)
4pm, Thu 18 Oct 2018 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Peter Foley 021 754 737 WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
LK0094501©
'Double Hill' is a versatile 637ha grazing property with scale, balance and real character. From its picturesque and productive limestone valley and rolling, warm north-facing hill country perfect for wintering, leading into extremely well-sheltered fertile flats, ensuring a wonderful balance for stock in both winter and summer. The property features a full complement of infrastructure including a three-bedroom home, cottage, very good woolshed, new centrally located cattle yards, sheepyards and ancillary buildings. Water is via the County Scheme and reticulated throughout. In a great location, situated close to Waikari township, 'Double Hill' is an exceptionally attractive, versatile property with further development opportunity.
• Spectacular views to the west over the Opotiki plains
Ray Johnson
Rema Hinds
027 626 1487 • ray.johnson@obr.net.nz
0274 535 033 • rema@obr.net.nz
www.ohopebeachrealty.com
P a r a m o u n tRealty R e a l t yOhope L t d M Ltd R E I NMREINZ Z | L i c el nLicensed s e d R e a lReal E s t aEstate t e A g eAgent n t ( R E(REAA A A 2 0 02008) 8 ) | 1 9l 19 P oPohutukawa h u t u k a w a A vAve, e , OOhope h o p e BBeach each Paramount
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farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
FARMERS WEEKLY – October 1, 2018
RURAL rural@pb.co.nz Office 0800 FOR LAND
Property Brokers Limited Licensed under the Real Estate Agents Act 2008
Maranoa
DEADLINE SALE WEB ID WR63528
CENTRAL HAWKES BAY 256 Takapau Ormondville Road • 305 ha deer/finishing unit, 25km west of Waipukurau in the heart of the Takapau Plains is arguably one of NZ's preeminent deer units • Home of the nationally recognized Maranoa Sire Stag Sale • Flat contour, free draining soils, large retired wetlands • Water reticulated to all paddocks • Deer fenced into 60 paddocks
• Accessed by wide laneways • Main homestead plus second home • Large deer shed and selling complex • Presently breeding and velveting • Suited also to lamb or bull finishing • Faithfully farmed by the same family for 50 years
VIEW By Appointment DEADLINE SALE closes Wednesday 7th November, 2018 at 4.00pm
DEADLINE SALE Pat Portas
Mobile 027 447 0612 Office 06 928 0521 Home 06 855 8330 patp@pb.co.nz
Bevan Pickett
Mobile 027 220 2766 Office 06 928 0520 bevanp@pb.co.nz
"A quality property".
pb.co.nz
Deadline Sale Duntroon 62 Harveys Road Whitecliff Dairy Farm
Deadline Sale Closes 4pm Thursday 25th October, 2018, 211 Thames Street, Oamaru
• 351.7899 hectare freehold, well designed dairy farm converted in 2014/15 with good lanes and fertile soils. Options to be self-contained.
• Farm improvements include 2 implement sheds, 10 bay calf rearing shed, grain/palm kennel feeding system, cattle yards and grain silos.
• lrrigation from Maerewhenua Irrigation Company irrigated via 60 ha Pivot, 20 ha Fixed Grid with balance Kline plus 6 units of stock water from the Tokarahi Water Supply.
• Housing consists of original four bedroom homestead totally renovated and two near new double bedroom units with garages.
• 54 Bail Rotary, Waikato Plant, ACR’s and Protrac automatic drafting, 250 ha milking platform milking 900 cows currently producing 378,437 kgMS.
• Located approximately 40km inland from Oamaru.
