Farmers Weekly NZ December 2 2019

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Best trade/specialist publication and website – Voyager Media Awards 2019

Vol 18 No 47, December 2, 2019

Overseer won’t work for growers

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Many reports, little action Richard Rennie richard.rennie@globalhq.co.nz

N

EW research proving dairy farms can cut nitrogen and gas losses is welcomed by rural consultants but they say farmers now need strong leadership to help make the required changes. AgResearch has released results of work that provides scenarios where farms can reduce greenhouse gas emissions and nitrogen losses to waterways. The work is at least the fourth major research project in the past 10 years indicating reductions are possible. It presents outcomes similar to three earlier pieces of research, including a 2009 DairyNZ sponsored Waikato nutrient efficiency study. That report, like the rest, required stocking rates to drop by at least 5%, nitrogen use to decline significantly and greater use of bought-in feed in some cases. AgFirst director James Allen and ecologist Dr Alison Dewes were both involved in the 2009 study. Dewes has since modelled multiple scenarios where farms reduce gas and nitrogen emissions and helped farmers put them into action with positive profit results. While the AgResearch work is valid, a decade down the track there should have been more progress made on farms to have changes in place. “We did that Waikato study a decade ago and no action was taken from it. “It showed it was possible to

drop stocking rates and make major reductions in nitrogen losses while also improving profit, yet that report disappeared.” Dewes is now working with Pamu applying some of her own modelling that aligns closely with the AgResearch findings. That includes lowering stocking rates on lighthouse farms owned by the state-owned enterprise in sensitive catchments or where more intensive winter grazing is practised. Allen said the AgResearch outcome relies heavily on farmers getting a value-add premium of 26% for producing in a carbonneutral manner. “You would have to ask though to show me the money. If farmers can really get a 26% premium I think you will find they will be stepping up. But getting those premiums is not always that easy.” He is also concerned lowering stocking rates, common to all the research, will affect farm management. “This particular study is reducing cows from 2.9 a hectare to 2.4. If you now have half a cow a hectare less how do we maintain pasture quality through spring as effectively? “It is an old adage that it’s easier to run a farm that is overstocked than when it is understocked.” Lowering grass input and feeding more maize is also part of the latest research’s solution to nitrogen and gas losses. But that requires considerable infrastructure to do efficiently and cost-effectively, such as feed pads and more machinery. “And maize will only work for a certain proportion of NZ as a crop.”

They include offsetting nonreducible carbon emissions by buying credits and exporting farm nitrogen losses to another farm growing maize. “You need to think about the boundary of a farm system. This study goes beyond the farm boundary.

It is an old adage that it’s easier to run a farm that is overstocked than when it is understocked. James Allen AgFirst

TAKE ACTION: Ecologist Alison Dewes has challenged the dairy sector to act on its research rather than do more.

Allen said DairyNZ must give farmers some clear direction now nutrient and gas goals are in place. “If the answers do lie in fewer cows and more maize then farmers will want to see where this is working and how they can apply it on their farm.” He appreciates DairyNZ faces a challenge with such a broad church of levy paying farmers.

Some operate at high input levels with others at the other extreme on low-cost, all-grass systems. That will make it hard for an industry body to promote uniform change. DairyNZ strategy and investment leader Bruce Thorrold said some of the assumptions made in AgResearch’s latest work are heroic.

“There is also an assumption on a low-carbon premium but there is a lot of uncertainty around premiums and without the premiums the farms had a drop in profitability across every scenario in the research.” Thorrold said on the upside the research has again helped highlight the need for greater feed efficiency. “Now we have targets to aim for we will be doing more with farmers on how to bring those three critical things of increased profit, lower nitrogen losses and lower greenhouse gas losses together through greater efficiencies. “It is a challenging target to move 12,000 farmers in the time available.”

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NEWS

WEATHER OVERVIEW A giant storm in the Southern Ocean will dominate New Zealand’s weather this week with strong west to northwest winds up to gale at times, maybe severe gale from the lower North Island southwards. Heavy rain returns to the West Coast. Rain totals drop going north and east with the bulk of the rain falling on the South Island’s West Coast. Winds might be problematic for some eastern areas. Keep up to date with any official warnings this week. It might be a bit rough for some after such a quiet end to November. There won’t be a huge amount of rain for dry northern areas. Some northern downpours possible this weekend though.

5 No concern over lamb import cut British food retailer Waitrose’s move to only stock British lamb is not expected to have a significant impact on New Zealand sheep farmers despite it leading to the end of a longstanding contract with Anzco.

Newsmaker ������������������������������������������������������28

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Wind

Rain The bulk of the rain this week and weekend leans to the west of both islands with the West Coast getting most of it and the southern half of that region getting the most overall. Eastern areas are fairly dry.

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Temperature

World �����������������������������������������������������������38-39

For the most part winds are coming from the northwest this week. There will be some local variations. Winds might be strong enough to reach severe gale force, especially from the lower North Island southwards.

Highlights/ Extremes

Opinion ������������������������������������������������������������30

ON FARM STORY

NZX PASTURE GROWTH INDEX – Next 15 days

It is warmer than average in most regions and that is likely to continue this weekend and into next week as west to northwest winds and subtropical airflows continue at times over the country.

The main highlights this week come from the huge Southern Ocean storm. Strong wind, heavy rain and marine warnings are all expected in the days ahead. Meanwhile, eastern areas continue to be drier than average.

14-DAY OUTLOOK

There is heavy rain in the west plus warmerthan-average conditions for most of this week and probably next week too. It will boost pasture growth after some have perhaps seen a slow-down recently because of the very warm and dry weather. Pasture growth rates in the west of both islands should get a spike, if not this week then likely next week. But eastern areas do remain mostly dry with slower growth expected to continue.

SOIL MOISTURE INDEX – 28/11/2019

36 Taking one step at a time Kairanga dairy farmer and multi-sport enthusiast Mark Olsen is passionate about the positive effects exercise can have on a rural lifestyle.

REGULARS Real Estate �������������������������������������������������40-46 Employment ����������������������������������������������������47 Classifieds ��������������������������������������������������������48 Livestock ����������������������������������������������������49-51 Markets �������������������������������������������������������52-56 GlobalHQ is a farming family owned business that donates 1% of all advertising revenue in Farmers Weekly and Dairy Farmer to farmer health and well-being initiatives. Thank you for your prompt payment.

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News

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

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Growers are told change needed now Colin Williscroft colin.williscroft@globalhq.co.nz VEGETABLE growers have been told Overseer won’t work for them and farm environment plans are the best way to demonstrate good land management practice. Agrilink director Andrew Barber, who is working with Vegetables NZ and HortNZ to encourage growers to develop plans, has been running a series of workshops in Levin to explain their benefits. Workshops are also being held in Pukekohe. But there are a range of drawbacks applying Overseer to vegetable production. “In its current form Overseer won’t work for vegetables and councils could penalise vegetable growers unfairly if they continue to reference its output limits in consent outcomes.” It does not properly allow for short-term rotation crops going in and out of paddocks that are a feature of many market gardens while it relies too much on calendar and weather averages. “You never have an average season with weather,” Barber said. Rather than focus on problems with Overseer Barber says growers are better off making changes to their farming practices by following industry-led standards, which will result in reduced leaching whether Overseer models show it or not. The models might catch up in the future but changes need to ADVERTISEMENT

be made now and having a farm environment plan is a good way to achieve them. The five workshops provided growers with a step-by-step process to reduce soil loss and erosion as well as reduce inputs like water and nutrients through the use of the plans. The idea is for grower plans to be bolted on to the good agricultural practices programme many are already part of because it provides a ready-made framework, a system of checklists to base templates on and thirdparty auditing. Barber says after attending the workshops, which will likely be also run in other regions, most growers should be able to create their own plans. He expects them to be part of every type of farming business in the future. “Farm environment plans won’t guarantee getting resource consent but not having one will guarantee you won’t.” Though the plans are property specific, with tailored controls taking into account soil types and angles of slopes in paddocks, they include generic information covering topics like irrigation and nutrient management. About three-quarters of growers around Levin attended the workshops, which he says shows their commitment to caring for the land. “It also sends a clear message to central and regional government that growers are taking action to

NO CHOICE: Andrew Jung, who grows fennel at Te Horo, expects farm environment plans to become compulsory.

improve water quality and the state of our land. “They just need a bit of time to consolidate the improvements.” Te Horo vegetable grower Andrew Jung, who attended all but one of the workshops, says whether they like it or not vegetable and fruit growers better get used to the idea of having a plan because he expects they will soon be compulsory for anyone working the land. “There’ll be no choice if you

want to continue gardening.” Jung, who grows fennel and celeriac on about 16ha, says when developing a plan it’s important growers are realistic and don’t include impossible goals because they will be held to them. The speed of the plans’ uptake by growers remains to be seen but supermarkets might have a say in that. If they decide to buy only from growers with approved plans then growers will come on board pretty quickly.

“When it affects their livelihood people will change. It won’t take long.” Barber says the plans will enable growers to charge a premium for their produce to discerning customers because they will be able to provide evidence they use best practice but Jung is not convinced. “It’s all very well telling the story but at the end of the day people will still want cheap vegetables.”

LEGAL TALK with Barbara McDermott Contracts and the “officious bystander” - implied terms must be obvious

Less than a fortnight before the contract had been made the Ministry for Primary Industries announced that Micoplasma bovis had been found for the first time in New Zealand. In response Ngai Tahu developed protocols to safeguard it from the spread of the disease. Those protocols required it to establish beyond reasonable doubt that any cattle introduced to its farms were free of Micoplasma bovis. Despite John Young Farming providing a declaration that to the best of its knowledge and belief the cattle had not been exposed to Mycoplasma bovis, and after making further enquiries, Ngai Tahu was not satisfied the cattle would meet the protocols it had put in place. Ngai Tahu advised John Young it was not prepared to take delivery of the cattle because John Young

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

could not prove the animals were healthy and free of disease. John Young had no option but to sell the cattle to other buyers. John Young’s claim John Young brought proceedings claiming summary judgment for $211,000. This amount was the difference between the price which would have been paid by Ngai Tahu and the price John Young actually received for the cattle as well as labour, feed, pasture and transport costs because the cattle had to be held for longer than expected. The grounds for John Young’s claim were Ngai Tahu’s repudiation of the contract - or wrongful refusal to perform the contract. In response to John Young’s claim, Ngai Tahu argued that, although not written in the contract, there was a term implied into it that John Young would, if necessary, provide proof that the animals were in good health and free from injury or disease. Implied terms and the “officious bystander” test The judge referred to various tests laid down in cases where the court would imply a term into the contract. The judge concluded the test commonly called the “officious bystander” test was the most

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apt in this case. The officious bystander test will imply a term into a contract when it “is something so obvious that it goes without saying; so that, if, while the parties were making their bargain, an officious bystander were to suggest some express provision for it in their agreement, they would testily suppress him with a common ‘Oh, of course!’” The judge concluded that it was probable reasonable people would have different responses – some would say it was obvious the contract should contain an implied term that John Young would, if necessary, provide proof that the animals were in good health and free from disease, and some would not. The judge entered judgment in favour of John Young for the $211,000 it sought. With the benefit of hindsight, Ngai Tahu could have avoided this result if it had thought carefully about what needed to be included in the contract before it was signed. Arguing terms should be implied into contracts after they have been made is rightfully beset with difficulty. Parties to contracts need certainty about what has been agreed.

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On 6 August 2017, John Young Farming Limited entered a contract to sell 1,000 Friesen rising oneyear-old bulls to Ngai Tahu Farming Limited. The contract provided for John Young to deliver cattle which were in good health and free from injury or disease. Ngai Tahu had the right to reject cattle which did not meet this description.


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News

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

Good sheep meat prices set to stay Annette Scott annette.scott@globalhq.co.nz DESPITE global trade wars, Brexit and the impact of African swine fever the trade fundamentals for New Zealand’s sheep meat sector remain among the strongest in living memory. Spring lambs at $9 a kilogram and record high mutton prices are not a flash in the pan, Beef + Lamb chief economist Andrew Burtt and senior insight analyst Ben Hancock say. And the fundamentals leading to record highs in the sheep industry look set to continue for at least the next three years.

The drivers over the next three years indicate the current industry buoyancy will continue. Andrew Burtt B+LNZ Burtt said the uncertainty that has defined recent years in the international trade environment and geo-political relationships appears heightened but daily occurrences creating ambiguity in forecasts and risks are not lining up with the fundamentals. “While AFS is a factor it is the biggest thing that has happened in meat protein circles in last 1015 years and with pork consumers one sixth of the world’s meat consumption it is significant but

at a micro level for sheep meat. “Brexit – who knows what’s going to happen there and then the trade wars between China and the United States, all factors where there could be some volatility,” Burtt said. But the key driver of the buoyancy in the sheep industry goes beyond all three of those factors. “The actual drivers started back in the 2016-17 season from genuine growth in demand and global population growth. “China has been taking a lot of meat for the past few seasons, well before ASF.” The high demand for mutton from China has extended to demand for value cuts of lamb with increased competition for them benefitting the lamb price at a time when Britain, traditionally a significant market, has been in a weaker purchasing position. “The demand for red meat protein is still there, underlying demand is good and strong and those fundamental drivers are not diminishing despite the ASF noise we are hearing at the moment,” Burtt said. Hancock said the high export sheep meat prices have been driven by Chinese demand because of growing and solid demand rather than disruption to Chinese production of other proteins. Disruptions to Australian production and tight NZ supply support demand for NZ sheep meat despite trade uncertainty in Europe, Hancock said. “The main drivers of the current high prices at the NZ farmgate are being driven by genuine higher demand out of China and these

IN DEMAND: The United States market for lamb is a niche one but a good one and now New Zealand’s third biggest, Beef + Lamb senior insight analyst Ben Hancock says.

drivers are expected to grow in the short term.” Disruptions from drought, rain and fires in Australia are playing into NZ’s hands. With the Australian flock rebuilding as weather conditions permit, the number of lambs and adult sheep processed will fall 9% and 28% respectively as the national flock lifts 4%. Australia’s tighter supply will have an influence on international trade with Australia and NZ accounting for more than 70% of the international sheep meat volume exported. “Markets have strengthened and deepened over the past five years and while China is a market

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that matured really quickly, the US is a premium market growing in value and volume. “It’s a good market and a niche market and third largest by volume,” Hancock said. One of the great strengths of the NZ sheep industry is the diversity of market demand. “The strength for NZ is its ability to meet demand for specific product to fit the cuisine demands of specific countries. “Exporters have done a lot of work to produce case-ready product to feed into food manufacturers and consumers as product for various, often niche, purposes and overall this feeds

value back to the farm gate.” So is the NZ sheep industry buoyancy sustainable? “The drivers over the next three years indicate the current industry buoyancy will continue given the global demand for protein, highlighting the underlying fundamentals of the key driver being demand, with ASF coming on top of that,” Burtt said. But the challenge for individual farmers and processors will be keeping the right balance of production. “Given all that – now and over the next few years is a good time to invest for the future,” Hancock said.

