Farmers Weekly NZ September 2 2019 by AgriHQ

3 M bovis hassles cut

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Vol 18 No 34, September 2, 2019

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Targets missed So will axe swing on Fonterra staff? Hugh Stringleman hugh.stringleman@globalhq.co.nz

AIRY farmers and Fonterra unit investors must be prepared for more bad news from the co-operative on September 12 when the 2019 annual results are disclosed. The directors and the senior management team have not yet achieved the major targets set by then-interim chief executive Miles Hurrell a year ago. They were to reduce debt by $800 million, to reduce operating expenses to the level of 2017 and to achieve a return on capital of at least 7%. His nominated target date was July 31 this year for the debt reduction and July 31 next year for the opex cuts and ROC. After the massive $800m-plus write-downs announced two weeks ago and the advice by chief financial officer Marc Rivers that asset sales are still being negotiated the debt reduction has not been achieved on deadline. Despite a positive trading

result in 2019 the writedowns and a massive forecast reported loss between $590$675m, return on capital will be negative. At the annual results presentation Hurrell will reportedly announce large job cuts among Fonterra’s 22,000 employees to help meet the operating expenditure target. He will swing the axe in New Zealand and Australia, where the so-called home markets are haemorrhaging. Rivers re-valued the market shares, future earnings and brand goodwill and advised write-downs totalling $270m be announced immediately, instead of waiting for September 12. Despite consistently good farmgate milk prices for the past three seasons Fonterra has been unable to deliver earnings and dividends from its margins and value-add activities. A groundswell of farmer opinion favours the cooperative going back to NZ-only processing and exporting, at which it is among the most efficient dairy companies in the world.

MORE: WHAT OTHER FARMERS SAY P4-5

Look at yourselves Richard Rennie richard.rennie@globalhq.co.nz RICHARD Cookson, of Te Aroha, says Fonterra’s critics should take a back seat while the co-op resets itself. He also wants fellow shareholders to think harder about how much Fonterra reflects their own values and goals. “Really, concerns over dividend, milk price models and payments, these are secondary. “Where Fonterra needs to be heading goes far deeper and demands all shareholders take a good, hard look at who they are, what they have become and how much their co-operative reflects that,” Cookson, who runs five family cattle and goat farms, says. Any reset demands a cleansing of what he describes as a toxic culture at board level between farmer directors, something he believes is well under way under chairman John Monaghan. “And the best way he can go forward is by saying ‘this is on me’. He can be humble about the mistakes that have been made, apologise for how things have become what they are and go from there.” Cookson maintains most shareholders knew in their hearts the co-operative was going to get to this point and all, including himself, have to accept some responsibility for that happening

OWN UP: Farmers must take some responsibility for Fonterra’s problems, farmer Richard Cookson says.

rather than making it an us-andthem issue between farmers and management. “As a group we accepted performance was everything. That was our key KPI. So you cannot blame Theo Spierings for his bonuses. He was paid based on that KPI, that was what we valued.” That has left the co-operative bankrupt of social values that now need to be stocked up. “This will be hard for farmers to hear, that Fonterra reflects back on what we as farmers became. “There has been a level of

arrogance there in dairying as an industry.” He hopes any strategy revamp goes beyond dollars and cents and acknowledges the need for deeper co-operative values to be restored, where shareholders look out for one another and get to feel more integrated with their co-operative. “To have a better co-operative we need to stand up for values that I think have fallen away throughout our rural communities over the years when it comes to relationships and caring about each other.”

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NEWS

WEATHER OVERVIEW New Zealand’s weather this week kicks off with a great big high pressure system over the country and a developing sub-tropical flow likely to peak on Tuesday. A sub-tropical rainmaker will affect the North Island this week. It is a little complicated how it will precisely pan out but there’s a chance for some heavy rain, especially in the upper North Island. By the end of this week we’re getting back in to a more traditional spring with the cooler west to southwest winds that might create a small low or at least unsettled weather this weekend. Next week might be a continuation of this pattern with some high pressure and potentially another low pressure system.

23 Canada trip a good learning experience

Visiting cattle ranches in Canada has made Heather Gee-Taylor appreciate the advantages of farming in New Zealand.

Newsmaker ��34 New Thinking ��35

ON FARM STORY

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Wind

Rain Rain this week is a little spotty and hard to lock in because of the subtropical system affecting us for a time. It means there’s an increased chance of wetter than usual conditions in the upper North Island but it’s likely to be drier than average elsewhere.

This week kicks off with light winds then a developing northerly quarter wind. Depending on the low with sub-tropical connections pans out we might have brisk easterlies for a time in the north. Late week most have west to southwest winds returning.

Highlights/ Extremes

Opinion ��36 World ��44

NZX PASTURE GROWTH INDEX – Next 15 days

Temperature It’s warm to begin with this week with warmer-than-average afternoons across a large part of the nation. By mid week a sub-tropical system brings mild nights then, once it clears, temperatures drop back on Friday and Saturday with southwesters.

We have a few lows in the forecast for the next week or two. The one with sub-tropical connections this week is a little tricky to perfectly lock in so expect some changes in local forecasts as models flip-flop a little.

14-DAY OUTLOOK

Most places have perfect soil moisture conditions – not too wet and not too dry. There might be some slight hints of a drying out phase getting under way now but it’s only slight so far and compared to historical soil moisture maps most places appear to be precisely where they should be but many places still have an overall rainfall deficit, especially northern NZ. A mix of high pressure, sunshine, mild days and some sub-tropical rain bodes well for positive pasture growth.

SOIL MOISTURE INDEX – 29/08/2019

42 Chasing the rainbow He can play it for laughs and he can play it serious. There’s a discerning side to social media star farmer Tangaroa Walker.

REGULARS Real Estate ��45-50 Employment ��51 Classifieds ��51-52 Livestock ��53-59 Markets ��60-64 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks toWeekly our Farmers Weekly and Dairy Farmer advertisers Farmers this week: $1251. 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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News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

M bovis farm test times cut Annette Scott annette.scott@globalhq.co.nz ON-FARM sampling for Mycoplasma bovis is about to become a lot less stressful for farmers. The M bovis programme is changing on-farm sampling protocols and how it interprets results from ELISA testing of blood samples. The changes will cut the time many farms spend under active surveillance and notices of direction. “This is a positive step forward in reducing the impact on farmers from sampling and testing for M bovis,” Ministry for Primary Industries chief science adviser Dr John Roche said. “Our scientists have analysed the results from hundreds of thousands of samples and from that they have refined our sampling criteria to effectively halve the number of rounds of sampling and testing required for many farms while ensuring we still correctly identify infected management groups.” The changes mean where possible blood samples will be collected from more cattle each time a property is visited. Only one round of sampling

MANPOWER: It’s fair to say the Mycoplasma bovis response programme is now over-resourced, its director Geoff Gwyn says.

and testing will be required if the results are negative. “It is important to keep in mind that more testing might be required in the future if other risk events are found,” Roche said. Beef + Lamb technical policy manager Chris Houston said many

beef farmers will have to wait only half as long for an all-clear and get back to business as usual. “It could mean a reduction of up to five weeks of waiting for farmers to get a result, which is a great step forward,” Houston said. DairyNZ biosecurity policy

adviser Nita Harding said “These changes will reduce the impact of on-farm sampling for many dairy farmers under active surveillance. “The majority of these farms are not infected and these developments in the testing mean we will be able to determine their disease status faster and with less disruption to their farming activities.” The programme is also changing the way it interprets ELISA results based on expert analysis of the hundreds of thousands of samples. There will no longer be suspicious results – only positive or negative. Meanwhile, eradication of Mycoplasma bovis continues to be a realistic goal despite the case surge that created a programme blip leading into winter. “Yes, we had a backlog but the casing surge has not had any negative impact on the overall programme,” M bovis programme director Geoff Gwyn said. “In fact, it’s given us a far stronger sense of what the casing programme looks like. “We always said it would be a 10-year programme and the first two years would be the heavy lifting years. That’s not changed.”

MPI increased staff numbers with more leadership in the disease management functions to cope with the case surge and factor in the ebbs and flows and spikes and weaknesses of the programme. “In fact it would be fair to say we are over-resourced now,” Gwyn said.

This is a positive step forward in reducing the impact on farmers from sampling and testing. Dr John Roche MPI The goal to have 90% of the decisions made on the ground by regional managers is on track. “It’s what farmers asked for and we realise that’s what needs to happen and so we are putting capability into headquarters. “We are not quite there yet but we are getting to the point where regional managers will be making 90% of the decisions on farms with farmers.”

Landcorp pays out on Westland takeover gain Alan Williams alan.williams@globalhq.co.nz LANDCORP is paying a $5 million special dividend to the Crown from its gain on the sale of Westland Dairy Co-op shares. The state-owned farmer made an operating profit for the year ended June 30 but an after-tax loss of $11m, much of it because of a $22m fair-value write-down on livestock and forests.

The year was challenging for farming because of dry conditions causing a marked slowdown in milk production, chairman Warren Parker and chief executive Stephen Carden said. Landcorp, which trades as Pamu, had earnings before interest, tax, depreciation, amortisation and revaluations of $34m, down from $48m a year earlier. The bottom-line earnings compared with a figure of $34m

the previous year, after values were written up by $25m. Latest trading reflected external factors affecting the group but Landcorp is determined to improve this year, Parker and Carden said. Total revenue was $241m, down from $247m, with lower milk, livestock and carbon credit revenue. The latter were down to $3m from $8m. Though milk and red meat

prices remain relatively high they were offset by weather extremes lowering production. Milk is an important revenue sector and the group is focusing on A2 and organic milk production. Parker said subsidiary businesses are making good progress and will become significant contributors. They include Melody Dairies (35%-owned), which is building a milk drying facility near Hamilton

and the 50%-owned Spring Sheep Dairy, achieving growing offshore demand for its products. Landcorp continues to invest in forestry, which will position it well as it looks at future carbon emissions regulation. The company did not detail its return on the Westland investment after the dairy group’s takeover by Chinese interests. The annual report is usually presented to Parliament in October.

My holiday starts the day I set stock to lamb “We have consistently produced 150% survival to sale for the last ten years, with at least half sold prime, and the balance sold store, due to our very short season. The ewes are shorn and set stocked, and I leave them to it. We have a very simple system where all ewes, including two tooths, are run in one mob from February onwards. Any light ewes are mated to a terminal, but that’s only about sixty two tooths and a few mixed age ewes”. Dougal and Mary Cottier run 2200 ewes on 980ha near Albury, South Canterbury. The property runs from 480 to 850 metres above sea level, and consists of mainly tussock hill paddocks.

“The Wairere sheep are just easy to farm”.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Farmers lament losse “But we are going to have to separate supply from shareholding to help keep both suppliers and some capital. Rather than have to go to another company if you sell your shares, why not allow people to continue to supply, far better to keep the blue tanker coming up their drive than another company’s.”

I would rather see it floated than have to put any more money into the co-operative.

Lloyd Downing Morrinsville 540 cows LONGTIME Fonterra supplier Lloyd Downing laments the $2.5 million hit his equity has taken over the past two years, of which about $400,000 is in Fonterra share devaluation. His first step in any future strategy requires Fonterra to stop the leakage of milk to competitors. He maintains it is absolutely vital milk keeps flowing through Fonterra plants, regardless of the supplying farmer’s share ownership structure. “Once upon a time Fonterra knew you could convert a sheep farm to dairying and that supplied their new growth and new funds to match it. “Those days are gone. The only thing saving us from a mass loss of suppliers is the lack of competitive manufacturing capacity. Fonterra now say they want to add value to New Zealand milk but to do that they need money and they don’t have that.

Secondly, Downing called for consideration of a new company structure. This would include a 100% co-operativeowned collector/milk processing company. “And right alongside that sits a 51% farmer owned operation adding further value, with the 49% remaining floated.” It is a proposal similar to that put up by Fonterra’s first chairman Sir Henry van der Heyden over a decade ago and roundly rejected by shareholders at the time. But Downing said desperate times call for desperate measures and he cursed the co-operative Taliban who would die in a ditch rather than see the co-operative structure dissolved or altered. “I would rather see it floated than have to put any more money into the co-operative. “But this all requires an evolution, if not a revolution and I am not sure the board is up to it.” His ambivalence about putting more money into the co-operative is shared by other suppliers wary of how much their co-operative’s share value has fallen.

“But I guess, if push came to shove then that may have to happen.” Downing is deeply concerned it has been poor directorship that has got Fonterra to where it is and wants to see a rework on how directors are chosen, along with any strategy reveal. “Fonterra director elections have been too much of a popularity contest rather than being based on true business skills.”

Stephen and Rhonda Korteweg Stirling, Otago 500 cows FONTERRA must rebuild its connection with suppliers if it is to secure their buy-in for its new strategy. Previous management overcomplicated the strategy for farmers, who stopped engaging with the co-operative or shifted to a competitor. “They over-complicated something that was pretty simple – process milk and sell the products – to the point where they have lost engagement with farmers.

“It comes back to the company not engaging with suppliers. If they were, farmers would not be leaving. “But whenever a competitor builds a plant it is over-subscribed before the paint dries and that is a real concern as a Fonterra shareholder. “When we go to meetings we want things kept in layman’s terms: Where are we? What do we want? We want to feel valued.” Fonterra must continue paying a competitive milk price to retain suppliers. “As a dairy farmer and supplier I want a milk price that makes it difficult for our competitors. I don’t care how high so long as they can afford to pay it, as long as it doesn’t make it easy for competitors.” The co-operative also needs to be profitable. “The share price speaks for itself. There is not a lot of confidence about where we are heading now. “The strategy needs to encourage sustainable farming if we are to have a sustainable future.” And it is sensible to look for markets other than China given trade tensions with the United States. “Value add has to be part of the strategy. DairyNZ and farmers realise pushing volume is not a great future and adding value is where we must go. Geoff Crawford Hikurangi, Northland 1500 cows FONTERRA must retain its 10,000 supply farms because new processors seem to have no trouble attracting suppliers. As shareholders walk away from membership the huge company debt gets shared over smaller

numbers of farmers and their milksolids production. It must also tackle the culture of arrogance and excess most evident when it moved into a new building in Auckland rather than go to Hamilton, where farmers believed it should be.

“We are carrying two more (Fonterra) employees per farm at a cost of probably $100,000 a year each.” Put that employee cost in with the share capital requirement and the co-op debt and each farm has up to $1 million of Fonterra overheads. “No dividends on that size investment is very bad news.” The value-add strategy has not worked so Crawford is open to a split of the co-operative into a farmer-only processing co-op and a value-add company with outside investors. The Shareholders’ Council might as well pack up because it will never upset the cart and demand much-needed accountability. “Fonterra has lost an enormous amount of money but no-one seems to be held accountable.”

News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

s but back their co-op getting rid of what is not making money. Bell worries about how many directors oversaw and approved Theo Spierings’ ideas that eroded millions of dollars of dairy farmers’ equity. The losses have been huge and naturally people are scared. “Confidence is definitely shaken but I love the idea of a cooperative and I still back Fonterra. It’s tough times but it will get better making changes back to what we do well.”

Colin Glass Dairy Holdings 50,000 cows FONTERRA was too slow to recognise its value-add investments weren’t performing. Therefore, farmers buying shares paid too much and executive bonuses were paid out on inflated values. The lack of Fonterra dividends has affected the equity and loanto-value ratios for Dairy Holdings (59 South Island farms) and the falling market value of supply shares has resulted in higher costs of debt. This was happening while the Reserve Bank was asking banks to retain more capital to strengthen their own balance sheets. “The milk price model is fine and shouldn’t be tinkered with.” The new strategy has to be clear about delivering value for NZ supplying shareholders and the company has to actually deliver on the strategy in an uncompromising way. Fonterra’s issues must be resolved and it should not focus on capital structure.

Matt Bell Ashburton 2000 cows FONTERRA has to survive for the good of the whole New Zealand dairy industry and has to be healthy as virtually all the other dairy companies are tied to the Fonterra payout. “It doesn’t need to try to conquer the world. That’s been the humungous mistake. “Our little niche part of the world made us successful in the first place. Trying to deliver away from core business is how we got here today.” Value-add strategy must focus on grass-fed. “Surely, grass-fed is our lowhanging fruit to extract value. Why is every dairy product coming out of NZ not grass-fed?” This is a big ship and it won’t turn in one year but what Miles Hurrell is doing is positive in

Don Moore McNab, Southland 350 cows NEW Zealand’s dairy industry needs to play to its strengths to differentiate products from competitors and command even higher premiums. “The strategy has to be around our strengths as a low emitter of emissions per kilogram of milksolids and low cost of production. It’s what we do better than anyone else in the world.” Moore questions the merits of capacity adjustment saying the

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payment encourages high-cost feeding at the shoulders of the season. “Capacity should not be part of the company’s strategy. “Our success is because our milk production is linked to the grass growth curve but Fonterra has encouraged us to go away from that model to reduce the interest costs on stainless steel.” Animal welfare and environmental issues are challenges but also opportunities to enhance NZ’s provenance for which consumers will pay even greater premiums. “All the things we are up against – animal welfare, Southland wintering and water quality – are not threats but opportunities and if we get ahead of them that’s when we will get price premiums.” Value-added products must be part of Fonterra’s strategy but, more importantly, the plan needs to be understood. “Farmers and consumers need to understand the strategy and all have buy in. It must be embraced by farmers and led by farmers because being led by farmers it will get respect.”

THE main objective of Fonterra’s new strategy must be to restore confidence and respect in the cooperative, within farmers and the wider community. “The industry has been hammered over the past 18 months or so.” It must also extract as much value as possible from New Zealand’s grass-fed milk production. That will not necessarily be fast-moving consumer goods because there are many other ways of getting value from milk and the rest of the country doesn’t appreciate that. Farmers rely on their directors

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to be guardians of the cooperative and those directors have more restricted ways of raising capital than corporates. “Co-ops have different risk profiles and they must remember that.”

Co-ops have different risk profiles and they must remember that. Farmers don’t want to know the details of strategy but that their representatives can develop the right one and employ the right people to implement it. The milk price model needs to deliver the highest credible payout possible and the dividend is almost a conundrum, McCallum said. Fonterra’s competitors would like the milk price to be lower but that is not in the interests of NZ dairy farmers.

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“It will take time to rebuild the goodwill of farmers. “This is the wrong time to seek additional capital from any source.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Farmers efforts to be rewarded Neal Wallace neal.wallace@globalhq.co.nz THE sheep and beef sector will soon learn if it is carbon neutral while the Government moves to let farmers offset their emissions. Beef + Lamb chief insight officer Jeremy Baker believes some sheep and beef farmers are probably carbon neutral given their areas of native bush and tree plantations but they are not formally recognised. Climate Change Minister James Shaw is asking his officials how existing carbon sequestration on farms can be recognised. “The Government wants to see a system where positive choices farmers make that are good for the climate are recognised. “This includes questions around native bush, shelter belts, riparian planting and soil sequestration,” Shaw said. Canterbury University has been contracted by B+LNZ to calculate the sector’s overall net carbon position, taking account of the 1.4 million hectares of native forest and 180,000ha of exotic forest on private land. B+LNZ is also developing a system where individual farmers can calculate their carbon position and, if it is neutral, to be formally credited. Baker says that will provide incentives for farmers to offset their carbon emissions but it will require changes to the Emissions Trading Scheme so native bush and small woodlots, regardless of age, are recognised as carbon sequestering. Caring for existing trees and strategic new planting of trees also appeals to Environment Minister David Parker and Conservation Minister Eugenie Sage who are supportive because of benefits to water quality, erosion and biodiversity. Because the Government has split reduction targets for methane from carbon dioxide and nitrous oxide and debate over whether methane is absorbed by trees farmers cannot offset methane emissions through sequestration. International agreements mean

NEW MOVES: Efforts are being made to measure the carbon storing capacity of pastures and soils.

This includes questions around native bush, shelter belts, riparian planting, and soil sequestration. James Shaw Climate Change Minister the volume of carbon absorbed by 1.4m hectares of native bush on privately owned land, small woodlots, soil, pasture and animal production cannot be used to calculate a farm’s carbon footprint. It allows only forests planted since 1990 to count as carbon sequestering and they must be at least 1ha, have crown cover of more than 30% and an average width of crown cover of at least 30 cubic metres. Trees planted before 1990,

grassland, soil, narrow shelter belts, gorse and broom are excluded. Every 1ha of pines will sequester 28 tonnes of carbon a year until harvest, whereas native bush will continue sequestering carbon, albeit at a slower rate, for hundreds of years. It is not just trees that absorb carbon dioxide, so do soil, grass and animal products such as wool to varying degrees. Grazing ruminants sequester small amounts of carbon for a short time but scientists say those minor benefits are outweighed by the impact of methane generated. NZ Wood reports trees take and store carbon from the atmosphere, which constitutes about 50% of tree dry mass, but once cut down and left to decompose, carbon is released to the atmosphere. Carbon remains in logs harvested for use in wood products. Pasture absorbs carbon from

the atmosphere to enhance growth, livestock eat the grass, excreting some carbon and generating methane, leaving the rest in their milk or flesh which is eventually returned to the atmosphere. Wool does contain a large amount of carbon. The International Wool and Textile Organisation calculates 40% of the weight of clean wool is biogenic carbon, which readily breaks down into soil to start the cycle over again. NIWA reports a well-managed pasture can sequester carbon in the foliage and soil but growing grass also produces carbon, albeit at a much lower rate than trees. Fertile pastures absorb it at a rate 20% greater than arid areas though carbon is released by decomposing vegetation. The Interim Climate Change Committee has rejected the notion of using soil to store carbon, saying the science is not definitive.

But research is continuing and scientists believe soil on slopes less than 20 degrees offers potential storage. Plant and Food Research principal scientist Dr Mike Beare says soil high in both clay and mineral surface area has the highest carbon absorbing qualities. An estimated 60% of highproducing grasslands have potential to store carbon in the topsoil but most of them are near saturation. Research shows the greatest storage potential is in the subsoil deeper than 15cm but that requires sowing deep-rooting plants that will deposit carbon and using fill inversion tillage systems for pasture renewal. Inversion tilling buries topsoil carbon and replaces it with low carbon subsoil brought up to the surface from a depth of 25cm to 30cm. It involves ploughing only once every 20 to 30 years.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Sheep, beef farms still in profit Richard Rennie richard.rennie@globalhq.co.nz DESPITE continuing positive prospects for hill-country farming incomes latest survey results indicate the typical property will struggle to pay for compliance measures. The latest Agfirst farm financial survey for Central North Island sheep and beef hill country properties indicates a drop from the previous year’s profits. The survey bases its forecasts and costs on a model farm, representing 1600 farms across the central North Island including Waikato, Waitomo, Ruapehu, Whanganui, Rangitikei and Stratford Districts. But despite profits being at historically high levels Agfirst agribusiness consultant Steven Howarth said farms appear to be only just keeping pace with depreciation and re-investment demands with little left for impending compliance and environmental demands. Many farms in the catchment face the Waikato Regional Council’s Plan Change 1 which limits nitrogen applications, stocking levels and requires greater levels of fencing around waterways. The farm profit for this year is estimated to be $104,000 down from $126,000 for 2018-19. Farmers are forecast to be able to continue to make debt repayments of $24,000, the same as last season, reducing average farm debt to about $1.6 million.

DISCONNECT: Positive meat and dairy returns are not reflected in farmer sentiment, Agfirst consultant James Allen says.

That represents a repayment rate that is half the amount needed to repay a 20-year mortgage. Steven Howarth Agfirst “That represents a repayment rate that is half the amount needed to repay a 20-year mortgage.” While still at historically high

levels, the drop in farm profit this season is attributed to a fall in lambing percentages and expectations there will be a slight cut in lamb returns. Meantime, that drop is slightly offset by a lift in cattle income while wool returns continue to languish, down 3%. Higher minimum wages account for the largest percentage of a 9% costs increase along with fertiliser costs rising 5%. Agfirst expects to see hill country farm repairs and maintenance costs actually drop by 7%, thanks to farmers largely catching up over the past four years on deferred maintenance. Howarth said the level of uncertainty over how greenhouse gas rules will play out is a cause for concern as is the number of farms being sold for forestry though those sales are helping keep farm balance sheets looking healthy. Average farm land values are estimated to lift from $4.8 million ($8406 a hectare) in 2018-19 to $4.893m ($8570/ha) for this year, partly in response to strong demand for land for forestry. That contrasts with dairy land, expect to fall 10% this season. Sheep-beef farmers also sit in a more comfortable debt to asset position compared to their dairy farmers, at 28% debt-assets, compared to 40% for the model dairy farm. Agfirst partner James Allen said the relatively positive returns in both sectors are not reflected in farmer sentiment.

Trade woes smack wool prices Alan Williams alan.williams@globalhq.co.nz MOST fine and mid-micron wool prices slumped at Thursday’s Christchurch sale because of the United States-China trade war. It’s had significant impact on buyer confidence, PGG Wrightson South Island sales manager Dave Burridge said. Some values are down as much

as 15% in just two weeks. An exception was the best Merino wool, which held value. The market is very fluid. Generally, Merino fleece, 16 to 20 microns is 2%-12% cheaper with less-stylish wools most affected and the mid wools, 25-30 microns, fell by 17%-19%. The market rout applied also to strong wools, except for the coarser end, with some 37-39

microns fleece slightly firmer. Crossbred second shear was slightly weaker across the board though oddments were steady in price. The weaker market comes at a time when the kiwi dollar has fallen to new lower levels against the US dollar. The pass-in rate for the sale was a high 23%, failing to meet vendor reserve levels.

“That is particularly the case with dairying. “What is bringing everyone down? It is compliance creating uncertainty, perceptions of the sectors and, for dairying, the balance sheet has taken a bit of a hit.” However, he maintains the top 25% of farmers can cope with the demands of compliance and lower carbon outputs and are well placed to benefit strongly from opportunities.

“We are seeing land prices lower in some cases. “It’s harder on balance sheets but is also creating opportunities for younger farmers. The same applies to the lower Fonterra share price.” He urged rural professionals including advisers to work hard with their clients to identify where the opportunities lie in coming years, with many of the changes on the doorstep rather than the horizon.

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Yuan looks sweeter for Kiwi exporters Alan Williams alan.williams@globalhq.co.nz THE kiwi dollar could be headed lower against the Chinese yuan over the next few months, helping exporters, Westpac currency strategist Imre Speizer says. At just above Y4.53 to every dollar the kiwi is trading about the middle of its range over the last four years or so and, for rural exporters, favourably down from the average of about Y5/NZ$1 from 2010 to 2014. The dollar is falling faster against the US dollar than the yuan is because the latter is officially linked to the greenback and being slowly depreciated by the Chinese central bank while the kiwi is falling quicker through market forces, Speizer said.

That trend could take the dollar below Y4.5. A move from Y5 to 4.5 over the years is a moderate, about 10%, cheapening of the kiwi and makes our goods more attractive to Chinese buyers. Most New Zealand exports to China are sold in US dollars but both sides of the transaction have to be unwound into the buyer and seller currencies eventually, he said. Westpac believes the kiwi could fall to 0.625 or even 0.62 over the next six to 12 months. Markets have priced in the equivalent of 4.5 more cuts to the US Fed core rate over the balance of the cycle but Westpac’s view is just three more cuts. If that is borne out, the US dollar will strengthen further against all comers.

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10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Beef advantage will disappear Nigel Stirling nigel.g.stirling@gmail.com THE significant tariff advantage beef exporters have had over their American rivals in the Japanese market since the start of this year looks likely to be shortlived. Japan’s tariff on beef imported from New Zealand and the other nine countries in the Comprehensive and Progressive Trans Pacific Partnership trade deal was slashed from 38.5% to 26.5% on December 30 last year and will fall to 9% by 2033 through a series of smaller cuts. American producers had those gains snatched away from them when United States President Donald Trump withdrew from the deal just days after being elected in November 2016. Trump said he preferred oneon-one talks so the US could use its status as the world’s largest economy to maximum effect to get the best possible deal from negotiating partners. He began courting Japanese Prime Minister Shinzo Abe soon afterwards and it appears now

the bet has finally paid off with the pair announcing at the G7 meeting in France a deal has been reached in principle. International media reported tariffs on American beef and pork will be brought into line with those on imports from CPTPP countries in return for Trump postponing proposed tariffs on Japanese car imports. Japan also agreed to buy US corn to supplement insectdamaged local crops. Tariff cuts could happen as soon as the end of this year with the agreement expected to be signed by the end of September and not required to run the gauntlet of lawmakers in the US Congress to enter into force. The Government’s agricultural trade envoy Mike Petersen said beef imports from CPTPP countries have had two tariff cuts since the agreement entered into force. If the tariff on US beef was cut immediately to equal the tariff on CPTPP beef then the fallout for NZ exporters would be marginally greater than if the cuts were delivered in installments as they

RIVALS: Japan has agreed to cut tariffs on American beef to those enjoyed by its Comprehensive and Progressive Trans Pacific Partnereship allies.

had been for CPTPP countries. “The question we would raise is are they on the same trajectory (to lower tariffs) as us in CPTPP but again that is not yet clear.” Despite losing an advantage over their American rivals Petersen said the tariff changes are unlikely to be a disaster for NZ beef exports to Japan. At this stage exporters shouldn’t expect a repeat of the fallout from Australia’s trade deal with Japan in 2015. Then a significant differential opened up between NZ and Australian beef exports as a result of the tariff on Australian beef being slashed to 27.2% while NZ

remained stuck at the global rate of 38.5%. NZ beef exports to Japan crashed by 30% and the pressure went on CPTPP negotiators to level up the playing field as soon as possible. “I have always believed and the sector has the view that as long as we have got a level playing field we are happy to compete with anyone,” Petersen said. NZ is Japan’s fourth largest source of beef imports behind Australia, the US and Canada. Beef exports to Japan increased 11% in April compared to the same month last year before CPTPP took effect.

I have always believed and the sector has the view that as long as we have got a level playing field we are happy to compete with anyone. Mike Petersen Trade envoy

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FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Red meat critics plan more tax Neal Wallace neal.wallace@globalhq.co.nz A PROPOSAL to almost triple the consumer tax on meat sold in Germany shows regulators are starting to compare it to sugar, a new report says. Market and financial analyst Fitch Solutions said a cross-party coalition of German politicians proposed increasing the value added tax on meat, considered a staple food, from 7% to 19%. Similar meat tax proposals have been suggested in Denmark and Sweden to reduce consumption for what officials consider health, environmental and ethical concerns. “A meat tax could therefore emerge as a policy sibling to the sugar tax, supported on the basis that meat does play a role in a balanced diet but over-consumption is a public health issue deserving of government action, in the same way as sugar.” More than 35 countries now tax sugar. Goldsmiths College, University of London, banned the sale of beef on campus, is phasing out single-use plastics and installing more solar panels because of climate change concerns. “Sustainability has emerged as a hot topic for governments, industry and consumers and we believe these environmental considerations lend further weight to the idea of a meat tax.” Ethical considerations are playing an increasing role in decisions by consumers which the report says makes a meat tax popular for decision makers. While a higher tax will moderate the consump-

Farm safety workshops ENCOURAGING farmers to have their say at farm safety workshops being run around the country is leading to a better buy-in from those taking part, organisers say. The Beef + Lamb NZ workshops, run by Exigent Risk Management with input from WorkSafe, promote a safety management system involving plans and procedures that can be easily customised for individual farms. Exigent facilitator Todd Karipa said the aim is to make the information as accessible as possible by encouraging communication between those running the workshop and the farmers taking part, rather than telling farmers what they have to do. “Farmers know what they do better than anyone else and they want to keep themselves, their families and their workers safe.” The workshops provide advice on how to put in place workable on-farm systems that will ensure farms comply with health and safety regulations. A WorkSafe representative is at each workshop to answer questions about legislation and compliance. Karipa said the inclusive approach helps to break down misconceptions about WorkSafe’s role and encourage farmers to invite the regulator onto their properties to provide firsthand advice. B+LNZ western North Island extension manager Jason Griffin said the workshops aim to help farmers understand the requirements under the Health and Safety Act in a way that is easily understood. Farmers are given an information pack that includes a farm safety management plan, safe work procedures, registers and forms to ensure safety procedures and training are recorded and kept track of. Numbers at the workshops are kept to less than 30 to encourage people attending to take part in discussions. Workshops are held around the country based on demand from farmers.