View By Appointment Web pb.co.nz/OMR72402
Merv Dalziel Property Brokers, Hastings McLeod Ltd Oamaru Licensed under the REAA 2008 Mobile: 027 439 5823 Office: 03 434 3347 merv@pb.co.nz
Dave Finlay PGG Wrightson Real Estate Licensed under the REAA 2008 Mobile: 027 433 5210 Office: 03 433 1340 dfinlay@pggwrightson.co.nz
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RURAL rural@pb.co.nz 0800 FOR LAND
Property Brokers Limited Licensed under the Real Estate Agents Act 2008
Large scale dairy
Irrigated dairy plus run off
OPEN DAY
WEB ID MOR01967 $8,700,000 + GST TE HOE 107 Le Heron Road VIEW 4 & 11 & 18 & 25 Oct 11.30 - 1.00pm • 192 hectares - flat to rolling contour • Mix of clay and silt loam soils • Six titles • 54 Bail rotary cowshed • Four year average production of 182,000 kgMS, covered feed pad, effluent irrigation 32 hydrants • Excellent shedding • Four homes all in excellent condition
DEADLINE SALE
(IF ANY)
Peter Lissington
Mobile 027 430 8770 Office 07 280 5534 peterl@pb.co.nz
WEB ID WR62530 DEADLINE SALE CENTRAL HAWKES BAY 406 Tuki Tuki Road View By Appointment DEADLINE SALE closes Thursday 8th November, 2018 at • 19km west of Waipukurau 4.00pm • 135 ha Dairy platform (120 ha irrigated) • 165 ha Run off • 375 Cows 174,300 kgMS average last 5 years • 30 a/s shed with in shed feed system Pat Portas • Two homes, numerous farm buildings Mobile 027 447 0612 Office 06 928 0521 • Excellent fertiliser history Home 06 855 8330 • Purchasing options available: patp@pb.co.nz • 300 ha, platform and run off (The Lot) • 135 ha platform - great value at around $35k/ha Bevan Pickett • 165 ha run off Mobile 027 220 2766 • A great opportunity at an affordable value Office 06 928 0520 bevanp@pb.co.nz
Manawatu's finest soil - 111 ha
NEW LISTING WEB ID FR61329
OPIKI 1450A Rangiotu Road With arguably the best soils in the Manawatu, modern pasture species, extensive drainage and excellent fertility, this property produces an outstanding amount of dry matter and milk solids annually. Farm Improvements include a 36 ASHB shed, 3 large multiple use sheds and sundry buildings, plus a 350 cow feed pad. Filtered water is sourced from an independent bore and in the past 5 years the entire 109 ha has been re-sown. An excellent central race system gives easy access to all paddocks.
pb.co.nz
The main 3 bedroom homestead is built on elevated, VIEW By Appointment establish grounds with open plan living, 2 bathrooms and sealed driveway. The second dwelling is a two story, 4 bedroom weatherboard home that would compare to many main houses on other properties. Offered for sale By Negotiation and with the Vendor's expectation below the current RV of $5,500,000 this dairy farm will offer you scale, quality and location rarely seen at such an affordable price.
BY NEGOTIATION + GST (IF ANY)
Blair Cottrill
Mobile 027 354 5419 Office 06 323 1538 blair@pb.co.nz
Stuart Sutherland
Mobile 027 452 1155 Office 06 323 5544 Home 06 323 7193 stuarts@pb.co.nz
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farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
FARMERS WEEKLY – October 1, 2018
Farm offers choice A ONE-PERSON operation near Te Awamutu milking 155 cows is a first-farm opportunity at $2.6 million. Located just 10km south of the town and 20km north of Otorohanga provides choices for schools and services while the climate delivers reliable rainfall and impressive grass production. In the past four years the farm has averaged 53,158kg milksolids from 155 cows after raising 60 replacements on whole milk on a relatively low-cost, low-input farming model. This season cow numbers have been increased to 183 cows wintered on the farm with calving beginning about July 28. Flat to gentle-rolling contour flows over the farm with neatly-
trimmed hedgerows adding shelter and appeal to the country. At grassroots it has a mixture of ash and silty-clay loam soils that have received annual spring and autumn applications of fertiliser. In the past three seasons close to 10ha of new grass has been sown, which includes replanting 2ha of turnips and 1ha of chicory. The 45 paddocks are well fenced and connected with a quality network of tracks and internal races. The furthest walk to the dairy is 500m and it is a well-maintained, 12-aside herringbone with Waikato plant, a teat spray unit, Reed sliding pulsators, in-shed feed system and silo. An upgraded effluent system
In the last three seasons 10ha of new grass has been sown.
now consists of a stone trap that gravity-feeds to a lined holding pond with compliant storage. It is emptied as required by mobile pumping contractors. A deep well near the tankerturn area is the primary water source for the farm and is pumped to a holding tank before heading to the dairy and through an in-line mineral dispenser to troughs. Two barns and a threebay implement shed round out the farm amenities while accommodation is a tidy threebedroom weatherboard home. Kerry Harty from Harcourts says the location of the property is paramount and the farm will not disappoint as a smaller dairy unit.