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News

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

No concern over lamb import cut Colin Williscroft colin.williscroft@globalhq.co.nz

PROACTIVE: Anzco sales and marketing general manager Rick Walker says the company is working with customers around the world to add value to its lamb portfolio.

This focus on market diversification and identifying premium categories and customers is a major reason why farmgate prices over the past year have been at historically high levels. Rick Walker Anzco continue to receive market returns recognising the high quality of the product they produce. Meat Industry Association chief executive Tim Ritchie said he does not expect other UK food retailers to follow Waitrose’s example

though Aldi, the Co-op and Morrisons say they already have a 100% British lamb policy. With contrasting seasons the lamb sectors in NZ and the UK are complementary, which helps meet a year-round demand for quality lamb products by British consumers. Though it is possible for one UK retailer to opt for selling only home-grown product it would be an extremely difficult task for British lamb producers to meet a national demand for chilled product 365 days of the year. “A small part of the market can do it but for the whole market, it would be a huge challenge.” But it is not in NZ’s interest to put any more lamb into the UK than consumers want. The meat industry here has been responsible in its approach, adjusting the amount sent to match market demand.

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CONFIDENT: Meat Industry Association chief executive Tim Ritchie does not expect other British retailers to follow Waitrose’s example.

Lamb exports to the UK are well below quota volumes, with the logic being supplying more than the market demands will lead to lower prices. The diversity of markets for NZ red meat today means exporters are not as reliant as they once were on the UK market with demand from buyers in Europe, Asia and North America reflected in high prices being paid to NZ sheep farmers. The impact of African swine fever on the Chinese pork market has led to increased in demand for NZ beef and sheep meat, which is likely to continue for the foreseeable future, he said. Waitrose’s announcement was welcomed by the UK’s National Farmers Union. Livestock board chairman Richard Findlay said it is a significant decision and will provide a welcome boost for

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the UK sheep sector at a time of uncertainty for its future trade relationships. “It means the public have more opportunity to buy British, locally produced lamb reared to some of the highest and environmentally sustainable standards in the world.” A recent survey showed almost 70% of shoppers want more British food on supermarket shelves. “Waitrose has previously been a strong supporter of the British livestock industry and this commitment, which will see additional British lamb producers join its supply chain, will help to ensure our sector has a sustainable and ambitious future.”

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BRITISH food retailer Waitrose’s move to only stock British lamb is not expected to have a significant impact on New Zealand sheep farmers despite it leading to the end of a longstanding contract with Anzco. Waitrose said it plans to sell only United Kingdom-produced lamb by the northern hemisphere summer of 2021, with all its organic lamb and fresh chicken, pork, beef, eggs and liquid milk already sourced exclusively from Britain. The decision is an extension of Waitrose’s commitment to UK lamb producers as it focuses its investment on the future of British agriculture, the company said. Anzco sales and marketing general manager Rick Walker says Waitrose based its decision, which will result in the end of a longstanding relationship between the two companies, on changing consumer trends. The global lamb market has been changing over recent years so Anzco has been proactively working with customers around the world, notably in Europe, North America, Japan and China, to add value to its lamb portfolio. “While the UK lamb market has been a traditional home for NZ lamb, overall exports from NZ to this market have been in decline as the UK retail sector has become more competitive, UK consumers have put pressure on retailers to support local farmers and NZ has opened up new markets outside of the UK that can offer more value. “This focus on market diversification and identifying premium categories and customers is a major reason why farmgate prices over the past year have been at historically high levels.” Anzco firmly believes its lamb business is strong enough to ensure its farmer suppliers will


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News

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

7

Fonterra claims green progress Hugh Stringleman hugh.stringleman@globalhq.co.nz IT IS not easy being green when you are not profitable, Fonterra leaders say in the co-op’s third annual Sustainability Report. The past financial year was tough and one of significant challenges and fundamental change in the culture and strategy of the co-operative. “Given the tough year we had it would’ve been easy to push sustainability to one side, whereas we have in fact continued to make progress,” chief executive Miles Hurrell said. “We have underlined our commitment to the importance of sustainability and firmed up plans to do more on climate change, coal, waste and sustainable packaging.” The report said only four of 11 core sustainability indicators showed good progress, the other seven being classified as some progress or slight delay. The improvements were in recordable injury frequency on Fonterra premises, employee engagement, farm environment plans and manufacturing sites treating wastewater to leading industry standards. Some of the notable misses included four of the 48 manufacturing sites not yet certified under a leading food safety management system, only 29% female representation in senior leadership and a slower reduction in greenhouse gas emissions. Global sustainability director Carolyn Mortland said the shortfalls on diversity targets are causing concern in the company because there is a long way to go. The report is the first to be organised under Fonterra’s new triple-bottom line reporting framework – healthy people, healthy environment, healthy business. The healthy people category contains commitments on the quality of dairy products, the working environment of its employees, diversity in employment and helping to

NO SLACKING: Given its tough year Fonterra might have put sustainability aside but has made progress, chief executive Miles Hurrell says.

Consumer habits are changing and they have a growing number of nutritional options, many of which claim to be more sustainable than dairy. John Monaghan Fonterra build resilient communities. However, the report said community investment through the Grass Roots Fund was halved to $382,000 as Fonterra reviewed its approach to that giving. Under the healthy environment goals are farm environment plans for all dairy farms by 2025 and zero waste to landfill and all packaging recyclable, reusable or

compostable by the same date. At the end of the 2019 financial year 23% of Fonterra farms had plans, prepared with the help of its sustainability advisers. Fonterra is on track to achieve 100% plan coverage by 2025, Mortland said. The healthy business key targets shown in the strategy reset and annual report in September and summarised in the sustainability report, are new. They are to bring debt down into the range 2.5 to 3.5 times ebitda by 2022 and achieve 10% return on capital and earnings a share of 50c by 2024. The comparative numbers for those measures in FY2019 were 5.8% and 17c and debt at 4.3 times ebitda. Leading dairy sustainability will not be easy, chairman John Mongahan and Hurrell said in a joint statement in the report. “Consumer habits are changing

and they have a growing number of nutritional options, many of which claim to be more sustainable than dairy. “We have an opportunity to take what’s special about us – our land, pasture-based farming model, our dairy and our New Zealandness to show the world how dairy is part of the future.” Much of the change falls on the shoulders of dairy farmers who feel the weight of community expectations getting heavier, they said. The co-operative is putting more energy and resources into the development of on-farm tools, research and solutions that will help them run healthy and sustainable businesses. “Our approach is to apply and share our know-how and, by working with others, deliver technologies and solutions that don’t exist today. “Most importantly, we’re asking

for a clear and consistent sciencebased approach. “That means taking the emotion out of these discussions, from both sides, and working constructively towards the development of realistic policy and solutions.” Fonterra is making progress towards low-carbon energy for processing slower than it wants. During the past year it converted Brightwater to co-fire wood biomass with coal and has begun to convert Stirling to electricity. “The challenge with adopting wood biomass is the security of supply and obtaining sufficient volumes within a reasonable distance of the sites to allow full displacement of fossil fuel,” the report said. About half of Fonterra’s gas emissions from manufacturing comes from coal and the report said little progress has been made in reducing that energy input during the past year.

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News

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

Banks’ pressure builds on farmers Hugh Stringleman hugh.stringleman@globalhq.co.nz THE number of farmers feeling under pressure from their banks has risen from 16% to 23% in the latest six-monthly Federated Farmers banking survey. While most farmers continue to report they are very satisfied or satisfied with their bank the proportion in those categories has fallen from 71% to 68%, the federation’s economics and commerce spokesman Andrew Hoggard, says. The loss of confidence is not surprising given banks are reportedly getting tougher and changing borrowing conditions. They want to contain or even reduce their exposure to agriculture in advance of the Reserve Bank’s proposal on bank capital, due out on Thursday. Examples of changed conditions putting farmers under pressure include new or increased margins, shifting from fixed to floating interest rates or vice versa, selling assets to repay

debt, requiring principal as well as interest to be paid and more information or security being required. The arable industry has the highest percentage of farmers feeling under pressure at 30% and also has the lowest percentage feeling very satisfied or satisfied at 60% though it also has the highest proportion feeling neutral. Hoggard suggests that might be a result of poor to average recent harvests, competition from cheaper, imported grain and lumpy incomes inherent in the industry requiring larger, longer overdrafts. In contrast, sharemilkers have above-average satisfaction levels and that might be related to lower interest rates. The survey established the average interest rate paid across all 1300 respondents and all farm types reduced 0.4% to 4.6% between May and November. Sharemilkers are only a little higher at 4.8%, down from 5.3%. “So, it would appear that banks have passed on cuts to the official

cash rate but this will also be a reflection of farmers who have refixed at lower rates after a few years at higher fixed rates,” Hoggard said. Term loans and overdrafts are held by 81% of farmers and 19% have no mortgage. The average overdraft is $214,000, down $10,000 from the May survey. The average all-farm mortgage amount increased modestly over the past six months from $3.75 million to $3.83m. That was driven by non-dairy farms, whose average mortgage increased by $360,000. As a trend, dairy farms continue to hold the largest mortgages by a factor of two compared to meat and wool farms and a factor of four compared with sharemilkers. While the average dairy farm mortgage is $4.7m the median is $3.16m. That means most farms have lower mortgage amounts in general and the average is increased by a few outliers with substantial mortgages.

BACKING OFF: Banks want to contain or even reduce their exposure to agriculture, Federated Farmers economics and commerce spokesman Andrew Hoggard says.

The arable farm average mortgage went up from $2.8m to $4m but that was explained by the survey organisers as being because of the small sample size of 56 out of 1306. ANZ is the banker for a third of the survey farms with mortgages

followed by Rabobank at 21%, BNZ at 19%, ASB 14% and Westpac 10%.

MORE: WATCH ON DEBT RESERVE BANK

P22 P23

Farmers lead confidence charge despite regulation concerns BUSINESSES haven’t exactly snapped out of their gloom but are feeling better than they’ve been all year with farmers and retailers leading the charge, ANZ Bank’s latest survey shows. It found 26% of businesses still expect conditions to deteriorate in the next year but that’s a good deal better than previous readings of 42% negative in October and 54% in September. “While still not a great level this is the highest read in 2019,” ANZ New Zealand chief economist Sharon Zollner said. Now 13% expecting their businesses will fare better over

the coming year. That was also the strongest reading this year. In the agricultural sector 26% expect better times, the highest level since September 2017 and the highest economy-wide. “Although changes to water regulation are causing concern the combination of a weaker dollar, stronger meat and dairy prices and an Emissions Trading Scheme lifeline have seen a sharp rise in sentiment,” Zollner said. Despite the rising optimism in agriculture, it’s the only sector with a negative read on investment intentions – 11% intend to invest less.