Contact a Beef + Lamb extension manager for further information

tion of meat, the Fitch report says supermarket competition, especially in Western Europe, keeps meat prices low so any tax will have to be significant to change buying patterns. The advent of plant-based protein products will make meat-free diets easier and less restrictive but the report warns any meat tax will face stiff opposition and is highly unlikely in markets such as the United States or Brazil. “Even in Germany, where a meat tax has been proposed, we expect to see significant industry lobbying given that the country is the fourth largest producer of red meat globally.” Pork, beef and veal production is projected to reach 6.5 million tonnes this year and the country’s total estimated agribusiness market value is NZ$70.4 billion.

DEAR DINNER: German politicians are considering raising the consumer tax on meat from 7%to 19% to answer health, environmental and ethical concerns.

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News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

A2 aims sales at growing children Alan Williams alan.williams@globalhq.co.nz KEEPING Chinese infants as consumers as they move into the four to 12-year age group is a key part of A2 Milk Co growth plans. It will be done through the new A2 Smart Nutrition fortified milk drink for that age group as they outgrow infant nutrition, chief executive Jayne Hrdlicka said presenting the company’s stellar revenue and earnings for the year ended June 30. Australia continues as the cash driver for A2 Milk Co even while it labels China and the United States as the most important regions. All three areas remain the major growth opportunities, which now also include Korea, Singapore, Vietnam, and Hong Kong though the firm is pulling out of the British milk market. Market share gains in infant nutrition in China and Australia are key aspects in the sharp growth in revenues and profits in the year. They came as A2 made and continues to make step-changing investment in brand and capability, Hrdlicka said. Revenue, market-share and earnings continue to set records. Total revenues jumped 41% to $1.3 billion, from $922.7 million a year earlier, and operating earnings (Ebitda) rose at a slightly better rate of 46% to $413.6m from $283m. The after-tax profit rose 47% to $287.7m from $195.6m. Group operating cashflow was $289m, leading to a whopping $464.8m of cash and no borrowings on the balance sheet at year-end. That is $126m more than at the

start of the year and allows for the $166m spent on more shares in Synlait Milk. The balance sheet cash will be reinvested in the business, meaning still no dividend for shareholders. Hrdlicka said the company continues to consider the appropriate use of available capital in the context of supporting its very significant growth ambitions. The strong cashflows came despite the big investment spending – $135m on marketing alone – and the deliberate buildup of inventory, up to $108m from $64m previously, that enables the business to adjust more quickly to product demand changes.

Revenue, marketshare and earnings continue to set records.

Its results were underpinned by growing brand awareness, expanding product distribution and strengthening in-market execution in the important Chinese and US markets where A2 focused on really getting to know its consumers and sales channels, Hrdlicka said. Strongest growth was made in infant nutrition sales, up 47% to $1.1b. Australasian, but overwhelmingly Australian, revenues were $842.7m, nearly 65% of the group total. On that sales growth Ebitda jumped 48% to $388.2m, more than 93% of the group total.

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A2 fresh milk is the fastestgrowing major brand in Australian supermarkets and the secondhalf performance was especially strong, Hrdlicka said. It now has 11.2% of grocery category sales, up from 9.8% a year earlier. A2 Platinum infant nutrition revenue is fast-growing and the market leader in grocery and pharmacy outlets. Australian cashflows have paid for the market development in other regions and shows no sign of changing. The results of that are Chinese sales are up 74% to $405.7m and Ebitda up 52% to $123.9m. Infant formula market share jumped out to 6.4% in the main market measure, up from 4.8%. New Mother and Baby Stores opened across China, making a total of 16,400 at year-end, but more of the growth came from increased same-store sales. Cross-border e-commerce trade remains a strong path for infant formula product going into China and A2 performed well across all platforms, including to consumers in lower-tier cities. Hrdlicka said new regulations for e-commerce and cross-border trade have been brought in by the Chinese, which resulted in some orders being advanced into the third-quarter of the year from the final quarter, but overall the impact was minimal. In the US A2 now has 13,100 stores selling its fresh milk, more than double the figure of a year earlier. Revenue rose to $34.6m from $13.3m and the costs of developing the market showed up in the Ebitda loss of $44m. Research shows the brand

DOING WELL: A2 is getting strong growth in Australia, China and America but is pulling out of Britain, chief executive Jayne Hrdlicka says.

development is progressing well and consumer loyalty is high, Hrdlicka said. British sales rose and the business had positive Ebitda but the market remains challenging so the company has decided it is not of sufficient enough scale to continue, allowing resources to focus on the core regions. Hrdlicka said A2 Platinum infant formula producer Synlait met increased demand in Australia and China during the year and the two teams are working closely together. A2 has a 17.4% shareholding in Synlait. A2 has also formed a strategic

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Comvita digs out ‘skeletons’ Alan Williams alan.williams@globalhq.co.nz MANUKA honey specialist Comvita has taken big asset value write-downs on top of an operating loss. The write-downs of nearly $20 million in intangible goodwill values were made to clear the way for a more focused reset of strategy, the directors said. “This will ensure we are not unnecessarily hindered as we strive to return to net positive earnings growth,” executive director Brett Hewlett said. The operating loss after tax for the year ended June 30 was $7.6 million, contributing to a bottom-line loss of $27.7m after a helpful tax credit of $3.4m. After a third poor honey production season in a row the Kiwi Bee apiary business lost $6m. Including the poor production, the directors said Comvita had to absorb several other external events at the same time – changes to the Daigou channel for access to China, tighter rules from the Ministry for Primary Industries

on branded manuka honey exports and a difficult United States market. Hewlett, a former chief executive, led a strategic review of the business and said the objective was to draw out any skeletons from the balance sheet cupboard.

This will ensure we are not unnecessarily hindered as we strive to return to net positive earnings growth. Brett Hewlett Comvita Changes were made and there have been market improvements. The final quarter of the trading year was profitable as most sales issues were resolved, though there are still some hiccups such as the Hong Kong riots and Daigou channel volatility.

Since balance date, first-quarter 2020 sales are tracking higher than at the corresponding time last year. Despite the poor honey production Comvita has supply chain initiatives in place to ensure it can meet demand for highest-quality raw materials for at least the next five years. The group’s own beehives will be limited to sites where product has proved more reliable season-on-season. One bright spot for Comvita is a significant turnaround in operating cashflow, to a positive $21m from the $22 outflow a year earlier. Revenue for the year was $171m, down from $178m previously. The directors said the fall in the share price weighs heavily on them. The company has successively missed financial forecasts and analyst expectations and the share price will recover only once investors are confident of sustainable profits. Comvita’s shares have lost 42% in value this year after starting at $4.75 and the threeyear loss is 73% from $10.21.

INSIGHT: Former Convita chief executive Brett Hewlett led a review of the business.

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14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

GE food on horizon over Tasman Richard Rennie richard.rennie@globalhq.co.nz WHEN not if is the likelihood of gene edited (GE) food entering the Australian diet following approval of the technology’s use there from October. That puts greater pressure on New Zealand authorities to do the same, given the shared transTasman food processing plants and regulations. Approval was granted in April by the Australian federal government for researchers to use GE Crispr technology on any species other than humans. Monash University biotechnology law expert Karinne Ludlow said any approval to allow the GE technology to be used in food products will swing on the outcome of a Food Standards Australia New Zealand (FSANZ) review now under way. It is scheduled for completion at the end of this year. She distinguished GE technology from the older genetic

APPETITE: Karinne Ludlow says more Australian consumers are open to the idea of GE modified food.

modification (GM) science so often at the centre of earlier debates. “There will be a decision one way or another from that.

“But for NZ to produce such food you still have the Hazardous Substances and New Organisms regulations in place.” The Royal Society has called for an overhaul of the HSNO Act, stating the regulations are based on older, transgenic type GM technology and fail to account for the new GE technology. Ludlow said recent research on Australians’ perceptions of and attitudes to GE technology provided some surprising results. “The government-sponsored survey conducted in 2017 on GE found about a third of people supported its use in food products, a third were not sure and a quarter were against it.” However, when the nature of new GE technology was explained acceptance jumped to 42%. “It is the transgenic type technology people do not feel comfortable with. “People can, however, accept the new technology that only makes small changes to a species’ genes.”

In the United States nonbrowning mushrooms are the first food products created using new GE technology. In NZ the possibility of low-lactose milk suitable for consumers with lactose intolerance has been proposed if approval to use GE is granted. Ludlow believes growing understanding of health and sustainability benefits derived from GE technology will grow public acceptance of it further. Meantime, the benefits of Australian states declaring themselves GE Free are being debunked and reversed. ABC Rural News reported South Australia is seeking to lift its 16year moratorium on mainland GM crops. An independent review estimated the cost to the state of the moratorium for canola alone was about $33 million since 2004. For years growers have maintained the moratorium has offered little in way of trade and marketing benefits and removed

The governmentsponsored survey conducted in 2017 on GE found about a third of people supported its use in food products, a third were not sure and a quarter were against it. Karinne Ludlow Monash University farmers’ opportunities to use GM technology proven to be safe and effective. Western Australia has also opted to not compensate nonGM growers growing crops in proximity of GM crops. Tasmania is the only state to continue with a GM ban although one type of Crispr technique is now allowed.

GE food requires law change Richard Rennie richard.rennie@globalhq.co.nz THE sale of GE food in New Zealand has several hoops to pass through before products can legally hit the shelves. The Hazardous Substance and New Organisms Act allows import of non-organism foods made from GM plants, including cottonseed, soy and canola. But a Food Standards Australia New Zealand (FSANZ) panel is reviewing how the code applies specifically to the new GE technology. Normally the sale of older GM technology foods requires ministerial approval after a FSANZ recommendation that includes a safety assessment and public consultation. That applies to both locally made and imported food products.

NZ can opt out of the joint standard on grounds of health, safety, environmental or cultural issues. An FSANZ spokesperson said a key question for the review is whether food code definitions are still fit for purpose and whether pre-market safety assessments for GE foods are justifiable in terms of risk. “FSANZ is now in the process of considering possible options and timing for progressing the work beyond the review. When the review is complete FSANZ will decide whether to prepare a proposal to amend the code.” Public consultation and ministerial approval will be required to amend the code to finally allow GE food sales. A final review report is due out later this year. Food and Grocery Council chief executive Katherine Rich

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DOUBLE STANDARD: Food and Grocery Council chief executive Katherine Rich believes quite a few anti-GE people have been quick to overlook the GE component in the Impossible Burger.

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

GM ryegrasses ready for feeding Richard Rennie richard.rennie@globalhq.co.nz NEW glasshouses in New Zealand and United States approval for feed trials are the next steps in AgResearch’s genetically modified ryegrass trials. AgResearch principal scientist Dr Greg Bryan has recently returned from the US Mid West where the agency has a research site testing its high metabolisable energy (HME) ryegrass. “The next step there for us will be to conduct animal trials, which will be dependent on getting approval of authorities there. “But before we can do that we need to breed up a sufficient quantity of grass, about one hectare that we can base the feed trials from,” he said. That’s where AgResearch’s Palmerston North campus will play a key role. Two new high-containment glasshouses are being commissioned this month to breed a sufficient quantity of seed for the trial. “The old glasshouses were over 30 years old. The new designs enable much more light penetration and a very high level of containment for both seed and pollen,” Bryan said. The layers of containment in the design also mean the GM seed can be multiplied while conforming to tight Hazardous Substances and New Organisms standards on GM germplasm. Growing a hectare of feed will require about 20kg of seed and scientists expect the process to take about eight months. Bryan said the ryegrass has so far performed well in controlled growing conditions and plants in field trials are also performing well in competition with each other. The ryegrass cultivar’s key purpose when developed was to offer higher energy for stock. Researchers have found

We do have to get approval from United States authorities for feeding it to animals. The process is strict but also quite efficient. Dr Greg Bryan AgResearch the grass also demonstrates significantly reduced methane emissions and greater drought tolerance alongside the energy efficiency. Scientists are reasonably confident the field trials will replicate results from controlled conditions. “We do have to get approval from US authorities for feeding it to animals. “The process is strict but also quite efficient.” The US is familiar with GM trials, with 10 plant species already marketed in the US with GM genetics, including soybeans and canola. Researchers still have to determine what animals to try the grasses on but they are likely to be sheep or goats. “Goats, surprisingly, are quite a good alternative to dairy cattle.” Ultimately, the grass will require approval for trials in NZ, a tough task under HSNO regulations, but not impossible. “There is a pathway there. “But we would want to see the US trial results first then decide whether to trial here and regulation would be under whatever system is in place then.” The US trials will include measuring methane emissions from the animals alongside energy yields from the grass. Bryan welcomes the recent discussions initiated by the Royal Society over genetic engineering

MIDWEST: AgResearch field trials under way in the United States Mid West.

regulations and the need to rework them to allow for new genetic technology. The long development process now matches the increased attention on greenhouse gas emissions and a need for a more sustainable pastoral sector. Other than regulation one of the biggest barriers for NZ firms working on GE technology is establishing a route to market for proven technology. “So we have to get to a point where we have done the animal trials and can say with complete confidence the benefits of the product are there.” Researchers are also applying the ryegrass technology to other crops. “A US company is already working on this technology in

soy beans. Lucerne is also likely to be a good target crop for the technology, with initial testing

already done on it in the lab.” Tropical grasses also offer a lot of potential for the technology.

Feds say get on with it PROGRESS with AgResearch’s genetically modified ryegrasses in the United States has prompted Federated Farmers to push for reforms to genetic regulations in New Zealand. It borders on the ridiculous AgResearch has been forced to do the trials of its high metabolisable energy (HME) ryegrasses in the US, president Katie Milne said. Latest work by the Royal

Society also has the country’s leading genetics experts calling for a revamp of the Hazardous Substances and New Organisms Act, now 18 years old. “This is just the latest call from scientists and experts for an overhaul of our outdated regulations in this space lest we fall further behind progress on this in other parts of the world,” Milne said.

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18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Italians write the book o Weighing in at 5kg with more than 1000 pages the Qualivita Italian Food Atlas represents the absolute last word in all food and wine that comes from Italy. It might also provide a template for New Zealand food producers to base their own food provenance story on. Richard Rennie spoke to its creator Mauro Rosati in Siena about how Italians keep their food and wine distinctly local and real.

ALMOST 20 years ago Italian food and wine producers decided to protect the status of what makes Italian produce Italian by supporting the formation of Qualivita. Despite being based in Siena, Tuscany, it took a national perspective to Italy’s parochial, highly regionalised food kingdom. Rosati says the Qualitvita Foundation aims to retain value for all Italian food and wine producers, many of them small in scale and family owned. At the time the Italian food sector was wavering with rural depopulation eroding family operations and farmer-grower sentiment at a low level. Since then the link between farming, food and tourism in Italy has strengthened year on year.

Tourism now contributes 10% or €160 billion of the country’s GDP. It is a key component of the government’s economic development policy in a country struggling to hold its own in growth figures. With about 60 million tourists a year Italy is the world’s fifth most visited country. Last year an International Institute of Gastronomy report on culture, arts and tourism found over 30% of visitors to Italy can be classed as food tourists. An ANZ report released here last year found over 80% of tourists visiting Italy anticipate a positive food experience, compared to only 40% coming to NZ. Rosati says the decision to form Qualivita was partly in response to the growing corporatisation of Italian food sales with larger chains starting to dominate traditional market outlets. “We wanted to ensure the buyers and distributors of these outlets remained sensitive to local products,” he says.

Having Qualivita represent these producers, maintain geographic indications and ensure authenticity remains has meant a lot of small producers in Italy can stay small but amplify their voice and brands of artisan products and traditions. Mauro Rosati Qualivita Today work with supermarket chains showcases regional specialties in distinct parts of a store, separate from more run-of-the-mill offerings in specialty foods like pasta, vinegars, dried meats and sauces. More recently Qualivita has worked with Italian McDonalds outlets, a chain that has historically had a tough time getting established in the world’s food capital.

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STORY BOOK: Mauro Rosati, chief executive of Italy’s authentication authority Qualivita, with a copy of the Italian Food Atlas.

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farmersweekly.co.nz – September 2, 2019

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TOUGH GEOGRAPHY: Special agricultural trade envoy Mike Petersen says New Zealand is challenging some geographical indication claims by European Union negotiators.

‘They’ve got very big hands’ Richard Rennie richard.rennie@globalhq.co.nz WHILE helping authenticate food sources, geographical indications are also proving a headache for trade negotiators seeking a freetrade deal between New Zealand and Europe. Special agricultural trade envoy Mike Petersen said any hope of having an agreement negotiated before Christmas is looking increasingly dim as negotiations stall over European Union demands on geographical indications. “We have had a list put forward to us containing what the Europeans claim are 2700 individual product GIs. “They claim this is only a handful. “To that we respond that they have very big hands,” Peterson said. The far-reaching geographical descriptors go beyond the bounds of region-specific products to include such products as feta cheese. “Some of these really are generic names to describe a type of food, not the region from which they come. “We can understand their need to protect food like Parmesan Reggiano but parmesan? That is the same as feta.” He confirmed the demands are largely around meat and dairy products and are the main sticking point. The lack of progress means NZ negotiators did not even attend the last negotiation round in the absence of any real change in the EU position. Petersen said he can, however, see some value in NZ working harder around GI protection for some of its own unique foods. Such protection is offered only to wine and liquors. “I think we can learn from the likes of the Italians about how they celebrate their food and culture and links to their heritage all very much being part of their national identity.” However, he cautioned GIs also bring the risk food producers become overly protective around techniques and methods and too prescriptive in how products are made. The World Wine Group, dominated by new world wine growers, has run into issues with old world European growers over the use of new techniques in wine making. “There is the risk innovation is stymied.” He can see the opportunity, however, for NZ to have an overarching authority, perhaps similar to Ireland’s Origin Green organisation.

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In 2008 it boosted its place as an eating option for older Italians who traditionally avoid fast food outlets. It was done by working with Qualivita on a careful campaign to provide healthier food based on Italian products and ingredients. It included working with celebrity chef Joe Bastianich to create the Gran Chianina burger, a patty of the prized Chianina Tuscan beef. “It’s really also work to help teach the next generation of Italians about these products. “It has also been the start of a project to teach smaller producers to collaborate with much larger producers. “Having Qualivita represent these producers, maintain geographic indications and ensure authenticity remains has meant a lot of small producers in Italy can stay small but amplify their voice and brands of artisan products and traditions.” Protecting and supporting the geographic indications of these producers is Qualivita’s biggest role. Under EU regulations indicator protections can take three forms. They can be protected designation of origin foods, with protected names that have the strongest links to the place they are made, for example parmesan Reggiano cheese. Protected geographical indications protect a specific aspect of the food, possibly a process used to produce it or a particular quality, with at least one stage occurring in a particular region, such as prosciutto Toscano where the pigs must be born in the Tuscany region. A traditional speciality guarantee applies to a particular method used but not necessarily a region, such as a beer brewed to a certain method. Perhaps surprisingly Rosati does not see fake regional foods presenting a big problem. “We do see versions of parmesan but find if we correctly communicate the true product to big buyers they will choose the correct products over those offerings.” Qualivita is, however, working closely with distributors and processors to develop block chain technology to reinforce transparency on products already carrying protection. He sees little reason New Zealand cannot pursue greater geographical distinction with its wide range of foods, cautioning certification is only the first step and having a collective goal among small producers to create a large common brand is vital. To date only wine and liquors can seek protection in NZ. “That brand value is a common value to be shared and it has to be all or nothing. “It is a state of mind, something that does not always fit with Anglo Saxon values of pursuit of individual wealth. “But you do not have to recreate Italy in NZ. Just value your landscape, your food and the variety it offers.” He is increasingly being asked by other countries to advise them on protecting and promoting their produce. Norway most recently used Qualivita to certify a dried fish product. Spanish and French authorities are also increasingly looking at what Qualivita is doing to better link their food, wine and farming sectors into tourism. The Italian wine industry has long been invested in the tourism sector with winery visits, trips and tastings all well served. The recent move to integrate food, wine and tourism even further has occurred with the national Agriturismo farm accommodation network now including wineries among the 20,000 already registered premises nationally. Rosati urged NZ growers and farmers to relish their uniqueness at the bottom of the world and accepting that quality is not the only prerequisite to success. “It is also the social and cultural links that make what you do so important. “Storytelling is a big part of what you need to do.”

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FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Boffins race stink bug’s spread The spectacular, soaring peaks around Trento on the edge of the Dolomites in northern Italy shelter a glacial valley that has become the fruit bowl of Europe over the past 50 years. But the region is under siege from advancing hordes of brown marmorated stink bugs threatening growers’ futures. The bug’s speed in establishing and its effect on crops provide a chilling insight to what it could inflict in New Zealand should it ever become established here. Farmers Weekly journalist Richard Rennie visited the region to learn more about the bug’s effect and efforts to deal with it.

VORACIOUS: Professor Max Suckling with captured stink bugs.

Meantime, a relatively dense urban population means there are plenty of structures for the bug to winter in. “And we have learnt that it is not limiting itself to fruit. “It is drawn to maize as soon as cobs start to tassel and then crosses to mulberry trees and onto soy beans too if they are there. “So any approach to trying to deal with it involves a broad, area-wide approach, well beyond any one crop or localised area,” Suckling said. The bug is happy to feed on bridging food like native plants and grass seeds available before crops ripen. That highlights how vulnerable regions with mixing pastoral and horticultural production like Hawke’s Bay and Nelson would be to it establishing here. “This is definitely not just a horticultural risk for NZ. It’s

a pastoral sector risk as well,” Suckling said. Ioriatti said the bug’s potential impact was not lost on growers when he visited NZ in June. “I had one grower who had been in the industry for almost 50 years and he said it was the scariest pest he had ever heard of.” Trento’s location along the high-speed train route and major northern road network to the rest of Europe has researchers facing an even tougher task slowing the bug’s advance. Thousands of vehicles pass through the valley every day. Car imports are particularly problematic, providing an ideal habitat for hordes of migrating bugs, with no pre-shipment controls proving effective. Suckling suspects NZ’s greatest incursion risk will come via Australia, which has in turn

imported vehicles via Europe. So far across the Tasman 10 incursions of the bug have already been detected. It has also recently established in Chile. “It will prove at least as devastating as a fruit fly invasion from Australia,” Suckling said. Some of the best academic minds in the world are based near Trento, focusing on ways to slow the bug’s advance. Italy does not permit the use of non-native species for biological control but a rule change is being sought this year. Meantime, scientists are trying sterile male release programmes and pheromone trap systems. Biotremology, a relatively new field of science where mechanical vibrations imitate insect mating signals, is now providing some hope. It can be applied over wide areas when combined with traps.

This is definitely not just a horticultural risk for NZ. It’s a pastoral sector risk as well. Professor Max Suckling Plant and Food Research Ioriatti said it is critical to keep research momentum up. “The bugs are moving faster than we are at this stage.” Suckling said after a career spent researching and dealing with pest incursions he has a grudging respect for the stink bug. “I have seen a lot and this is definitely one of the worst. “It has such a broad and rapid impact on crops and we need all the time we can get to try and deal with it.”

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EW Zealand and Italian researchers at the Foundazione Edmund Mach Research Centre near Trento in Italy are on the front line trying to halt the advance of the brown marmorated stink bug rapidly wreaking havoc on crops. “This year we have trapped 10 times the number of bugs we did last year and it was only identified here in 2016,” centre head Professor Claudio Ioriatti said. “The first reports of crop damage came quickly the following year in 2017 and now growers are having to spray heavily to try and slow the bug’s advance.” Ioriatti was hosted in NZ by Plant and Food Research earlier this year to highlight the risks the pest brings, should it ever establish here. He has been working closely with Plant and Food’s leading insect control scientist Professor Max Suckling for the past 25 years on various insect control programmes. But now the men and a team of talented doctoral candidates are scrambling to find ways to control an insect inflicting €150 million of damage a year on growers’ incomes in nearby Emilia Romagna. Its presence threatens the viability of horticulture in the affected areas. The bug, a native of China, is believed to have entered via Switzerland and established in Italy’s northern regions, which offer a rich and near year-round diet of produce. It has few predators in Italy and will happily graze through the spectrum of horticultural products including maize and ripe ryegrass seed. It injects an enzyme into the fruit, causing it to fall early and either making it unmarketable or drastically affecting shelf life. “Already after this short period of establishment peaches are badly affected in nearby Emilia Romagna and high-value organic apple crops will suffer – the bug simply laughs at organic pyrethrum controls,” Suckling says. So far Trento is on the edge of the bug’s advance, with neighbouring Friuli-Venezia the hot zone for an infestation so heavy it threatens to wipe out the country’s entire pear crop, with an estimated potential loss of €€250€400m. The outbreak has Italy’s national co-operative president calling for a national emergency group be established and description of its presence at epidemic levels. The district’s wide variety of crops means there is a near yearround supply of food for the bug. Suckling strongly suspects the valley’s scenic forested peaks are also crawling with populations of the bug, attacking berries and fruits as they ripen on the valley floor.

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22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Deer farmers prepare for emissions charges Annette Scott annette.scott@globalhq.co.nz

USEFUL: Farmers need fair policies that are practical to apply, Deer Industry New Zealand chief executive Dan Coup says.

THE deer sector is planning for its inclusion in the Emissions Trading Scheme. The smallest of the mainstream livestock industries has its hands full dealing with what it will mean for deer farmers when agriculture goes into the scheme, Deer Industry New Zealand (DINZ) chief executive Dan Coup said. “Over the next five years it seems inevitable that agriculture will transition into a pricing regime for

biological emissions. It’s a huge task. “No other country in the world has attempted it so we need everyone to co-operate. “Our first challenge is to convince the Government to work with us,” Coup said. DINZ is working on two levels, both equally urgent – policy development and practical ways to apply the policies on farms. The proposed flat carbon levy on processors for a transition period will not encourage farmers to look at ways of reducing their emissions or increase their on-farm carbon storage. It will be seen as yet another tax and make farmers less inclined to co-operate. “Instead DINZ and the other primary industries are saying, work with us, as outlined in the Primary Sector Climate Change Commitment. “We need policies that are fair to farmers and practical to apply on an ordinary family farm,” Coup said. DINZ also sees the methane targets in the Zero Carbon Bill as being unnecessary and unrealistic. It has made submissions to that effect and is continuing to lobby for changes to the reduction targets for methane of 10% by 2030 and 24-47% by 2050.

We need policies that are fair to farmers and practical to apply on an ordinary family farm. Dan Coup DINZ “Neither level is achievable because the Bill does not allow for on-farm offsetting. If offsetting is allowed the 2030 target looks reasonable.” Achieving the 2050 target without destroying the deer industry will require technology that doesn’t yet exist. From 2020 to 2024 farmers and the Government need to be developing a system that accounts for greenhouse gas emissions and offsets at the level of the individual farm. That will give farmers the incentive to assess their emissions and find ways to minimise or offset them. Most farmers, including deer farmers, don’t yet know what their farms are emitting or how to reduce their emissions. If the Government accepts the livestock sector’s vision and decides to work with it the second major challenge will be making individual farm greenhouse gas accounting actually work, he said. Providing farmers with good, practical, easy-toapply information will be essential. DINZ has engaged AgFirst to look at what management practices four deer farms could apply today to reduce or offset their emissions. Four classes of deer farm are being looked at including North Island hill country, South Island high country, intensive velvet and intensive venison finishing. The results will be available in the next couple of weeks for farmers to consider. The plan is to incorporate the outputs in the review of the deer farming environmental management code of practice.

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farmersweekly.co.nz – September 2, 2019

“It is not unmanly or uncool to think about your health and safety on farm – it could save a precious life.” NEW PERSPECTIVE: Heather Gee-Taylor recently returned from representing New Zealand at the Canadian Charolais Youth Association’s national show. Photo: Colin Williscroft

Canada trip a good learning experience

KAREN WILLIAMS Farmer and Federated Farmers Arable Industry Group Chairperson

Colin Williscroft colin.williscroft@globalhq.co.nz VISITING cattle ranches in Canada has made Heather GeeTaylor appreciate the advantages of farming in New Zealand. Gee-Taylor, who has a small herd of registered Charolais on her parents’ Rangiwahia farm, and Christchurch’s Emma Owen were in Canada as part of the Charolais World Youth Tour, which included 10 days visiting ranches in Saskatchewan and competing in the Canadian Charolais Youth Association’s national show. Wanting to make the most of the experience, Gee-Taylor flew over a fortnight before the show to spend extra time on a commercial ranch as well as travelling around as a tourist. The ranch was a cow-calf operation and Gee-Taylor said before spending time there she had not given too much thought to how fortunate NZ farmers are not having to deal with predators like coyotes and wolves. She went along to a few cattle sales where buyers were few and the number of lots low. Everything sold passes through sale yards so the farmers she saw form no relationship with the freezing works like they do in NZ. As NZ delegates at the four-day national youth show Gee-Taylor and Owen joined representatives from countries including Hungary, Estonia, Australia, Ireland and the United States and 120 young Canadian competitors aged from eight to 22. As part of the experience the two New Zealanders competed in the showmanship and team grooming competitions, where

SELECTED: Emma Owen, left, and Heather Gee-Taylor visited Charolais ranches on Saskatchewan prairies as part of their time in Canada.

they placed third and fourth in the handlers class. It was the first time Gee-Taylor had competed at a cattle show, though she’s planning to show a Charolais yearling bull at the Hawke’s Bay Show in October. She found the knowledge of the young Canadians impressive. “They just know so much about cattle. They have a real eye and can discuss the key aspects,” she said. That’s because cattle shows in that part of the world are a big part of the farming landscape so young people grow up not only on ranches but around competitions and the knowledge required to take part in them. “It’s very established there and there’s such a culture around it that does not exist in NZ. It’s a shame it does not happen here because it’s a good way to learn.” After the show competitors were taken to the slaughter room of a nearby works so they could see what prime animals look like after they have been dressed, something Gee-Taylor said would benefit people in NZ

beginning their farming careers because it is an educational experience. It provided a closeup look at what quality carcases look like. The differences between farming systems in Canada and NZ stood out to Gee-Taylor. Cattle ranches in Saskatchewan are on prairies, predominantly large expanses of flat land where the temperature drops to minus 30C in winter so there’s no grass at that time of the year with feedlots and barns an important part of the farming landscape. She gained a greater appreciation of the value of NZ’s pasture-based beef farming system after visiting feedlots and seeing the use of growth hormones and antibiotics in beef feed. Farmers here are fortunate they can feed stock year-round in the paddock and not have to resort to feedlots, she said. “It’s important we keep doing that.” The grass-fed advantage is a vital point of difference.