This farm has a central 12-aside herringbone so the longest walk is 500m.
Its size and main road location make it equally suitable as a high-profile beef or horse stud, goat conversion or an easy-care, centrally-located finishing block.
MORE:
Visit www.harcourts.co.nz ID OH7922 or contact Kerry Harty on 07 873 8700 or 027 294 6215
Accommodation is in a tidy, three-bedroom weatherboard home.
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Real Estate
The farm has a four-bedroom home while the solid infrastructure includes a four-stand woolshed with covered yards, three hay barns and an implement shed.
FARMERS WEEKLY – October 1, 2018
In the past two seasons 35ha of permanent pasture has been sown in addition to the 32ha of short rotation ryegrass.
Intensive finishing unit About 6000 lambs are bought at the end of July and taken through to October or early November and in March 2000 lambs are bought to finish by May/June. And 2000 mixed-age ewes are grazed for four weeks in January and February while about 860 breeding ewes are lambed each year. As well as lamb finishing the business buys in about 260 R2 cattle in late September to take through to the following May. A good balance of easy rolling downs to medium hills with some steeper sidlings incorporates
about 350ha of cultivatable country and in the past two seasons 35ha of permanent pasture has been sown. It is a mix of Excess AR1, Timothy, chicory and plantain plus red and white clover. In addition, 32ha of shortrotation ryegrass was planted. Fertility across the farm is above average with a pH range of 5.7 to 6.6 and an average Olsen P level of 25. The silty loam soils respond well to regular inputs of fertiliser and lime, enabling good levels of production as well as producing
400 bales of hay or balage each year. Richard O’Sullivan from Colliers International says the rolling downs aspect of the property, good fertility and solid infrastructure have enabled a profitable farming operation to run with ease. Though it has traditionally focused on sheep and beef, the property is suitable for various options such as drystock, dairy grazing or conversion to deer. Farm infrastructure incorporates a tidy, four-stand,
raised board woolshed with covered yards, three hay barns, an implement shed and a large, lockable workshop. On the home front, the fourbedroom homestead is set in established grounds with a north-facing aspect and has the added extra of a grass tennis court. Offers over $4.5 million are being sought.
MORE:
View at www.colliers.co.nz/209313 or call Richard O’Sullivan on 03 365 7887 or 027 292 3921
INVEST IN A SUCCESS STORY – CHICKENS
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Equity Group Opportunity
Located at South Head Road, near Helensville, Auckland, on 17.9 hectares of flat land (two titles) is this large scale Broiler Meat Chicken farm. Comprising of 10 large sheds, 8 being built since 2000 and another two in 2013. A total of 21,704 square metres of shedding, with two four-bedroom homes and one two-bedroom home. This operation has a top management team in place and who have always achieved high standards in the industry. The farm is contracted to Tegel Foods Ltd, supplying close to 400,000 Meat Chicken to the market and is set up with all the latest technology which efficiently operates the sheds. Chicken farming has proven reliable over the last 40-50 years, with an expansion of 7% year-on-year. The last recession period 2008-2013 also proved chicken farming robust and reliable with incomes increasing. Positive points for Investors, are: Strong tenant, 15 year grower’s Agreement, monthly payments, robust income structure with CPI adjustments yearly, positive reports for consuming chicken meat, (Google ‘The coming global domination of chicken’). This operation will ideally suit a family or an equity group who want a solid investment, returning strong yearly net returns. The management team have indicated a desire to stay after the sale.