The improvement is also despite 60% expecting higher costs and respondents were split on whether their profitability will rise or fall. Last month 27% were expected profit to worsen. But 19% in agriculture expect to export more. “The combination of a weaker NZ dollar and higher commodity prices is a rare but powerful one that is providing a valuable offset to other sources of uncertainty,” Zollner said. In the regions Auckland is more downbeat than the rest of the country while Wellington is the

most optimistic of the three main centres. The North Island is more positive than the South. Zollner said the significant falls in both the currency and interest rates are working their way through the economy and the remarkable resilience of NZ’s commodity prices is providing an invaluable buffer to the world’s woes.” Nevertheless, headwinds persist, including credit availability, capacity constraints, elevated costs, high household debt and the awkward fact that our biggest trading partners

appear to be in a spot of macroeconomic bother. But she sees no reason for the NZ economy to sink into recession. “The terms of trade are excellent – even if we’re riding our luck to some extent – there’s no sign of drought, touch wood, household real income growth is solid and unemployment low. “The global economy absolutely could still throw a curveball in our direction but it appears that the vibe is changing to getting on with it.” – BusinessDesk

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Industry warily positive on grazing Richard Rennie richard.rennie@globalhq.co.nz DESPITE some reservations about Winter Grazing Taskforce recommendations on how stock is to be managed during winter grazing the dairy and red meat sectors largely accept its findings. Prompted by rising concern over the impact of intensive winter grazing on the environment and animal welfare, the taskforce has delivered 11 recommendations. But there are two areas the industry is most concerned about, DairyNZ strategy and investment leader Dr Jenny Jago said. The first relates to the recommendation animals always be able to lie comfortably on a soft, dry substrate for as long as they want. The second is animals on fodder beet and other crops having access to an adequately balanced diet, including appropriate supplementary feed that keeps them warm and does not cause malnutrition or metabolic problems. “The one about lying down is a huge challenge to action in any outdoor farming situation and there is a need there to ensure it is a practical recommendation farmers can carry through on.” The requirement for a balanced diet is something requiring further clarification on what exactly that is. “Overall, they are the main points affecting farmers most directly. Generally, this is a pretty constructive document and will have the support of farmers to work on.” The other recommendations coming focus strongly on research, extension and seeking pan-industry support to help farmers meet the inherent animal welfare implications the taskforce wants to enforce. It also laid out some absolutes on winter grazing that include animals never giving birth on mud, avoiding deaths in adverse

The one about lying down is a huge challenge to action in any outdoor farming situation and there is a need there to ensure it is a practical recommendation farmers can carry through on. Dr Jenny Jago DairyNZ

STAY DRY: Dr Jenny Jago questions how practical one of the Winter Grazing Taskforce’s key recommendations is.

weather and avoiding mass mortality in winter grazing systems. The recommendations are likely to result in animal welfare considerations being incorporated into farm plans. While acknowledging farmers seek clear goalposts to aim for in such issues, the taskforce cautioned societal expectations will change over time so welfare standards need to constantly lift. Jago said there are also strong market drivers for improving winter grazing. “I think people are realising that it is more and more important to demonstrate good, proactive action. It has been an area that needs attention.” It could be tempting for farmers in areas like Waikato and Taranaki to dismiss policy around winter grazing practices as one for farmers in the South Island. But the taskforce report is

a good time for all farmers to consider their winter grazing policies. “One of the things they can do right now with winter crops in the ground is to form a plan for next winter about how best to manage their grazing.” A good winter grazing plan might not only address welfare concerns but also deal better with environmental issues arising from some intensive grazing policies. She welcomed the report’s acknowledgement that simply building facilities to hold stock is not necessarily the best solution. “It acknowledges most farmers will be able to manage the issue within their farm system. It is all about how you set up your winter crops and paddocks.” The taskforce has some tight timeframes set up for discussion on the report and considers an action group similar to the Bobby Calf Action Group as one means to

accelerate welfare improvements. A recommended timeline is the action group be established immediately by the Primary Industries Ministry, reporting back to Agriculture Minister Damien O’Connor by February. The taskforce expects farmers to have tools and knowledge required to meet welfare needs and the Government to better understand the issue by next winter. By winter of 2021 specific winter grazing compliance regulations will be in place. Beef + Lamb senior biosecurity and animal welfare adviser Will Halliday said it is important the recommendations are practical and workable for farmers. “Animals are at the heart of all farming systems and our farmers work hard to balance animals, environment and business performance within a biological and outdoor system where guarantees and absolutes are difficult.”

MORE:

Read the taskforce report https://www.agriculture.govt. nz/dmsdocument/38210-wintergrazing-taskforce-final-report-withappendices-included-pdf

Hail costs mount up Annette Scott annette.scott@globalhq.co.nz HAIL-HIT Canterbury farmers face losses of millions of dollars following the November 20 storm. FMG claims national manager Emma Town said the company has pulled out all stops to progress crop-related claims as quickly as possible. “We are working really hard to progress claims and support our clients and the community so they can get back on track.” Almost all claims are now with specialist assessors. They are from wheat and arable growers and fruit orchardists. So far 59 United WheatgrowersNZ claims have been lodged from farmers from Timaru to Rangiora. A further 38 claims have been lodged by farmers in Mid and central Canterbury for other hail-damaged arable crops including peas, linseed, barley, radish and other vegetable seed crops. Further north fruit crops also fell victim to the hail storm with 132 claims from fruit blocks in the top of the South, particularly around Motueka and Riwaka. Mid Canterbury Federated Farmers president David Clark said hail can be very cruel. “We can have devastation on one side of the boundary fence and nothing on the other side – that’s one of the cruel parts of hail on arable and fruit crops.” Hail stones, some as big as golf balls, pummelled the district. “It’s been devastating and extremely disappointing for those farmers who have been hit.” It was been fortunate the weather has been warm and dry since, limiting the risk of disease and fungal problems brought on by crop damage but farmers need to be vigilant.”

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News

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

11

Forecasters up in air on the southern dry Richard Rennie richard.rennie@globalhq.co.nz TWO leading weather forecasting agencies agree the eastern North Island can expect to be warmer and drier this year but the jury remains out on just how much drier the eastern South Island will be in coming months. Niwa released its seasonal climate outlook in late October while Weather Watch has also entered the longer-term prediction business with its first seasonal forecast extending over the summer. Weather Watch founder Philip Duncan cautions the business of longer-term weather prediction is not a perfect science and the company hopes to build on its prediction capability and accuracy over time. However, he predicts drier-than-average conditions extending the length of the North Island’s east coast as far inland as eastern Waikato and accompanied by warmer-than-usual temperatures. It is a pattern already firmly established in recent days with areas including southern Hawke’s Bay, Wairarapa and central Northland already experiencing low rainfall and well below average soil moisture. Taranaki and southern Wairarapa are expected to be the only areas cooler and wetter than average in the North Island this summer. With Australia’s drought in play the upper North Island is becoming locked into the high-pressure systems from there affecting rainfall here and increasing warmer airflows over the country’s top half. Duncan acknowledges there is something of a question mark over the eastern South Island with average to slightly above-average rainfall forecast but highly dependent on the angle of wind over coming months. “A slight shift to a little more westerly means Canterbury may also be looking at a warmer and drier-than-normal summer.” The West Coast is likely to be wetter than normal with Southland and Otago leaning towards an average rainfall summer. Niwa tips a 75% chance of average to belowaverage rainfall for the eastern North Island. But the state-owned climate researcher puts

rainfall odds for both the eastern and western South Island at 75% likely to be in the near to above-normal range. It also predicts heavy rain in the South Island and western North Island in the first half of summer with an above average risk of flooding. In picking winners and losers from this summer’s predictions Duncan said it is concerning news for dairy farmers in the upper half of the North Island and windy weather might linger into January for some regions, particularly in the lower South Island.

DRYISH: Niwa forecasters and Philip Duncan agree on the likelihood of a dry summer for the North Island’s east coast.

Tagging your animals is only half the job ...

Kiwis win dog trials test series NEW Zealand has comfortably retained the Wayleggo Cup in sheep dog trials in a two-test series against Australian handlers and their dogs at the Tasman A&P Show in Nelson. The aggregate points over eight runs by each team were 682.75 for NZ and 602.25 for Australia. In the first test NZ got 354.5 points and Australia only 244.25, not helped by Michael Grant and Fleetwood Dot not scoring. The Wayleggo course is a composite of NZ and Australian heading dog trials such as straight line walking, a bridge and a final pen, jointly judged by a Kiwi and an Australian. The venue alternates each year between NZ and Australia and NZ has now won six events consecutively. The Australian team came back strongly on the second day, out-scoring NZ 358 points to 328.25. For the NZ team the honours were shared with Guy Peacock and Chief gaining the highest singlerun points of 95.75 on the first day followed by Andy Clark and Girl on the second day with 91.5, Neville Child and Harry 91 and Stuart Child and Brodie 87.25. Grant Cooke and Grassvalley Sky top-scored over the two days with 96 points and the combination had 86.25 in the first test so disastrous for the Australian team’s chances.

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News

12 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Overseas forest sales double Neal Wallace neal.wallace@globalhq.co.nz FORESTRY sales to foreigners have doubled in area in the first nine months of this year. Overseas Investment Office figures show the Government approved twice as many sales of freehold land than for the corresponding period last year; 71 transactions covering 18,426ha compared to 37 sales of 9633ha. Forestry dominates sales with two purchases of 4273ha and 1876ha by Kauri Forestry in Wairarapa and Northland, respectively, the two largest deals by area. Veronika Leeb-Goess-Saurau’s purchase of 1727ha in Wairarapa was the third largest. Changes to the Overseas Investment Act announced by Associate Finance Minister David Parker last month do not target the contentious issue of foreign investment in forestry. “These changes were not considered as part of the current review of the Act,” a Treasury spokesman said. “However, their impact will be examined in a statutory review which must commence by October 2020.”

TOUGHER: Breaches of the Overseas Investment Act will now attract fines up to $10 million instead of $300,000 for corporate offenders, Environment Minister David Parker says.

Parker last month announced changes to the Act that impose a new national interest test for sales of sensitive and high-risk assets such as ports, airports, telecommunications, electricity

and critical infrastructure to overseas buyers. After the last election Parker issued a ministerial directive to the OIO that added extra requirements on sales of farmland

to foreign buyers and last month’s announcement said they will now be embedded in the Act. “Provisions of an existing ministerial directive will be written into the Act, which requires overseas investments in farmland to show substantial benefit to New Zealand by adding something substantially new or creating additional value to our economy,” Parker said. By embedding the requirements into the Act a future government will require Parliament’s consent to make any changes. Parker also took aim at foreign investors in water bottling, now requiring consideration of the impact on water quality and the sustainability of a water bottling enterprise when assessing an investment in sensitive land. Parker’s changes also include greater enforcement powers with the maximum fixed penalties rising from $300,000 to $10 million for corporates. Labour, NZ First and the Greens all campaigned for greater restrictions on the sale of farmland and urban housing to foreigners but in October 2018 the coalition Government streamlined the consent process for overseas

companies wanting to invest in forestry. That recognised the role overseas investment has in the sector but has angered rural communities that say farmland being planted in forestry guts regions of jobs and services.

Provisions of an existing ministerial directive will be written into the Act, which requires overseas investments in farmland to show substantial benefit to New Zealand.

Overall, there has been a significant increase in the number and value of overseas purchases approved by the OIO so far this year. It approved 104 transactions with a net investment value of $3.5 billion from January to September compared to 69 worth $2.4b for the corresponding period a year earlier.


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News

14 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Turning challenge into opportunity Colin Williscroft colin.williscroft@globalhq.co.nz THE agriculture sector needs to work together to turn disruption into opportunity, Rangitikei farming couple Laura and Richard Morrison say. They gave a presentation on farmer perspectives on innovation and disruption at the Rural Innovation Lab’s muster in Palmerston North. A pan-sector approach has been a long time coming, Laura Morrison said. “I believe we should be working out where wheels have already been invented and getting in touch. And that is starting to happen more and more. Even pan-industry and international comparisons are starting to come into play.” Farmers need to hold the usual suspects to account when they’re peddling the same old messaging.

“And we need to push for change if we are not enjoying the status quo. “Where I believe we need help to maximise industry buy-in across new technologies is in the how and that’s where new agtech and innovation is key.” But the way agtech is marketed to farmers might not be as effective as it could be. “What, as a farmer, do I want from researchers and academics and techies and innovators and marketers and bigwigs who have platforms, power and profit to help me produce more food? “To be the farmer that performs optimally because, let’s be honest, an increased bottom line will be a driving factor behind adoption of new tech, our needs are simple – will my animals be okay with these changes, will my land be okay with these changes, will I be

SHOW ME THE MONEY: An increased bottom line will be a driving factor behind adoption of new tech, Laura Morrison says.

FUTURE THINKING: Laura and Richard Morrison gave a farmer perspective on innovation and disruption at the Rural Innovation Lab muster in Palmerston North.

able to drive ongoing profit and will this make my life easier? Will this make my life better?” Top 10% farm owners need to be nimble and pro-active, she said. They need to know what their contingency is and recognise triple bottom line advantage. They must believe in their why and keep assessing it, know their expertise limitations and outsource where necessary. Morrison said the word confrontation is easily and wrongly used in place of robust discussion, which drives her bananas and costs farming businesses dearly in terms of opportunity to increase bottom lines. “How many opportunities do we miss out on because at a time when we’re merely being challenged or an alternative opinion has been offered we react and respond as if we are being confronted? “It’s scary or too much admin and no thanks, I’ll stick to what I’m doing, avoid the discussion, bury my head in the sand and

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continue on the same averageperforming trajectory because I don’t like confrontation.

How many opportunities do we miss out on because at a time when we’re merely being challenged or an alternative opinion has been offered we react and respond as if we are being confronted? Laura Morrison Farmer “If we change the way we communicate we will find confidence in our farming practices, be driven to innovate and feel comfortable in adopting new tech sooner. We might even start snowballing on the disruptive front.

“Farmers need to feel okay about asking and answering questions. Curiosity will not kill the cat. It will keep the cream in our profits.” Farmers need to be okay about pushing back because some farmers are ahead of disruption or at least in the thick of disrupting. “Some of us are embracing change. Some of us have always done what’s now being asked of everyone in our industry.” Though she wants to see the pistols at dawn banter between millennials and boomers flipped to provide opportunity for dynamic business operations and an increase in diversification in businesses the developers and marketers should channel the tension that exists. “Those who push boundaries, drive change and cause disruption should focus on a farming trait that you’ll find from the top performers through to the masses – competitiveness. Farmers are overtly or quietly competitive even if it’s just with themselves, their own numbers, their own performance year on year.”