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24 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

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Trade talks wait on Indian offers Nigel Stirling nigel.g.stirling@gmail.com

PERSEVERING: Talks with India are continuing in the hope its offers will open its borders to New Zealand’s meat and dairy products, Agriculture Minister Damien O’Connor says.

INDIA is still yet to offer New Zealand sufficient improvement in market access for sheep meat and dairy products for the two sides to agree their part of a massive Asian trade deal. Trade ministers representing the 16 countries negotiating the Regional Comprehensive Economic Partnership (RCEP) gathered last month

in Beijing as they try to meet their own end-ofyear deadline to finally complete talks started seven years ago. It’s been nervous times for exporters eager for a boost from RCEP with international media in July reporting pressure from China to have NZ, India and Australia booted out of the negotiations. China had reportedly reached its limit with India’s continued unwillingness to open up its markets to increased imports from other RCEP countries. At the same time China was reported as being frustrated with NZ and Australia’s demands for free trade in agriculture, which it was concerned went too far. Agriculture Minister Damien O’Connor, deputising in Beijing for Trade Minister David Parker, said he saw no evidence China wanted anyone excluded. “The negotiation by its nature is an attempt to get compromise from all parties to reach enough common ground to sign an agreement that is useful for everyone. “Certainly, some progress has been made and is getting close to the point where not everything will be agreed but enough to form the basis of a sound agreement. “And there is optimism that this can occur by the end of this year while final signing may move into next year.” O’Connor said there have been commitments from most countries in the negotiations to improve access for agricultural imports but India remains a tough nut to crack. The country of 1.3 billion consumers operates a complex system of tariffs and regulations keeping imports of agricultural products largely shut out except for brief periods where local demand exceeds supply. Outside of those periods tariffs on milk powders range between 30% and 60%. The tariff on sheep meat is 30%. NZ and India began their own free-trade talks in 2010 but made limited progress before the two countries began negotiating under the aegis of RCEP. Reflecting a different negotiating dynamic where each of the countries involved must reach a deal with every other country before an overall deal can be concluded the talks between NZ and India in RCEP are understood to have made more headway. However, there is still some way to go before the two sides can agree and, in particular, on what is an acceptable opening up of the market to imports of sheep meat and dairy products, O’Connor said. “The offers are still, in our view, not satisfactory and we want to continue to talk to them.” It is also likely RCEP will include longer phaseout periods for tariffs than exporters are used to in many of NZ’s other trade deals. “We will make progress in lowering the barriers to trade over time and this agreement will achieve that (but) it will not be in one fell swoop,” O’Connor said. However, even if NZ and India can agree, exporters here will not reap gains until the RCEP enters into force and that cannot happen until all 16 countries have agreed their own deals with each other. Close watchers of the talks say a diplomatic dispute between two key participants, South Korea and Japan, is worsening by the day and could yet tip up the wider deal.

Your comment counts Add your voice to this story at farmersweekly.co.nz

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FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

FMG cracks the 50% market share Alan Williams alan.williams@globalhq.co.nz FMG now insures half of New Zealand’s farmers and growers. It moved to a 50% market share during the year ended March 31, from 49% a year earlier, 46% before that and 35% in 2011. The mutually-owned model is working for the group and the rural sector, chief executive Chris Black said.

You can stop the tractor for lunch and in 17 minutes the starling can find a dark, warm place to build a nest then you come back and start the engine. Chris Black FMG Based on independent surveys, market share across each of the categories, the traditional rural sector and now horticulture, viticulture and vegetable growing, ranged from 40% to 60%.

FMG made an after-tax profit of $19.1 million for the year, up from $12.1m a year earlier. The year was one of a record number of claims and overall client growth with trading helped by the absence of major storms. There was just one big storm, in Auckland region early in the financial year, down from seven a year earlier, Black said. Total claim settlements added up to $181m, $19m higher than the year before. The higher number of claims and costs came as part of the increased level of business being written. FMG’s insurance underwriting profit was $10.8m ($9.2m higher) and the income from investment was $14.2m ($800,000 higher), for a group pre-tax profit of $25m. The after-tax earnings are added to capital reserves, which rose to $257.4m from $238m. That is enough only to maintain the capital ratio at a steady yearto-year level of 2.2 times the minimum capital required by the Reserve Bank because of the need for more capital to match business growth and new clients added during the year. The increase in claims – what are called underlying claims rather than major event claims – were

DOES THE JOB: The mutual ownership model is working for FMG and the rural sector, chief executive Chris Black says.

CALM: The absence of major storms helped FMG have a good trading year.

typically for vehicles, house fires and content loss. In recent years the group has put a lot of focus on advice to clients on management to avoid loss. An example is keeping starlings out of tractor engines in spring. “You can stop the tractor for lunch and in 17 minutes the starling can find a dark, warm

place to build a nest then you come back and start the engine,” Black said. Quad bikes, tractor-driving and house fires are also the subject of advice to clients. Key-person cover is an increasingly important part of farm insurance. FMG is still settling claims from the Kaikoura earthquake in

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News

26 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Scales continues to reap rewards Alan Williams alan.williams@globalhq.co.nz APPLE sizes might have been smaller after a difficult growing season but Scales Corporation has a bumper balance sheet after a busy time of deal-making. It ended the half-year to June 30 with more than $120 million in the bank against borrowings of just $64m. And it has about $30m more to come in trade payments than it owes to others. Total assets jumped out to $622m from $443m a year earlier and it continues to look for new acquisitions. The bottom-line profit for the half-year was $121.7m but a lot of it came from one-off deals, including a $73m after-tax gain from the sale of the Polarcold business. Another $20.2m was booked on the sale of its Meateor NZ pet food business to a new joint venture company owned equally with Alliance – made up of $10.1m in sale gain and a similar amount in fair value gain. Operating earnings (Ebitda) from the continuing businesses were $47.3m, compared to $47.1m at the corresponding time last year and the underlying after-tax profit

GOOD CROP: Apple volumes were higher than forecast though the fruit was smaller than usual, Scales managing director Andy Borland says.

of Scales’ continuing businesses but the group is pushing hard into pet food and during the half-year it integrated the 60% of the Shelby business in the United States that it bought last year. Mr Apple delivered an excellent outcome with volumes higher than forecast even though fruit size was smaller, managing director Andy Borland said. He expects total export volumes

Total assets jumped out to $622m from $443m a year earlier.

was $30.1m, up from $29.4m. The Mr Apple business in Hawke’s Bay is easily the biggest

to be similar to the record 2018 crop despite land being taken out of production so new, premium varieties can be planted. That totals 85ha in the 2019 and 2020 winters. Apple volumes sold into Middle East and Asian markets, especially China, were notably higher at good prices. Strong trading there was partially offset by a slower start in the Europe market where there has been a bigger than usual domestic crop. The outlook there for next season suggests the impact will be played out this season, Borland said. Mr Apple sales were $159.5m, up from $143.8m, with pretax earnings of $35.7m compared to $36.1m previously. Under accounting rules all unsold fruit has to be valued at the half-year as if it has been sold so the first-half is the main reporting period for the division. The division’s own export tally was 3.82m cartons, marginally down on last year, but ahead of the forecast 3.62m. Premium exports including NZ Queen, Pink Lady and high-colour Fuji and Royal Gala rose to 2.09m cartons from 1.9m.

The food ingredients division traded solidly while the new business and structures were integrated with pleasing progress at Shelby, Borland said. In NZ benefits in sharing customer networks and merging supply chains are starting to show. The larger business had revenues higher at $80.7m, up from $45.5m. Pretax earnings were $24.5m including the one-off gains compared to $5.9m. Scales owns the Shelby stake on its own, separate to the Meateor NZ business. The logistics business traded ahead of last year, with revenue of $54.8m and pretax profit of $2.84m, up from $46.2m and $2.79m. Scales chairman Tim Goodacre reaffirmed earlier guidance for an underlying fullyear after-tax profit of between $32m and $37m, which would work out at an Ebitda of $49m to $55m. Dividends are not typically announced with the trading results but Goodacre said the group is committed to the annual dividend level of not less than 19c a share while it remains in a net cash position.

Sheep farmers asked to help after cattle disease fallout Annette Scott annette.scott@globalhq.co.nz IHC is calling on sheep farmers to help raise vital money because Mycoplasma bovis cut the organisation’s annual rural fundraising income by half last year. The new Lamb Programme asks sheep farmers to join dairy farmers to support people with intellectual disabilities and their families in rural communities. ADVERTISEMENT

IHC national fundraising manager Greg Millar said the Calf and Rural Scheme was hit hard last year by M bovis, losing half its usual income in what was an incredibly difficult year for many dairy farmers. Millar said IHC is hoping farmers will now pledge a lamb or sheep to support children and adults with an intellectual disability in rural communities. “For more than 35 years it’s been the dairy farmers who

have given such generous support to the IHC Calf and Rural Scheme. “We simply couldn’t have done the work we do without their support and we’re hoping New Zealand’s sheep farmers will join us too in this new Lamb Programme.” Farmers can support the programme by visiting www. ihc.org.nz/lamb and donating a virtual lamb for $150. They can also give a physical lamb or sheep at the same website or simply say

“One’s for IHC” at the sale. Millar said IHC is grateful for the sponsorship support and promotion AgriVantage will provide to the Lamb Programme, up to $25,000 this year, through a $1 sponsorship from every 20kg bag of Sprayfo Primo Lamb milk replacer sold. AgriVantage’s national business manager Warren Tanner said the rural business saw an opportunity to make a difference. “IHC does important work in supporting people with

intellectual disabilities in communities all around NZ. “We know that M bovis has negatively impacted the calf scheme and, therefore, their fundraising efforts. “We saw an opportunity for AgriVantage to help make up some of the deficit and hopefully even exceed the IHC’s fundraising targets. “Together with our farming communities we hope to raise a total of $40,000 to help fund the work of IHC,” he said.

LEGAL TALK with Barbara McDermott “Skimpy” document prepared without legal advice legally binding

Barbara McDermott Phone 07 834 6159 barbara.mcdermott@nwm.co.nz

2. All the essential terms being agreed upon. Tower Insurance Ltd v Nicon Ltd The recent case arose after the 2010 Christchurch earthquake. There was unprecedented demand for contractors and the insurer wished to secure the services of a demolition contractor. The contractor wanted a firm commitment that it would be given work. A Heads of Agreement was therefore prepared providing that the insurer was obliged to offer the contractor the demolition work (with two exceptions). Things changed when the insurer’s agent had a new project manager who referred work to cheaper contractors because he was unaware of the Heads of Agreement. The contractor issued proceedings claiming damages for the lost contracts. The insurer argued the Heads of Agreement did not meet the requirements of a legally binding contract, the insurer was not legally bound to offer the work to the contractor and therefore could not be liable for any damages. The Court stated that the test as to whether or not the parties intended to enter a legally binding

www.nwm.co.nz

document is an objective assessment which can take into account the context or purpose of the document, its wording and the conduct of the parties both before and after the document is signed. On the evidence before the Court, and taking all these factors into account, the Court held the Heads of Agreement was legally binding. The Court also held that, although all the terms of the agreement were not included in the Heads of Agreement, sufficient terms were included to show the parties intended to be bound. The takeaway from this case Deciding whether “Heads of Agreement” or similar types of documents are legally binding is not always clear. This uncertainty may lead to disputes and ultimately to litigation – an extremely costly and time consuming process which any business would do best to avoid. If you want to be confident that the document you intend to sign expresses your intentions fully and accurately, then legal advice is necessary.

LK0095400©

It’s not uncommon for documents which have been prepared without legal advice to result in disputes about their interpretation, or even disputes as to whether the parties intended them to be legally binding. The Court of Appeal recently confirmed that a “skimpy” document called a “Heads of Agreement” prepared without legal advice was legally binding and enforceable. Heads of Agreement “Heads of Agreement” are one example of a document that may or may not be legally enforceable. Other names for these documents are a “Letter of Intent”, “Memorandum of understanding”, “Heads of Terms” or “Term sheet”. These documents are often used so the parties have something in place without the time and expense of a more comprehensive document. They are also sometimes used as a preliminary document which is to be followed by a more comprehensive document. The test for whether these documents are legally binding depends on: 1. Whether the parties have intended them to be legally binding; and

News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Dam head rejects report’s claims Richard Rennie richard.rennie@globalhq.co.nz TASMAN Mayor Richard Kempthorne and Waimea Water chief executive Mike Scott have dismissed a report highlighting earthquake, geological and business risks of the Waimea dam. The first sod on dam construction was turned three weeks ago with access to the dam site well progressed and construction to be completed by November 2021. Filling is expected to be done by February 2022. The report by Waikanae consultant Dr John Robinson was commissioned by local residents concerned about the dam’s cost, safety and economic viability. It claims there is considerable geological risk of significantly increasing the estimated $105 million construction cost. That relates to claimed bedrock issues and a lack of it for putting the dam on. The report links the risk of unstable bedrock to New Zealand’s last major dam project, the Otago Clyde dam, where concrete grouting had to be injected into the rock zone that blew out the cost to $900 million, almost 10 times the original estimate. It said Tasman District Council risks being bankrupted, being responsible for carrying any additional costs associated. Scott said the report lacks any factual validity, lacks any definitive expertise and is highly subjective. “This is nothing short of fear mongering. “For someone claiming to be

a mathematician, I see very little maths to substantiate his claims. It is underwhelming.” Scott rejects claims the dam site lacks bedrock, with excavations already working on bedrock foundations for the left and right sides. “We have done 15 bore logs in the area and know the geology very well. “So far there are no surprises there.

This is nothing short of fear mongering. It is underwhelming. Mike Scott Waimea Water “We also have a robust design for the embankment that lets us use a variety of rock types.” Scott said the council has also reviewed the report and found it wanting. Kempthorne said there has been a full undertaking to assess bedrock and its stability, with the dam’s budget building in an allowance for initial costs incurred in excavating to a bedrock base. “This dam has had a huge design process, risks have been factored in. “The problem with this report is that it has been written for dam opponents, with information sourced from them.” Robinson also highlights an earthquake risk given the dam’s proximity to the Alpine Fault and numerous associated fault lines.

Particular attention is drawn to the fact some of the fault lines, including the Alpine Fault, are now beyond their average dormant period, with an elevated risk of a quake occurring along them during the dam’s lifespan. But Kempthorne said earthquake risk has been well factored into the construction equation and the dam will be capable of withstanding a major seismic event. “And there are two main fault lines – the Waimea fault 20km away and the Flaxmere fault about 8km away.” From an economic perspective the report also cites the project benefiting only a small group of influential landowners, doubling their land values. But Kempthorne said there is still opportunity for other landowners to buy shares in the dam through Waimea Water. The most recent investment has come from Easton Apples selling 111 shares to the NZ Superannuation Fund. The Crown has $22m invested in the dam project and to avoid incurring penalty interest rates another 80ha must be signed up over the coming 15 years, taking the total area irrigated to 1200ha. Robinson’s report is also scathing about the ability of the dam project to function in helping recharge the region’s aquifer, another key requirement of its build. “But this is untrue,” Kempthorne said. “We have a very accurate smaller-scale model of the dam operating now and it is functioning very well in achieving what the larger version is intended to do.”

SOLID: Waimea Water chief executive Mike Scott has dismissed a report commissioned by residents as subjective and unfounded.

Now the contract is signed and work is under way there is little chance council will pull out. “If we pulled the plug we

would have to pay $50m to the contractors and owe the same to irrigator, when we only have to put in $25m for the project to go ahead.”

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MADE TOUGH AND WIRY IN NEW ZEALAND

News

28 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Expansion boosts sales and profits for Seeka Alan Williams alan.williams@globalhq.co.nz CONTINUING sales of Northland kiwifruit orchards and income from sales of Australia orchards will reduce Seeka’s debts to more conservative levels, the directors say. The company has borrowed significant sums for business acquisitions and development of its kiwifruit post-harvest infrastructure. That did not stop Seeka increasing profits in the latest half-year to June 30, though the increase in revenue, up 17% to nearly $170 million, was greater than the 8.6% lift in operating earnings (Ebitda) to $27.9m. The after-tax profit growth was much better, up 27% to $11.8m from $9.3m. Interest expenses were covered more than eight times by earnings before interest and tax (Ebit) of $20.3m and operating cashflow rose to $5.14m from $2.49m a year earlier. At balance date Seeka had borrowings of $150.4m, an increase of $32m on a year earlier, financing total assets of $407.4m, a ratio of 37%. Total assets are up from $311m. Seeka bought major kiwifruit assets in Northland and has since sold about $19m worth of orchards for sale gains of $3.8m and has another $21.6m worth of orchards to sell, expected to happen over the balance of the financial year. Seeka is keeping management contracts on the orchards with fruit to be packed at its new Kerikeri pack house. It also bought the Aongatete kiwifruit business in Bay of Plenty and has expanded and upgraded the Oakside pack house and cool store. When Kerikeri is completed the company will have post-harvest capacity to handle fruit supply

ENOUGH: Seeka will soon have enough pack house and cool store capacity for the next two years, chief executive Michael Franks says.

for the next two seasons, chief executive Michael Franks said. Seeka’s kiwifruit and nashi business in Victoria, Australia, lost $150,000 during the year, compared to $2.7m in Ebitda a year earlier. Very dry conditions affected fruit size, Franks said. Kiwifruit was profitable but the nashi operations lost money. Australia is important to the group and orchard development will continue. Kiwifruit orchards will be sold and leased back, with gains used to reduce debt. In NZ Seeka also operates

SHEDS

Cattle Yards

YARDS

in avocado and kiwiberry but kiwifruit is by far the biggest part of the business. In the latest year $29.8m of Ebitda, excluding overheads, was provided by the post-harvest division, $4.2m from the group’s mainly-leased orchards and $800,000 from the retail services. The post-harvest group packed 33.5m trays, up from 31.1m a year earlier. Seeka’s traditional business packed 29.6m trays, down 5% due to a seasonal drop in Hayward variety yields, plus 3.9m trays from Aongatete. Franks expects lower operating

BRIDGES

Kiwifruit was profitable but the nashi operations lost money.

earnings in the second half of the year, reflecting a lower volume of fruit in store at June 30 and the earlier selling season. Operating earnings guidance for the full-year is between $32.5m and $33.5m, compared with a restated $31m in Ebitda last year.

Farm enviro awards now open for entries ENTRIES are now open for the next Ballance Farm Environment Awards. Farmers and growers can showcase, benchmark, and improve their operations through a judging process where agribusiness professionals provide feedback, recommendations and commendations, Farm Environment Trust chairwoman Joanne van Polanen said. “The judges take a holistic approach to the feedback and award allocation process by evaluating every aspect of the farming/growing business from environmental management, productivity and profitability through to family and community involvement.” And for the first time farmers and growers can be nominated to enter the awards, provided they give their consent. “We already have some of the most efficient farmers in the world. “Unlike many of our competitors, farmers are investing in environmental improvements without substantial government subsidies as is the case in many other countries. “Imagine the possibilities as more farmers and growers commit to producing food and fibre sustainably for the world’s most discerning customers,” she said. Entries close on October 31.

www.nzfeatrust.org.nz

Sheds

Woolsheds & Covered Yards

News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Merino inspires Cavalier rethink Alan Williams alan.williams@globalhq.co.nz CAVALIER Corporation has enlisted marketing specialist the New Zealand Merino Company to help boost its struggling wool carpet sales business. “They’re a marketing-led company and we’re the best wool manufacturer in the world so we think it is a good marriage of abilities,” Cavalier chief executive Paul Alston said. NZM has a record of working with leading brand partners and being able to sell the natural, sustainable and environmental qualities of wool. The plan is to build a transformative business model to connect consumers with Cavalier’s wool products and to have a business model fit for the next 50 years. Cavalier doesn’t use Merino wool but NZM is active as a buyer and seller in the coarse wool market as well and Cavalier will buy some supply from it for its carpets. The two companies are working through the collaboration plan and Alston hopes to have details for the Cavalier annual meeting later in the year. Their association comes at a time when the carpet manufacturer is still battling to make progress in a tough market, especially in Australia but also in

They’re a marketing-led company and we’re the best wool manufacturer in the world. Paul Alston Cavalier Corp

KEEP ON: There is still a lot of work to be done though sales of high-end carpets are increasing, Cavalier chief executive Paul Alston says.

New Zealand and especially in synthetic carpets. Sales of high-end premium wool carpets are increasing but there is still a lot of work to be done in that area, Alston said. Cavalier reported a bottom-line loss of $16.8 million for the year ended June 30, compared with a

$4.1m profit a year earlier. The loss included an $11.9m loss on the sale of its 27.5% share in the Cavalier Wool Holdings scour business and $8.5m of impairments on fixed assets and goodwill, slightly offset by a $1.14m tax credit. The NZX-listed company also

detailed a normalised after-tax profit of $1.9m, down from $4m. Group revenues fell to $135.2m from $148.1m. For carpets, the revenue decrease was 9% on a 12% fall in volumes. The group also has a smaller wool trading business. Auditor KPMG again noted the material uncertainty as to Cavalier being a going-concern, over its ability to achieve financial forecasts and generate enough cashflow to meet its debt covenants. The directors believe the group is a going-concern, able to meet its obligations. Bank debt arrangements were renegotiated in late June as part of the extension of funding facilities. Latest valuations assess the group’s land and buildings at more than $30m, compared to less than $18m in net borrowings, directors said. The accounts show total assets of $99.3m including inventories of $47.6m at balance

date. The full borrowings fund about 21% of assets and Cavalier’s equity ratio is 55%, marginally higher year-on-year. Operating cashflow was positive for the year but down to $2.9m from $12.4m a year earlier. The directors said the board is confident of the financial sustainability of the business and excited about its future. Cavalier is well-placed to capture the demand from consumers for quality wool carpets. Lower coarse wool prices are positive for the carpet business because they reduce input costs but are a negative for the Elco Direct wool-buying business. Reduced Chinese demand has affected sales and margins for Elco, the directors said. Sales of high-end wool carpets are improving and though volumes are small , these higher-margin products make a significant contribution to group profits. The NZ revenues were pressured by the decline in lowmargin synthetic carpet sales. The accounts show Elco Direct had revenues of $25.45m in the latest year, down from $27.4m previously and had earnings of $788,000, down from $1.29m. The carpet division had sales of $113m, down from $123.7m, and a loss of $4.1m after restructuring and impairments, compared with earnings previously of $7.1m.

Allied Farmers makes gains over trading challenges Alan Williams alan.williams@globalhq.co.nz ALLIED Farmers has improved earnings in its livestock subsidiary despite challenging conditions. The group expects the challenges to remain in the near-term but is confident the growing livestock financing business and digital initiatives will continue to support the core agency work, chairman Mark Benseman said.

Issues faced included drought during the second-half of the year ended June 30 and Mycoplasma bovis having a major negative impact in some regions and for some clients. There was a significant reduction in dairy conversion activity and some conversion back to other uses but sheep and beef remains relatively buoyant, he said. The meat processing business performed ahead of expectations,

with good volume growth and generally solid prices, markedly better for animal skins with help from a weaker currency. Annual commission income for NZ Farmers Livestock was lower at $12.1 million, down from $12.8m a year earlier, but meat product sales nearly doubled to $8.12m and the pretax profit rose to $2.79m from $2.63m. The group’s pretax earnings were $2.22m, down from $2.4m the previous year which

had benefited from a one-off recovery of more than $400,000 from its former finance group activity. The after-tax profit was $2m, compared to $2.22m. ALF owns 66% of the NZFL business so its share of the profit was $1.25m, with $743,000 going to the stock agents who own the balance. Operating cashflow improved to $3.07m from $1.78m. Helped by a capital-raising,

ALF has strengthened its balance sheet and cash holdings. Total shareholders’ funds were $5.76m, up from $3.46m, and the year-end cash balance was $2.3m. Benseman said the livestock agency business continues to grow and the directors are actively looking for and implementing opportunities and innovations to reinforce the national presence in livestock trading. The directors will later in the year whether to pay a dividend.

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News

30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Swine fever alert for Kiwi farms Annette Scott annette.scott@globalhq.co.nz A LIKELY outbreak of African swine fever in the Philippines has sparked alarm for New Zealand’s pork industry. The fever threat in the Philippines brings the disease closer to home, NZ Pork general manager David Baines said. “The outbreak, if confirmed, is a real concern for the industry and the wider agricultural sector, which employs many workers from the Philippines. “We are potentially seeing the disease take another step closer to NZ as it continues its march through Asia,” Baines said. The Philippines Department of Agriculture Secretary William Dar on August 20 announced an incident report of an increased mortality of pigs raised by farmers in their backyards near Barangay San Isidro in Rizal. According to Bureau of Animal Industry veterinarian Dr Joy Lagayan the usual mortality rate for pigs is between 3% and 5%. In this case the mortality rate in the area has spiked to as much as 20%. Dar has directed the bureau to do more tests for swine fever, including sending blood samples

Baines urges all farmers to review their biosecurity protocols and in particular look at arrangements for no-contact time and staff stand-down periods after overseas travel.

ASSESS THEM: NZ Pork general manager David Baines says workers from the Philippines play a big role in New Zealand’s agricultural sector so farmers need to take a close look at the risks.

to foreign laboratories for analysis. Typically, testing for it can be done in a few days but official results, if positive, might take several weeks. The bureau has made the area a quarantine zone, triggering the automatic depopulation of all pigs

within 1km of the affected farms and increased disease surveillance for farms within 10km. About 8.1 million backyard pigs are estimated to be kept in the Philippines. Baines said there’s serious concern farm workers from NZ

could come into contact with the disease while visiting the Philippines and bring it back to this country because it’s exceptionally hardy and can be easily picked up and carried on clothing, footwear and equipment.

We are potentially seeing the disease take another step closer to New Zealand as it continues its march through Asia. David Baines NZ Pork

“Experienced workers from the Philippines play a large and very positive role in NZ’s agricultural sector and work right across the country so we’re asking farmers and their staff to take a close look at the risks. “We are asking everyone in the community to be vigilant, observe biosecurity protocols and report any suspected signs immediately.” That can be done by phoning MPI on 0800 80 99 66.

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Alliance spending money on plants Annette Scott annette.scott@globalhq.co.nz ALLIANCE is investing $1.2 million in its Smithfield plant at Timaru to meet the needs of South Island farmers. The move is close on the heels of rival meat processor Silver Fern Farms closing its plant 80km up the road at Fairton in 2017 and last week proposing to cease operations at its Fairton pelt house. SFF blamed the closures on low South Island sheep numbers. While acknowledging declining sheep numbers are a challenge for processing companies, Alliance chairman Murray Taggart said the co-operative is committed to its farmer shareholders and the communities it operates in. “Farmers invest multi-generational, not just the next season, and we as a 100% farmer-owned cooperative have got to do the same and that means investing in business, plants and markets. “We are looking right across our plants at where we have bottlenecks, where we can gain efficiencies and better streamline processing.”

“Every cent the co-operative makes in profits is delivered back to farmers or re-invested into the business to continue to improve our operational efficiency and ultimately lift returns to our farmer shareholders,” chief executive David Surveyor said. Under the loyalty payments programme farmers get an extra 10c/kg for each lamb, 6c/kg for a sheep, 8.5c/kg for cattle and 10c/kg for deer. Last season Alliance paid $14.6m in loyalty payments to shareholders.

CASH: Every cent Alliance makes goes back to farmers or is invested in the business, chief executive David Surveyor says.

Farmers invest multigenerational, not just the next season, and we as a 100% farmerowned co-operative have got to do the same. Murray Taggart Alliance The Smithfield work includes installing more vacuum packaging, co-products processing technology and extending the secondary processing area to boost processing efficiency by up to 20%. It is another step forward in the company’s transformation strategy and shows the benefit of a strong balance sheet, Taggart said. “We are in a position to invest in our plants to support our farmers, our people and the communities we operate in. “This reflects our commitment to strengthening our processing capabilities and maximising our operational performance across our plant network. “As a co-operative we are focused on maximising the value created for New Zealand farmers and we remain focused on lifting the performance and productivity of all our plants.” Smithfield is one of the biggest employers in Timaru with 500 staff at peak season. Alliance is also spending $1m on a new valueadd facility at its Lorneville plant in Southland. It will significantly expand the scope of existing production by increasing the processing capacity of fresh and tempered lamb. Alliance will initially target the NZ domestic market the British food service sector and China with the value-add products. In June Alliance announced improvements to its Dannevirke plant that will increase capacity by 20% and mean jobs for 35 extra staff. The project in southern Hawke’s Bay is due to get under way next month. Alliance earlier this month underlined its commitment to rewarding loyal shareholders with a $4.5m distribution to farmers. The quarterly loyalty payments were made platinum and gold shareholders who supply 100% of their livestock to Alliance. The latest payment brings the total amount distributed so far this season to $13.5m. “We reward their investment by ensuring that they are at the heart of every decision we make and recognise their consistent and committed supply with our loyalty payments.

Precision Farming

Success. Together.