For Further Information on this Property and Investment: Contact: Kevin Newsome 0274 425 178 Licensed REAA 2008
colliers.co.nz
www.realty365.co.nz
LK0094192©
A PRODUCTIVE 406ha farm in the heart of South Canterbury has a balance of finishing country with established infrastructure to suit a number of farming systems. The farm, 25km from Timaru, operates a lamb and beef finishing operation with large numbers of lambs finished each year with substantial areas of crop and young grass grown. The establishment and growth of consistent winter kale crop – 17ha last year yielded 15t/ha – and short-rotation ryegrasses is the key to this intensive finishing operation.
WHAKATANE DAIRY FARM - 155 HA
70 MOODY ROAD, WHAKATANE Rangitaiki Plains, Moody Rd. Farm held in four titles, total land area, 155.1956 Hectare. Combined with two neighbouring leases, 8 Ha and 7 Ha respectively, to create a 155 Ha milking platform. Land 90% flat, 10% rolling. Well fenced, pumice races maintained using on farm quarry. An extensive irrigation system with three pivot irrigators and sprinkler network for summer safe production. Three water supplies to the property including artesian bore. Currently operated by a 50/50 sharemilker, with management input from Farm Consultant and Trustees on behalf of Family Trusts. Approx. 570 F/Fx cows calved, average production of 200,000 kg ms. through a 40 aside Herring Bone Dairy. Accommodation includes three good homes, self contained cabin and an excellent range of farm buildings. The farm as a whole is very well maintained and offered for sale in excellent order. Detailed Farm Information Memorandum available from the Agents or can be downloaded from the Professionals Website. For sale as Land, buildings and farm chattels. Price will be PLUS GST (if any). For Sale by TENDER closing 12.00 p.m. Wednesday 31 October 2018, at the Office of: The Professionals Whakatane Ltd, 38 Landing Rd Whakatane. NOTE: Will NOT be sold prior. Viewing by appointment with the agents or by attending an advertised open day. Bio-Security protocols will be followed for on farm visits.
FARM OPEN DAYS: WEDNESDAY 10TH OCTOBER 11AM-1PM WEDNESDAY 17TH OCTOBER 11AM-1PM Maurice Butler 0274 514 395 maurice@professionalswhakatane.co.nz
VIEW ONLINE: professionalswhakatane.co.nz / PWK01270
@RuralRealEstateWhakatane
07 307 0165 professionalswhakatane.co.nz Licensed under REAA 2008
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Real Estate
FARMERS WEEKLY – October 1, 2018
Deer, bulls and crops ONE of the North Island’s leading deer farms, Maranoa in Central Hawke’s Bay, is for sale after being farmed for 50 years by the same family. Located 25km west of Waipukurau, the farm spreads over 305ha of predominantly flat contour with a small area of easy country. All bar one of the 60 paddocks are deer fenced and serviced by wide lanes, leading to the deerselling complex where the annual deer sale was long held. Maranoa has been primarily a
Adding to its appeal is an area of wetland in the centre of the farm.
deer farm producing both velvet and venison but has also finished bulls to above-average weights. In winter this year the farm carried 100 R3 bulls and 50 R2 bulls as well as 300 mixed-age stags, 80 three-year-old stags, 150
two-year-old stags, 300 mixed-age hinds and 150 two-year-old hinds. Pat Portas from Property Brokers said Maranoa is equally suited to finishing lambs and in the past has grown cereal crops and process peas, which indicate arable farming could be incorporated into the farming programme. Silt loam soils are growing a largely permanent ryegrass-clover pasture with 3.9ha in permanent lucerne and fodder crops of rape and kale sown for winter as part of the pasture renewal programme.
All this has been regularly fertilised over the years and this past year it has had 29.5t of Sulphurgain 15S plus 7.7t of DAP. Water from a bore is pumped to an elevated tank before being piped to troughs in all the paddocks. Some permanent streams flow through the property and add aesthetic appeal to Maranoa with crossings at bridges or fords. Adding to its appeal is an area of wetland in the centre of the farm with a large pond that provides habitat for water fowl and
opportunities for duck shooting. Set in mature gardens with sweeping lawns and specimen trees is the 220 square metre home with four bedrooms and French doors opening to a patio area and deck. A second home enjoys expansive views over the farm. The deadline sale closes November 7.