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News

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

15

Fonterra farmers lock in over $7 Hugh Stringleman hugh.stringleman@globalhq.co.nz NEARLY 1000 Fonterra farmers have fixed the price of some of this season’s milk production at values up to the most recent $7.28/kg milksolids net. They have participated in the inaugural season of Fonterra’s fixed milk price scheme during one or more of the six price offers so far. There will be one further opportunity, beginning Monday December 9, to finish the sevenmonth programme for this season. Fonterra has made six consecutive monthly offerings of 15 million kilos from June to November and farmers have taken up a total of 59m kilos out of the total 90m offered. Only in August did the application total of 19.4m exceed the offered amount so all applications were scaled back to 77%. The first five fixed prices were in the range of $6.60-$6.80 net, followed by the November boost of 48c to $7.28, at which 226 applications locked in just under 10m kilos. The offer price is derived from

an average of the daily settlement price of the NZX milk price futures contract for three days following the first GDT auction of the month. That offer price is advised to all Fonterra farmers on a Saturday morning and they have Monday and Tuesday to make applications.

Farmers have taken up a total of 59m kilos out of the total 90m offered.

The offer price contains 10c/kg service fee. Should the December offer generate a similar uptake Fonterra will have locked in payment for about 65-70m kilos or 4% of its anticipated total supply. The company says it benefits from knowing the fixed supply price, against which it can make forward contracts of ingredients to overseas customers. Farmers have secured a guaranteed $450-$490m of

payout, distributed according to the normal monthly advance schedule. Fonterra’s latest farmgate milk price forecast for the 2020 season is $6.55 to $7.55/kg, with a midpoint of $7.05 on which the payment schedule is based. Should the fixed milk price be below the final payout, monthly retro payments to the farmers for the contracted quantities will cease when the fixed price level is reached. The distribution of farmers using the fixed price offers has disclosed some interesting facts and figures. Firstly, farmers appear to have taken small bites rather than apply for their limit of 50% of annual production in one go. Secondly, the first three monthly total allocations were in the range 11-15m kilos while the second three months were 7-10m kilos, suggesting that as the season progressed farmers had less of their 50% allowance with which to fix. Thirdly, smaller farms have made up more than half of all applications with more than 900 of the total 1500 applications being from farms under 200,000kg annual estimated production.

Fixed Milk Price December $??.?? November $7.38 October $6.90 September $6.76 August $6.80 July $6.81 June $6.75

Fonterra said the FMP scheme was designed to be easy to use, via the Farm Source website, and while it does have a service fee, it doesn’t require a margin account. Fourthly, over half of the successful farms committed more than a third of their production, indicating their approval of the scheme.

That occurred in the first year of operation during which GDT prices have increased steadily and the prospects for the farmgate milk price have been improving and are historically high. The split of the 995 farms was: below 10%, 57 farms; 10-20%, 160 farms; 20-30%, 222 farms; 30-39%, 150 farms; over 40%, 406 farms. Fifthly, nearly 90% of applicant farms took up offers in the first two months, June and July, suggesting fixed prices are more attractive in the more uncertain early season. The over-application in August also suggests some nervousness among Fonterra farmers when the application period coincided with the company’s announcements of more than $800m of writedowns and no dividend for 2019. Sixthly, half of all kilograms allocated to fixed price contracts are to South Island farms, Canterbury, Tasman and Marlborough farms taking 20m kilos in total. The NZX milk price futures market is showing prices about $7.44 for September 2020 contracts, having climbed steadily up from $6.55 over the past three months.

New leaders course for women expands A NEW leadership programme being offered nationwide next year aims to support women who want to take their industry leadership to the next level. The Next Level programme has been developed for primary sector women to lead and contribute in their industries, businesses and communities. Researched, designed and

delivered by the Agri Women’s Development Trust, the sixmonth programme will support women to create positive change. The programme was initially delivered in Hamilton this year to women from diverse farming and corporate backgrounds. Next year it will be extended to Palmerston North and Christchurch in March with potential to add a third programme.

Drawing on the trust founder Lindy Nelson’s nine years of research and work with more than 4000 women, Next Level empowers women to understand their leadership why, set their direction and map a path to reach their goals. Trust general manager Lisa Sims said the new offering fills a gap in the pipeline of development programmes enabling more women to access sought-after leadership

development and support. “As women aim to play bigger in creating positive social, economic and environmental change in their primary sector careers and communities they are looking for ways to step up and to find non-traditional pathways to achieve this,” Sims said. Taking a strengths-based approach the programme has an innovative mix of face-to-face group interaction, individual

online learning options and executive coaching. Learning is condensed with minimal time spent away from home. “This approach puts the learner in control in a way that meets their individual needs and aspirations while drawing from and supporting a like-minded group of women.” Each course is limited to 15 women and entry is by registration at www.awdt.org.nz.

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News

16 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Synlait to optimise investment Tim Fulton timfulton050@gmail.com SYNLAIT Milk has topped $1 billion revenue for the first time and plans to double the figure within five years. The publicly-listed milk firm says one of its priorities is finding milk, customers and acceptable margins to match its investment. Shareholders at the annual general meeting in Christchurch asked about risks, like the impact of a Supreme Court ruling on the status of a land covenant on part of its new plant at Pokeno, south of Auckland. A quarter of Synlait’s property is contested in the legal challenge by its neighbour. At a hearing in April Synlait will ask the court to overturn a Court of Appeal finding the covenant restriction on industrial land-use should stand. Synlait chairman Graeme Milne agreed with a shareholder’s suggestion the land is critical to the effectiveness of the plant but Synlait is quite confident it will work through the case without significant impact to the company. Meantime, the board and management continue to increase profit while spending more on the business as it enters its second decade of milk processing. Net profit rose by more than 10% in the latest financial year to more than $80m as Synlait rode a 39% rise in operating cashflow to about $137m. Sales lifted by 16% to just under 150 million tonnes. Milne said it is at the end of a second major growth phase with significant investment in people and capital. Staff numbers went from 682 at the start of the financial year to 900. Another 120 have joined since and the number will keep rising. The Dunsandel plant in central Canterbury is by far the biggest employer. Pokeno has just 70 staff, processing, marketing and shipping milk products from 56 farmers. Yet Synlait did not have any new customers to announce. It is going to market with a bond issue to raise capital to pay for continued expansion.

During the year Synlait bought Talbot Forest Cheese for a reported $30-$40m and postbalance date it paid $120m for larger cheesemaker DairyWorks, which has big but unheralded supermarket supply contracts. The acquisitions of the two Canterbury firms show how the company is diversifying and making good use of increasing plant capacity and growing liquid milk supply, reducing costly operational downtime. It is important for the company to optimise its investment in new plant as it seeks new customers. It is dedicated to infant formula, particularly in its big market in China, but also recognises Chinese regulators can and do restrict sales of foreign-produced formula. China has not registered two of Synlait’s infant formula brands meant for China, Pure Canterbury and Akara. The products, which are sold in New Zealand, are made for Bright Dairy, a subsidiary of Synlait’s 39% shareholder, Bright Foods. Separately, Synlait had problems with commissioning its advanced liquid processing plant at Pokeno. It made a $3.5m loss because of the problem and will work to stabilise performance and bring it back into line, Milne said. Chief executive Leon Clement said any business has challenges but it’s how they deal with them that matters. The replacement for founding chief executive, now-director, John Penno, Clement implemented a Heart, Head and Hands strategy based on goals including $2b revenue within five years and focusing on new categories like sports drinks. As part of eight strategic priorities Synlait will also investigate disruptive forces in the business, he said. Adding supply, customers and increasing return on investment is one of the key priorities. “Synlait has always been a capital-intensive business. We’ve needed stainless steel to be able to make money for our shareholders.”

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From the moment it stopped being a farmer and decided to process its own milk the company has worked on de-risking the business. As the owner of powder dryers, for example, it found ways to create extra value from commodities. Now it is doing similar with a new liquid milk plant. “By establishing a contract with Foodstuffs South Island up front you’ve got an anchor tenant that underwrites the base cost but your strong returns don’t come until you find those incremental customers and markets that you’re going to pursue.” As a privately-owned company, rather than a co-op, one of Synlait’s main checks on investment is constraints in its banking covenants and making sure its balance sheet is in good health, Clement said. It also has to ensure its net debtebitda ratio gives it capacity to keep investing. “So, what sort of debt are we holding, relative to the profits that we’re making and how can we fund that growth. “Yes, it comes with risk but if you can mitigate the downside and secure the baseline of what you can fill it with and then transfer high value, that’s where Synlait’s unique approach delivers good returns.”

The nitty gritty Synlait’s financial results for the year ended July 31: • Revenue exceeded $1 billion for the first time, increasing 17% to $1.0243b • Net profit increased 10% to $82.2m • Operating cashflow increased 39% to $136.7m • Sales volumes increased 21,087 tonnes or 16% to 149,709t • Consumer packaged infant formula sales up 21% to 42,907 MT • Average milk price of $6.58/ kg MS for the 2018-19 season, made up of a base milk price of $6.40 and an additional $0.18 in incentive payments

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STILL GROWING: Now Synlait has topped $1 billion in revenue it plans to hit $2b in five years, chief executive Leon Clement says.

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18 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Farming meets forestry over flora and fauna

HOLDING HANDS: Federated Farmers environment spokesman Chris Allen says the federation and Forest and Bird largely agree on New Zealand’s biodiversity policy.

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TWENTY years and three attempts later a national policy statement (NPS) on indigenous biodiversity appears to be making its first collaborative steps towards a successful outcome. The Government has released its proposed policy and a discussion document for consultation. Submissions are now open. Perhaps surprisingly, the latest attempt at a policy has Forest and Bird and Federated Farmers working together after two years of collaboration. It is an effort both groups have described as a breakthrough in co-operation between parties often at opposing ends at the starting point for such issues. The two groups were part of the Biodiversity Collaborative Group that included mining, environmental, forestry, farming and iwi groups. Federated Farmers environment spokesman Chris Allen said Forest and Bird and the federation have taken the policy as far as they can and it is now time for New Zealanders to comment on the latest version. He said the Government gave a mandate to the collaborative group to develop the entire policy framework, something that is quite unusual. “We were told if we could agree on the terms of reference the minister would back a collaborative process to form the NPS framework and we met over almost two years in this process.” The latest iteration of the policy has some relatively minor adjustments from the Government in it, including some changes about mining and pasture conversion. Broadly, the policy aims to hold the line on the significant biodiversity breakdown NZ has experienced in the past century. It aims to preserve the size of existing indigenous species populations and the function of ecosystems and provide connection and buffering around ecosystems and ensure resilience of ecosystems. Councils are also required to consistently identify areas with significant vegetation and habitats of indigenous fauna, managing their protection through regional and district plans. Allen said a policy is critical given that for the past 20 years there has been no guidance on how councils should manage biodiversity issues. It will also help address the conundrum facing farmers who can find sometimes it is unlucky, rather than lucky, to have biodiversity on their property. “The wider community needs to help to take some of that pressure off individuals to help them manage that biodiversity. That flavour comes through in this NPS.” Forest and Bird collaborative group representative Jen Miller said having some of the most reliably divergent stakeholders agree on a starting point for protecting native wildlife on private and public land is a huge leap forward for NZ. Consultation on the NPS is open until early March.


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

19

Big deal to benefit wool growers Hugh Stringleman hugh.stringleman@globalhq.co.nz ONE of the largest single New Zealand wool partnerships of modern times has been signed between the multinational clothing and footwear company VF Corporation and New Zealand Merino. The deal is estimated to be worth more than $250 million to fine wool growers over the next five years. VF, which has the Icebreaker, North Face, Smartwool and Timberland brands among others, has committed to using only ZQ certified wool. NZ Merino chief executive John Brakenridge said long-term contracts will be offered to ZQ farmers, including three-year contracts for Smartwool supplies and 10 years for Icebreaker. Farmers can then breed sheep and practice their farm management with confidence and produce fit-for-purpose fibre. “This sends a strong message to produce higher volumes of fine and sustainable wool and also encourages those considering a shift to finer microns,” he said. The agreement comes at a

FINE RESULT: Longterm contracts as a result of New Zealand Merino’s deal with VF Corporation are a clear message farmers will be rewarded for sustainability leadership, NZ Merino chief executive John Brakenridge says.

time when farmers are under increased pressure to demonstrate to the world their environmental practices. “This is a clear signal from

the market that farmers will be recognised for their leadership in sustainability.” Brakenridge said the aggregation of brands like Icebreaker

into VF Corporation does not pose any extra risk for wool growers as the large corporation has strong, compatible values and commitments.

This is a clear signal from the market that farmers will be recognised for their leadership in sustainability.

VF Corporation global procurement vice-president Tom Conneen said his company and NZM are working on a range of projects that will help inform future practices and verify sustainable Merino wool production. “Globally, we want to power movements of sustainable and active lifestyles for the betterment of people and our planet.” VF has established and funded a scholarship in wool handling to begin next year. Managed by Elite Shearing, the 12-month shearing and wool handling cadetship will be available for 10 trainees participating in the Shearing Contractors Association training programme.

Cavalier expects first-half loss as sales slide CAVALIER Corporation expects to post a first-half net loss on top of the $16.8 million net loss it reported for the year ended June. “The challenging trading conditions noted early in 2019 are continuing and sales, particularly of low-margin synthetic carpets, continue to be affected with volumes down by approximately 10% year-onyear,” chief executive Paul Alston told the annual shareholders’ meeting. The company is forecasting a

bottom-line loss of $1.1-$1.6m for the six months ending December, with earnings before interest, tax, depreciation and amortisation of $1.2-1.9m, down from $4.6m in the corresponding six months last year. The actual outcome will be worse than it looks since the change in the lease accounting standard will boost ebitda by about $1m. Ebitda will also be after about $800,000 in business development costs – Alston says

the company is transitioning to a design-led, wool-focused business. Sales are expected to be down about 10% to $61-$64m from $70m in the corresponding six months last year. “Anecdotal feedback is that other suppliers are also experiencing the same challenges,” Alston said. “Demand for Cavalier’s premium wool carpets continues to grow and whilst these are a small part of total sales they

provide a significant contribution to group profits. “While our performance in today’s more challenging market is disappointing it further enforces our need to transform our business and focus on our areas of strength, particularly premium wool flooring, which provides better margins and growth opportunities.” Cavalier shares fell 6.9% to 27 cents, taking their 12-month decline to 55%. – BusinessDesk

BAD BUSINESSS: Cavalier is predicting another loss as low-margin synthetic carpet sales continue to be challenging, chief executive Paul Alston says.