News

32 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Don’t take on others’ stress hard place. My reputation was at stake. “I was one of those people farmstrong.co.nz who go into their shell when they’re stressed and don’t say BEING a farm manager comes anything. Some people put on a with a lot of pressure and responsibility with targets to meet bit of a show or cry for help or get angry but I didn’t say anything to and owners to please but Brad anyone, including my wife.” Woodford says one particularly Woodford eventually realised it stressful experience taught him was a burden they shared. the value of looking after himself. “All I could see was my own Years ago Woodford was stress trying to get the job done managing an 800-hectare sheep but if you’re stressed, of course it station when he got into an impacts your wife and kids too.” employment wrangle with the Eventually things resolved overseers. in Brad’s favour and he and his Long story short, there was family moved off that farm and millions of dollars at stake got on with their lives. driving inadequate staffing levels But the experience stayed with and unrealistic and hurried him and he’s worked differently production targets. ever since. “They wanted hoggets lambing What did he learn? First, ask for at 90kg first year, when the help and don’t battle on alone. mothers were only 55kg average “Things got so tough for me cull ewes. Non farming investors that I rang the Rural Support Trust had been informed this would and they were a huge help. happen so, unfortunately for “I didn’t even need to meet me, when it obviously didn’t anyone, just ring. But like a lot their strategy was to blame the of people it took reaching crisis manager.” point to make that happen, which Months of stress took a toll. was crazy. “I was between a rock and a “You’ve got to reach out for the help that’s there as early as possible, not treat it as the ambulance waiting at the bottom of the cliff.” AWDT Understanding Your Farming Business The other issue 3 full-day workshops and an evening graduation ceremony he regrets ignoring run over four months. Equips and supports women involved was workload. in sheep and beef farming to lift business performance. “For over a year Registrations for 2019 programmes are now open, visit the I didn’t even have website for more information and to register. a shepherd. That Locations and dates (3 modules & graduation): was silly. Pukehou, Hawke’s Bay: 4 Sep, 2 Oct, 30 Oct & 27 Nov “I eventually Masterton: 5 Sep, 3 Oct, 31 Oct & 28 Nov put my foot down Clinton: 11 Sep, 9 Oct, 6 Nov & 4 Dec and demanded Lawrence: 12 Sep, 10 Oct, 7 Nov & 5 Dec one but I should Website: To register visit www.awdt.org.nz/uyfb/ have done it much Contact: keri@awdt.org.nz or 06 375 8180 for more sooner. information. “I think you have to make sure Red Meat Profit Partnership (RMPP) – facilitation you’ve got the training workshops tools and help you For rural professionals looking to facilitate an RMPP Action require so your Network Action Group.

agrievents

DON’T WAIT: Brad Woodford, with wife Nicole and sons Robbie, left, and James, got to crisis point before seeking help

efforts on-farm are sustainable. We all try to give it a go. The old ‘I can do it alone, I can achieve it’ attitude and often you can but sometimes you need to be a little honest with yourself as well. When he left that farm Woodford went to great lengths to get some balance back in his life. “I spent time with my family off farm, we moved closer to family, I started playing rugby again, which was a huge help because, recreationally, I had got to the point that I was doing nothing. “When I was a younger shepherd I’d played rugby but when I started managing I was sole charge, 1.5 hours out of town and afraid of injury so I stopped playing rugby and had no balance at all other than drinking with my neighbour who, in hindsight, was probably in the same boat as I was. Then when we left to manage a larger farm we were the only ones on the road so we had no neighbours to hang out with either. We were very isolated. “So, when we shifted, I also got involved in other community activities like kids sports and joined the school PTA, helped out on fund-raisers and the like. I started to feel way better in terms of my wellbeing. The rugby club was a rural one so there were also

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DO SOMETHING: Find an activity to get off farm at least once a week.

other guys I could talk to about farm stuff. Just keeping fit did a tremendous amount for me too.” Woodford’s family also scheduled more breaks off farm. “My in-laws have a bach at Whitianga so we started going there for a weekend every month or so. It was hard leaving the farm at first but then you realise nothing’s going to die in two days so you’ve just got to have a little bit of faith and go. Just getting out there and doing other stuff, meeting other people was by far the best way to cope with the pressures of being a farm manager for me.”

The days of people giving you a good job based on your dog trial results are all but over.

Woodford believes the industry needs to do more to take care of its managers and workers. “If you pick up the farm papers in any given week you’ll read about how hard it is for farmers to find staff. “I’d say ‘Take a look in look in the mirror’ because there are lots of farmers that have no trouble finding and retaining good staff. That’s because they’re good people to work for.” Woodford has allowed wellbeing programme Farmstrong to share his story in case it might help others. He offered a few pieces of advice for aspiring farm managers. The first is to work on their literacy skills. “The days of people giving you a good job based on your dog trial results are all but over. You need to learn about paperwork and Excel spreadsheets and office work. If you don’t you may never be a farm manager these days and you will certainly never own your own agribusiness.” The second is to choose jobs wisely.

“It’s always hard when you want to break out into farm management because you often have to take what you can get, whoever will take you on and give you a first chance but when you go for your second job, if you want another job that is, then you’re in a much better position to be picky and you should be. “For example, I’d be very wary about managing a farm for people who have no agriculture experience of their own any more. “Often they have large amounts of debt and they need figures that keep the bank man happy so they’re passing on all that stress to you. “You’ve got to be very careful of that. Get everything in writing beforehand so any targets are clear, achievable and agreed. “I would also encourage young guys to network – get to know the local accountants, business people or join the rural fire brigade, join Young Farmers. It’s good for the community and it’s good for you. Just get yourself out there and help others sincerely so that you get a good name and then people will want to find you. It can be a hard slog and you may not see the point of it at the time but eventually I got myself in a position where employers approached me. “Finally, make sure you get off farm. Even if it’s just going to dog trials or field days or helping at A&P shows. “And once a week at least, you’ve got to have a night off – go into town or the local rugby club. If you don’t want to play rugby, even if you just went to the training on Tuesday and Thursday nights and didn’t go to the game, it would help. Just get out and get involved in something. Find one thing you like and be part of it. “Most of all, don’t forget to look after yourself and your family. Sure, it’s great for your wife and kids to see you working hard but nobody wants to see you broken.” is the official media partner of Farmstrong

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News

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Spuds worth a billion Annette Scott annette.scott@globalhq.co.nz

POTATOES now contribute $1 billion to the New Zealand economy despite export growth not meeting target. Latest industry figures indicate potatoes are holding their own in exports and their value domestically has gone up. So while it’s pleasing to see steady growth in potato volumes and values the industry would like to lift its export market, Potatoes NZ chief executive Chris Claridge says. The industry is on target domestically with a 37% increase in values from 2013 to 2018. “Our strategic goal is to increase domestic market value 50% by 2025 and this looks achievable.” But the export market is not quite where the industry would like it for its 2025 goals. “We’re currently at about half the annual rate of growth for export from where we need to be. “The industry 2025 goal

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was to double exports,” Claridge said. But there are questions whether there is enough land and processing capacity, “The reality is potatoes’ export value can achieve $30,000-40,000 per hectare with less environmental footprint than other primary sectors. “We need to make it as easy and sustainable as possible for farmers to grow potatoes. “We know our product group is the third-highest horticultural export and we need to protect and grow that NZ asset.” Volumes are up because yields have improved with the increased volume going both offshore and into the NZ food service market. The values chart indicates an increase in New Zealanders eating chips with domestic processed volumes strong. There’s been a drop in export value for fresh table potatoes to the Pacific Islands but the volume remains static. An overall increase in

www.crmcphail.co.nz

Mop top virus is here to stay Annette Scott annette.scott@globalhq.co.nz

SUPPORT: Potatoes NZ chief executive Chris Claridge says the industry needs to make it as easy and sustainable as possible for farmers to grow potatoes. Photo: Annette Scott

process yields and estimated annual growth in value of 6% have contributed to the industry’s growth. It is now worth more than $1b a year. “The good news is market access for frozen fries is not hindered by any phytosanitary requirements

and so our export market is good, especially due to the drought in Europe. “We’ve seen gain in frozen fry values but loss in table values and southeast Asia showing increased interest in processed potato products, both frozen and crisps.”

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POTATOES New Zealand is taking the lead on longterm management of the crop disease mop-top virus now determined to have been in New Zealand for a long time. A joint Biosecurity NZ and Potatoes NZ disease response is being closed with the industry taking the responsibility for the ongoing management of the virus. It was confirmed in the country in September 2018, initially in Canterbury. A national survey to determine its extent found it throughout the country, indicating it has been here for a long time. “It became evident earlier into the response that this disease couldn’t be eradicated and that the best outcome for potato growers was for industry management long-term,” Biosecurity NZ acting readiness and response services director

(06) 357 1644

Sam Leske said. It’s the first time the two organisations have worked together on a biosecurity response. Potatoes NZ chief executive Chris Claridge said it was a successful end to the first joint response. “We’ve got a plan in development and that will incorporate research from world experts in line with best practice.” No significant losses have been attributed to the disease. “This response is an example of how a good partnership between Government and industry works to eventually help industry to be in a position to mitigate impacts posed by biological incursions and to support decisionmaking for the future.” Biosecurity NZ will continue to support the industry in developing the long-term management plan, which will include non-regulatory controls and voluntary agreement.

34 FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Newsmaker

NZ gets a voice on global board The appointment of a New Zealand Apples and Pears manager to an international board is being seen as a significant step for the NZ horticultural industry as it looks to take on a global leadership role. Colin Williscroft reports.

EW Zealand has, for the first time, gained a voice at the top table of a global organisation responsible for international food safety and sustainability standards. NZ Apples and Pears trade policy and strategy manger Gary Jones has been appointed as a producer board representative on Global Good Agricultural Practice. He is the first producer board representative from the southern hemisphere on the global body, with his nomination supported by Southern Hemisphere Association of Fresh Fruit Exporters representing countries including Argentina, Australia, Brazil, Chile, NZ, Peru, South Africa and Uruguay and NZ Apples and Pears, Zespri and Horticulture NZ.

Every country across the world is vulnerable to worker exploitation or modern slavery, including NZ. Gary Jones Global GAP Global GAP has its roots in Europe and Jones said work has been going on several years to get more representation from this part of the world onto its board, Being a world leader in food safety, social and environmental standards and practices is critical for NZ’s future sustainable food production and his new role is an important step for the local horticultural industry in establishing its place as a global leader. “Global GAP develops the systems and standards to meet the most sophisticated demands of retailers and consumers across the world.” Having a voice on the board of the organisation that provides the most widely accepted private

sector food safety certification in the world will give NZ a close-up view of where international food assurance requirements might head to in the future, Jones said. “That will help us seed in where NZ thinks it should go.” NZ-grown products such as apples and pears, kiwifruit and summer fruits on the shelves of overseas supermarkets have to meet Global GAP certification standards that include food safety and traceability, environment including biodiversity, integrated crop management and pest control and quality management systems. Compared with livestock products fruit-based food safety and sustainability standards in Europe are dictated more by the supply chain though there are also Global GAP livestock standards. Understanding how those requirements might evolve is critical because NZ growers run the risk of having supply contracts cancelled if they cannot provide the necessary documentation, he said. Global GAP standards also include worker health, safety and welfare. “It is the international organisation working in the social assurance space for combating worker exploitation,” he said. “Every country across the world is vulnerable to worker exploitation or modern slavery, including NZ, and we have just signed up to the United Nation’s guiding principles on human rights, exploitation and modern slavery,” Jones said. There is a growing expectation countries must demonstrate assurances their food production businesses are looking after their staff and providing good working conditions. “In NZ our horticultural sectors have the Recognised Seasonal Employment Scheme, which allows them to employ thousands of Pacific Island workers each year. To protect that scheme and our international reputation as good employers we must demonstrate we care for our entire workforce and take our social responsibilities seriously.”

LEADERSHIP: Gary Jones is the first New Zealander to be appointed to the board of an international organisation responsible for food safety standards.

Technology is going to change and significantly improve how accurate data is collected and provided for meeting assurance standards on a global scale. “Instead of going onto orchards or farms with clipboards and having face to face interviews collecting information and auditing the business we will be collating this data into dashboard type reports,” Jones said. “We might be on the other side of the world but our customers will become more globally connected to us and able to instantly access and base their buying decisions on how we care for people, the environment and our natural resources for growing safe food. Dashboards will allow retailers and consumers to view all the information on where, how and by whom the product they are buying has been grown and that there are safe and sustainable practices in place. “What’s also important is that these new technology advancements are both affordable and accessible for smaller businesses, farmers and growers, anywhere on the planet.” Jones said NZ Apples and Pears is already partnering with another NZ company, AskYourTeam, trying technology

that enables employees to provide confidential feedback on their working conditions, which has the potential to greatly improve auditing and reporting. “Thinking globally the challenge is that seasonal workers move around and farms and orchards are often remote so trying to arrange face-to-face interviews is difficult. With technology

and connectivity we can get this information far more easily and accurately and present it to interested parties such as retailers, consumers and governments globally.” Jones’ appointment is for three years and he can seek re-election after that. He will continue in his role with NZ Apples and Pears.

What is Global GAP? THE Global GAP board is made up of six producer and six retailer directors and is responsible for assurance standards set up to meet the world’s most widely implemented farm certification scheme. It was set up in 1997 as EureGap, a group of British retailers working with supermarkets in continental Europe in response to growing consumer concerns regarding product safety, environmental impact and health, safety and welfare of workers and animals. Their solution was to harmonise their own standards and procedures and develop

an independent certification system for good agricultural practice. Over the next 10 years the process spread, driven by globalisation, with an increasing number of producers and retailers worldwide joining in, giving the organisation global significance. To reflect its global reach and goal of becoming the leading international good agricultural practice standard EureGAP changed its name to Global GAP in 2007. Today the Global GAP system covers more than 700 certified products and more than 200,000 certified producers in more than 135 countries.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Kiwi wool bandage set to stick Like many of the earlystage ventures featured in Farmers Weekly, Woolaid was founded because of a problem. A problem young New Zealander Lucas Smith was determined to solve. He spoke to Luke Chivers.

ED up with seeing pesky plastic plasters littering Aotearoa’s most popular hiking trails a 24-yearold former mountain guide has developed a protective product made from Merino wool. Lucas Smith, of Tekapo, has launched Woolaid, a business producing what is believed to be the world’s first adhesive wool bandages. A few years ago he developed Walk On, Merino wool blister protection pads. Smith was raised in Timaru and went to Waihi School in Winchester before boarding at Christ’s College in Christchurch for his high school years. In the summer of 2013 he ended up working at Simons Hill Station in Mackenzie Country on a quest to pay his own way through tertiary studies. “It certainly taught me a thing or two about how to farm sustainably and how the Merino industry works,” Smith said. “The price of wool wasn’t great at the time, not to say it’s good now, and I couldn’t figure out how a sheep station was forced to pay to reinvest in future generations, sequester carbon and all that when the price for wool was so low. “I saw a lot of effort going into trying to fence off waterways and riparian planting but at the end of the day farmers weren’t being rewarded for it. “The traditional channels of selling wool through carpets, socks and garments, among other things, planted a seed. “I asked myself: ‘what else could be done with wool?’ and ‘why

DEVOTED: Tekapo entrepreneur Lucas Smith, 24, wants to shift the medical protection industry away from plastic to environmentally sustainable options.

I was forever picking up rubbish in our national parks. I knew there had to be a better way. Lucas Smith Woolaid hasn’t there really been a valueadd channel created?’.” That whole process was also a chance to figure out the supply chain and the performance properties of Merino fibre, he said. Smith dropped out of Victoria University halfway through studying for a degree in anthropology and political science in 2014.

Working as a tramping guide for visitors on the Routeburn and Milford tracks for the next two years was the catalyst for Smith to re-interpret an old technique for blister protection using the hyperfine wool of Merino sheep. “I got frustrated seeing people from all over the world who had saved up for five or six years to come to do this incredible scenic walk and then get flown out because of infected blisters.” In the next two years he tested and refined the 100% natural, biodegradable product. It’s not a new idea – farmers, soldiers, adventurers and explorers have been using the technique to protect their feet since the early 1900s – but Smith brought it back. Using strips of the product

CLEVER: Woolaid bandages are naturally hypoallergenic, antimicrobial, quick drying, comfortable, moisture wicking, flexible and environmentally sustainable.

around individual toes or friction spots prevents blisters or helps heal blisters naturally, he said. The wool eliminates heat and friction, taking moisture away from the foot. “The wool moves with the foot.” From his home garage in mid 2016 he designed and built his own website integrating an e-commerce platform to sell the blister protector online and established the brand and business, Walk On. It took him only a year to turn his idea into reality. Smith’s first order of 2500 pads was quickly outdone by demand nationwide. “It was exciting and soon my full-time job.” The mountains also led him to think of his latest product, Woolaid. “I was forever picking up rubbish in our national parks.” And most of it was plastic plasters. “I knew there had to be a better way.” It was another of Smith’s “a-ha” moments. “I thought ‘why isn’t there a bandage you can just leave on the track?’.” Woolaid bandages are naturally hypoallergenic, antimicrobial, quick drying, comfortable, moisture wicking and flexible. And they’re environmentally sustainable. “If you see one of these on the ground give it a big heel, put some dirt over it and it’ll biodegrade within a year.” The product took more than three years of trial and error Smith said “We went through about 15 to 20 prototypes of fabric before finally settling on one”. Getting the right weight density for the bandage to perform was among his challenges. “My whole ethos in designing this was that it had to work.

“There’s nothing worse than being out in the wild and your gear just doesn’t stack up.” Smith had just returned from testing the bandages in Alaska. He strapped them to endurance athletes who ran, skied and biked 1600 kilometres across one of the Earth’s coldest, harshest environments – the arctic tundra. It’s certainly one way to put a bandage through its paces. Woolaid is being launched in NZ now, most recently into pharmacies and whole food stores in the South Island and online, then into the United States market. The global adhesive bandage industry is worth $5.5 billion, research suggests. So, could it be the beginning of a new, value-add channel for NZ’s fine wool farmers? Smith thinks so. Ultimately, his aim is to shift the medical protection industry away from plastic to more sustainable options – and in his case, performance fibre. “People have fallen prey to believing that if it’s not wrapped in plastic then it’s not clean. “That’s just not true.” The first two runs of Woolaid products used Australian Merino wool because it has been difficult as a young entrepreneur to get access to NZ fibre, he said. However, the next round of bandages produced will be made from NZ Merino and there might be an opportunity in the future to do a blended fabric. “The bigger picture is taking the benefits of NZ Merino wool to the world.” Smith’s advice to anyone else who wants to get into business is to believe in themselves. “Know what your limitations are and don’t be afraid to lean into them and learn from other people.”

Opinion

36 FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

EDITORIAL

Time to get on with GE debate

HERE are growing calls for another look at genetic modification. With gene editing now a reality some say our laws banning GM are outdated and these new technologies could help us better achieve our environmental goals in terms of water quality and greenhouse gas emissions. Our story on P17 gives an update on AgResearch’s high metabolisable energy (HME) ryegrass, which is being tested in the United States as law forbids it being done here. If the grass does what AgResearch thinks it might, there would be benefits for farmers and the environment through lower methane emissions and drought resistance. It seems like a no-brainer when you just look at this science but these sorts of decisions have a wider impact. New Zealand is looking to forge a path as a sustainable producer of high quality grass-fed food. We want to tell a good story to consumers willing to pay a premium for our products. So, is the possible gain from embracing GM in our systems more than the gain we might get from staying GM-free and leveraging that globally? Is finding tools to let us continue producing at current levels better than producing a bit less at higher value? Should we ask our customers what they want first? It’s a big decision because we’re either all in or all out. There are no half measures. It’s a decision that takes in more than food as well. Gene editing could provide benefits in medicine and other areas as well though it is easier to contain in a lab than in a field. GM divides people pretty intensely and we won’t please everyone whatever we decide. But our law does need to keep up with the times so it is time to take a new look at this issue.

Bryan Gibson

LETTERS

What happened to boom times? ON NOVEMBER 26 2014 then Primary Industries Minister Nathan Guy told us the regions will be booming and arrogance and complacency will bring down Government. Well, with the latter he was certainly correct but four and a half years on are the regions booming? Reading the gloom today in the various farming papers it would seem not. Fonterra stands exposed and vulnerable to Chinese takeover. The big juggernaut went ploughing up the wrong pastures in the wrong countries and made a total idiot of itself. The co-operative is unlikely

to get out of the hole of its own making in its present form. Its shares have allegedly lost the average farmer $250,000. It was reported that dairy debt is $24 a kilo of milksolids but a comfortable level is just $15. And now the banks are getting harder and harder. On the other hand cropping, sheep and beef look okay and there is much scope to come with hemp for fibre and cannabis for health. But what worries me more than the present dairy difficulties is the arrogant and complacent policy the National Party took toward the environment. According to a recent and fascinating presentation by freshwater ecologist Mike Joy in Christchurch the Nats took

the science it was presented with and ignored it where and when it did not suit them. He used an analogy where an aircraft designer says “this aircraft can safely lift 50 tonnes. But the money men ignored that and are making it try to lift 150 tonnes”. We all know the Nats sacked a cautious Ecan and replaced it with their own. That drove the irrigation and dairy boom because “global food demand will be up 40% to 45% by 2025 so let’s not let this opportunity pass us by” (Guy again). And so we went booming in, all eyes wide shut, focused on white gold and not on the soil and water that makes it. Joy reckons that Government tolerance of

nitrates in water is three times more than what the ecologist thinks is healthy. I hope he is wrong because the environmental cost and fallout could prove much more expensive for the regions than Fonterra’s disastrous run. Andrew Luddinton Christchurch

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Problem of trees will last centuries The

Pulpit

Ewan McGregor

N THE 1960s the old Patangata County Council, now the eastern portion of Central Hawke’s Bay District, embarked on an ill-considered scheme to plant the road verges in radiata pines. It was the idea of prominent ratepayer Duncan MacIntyre, who farmed on the coast at Porangahau. MacIntyre was then the MP for Hastings; a complex and talented man, and a rising star in the Holyoake government.

Environmentally, he was before his time and in 1970 became our first Minister for the Environment. I recall MacIntyre stating at a forestry seminar in the early 1980s on the Tokomaru Bay Marae (he was then MP for the East Cape and Minister of Agriculture) that the Patangata council’s tree-planting initiative would provide income to offset rates. He couldn’t have been more wrong. The trees were never given any management that qualified for the term silviculture. Some had their central leader cut out when young, which is the antithesis of silviculture, surely. They now are a metre through with massive branches, hemmed in by a fence on one side and a road, now likely to be sealed, on the other. Pan Pac is not interested in them for pulp and the cost of removing them is beyond the means of the district counil. Where some have been removed, at great cost, uncontrolled seedlings have taken their place. In some instances seedling have established on the opposite side of the roads. These trees have at least another century of life and remain an awful imposition on the landscape. One, just 100 metres

GOOD JOB: Poplars are ideally suited for mitigating erosion, Ewan McGregor says.

from my entrance, has to be the ugliest tree on the planet. But it is not the only example where well-intended initiatives by public institutions have been accompanied by ignorance of consequence. Since the 1950s old catchment boards then regional councils have promoted the planting of millions of poplar trees over farmland to arrest erosion. They have done a magnificent job, along with willows, in soil stabilisation. Poplars are ideally suited for this but no serious consideration has been given to their management and potential harvest for timber. In many instances they have now reached a point where their size causes them to become a liability. Like those roadside pines they will live for another century if not felled, probably to waste. What a mess to clean up. As an indication, the largest poplar anywhere is in a Hastings park, planted about 1870. It’s massive. The slow process of dying is under way and in due course and at great cost it will be removed by the council. And this is just a single tree on flat ground. Globally, poplar is the most widely cultivated genus for timber so why not exploit these trees for profitable removal when they are past their use-by date? So, we don’t just need vision – that to be imagined – but to merely open our eyes to the vistas – those graphic examples. Where is this leading? If you haven’t guessed, it is to the headlong rush to plant a billion trees within the decade, driven by the Government. This has the makings of a landscape disaster and, in areas where contiguous whole-farm plantings in pine are done, the destruction of the social infrastructure that underpins rural life. No one will be counting them but progress will be estimated, no doubt with some creativity, and boasted electorally if targets are being met or taunted if not. It’s all about politics, not the future of New Zealand’s heralded landscape. Forget about numbers. Let’s consider outcomes. There are creative options here that fill the yawning gap between blanket radiata and indigenous forests. What can other countries show us? The rural landscapes of the United Kingdom and northern Europe show a picturesque harmonising of trees and structures into the productive farm landscape. This has evolved over many centuries and now has reached a high degree of permanence and is in accord with public preference. That is not to say we should replicate it, we should not, but it can inspire and demonstrate.

CATASTROPHE: The headlong rush to plant a billion trees has the makings of a landscape disaster, Waipawa farmer Ewan McGregor says.

This has the makings of a landscape disaster and the destruction of the social infrastructure that underpins rural life. Central European forestry ethic features the concept of what the Germans call plenterwald. That is a perpetual, productive forest of mixed and managed species. High-value logs are removed when ready, often with draught horses to minimise forestry damage. We could do the same with native associations, which include selected species managed for eventual harvest and, likewise, with exotic hardwood associations. These forests are picturesque, favoured for recreation and meet all the virtues that forests have to offer environmentally. Then, as alluded to above, there is the option of silvipastoral systems involving managed and marketed poplars over pasture or woodlots of reasonably fastgrowing species alternative to radiata, such as redwoods, and suitable eucalyptus species. What the Government needs to do is to establish an advisory structure to bring together knowledge and ideas involving farm foresters, research

institutions, regional councils and professional foresters to develop concepts in accord with general public aspirations and which will advance rather than potentially corrupt our rural landscape. It is true, we need more trees, as does the planet but NZ can be proud of its forestry practice. Our indigenous forest is protected over private and public land and almost all of our prodigious appetite for wood is satisfied from our softwood plantation estate with more besides exported. What other country can claim that? But we need vision as to the possibilities and an understanding of the issues to accompany this bucket of money. This crash programme is dragging pine forestry down over stable and productive pastoral land and made more irreversible by the change in land ownership that goes with it. The consequences will last for generations, perhaps centuries.

Who am I? Ewan McGregor is a Waipawa farmer.

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. farmers.weekly@globalhq.co.nz Phone 06 323 1519

Opinion

38 FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Free speech has big cost From the Ridge

Steve Wyn-Harris

THERE were a lot of us pretty annoyed last week when we read the piece Mike Joy and David Larsen wrote for the New York Times. It is a paper that now prints only half a million papers, down from a million a few years ago, but with online growth has more than four million readers. Those readers are influential, wealthy and our customers. Joy and Larsen wrote about how the tourism industry uses the fictional land of Middle Earth and the 100% Pure, Clean and Green tags to sell this country then put the case how filthy we are and blamed the dairy industry. It is all very well highlighting problems and forcing changes here onshore but to make a decent attempt at sabotaging not only the tourism sector but also our primary exports is nothing more than economic sabotage and treasonous. Capital punishment was abolished for treason only in 1989. However, there is still life imprisonment for this heinous crime. And don’t try the freedom

PICK YOUR TARGET: Dr Mike Joy and his co-author David Larsen should be getting alongside Kiwi farmers rather than alienating people who buy our exports.

of speech argument on me. I’d be interested to know if they sold this story. If they did, the term 40 pieces of silver comes to mind. However, I imagine the environmentally conscious reader of this piece will be far more worried about United States President Donald Trump’s climate change denial or the devastation of the Amazon forests by fires. Joy and Larsen wrote “The contamination of Canterbury’s freshwater easily ranks among the

worst environmental disasters in New Zealand history.” There is no doubt dairy’s impact on Canterbury’s freshwater has not been good. Environmental activists like Joy have swung the spotlight and debate to these problems and the sector is moving to mitigate and improve its performance. It can’t happen overnight but it is happening and we will see improvements. They didn’t mention the

massive riparian plantings, reducing fertiliser use or the reduction in 260,000 dairy cows. But to tell 4m readers this easily ranks among the worst environmental disasters in NZ history is hysterical and arrant nonsense. It is thought nearly all of what we call NZ sank beneath the sea 25m years ago. That’s not bad as environmental disasters go. Taupo erupted 1800 years ago and was the most violent eruption on earth in the last 5m years. It destroyed the entire central North Island. But perhaps Joy and Larsen meant to write human-induced environmental disasters. The pollen record clearly shows that within 100 years of Maori arriving massive fires swept through the whole country. They reduced the original forest cover from 80% to 15%. Southern NZ turned into a largely grassed expanse. What is cherished by environmental activists like the McKenzie Country is but a recent human construct. But these fires, rat introduction and hunting led to the extinction of 23 species of bird including the moa, swans, ducks, eagles, ravens and owls. The arrival of Europeans saw vast swathes of forests like the kauri, rimu and kahikatea clearfelled for domestic and export timber. Swamps were drained and English grasses introduced throughout the country. Another 30 species became

extinct and many more are hanging on for dear life. Not recent enough for Joy and Larsen? In 1920 just 200,000 people called Auckland home. By 1950 it was 300,000 and in 2017 it’s 1.65m or 34% of all New Zealanders. Aging sewerage and storm water systems are pouring their filth into the Hauraki Gulf, making Auckland’s streams some of the most polluted in the country. Just last week it was revealed that the plastic and micro-plastic that sloughs off Auckland into the Gulf is choking the life out of the creatures that call it home. Larsen lives in Auckland and shares in this unmitigated environmental disaster but doesn’t write about that in the foreign press. They wrote about the polluted Canterbury Rivers but didn’t mention the Avon, the most polluted and the one with no rural runoff, just city. Joy and Larsen, if you want positive change, as we all do, why highlight an issue to 4m readers who will have forgotten about you and your cause by now and completely alienate the very audience you need to address and get alongside? Us.

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

Australia wants it both ways WE’VE been in Australia for the last few weeks and there is major concern over the trade war between the United States and China. A trade war is futile, merely a tit for tat between the big boys without much thought for the consequences. It started with President Donald Trump labelling China a currency manipulator. China possibly is but so is America. Since the global financial crisis the Federal Reserve has injected trillions of new dollars into the American financial system, which supports its banks and holds down interest rates. There’s also the issue of American subsidies. Since China stopped American agricultural imports the US government has pumped $US16 billion into supporting its farmers. Both moves are currency manipulation. The issue is that once Trump hit Chinese imports with tariffs it was inevitable China would retaliate. The Trump strategy, like most of his moves, reflects an Americafirst philosophy of protectionism. The iniquity is it will be America that suffers. No-one wins trade wars. According to top Australian civil servant Martin Parkinson the trade war could rage for decades. Trump is regularly increasing

the rhetoric and the stakes. A trade war can also provide opportunities for third parties and that’s where Australia has a problem. On one hand China is Australia’s largest export market with a third of all trade going there.

It’s all boom with no gloom.

On the other Australia is becoming increasingly aligned with the US, especially in the Pacific. On the trade side you can read that beef and sheep meat exports to China are red hot. In the first three months of 2019 beef exports to China were up 67% and sheep meat by 83%. Forward contracts for spring lambs are running at $8.80/kg. Every article I read indicates a bullish outlook for exports there. Writers predict increases in both price and volume. It’s all boom with no gloom. It’s not just trade. Queensland University relies on Chinese students to the tune of A$250 million annually, for Sydney University the figure is A$50m. All

major Australian universities rely on China. In addition to Australian exports China has invested $100 billion in Australia since 2007. That means Australia is increasingly vulnerable to China’s whims. Goldman Sachs estimates if demand for Australian imports to China cools it will wipe $25b from the Australian economy. So, while Australia is desperate for Chinese support, both from trade and financial perspectives, it is the US they are strongly backing against China in both a strategic and military sense. Surprisingly, the Australian Treasurer Josh Frydenberg came out strongly supportive of America by endorsing American values in the Pacific. That outburst was preceded by Liberal back bencher Andrew Hastie comparing China’s rise to that of Nazi Germany. There were screams of righteous indignation over Papua New Guinea wanting China to refinance its A$11.8b debt. Having Chinese interests a very small step from Australia’s northernmost border isn’t something Australia wants but it can do little about it short of paying off the debt. Australia is developing massive military bases in PNG as a bulwark against Chinese

aggression. There was a further announcement of an A$3b boost to Australian special forces to meet the Pacific threat. Australia and the US have previously accused China of coercive conduct in the South China Sea including the militarisation of disputed islands. Australia is being urged to boost its armed forces in the north of the country to counter the threat from China. Queensland University, despite getting $250m annually from Chinese students, wants the government to work with universities to put a red line around areas of research that shouldn’t be shared with China. Pacific Island countries that have welcomed Chinese support and investment have been pilloried in the Australian media. Last week Australian Prime Minister Scott Morrison was in Vietnam vowing to work together as a strategic partnership. Vietnam is in conflict with China over the Spratly Islands. That followed a promise of military support for America in the Strait of Hormuz to remedy a problem largely created by the US. So, Australia is between the proverbial rock and hard place. On one hand it describes the US as Australia’s greatest

DILEMMA: Australian Prime Minister Scott Morrison is in a difficult position backing America while maintaining trade with China.

friend, strongest ally and biggest investor. Conversely China is its biggest trading partner. Australia can’t have it both ways. It could offer to mediate in the trade war but it’s decided to participate – on America’s side. New Zealand is in a great position providing we maintain our neutrality while concentrating on the opportunities the contretemps provides. My view is the Australian economy is about to take a $25b hit along with a devalued dollar so I’m happy leaving the Australian Reich to the Australians.