MORE:
Visit www.propertybrokers.co.nz ID WR63528 or contact Pat Portas on 027 447 0612 or Bevan Pickett on 027 220 2766
www.primecountry.co.nz
MEAT CHICKEN FARM – FREE RANGE Lincoln – Canterbury
Peter Bauer – Mob 021 979 495 p.bauer@chickenfarms.co.nz www.chickenfarms.co.nz
LK0094620©
Lovely, large, 318m2 house set in picturesque grounds. 5 bedrooms, 3 toilets, spacious living with wood fire. Master bedroom with ensuite and walk in robe. Attached sleepout/office plus separate 3 car garaging. • Three sheds, totalling 2900m2 rearing space • New internal roof lining in all sheds. All upgraded for any future earthquakes • Two bores, supported by two pumps • 2.02ha (5 acres) • Farm contracted to Tegal • Retiring Vendor • P.O.A. For further information please contact
Prime Country Real Estate Limited
Licensed under the Real Estate Agents Act 2008
The farm is 305ha of mostly flat contour 25km west of Waipukurau.
NEW LISTING TENDER
See Drone footage coming soon to our Rural Facebook page.
442 INLAND NORTH ROAD, TIKORANGI
Rural Dairy
160 HA DAIRY FARM IN THE MICRO CLIMATE OF TIKORANGI
tsbrealty.co.nz TSB6976
This 160ha Dairy farm is situated at 442 Inland Road North, Tikorangi, the land is flat to gentle rolling, with the lay out in several titles. This property is self contained where all stock are reared on the property, currently milking 320 Ambreed bred cows and averaging around 180,000 m/s with the best season of 197,000 m/s. The cowshed is a 24 bail rotary, outstanding large calf rearing shed and good support buildings, an excellent feed-pad. Three houses. This property is what dreams are made of - best location - micro climate - production - self contained. OPEN DAYS - Wednesday 24th and 31st October 2018 at 12.00 - 1.00pm, Wednesday 7th November 2018 at 12.00 - 1.00pm
Tender - Tenders close 1.00pm, Wednesday 14th November 2018, 120 Devon Street East, New Plymouth
Brendan Crowley M 027 241 2817 brendan.crowley@tsbrealty.co.nz
120 Devon St East New Plymouth | 06 968 3800 | Mon - Fri 8.30am - 5pm, Sat 10am - 12.30pm 21 Bell Block Court Bell Block | 06 755 4451 | 27 Rata St Inglewood | 06 968 3800 | Waitara | 06 754 4195 tsbrealty.co.nz | @tsbrealtyruralteam |
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FARMERS WEEKLY – October 1, 2018
Real Estate
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A big pond in the centre of the farm provides habitat for water fowl and duck shooting opportunities.
Maranoa has been primarily used to produce both velvet and venison.
A big homestead has four bedrooms and French doors opening to a patio and deck.
COASTAL
MAROKOPA, 1445 Marokopa Road
Exclusive Coastal Residence
$875,000 View: By appointment
The photos speak for themselves, this is not your average
beautifully tiled bathrooms, this home lends itself to home
holiday home, and the replacement value of this attractive home
hosting, or the upstairs area could be utilised as a private, B&B
far exceeds the current asking price. This unique home offers the most amazing views of all aspects of this rugged yet scenic west coast location ... taking in magnificent ocean views, the river mouth as well as the surrounding rural country side.
www.harcourts.co.nz/OH7939
making good use of the kitchenette attached to the master suite. Well set up for business or pleasure, with good shedding and storage areas, internet and mobile phone coverage. Our vendors
Open plan living with stacking doors and an abundance
are on the move and will seriously consider all reasonable offers.
of outdoor entertaining areas, four double bedrooms, two
Call Kerry or Karen today to find out more.