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

21

Bugs hit Zespri crop in Europe Richard Rennie richard.rennie@globalhq.co.nz DESPITE the swirl of biosecurity threats Zespri growers in Europe have managed to deliver similar crop volumes to last year, helping meet the marketers’ 12-month supply needs. With the northern hemisphere harvest well under way estimates are 19 million trays of Zespri fruit will be harvested from European growers, largely in Italy. But the volumes are under a burgeoning threat from brown marmorated stink bugs, Psa and a recently discovered fungal infection thought to be related to phytophora rot. Most Zespri fruit comes from Italy with about 2800ha and 150 growers. Plans are for European production to continue ramping up by about 400ha of new orchards a year taking the total area to 5000ha by 2024. New Zealand’s total kiwifruit area comprises 14,200ha with 80% of it in Bay of Plenty. Zespri’s innovation leader and biosecurity expert Dr Elaine Gould said the stink bug is of particular concern given how well it is established in other fruiting crops in northern Italy. While kiwifruit is not necessarily the bug’s first choice it is often the first fruit available when the bug emerges after winter. “There have been fruit losses

BUGGED: Zespri biosecurity expert Dr Elaine Gould says stink bug is a major threat to its Italian kiwifruit crops.

of 20-30% recorded so it is enough to be a big concern to growers.” The kiwifruit-growing region of Emilia Romagna has been hit particularly hard, with growers now having to use drop netting around their orchards to try to keep the bug out because insecticide sprays are not wholly effective.

The bug has already laid waste to Italy’s €300 million pear crop and is knocking on the door of its vast apple industry in the nearby region of Trento. Zespri has contributed to research to better understand the bug’s lifecycle and control options that include pheromone traps, working alongside NZ researchers and Bologna University.

Work is also being done in the bug’s native China, where it is known to have had a big impact on kiwifruit. Kiwi scientists based in Italy for the summer months have been working closely with their Italian counterparts on various traps and technology to try to better control the bugs. They include pheromones and an emerging science of biotremology that broadcasts the mating call of the bug, drawing others into traps. Bug detections in NZ have been scattered but authorities have taken a when-not-if approach to an incursion, such is its ability to survive long distances as a hitch hiker, typically on imported machinery. NZ is entering the bug’s active summer season and last year four Japanese ships were turned away when Primary Industries Ministry officials found bugs on them. Meantime, European growers and researchers are also preoccupied with another threat, Moira disease. “We are still a bit unsure exactly what it is but it seems to be related to a phytophora type fungal infection caused in part by flood irrigation of the heavier soils they have there,” Gould said. “We were concerned when we first found it and it triggered a potential biosecurity risk but we now suspect it is related to the conditions there.”

There have been fruit losses of 20-30% recorded so it is enough to be a big concern to growers. Dr Elaine Gould Zespri Zespri’s European grower network comprises about 750 families growing fruit on contract and the marketer is now sourcing about 10% of its fruit internationally to retain yearround store presence. European growers also continue to contend with Psa, identified on orchards there only one season before it was found in NZ in late 2010. “Overall, I think Psa is being well managed but France does continue to seem to have a particular problem with it. In Italy a lot of plastic covering is used to keep it out. Growers in general are living with it and there has been a lot of investment and extension around it.” Zespri also recently announced the discovery of almost 2500ha of illegally grown SunGold kiwifruit in China and is working closely with Chinese authorities in an effort to identify and prosecute the offenders.

M bovis search seeks patterns in disease spread Annette Scott annette.scott@globalhq.co.nz INTERNATIONAL science experts have been appointed to work on the Mycoplasma bovis programme in an attempt to more quickly identify infected farms. Global epidemiology consulting company Ausvet and New Zealand’s Working Formula have been appointed to do research to help accelerate eradication. They specialise in finding

disease patterns in populations that will enable the M bovis programme to more effectively prioritise follow-up casing of high-risk properties. “This knowledge will help us understand the risk of spread from different properties at different times,” the Primary Industries Ministry’s chief science adviser and M bovis Strategic Science Advisory Group chairman Dr John Roche said. Farms potentially infected

with M bovis are prioritised for follow-up using several criteria. “Ausvet and WF will investigate if there is anything we can do to improve the current criteria to more effectively prioritise farms at high risk of infection for urgent follow-up. “It’s more critical to apply movement controls on high-risk farms than other properties. “If these farms can be identified and actioned more quickly it will slow the spread of the disease

and speed up eradication.” It will be a short-term research project based on analysis of existing data. Ausvet has also been contracted to review the M bovis surveillance strategy. “This will identify any areas for development and improvement focused on how to improve our confidence that M bovis is absent from NZ in the future,” Roche said. The company will also train epidemiologists so they can

analyse the strategy as needed. Roche said the ongoing background surveillance of the different cattle sectors is a vital component of NZ’s eradication effort. There will be ongoing surveillance for at least seven years following identification of the last known infected property. “An effective surveillance programme is what will provide assurance that M bovis is absent from NZ,” Roche said.

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22 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Debt relief is unlikely A SIGNIFICANT share of dairy loans are being closely monitored by banks despite above-average commodity prices and reasonable profitability across the sector, the Reserve Bank says in its latest financial stability report. And farmers under stress are unlikely to experience any cut in finance costs despite the significant fall in interest rates this year with the official cash rate falling from 1.75% to 1%. While non-performing dairy loans have risen significantly during the past five years and particularly more recently, the RBNZ said it understands the latest rise is driven largely by the reclassification by some banks rather than a deterioration in underlying loan performance. Nevertheless, the trend warrants ongoing monitoring because the loans reflect significant pockets of financial stress. The dairy sector has a high debt-to-income ratio of 350% with the debt highly concentrated.

About 30% of it is held by farms with debt of more than $35 a kilo of milksolids. Bank lending to the dairy sector shrank 0.9% in the year ended September, reflecting both banks’ reduced appetite to lend to the sector and a decline in demand for new loans. Banks expect to tighten credit availability further over the next six months, reflecting a desire to diversify their agricultural exposures and a re-evaluation of lending portfolios to manage the transition to higher capital levels, the regulator said. RBNZ will announce its final decision on bank capital on Thursday but has proposed lifting the minimum equity level for the four major Australian-owned banks from 8.5% to 16% and to 15% for the smaller banks. “In particular, banks may seek to reduce the availability of standby facilities that carry ongoing capital requirements irrespective of any drawdowns

YOU’RE BEING WATCHED: As well as dairy loans the Reserve Banks is closely monitoring lending to the horticulture sector, which increased 18% in the year to September 30. Photo: Paul Sutherland Photography

and raise interest rates on riskier loans,” it said. While low interest rates should help dairy farmers to pay down debt a number of banks want to increase their margins by imposing fees for the provision of various facilities to farmers and by repricing higher-risk borrowers. “This means the most financially vulnerable farms are unlikely to see significant relief in their financing costs.” RBNZ notes the historically low level of farm sales, meaning farmers can’t easily sell land to repay debt.

The central bank is encouraging banks to work constructively with farmers wherever possible but acknowledges the profile of dairy debt reflects a degree of poor decision-making by borrowers and lenders. Nevertheless, banks shouldn’t be overly cautious in implementing new lending policies. “Lending always entails a degree of risk but excessive risk aversion by financial institutions when risks crystallise can introduce unnecessary procyclicality into the system and,

despite the challenges in the sector, most operations will continue to be viable investments unless payouts decrease significantly.” RBNZ singled out lending to horticulture as something to monitor carefully because of its 18% increase in the year ended September. While diversification will reduce bank exposure to shocks in a particular sector, rapid growth can be a sign of overly fast expansion. Agriculture accounts for about 14% of bank lending. – BusinessDesk

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

23

Farm borrowers will find lenders This week the Reserve Bank will finally announce the outcome of its review of minimum capital requirements for trading banks. Nigel Stirling asks who will fill the gap in the rural lending market if the banks carry out their threats to pull the rug from under farm borrowers.

Total loans

already under pressure from lenders to shop around for better deals. But what choices will farmers be left with if the banks dramatically scale back their $63b exposure to agricultural borrowers? The alarm bells were set off in September when ANZ confirmed it had been approached by foreign hedge funds interested in buying farm loans. Westpac treasurer Jim Reardon said it is hard to see how such a sale could benefit either farmers or the banks. Without a network of rural bankers the funds would struggle to manage the loans. “Vulture funds just do not have those people to bring any sort of value-added judgement to the loans they are taking on.” Reardon believes the funds would have looked for a quick exit and possible fire sales if the market turned down. “I would have not thought that was the outcome the banks would have wanted if they just wanted to get rid of a few loans they no longer see as desirable and still want to preserve the rest of their portfolio.” ANZ said it didn’t take the talks further and is committed to remaining the country’s largest rural lender. Despite that commitment its head of commercial and agri lending Mark Hiddleston had already warned farmers in April that change is coming. “We think it is prudent to help you plan to reduce your debt as much as you can, restructure your facility limits or pay down where you may have credit funds elsewhere.

“You should also think carefully about your borrowing requirements in the near future, including factoring in potential increases in borrowing costs.” Unfortunately for ANZ’s indebted farmer clients, the big banks are all in the same boat when it comes to having to dig deep for new equity. That was made worse in August when Australia’s prudential regulator cut in half the amount of capital they can allocate to foreign subsidiaries. It is hard to see any of the Aussie-owned banks increasing farm lending if it means having to fork out even more capital to do so. But what about second-tier banks and provincial stalwarts such as TSB, SBS and Heartland Bank? Could they be the salvation for farmers no longer wanted by the big Aussie banks? With its existing network of provincial branches and rural managers Heartland ticks a couple of boxes. Its capacity to fund an expansion of its rural lending business big enough to make up for any significant credit squeeze is another question, however. Heartland’s total assets of $4.13b pale into comparison to the ANZ’s nearly $18b in farm loan assets (see panel). Even 10% of those loans would seriously stretch Heartland’s balance sheet without a major slug of new capital from shareholders. TSB, with $7.9b total assets, and SBS, $4.8b, are larger in size but are owned by a community trust

NOT US: Rabobank is not looking to acquire farm debt from other banks, its New Zealand chief executive Todd Charteris says.

and their customers respectively and severely limited in their ability to raise capital for major acquisitions. Not lacking in access to capital however is the NZ arm of Dutch agribusiness giant Rabobank. In June chief executive Todd Charteris said the bank’s NZ board was in talks to tap into its parent’s €590b balance sheet as it sized up opportunities to increase its 17% share of the market. But it is not prepared to do so by lumbering itself with its rivals’ dud loans. It has picked up some customers but there has been no discussion about acquiring portfolios of loans. “This is an important market for us and if there is an opportunity to grow organically through other farmers wanting to come and bank with us we will look at all opportunities but it is not acquisition. “It is really about balancing our priorities to our existing customers and supporting them,” Charteris said. As well as the big four Australians and Rabobank there are 11 other foreign banks registered in NZ. High-profile fund manager Sam Stubbs expects more to arrive in the next six to 12 months. He says the 13-16% return on equity earned on average by NZ banks is extremely high by global standards. Even if those returns are dented slightly because of higher

capital requirements they remain extremely attractive. “We know that at 11% return on equity the foreign banks, most notably HSBC and Bank of America, are moving capacity into the Australian market. “So, if they can get 13% in NZ then it is not too short a hop across the Tasman.” And though returns from farm lending are lower Stubbs expects them to still to be too good for the global heavyweights to pass up if they can get their hands on large enough parcels of existing loans. “If you have interest rates tracking at 1% or 1.5% and a return on equity of 8% or 9% on a rural lending book then I promise you money is going to find it. “It is too lucrative for them to ignore.” Stubbs sees another home for the loans if the banks don’t want them. There will be a ready market among Kiwisaver funds for farm debt packaged up as securities. That would be achieved by a bank pooling its loans and repackaging them into bonds. Each bond would be backed by a mix of high and lowerrisk debt and would have the added attraction of being able to be traded but still have the underlying loan managed by the originating bank. “If it’s a large enough book and diversified enough it would probably be enough to be investment grade credit rated. “It would fly out the door.”

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FEAR and loathing have been in the air since a proposal for the trading banks to find up to $20 billion in new capital was floated a year ago. The Reserve Bank claims doubling existing capital reserves is needed if the banks are to survive a 1-in-200 economic meltdown and not leave taxpayers with an almighty mess to clean up. But the banks remain adamant the proposal is nothing short of economic sabotage. A report commissioned by the New Zealand Bankers Association forecast a $2.7b annual cost to the economy from higher interest rates and lower investment if the blueprint for new capital is adopted. And the costs will be disproportionately felt by small businesses and rural borrowers. Banks say they already have to set aside more capital to match the higher risk of those loans compared to mortgages on houses. Westpac chief executive David McLean in April warned lending rates will need to rise by 120 basis points to maintain the bank’s return on its farm loans and not be forced to redirect lending to lower risks. Federated Farmers estimates, replicated across the industry, that could cost farmers $800m a year in higher interest payments. But Reserve Bank governor Adrian Orr has dismissed the estimates. Orr says they are overblown and a fig leaf for banks suddenly aware they are exposed to too much rural debt. He has repeatedly told farmers


News

24 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

AgriSea boss takes women’s top award Annette Scott annette.scott@globalhq.co.nz SEAWEED products pioneer AgriSea is the 2019 supreme winner of the NZI Rural Women New Zealand Business Awards. Celebrating and showcasing entrepreneurship and innovation by rural women the annual awards take in seven categories

with the supreme winner judged from the category winners. While excited about the win AgriSea business manager Clare Bradley said it was unexpected given the high calibre of every woman in the finals. “We are often caught up in keeping our heads down, working hard to achieve our goals in our businesses, communities and families. “The awards are an opportunity for both me personally and our whanau at AgriSea to take a breather and celebrate where we’ve come from. “Thank you Rural Women NZ and NZI for this award and opportunity. It has fortified my passion and dedication for what we do every day,” Bradley said. She and her husband Tane took over the management of the business, founded in 1996 by her in-laws, five years ago. AgriSea, a Paeroa firm,

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TOP COOK: Rural Women NZ supreme business award winner AgriSea development manager Clare Bradley brews up another batch of seaweed.

pioneered the use of seaweed products, brewing and specialising in the manufacture of macro-algae concentrates and bioactive extractions to add high-value nutrition for soil, plant, animal and human health.