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

SUPPORT: The Government must show its backing for agriculture as the lifeblood of the economy.

Burying heads is not an option Meaty Matters

Allan Barber

AMID all the debate about agriculture’s responsibility to meet greenhouse gas reduction targets and the appropriate levels for those targets it might seem counterintuitive to claim an equally pressing problem is to earn a licence to operate. Just as great a threat to agriculture’s future is not whether it faces a potentially unachievable Government-imposed target but a business environment in which consumers make their decisions based on their perception of the acceptability of the food they eat. All primary production sectors – red meat, dairy, horticulture, fisheries, forestry and the rest – must recognise they are in competition for the attention of consumers who increasingly have the luxury and the right to decide between products they consume on the basis of multiple dimensions, way beyond the traditional choice based on taste, price and availability. While we are continually told the world’s population will provide ready markets for more than New Zealand can produce we are also

being made increasingly aware of the importance of sustainability and working with instead of exploiting the environment. Two weeks ago I wrote about the Government’s responsibility to provide leadership by demonstrating its support for agriculture as the lifeblood of New Zealand’s economy. Recognition of farming’s readiness to work towards a cleaner, more sustainable future will help the sector navigate its way through the climatechange maze instead of imposing impossible challenges without offering viable solutions. Provided the sector shows its willingness to co-operate in the search for a successful emissions reduction outcome the Government support will also assist the process of educating the public to see the sector in a positive light. Individual farmers cannot achieve a good outcome on their own but they require leadership from their sector representative groups, including Federated Farmers, Beef + Lamb, DairyNZ and others. Ideally, these groups, particularly the three that represent red meat and dairy farmers, will share common ground as they work with the Government to achieve a mutually acceptable outcome. The Primary Sector Climate Change Commitment is an excellent recent example of the sector working together and, hopefully, the Government

will engage with the wider representative group to discuss a realistic and scientifically-based programme, as distinct from the greenhouse gas reduction targets and proposal to impose a processor levy contained in the Interim Climate Change Committee report.

In the interests of good economic and political management the Government has a duty to resist extreme pressure from the lessinformed lobby groups.

Unless it is completely blinded by perceived electoral gain the Government must surely choose to recognise the concerns of a group representing 11 key sector organisations including Federated Farmers, B+LNZ, DairyNZ, Horticulture NZ, MIA and the Federation of Maori Authorities. It would be a significant step towards communicating to the public how crucial the Government sees the achievement of an agreed outcome with NZ agriculture in taking unified measures to withstand the effects of climate change. It would also send a signal to agriculture’s most vocal opponents of the importance of

a balanced policy perspective that looks objectively at climate change in a global context, considering the need to feed the growing world’s population as efficiently as possible. Cutting NZ’s agricultural output to satisfy the loudest naysayers almost certainly won’t be the most effective outcome and will have plenty of unintended consequences. The Climate Change Commitment is the ideal vehicle to demonstrate the sector’s willingness to reduce farming’s environmental footprint. It is critically important for the 11 signatories to speak with one voice, firstly to assure the Government it is dealing with an entity that represents all agricultural production and secondly to present a coherent face to a sceptical public. There are quite a few farmers who would prefer to bury their heads in the sand and hope it all goes away but the vast majority must realise that is not an option. The sector must engage with the Government to provide constructive assistance in the delivery of a practical way to address climate change, enabling agriculture to contribute sustainably to NZ’s economic welfare and meeting the demands of at least the rational majority of the public. Both the Government and the primary sector will have to accept they can’t please everybody and there will always be those at the extreme who are convinced

agriculture is getting away without making a meaningful sacrifice – think Greenpeace. Agriculture is unfairly criticised because it has objected to the early introduction of a processor levy based on the Emissions Trading Scheme but such a levy would fail to incentivise or provide tools for farmers to mitigate their emissions. The alternative Climate Change Commitment mechanism is proposed to kick in from 2025, admittedly later than critics want, but a timeframe that will enable most farmers to be equipped with the tools necessary to understand, measure and mitigate their onfarm emissions. Progress will also have occurred in the development of technologies to reduce emissions. This is a much more constructive way of ensuring the burden of contributing to the process of gas reduction is borne by the emitters. In the interests of good economic and political management the Government has a duty to resist extreme pressure from the less-informed lobby groups and, instead, co-operate with the willing representatives of NZ’s largest wealth generating sector. In this way agriculture will have earned its licence to operate.

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

Opinion

40 FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Does Oz Fonterra have a future? The Braided Trail

Keith Woodford

FONTERRA’S Australian operations must now be central to its financial unravelling. The announcement it expects a loss of around $600 million or more for the year ended July 31 has big ramifications for Fonterra Australia. With overseas milk pools now lying outside the central focus of Fonterra’s new strategy and with Fonterra seriously short of capital the Australian milk pool and associated processing assets look increasingly burdensome. If Fonterra divested its Australian operations it would demonstrate it really is retreating to be a New Zealand producer of NZ dairy ingredients. It would also reinforce the notion that consumer branded products are now largely beyond its reach. This strategic position is close to where Fonterra was in around 2006 when it decided it was 50 years too late to take on the likes of Nestle. It did have both Australian and Chilean operations at that time but they were smaller than now. It also took on an initial shareholding in Chinese San Lu at that time but, essentially, Fonterra saw itself as a NZ-based co-operative. Thereafter, Fonterra began increasingly to see itself as an international dairy powerhouse. That perspective drove the strategy for more than 10 years but the implementation was woeful. Stepping back to something more modest will be disappointing to those who saw Fonterra as a national champion. However, it now looks like the only option given the hole Fonterra has been digging for many years. In recent years Fonterra has been processing about two billion litres of Australian milk a year. For a short time it became the largest Australian dairy processor with a market share about 23%. The Australian operations have underpinned much of Fonterra’s consumer branding strategy. Fonterra used to describe Australia as a home market. That was built on the notion the NZ market was too small to be the necessary beachhead for global consumer markets. Consequently, though the Australian production has been only 10% of Fonterra’s total production it has been much more important in terms of consumer-ready products. Fonterra is now caught in two Australian pincer movements. The first is that Australian dairy production is in both short and long-term decline. In part that is caused by drought but it goes deeper with structural change that

IN DOUBT: Fonterra’s future in Australia is in question. The Darnum plant has been involved in both its operations there and with the ill-fated Beingmate venture.

The time has come when Fonterra needs to lay out absolutely everything in front of its farmer members.

includes both broader economic pressures and loss of irrigation rights. The second pincer is that Fonterra is now losing market share to its rivals. In a market where companies are competing for milk supply Fonterra is operating from a weak position. Overall, it looks increasingly as if Fonterra is well down the track to losing at least 500 million litres of its previous supply, representing a decline of about 25%. That decline has potential to accelerate. Fonterra advised the Australia Competition and Consumer Commission in December 2016 that its Australian equity was A$1b. Since then Fonterra has invested further in Australia. As a comparison, Fonterra now has total global equity of less than NZ$6b. It plans to now write down its Australian assets by NZ$70 million. That does not look enough. With speculation in Australian dairy circles that there will be a least one Australian processor casualty, Fonterra is widely identified as a potential candidate. Part of Fonterra’s problem is that it has dug such a deep hole.

There has been a series of mis-steps, based on poor understanding of on-the-ground realities. The mis-steps go right back to the initial buy-in to Bonlac around the turn of the century, started by the Dairy Board. However, that was just the first mis-step of many. The harsh reality now facing Fonterra is that no-one will want to buy a non-profitable business with stranded assets. This situation is very different that two years ago when Murry Goulburn co-operative finished digging its own hole. At that stage there were no stranded assets and so there was good competition for Murray Goulburn, with Canadian company Saputo coming out the winner. The consequent complication for Fonterra is that in the absence of buyers it becomes vulnerable to much bigger write-downs in the value of its Australian assets. That, in turn, puts a lot more pressure on Fonterra’s NZ balance sheet with implications for its overall financial ratings. In that environment the pressure comes on to sell more and more assets. In that environment the financial structure unravels. It’s never good to be selling assets in a fire sale. This is part of a broader problem for Fonterra that, apart from Tip Top, which sold remarkably well, its other dispensable global assets are all struggling to find buyers. Given this conundrum, the decision path inevitably leads

back to what else Fonterra might be able to do to raise more cash. Some commentators are suggesting Fonterra might separate off its consumer brands in another company. That starts to sound somewhat like a good bank and a bad bank solution as occurred internationally at the time of the global financial crisis. The bad company might include Soprole, DPA Brazil. China Farms, Beingmate and Fonterra Australia. It would be remarkable if anyone wanted to take on a company in that form. More likely is that each will have to be hocked off separately. Ten and more years ago I was an advocate of Fonterra splitting into a two-company model, with a processing co-operative and a second value-add company that was investor-focused. Alas, the days when that could have been the answer have passed. The other alternative is that, one way or another, farmers will have to stump up with more capital. That prospect would be highly unpopular with farmers, many of whom have their own debt and balance sheet issues to deal with. Until now I have been resistant to the notion Fonterra’s problems might be solved by reducing the milk price. My reasoning has been that this would simply paper over the cracks and inefficiencies in the food service and consumer businesses. However, with the cracks now turning into crevasses there might be no other option.

In fact, Fonterra has already done this twice since implementing the current capital structure in 2012. But that was in a very different socio-economic climate. And this time the amount would have to be considerably greater. All of this arises from more than 10 years of group-think combined with massaging of messages. It seems Fonterra believed its own propaganda. At farmer level, it was effective. Most of Fonterra’s farmer directors have travelled widely on formal visits to the markets but have never done enough of their own footslogging away from the company propagandists. Fonterra’s external directors were also the wrong type of people. Within the last year there has been increasing acknowledgment within Fonterra of the difficulties it faces. However, there is still too much defensive messaging. It is very hard for corporates to resist a public-relations culture of storymassaging that comes from deep within the corporate DNA. The time has come when Fonterra needs to lay out absolutely everything in front of its farmer members.

Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Mixing species in the pasture Sue Edmonds WHEN we refer to conventional farming what do we actually mean? What picture floats into the mind of what is involved? What I see, at least for pastoral farms, is a paddock that isn’t producing too well and maybe it’s time for a makeover. So the farmer gets out the spray and gives it a good dousing to kill off what is left growing. Then he gets out his plough and gives the soil a good turning over to loosen it up and get it ready for whatever single pasture seed is fashionable that year. Before the seed is planted he is most likely to also spread whatever chemicals the rep has suggested will be lacking. The amounts will vary but there will be plenty of urea to make sure there is enough nitrogen to get things growing. I was appalled when a maize grower told me it takes 70kg nitrogen/ha on his place to get the crop started. With sufficient chemical fertilisers the new, single-variety pasture will roar away. Job done. But what else happens is that any soil life remaining in that

paddock is chewed up by the plough. And only a small percentage of the chemicals applied will be able to be taken up by the new plants because the helpful soil life, which in all its forms can turn those chemical elements into forms that plants can absorb, is gone. And any chemicals, such as phosphorus, which is already in the soil in great quantities, can’t be made plant soluble. So it either goes on sitting there or leaches down into groundwater and does unwanted things to freshwater. And in following years the farmer finds it takes more and more chemicals, particularly urea, to achieve the same pasture growth levels as in that first year. But he keeps doing it because the rep is pleased with him and with each dose of urea the pasture grows back fast and that is needed to keep the rotation going. Now let’s imagine a regenerative system farm. The farmer understands the myriad creatures living in the soil work in harmony, not only with each other, but with the roots of the plants growing above them. The plants provide the sugars

COCKTAIL: Research has shown a pasture containing several species can produce up to three times as much as a single species and be more drought-resistant.

etc that feed the creatures, the microbiome, and the creatures, in sequence, turn the chemicals that the plants need into plant soluble forms that make them grow. So there need to be plants growing at all times and soil structures left to allow the soil life to work together. And the plants need to be of different types because each type provides different food types for the creatures below.

When animals graze the pasture the level they are permitted to graze down to is monitored so enough root mass is left to provide enough sugars etc for the soil life to provide enough of everything else to make the pasture grow again. And when the animals are grazing they emit urine and faeces and some of the plant stuff dies off and is left behind to rot down and mixes with the excreta to form organic material that will, in time,

LET IT BE: With regenerative agriculture a cover crop can be grazed or mown and left to rot but should be multi-species to give better cover and more drought resistance.

The farmer understands the myriad creatures living in the soil work in harmony. form humus, when all the soil life has done with it. So, there’s no ploughing. If a crop such as maize has been grown and harvested then a cover crop of various species has immediately been no-till spread and grown. And the cover crop might be used for grazing, or be mowed and allowed to rot down, while another harvest crop is no-till spread and grown. And organic matter is constantly being supplied to the soil, feeding the soil life and creating humus. This year a number of maize crops grown in Waikato have been harvested and no-till used to plant grass but it looks to be still a single species, which can only provide the soil with a limited range of elements. Proper cover crops are always multiple species, in some cases using seed of up to 12 different plants. Trials in the US have shown cocktail cover crops can produce at least three times more than single species and be more drought-resistant too. While new regenerative farmers might continue to use some chemical fertilisers in rapidly reducing quantities for a year or so, those making the best of animal grazing, cover crops and organic matter get the soil life reproducing, increasing in species and doing all that the soil needs in very short order.

On Farm Story

42 FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Chasing the rainbow He can play it for laughs and he can play it serious. There’s a discerning side to social media star farmer Tangaroa Walker. Tim Fulton reports.

EDIA sensation Tangaroa Walker has X-factor in spades and he wants to use it to lift other farmers out of the mire. Walker has a virtual arena for the job, his vividly upbeat and out-there Facebook page, Farm 4 Life. He is a contract milker on a 550cow farm at Invercargill. The page is a funny but sometimes poignant look at the industry’s challenges. It’s full of piece-to-camera videos with Walker riffing on issues of the day. Sometimes he strings together interviews with farming professionals but mostly it’s just him, with yarns and banter. On his LinkedIn page Walker says Farm 4 Life is a social media channel aimed at educating and inspiring youth into the dairy sector. “Farm 4 Life has also helped current employees and employers manage their farms along with goal-setting and advice around new technologies and opportunities that are now flooding the market, helping us run more user-friendly operations and systems,” he says. He describes Farm 4 Life as a documentary of the life as a farmer in New Zealand, sharing not only the good and the bad but also the ugly. The page has a hard-core following. When he posted plans to take a holiday to Ireland he was bombarded with invites from Irish fans wanting to meet him and have him stay a night or two. His style verges on anarchic, loaded with verbal twinkle that makes viewers dissolve with laughter.

He has been known to keep a noteboard handy behind the camera to maintain a train of thought but the commentary rolls out naturally. In some of the more telling moments he revels in the memory of discovering self-employment. “I didn’t know what I wanted to do when I left school but what I did know was I wanted to be successful. I had quite a few mates around me whose parents owned their own businesses and they seemed to be having fun … they had nice cars and ate bloody good food, phwoah. “I remember getting first introduced to cheese and grapes and salami. I thought far out, what’s this concoction? I want to be able to hoard this stuff.” Walker says he won’t be changing his style no matter how much he’s asked to be an educator or role model. The whole idea is that he’s putting a real person out there for all to see. “I’m literally just another farmer, farming, except I’m videoing it and talking about it. That’s the only difference. So I’m no leader in the dairy industry.” In fact, he’s been doing leadership for quite a while. In 2011 he was the Southland AgITO student of the year and in 2012 was named the country’s best young Maori farmer in an Ahuwhenua Trophy category. Before long he was speaking at meetings and conferences around the country, all while working, studying and pursuing a promising rugby career. These days he’s a motivational speaker at schools, colleges and universities and a guest at agri industry events and discussion groups. Rotary has had him along too. He does understand his impact.

NOT ALONE: Tangaroa Walker might be a social media sensation but he says he couldn’t do it without his fiancee Courtney Heke-McColgan.

On his Farm 4 Life LinkedIn page he acknowledges the responsibility on his shoulders. “I have become a part of people’s day to day lives. My followers trust me and what I do. “To the extent that I have helped, many people see the light during dark times within their business, workplace and everyday dramas that come with farm life.” He has the bearing of a hard case joker – an unaffected bloke who survived a mixed-bag of an unbringing and fell in love with farming. He’s also no mug and as his fame is growing he is determined to make it pay, to lift him out of a wage-dependent life.

ATTRACTION: Tangaroa Walker started social media channel Farm 4 Life, which is aimed at educating and inspiring youth into the dairy sector. Tangaroa posts a video to Farm 4 Life from the paddock. Photo: Natasha Chadwick

If he manages to keep building his profile it will be fame with a purpose, he says. Walker had a difficult upbringing at times. He moved into 16 different houses and went to six different schools before the age of six. He was adopted twice but says he always had a loving family. His parents never had much money so he had to be inventive. “The reason I want to be that person is because I didn’t have it. You want to be that something for someone else. My parents are wage earners, they don’t own businesses, they don’t have accountants, they don’t have a bank manager that works

specifically for them and their business.” The farm, he once told his Farm 4 Life audience, is “pretty rough, really run down and my parents didn’t have much money to go and buy new things so we used to have to improvise, to try and put a three-inch hose on to a half inch hose and cut it, with tape and all the rest of it”. He’s brutal about his lack of classic academic credentials. On one of his clips he recalls being “so terrible at English, like I was literally rubbish at English and I’m still rubbish at it. I can’t spell and I still spell tractor with a k”. “I’ve never read a full book in my

SELF SUFFICIENT: The farm is a System 3 and grows all feed on-farm including 25 hectares of fodder beet. Tangaroa and the herd in the fodder beet crop. Photo: Natasha Chadwick

On Farm Story

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

GRADUAL: Tangaroa Walker, originally from Bay of Plenty, began working three days a week on a farm through a work/ school programme to transition students into jobs. Photo: Natasha Chadwick

KEEP AT IT: Maintenance on the farm is ongoing. Tangaroa scoops up metal for a race. Photo: Natasha Chadwick

I didn’t know what I wanted to do when I left school but what I did know was I wanted to be successful. Tangaroa Walker Farmer whole life but I don’t think of that as a negative.” When he was 15 Tauranga Boys’ High started a work-school programme to transition students into jobs and Walker began working three days a week on a farm. Until then his farming experience beyond his parents’ place was limited to a job in a nearby piggery and a spot of relief milking. He is of Ngati Pukenga and Ngati Ranginui descent, tribes from the Tauranga area. As he weighed up options for self-employment, farming stood out as the most lucrative choice. “I didn’t want to be rich or successful straight away. “I just wanted to be there at the end. I could see this vision at the end of the rainbow.” When he entered agriculture, starting out in Bay of Plenty, his first employers showed him a different way of doing things. “I saw what they had, how they carried themselves and how they supported the community.” He admits to feeling a bit lost in open waters when he left that farm to go dairying in Southland. “I didn’t have any support or anything in terms of advisers on how to go managing or contract milking.” Looking back on his own battle he warns new farmers against jumping headlong into a job without thinking about the social side of life. “They go out and they end up in the middle of nowhere, they milk the cows and they come home

and don’t think about the future or why they’re there. They just get so pugged down in mud they just keep smashing their head against the wall.” He says he broke that rut by marketing himself to the max. Walker figured he wouldn’t get far in dairy if he did what everybody else did, plugging away, biding his time. So he entered competitions, went to farm discussion groups and made a point of getting in front of people. He always felt opportunities would come his way if he went looking. Now he’s firmly ensconced in Southland, contract milking at Woodlands for an equity partnership. It’s his fifth season on the 186ha unit. Last season the herd produced 222,000 kilograms of milksolids and this season it is targeting 245,000kg MS. The farm is a System 3 and grows all feed on farm including 25 hectares of fodder beet and 5ha of kale, which is fed from May 20 to September. They lift 130 tonnes of fodder beet, which is fed during the milking season. They also make about 500 bales of balage and buy in 70 tonnes of palm kernel. Calving begins on July 25 and this season they are calving 550 cows. They rear about 130 replacements. Calves are fed twice a day and weaned at 100kg then sent to graze with New Zealand Grazers. His fiancee Courtney HekeMcColgan does not come from farming background. She grew up in Southland then studied finance and economics at Otago University. “When I returned home from university I met Tangaroa and sort of fell into contract milking with him,” she says. After a stint with Craigs Investment Partners she applied her rural business knowledge to a banking career. She’s now a local agribusiness manager for Westpac

and runs a gym with Walker in Invercargill, using Farm 4 Life to promote it. One of his big goals is to help farming women carve out their own identity and purpose. He is determined to encourage women to define themselves by their own skills and ambitions – and a mental blueprint for that is Courtney. “This is something I’m real passionate about. I see farming wives who are very intelligent, who are very driven and their own set of goals, their own mission in life but they tend to meet a farmer and fold in behind the farmer or next to them,” he says. “Yes, many love the job of supporting their partner in the running of a shared business but I see many who fall into the shadow of their husband. “And I could never do that to Courtney. I could never see her at home, just being my accountant or my calf rearer.” “She’s got her own goals and it’s awesome to come home at the end of the day and ask how her day was. And she can blah on about her crappy day and then all of a sudden I don’t feel all that bad about my crappy day.” With Courtney beside him, he does some more thinking out loud. “When you’re working with people, you rub off. “If you’re at the top you rub

off on everybody that works below you and beside you so you want to have a really good work environment that makes it easier for me. If I’m stuck on farm all the time ... you lose perspective of what you’re here to achieve.” As for other ventures, he says he is just waiting for a commercial proposition to come along, backed by a cornerstone sponsor. “I would like to do this full time. I would like to educate people about what I do on my farm. But it’s very time-consuming. “As soon as it comes along I really want to jump on it because every minute that I’m not on the farm I’m paying someone else, out of my own pocket, to do the job that I’m not doing.” A 30-minute Farm 4 Life video can take two hours to produce – and that’s all time he could spend on the farm. “I’d put $500 on every video. If a company came along and said, can you endorse this product it’s going to cost a lot of money but it’s not just paying for that specific video, it’s paying for all those other videos.” He says he is ever-evolving and often changes settings on the content and how it is displayed to his viewers. And it costs. After considering that sting in the back pocket Walker decided it would be more cost-effective to change the content.

“I was putting calving videos out, of me pulling out breech calves and stuff like that. People started asking me questions … and I realised that was better pulling power than paying $30 to get the shares, the likes and the following.” Walker gives the appearance of being continuously on … of being up for any farming challenge. But he says there was a time – once – when he thought about packing it in. “I was managing and we were flat out, really busy pulling out calves, big Herefords from our heifers, and we were just really having a tough time.” The stress ramped up. “That pressure of being under stress from animal health issues really got to me and this was ongoing for six weeks, up till about 1am and having to be up again at 4am just because you’re the manager.” Feeling near the end of his tether he talked to his dad. “I said ‘I don’t know if I want to do this any more, eh’. He said ‘oh crap, that’s bloody weird. That’s not like you’.” But the moment passed. This story first appeared in Dairy Farmer. >> Video link: bit.ly/OFSwalker

MULTI TASKING: Courtney is a local agribusiness manager for Westpac as well as running the gym in Invercargill so doesn’t get out on the farm often. Courtney and Tangaroa check out the herd on the fodder beet crop.

World

44 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Alt milks fighting among themselves CONCERNS that consumers are switching from drinking cows’ milk to plant-based alternatives appear to be unfounded. A report by Britain’s Agriculture and Horticulture Development Board said even though demand for plant-based drinks is growing, the volume of cows’ milk sold remains stable. Analyst Hannah Clarke, who used figures collated by market analyst Kantar, said the figures suggest shoppers are not necessarily switching away from cows’ milk but trying the alternatives as something new. “Despite the noise around plant-based beverages the Kantar data showed consumer spend on cows’ milk in the year to June grew by 2.2%.” The increase was largely driven by price rises as volumes remained relatively flat at 0.4%, down on the previous year. Organic milk has also had gradual growth, with the sector now accounting for 2.8% volume share of the total cows’ milk market. But the increase in sales was not down to new customers – it was due to existing shoppers buying more per trip. That means despite relatively flat prices the total sales value of

organic milk had risen by 2.6% in the year. In contrast to the stable volume of cows’ milk sold, plant-based beverage sales values increase by 18% to a total of £269.4 million. “The growth is testament to innovative branding and marketing, increasing shopper penetration by 9.1% on the year to 28.9% of British households. “New entrants such as nut and oat drinks are also widening the reach and appeal of the sector,” Clarke said. The new entrants are not taking market share from cows’ milk but from long-established plant-based drinks such as soya. The market share of nut-based beverages overtook soya in the last year, with sales of £8m. Likewise, oat-based drinks had substantial growth and now account for a market share equivalent to more than half that of soya beverages. The growth in oat drinks might be starting to address consumer concerns over the potential environmental footprint of other plant-based drinks, especially in terms of water use, Clarke said. Meanwhile, British dairy farmers will have to comply with more stringent health and welfare rules after Red Tractor Assurance

announced a long list of changes to its standards. The changes will come into effect on October 1. The changes are needed to ensure practices meet veterinary advice and consumer expectations on how food is produced, Red Tractor said. The list includes changes to: animal health plans, pain relief, animal husbandry, disease control, colostrum management, antibiotic use, medicine administration, documentation, milk production and health plans. Livestock health plans must be done with a vet who will sign off the final version. Part of the health plan covers pain relief such as anaesthetic, analgesic and non-steroids. Along with noting details in the plan all administration must be entered in medicine records. Cauterising paste for disbudding will be permitted only on stock under seven days old. Animals must also receive pain relief. All scheme members outside Northern Ireland must complete a Johne’s action plan, signed by a British Cattle Veterinary Association accredited Johne’s adviser.

IT’S STILL SELLING: Figures show sales of cows’ milk are not dropping despite an 18% increase in plant-based milks in Britain in the last year.

Members must also demonstrate their efforts to eradicate BVD through testing or national scheme membership. Farms must no longer feed milk or colostrum from Johne’s-positive cows to young stock that might potentially enter the breeding herd. Vet reviews on antimicrobials use will be more stringent and focus on off-label use of medicines plus alternative disease prevention strategies. Vets must be informed of any failings in antibiotic administration. One person who administers

medicines must have completed a training course on the safe use of medicines since October 1 2016. A written plan should be displayed for all farm staff, outlining what action should be taken if emergencies occur affecting food safety, animal welfare and environmental protection. And parlour cleanliness rules have been tightened. Farms must have a protocol for parlour wash phases to take account of maximum residue levels of chlorates in milk. UK Farmers Weekly

Floating farm is self-contained THE world’s first floating dairy farm is producing more than 600 litres of milk a day from the centre of Rotterdam in the Netherlands. It aims to demonstrate how an environmentally sustainable farm can be sited within a large urban population to exploit the market for its produce and minimise emissions associated with product transport. It is also designed to show how a farm can operate with less exposure to the effects of climate change that have raised concerns over flooding, particularly among Dutch farmers. The 1200 square metre farm floats in part of the world’s busiest port and was the brainchild of Peter and Minke van Wingerden of Beladon, a company that specialises in water-borne architecture. After a lengthy construction phase the multi-tiered farm is now home to a herd of 32 Meusse Rhine Issel cows, which can wander back onto dry land to a neighbouring field using gangplanks. In the building the cows are housed in stalls on the top tier beneath a roof designed to collect rain for the farm’s fresh water. The farm generates all of its own electricity from an array of floating solar panels.

DRY COWS: Beladon chief executive and floating farm initiator Peter van Wingerden with the farm in Rotterdam Harbour.

The tiers below the cow stalls are used to process milk into bottles or make yoghurt, mix feed, store water and handle muck. The cows are fed on a mixture of spent grains from the city’s breweries and cut grass from nearby parkland and golf courses. Van Wingerden said the feed sources provide 80% of the farm’s needs with the rest provided via a collaboration with a Dutch foodsupply specialist. The forage is collected from

sites across the city using electric vehicles with our own boxes, he said. On farm the forage is distributed from the boxes via a feed belt, directly to the cow fences. Originally, the venture included a tier devoted to growing forage under LED lighting. However, it was ditched in favour of the waste grass and feed option because space was too tight to grow the amount of forage

needed. “We calculated that with the available space we have inside our floating farm we could only produce a maximum of 1520% of the grass required,” van Wingerden said. One of the big concerns raised when the project was suggested was the potential for pollution of the river water below. But the challenge has been overcome using a processor on the site that reduces the slurry to

dry fertiliser, minerals and clean water. “We collect the manure with a manure robot, which dumps it into a funnel,” van Wingerden said. “At the end of the funnel we compact the manure into raw solids and urine.” The solids are dried and go back to the city as fertiliser for the grassland areas. The urine is treated to remove the minerals, which are converted to fertiliser while the remaining liquid is purified into clean water, which pours into the river. The MRI cattle are milked by robot and are giving 20 litres a cow a day. The milk is pasteurised for bottling or homogenised and turned into yoghurt. “All of the output is sold within Rotterdam, either directly at our shop, in restaurants or at supermarkets.” The milk retails at €1 for 250ml or €1.50 for a 750ml bottle. As well as the yoghurt and milk, van Wingerden hopes to begin cheese production. Beyond that, further dairy farms are planned. “We are also working on a floating egg laying unit and a vegetable farm. “We hope to launch these in the Netherlands next year,” he said. UK Farmers Weekly

World

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

News reports show anti-farm bias FARM leaders in Britain have accused national media of twisting the facts in a major climate change report to promote their own anti-meat agendas. The United Nations’ Intergovernmental Panel on Climate Change report on global land use and agriculture recognises the importance of diverse farming systems, including sustainably managed pasture and livestock, as a key means of mitigating climate change. It concludes balanced diets should include animal-sourced food produced in resilient, sustainable and low greenhouse gas emission systems. They present major opportunities for climate adaptation and mitigation while generating significant benefits in terms of human health, the report said. But some sections of the media claimed the report calls on people to reduce their meat consumption in favour of a vegan diet. National Farmers Union president Minette Batters said “Having gone through the report in detail it is clear that the

IPCC recognises the important role animal products play in a balanced diet and when produced sustainably in low greenhouse gas emission systems it is actually part of the solution to climate change. “It is therefore incredibly frustrating to see this inflated within some parts of the media to recommending a reduction of meat consumption in the United Kingdom.” Batters said the NFU’s aspiration to become net zero – reducing agriculture’s GHG footprint and offsetting emissions – by 2040 does not mean downsizing production. She said 65% of UK farmland is best suited to growing grass and that means using grasslands, which are also a huge store of carbon, to produce high-quality beef and lamb. NFU Cymru president John Davies said Wales is blessed with the natural resources to produce high-quality protein in the form of meat and dairy products from grass – 74% of farmland in Wales is grassland, which is less suited to growing other crops.