Kerry Harty P 07 873 8700 M 027 294 6215 E kjharty@harcourts.co.nz Karen Lennox P 07 873 8700 M 027 559 4468 E kjharty@harcourts.co.nz
Otorohanga Blue Ribbon Realty Ltd mreinz Licensed Agent REAA 2008
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Real Estate
FARMERS WEEKLY – October 1, 2018
Consistent
An extensive irrigation systems includes three pivots and sprinklers and has consent to take water from the Tarawera River.
The farm infrastructure includes ample support buildings, three houses and a cabin.
FLAT, FREE DRAINING & ATTRACTIVE Cnr Sandon Block Road and SH 54, Vinegar Hill, Hunterville Situated just north of Hunterville, this stunning 80 acre property is only 2.5km off SH1. Soils are Kawhatau series; very free draining silt loams over gravels, ideal for wintering cattle. Enjoying an excellent fertiliser history, the young pastures are divided with very good quality post and batten fencing and central lane. Livestock and domestic water is gravity fed from a spring. The four bedroom home and attached 2.5 car garage, has two living areas, with kitchen and bathroom renovations. Hunterville school bus passes property. Other improvements incl. good sheds and cattle yards. See video on website.
32.52 hectares Auction nzr.nz/RX1605701 Auction 2pm, Thu 18 Oct 2018, Feilding Club, 25 Kimbolton Road, Feilding. Peter Barnett AREINZ 027 482 6835 | peter@nzr.nz NZR Limited | Licensed REAA 2008
A 155ha eastern Bay of Plenty dairy farm operated by a sharemilker with input from the farm consultant and trustees has a set-up that will appeal to investors as well as families. The farm is located in the southwest corner of the Rangitaiki Plains in an area known as Onepu and the milking platform includes two neighbouring leases of 8ha and 7ha while a 38ha block nearby is leased for drystock and supplements. On this mix the farming operation with its 50:50 sharemilker at the helm calves 570 Friesian and Friesian-cross cows to achieve an annual production average of 200,000kg of milksolids. Most of the farm is flat with a small area of rolling contour, enabling an extensive irrigation system to operate that includes three pivot irrigators and sprinklers using a consent to take water from the Tarawera River. Maurice Butler from Professionals Whakatane says the irrigation gives the farm the ability to achieve consistent seasonal production figures while enjoying one of the sunniest climates in the country. Quality presentation and infrastructure mean business
can continue as usual for a new owner or investors. The dairy is a 40-aside herringbone and the infrastructure includes ample support buildings, three homes and a self-contained cabin. The farm is subdivided into 35 paddocks plus the two lease blocks and they are all connected by an extensive race system with a pumice surface taken from a quarry on the property. Between the team of sharemilker, farm consultant and trustees the farm operates a system three under the DairyNZ production system with supplements made up of 200t of palm kernel, 100t of grass silage and 100 bales of hay that is bought in. For seven weeks in winter 400 cows are grazed off the farm while young stock are grazed off from April to April locally before being sold as R2s and calves are reared to weaning then grazed on the drystock lease block until April. Tenders for the farm close on October 31.
MORE:
Viewing is by appointment or on the October 10 and 17 open days from 11am to 1pm. Contact Maurice Butler on 027 451 4395
FARMERS WEEKLY – October 1, 2018
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farmersweekly.co.nz/realestate 0800 85 25 80
New Zealand’s leading rural real estate company
Eagle Hill - 369 Waimakiriri Gorge Road This most impressive 574.4791ha multi-purpose property is situated on the north bank of the Waimakiriri River just 16km to Oxford. Almost fully irrigated, it has been extensively used for dairy support in recent years and would equally be as well suited for large scale cattle finishing. Features include central location, irrigation consent and infrastructure, nutrient baseline, extensive shelter, approx. 38ha woodlot, fencing including approx. 80ha deer fencing, lane system and ease of access. With two dwellings and a full range of farm infrastructure, this property is the complete package. pggwre.co.nz/CHR29018
The dairy is a 40-aside herringbone.