The awards are an opportunity to take a breather and celebrate where we’ve come from. Clare Bradley AgriSea

Seaweed contains minerals, vitamins, growth promotants, trace elements and amino acids. It is a nutrient feast, a smorgasbord for soil biology, plant and animal health. AgriSea supplies to all agribusiness sectors including horticulture, agriculture, viticulture and dairy farmers, both here and overseas. “We are developing natural

solutions for farmers to develop sustainable farming practice into the future. “The benefits are clear – growing farm by farm as farmers see the benefits.” Bradley said the business is 100% committed to research and development to prove the longterm efficacy for farmers. The secret to seaweed is simply high nutrition with AgriSea having a reputation for listening to farmers’ needs. The bee industry is a fastgrowing new sector for AgriSea with the bee products proving highly successful. All 30 staff employed in the business, run as a family operation, including the team of 15 experts on the road are considered part of the family. “We absolutely enjoy working as a family and we love what we do every day,” Bradley said. Rural Women president Fiona Gower said AgriSea’s business model and products are epitomised in Bradley’s passion, expertise and commitment to her family’s business. “The company’s impressive investment in research, development and innovation is a showcase of a successful, inter-

Category Award winners • Creative Arts, Whistle and Pop, Bex Hayman, South Canterbury • Emerging Business, By the Horns, Amanda King, Canterbury • Innovation, Advert Media for the Skool Loop app, Sharlene Barnes, Kaikoura • Love of the Land, AgriSea, Clare Bradley, Waikato • Rural Champion, communiKate, Kate Taylor, Hawke’s Bay • Bountiful Table, The Clareville Bakery, Rose Kloeg, Wairarapa • Rural Health and Wellbeing Excellence, Piopio Dental, Kim Tatham, Waikato

generational, rural agri-business,” Gower said. NZI commercial underwriting executive manager Christina Chellew said the awards recognise the sheer hard work, dedication and entrepreneurship that goes into developing rural enterprises. “AgriSea has been a pioneering business in the production of seaweed-based products for 20 years and this award is richly deserved. “Clare’s commitment to harnessing the potential of NZ’s sustainable resources is inspiring,” Chellew said.

New road-rail freight hub A MAJOR rail-road freight hub planned for Manawatu will improve efficiency and cater for the country’s longterm rail growth, KiwiRail says. The concept facility, which will include log-handling yards, bulk fuel storage, warehousing and export container yards, was unveiled by Regional Economic Development Minister Shane Jones. At three kilometres in length it has been designed for trains up to 1.5 kilometres long – a 60% increase in length and capacity. “A purposely designed

facility to link rail and road together like this hasn’t been seen in New Zealand,” KiwiRail chief executive Greg Miller said. “We are creating something world-class, which will support the growth of Manawatu’s logistics industry well into the future.” KiwiRail announced its decision to relocate its Palmerston North operations out of the city in November. That month it got a $40 million commitment from the Government’s Provincial Growth Fund to help it develop a new facility to better handle rail freight

through the lower North Island. Miller said Palmerston North is already a critical distribution point with goods going to and from the upper North Island, Taranaki, South Island, Wellington and Hawke’s Bay. The state-owned company is now working with local councils, iwi and other stakeholders to identify potential sites around the city for the hub. KiwiRail expects to identify a preferred technical site before consulting the public early next year. Land use designation for

rail will be sought after that. Miller noted the $40m PGF is intended as the catalyst for the hub’s development. It covers the facility’s design, land purchase and the planning process to have the land designated for rail use. KiwiRail’s yard in Palmerston North was established in 1964 on what was then the city’s northwestern outskirts. It has since become surrounded by urban development. The city has since developed its Northeast Industrial Zone further north, near the existing rail line and the city’s airport.


News

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

25

City kids have farm classroom Annette Scott annette.scott@globalhq.co.nz A SLICE of rural New Zealand in the centre of Auckland has city kids farming with a view of the Sky tower. While most Mt Albert Grammar School students grapple with the more usual classroom studies others are out getting hands-on agribusiness lesssons on the school’s 8.1 hectare farm. The cows and sheep grazing on a farm with a good view of Auckland’s sky tower is the story being told by the third Dairy Women’s Network visual story telling project – Our people, their stories. The school farm was established in 1932 when the Auckland Horticultural Society decided city children were losing knowledge of farming practices and asked Mount Albert Grammar to teach agriculture and horticulture. The Auckland Savings Bank, now ASB, got involved and special legislation was passed to allow the bank to buy land from the neighbouring Kerr-Taylor sisters’ farm and lease it to the school at a peppercorn rent. This year 260 years 10-13 students are studying agricultural and horticultural science, up from 160 only 18 months ago. Development manager Peter Brice said the focus is about connecting kids with opportunities in the agri-food and fibre sectors. “It’s about milking dairy cows, shearing sheep, pruning vines, whatever it might be,” he said. “It’s a pretty special eight hectares in the middle of Auckland.” For young Auckland Mt Albert Grammar School agribusiness student Rose Young it’s been exciting. With her sights set on a career in agriculture the farm just makes going to school so much more motivating, Young said.

HANDS-ON: Mt Albert Grammar students Kaitlyn Sanders, Pippi Butterworth and Rose Young feed calves at the school’s farm.

She acknowledges she is not the typical Auckland city teenager. “For a lot of people in Auckland they sort of wonder what’s my why, why am I doing this. “It’s central Auckland, which is a bit crazy for me to be into agriculture I guess. “But when I’m here I don’t feel like I’m at school. I feel like even though I’m learning so much while I’m doing it, it’s more or less just something that I’d love to do anyway,” Young said. “It’s very different to what I’m used to or what anyone in Auckland is used to. “It’s just great to get outside and for girls it is really cool and especially because we have such great female teachers who get us into it as well.” Out of its multicultural roll of

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more than 3000 the school now educates more than 200 students annually from years 10-13 in agricultural and horticultural science with urban kids getting the chance to experience rural farm life without leaving the city. Farm advisory group chairman Mark Heer said the farm connects and engages with city school students who would not normally be exposed to a rural environment. “A strength of the Dairy Women’s Network is engagement and connection, which aligns well with the goal of the farm to engage and connect the agri-food and fibre industries with urban school students. “There is a natural alignment between the two organisations

that works so well and it’s all about creating more awareness and understanding about rural farm life and taking that to the greater New Zealand,” Heer said. In 2013 a new lease was signed between ASB and the school board of trustees with ASB leasing the land to the school for an effective 99-year term at a nominal annual rent of a dollar. There are plans to build a new agri-food and fibre experience centre, which could be a central hub for agri-business in Auckland, Brice said. The farm is the third story to feature in the network’s Our people, their stories project, which aims to foster a greater understanding of dairy farming. Network chief executive Jules Benton said it has been a

It’s central Auckland, which is a bit crazy for me to be into agriculture I guess. Rose Young Mt Albert Grammar wonderful experience getting into heartland NZ to meet some fantastic people and tell their amazing stories. “It really has been truly special. “The first two stories have been so well received and we know this one will be too as its quite different from the first two,” Benton said.

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26 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Rural firms promote ingenuity Riley Kennedy riley.kennedy@globalhq.co.nz A CAMPAIGN celebrating unique rural enterprises has been launched by the Wanaka A&P Society. Four rural businesses in the Clutha area will front the Acres of Ingenuity campaign. They were selected in a competition focusing on diversification in farming and land use. Salmon farm and restaurant Hook, tourist attraction LandEscape, cherry growers and exporters New Zealand Cherry Partnership and honey production company Taylor Pass Honey feature in the campaign. “All four enterprises are using their land in unique and varied ways in an effort to create a viable and sustainable business,” Wanaka Show event manager Jane Stalker said. “Our goal is to give these businesses a platform to promote their incredible work and bridge the gap between urban and rural communities by showing all of our attendees how the farming industry has evolved to include some innovative, dynamic and resourceful operations. “While this was not intentional during the selection process, all four winning businesses have a common focus on sustainability and they have thought outside the square on how best to use their land. “Most farmers are passionate about the environment and these are some great examples of agricultural-based businesses contributing to the ecosystem.” LandEscape is a working sheep and crop farm on 115ha at Hawea Flat but owners Rik and Juliet Deaton are in the process of diversifying it into a tourism business with hot tubs and biking tracks and are also working towards the whole operation becoming a net energy exporter. NZ Cherry Partnership owns the

INNOVATION: Acres of Ingenuity campaign winners, from left, Byron Clarke from Taylor Pass Honey, Heidi Hall from NZ Cherry Partnership, Jess Nuttridge from Hook, Bronwyn McCarthy from the Wanaka A&P Show, Rik Deaton from LandEscape Wanaka and Steve Wooton from Taylor Pass Honey.

largest netted cherry orchard in NZ. The company has just launched Ruby’s Gold Fortified Cherry Wine made from non-export-grade cherries normally fed to livestock. Produced with help from a local wine maker, each 375ml bottle is made from 1kg of fresh cherries, with the aim of allowing the taste of NZ to be enjoyed year-round. Taylor Pass Honey now has 10,000 hives throughout the South Island. The company has moved from being a beekeeper/farmer operation and now sells directly to market, creating different honey products and distributing around NZ and across the globe. “As part of this campaign, our goal is to give these businesses a platform to promote their incredible work and bridge the gap between urban and rural

All four winning businesses have a common focus on sustainability. Jane Stalker Wanaka A&P Show communities by showing all of our attendees how the farming industry has evolved to include some innovative, dynamic and resourceful operations,” Stalker said. Traditional farming practices will also be celebrated with the World Merino Excellence Conference and World Hereford Conference at next year’s Wanaka Show.

Rams pay for themselves BELTEX-CROSS ram hoggets sold to a top price of $1100 and an average of just under $900 for the Roadley family at Wellsford saleyards in Northland on November 19. Rex Roadley said 22 rams were offered and 13 sold when the reserve price of $800 was reached. The rams were bred from Beltex rams bought from the Gallaghers’ Rangiatea breeding business in Mid Canterbury, out

of Romney and Texel ewes. Roadley took some of this year’s ram lambs to the Wellsford sale so farmers could see the weight gains and muscle development of 40kg-plus sheep after 11 weeks. The could be used in the upper North Island to boost lamb growth rates and with the meat company schedules at $9/kg they would pay for themselves in the first season, he said.

MERRY FARMING CHRISTMAS!

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

27

Big dairy assessment gets going Riley Kennedy riley.kennedy@globalhq.co.nz ABOUT 50,000 dairy cows are being rigorously assessed this season to help shape genetic data. Trained inspectors will visit hundreds of farms to assess each cow’s characteristics and traits. “The data we collect is hugely important,” Holstein Friesian New Zealand inspector Tony O’Connor said. “It helps shape the genetics powering our multi-billion-dollar dairy sector. “We record the cow’s height and weight and score her udder, legs, rump, capacity, condition and behaviour in the milking shed.” The data is combined with milk production records and is used to evaluate the performance of the country’s top bulls. South Taranaki sharemilkers Dean and Aimee Perrett milk 260 cows and are among 400 Holstein Friesian breeders whose cows will have the traits other than production (TOP) assessment this season.

We record the cow’s height and weight and score her udder, legs, rump, capacity, condition and behaviour in the milking shed.

“It’s a really important information-gathering exercise for our business. “It gives us more data to help improve our mating decisions,” Dean said. “Our cows have great udders but the TOP assessments have highlighted rump angle as a weakness we need to consider when selecting bulls at mating.” The Perretts have all their twoyear-old heifers and a handful of older cows assessed under the TOP system every spring. They have sought-after genetics with breeding companies seeking to contract mate almost 40 of their cows this season.

ANNUAL CHECK-UP: Aimee and Dean Perrett, who milk 260 cows on 73 hectares at Manaia in South Taranaki, have their herd assessed every year.

producing close to 600 kilograms of milksolids each.” Dean said. Holstein Friesian NZ TOP inspectors will assess more than 31,000 cows and two-year-old heifers this season. Registered pedigree animals

The couple didn’t mate the spring calving portion of their herd this year. They are in the process of transitioning to a fully autumn-calving system. “Our goal is to lower our stocking rate and have cows

receive a classification score awarded as part of the assessment. Last season 413 Holstein Friesians achieved excellent or better. Other breeds of dairy cows will be assessed by inspectors from their breed societies.