“Overall, Welsh agriculture contributes 12% to Wales’ total emissions and we absolutely recognise the contribution we have to make in tackling climate change at the same time as providing safe, high-quality, affordable food for society and underpinning the Welsh food and drink sector, which is Wales’ biggest employer.” Sustainable Food Trust chief executive Patrick Holden said “We think many of the headlines about this report are not accurate and we instead need a much more nuanced public discussion about which foods, both livestock and plant-based, are part of the solution and which are part of the problem. “It’s all very well for those recommending a switch to eating more plant-based foods but if those diets include foods like palm oil, genetically modified soy, almond milk or avocados, for example, all of which are from production systems that are causing damage to the environment, they will do nothing to tackle climate change.” UK Farmers Weekly

NECESSARY: Animal protein production is part of the solution to climate change, National Farmers Union president Minette Batters says.

Clarkson on life, death and forms PETROLHEAD television presenter Jeremy Clarkson will ditch coupes for crops in a new series about his passion for farming. The former Top Gear presenter, 59, lives on a 404ha farm at Chipping Norton, Oxfordshire, where he grows wheat, barley and oilseed rape. Filming has begun for the new series, I Bought the Farm, which will be aired in September on Amazon Prime. Clarkson said the show will be more hard-hitting than Countryfile, already showing on Sky in New Zealand, and document the realities of farming such as dealing with extreme weather, pest and disease pressure and paperwork. “This is not Kate Humble – much as I like Kate Humble – with 20 acres, bottle-feeding a lamb. Or a TV presenter who grows veg in his back garden. “This is actual farming: Life, death and formfilling,” he said. “We’re not making Countryfile. We’ll be showing it warts and all. For example, I have no view on badger culling in terms of whether it’s necessary but if it’s happening we will not shy away from putting it in the programme.” The series will highlight the difficulties farmers face daily in their efforts to increase food production for a burgeoning population

AMBASSADOR: Jeremy Clarkson intends to show the warts and all reality of farming in his new television series.

while protecting the environment. “When you till the soil or plough in weeds it releases carbon into the atmosphere. “So you think ‘Okay, I won’t plough, I’ll just spray the weeds’. But that’s bad for the bees,” Clarkson said. “Every decision you make as a farmer is bad for some reason or another.” This year his fields were infested with black grass and his oilseed rape was damaged by flea beetle. His grain became contaminated with gravel when he tried to store it on an old airfield.

And when he tried to take some of his land out of stewardship and put it into production the civil servants refused him permission. “I take the global view that the bigger the world’s population gets the more food we’re going to need. “So, it’s slightly mad not to increase crop production because there’s a rare grass growing,” he said. Clarkson will voice his fears about a looming food shortage. “Scientists calculate that we have just 90 years before we run out of food because of soil depletion.

I do eat chicken. But that’s just a vegetable with a head. Jeremy Clarkson Farmer “That’s just 90 more harvests.” Clarkson also admitted to changing his own diet, eating less red meat and more vegetables. “I do eat chicken,” he said. “But that’s just a vegetable with a head.”

Use good environmental impact to recruit young FOCUSING on promoting the positive impact agriculture can have on the environment might prove to be the key to attracting new talent into the farming industry. New research by the RSA Food, Farming and Countryside Commission offers an interesting insight into how the industry might tackle the skills shortage it faces by examining what young people are looking for in a career. It comes as a new survey by a firm of accountants based in Scotland reveals recruitment is now a major issue in the farming community. The survey, done by Johnston Carmichael, found 70% of the 150 farmers and landowners it questioned have found it hard to find staff with the skills they need. The farming industry faces a skills shortage across all sectors but there is particular concern about the impact of Brexit on the availability of seasonal labour, which will be affected by changes to the rules on freedom of movement. The RSA Commission spoke to more than 1000 young people aged 16 to 24 to get a sense of what they are looking for from their working lives and to see if there are aspects of working on the land

that might be attractive to them. The research found most young people would be proud to work for a business that protects nature, helps to tackle climate change and helps people to live healthily. They are all issues aligned with the new policy framework for agriculture, which puts a much greater emphasis on environmental land management and the enhancement of natural capital, the commission said. More than 60% of respondents said they would also be willing to try work they might not have considered before – suggesting even people with no association with farming might consider a move into agriculture. However, the campaign for better connectivity in rural areas needs to remain a priority because fewer than 20% of respondents said they would be willing to live in an area with poor broadband. When respondents were asked what the most important factors are in their working situation, the top three answers were job security, being well rewarded financially and having an employer who shows they care for their staff. UK Farmers Weekly

46 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Real Estate

Protection for fertile soils simply been based on market value and the potential for subdivision. “And that’s clearly a one-way approach,” O’Connor said. “To counter that we need to look at what would the productive capacity for high-value fruit, vegetables and food production and how this weighs up against more houses.”

Luke Chivers luke.chivers@globalhq.co.nz

EW policies and standards could protect the most fertile and versatile land as soon as next

year. Agriculture Minister Damien O’Connor and Environment Minister David Parker have put out proposals to value highquality soils as a resource of national significance. “The threat to elite soils in this country has been very real,” O’Connor said. “We’ve been losing soils for the past 20 years at an alarming rate. “You don’t have to be a rocket scientist to visit Pukekohe and see what is happening.” The Government has released a draft National Policy Statement for Highly Productive Land that proposes a nationwide approach to protecting NZ’s most productive land for future generations. The statement was mooted by Parker last year as a result of concern over the amount of quality soils lost to urban development in the past generation. It is intended to target the highvalue classes 1 and 2 soils that account for 5% of NZ’s soil profile but almost 85% of high-value crop production. “One of the greatest challenges facing the world right now is the need to feed a growing population. “We have a well-earned reputation for producing some of the best food in the world,” O’Connor said. “Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. “Once productive land is built on we can’t use it for food production, which is why we need

You don’t have to be a rocket scientist to visit Pukekohe and see what is happening. Damien O’Connor Agriculture Minister

NEIGHBOURS: With good planning and buffer zones houses and horticulture can co-exist, HortNZ’s Michelle Sands says.

to act now.” About 14% of NZ’s land is categorised as highly productive. But between 2002 and 2016 New Zealand has been losing more than 100,000 hectares a year of growing land to urban development or lifestyle blocks, which have been growing at a rate of 5800 a year. Auckland’s growth plays a significant part. A report by Auckland City Council planner Ryan Bradley said about 66% of the city’s future urban zoned land is on elite or prime soils, covering 10,095ha. The main areas affected are at Whenuapai, Kumeu-Huapai, Drury-Opaheke, Takanini and Pukekohe/Paerata. Ministry for the Environment and Statistics NZ research showed towns and cities increased in size

10% between 1996 and 2012 and while agricultural land decreased 7% between 2002 and 2016. “We appreciate the balance for councils between the need to provide more houses and the need to protect their soils and economic activity,” O’Connor said. Since April last year the Government has been looking at the best options for the protection of NZ’s high-value soils. “This is not about spatial planning. “It doesn’t dictate exactly what will happen. “But it does place an obligation on councils to ensure there is enough highly productive land available for primary production now and in the future and to protect it from inappropriate subdivision, use

and development.” Councils will have to complete a cost-benefit analysis of using land for growing fruit and vegetables, assessing that against the shortterm value of converting it to housing. The criteria will be consistent nationwide but be flexible enough to allow councils to take into account their local situation and circumstances. “The NPS is not absolute protection for all soils. “It does consider local growth aspirations and the reality of where urban growth is now but it does force the councils to recognise the value of this soil for its productive capacity not just its subdivision capacity.” Until now councils have not always had to consider the productive value – decisions have

Horticulture NZ said it was reasonably optimistic about what the final version would look like and the level of protection it was likely to offer. “The policy statement recognises NZ needs its best soils for domestic food production,” natural resources and environment manager Michelle Sands said. “With good planning and buffer zones, houses and horticulture can co-exist.” The new policy stands alongside another for urban development, Parker said. They will ensure the economy has the balance right and the development it needs is in the right place. Public meetings will be held in most regions as well as targeted meetings with iwi, local authorities, primary sector groups and others. Consultation closes on October 4.

The statement is available on the Ministry for the Environment and Ministry for Primary Industries websites.

Farm sales number fall, prices up Alan Williams alan.williams@globalhq.co.nz FARM sales are well down in number but prices are generally higher over the last year. Indications are higher-quality farms are changing hands while second and third tier properties are struggling to sell, so fewer sales but at higher prices. Even though sales activity is lowest through the winter, the number of dairy farm sales in the three months to the end of July is down by a quarter and for finishing farms the fall is by a significant 45% compared to the corresponding time two years ago, Real Estate Institute rural spokesman Brian Peacocke said. For the dry stock finishing properties the reason is mainly

lack of farms for sale because demand is good. The number of farm sales over the three-month July period was 295, down from 397 in the same period a year earlier, a 25.7% fall. Year-on-year the fall in sales was 9% to a total 1339. The median price for all farms sold was $23,435 a hectare for the three months, up from $21,302/ha a year earlier, a 10% gain. At the same time, the institute’s All Farm Price Index rose 3% and the rise from June this year to July was 1.4%. The index adjusts for differences in farm size, location and farming type, which the median measure does not do. The Dairy Price Index was a lot stronger, with a 15.2% gain year-

to-year and a 17.3% gain between June and July this year. Finishing farms also rose strongly in price year-on-year to a median $32,423/ha in the July period from $26,531/ha a year earlier, a 22.2% gain, and from $30,920/ha in the latest June period. Grazing farms made up the biggest portion of sales, at 37% of all transactions, with finishing farms at 28%, horticulture blocks 15% and dairy farms 8%. The median price for grazing farms for the July period was $11,138/ha, up from $10,881/ha in June and $10,196/ha in July last year. That was a year-on-year gain of 9.2%. The median price of horticulture blocks fell sharply in the July period, at $210,458/ha,

down 25% from $281,468 a year earlier. Regionally, Nelson was a standout, with a lift in sales, whereas Manawatu-Wanganui, Waikato, and Otago had quite sharp falls compared to a year earlier. Canterbury had some good sales of finishing farms across the Selwyn, Ashburton, and Timaru districts. Peacocke said the warmer winter bolstered farm morale but bank credit issues and iceshattering announcements from Fonterra mean caution remains in the dairy sector. He described the heavy intrusion of pine tree land-use in the pastoral eastern regions as the burr in the saddle for areas already at risk from rural depopulation.

WARY: Dairy farmers remain cautious because of bank credit issues and Fonterra announcements though the warmer winter boosted morale, Real Estate Institute rural spokesman Brian Peacocke said.

PULLING OUT ALL THE

Bayleys pulls out all the stops to find the right buyer for your rural property. The spring 2019 edition of Bayleys’ Country magazine will see all systems GO for sellers of farm, specialty and lifestyle properties around New Zealand. For 20 years, Country has sent a clear signal to active and passive buyers – nationwide and beyond – that the rural and lifestyle property market is laden with opportunity. A multi-channelled Country campaign, with its combination of printed and digital promotion, brings more buyer eyes to your rural asset and the Bayleys’ team has proven strategies to set the sales wheels in motion. That’s why Bayleys is New Zealand’s number one rural brand.

Not easy being green

FEATURING

Pressure is on for more farmland to be put into trees, but there is a cost to going green.

Pest patrol and control

Dealing to predators so lifestyle blocks and tracts of native bush can survive and thrive.

FARM, SPECIALTY AND LIFESTYLE PROPERTIES FOR SALE ISSUE 1 – 2019

Talk to your local Bayleys office today about a cost-effective Country campaign – the spring edition is in the works and if you’re quick off the mark, you’ll get pole position.

Bayleys will pull out all the stops to get an altogether better result – so, let’s GO!

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A LT O G E T H E R B E T T E R

Residential / Commercial / Rural / Property Services

Marotiri 262 and 376 Marotiri Road

Oxenford downs dairy farm An opportunity not to be missed. 650 cows are wintered on the property with 630 being peak milked, producing an average of 241,742kg/ms over the previous five years. There is a 50ASHB with auto teat spray and vet race, this is well placed on the farm to assist good cow flow and ease of management. Three good dwellings on the farm give plenty of accommodation options for the new owner. Grass silage is made on the property with the bulk going in to a stack and some bales, Palm Kernel is fed in bins beside the cowshed. Approx 35km to Taupo, 22km to Kinloch and 17km to Whakamaru where you will find vets, dairy, cafes, service station. *Subject to the property complying with Residential Tenancies (Healthy Homes Standards) Regulations 2019, effective 1 July 2019 for the purposes of a rental investment.

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

bayleys.co.nz/2651648

NEW LISTING

Wairoa Ponui Station, 217 Ponui Road

Clean healthy hill country Offering extensive scale at in Northern Hawkes Bay, Ponui Station provides approx 800 hectares of clean hill country with the opportunity to further extend production levels and capability. Currently run in conjunction with a neighbouring farm, a robust fertiliser history combined with sound fencing provide the opportune platform to add to ones farming operation or begin a new hill country project. Strong leading north/south ridges provide excellent sheltered country, the majority below 200m ASL, and exceptional natural water sources â&#x20AC;&#x201C; Ponui offers good hill country farming conditions. Views over the Pacific Ocean, the homestead site provides an aesthetically inviting position for an owners or managers home, whilst other farm infrastructure being the airstrip, satellite yards and fencing are in good order. Sought after scale and opportunity to increase production.

Tender (unless sold prior) Closing 4pm, Wed 9 Oct 2019 10 Reads Quay, Gisborne Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz

bayleys.co.nz/2751431

MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008 EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz

Real Estate

FARMERS WEEKLY – September 2, 2019

farmersweekly.co.nz/realestate 0800 85 25 80

FOR SALE WAIHUE QUARRY MAMARANUI, KAIPARA

Boundary line indicative only

SMALL-SCALE OPERATIONAL QUARRY PLANT AND MACHINERY INCLUDED

Eketahuna 166 Taylors Road Wai Hiwi Farm - Dairy/Intensive red meat Options abound on this quality property currently a 'once a day' system milking 350 cows with scope for dairy support and dry stock with all the facilities here. 38 ASHB milking shed, 19 bays of calf sheds, two excellent homes and a self-contained sleepout, three stand woolshed and numerous support buildings. A summer safe 262 hectare home block and 44 hectare run off nearby. These properties can be purchased together or separately.

Tender (unless sold prior) Closing 4pm, Fri 20 Sep 2019 186 Chapel Street, Masterton View by appointment Lindsay Watts 027 246 2542 lindsay.watts@bayleys.co.nz Andrew Smith 027 760 8208 a.smith@bayleys.co.nz EASTERN REALTY (WAIRARAPA) LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Choices are here with a combined dairy/dry stock operation offering the best of both worlds - not to mention the trout fishing on the boundary

This small-scale operational blue and brown metal + 15.1710ha freehold land title quarry located in the Kaipara district is offered for + Significant resource remaining sale on a ‘walk in, walk out basis’, with significant + Resource consent until 2026 plant and machinery included in the sale. A perfect opportunity for a passive investor, quarry + Plant and machinery included operator or contractor to take control of this operational asset and continue to supply the current client base of local farmers, first rotation foresters and roading contractors. Contact CBRE today to obtain a detailed Information Memorandum and access to the Dataroom.

ASKING PRICE $1,000,000 + GST (if any) WYATT JOHNSTON 027 815 1303

JEREMY KEATING 021 461 210

www.cbre.co.nz/216334Q48

bayleys.co.nz/3060565 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

Looking for the complete package?

We’ve got you covered with digital and print options.

2480REHP

Contact Shirley Howard phone 06 323 0760, email shirley.howard@globalhq.co.nz

farmersweekly.co.nz/realestate

Real Estate

FARMERS WEEKLY – September 2, 2019

N EW

LIS TI N G

farmersweekly.co.nz/realestate 0800 85 25 80

HIGHLY PRODUCTIVE SAND COUNTRY WITH A FORESTRY OPTION - 274.75 HECTARES 909 Raumai Road, Bulls, Rangitikei

274.75 hectares Video on website

nzr.nz/RX2002959

Located 15km west of Bulls, this property blends a cattle and sheep finishing enterprise of 209 hectares of consolidated sand country with 65 hectares of well tended production forestry that you have the option to purchase, or exclude. Productive assets are solely on offer here, with no dwelling on this property, you just choose the mix you want between the pastoral area and/or the forestry crop. Essentially flat, the pastoral area is comprised mainly of wide plains with large areas of heavier Pukepuke sand as well as gently undulating dryer Himatangi sand. Consolidated sand types, that on other farms are used for milking off and growing maize, provide a great summer/winter balance, with the majority mowable. The forestry is planted on the drier sand ridges, with an additional, smaller area of drier country that could continue as excellent winter grazing or could also be planted. Conventionally fenced in the main, this has been well maintained. Recent refurbishment presents a tidy woolshed/sheep yards, plus good lockable storage shedding and cattle load-out facilities. A developed wetland area provides great waterfowl habitat and duck shooting opportunities. Open Days 11am, Tue 10 & Tue 17 Sept 2019 - bring quad and helmet. Or call for a private inspection.

Tender Closes 11am, Wed 9 Oct 2019, NZR, 20 Kimbolton Road, Feilding. Peter Barnett AREINZ 027 482 6835 | 06 323 4434 peter@nzr.nz NZR Limited | Licensed REAA 2008

RURAL | LIFESTYLE | RESIDENTIAL

TENDER

SHERENDEN, HAWKE'S BAY Winter Trading / Finishing Block • • • • • •

247.83ha (612 acres) well located 30km west of Hastings Great water source, fully reticulated around the farm Good all-weather access, well laned and subdivided into 28 paddocks All-tractor country in an ongoing new grass/cropping programme Three-stand woolshed, new cattle yards plus second set, sheep yards and implement shed The work is done, warm winter finishing country ready to fly

pggwre.co.nz/HAS30638 PGG Wrightson Real Estate Limited, licensed under REAA 2008

TENDER

Plus GST (if any) Closes 4.00pm, Wednesday 16 October

Paul Harper M 027 494 4854 B 06 878 3156 E paul.harper@pggwrightson.co.nz Doug Smith M 027 494 1839 B 06 878 3156 E dougsmith@pggwrightson.co.nz

TEMUKA, SOUTH CANTERBURY Cropping / Finishing Woodlands is a well-developed, 451ha dryland arable unit just 7km from Temuka. With its rich, deep, silty loam soils, the current farming practice has been predominantly intensive dryland cropping with some livestock finishing and grazing. Farm infrastructure is well above average, including three good homes plus quality large sheds and numerous outbuildings to support the farming operation. Several purchasing options are available including the total property, the 142.5ha Flats Block, and the 308.5ha Downs Block as one unit or in two or more parts. We welcome your enquiry.

DEADLINE PRIVATE TREATY

Plus GST (if any) (Unless Sold Prior) Closes 1.00pm, Friday 27 September

Simon Richards M 027 457 0990 E simon.richards@pggwrightson.co.nz Peter Crean M 027 434 4002 E pcrean@pggwrightson.co.nz

pggwre.co.nz/CHR30882 Helping grow the country

Agri Job Board

Applicant requirements: • Honest, hardworking and positive attitude • High standard of stock management and husbandry • Working dogs • Good understanding of pasture management • Competent in all general farm duties • Health and safety minded For more information contact: The Manager on 027 263 6116 or email CV to: jobsinopepe@gmail.com

The position requires excellent grazing management of both intensive and extensive systems for sheep, cattle and deer. Good team management, record keeping and communication skills are essential. The successful applicant will be responsible for the day to day running of the property as well as being involved in all strategy planning and development.

LK0099035©

The Role: Located at our Hastings site, we are seeking experienced agricultural tractor and machinery operators, to work with our contracting team. Work will be varied and interesting with opportunities to operate a wide range of modern tractors, implements and machinery.

The person we require will need: • Excellent stockmanship • A good team of dogs • High levels of drive and self-motivation • A sound knowledge and interest in all farming aspects Primary and secondary school buses are available.

JOBS BOARD FENCER/GENERAL We have a vacancy for a fencer/general at Glenaray Station, Northern Southland. This is a sheep, beef and deer farm with fencing on flat, rolling and hill country.

Feeding out in winter on rostered weekends is part of the job. A very comfortable 3-bedroom house is available with primary school bus at the gate.

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If you believe you have the skills and attributes we are looking for, then please contact Tim on 021 336 853 or provide a copy of your recent CV to timp@bostock.nz

Livestock Representatives Manawatu & Hawkes Bay

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Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz

To apply please email CV to: office@glenaray.co.nz Applications close Friday 20th September 2019

EMPLOYMENT REACH EVERY FARMER IN NZ FROM MONDAY Please print clearly Name: Phone: Address: Email: Heading: Advert to read:

An exciting opportunity exists for a keen and motivated individual to join the Hazlett Livestock team in the North Island. We are looking for two Livestock Representatives to join our expanding stock and station company, whose strong culture views its people as its greatest asset. Both full time roles, one is to be based in Manawatu and one in Hawkes Bay. Hazlett is a family owned business, launched in 2008, well established in the South Island and looking to increase its footprint in the North. We’re committed to providing New Zealanders with top-of-the-line livestock broking services, insurance, funding and agri-supplies. This role will suit a candidate with exceptional relationship building skills, experience in marketing and selling livestock and an ability to grow a client base. Whilst you will receive great support from the team, the nature of this role is very independent, therefore time management, planning and organisational skills and administrative experience will set your footing for success.

FOR SALE SERIOUS INCINERATORS. Heavy duty long lasting. w w w. i r o n t r e e p r o d u c t s . co.nz Phone 021 047 9299.

FORESTRY WANTED

NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide. We can arrange permits and plans. Also after milled timber to purchase. NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.

GOATS WANTED GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

HORTICULTURE

FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz

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

DEERLAND TRADING LTD

LIVESTOCK FOR SALE

DEERLAND TRADING LTD buying deer velvet this season and paying above the average. Also contractor required to buy deer velvet. Payment on commission basis. Contact 021 269 7608.

DOGS FOR SALE VIEW SIXTY DOGS on video. Deliver, trial. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553. WE HAVE A TOP selection of young Heading and Huntaways for sale. We are not traders we are breeders trainers and sellers based in Southland. Transport to the North Island no problem. Join us on facebook workingdogsnewzealand. Check out our web site w w w. r i n g w a y k e n n e l s . co.nz. Ringway Kennels. Phone 027 248 7704.

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. 60+ R1 RED DEVON bulls for sale. TB tested, and 5-in1 and 7-in-1 treatments. BVD tested negative. All bulls raised on hill country. Good temperament,Good growth rate. Easy calving. $1950 + GST. Call John Cameron 027 644 1143. HEREFORD BULLS, purebred yearlings. BDV negative and vaccinated. Phone 027 4944 262.

MANUKA SITES WANTED CENTRAL NORTH ISLAND. Whanganui, Taranaki, Wairarapa. Excellent site rental paid on quality honey. We are looking for long term relationships. We are experienced and honest. Contact 027 372 0842. Email: zerbywerby@ gmail.com

DOGS WANTED

PROPERTY WANTED

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. QUICK SALE! No one buys or pays more! 07 315 5553. Mike Hughes.

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

FARM MAPPING FOCUS ON YOUR strengths with a farm map showing paddock sizes. Contact us for a free quote at farmmapping.co.nz or call us on 0800 433 855.

Skills required: > Experience with marketing and sales of livestock services to new and existing clients is preferable > Ability to grow your client base > Ability to cold call and canvas > Excellent planning and self-management > Strong communication skills > Solid technology skills and administrative nous > A full, clean and current NZ driver’s licence

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

SEE PAGE 52

If you would like to discuss further please call Tom Mowat on 027 462 0190. Please send applications to erough@hazlett.nz by 9th September.

hazlett.nz

ATTENTION FARMERS

Extensive fencing experience is essential for this role. Experience driving tractors is also necessary.

For more information please contact: Mike O’Donoghue, Manager 03 202 7720 evenings

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

ANIMAL HEALTH

Our hydraulic post driver is mounted on a Mitsubishi BD2G dozer.

*conditions apply

CALF TRAILER MATS. Non slip, durable, easy to clean mats to fit any trailer. For a free quote contact Burgess Matting & Surfacing Ltd. 0800 808 570. website: www. burgessmatting.co.nz

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

Glenaray is in the picturesque Waikaia valley where there is a strong community and primary school.

*FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz

Remuneration will be based on experience and will improve with performance. The successful applicant will be required to work extended hours during busy periods and must have an understanding of general maintenance and servicing of machinery. Preference will be given to an operator with crop spraying experience. Applicants for this position should have NZ residency or a valid NZ work visa.

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

For further information please contact Hugh 06 328-6812 evenings only

Fencer/General Grower Liaison Officer Livestock Representatives Manager Part Time Car Driver Shepherd Shepherd / General Stock Manager Stockperson Tractor/Truck/Machinery Operator Various opportunities

The Company: Bostock New Zealand is a diverse, progressive, innovative group of companies that has a reputation for being an industry leader. We have an opportunity for someone to be a part of our busy contracting team within a financially strong, expanding, entrepreneurial business based in the vibrant Hawke’s Bay region. This family owned company has a proud history of sustainable growing practices, is family oriented and is committed to the wellbeing of our staff and protecting the environment.

Required for the 500 hectare sheep and beef breeding/finishing operation 20 minutes north of Feilding at Waituna West.

There is a four-bedroom home on the property.

farmersweeklyjobs.co.nz

Agricultural Tractor & Machinery Operators

ANIMAL HANDLING

LK0099043©

Orari Gorge Station is a progressive 4300ha property ranging from river flats to rolling downs to steep tussock Country. It is a breeding, finishing and stud property totalling 25,000su. It is located in the South Canterbury foothills just 10 minutes from Geraldine which provides a choice of schooling and other amenities.

LK0099032©

Drystock Station, Taupō

Orari Gorge Station

STOCK MANAGER

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Experienced Shepherd

Farm Manager

Applicants can email robert@orarigorge.co.nz for more details and a full job description.

Noticeboard

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

FOR MORE NOTICEBOARD ADVERTISING

classifieds@globalhq.co.nz – 0800 85 25 80

Noticeboard

FARMERS WEEKLY – September 2, 2019

DOLOMITE NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....

8kg ctn direct ex-grower

www.fromthefarm.co.nz

(All volumes – big or small)

FO SALR E

We purchase standing trees, land and trees or harvest and market on your behalf.

0800 436 566

All paper work is done for you around health and safety, resource consent application and management.

VETMARKER

SELLING

SOMETHING?

GUARANTEED PAYMENTS LK0099085©

With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)

LK0094587©

LAMB DOCKING / TAILING CHUTE

Call or email Aaron West 027 562 3832 aaron@westtreenz.co.nz for a no obligation appraisal

DEBBIE

0800 85 25 80

Under Woolshed/Covered Yards Cleaning Specialist www.underthewoolshed.kiwi

SCOTTY’S CONTRACTORS

FO SALR E EARMARKERS

For Farming & Shearing Clothing and Accessories

We also clean out and remetal cattle yards – Call Us!

SELLING

SOMETHING?

FROM THIS

BIRDSCARER DE HORNER

Diary Pouch - Leather

DEBBIE 0800 85 25 80

TOWABLE TOPPING MOWER

12Hp Diesel. Electric Start

✁

13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut

Nominate a school on booking and we’ll donate $100 on payment of your account.

GST $4400 INCLUSIVE

GST $4200 INCLUSIVE

To find out more visit www.moamaster.co.nz

Phone 027 367 6247 • Email: info@moamaster.co.nz

Phone Scott Newman Freephone 0800 2SCOTTY (0800 27 26 88) Mobile 027 26 26 27 2

Dog Control Pouch - Leather

STEEL TANK SPECIALISTS

Check out our website

and let standards, results speak Manufactured to the highest for themselves Squire’s clothing & accessories stand www.aotearoastockman.com the test of time. Ph: 027 959 4166 aotearoastockman@gmail.com

Check out our website: maiexperiencejohnnygray Working alongside www.squires.co.nz Crusader Meats Or phone Shane: 06 388 1201

New Zealand’s Number 1 service provider for under woolshed and covered yard cleaning since 2004

50 TON WOOD SPLITTER

LK0099098©

TOWABLE FLAIL MOWER

11.5HP Briggs & Stratton Motor. Industrial. Electric start.

Gaitors - Canvas

TO THAT

Specialists in mustering Wild Goats, Cattle, Horses and Sheep across New Zealand

LK0099097©

2 YEAR WARRANTY. NZ ASSEMBLED. ELECTRIC START & QUALITY YOU CAN RELY ON

LK0099079©

HOOF TRIMMER

NUTRITION FROM THE SEA

Fuelcon Farm and Trailer Tanks by:

“Your Fuel Storage Solutions”

LK0098279©

HD C a Hand ttle ...no ling w SQU with EEZE

0800 383 5266

Take the stress off man and beast with our auto catch head bail on a crush that will last.

www.petrotec.co.nz/products

WWW.BIOMARINUS.CO.NZ

NOTICEBOARD

REACH EVERY FARMER IN NZ FROM MONDAY Advertise in the Farmers Weekly N A ffo o rd Make use of the labour and I nno able v drench while you draft R elia ative lambs off.

™

ble

0800 227 228 www.combiclamp.co.nz

South Island - Stuart 027 435 3062

$2.10 + GST per word - Please print clearly

Name:

Phone:

Address:

Email:

Heading: Advert to read:

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

LK0098992©

Tamarillos

WANTED FORESTRY/ WOODLOTS

✁

Livestock

livestock@globalhq.co.nz – 0800 85 25 80

MEADOWSLEA ANGUS Spring Bull Sale

KAIRAUMATI POLLED HEREFORDS SALE

FRIDAY 4th OCTOBER 2019 1pm, on-farm Fairlie

19TH SEPTEMBER 2019

Safe, Traceable, Quiet Bulls

12.30pm – 68 NGATAIPUA RD, TURUA, THAMES

Bulls For Heifer Mating

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

26 RSG 20 MTH BULLS 24 1-YEAR BULLS

Bulls born and bred on the top of the Coromandel

40 2yr Angus Bulls

Selected for mating Cows and Heifers

60 1yr Angus Bulls

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 PWA: Madison Taylor 021 656 851

23rd Beef & Dairy On Farm Bull Sale

180 Registered & Purebred 1 year & 2 year Angus, Hereford, Murray Grey & Jersey

Full Traceability and Strict Biosecurity Policies Contact Robin Blackwell 06 762 4805

LIVESTOCK ADVERTISING LK0099104©

Thursday Sept 19th 2019, 12 Noon 183 Mangaotea Road, Tariki, Taranaki

6% purchasing commission to all other companies

AIMING FOR ZERO BOBBIES AND HIGH VALUE CALVES?