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PGG Wrightson Real Estate Limited, licensed under REAA 2008
View Hill DEADLINE PRIVATE TREATY Plus GST (if any) (Unless Sold Prior) Closes 2pm, Thurs 1 November
Peter Crean M 027 434 4002
pcrean@pggwrightson.co.nz
Sam Davidson M 027 488 8269
sdavidson@pggwrightson.co.nz
pggwre.co.nz
New Zealand’s leading rural real estate company RURAL
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Ruawai
Large Dairy Farm • What a great opportunity to purchase two dairy farms • Consisting of 319.1524 hectares • Main dairy farm is milking 500 cows with an average milk production of 173,000kg MS • Smaller farm is milking 200 cows with an average milk production of 67,000kg MS • Contour is mainly flat to rolling • Limestone quarry, great for farm races or foundation work • Three family homes • Call me today for further information
SALE BY DEADLINE Plus GST (if any) (Unless Sold Prior) Closes 2.00pm, Thursday, 8 November
pggwre.co.nz/DAG27809
Ron Grbin B 09 439 3354 | M 027 471 6388 rgrbin@pggwrightson.co.nz
EXCLUSIVE
Vendors Ready To Move On • 147 hectares productive fertile land, 70% tile drained • Large three bedroom modernised and renovated Kauri Villa • Three bedroom Villa second home • 27ASHB cowshed with new ice bank for refrigeration, five and four bay calf implement sheds • Feed pad, calving pad, maize bin • Milking 310 cows once a day this season pggwre.co.nz/DAG29023
Dargaville $2.9M Plus GST (if any)
Megan Browning B 09 439 3344 M 027 668 8468
mbrowning@pggwrightson.co.nz
PGG Wrightson Real Estate Limited, licensed under REAA 2008
Intensive Cropping and Finishing • 'Tahuna' 579.8ha (1432.9 acres) comprising six Certificates of Title with good access to all blocks • Located 11km north west of Waipawa • Excellent contour with consents in place for 80 hectares of surface take irrigation • Improvements include four dwellings, three stand woolshed, two sets of cattle-yards, two sets of sheep-yards, haybarns plus a consented feedlot • Cropping maize, barley, potatoes and fodder crops • Properties of this location, size and contour, with trout fishing on the boundary seldom become available pggwre.co.nz/HAS28763
Central Hawke's Bay DEADLINE PRIVATE TREATY Plus GST (if any) Closes 4.00pm, Thurs 8 Nov PGG Wrightson, Hastings
Doug Smith B 06 878 3156 M 027 494 1839
dougsmith@pggwrightson.co.nz
Paul Harper B 06 878 3156 M 027 494 4854
paul.harper@pggwrightson.co.nz
pggwre.co.nz
New Zealand’s leading rural real estate company RURAL
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TENDER
Dairy with Diversity - Land Area: 262.3 Hectares 218 Awahou Road and 298a Reid Road A large, high producing farm, currently running dairy and dairy beef, on fertile, loam soils, approximately 15 km south-east of Whakatane Township. Approx. 90 percent of the total area is easy to medium contour. Currently milking 500 dairy cows, best production is 200,000kgMS, milked through a 44 aside herringbone dairy. Approx. 70ha is deer fenced, with a dark room and deer yards. There is a two-stand woolshed, covered sheep yards, two implement sheds, a work shop, barns, and an airstrip. Pinus Radiata, ready to mill, was planted in 1996 and 1994, is certified, pruned and lifted and covers 13.1ha. Dwellings consist of a four bedroom homestead, a four bedroom manager's house and two three bedroom cottages. Successfully farmed by the same conscientious family for 122 years. The three current owners have made a big decision, retirement is their wish, and for them now is the time to sell. For the new owner, this farm offers, scale, rich soils on good contour in an ideal growing climate, with a diverse infrastructure. pggwre.co.nz/WHK29012
PGG Wrightson Real Estate Limited, licensed under REAA 2008
Whakatane TENDER Plus GST (if any) (Unless Sold By Private Treaty) Closes 4.00pm, Thursday 1 November
Phil Goldsmith B 07 307 1620 | M 027 494 1844 pgoldsmith@pggwrightson.co.nz
pggwre.co.nz
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