Allied Farmers pays another dividend ALLIED Farmers will pay a dividend for the third successive year though it’s after-tax profit dipped slightly. The firm’s income rose from $18.6 million to $21.4m but its costs rose by about the same

a profit of $21.4m, up from $18.2m last year and improved its pre-tax profit from $2.6m to $2.8m. Chairman Mark Benseman and directors Philip Luscombe and Ross Verry were re-elected at the annual meeting.

amount, from $16.2m to $19.2m. It’s net profit after tax was $2m, down from $2.2m last year. It will pay a two cents a share dividend on January 17. Allied’s main investment, New Zealand Farmers Livestock, made

Richard Perry was also elected. He will work with management to assist with the firm’s innovation strategy, digital and systems strategy and finance company systems so the board has

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28 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Newsmaker

Breeder still counting on sheep Mid Canterbury sheep farmers Mark and Robyn Copland have a long association with the Canterbury A&P Association with their involvement this year making it to their farming record book as the best year ever. Annette Scott caught up with the couple to find out why.

M

ARK and Robyn Copland are respected purebred sheep breeders who have followed two older generations of breeding and showing Border Leicester sheep at the Canterbury A&P Show. At the annual event, now called the New Zealand Agricultural Show, last month the couple were named 2019 Show Ambassadors of the Year on top of the field day their Westmere Farming Company had exhibiting in the sheep section. Included in the haul of trophies collected by Westmere Stud’s Border Leicester sheep was the supreme wool breed sheep exhibit and the champion of champions wool breeds pair – champion ram and champion ewe. Westmere Stud also took home the best ewe hogget and the best wool breed ram hogget awards and the Food and Fibre Trifecta Award for the best three ram hoggets of a wool breed. While over the years they have won champion breed titles this is by far their biggest success and one Mark says is unlikely to ever happen again.

The sheep industry is so small it’s almost a niche industry these days. Mark Copland Farmer Just a week out from the show he had made comment to Robyn that the show sheep this year weren’t quite up to the usual standard. “I got that very wrong but it does all come back to what the judges see on the day,” Copland said. “It was mind-blowing, the day became a blur really. It seemed to be one class after another. It just doesn’t happen that way. “No one breed dominates but the Borders did this year. It’s just the way the cards fell.” While proud for the family stud and its years of breeding Border Leicester, Copland was modest of personal accolades. “The family has been doing it for years and this is huge for the family. “It’s great for the breed and for the family. It all came together this year.” Copland said competing against the best of the other wool breeds, including Merino, made it even more special to win with the coarse wool animal. Judges said while Merino is worth a lot more the Westmere supreme champion ram’s wool couldn’t be faulted for soundness and evenness of fleece. The ram has now been shorn

but despite the trophy haul Copland is not expecting any increase his wool cheque. “We have just finished the shearing since the show and just wish we could get a bit more value out of the crossbred wool. It almost cost me to shear.” Westmere Stud was formed in 1932 by Mark’s grandfather, Henry Copland. Initially under the name McCombie Stud it has been under the guise of Westmere Farming since 1953. Henry was always known as a very astute and progressive breeder. Copland’s father, Derek, carried on with the stud until third generation Mark took over. Westmere Farming has exhibited sheep at the Canterbury show for 80 years and over three generations has consistently been in the top echelon of prize winners in the breed and interbreed classes. Copland is a well-respected judge both in the Border Leicester breed and with all breeds. Westmere Farming annually exhibits a strong team of animals with Copland the breed captain of the Border Leicester section and also a co-opted member of the wider sheep section. He is supported by Robyn and his sons in the role. Away from the sheep pens Copland’s other passion in the show movement is dog trialling. That has won him many national and international awards. He is also a regular member of the national dog trials team, last year captaining the winning NZ side in the Trans-Tasman tests. It has been the extensive show involvement that deemed the Coplands to be excellent ambassadors who will promote and enhance the ethos and ethics of the Canterbury A&P Association, director Richard Lemon said in the award citation. Back home on the farm it’s back to grassroots business. “Home on Friday, weaning on Sunday and shearing on Monday. It’s been busy enough.” As well as the stud that runs 200 Border Leicester ewes, the 670 hectare farm runs a breeding flock of 2500 Romney and Border Romney ewes, finishes 1000 beef cattle from winter to summer, grows barley and pea crops and share farms potatoes. Son Hugh is now the fourth generation involved in the day-today running of the farm, having left a banking career. “The young ones these days are not so keen on running around after sheep. “When I left school we had 6000 ewes here. We have diminished the breeding flock numbers over the years but I think the influence of the next generation could change that further. “This year we finished 5000 additional store lambs and that was pretty much Hugh’s doing.” Irrigation was developed on

THE BEST: Back home in the woolshed the 2019 New Zealand Agricultural Show Ambassadors Robyn and Mark Copland display the spoils of Westmere Farming’s supreme wool breed exhibit. Photo: Annette Scott the farm 15 years ago and now with 80% under irrigation the operation has diversified. Copland is upbeat about the future of sheep farming. “Nine dollars for spring lambs we sold last week, we’ve never seen that before. “Mutton at $6.50, who would have thought it would get up to that. “The ewe fairs are going to be hot this season. “The sheep industry is so small it’s almost a niche industry these days. “I’m happy to stay a part of it,” Copland said. Despite his optimism in the industry Copland said he usually sells 40 to 50 Westmere Stud rams to commercial farmers and the values they are fetching so far this year haven’t increased proportionately to reflect the record high sheep meat prices. The future for Westmere Farming Company? “I think I could safely say this place will never be cows.” But the next generation is looking at options. “It could be watch this space on sheep milking,” Copland said.

WINNER: The supreme champion wool breed ram in full show fleece before shearing last week.


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New thinking

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

29

LOW GAS: Gina Lucci says research into zero-carbon dairy proves New Zealand is closer to it than people might think.

Carbon-neutral dairy a reality Research by scientists indicates dairy farming can be carbon neutral and that might even result in higher profits. Richard Rennie spoke to senior AgResearch scientist Gina Lucci on the encouraging results indicating higher profits and lower emissions do not have to be mutually exclusive.

D

AIRY farms can be profitable while becoming carbonneutral and cutting nitrogen losses but the profit depends on getting a premium for being environmentally friendly, AgResearch work has found. Pastoral farmers are grappling with the prospect they have till 2024 to prove they are making progress in reducing greenhouse gas emissions while also meeting demands around water quality improvements and lower nitrogen losses. AgResearch scientist Gina Lucci and her team’s research work for the Our Land and Water National Science Challenge provides some peace of mind for industry. They examined straightforward, realistic steps for reducing carbon emissions then buying carbon credits to offset emissions that cannot be cut. “Our aim was to ensure we did not seriously affect milk production or make changes as extreme as retiring part of the farm.” The work was modelled on three different scenarios including an all-out scenario. It involved dropping the stocking rate 17% to 2.4 cows

a hectare, complete removal of nitrogen fertiliser and a 21% increase in bought-in feed. The results surprised researchers. They cut greenhouse gas emissions by 20% and reduced nitrogen losses by 42% compared to the average system 3 Waikato dairy farm. The profit impact was a drop of 5% but researchers found that could reverse to a 15% increase in net profit against the base conventional farm when including a projected carbon-neutral price premium. No price premium is offered yet so the researchers called on Lincoln University economics lecturer Dr Wei Yang to determine what such a premium could be valued at. Yang combined the results of 32 existing studies to learn how much extra consumers are prepared to pay for dairy products with a strong environmental halo around them. Environmentally friendly was used as a proxy for carbon-neutral products, for which little research has been done on consumers’ willingness to pay. That is likely to change because providing carbon information to consumers is seen as an important instrument for tackling climate change, Yang said.

Her work predicts overseas consumers will be prepared to pay a 26.4% premium on such products. That’s sufficient to offset the 5% decline in net profit farmers can expect from enacting the carbon neutral steps.

Our aim was to ensure we did not seriously affect milk production or make changes as extreme as retiring part of the farm. Gina Lucci AgResearch She acknowledged farmers do not receive all of the premium gain and used historical United States data to calculate 30% of the premium could be returned to farmers. However, New Zealand farmers are in a premium limbo, required to reduce carbon emissions and wear the associated costs but with no prospect yet of any premium being paid globally for their efforts.

Lucci expects there will be a need for an agency or governmentsponsored certification scheme to validate any low-carbon claims. “And it would have to be clearly defined. Even the term grass-fed, which is used in some labelling now, is quite a broad term.” Researchers have relied on offsetting unavoidable farm carbon emissions including methane from cows by buying carbon credits valued at $25 a tonne. Lucci acknowledged there is potential for that cost to rise, altering the economics of any profit gained through a premium. Livestock methane emissions remain a significant part of the unavoidable gas losses from farm systems. Lucci said any breakthrough in that area will make the results look even more positive. “Less methane is good but you still want to be reducing your nitrogen losses from the farm too.” She also questioned whether NZ risks consumer pushback on any methane treatments administered to animals, similar to the impact DCD nitrate inhibitor had some years ago. The move to replace farmgrown grass with a 21% increase in bought-in feed in the form of

maize could also raise the spectre of apparent exporting of the dairy farm’s nitrogen losses elsewhere. “But we chose maize largely because it is a low-nitrogen-loss crop. As a percentage the greatest nitrogen losses are still happening on the dairy farm itself. We looked at other crops for Southland and the results were similar.” Lucci said researchers are also excited by emerging technology, being used in Ireland, capable of bio-refining the high nitrogen content out of grass before it is fed to cattle in a significantly lower protein form, therefore resulting in lower nitrogen losses in urine. “The resulting fibre cake has 4060% of the original fresh pasture’s protein content and could be a valuable low-protein feed supplement.” Earlier work by the researchers found harvesting a quarter of a Waikato dairy farm’s pasture and extracting the protein then feeding the lower protein feed to cows indicates an Overseer-modelled reduction in nitrogen losses of 30% compared to conventional grazing. The researchers were guided by input from a reference group that included farmers, Fonterra and farm consultants to help ensure steps were realistic and manageable.

Genetics is one thing farmers have 100% control over “We use Piquet Hill because they are progressive, commercially minded and their rams are some of the most FE tolerant in the country.”

Will Jackson Phone 07 825 4480 william@piquethillfarms.co.nz Elite Romney

Romney – Maternal Composite Perendale – Suffolk

LK0099236©

0

Richard Scholefield – Whangara Farms, Gisborne


Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

EDITORIAL Putting values into effect makes profit

T

HE word value means a lot to the farming sector. Farmers value their role as food producers and caretakers of the land. They value their animals and their communities. These are the principles they live by. But farmers also extract value – the monetary worth of the food they produce. This is a bit more literal and is increasingly dependent on how well those principles are adhered to. A new piece of work from AgResearch has put some numbers around shifting to a value set that has sustainability at its core. Researchers say farmers can move to a carbon-neutral system and get bigger profits from their farming business. The on-farm changes include greatly reducing nitrogen use, bringing in more feed and dropping stocking rates. That’s where the carbon zero part comes from but what about the increased profit? Well, there’s quite a big if involved. The model requires consumers to pay a premium for food produced in this sustainable way. That would require a number of things to happen. The first is that enough farmers need to move to this model to produce the volume required. A single farm can’t extract that value on its own. Second, the processor needs to market and sell the food to achieve that premium. And that brings in the final link in the chain, the consumer. Just last week a Harvard study showed people are quite willing to say they’ll pay a premium for sustainable food but that didn’t flow through to actual purchases in the supermarket. That’s demoralising for sure but it is possible to see a trend towards sustainability over time and the values of well-off consumers are moving in that direction. Dairy is emerging from a period of valuing volume over everying else. That’s left farmers with small margins and angry countryfolk who demand a better environmental performance. This mounting evidence that there’s profit in a shift of values towards sustainable and carbon-neutral farming shows there’s reason to be optimistic.

Bryan Gibson

LETTERS

More letters P31

O’Connor disingenuous on trees IN YOUR November 18 issue Damien O’Connor asserts forestry is no threat to farming. He claims that under the Billion Trees target the area of forestry land will increase by 300,000ha to two million hectares. The Productivity Commission in its Low Emissions Economy report to the Government on August 31 2018 recommended substantial levels of afforestation to offset NZ’s remaining emissions, requiring sustained planting over the next 30 years, mostly on land used for sheep and beef farming, potentially at a rate approaching the highest ever recorded of 100,000ha in 1994. That represents 30 years at 100,000ha a year or 3m hectares. In 2016 Statistics New Zealand said 8.5m

hectares was used for sheep and beef farming so the recommendation is for 35% of NZ’s sheep and beef land to be converted to forestry. The Government has adopted a majority of the commission’s recommendations with the statement the report has informed Government decisions since then. When the then National government signed NZ up to the Paris Accord NZ had a provisional carbon budget of 601m tonnes of CO2-e. That was the gross amount of CO2-e NZ could emit and still meet its target, that target then being to reduce its emissions by 30% from 2005 levels by 2030. The present Government’s target is more ambitious. Contrary to both targets NZ is on track to emit 804m tonnes of CO2-e by 2030. The net effect of this overshoot is

that NZ will have to find a way to offset 203m tonnes of CO2-e in the next 10 years. Given that the average rate of CO2 sequestration by pine forests in NZ is, without harvest, 6.4 tonnes a hectare that will require about 3.2m hectares of new forests in that 10 years. The commission, no doubt in recognition of the difficulty foresters might have in getting enough land, also recommended NZ’s emissions price will need to rise to at least $75 a tonne of CO2-e and possibly $200 a tonne over the next three decades. Given all of the above and that the Government appears to have adopted the commission’s report and taking into consideration the various regional constraints around pine plantations it is disingenuous in the extreme for O’Connor to suggest there is no Government policy

that encourages high-value pastoral land to be planted in pine trees. Indeed, it is impossible to see how the Government’s targets can be met without encroaching on all classes of farmland. Bill Wrigley Dunsandel