THE CHOICE IS

LK0099071©

Offering:

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Contact Roy or Kaye Ward 021 128 7174 Dave Stuart 027 224 1049 Cam Heggie 027 501 8182

300 BULLS AVAILABLE MIKE CRANSTONE - 027 218 0123 SALE Thursday 19 Sept, 12noon Riverton Herefords, Wanganui WILL MORRISON - 027 640 1166 SALE Tuesday 24 Sept, 12noon Ardo Herefords, Marton

www.ezicalve.co.nz

KIKITANGEO ROMNEY STUD

LK0098984©

FARMERS WEEKLY – September 2, 2019

EST 1922

Stud Principal – Gordon L Levet

Are you looking in the right direction? Call Nigel

0800 85 25 80 livestock@globalhq.co.nz

Inaugural Yearling Sale Est. 1910 www.motereangus.co.nz

On account of

Pokoroa Speckle Park & Sandstone Downs Herefords

KIKI G197-14

30th ANNUAL RAM SALE Wednesday 4 December 2019 at 12 Noon

140 Selected Romney Rams – out of over 500 30 Suffolk, Southdown, Suftex and Suff-Texel cross rams Plus 60 Romney Rams for private sale after auction

C/- GK and AJ Chitty, Waiuku to be held on farm on Friday 13th September, 2019 at 12pm, Douglas Road, Kohekohe

Please contact: Isaac or David 06 857 3705 or 027 857 3705 Motere Angus Rostrum 766 Long Range Rd, Omakere Contact: Isaac Pharazyn 06 857 3828 027 857 3828

Bulls may be held on farm until 7th October, unless agreed otherwise Enquiries: Vendors Geoff and Alison Chitty 09 235 8527 0274 956 617

Selling agents Carrfields Livestock Brian Pearson 027 603 4477 Bruce Orr - Genetic Specialist 0274 922 122

LIVESTOCK ADVERTISING Advertise your stock sales in Farmers Weekly

farmersweekly.co.nz

• Due to better management, we have many more high quality rams available for sale this year. Hopefully these extra rams will be sufficient to satisfy an increasing demand for rams that are structurally sound, have a high degree of FE tolerance and are the best available in the country for worm resistence. • After 33 years of intensive selection for the worm resistance trait – using scientifically approved protocols – we now have sheep that are resistant to the highest worm challenges in the country and require no drenching. What has been achieved at Kikitangeo can be replicated in other flocks. • Semen available – we now have semen available from our top sire G19714 – further information is available on our website www.kikitangeo.co.nz • Field Days – having received the Husqvarna North Island Farm Forester of the Year Award, we will be hosting field days on November 13 and 16 for the viewing of the sale rams combined with a tour of the farm to see the forestry operation. Particulars will be advertised and on our website. • Catalogue and newsletter – The catalogue and our August newsletter will be mailed out to those on our mailing list and will also be available on our website – catalogue about mid-November. If you require a hard copy of the catalogue, please phone or email.

5192 Kaipara Coast Road, RD 2, Wellsford 0972 Email: glevet5192@gmail.com • Tel: 09 423 7034

www.kikitangeo.co.nz

LK0099094©

26 September 2019, 1pm th

Comprising: 15 yearling Hereford Bulls 4 yearling Purebred Speckle Park Bulls 1 F1 Speckle Park Hereford Bull 8 yearling Hereford Heifers 3 F1 Speckle Park Heifers 4 2-year in-calf F1 Speckle Park Heifers

LK0098772©

YEARLING ANGUS BULLS FOR SALE

(book early to ensure supply)

livestock@globalhq.co.nz – 0800 85 25 80

Livestock

FARMERS WEEKLY – September 2, 2019

Specialist Bulls recommended for heifer mating

Angus

It is well recognised that calving ease and fertility are major drivers of profit and this is especially relevant for heifers. Higher calving ease means more live calves on the ground. Calving difficulty costs money in labour time, veterinary fees and delayed rebreeding for the heifer. In addition, loss of one calf costs more than the profit from 20kg of growth across a group of 25 animals.

EXPORT WANTED

ANGUS BULLS

th ber 2019 Tuesday 17 Septem m

at 12 noon on far ands Waitangi, Bay of Isl

NG SPECIALISTS OUR EASE OF CALVI

Enquiries and Inspection Welcomed: Please contact John & Joss Bayly, Waitangi Angus Ph 09 402 7552, Bay of Islands Email jbayly@xtra.co.nz

www.waitangiangus.co.nz

FRIESIAN HEIFERS 18 Born In Calf – $1550 19 Born Autumn – $1100 North Island Luke McBride 027 304 0533 Wayne Doran 027 493 8957 Harry Van De Ven 027 486 9866 South Island Richard Harley 021 765 430 Greg Collins 027 481 9772

Looking for a bull for

HEIFER MATING Think Mahuta – Herefords & Angus

Mahuta Herefords and Angus Studs run by John and Mary Allen specialise in breeding bulls for heifer mating. While the focus is on beef heifers, there are bulls with calving ease EBVs in the top 1% for calving ease ebvs and these are suitable for dairy heifers. Repeat clients are evidence of the success of this program.

Selling limited number of 3/4 Speckle Park x Angus yearling bulls.

John says “using a high calving ease bull gives you peace of mind in calving 2-year-old heifers”.

Bill Flowerday – Tauranga bilanwen@farmside.co.nz Phone 027 272 4361

LK0098682©

98 YEARLING

Late January delivery 2020

LK0098859©

Annual Sale

John places emphasis on breeding bulls which will increase profits for their clients. These are bulls with sound structure and higher calving ease, higher growth, and fertility. Most bulls also have negative gestation. Bulls are semen tested before the sale and vaccinated for BVD. LK0099105©

STAY OUT FRONT

Okupata Herefords

with Farmers Weekly

33rd Annual Bull Sale

OF THE MOB

Under cover on farm sale Monday 9th September 2019, 12 noon

56 - Registered 2yr Hereford Bulls 47 - Commercial 2yr Hereford Bulls 8 - 2yr Murray Grey Bulls

Have ewe heard the most successful place to advertise your livestock is in Farmers Weekly?

Annual Yearling Bull Sale Friday 20th September 2019 Offering: 50 Hereford bulls & 10 Angus bulls

Contact: John Allen 09 233 3097 or 027 440 7504 jvmeallen@xtra.co.nz

Hillcroft Est. 1960

To advertise Phone Nigel 0800 85 25 80 or email livestock@globalhq.co.nz

Annual Spring Bull Sale

HUKAROA

Hillcroft bulls: born and bred on our closed breeding unit. No bulls have been leased.

POLLED HEREFORDS

FOR BUTTS, NUTS AND GUTS

97 ANGUS 2 YR OLDS

ANNUAL ON-FARM BULL SALE

Friday 6 September 2019

23 ANGUS YEARLINGS Selected for heifer mating

12 NOON - UNDER COVER PAULSEN ROAD, WAERENGA, TE KAUWHATA, NORTH WAIKATO

30 HEREFORD 2 YR OLDS Sires:

Rangatira 13-4 Sire of 1 & 2 yr olds

Bred, reared and raised naturally on strong hill country

• Ardo Prophet 2329. Top 5% Hereford prime and dairy maternal. Top 10% NZ calving ease, NZ carcaseweight • Riverton Lochie 1320. Top 5% C ease

90 quiet, easy-calving Hereford bulls 2 year olds & yearlings

FREE GRAZING UNTIL 1 OCTOBER 2019 BVD tested clear and twice vaccinated Tb C10 and Lepto Vaccinated

On bull farm: 820 Waiterimu Road – east of Huntly • Monday 16th September 11.30am

ALL BULLS FERTILITY & SEMEN TESTED

Malcolm & Fraser Crawford: Matahuru Rd, Ohinewai Malcolm Phone 07 828 5709; Fraser Phone 07 828 5755, 0272 85 95 87

LK0098738©

Enquiries welcome – call for a catalogue or view online www.angusnz.com FB hillcroftangus • www.hillcroftangus.co.nz

Enquiries to: Dean

& Lisa Hansen 07 826 7817 or 0274 40 30 24

LK0098532©

These bulls are well grown [500kg], have high calving ease EBVs [top 5%] and many above average growth.

LK0098599©

BLNZ recommend specialist bulls for yearling heifer mating and troublefree calving sets a heifer up to produce a good weaner.

OKUPATA STUD 860 Okupata Road, RD 1, Oparau 3885 P: (07) 212 2284 • M: 027 711 1291 (Thomas Atkins) E: okupataherefords@farmside.co.nz

Livestock

FARMERS WEEKLY – September 2, 2019

AUsTREX NZ LTD LIVEsTOCK EXPORTERs

BUYING NOW

SHEEP GENETICS

Unique opportunity We have a very prolific nucleus Perendale ewe flock of around 200 ewes that need a good home. No financial outlay needed. Just some good management and an interest in farming and benefitting from some powerful sheep genetics. South Island location preferred. These sheep have the potential to be transformational for a farmer keen to improve the performance of their ewe flock.

LK0099106©

Highly productive nucleus ewe flock

HOLSTEIN FRIESIAN Yearling Heifers F8 to F11 & F12 to F16 Chance Mated November Delivery FOR CHINA EXPORT Enquiries to:Paul Tippett 027 438 1623 Colin Jordan 027 667 0903 David Kelk 027 644 1285 or contact your Agent www.austrex.com

Text Keith 027 224 6999

CHARWELL POLLED HEREFORD STUD

Kokonga Ironside 5005 Boehringer Ingelheim Dairy Sire

LIVESTOCK ADVERTISING

Are you looking in the right direction?

19TH ANNUAL SPRING SALE

Call Nigel

Wednesday 11th September at 11.30am at 659 Matahi Road, Manawahe Near Lake Rotoma, SH 30

0800 85 25 80

Kokonga East Road (end of road by woolshed) off the Port Waikato - Waikaretu Valley Road, RD5 Tuakau

livestock@globalhq.co.nz

Rearing Calves?

Representing 100 years of pure bred genetics

Think PINK!

We welcome clients, friends and visitors to our sale which comprises:

50 12 39

livestock@globalhq.co.nz – 0800 85 25 80

2-year old bulls 18-month bulls Well grown yearling bulls

All TB & BVD clear & vaccinated

For more information Contact Peter or Penny Davies - “Taharoto” 716 Matahi Road, RD 4, Whakatane 3194 Phone 07 322 1080 or email: pstdavies@ruralinzone.net

LK0098646©

These animals are from a CLOSED herd and have never left the property or been leased out.

Only calves sired by a registered Murray Grey bull wear the PINK tag. Take the guess work out of your calf selection. For more information contact Mike Phillips on 027 404 5943 or visit: www.murraygreys.co.nz

craigmore

polled herefords We’ve done the work for you!

All bulls are: • Performance recorded • Genomics tested to improve accuracy of EBVs

• Polled gene tested • Sire verified

All bulls are ready to perform!

Monday 9th September 2019, at 12.30pm Luncheon available On A/C D.B & S.E Henderson At the stud property: 429 Rukuhia Road, RD 2, Ohaupo 101 Registered Well Grown Bulls

Craigmore Hereford bulls carry the Hereford Blue tag. We have bulls that will suit beef and dairy farmers www.craigmoreherefords.co.nz For further information or inspection, please contact: Vendors: David 07 825 2677, 021 166 1389 or the selling agents: PGG Wrightson: Vaughan Larsen 027 801 4599, Cam Heggie 027 501 8182

LK0098623©

YEARLING BULL SALE

livestock@globalhq.co.nz – 0800 85 25 80

FARMERS POLL WEEKLY – September 2, 2019 Livestock CELEBRATING 50 YEARS OF BREEDING

HEREFORD BULLS FOR THE BEEF INDUSTRY 1962 - 2012

RANUI

PREDICTABLE PROFITABLE PERFORMANCE GENETICS GroWTH & meAT

YEARLING BULL & HEIFER SALE

mIlK & mATernAl

feeD effICIenCY

TE TAUMATA POLL HEREFORDS

ANGUS

33rd AnnuAl on fArm Bull SAle

June 7th 2012 at 12pm

12 noon Tuesday, 10th September, 2019 Karamu, 662 Rangitatau East Rd, Wanganui

Romney and To view bull sale catalogue & BorderourLeicester YEARLING BULL & HEIFER SALE pictures of sale lots go to: Rams ON OFFER: www.tetaumata.co.nz 12 noon Young Herd Sire

30 yearling bulls • 35 yearling heifers

Bookings by September 1 free DelIVerY

Tuesday, September 25,Te 2007 Taumata Banjo 10302

BVD VACCInATeD TB C10 East CArCASe SCAnneD Karamu, 662 Rangitatau Rd,

ENQUIRIES Beef IndustryWanganui Driven Performance from a trueTO: dryland farm

Lindsay Johnstone 027 445 3211 445 3213

Alistair & Eileen 06 372 7861 or Jim 06 372 7718 Email: studstock@tetaumata.co.nz On offer: 150 Te Kopi Road, RD 4 Masterton 5884, www.tetaumata.co.nz

25 yearling bulls Lin Johnstone 027 McWilliam 30 yearling heifers, which will be sold in lots

POLL HEREFORDS Est. 1962

Alistair & Eileen Ph 06 372 7861 www.tetaumata.co.nz

Te Taumata Genetics

 Vet inspected  Quiet temperament

LK0098773©

LK0098973©

PGG WRIGHTSON AGENTS:

 All cattle BVD & EBL tested Callum Stewart 027 280 2688  All cattle electric fence trained Ken Roberts 027 591 8042  TB status C10

Ryan Shannon 027 565 0979

INQUIRIES TO:

Lin Johnstone Lindsay Johnstone Top quality bulls bred for NZ Farmers 06 342 9833 06 342 9795 W & K AGENTS ● BVD Tested Clear, BVD and 10Don in Newland 1 Vaccinated Blair Robinson 027 491 9974 027 242 4878 ● Calving ease, moderate birth weight bulls suitable to mate 1 or 2 year olds or cows ● Breedplan Recorded ● TB Status C10 ● Herd completely free of known genetic defect ● Only proven NZ bred bulls used in last 10 years ● Renowned for great temperament ● Three year comprehensive guarantee

BEXLEY YEARLING HEREFORD BULL SALE 10th Annual Sale 27th September, 2019 12 noon Contact: Grant Ross 021 174 8403 Carrfields LK0099068©

Brent Bougen 027 210 4698 NZ Farmers

2ⁿd Annual Yearling Bull Sale

Monday 23rd September 2019

19TH ANNUAL SERVICE BULL AUCTION

34TH ANNUAL OKUPATA BULL AUCTION

A/c Keith Shotter and Janne Ross Friday 6th September 2019 607 Hurford Road, Omata, New Plymouth (Signposted from Surf Highway 45 /Cnr Hurford Road) Start time: 12.00 pm To be conducted undercover on farm Light lunch provided Pre-sale inspection invited COMPRISING OF: · 10 x TOP 15mth Jersey Bulls · 45 x TOP Yearling Jersey Bulls Auctioneers Notes: All bulls on offer are Leptospirosis, BVD and Conexin 10 in 1 vaccinated Blood tested clear for TB, BVD and EBL Delivery available until the end of October 2019 Deferred payment until Monday 21st October 2019 “Highly recommended offering of top conditioned quality and quiet bulls that are well grown” Contact your local Carrfields Agent Or Vendor’s Agent: Colin Dent 027 646 8908

Enquiries and inspection welcome. Contact

Kevin or Megan FRIEL ph: (06) 376 4543

LIVESTOCK ADVERTISING

Are you looking in the right direction?

Call Nigel

0800 85 25 80 livestock@globalhq.co.nz

625 Jackson Road, Kumeroa kev.meg.co@xtra.co.nz

www.mtmableangus.co.nz

3RD ANNUAL HILL COUNTRY BULL AUCTION

15TH ANNUAL SERVICE BULL AUCTION

A/c PT & ML Atkins

A/c Piquet Hills Farm

Monday 9th September 2019 860 Okupata Road, Oparau – Coastal Te Awamutu Start time: 12.00 pm (under cover)

Wednesday 11th September 2019

A/c Puketahi Farms - WE & JJ Craig Friday 13th September 2019 Wingrove Road Property, Stratford Start time: 11.00 am - Lunch available

Luncheon provided – great hospitality. COMPRISING OF: · 56 x Registered 2yr Hereford Bulls · 8 x Registered 2yr Murray Grey Bulls · 47 x Commercial 2yr Hereford Bulls · Hard working hill country bulls · TB C10, BVD tested free, Lepto vaccinated, EBL free · Predominantly NZ genetics and strongly marked bulls All bulls registered and performance tested Genuine Hill Country Service Bulls guaranteed sound Payment Terms: 14 days from Auction date, delayed delivery can be arranged with Vendors Agent Carrfields Livestock Agents: Ben Deroles 027 702 4196 Jack Kiernan 027 823 2373

887 Te Akau Rd, Te Akau Start time: 11.00 am 430 well grown healthy service bulls: · 150 x Hereford 2yr & 3yr · 80 x Angus 2yr · 130 x Jersey 2yr · 40 x Jersey 2yr (suit heifer matings) Details: All bulls BVD tested, TB tested, Fertility tested, M Bovis tested - not detected All bulls checked for soundness – Our vendors have been supplying service bulls to dairy farmers for numerous years and know what to present that will complete the job Bid to buy or lease – your choice: · 40% lease option of purchase price at Auction · Payment – 20th January 2020 Enquiries to Carrfields Agent: Jack Kiernan 027 823 2373

www.carrfieldslivestock.co.nz

· · · · · · · · ·

COMPRISING OF OUTSTANDING QUALITY: 70 x 2 & 3yr Hereford Bulls 30 x 2 & 3yr Angus Bulls 40 x 3yr Jersey Bulls 150 x 2yr Jersey Bulls 20 x 2yr Friesian Bulls 20 x 2yr Murray Grey Bulls 20 x 2yr Crossbred High BW Bulls 30 x 2yr Ayrshire Bulls 20 x 1yr Jersey Bulls

Our Vendors once again will provide high quality, good temperament Service Bulls which are all guaranteed sound Please note: Selection of fully traceable virgin bulls in this line up Details: All Bulls are BVD, EBL and TB tested clear and personally guaranteed by Vendors Payment Terms: Payment 20th December 2019. Delivery by 20th November 2019 or by prior arrangement Contact your local Carrfields Agent: Colin Dent 027 646 8908

LK0099008©

PRELIMINARY NOTICE

Livestock

FARMERS WEEKLY – September 2, 2019

TOTARANUI A N G U S

101 YEARLING BULLS Tuesday 17th September, 12 noon on farm, Pahiatua

Daimien & Tally 06 376 8400, 021 430 710 Mark Crooks, PGW, 027 590 1452

LK0099004©

• C10 Status • BVD tested & vaccinated • Carcase scanned

www.totaranuistud.co.nz Email for a catalogue: bulls@totaranuistud.co.nz

TURANGANUI ROMNEYS Clients Owen and Tim Evans, Longridge North, Southland

“The Turanganui team has done all the work so we don’t have to!”

06 307 7841 0274 465 312

Holmes Warren

06 307 7802

Jarred Pead

027 363 0899

RD 2 FEATHERSTON 5772

GOING GOING GONE! Have you got a sale coming up? Advertise in Farmers Weekly To advertise Phone Nigel 0800 85 25 80 or email livestock@globalhq.co.nz

LK0098687©

Michael Warren

livestock@globalhq.co.nz – 0800 85 25 80

Livestock

A r v i d s o n W I L T S H I R E S - Pure Meat, No Shearing LK0097010©

NZ’s No1 F.E. Meat Breed Flock * SIL * Parasite Testing Well Muscled - Fast Growth. Ph: David 027 2771 556

LIVESTOCK ADVERTISING CALL NIGEL 0800 85 25 80

FARMERS WEEKLY – September 2, 2019

Stokman Angus Yearling Bull and Heifer Sale 95 Registered Bulls 60 Commercial Angus Heifers Wednesday 18 September 2019

TE WHANGA ANGUS calving ease sires

1708 Te Kopia Road Rotorua - 1.00 p.m.

www.borthwick.co.nz

SALE MONDAY 16 SEPT 10.00 47 stud, plus 26 commercial performance recorded yearling bulls.

Ring us for a catalogue Jason Coffey, Manager 691 Te Kopi Rd, RD4, Masterton P. 06 372 77 20 M. 0274 570 526 Why wouldn’t we use Te Whanga Angus, they offer extra value through higher growth rates and angus premiums, plus the calving ease, low birth weight and short gestation that we know is so reliable.

POL L E D H E R E F O R D S TUD

WEDNESDAY 11th SEPT, 2019 - 12 NO ON LOWER HERE NGA WE ROA D , WA V E RLE Y

“The beef breed for every need” Owner Bred - Closed Herd Genuine Home-Bred Beef Bulls

57 2yr old bulls Offering Merit Sires • Low Birth Weights Easy Calving • Whitehead Premiums Performance Recorded • BVD & Lepto vaccinated/tested

2-YR OLD BULLS FERTILITY TESTED

IAN & DANIEL SMITH P/F: 06 762 7899 • Mobile: 021 749 235 • Email: daniel.rae@primowireless.co.nz

NZ FARMERS LIVESTOCK Jeremy Newell: 027 664 8832 Tim Hurley: 027 445 1167

PGG WRIGHTSON Mark Neil: 027 742 8580 Ryan Shannon: 027 565 0979

BullsEye Sale

Thursday 19th September

14th Annual Service Bull Sale - Undercover 11.30am start - concludes 2pm approx 300 McDonald Mine Road Signposted from Huntly Bridge

470 BULLS COMPRISING: 11.30am Beef Bulls 32 R2 Red Devon Virgin 30 R3 PB Hereford 140 R2 PB Virgin Hereford 24 R2 WF & Beefx Virgin 40 R2 PB Virgin Angus 1pm approx Dairy Bulls 180 R2 Jersey 27 R2 Rec Virgin Friesian/Xbred Vendors: David & Fiona MacKenzie and Greg & Vicki Straker Agent in Charge: Bill Sweeney - 027 451 5310 David & Fiona, and Greg & Vicki have nasal sample tested a percentage of bulls from every mob being offered for sale to the recommendations of their Veterinary practice. All results being M-Bovis not detected. All Bulls BVD & TB tested & BVD double inoculated. Our vendors stand behind their bulls, if there is an issue with a bull when delivered you can swap the bull or be fully refunded. Delivery every Monday from 23rd September until 4th November, 2019. View photos of the bulls on mylivestock.co.nz Where else do you get the chance to pick what you want, get delivery when you want and pay via Bull Plan if you want! Also, a great steak lunch is supplied.

NZ Breed Average EBV’s on Stokman Sale Bulls Average Calving Ease

+2.1

+0.2

Birth Weight

+2.9

+4.3

400 Day

+83

+81

600 Day

+106

Self Replacing

+147

+112

Angus Pure

+170

+131

* Fertility and semen tested * HD50K Genomic tested for better EBV accuracy * All Bulls carcass scanned * BVD tested and vaccinated * EBV recorded, C10 TB status * Well grown, suitable for heifers or cows

Call for a catalogue or view on www.angusnz.com

Stu Weatherstone 2800 dairy cow farmer, South Wairarapa

SHADOW DOWNS

Your Angus Bull Source

PGG Wrightson Cam Heggie 027 501 8182 Pete Henderson 027 475 4895 Central Livestock: Shane Scott 027 495 6031

SALE TALK

A man goes to the health and safety officer and says “I think I’m being poisoned at work.’’ “What do you do?,” says the H & S officer. “I move radioactive substances from one place to another.” “How are these substances stored?” “In sealed lead lined containers.” “How are they transported?” “I have a sealed off lead lined truck, with a police escort.” “Are you given any special clothing?” “Yes I have a complete lead lined suit.” The H & S officer scratched his head. “Let me get this right. You have the stuff in lead lined containers. You have a lead lined suit and a lead lined truck. How can you possibly be suffering from radiation poisoning?’” “I’m not. I’m suffering from lead poisoning.” Supplied by Thom Fawlerie

Mark & Sherrie Stokman 07 3332446 Mark 027 640 4028 Sherrie 027 499 7692 mtkiwi@farmside.co.nz

10 x R2 Elite Jersey Bulls BW’s 193 - 235 60 x R1 Elite Jersey Bulls BW’s 179 - 234 (All G3 profiled, A2A2 tested, BW’s to 235 to be sold by Link Livestock Limited.)

140 x R1 Jersey Bulls

All fully Recorded, G3 profiled, BW's to 182. To be sold by NZ Farmers Livestock Limited. Bull Plan Finance available.

• 11:30am Tuesday 10th September 2019 • 200 Luck at Last Road, Karapiro, Cambridge • Sale held Under Cover with Lunch Provided • Free coffee-van on site

Enquiries to Richard and Christine 027 353 5693

Catalogue available on mylivestock.co.nz and jersey.org.nz/link-livestock

Linking Buyers and Sellers

Ross Riddell 0272 111 112

Ollie Carruthers 0274 515 312

Waitawheta Angus WAITAWHETA ANGUS HAVE BEEN SELLING YEARLING ANGUS BULLS BY AUCTION FOR OVER 30 YEARS. 35 YEARLING BULLS SELECTED FOR YEARLING HEIFER MATING FROM A TOP CALVING EASE HERD.

35 ANGUS 1YR BULLS

ON FARM ANNUAL 1YR ANGUS BULL SALE

86A THAMES ROAD - PAEROA - 18TH SEPTEMBER - 12PM CONTACT: ALISTAIR & PAT SHARPE - 07 863 7954 or 021 054 7862 KEVIN FATHERS - 0272 799 800 - BRENT BOUGEN - 027 210 4698 Waitawheta R1 2019 164wx120h.indd 1

21/08/2019 9:57:06 a.m.

Livestock

FARMERS WEEKLY – September 2, 2019

livestock@globalhq.co.nz – 0800 85 25 80

STOCK FOR SALE 80 x FRSN/HERE ANG X 18 MTH STEERS 380kg STOCK REQUIRED STORE LAMBS 35+kg

MA SIL EWES Due Sept 1YR FRSN BULLS 170-260kg 2YR FRSN BULLS 450-500kg 1YR ANG OR EXOTIC X STEERS 260-300kg 2YR ANG & ANG X STEERS 450-530kg

LIVESTOCK ADVERTISING

GOING GOING GONE! Call Nigel

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381

0800 85 25 80 livestock@globalhq.co.nz

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

Auahi Charolais Bull Sale

Heather Dell & Black Bear Yearling Angus Bull Sale

Auction starts 7.30pm, 9th September 2019

Weekly Auctions

Comprising of 31 Yearling Angus Bulls Taupo Sale yards 1pm, Monday September 23rd

Wednesday night – North Island Thursday night – South Island For more information go to bidr.co.nz or contact the team on 0800 TO BIDR

Contacts Neil Heather.................................. 0274 214050 Kevin Davenport .......................... 0272 454106 Steve Wattam ............................... 0274 934484

Bid, buy, sell all things rural

SALES NOTICE

KAYJAY ANGUS Key: Dairy

Beef

Sheep

PRELIMINARY NOTICE IN MILK CLEARING SALE

Other 22ND ANNUAL BULL SALE A/C TETLEY JONES AGRICULTURE LTD

Tuesday 24th September 11.30am

25 BULLS SUITED TO HEIFERS & COWS 26 HEIFERS READY FOR MATING ANNUAL YEARLING BULL & HEIFER SALE

FRIDAY 20 September at 12 noon ENQUIRIES & VIEWING WELCOME • For CATALOGUES or to join our MAILING LIST Contact: Neil & Joan Kjestrup 06 372 2838 or Rod & Sam Kjestrup 06 372 7533 kayjaycattleco@outlook.com

A/C SP & SL Coombe

Monday 9th September 2019

On farm: 609 Tahuna Road, RD4, Ohinewai

Starts 11.30AM

Comprising: 250 Friesian/Friesian X & Ayrshire Spring In Milk Dairy Cows

Otorohanga (signposted from

12 Hereford 2yr & 3yr Bulls Due to our vendors relinquishing a neighboring lease these cows will be offered for Auction. Full details to follow.

State Highway 3 South of Otorohanga) Comprising:

113 2yr Jersey Bulls

www.agonline.co.nz

31 2yr Angus Bulls

Enquiries:

One line of very well bred Angus bulls.

Allan Jones 027 224 0768

70years of breeding background. TB, EBL,

Andrew Reyland 027 223 7092

MEAT-MAKERS

On farm 105 Tahaia Bush Road,

BVD tested clear. These bulls are always in suitable mating

THAMES VALLEY GENETIC LEADERS HIGH BW JERSEY BULL SALE

Second Annual Sale

condition & are farmed on rolling country, ideal for dairy cow & heifer mating. All bulls have had two vaccinations plus one booster for BVD. Free grazing on vendors

Friday 13th September 2019 Paeroa Saleyards, start 11.30AM

September 12, 2019 at 2pm 216 Wiltons Road Carterton

Comprising: 36 Recorded Jersey Yearling Bulls 4

Recorded Crossbred Yearling Bulls

Average BW 206 -Top BW 241-26 above 200 BW Most bulls A2 tested and details in Catalogue Our four vendors include Crescent Genetics and Little River Jersey’s - suppliers of numerous bulls to AI centres including Crescent Excell Misty ET currently sitting at No1 in NZ at 280 BW. A lot of the bulls on offer are from or closely related to these highly regarded cow families who have bred these AI sites.

property until October 20th 2019, or 50kms transport subsidy if purchased bulls taken from sale venue to purchasers property on the day after the sale. Purchasers must have NAIT number on sale day. A great opportunity to purchase genuine, clean one vendor farmed bulls. All enquiries: Wium Mostert 027 473 5856 or 07 871 9188 Vendor Ross Tetley-Jones 027 454 3909 or 07 873 0622

These well grown bulls are owner bred and reared on their farms so tick all the health security boxers. Lot 25 Tag 8361

BVD tested and vaccinated. TB -C10

Lot 29 Tag 8288

Mycoplasma Bovis cert available on sale day. You can purchase with confidence from this outstanding offering.

40 Years of Proven Performance 37 Top Quality Simmental Angus Bulls

www.mcfadzeancattlecompany.co.nz 7% rebate for non participating agents

For more information or a catalogue contact us: John McFadzean 06 372 7045 Johnie McFadzean 06 379 7401 / 027 429 5777 Andrew Jennings PGG Wrightson 027 594 6820

Secure your bull team now

Freephone 0800 10 22 76 | www.pggwrightson.co.nz

pggwrightson.co.nz/deferabull

Helping grow the country

MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Mel Croad

Nicola Dennis

Cattle

Reece Brick

Caitlin Pemberton

Sheep

BEEF

William Hickson

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.00

5.90

NI lamb (17kg)

8.45

8.40

8.45

NI Stag (60kg)

9.10

9.00

11.40

NI Bull (300kg)

5.60

5.50

NI mutton (20kg)

5.50

5.30

SI Stag (60kg)

9.05

11.40

NI Cow (200kg)

4.50

4.60

SI lamb (17kg)

8.20

8.10

8.25

SI Steer (300kg)

5.85

5.80

SI mutton (20kg)

5.50

5.30

SI Bull (300kg)

5.40

5.30

Export markets (NZ$/kg)

SI Cow (200kg)

4.30

4.50

UK CKT lamb leg

Slaughter price (NZ$/kg)

Last week Prior week

Last year

10.10

9.97

8.90

8.12

6.66

7.80

7.73

6.93

8.5 $/kg CW

8.18

US domestic 90CL cow

North Island steer slaughter price 6.0

North Island lamb slaughter price

6.5

$/kg CW

South Island steer slaughter price

6.5

$/kg CW

Oct

Dec 5-yr ave

Feb

5-yr ave

Apr

Jun

2017-18

Dairy

Aug 2018-19

Apr 2017-18

Jun

Last week

Prior week

Last year

Coarse xbred ind.

3.12

37 micron ewe

30 micron lamb

$/tonne

6.75 6.25

Mar-19

Last price*

Last year

Urea

616

523

3.42

Super

314

304

DAP

787

753

NZ average (NZ$/t)

Top 10 by Market Cap Company

YTD High

4.88

5.03

3.38

480

Auckland International Airport Limited

9.46

9.9

7.065

440

The a2 Milk Company Limited

14.02

18.04

10.42

Fisher & Paykel Healthcare Corporation Ltd

16.29

16.82

12.3

Spark New Zealand Limited

4.37

4.42

3.54

400

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

vs 4 weeks ago

YTD Low

Mercury NZ Limited (NS)

5.12

5.225

3.51

Ryman Healthcare Limited

12.55

13.62

10.4

Contact Energy Limited

8.29

8.5

5.82

Port of Tauranga Limited

6.4

4.9

40.19

29.95

Mainfreight Limited

Listed Agri Shares

CANTERBURY FEED BARLEY Prior week

Aug 2018-19

Meridian Energy Limited (NS)

320

May-19 Jul-19 Sept. 2020

DAIRY FUTURES (US$/T) Nearby contract

Jun

Prior week

360 Nov-18 Jan-19 Sept. 2019

Apr 2017-18

Last week

CANTERBURY FEED WHEAT

7.25

Sep-18

Feb

Fertiliser

Aug 2018-19

Grain

Data provided by

MILK PRICE FUTURES

5.75

Dec

FERTILISER

(NZ$/kg) Feb

Oct

5-yr ave

WOOL

Dec

8.5

5.5

5.0

Oct

9.5

7.5

4.5

$/kg MS

$/kg CW

10.5

5.5

4.5

South Island stag slaughter price

11.5

8.5

6.0

8.5

6.5

South Island lamb slaughter price

4.5

9.5

7.5

4.5

5.0

Last year

10.5

7.5

5.5 5.5

Last week Prior week

North Island stag slaughter price

11.5

Export markets (NZ$/kg) US imported 95CL bull

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

5pm, close of market, Thursday

Company

YTD High

YTD Low

440

The a2 Milk Company Limited

14.020

18.040

10.420

Comvita Limited

2.730

5.420

2.600

Delegat Group Limited

10.950

12.500

9.400

3040

3035

3080

420

SMP

2425

2455

2530

400

Fonterra Shareholders' Fund (NS)

3.230

4.850

3.150

380

Foley Wines Limited

1.850

2.000

1.470

Livestock Improvement Corporation Ltd (NS)

0.890

1.080

0.750

Marlborough Wine Estates Group Limited

0.225

0.240

0.192

340

New Zealand King Salmon Investments Ltd

2.060

2.980

1.760

320

PGG Wrightson Limited

2.360

2.500

0.470

Sanford Limited (NS)

6.640

7.060

6.350

Scales Corporation Limited

4.610

5.130

4.340

SeaDragon Limited

0.002

0.003

0.001

Seeka Limited

4.900

5.350

4.200

Synlait Milk Limited (NS)

9.150

11.350

8.450

AMF

5620

5830

$/tonne

WMP

5900

Butter

4750

4955

5100

Milk Price

6.74

6.75

6.92

360

Jul-18

* price as at close of business on Thursday

WMP FUTURES - VS FOUR WEEKS AGO

Jan-19

Mar-19

May-19

Jul-19

350

$/tonne

3100 US$/t

Nov-18

WAIKATO PALM KERNEL

3200

3000 2900 2800

Sep-18

Sep

Oct Nov Latest price

Dec

Jan 4 weeks ago

Feb

300

T&G Global Limited

2.620

2.810

2.550

S&P/NZX Primary Sector Equity

15346

17434

15063

S&P/NZX 50 Index

10580

10898

8732

S&P/NZX 10 Index

10289

10696

8280

250 200

Jul-18

S&P/FW PRIMARY SECTOR EQUITY

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

15346

S&P/NZX 50 INDEX

10580

S&P/NZX 10 INDEX

10289

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

6.00

NI SLAUGHTER STAG ( $/KG)

9.10

SI SLAUGHTER LAMB ( $/KG)

8.20

R2 HEREFORD-FRIESIAN HEIFERS, 390KG, AT RANGIURU ( $/KG LW)

3.10

Some get relief from rain NORTH ISLAND

HE sun was out in Northland last week, which put smiles on farmers’ faces after a miserable month though pugging damage has been way less than last year. The fine weather has perked up the cows and made the grass grow. Calving is a good way through. Our grower in Pukekohe says by the end of the week mainly dry weather with sunshine provided some relief from August’s constantly wet days. They’ve been able to apply crop protection products without wasting money or making a mess. It’s been a good winter for consumers with green vegetables remaining in strong supply. In Waikato there’s also been some nice fine weather which has increased grass growth rates. Cover is well above average for the time of the year and farmers are bringing forward their balance dates to the beginning of September. Calving is tailing off for most of them and they’re now gearing up for pre-mating heat detection. The herds are in fantastic shape with so much grass over winter. The low water table means no pugging. Farmers are being urged to have their effluent ponds drop-tested to show proof they’re not leaking and to put a focus on mental wellbeing, ensuring staff are given time off after the hectic calving season. Bay of Plenty kiwifruit growers are finishing off winter pruning and doing their end-of-season tidy-up and orchard managers are gearing up for frost protection over the bud-burst period. The growers are feeling very positive after Zespri announced a higher forecast return for green and gold and the industry appears to be in fine fettle, one consultant told us. It was a pleasant day in Taranaki with the sun peaking through a cloud-covered mountain on Friday. There’s been a lift in the temperature, meaning sound grass growth is better than last year and calving’s gone tidily. On the East Coast there’s been some much-needed rain. The feed situation is pretty good, though, and farmers are feeling positive with strong sale yard prices. Early lambs are on the ground but the main drop is about to happen over the next three to four weeks. Vege growers are flat stick cultivating soil for spring. There’s some concern about a dry summer given the low water table. On the forestry front, even though logging prices have dropped, crews are still flat out with trucks still going and boats coming in. Things are starting to speed up in Hawke’s Bay orchards with wind machines running for frost control as green tips emerge in apple and pears. Our farmer in Manawatu says it was a good week after yucky weather earlier in the month. The sun’s shining and there are lots of lambs and calves on the ground. They’re right in the middle of lambing with good conditions. Some of the hill country has been quite short in feed but stock seem to be pretty fat and healthy. It needs only one big spring storm to cause problems but everyone’s ready for it. Calving has just started. It’s been a pretty good, dry, kind winter and

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LUCKY: Lambs in Manawatu have benefited from a week of good weather.

with recent rain they’re set up pretty well. The tips of asparagus are starting to poke through in Horowhenua and the grower we speak to is anticipating a small harvest later next week so you might see some of the new-season asparagus appearing in some restaurants. Bigger volumes won’t be coming through until mid September. In his dairy operation he’s nearly three-quarters of the way through calving and after a slight pinch in the feed situation the grass is now growing and cows are in great condition. Wairarapa has also been enjoying fine spring weather, encouraging grass growth and morale is good at the stressful time of calving and lambing. However, according to a farmer we speak to, many are feeling pretty overwhelmed with so much happening on the policy front coming out of Wellington. SOUTH ISLAND In Nelson apple tree and grapevine pruning is coming to an end and vines are being tied down. It’s the same for Marlborough vineyards. Bud burst is only a few weeks away and there are already signs of movement on the pinot noir variety. The province has been windy, dry and a bit cool. Our contact near Blenheim says spring’s arriving. Everyone’s in the thick of lambing on hill country farms. There have been no storms so far so survival rates are excellent. Soil temperatures are at 8C but they need to get to 10C before the tasty clovers wake up. Two-year-old cattle are behind wires on green feed and on track to reach their target weights. The farmer we rang at Rotomanu on the West Coast says weather-wise it was an atrocious week. It was bucketing down but luckily for his pregnant cows he has a dry herd home set up for calving.

Outside, though, paddocks are saturated so a few days of blue sky would be much appreciated by man and beast. Calving started on August 13 and so far there are 130 calves in the shed out of an expected 200. Milking’s going well and the tanker’s coming every second day. With good weather across Canterbury and winter feed crops mostly finished, tractors have been busy cultivating paddocks for spring sowing. At the moment mostly cereals are going in. Lambing and calving are going well with some early tailing already being done. A fruit grower at Roxburgh says his apricot trees are covered in a sea of white blossom. The peach and apricot trees are not too far behind with hints of pink starting to appear. Hives have gone into the orchard and the bees are buzzing around pollinating flowers. There’s been a bit of rain here and there in south Otago but, in general, the last 10 days have been okay for calving. A farmer at Balclutha says his girls calve later than other herds in the area so he’s only 40% through, with 400 calves on the ground so far. When we called a farmer at Blackmount in eastern Southland on Friday he was spraying gorse on a hill. He said it was a lovely day down there and the week hadn’t been too bad either. His mob of 12 month-old calves had moved onto fodder beet after finishing off the swedes. It’s still a bit tacky underfoot for them but not as bad as it was. Mixed-aged ewes are shorn and set stocked with lambing due to start on September 15. Hoggets are booked in for a trim next week. They’ve scanned at 115%, a good result as percentages normally come in at under 100 for hoggets. On his son’s dairy farm cows are on crops, grass and silage and calving is about 50% through.

Courtesy of Radio New Zealand Country Life You can listen to Country Life on RNZ at 9pm every Friday and 7am on Saturday or on podcast at rnz.co.nz/countrylife

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FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

Farmers generosity for a good cause

A special entry of store cattle from the East Coast pulled in a good crowd at RANGIURU last Tuesday. Forward store lines over 500kg made $3.04-$3.12/kg and R2 traditional and beef cross steers, 408-450kg, were mostly $3.13-$3.20/kg. All pens with R1 steers or bulls sold over $690. Most steers were Hereford-Friesian and the best at 255-283kg traded for $975-$1050. Hereford-Friesian bulls, 260-283kg, sold for $830. There was a lack of prime cattle offered. Only 19 boner cows graced the pens, with 470474kg at $2.17-$2.19/kg.

A new fundraising scheme for the Cancer Society brought a burst of colour to the Feilding and Stortford Lodge sale yards over the last few weeks and was well-supported by sellers and buyers alike. Farmers donated the proceeds of one or two sheep to the cause and buyers were generous in their bids on those particular lines. The scheme was also supported by the stock companies and trucking firms and while it brought a jovial vibe to the yards the seriousness of the cause was never overlooked, with many people in the farming community directly affected by cancer. Cancer Society Hawke’s Bay acting centre manager Chris Franklyn said “We are very thankful to the farmers who donated stock and the stock agents who help to pull all this together. It shows the great way the rural community comes together to help and provide support to those with cancer. “They have raised about $4500 over the two sale days at Stortford Lodge, which also includes donations outside of the stock. We would like to make this an annual event for the Hawke’s Bay region and the stock agents I have talked to seem very happy to work toward this and are thinking of how it can be even more successful next year.”

Matawhero • Heavy ewe lambs lifted to $161 • Medium male lambs earned an average of $158.50 • Top prime lambs earned up to $249 Store lamb tallies lifted back up to 873 head on Friday and a lift in quality meant the average price rose to $144.23. Very heavy ram lambs topped the market at $225 with the next cut at $170. The prime market was very strong also with just a small number of lambs selling below $200, while the majority sold for $200-$219. Mixed age prime ewes mostly fetched $160, with the best up to $192.

NORTHLAND Wellsford store cattle • R2 Hereford-Friesian steers, 403kg, were a standout at $3.08/kg • R2 Hereford-beef steers, 453-457kg, softened to $2.69-$2.77/kg • R2 Hereford-Friesian heifers, 326-350kg, held at $2.85-$2.91/kg • Twelve R1 Hereford-Friesian steers, 162kg, lifted to $690 • R1 Angus-cross heifers, 192-268kg, sold to per head budgets at $540-$565 Wintry conditions did not help attract buyers to last Monday’s sale at WELLSFORD. The lack of buyers was offset by a small yarding of 280 cattle, with quality mixed throughout the offering. R2 Angus and Angus-Hereford steers, 476kg, sold well at $2.90/kg, while most Hereford-dairy, 315-482kg, traded at $2.84-$2.95/ kg. Eight Murray Grey-cross heifers, 301-384kg, returned $2.77-$2.79/kg. Six R1 Hereford-Friesian steers, 274kg, took the top price per head prize at $905, while Hereford heifers, 229kg, managed $590. Kaikohe • Two-year beef-cross heifers made around $2.65/kg • Autumn-born weaner bulls, 100kg, fetched $474 • Cows with calves at foot sold for $1120 • In-calf Angus cows varied at $2.20-$2.48/kg There were 480 head at last Wednesday’s KAIKOHE sale PGG Wrightson agent Vaughan Vujcich reported. The market was a real struggle in places, with demand easing from a small bench of buyers. Good two-year beef-cross steers still sold well at $2.90-$3.00/kg, while anything Friesian or Friesian-cross were discounted to $2.15-$2.25/ kg. Yearling cattle had a big price correction, beef-cross steers were bought for $2.85-$3.00/kg, the best bulls made up to $2.55/kg and heifers sold in a wide range of $2.40$2.65/kg.

AUCKLAND Pukekohe cattle • Top prime steers earned $3.04-$3.08/kg • Boner cows varied from $1.61/kg to $2.22/kg • Top yearling steers made $1110 Last Saturday’s PUKEKOHE cattle sale was very strong, with both quality cattle on offer and high demand. Prime cattle sold well with most above $3.00/kg, and top heifers making $3.00-$3.07/kg. Quality weaner steers traded at $505-$780, with medium heifers at $460-$535. Yearling cattle had good demand and steers sold very well, with medium types at $720-$840, while heifers varied from $540$950.

COUNTIES Tuakau sales • Friesian bulls at 240kg made $740 • Prime Hereford-Friesian steers, 685kg, earned $3.25/kg

• Heavy beef cows, 530-740kg, returned $2.44-$2.46/kg • Heavy prime lambs sold at $200-$243 TUAKAU drew a yarding of 740 store cattle last Thursday and all classes held value, PGG Wrightson agent Craig Reiche reported. Older steers at 390-440kg traded at $3.10-$3.33/kg, with most at 300-390kg earning $3.40$3.55/kg. Friesian weaner bulls, 160kg, made $645. Heavy heifers, 450-480kg, sold at $3.05-$3.15/kg, with the bulk of the 300-350kg yearlings fetching $3.00-$3.15/kg. Wednesday’s prime market was strong with heavy steers at $3.15-$3.25/kg. Heavy heifers earned $3.10-$3.17/kg and medium,$3.00-$3.10/kg. Well-conditioned Friesian cows traded at $2.23-$2.50/kg. About 1420 sheep were yarded on Monday. Medium prime lambs returned $160-$200 and heavy prime ewes, $200-$220. Medium ewes made $150$170 and light, $120-$135.

WAIKATO Frankton cattle and feeder calf • R2 Angus-Shorthorn cross steers were chased to $3.27/kg • R2 Angus-cross heifers, 347kg, sold well at $3.04/kg, • Autumn-born 1-year Hereford-Friesian heifers, 303kg, lifted to $3.23/kg • R1 Angus-Friesian steers, 235-285kg, improved to $845-$1040 • R1 Hereford heifers, 191-223kg, lifted to $665-$765 A sunny day helped draw a bigger crowd to FRANKTON last Wednesday, as throughput lifted to 1150. R2 beef-dairy steers, 378-507kg, held at $3.00$3.14/kg, and heifers, 363-386kg, $2.98-$3.04/kg. R1 Hereford-dairy steers, 184-220kg, strengthened to $600-$790, and Hereford-Friesian, 192-244kg, $755-$830. Hereford-dairy heifers, 161-212kg, improved to $500-$695, while Hereford-Friesian, 186-198kg, held at $630-$715. R1 Hereford-dairy bulls, 153-253kg, lifted to $500-$670. Hereford-Friesian, 182-270kg, held at $650- $790, as did 215-317kg Friesian at $720-$900. Prime steers, 621-701kg, lifted to $3.12-$3.24/kg, while Hereford-Friesian heifers held at $3.00-$3.07/kg. 1100 calves were penned, with top Friesian bulls discounted to $140, while small to medium lifted to $50-$115. Good Hereford-Friesian improved to $315, though small to medium eased to $110-$220. Medium to good Angus-cross made just $50-$100. Top HerefordFriesian heifers softened to $95- $115, though small firmed to $45-$65.

BAY OF PLENTY Rangiuru cattle and sheep • R3 Angus steers, 405-480kg, made $3.17/kg • R3 Hereford-Friesian steers, 474kg, fetched $3.14/kg • R2 Hereford-dairy heifers, 362-413kg, strengthened to sell for $3.06 -$3.15/kg • R1 Hereford bulls, 246kg, sold for $1030 • The top prime lambs made $198, and the best store lambs fetched $140

POVERTY BAY

TARANAKI Taranaki cattle • R2 Friesian steers, 421kg, sold well at $3.18/kg • Top end of the R1 steers made $850-$900 • R1 Hereford-Dairy heifers, 262-295kg, earned $710-$755 • Mixed-age in-milk Friesian and Kiwicross cows traded at $1100$1350 Last Wednesday’s TARANAKI cattle sale was similar to the previous week, with buyers selective in their bids. Quality R2 steers remained popular, and the top end of Hereford-Friesian earned $3.26/kg and $3.37/kg. Heavy R2 heifers also sold well and those around the 400kg mark were able to realise $3.00-$3.07/kg. Heavier R1 steers were well sought, although lighter types were cheaper buying. R1 heifers were harder work, with most selling in a range of $600-$700.

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Angus steers, 705-726kg, improved to $3.20-$3.21/kg • Hereford-Friesian heifers, 513-550kg, softened to $2.82-$2.84/kg • Very heavy cryptorchid lambs topped the sale at $227.50 • Very heavy male lambs held at $210.50-$215 • Very good ewes held at $142-$150 A sea of yellow greeted salegoers at STORTFORD LODGE last Monday, as they kicked off the first of the Cancer Society sale day fundraisers. Cattle throughput lifted with quality lines up for grabs, and Hereford-Friesian cows, 573kg, earned $2.65/kg. Total sheep throughput was like the previous sale at just over 2500, though with more ewes and a slight reduction in lambs. Heavy ram lambs eased to $183.50, while top mixed sex held at $209, with heavy softening to $150-$169. Heavy to very heavy ewe lambs held at $160-$201.50. Very heavy ewes improved to $174.50$206, while medium-good to good held at $110-$121. The lighter end improved to $74-$106. Stortford Lodge store cattle and sheep • Top line of R2 Angus &amp; Angus-Hereford heifers, 370kg, achieved $3.41/kg • R1 Angus heifers, 220-277kg, made $790-$890 • Heavy ewe lambs lifted to $164-$177 • Good ewe lambs lifted to $140-$160 • Mixed age Romney ewes with multiple terminal lambs made $113-$121.50 all counted Store cattle finished August on a quiet note at STORTFORD LODGE last Wednesday, but in contrast 600 ewes with 870 lambs-at-foot created the opposite atmosphere in the sheep pens. Demand for the latter was strong and prices were consistent throughout the section. Lower percentage lines matched the multiple lines at $112$125.50 all counted, while 4-5-year Romney with multiple lambs made $116 all counted. The store lamb market was competitive as buyers secure what they can. Heavy males made $164-$185, and one line of very heavy ram lambs, $205.50. Lighter ewe lambs traded at $120-$127. Though cattle volume was low, quality was mostly decent. R2 traditional steers, 514-563kg, varied from $3.25/kg to $3.42/kg, and eight R1 steers, 209kg, made $752.

MANAWATU Feilding Prime cattle and sheep; feeder calves • Boner Friesian cows, 495-530kg, firmed 23c/kg to $2.40/kg • Boner Friesian heifers, 395-465kg, increased 14c/kg to $2.49/kg • Very heavy prime lambs made $194-$229, with one pen at $240 Only 89 cattle were penned at FEILDING last Monday, with boner numbers down to only 55. The remainder were

SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019

crossbred steers, 605kg, made $2.98/kg, while R2 Friesian bulls, 420kg, earned $2.52/kg. R2 heifers were a harder sell with Hereford-Friesian, 315kg, at $2.44/kg. Yearling Friesian bulls, 172-263kg, sold for $2.09-$2.29/ kg, while yearling Hereford-Friesian heifers, 167-250kg, varied from $2.31/kg to $3.25/kg. Autumn born weaner steers made $410-$590, while bulls and heifers were $310$450.

CANTERBURY Canterbury Park sale • Top store lambs made $140-$141 • Two-shear ewes with lambs-at-foot made $124 all counted • Prime Piedmontese bulls, 705kg, sold for $3.30/kg Store lamb numbers dropped dramatically at CANTERBURY PARK last Tuesday to just 260 lambs, with lighter weights bringing the average price down to $125.13. Prime lambs sold well, with tops earning $210-$240, while prime ewes made $217-$225 at the top end. Traditional and exotic prime steers typically sold for $3.10-$3.20/kg, with top Charolais and Speckle Park above this at $3.21-$3.29/kg. Prime Charolais-cross heifers were also popular with 505-540kg, earning $3.08-$3.12/kg. Coalgate store and prime cattle; all sheep • R2 Angus-Hereford steers, 354kg, made $3.18/kg • R2 Angus-cross heifers, 422kg, fetched $3.01/kg. • Prime steers, 465-680kg, rose 18c/kg to $3.14/kg • 40 ewes with 45 lambs-at-foot traded at $116 all counted It was a busy day at COALGATE last Thursday in both sheep and cattle pens, with volume well above normal. The best R2 steer lines were Hereford, 464kg, and AngusHereford, 341kg, that made $3.17-$3.18/kg. R2 Angus bulls, 333kg, sold well at $3.06/kg. R1 Hereford-Friesian heifers and steers, 263-283kg, made $820-$870. Prime cows, 540665kg, held at $2.01/kg. Prime lamb throughput was impressive at just shy of 3000. 550 made $200-$240, with medium types $170-$199, and half the tally $150-$169. Prime ewe prices rose $2-$5 per head with volumes also high. A few achieved $260, with most top lines $190-$202. Store lambs were hard to find; the best made $133 and most $119-$129.

SOUTH CANTERBURY Temuka prime and boner cattle; all sheep • Prime traditional steers, 565- 605kg, held at $3.06/kg • Prime Hereford-Friesian steers, 505-555kg fell 13c/kg to $2.86/kg • Boner Friesian cows, 450-675kg, rose 8c/kg to $1.98/kg • Store lamb throughput reduced dramatically to 409, the best at $147 It was a small yarding of cattle at TEMUKA last Monday. Little separated prices for high yielding heifers from steers as prices firmed. Charolais, 654kg, made $3.06/kg and Angus, 582kg, fetched $3.03/kg. Prime cow volume rose, with Charolais, 659kg, traded at $2.42/ kg and Angus, 525-584kg, valued at $2.34-$2.40/kg before prices tailed off for the remainder. Prime lambs were well competed, with prices on par with the previous sale. The majority sold for $180-$218, with another cut at $160-$177, and nothing sold for less than $134. Prime ewe volume halved and prices held, with very heavy ewes at $200-$218 and the majority $140-$186.

OTAGO

GOOD CAUSE: Carrfields stock agents Angus Schaw, Colin Schaw and John Kingston get into the spirit of things at Stortford Lodge last week.

Angus cows, 384kg, that sold for $2.19/kg. Over 5000 lambs were yarded; 175 were sold as a school fundraiser and some excited children watched these sell for $200-$208.50. Heavy prime lambs were $179-$193, with a smaller number of lesser lines at $121-$159. The best condition ewes made $177, while medium and good lines made up a third of the tally and sold for $122$150. Friesian bull calf prices at MANFEILD PARK eased with only 16 pens at $100 or above. Good Hereford-Friesian bulls traded for $205-$265, with heifers $120-$155. Feilding store • Traditional and exotic R2 steers, 455-530kg, were $3.39-$3.49/kg • Good exotic-cross and beef-Friesian heifers, 405-480kg, made $3.08-$3.15/kg • R1 Friesian bulls, 240-280kg, went for $3.00-$3.07/kg • Ewes with LAF mainly made $120-$124 all counted • Medium-to-good ewe lambs lifted to an average of $154-$167 Just under 1500 store cattle mainly sold well. The big numbers meant buyers were relatively selective though. Good R2 steers firmed, but the rest did well to get above $3.00/kg. The better R2 heifers easily outsold the lower-

end steers, usually $3.10/kg plus. A mixed showing of R1 cattle met a similar market to the week prior. Some 320kg Simmental-cross steers were $3.40/kg, with straight-beef 255-270kg heifers at $880-$900. A showing of 3800 store lambs was just a few too little for the crowd, pulling the market up by $5-$10/hd. A few prime lambs were up at $201-$207, but normally good males were $165-$180 and lighter cuts around $135$150. The better-end of the ewe lambs were up at $160$175, while mediums were also solid, only occasionally below $125. Ewe with lambs-at-foot were fractionally down, but still went as high as $128 all counted. Rongotea cattle • R3 Angus-cross steers, 515kg, lifted to $2.89/kg • Yearling Hereford-Friesian steers, 255-362kg, varied from $2.90/ kg to $3.25/kg • Friesian boner cows, 415-518kg, earned $1.90-$2.11/kg • Simmental cross feeder bull calves made $350 At RONGOTEA last Wednesday, shorter term cattle sold well while longer term types struggled, New Zealand Farmers Livestock agent Darryl Harwood reported. R3

Balclutha • Heavy prime lambs made $170-$200 • Heavy prime ewes held at $160-$170 • Two-year Murray Grey steers, 488kg, fetched $3.17/kg • Two-year Hereford-Friesian steers, 460kg, sold very well at $3.34/ kg At BALCLUTHA last Wednesday there was a good yarding of prime lambs, which sold to strong demand with light to mediums making $130-$160. Some new buyers were present for store lambs and these sold up to $120-$135. Store cattle sold well with interest very high in the two-year section, and Hereford-Friesian heifers, 431kg, returned a solid $3.00/kg. Demand for yearling cattle was not quite as strong, although Friesian bulls, 270kg, managed $800.

SOUTHLAND Charlton sheep sale • Heavy prime lambs made $190-$202 • Heavy local trade rams sold for $80 • Top store lambs softened to $120-$130 There was a small yarding of prime lambs at CHARLTON last Thursday and these sold to good demand, with light to medium types making $140-$185. Prime ewes strengthened with the top end selling up to $180-$200. Demand eased for store lambs, with light to medium types dropping to $80-$110, while light breeding ewes made $156.

Markets

64 FARMERS WEEKLY – farmersweekly.co.nz – September 2, 2019 NI SLAUGHTER BULL

NI SLAUGHTER LAMB

SI SLAUGHTER STEER

($/KG)

R1 BEEF-DAIRY STEERS, 245KG AVERAGE, AT FRANKTON

($/KG)

($/HD)

5.60

8.45

5.85

865

high $3.17-$3.18/kg $113-$121.50 age Romney lights R2 traditional steers, Mixed ewes with multiple

Spring venison spike back Annette Scott

annette.scott@globalhq.co.nz

HE return of the spring peak in venison prices is not expected to reach the unprecedented highs of last year. Deer farmers are starting to see a return of the seasonal venison price increase that traditionally occurs each spring, Deer Industry New Zealand chief executive Dan Coup says. It follows an unusual 2017-18 season when venison prices climbed steadily from January 2017 before peaking in October last year. The return of the spring peak doesn’t come as a surprise but Coup hopes the peaks and troughs in the seasonal price curve will be less marked than in the past. That is because of the industry’s success in developing year-round markets for chilled venison. “Last year was a real anomaly with late August schedule prices $2 a kilogram more than they are now. “This was partly driven by a goldrush from United States pet food-grade products, which reached $6/kg – a level that couldn’t be sustained.” The average price for pet food grade products has since fallen to $3.50/kg. The average farmgate venison stag price in mid-August was $9.06/kg. Putting the abnormal price hike of 2017-18 aside the price is about $1.50/ kg ahead of where it was in the previous five seasons. “As we move into September and October prices for venison animals for chilled season supply are expected to firm further by about $1/kg depending on the contract the farmer has with their venison marketer,” Coup said. All things being equal marketers expect prices will ease again through November in the more normal seasonal price curve. Coup said markets and prices are unpredictable and, as with the pet food spike, sometimes obscure long-term drivers of demand.

GOING UP: The price for venison is expected to firm another dollar a kilo.

If there’s another goldrush we will of course bank it. Dan Coup DINZ One of the most important of these, year-in year-out, is the spring market for chilled venison from Germany, Austria, Switzerland and elsewhere in northern Europe. The price premiums paid for supply during this period normally make it worthwhile for some farmers to have stags ready for processing from August through to early November. However, it is quite dependent on their farm system. “For instance, whether the farm has early growth genetics, early pasture production or is likely to dry out early in the summer.” One of the industry’s successes is that it has built a preference for NZ farmraised venison in this premium market.

In the past the European chilled market favoured feral or wild game and venison from other countries so maintaining supply is important for the industry’s long-term future. “If there’s another gold-rush we will of course bank it but the main focus of marketing companies and DINZ is to maintain European chilled season demand while building yearround demand elsewhere,” Coup said. The Cervena venison programme in North America has succeeded to the point where the US is now NZ’s largest chilled venison market. That programme is now being expanded into Canada. “In northern Europe, in the face of centuries of tradition, we are pioneering the sale of Cervena venison as a summer grilling item as part of our Primary Growth Partnership programme, Passion2Profit.” Individual exporters, with DINZ support, have also developed useful markets such as Scandinavia. The premium pet food market remains a useful outlet for offals and manufacturing grades of venison.

700

340-465kg, at Coalgate

terminal lambs

ACROSS THE RAILS SUZ BREMNER

South Island calf pens are ghost towns WITH dairy calving well through now feeder calf sales should be a regular event for rearers. The North Island is trading calves as normal with yards busy but those in the larger Canterbury area resemble ghost towns. It is yet another tragedy of Mycoplasma bovis with fewer calves being sold on the open market and a sharp increase in private sales as buyers go directly to reputable and Mycoplasma-free sources. Calf rearing has always been a good, entrylevel farming option but with little to no interest from the North Island this year the security of on-selling is limited. PGG Wrightson South Island dairy manager Barry Fox said that is having a big impact on the South Island feeder calf market. “The Friesian bull market is affected due to a lack of interest in 100kg contracts from the North Island for November-December delivery. Rearers need the security of the contracts but that is not there this year.” Fox says the bobby calf kill is slightly ahead of last year, which makes sense given the situation. The South Island calves make up a large percentage of the Friesian bulls that are finished and without them in the system, it begs the question of what supply will be like come autumn, when the finishers look for stock. Prices are always at the mercy of a variety of factors such as weather, feed levels and overseas demand but the lack of calves reared now will add yet another element to that. The North Island calf sales have largely been business as usual though PGG Wrightson agent Simon Rouse said there are a few less people looking to rear calves in Bay of Plenty this year, especially Friesian bulls. The lack of interest in South Island calves should mean a lift for their northern friends but that does not appear to be the case since there is caution around the volatility of the bull market. Prices are back on the last few years though there is still good demand for beefdairy calves. suz.bremner@globalhq.co.nz

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