Dye won’t hold THERE has been some publicity about the problem of marking stains in wool, particularly around scouring. My experience is that I take my late-lambing ewes out in June, identified using ram harnesses, then mark those ewes, returning them to the flock to be pulled out again in September. I used to mark them on the head but the marks didn’t

Continued next page

Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Stephen Bell 06 323 0769 editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 06 323 1561 colin.williscroft@globalhq.co.nz Annette Scott 03 308 4001 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Alan Williams 03 359 3511 alan.williams@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com PUBLISHER Dean Williamson 027 323 9407 dean.williamson@globalhq.co.nz

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Opinion

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

31

Time makes difference for trees Dave Read

I

FEEL the farming lobby and the Government are talking past each other. Part of the problem is one of differing timescales. Farmers are used to thinking in terms of more than one generation so 50 years is a medium time scale. Governments think in terms of electoral cycles so five to 10 years is a medium time scale. I would like to look at the points Agriculture Minister Damien O’Connor makes, Forestry no threat to farming, Farmers Weekly, November 18, one by one. While it is true we have 12.1 million hectares of farmland it is misleading when talking of land available for afforestation. Land suitable for forestry is sheep and beef hill country because dairy, cropping and horticultural land is too valuable for afforestation. There are 5.3m hectares of that class of land that is not already under woody vegetation or under tussock, which no one is suggesting should be planted because of its special ecology and the danger of wilding pines. Yes, since 2002 a fair chunk of flat to rolling forestry land on the Central Plateau, that was originally planted in forestry during the Great Depression, has been converted to dairy. At the time of planting no one knew that 500g/ha of cobalt could turn that land into highly productive grazing. But the Emissions Trading Scheme has largely stopped conversion from forestry to pasture. While it might be true the Government has no explicit policy to plant pastoral land the ETS is Government policy. Farms regularly come on the market because of the natural cycle of farmers retiring or exiting the industry for other reasons. A carbon price of $25/tonne

The

Pulpit

under the ETS means forestry can outbid farming on all classes of sheep and beef land except land under a mixed stock and cropping regime. The result of the ETS policy is that whole farm conversions are taking place and will increase when the price of carbon increases. For sure, overseas buyers generate a lot of emotion, however, for the fate of rural communities and their economy it makes no difference if the owner is in Auckland or Austria. The work of Fergus Rutherford on the discounted rates of return on pastoral farming versus forestry, when augmented with $25/t for carbon, clearly shows forestry interests can outbid farmers even on highly productive hill country farms. That is demonstrated by two recent sales to forestry: Hadleigh Station, a third cultivatable, and Mangaaruhe Station, a past winner of the farmer of the year title. The result of ETS policy is a reduction in food production to offset carbon emissions, a direct breach of article 2.1 of the Paris Accord. The price of carbon under the

START AGAIN: The Government and farmers need to agree on afforestation time scales then sort out where they agree then use science to resolve their difference, farmer Dave Read says.

providing grants for 60m trees, 40m of which will be natives. While 40m is two-thirds of 60m it is only 4% of a billion. I absolutely agree with O’Connor the Government doesn’t hate farmers and is not interested in destroying rural communities. I feel that tension has been largely exacerbated by poor media coverage of the issues. However, O’Connor needs to acknowledge unintended consequences can flow from even the bestintentioned policy. Both rural communities and the Government feel under threat from the other side. We need to work together on this. We need to refrain from making misleading statements that bolster our side of the argument. We both need to acknowledge the valid points the other side has made. In areas where we cannot agree we need to allow science and the facts to inform our decisions. Of greatest importance is to decide on what is a valid time scale for making irreversible decisions on land use.

Who am I? ETS is the real driver of land use change. Unfortunately, it is the Billion Trees programme that has captured most of the publicity. The smart forestry money, especially that investing in carbon-only forestry, realises a much higher rate of return can be gained by not accepting the conditions of the Billion Trees programme, planting pines and foregoing any Government grant. While it might be true that the purpose of the Billion Trees programme is to integrate trees onto farms, O’Connor’s time horizon of 2028 is too short to reveal the true, long-term effect of afforestation. The ETS incentive to plant trees will continue to be

the driver of land change well beyond the 10-year Billion Trees programme. Parliamentary Commissioner for the Environment Simon Upton has modelled the policy. By 2075, a medium term horizon for farmers, he predicts 5.4m hectares of land will be planted to offset carbon emissions. With only 5.3m hectares of land available for planting, the phrase right tree, right place is revealed as having meaning only in the short term. The idea being promoted that two-thirds of the Billion Trees will be native is misleading. The subsidised planting of trees is designed to kick-start the eventual planting of a billion trees, by

Dave Read has spent the last 30 years farming at Wairoa. His interests include sustainable farming with trees for fodder and erosion control and breeding low-input sheep and beef cattle. He has spent the last two years lobbying for the use of mainstream science in climate policy. He just completed work with the Hawke’s Bay Regional Council to establish willow and poplar tree spacing that will qualify for 30% canopy cover under the ETS.

wool and the full page add they ran. So I went to the woolshed to read the spray cans I have bought from my local merchant for years only to find, printed in bold letters on the front of the can: fully scourable. So I ask who is misleading us? False advertising? We always try to take out as much as possible but like all we will never get 100%. I will be interested to see what the answer is.

Since, with the experience of the farmers in Australia, due to their bush fires, I now think that could be the fate of Canterbury farmers, if not for irrigation. A fire could also go rampant through the boundary fences into the forestry. Whose property is the most important? I would not like this Labour Government to give us the answer. They may say behind closed doors “Whatever, less rural schools would be best”.

nutrients, enhanced algal blooms, oxygen depletion, sediment not moved by weaker currents and the resulting silting destroying insect life on which both native fish and trout feed. Trolove is quite correct. Trout and indigenous fish have coexisted for over 150 years. Trout’s diet is predominantly insect larvae.

Allan Roulston Balclutha

Cecile Brawn Te Awamutu

Don’t reply

Decision absurd

I WAS most concerned when I read of this Government’s proposed water tax for Canterbury in the Farmers Weekly, November 4. My thinking at that time was it will put farmers off the land and does the Government want the water to flow out to sea?

MY COMPLIMENTS to Federation of Freshwater anglers chairman Dr Peter Trolove for his stand against the absurd, precedentsetting Environment Court ruling giving native fish priority over introduced trout and salmon when setting river levels.

The decision setting minimum flows in the Lindis River puts a higher priority on protecting native fish from what it refers to as introduced predators, trout – a ruling former Otago Regional Council chief executive Graeme Martin lauds. This sure is a bizarre world and the decision and Martin’s glee well qualify for the degradation in common-sense levels. Surely, it is logical that fish need water, no matter the species, indigenous or introduced. The latter derogatory term of introduced reeks of an anti-introduced phobia rather ironical because all humans are introduced by way of migration and they introduced many species from stock to fruit trees and pasture grasses, which we enjoy the benefits of. Lower the water levels and all fish, regardless of species, will suffer as the ecology degrades. Under Martin’s ethos, there will be heavier concentrations of

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LETTERS Continued from previous page hold and were indiscernible by September. Maybe it was medullated fibre or whatever but the fact is the marks don’t hold on the head. I think the manufacturers and people in the industry need to get on side together and produce a marking product that will last on a sheep’s head. Firstly, when you are drafting, particularly on ear marks, something marked on the head is more obvious. Secondly, the wig should be kept separate. There would be little loss of value in having the wig permanently marked. Pete Batley Taihape

Who’s right? I READ with interest the story on Dawson on spray markings on

Andi Cockroft Chairman Council for Outdoor Recreation Assns Lower Hutt

Letters to the Editor Letters must be no more than 450 words and submitted on the condition The New Zealand Farmers Weekly has the right to, and license third parties to, reproduce in electronic form and communicate these letters. Letters may also be edited for space and legal reasons. Names, addresses and phone numbers must be included. Letters with pen names will generally not be considered for publication.


Opinion

32 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019

Too many fingers in too many holes Alternative View

Alan Emerson

THE arguments around climate change have me genuinely confused. I’m not a climate change denier. I accept the world’s climate is changing. Where I have a problem is the approach we are taking. Where I have a larger issue is the inconsistencies of many policies. A simple example is the Paris Accord, which, for some unknown reason, exempts air travel. For a good reason it also exempts food production. Why then, in New Zealand, do we totally ignore all the pollution of air travel while hitting food production with whacky targets? It doesn’t make sense. Air NZ increased its emissions by 5% last year to 3.47 million tonnes. That carbon dioxide will be in the atmosphere for centuries yet no one seems remotely concerned. Absurdly, after Wellington City Council declared a climate emergency the airport decided to spend $1 billion to extend the runway so it can increase the number of flights. It expects to almost double passenger numbers. That means a doubling of the carbon footprint but that’s apparently okay. Cows burping isn’t. Stupidly, in my view, taxpayers

subsidised a visit from American talk show host Stephen Colbert to the tune of $100,000. Tourism NZ proudly said it would encourage $5m in advertising value, meaning a lot more tourists with the carbon footprint they bring. The carbon footprint of the average Kiwi is 7.7 tonnes of carbon dioxide a year. A return economy class flight to London has a carbon footprint of 6.9 tonnes. Our politicians and bureaucrats fly business class, which has a footprint of double that at 13.2 tonnes.

Why then, in New Zealand, do we totally ignore all the pollution of air travel while hitting food production with whacky targets? It doesn’t make sense. In addition. we have 123 cruise ships visiting Wellington this year. Just two Organisation for Economic Co-operation and Development countries, NZ and Mexico don’t require the ships run on cleaner fuel. The emissions from a cruise ship in Wellington are equal to 200,000 extra cars a day. Again, that seems okay because it isn’t related to farming. Statistics NZ says immigration in the 2016-17 year was 72,300 people. That increased our carbon footprint by 557,000 tonnes. Then we have the electric car saga. Electric cars are the go, we were told, because they drastically

lower our carbon footprint. They are even subsidised because they don’t pay road user charges or fuel tax. The Government was going to set the example and we were assured the vehicle fleet would be emissions-free by mid 2025. Unsurprisingly, it won’t be. The total Government vehicle fleet is 15,000. In the final quarter of the 2018-19 financial year it added just five electric vehicles. As well as being little use outside cities the German IFO think tank published research showing electric vehicles there produced 11% to 28% more carbon dioxide that diesel cars. In addition, the batteries in electric vehicles are made of elements including lithium, manganese and cobalt from third world countries and exploited labour. That’s nothing like the local dairy industry. What I hadn’t realised was the impact fashion is having on the environment as clothing production has doubled in the last 20 years, much of it eventually heading for landfills and being burned. Washing clothes releases 500,000 tonnes of microfibres into the ocean each year. Polyester is found in 60% of all clothes. It releases two to three times the carbon emissions of natural fibres and doesn’t break down in the ocean. Further, it takes 9092 litres of water to produce a pair of jeans. A litre of milk, according to AgResearch, takes just 4296 litres. No-one is talking about reforming the fashion industry and more ridiculously the vegans at Save Animals from Exploitation wear polyester but not wool.

BIG SMOKE: The emissions from a cruise ship in Wellington harbour are equal to adding 200,000 cars a day to the city.

Then there’s Government policies. We give Tiwai Point cheap power to produce aluminium. The process not only has a large carbon footprint but makes us burn coal to produce electricity. In addition, Treasury estimates the Huntly coal-fired generator produces 20% to 50% of the generation sector’s total emissions. Closing the smelter means you could also close Huntly. The Emissions Trading Scheme isn’t the answer to global warming. It means large polluters can pay to continue polluting. It doesn’t actually change anything. Planting pines won’t either. If we don’t reduce our carbon emissions we’re going to run out of land on which to plant trees. Further, according to climate change expert Professor James

Renwick of Victoria University, pine trees lengthen the time methane is in the atmosphere, which seems a no-brainer to me. Further, if a European aristocrat buys a farm and blanket plants it for carbon, she can claim carbon for 50 years and walk away. The trees will eventually rot and fall down, thus returning the carbon to the atmosphere. As I said at the start, I accept the climate is changing. What we need is a credible, coherent, sciencebased policy that everyone can buy into. We don’t have that now. Instead, there seem to be many fingers in many holes in many dykes.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz

It won’t last so enjoy it while you can From the Ridge

Steve Wyn-Harris

THE headline, Prices go crazy, on the front page of last week’s Farmers Weekly is the one I’ve been waiting my whole farming career to see. Annette Scott reported red meat prices are sailing in uncharted waters and told us of some wethers that sold for $373 a head. She quoted auctioneer Hamish Zuppicich as saying it makes for an expensive sausage. I naturally assumed this is Coalgate auctioneer talk that means prices are red hot and going through the roof but reading further I see these sheep were

actually destined for a butcher’s shop and ultimately, yes, maybe sausages. No longer are sausages the food of the poor and you won’t be buying them for $1 at the next fundraising sausage sizzle any time soon. I sent 500 lambs to the meat processor last week straight off mum so not at big weights but at 17.1kg and with a $9 schedule they netted $151, which is very cool and pleasing. A $75,000 cheque before GST was something I would never have dreamed of in the past. I might have to frame that kill sheet. And there are another 1500 or so out there on the farm waiting their turn. Old ewes are also making in excess of $150 and I’ve been killing two-and-a-half-year-old bulls for more than $2000/head. I was told the other day some wag reported he’d just killed his old ewes for $170 and has spent decades going to wool crisis meetings, which got us nowhere, but never to a crisis

meeting over the price of mutton. Now you whippersnappers who have been in the sheep and beef sector for the last four or five years will be thinking this will go on forever and it has always been thus.

And here we are now in the promised land.

Well I don’t want to sound like the four Yorkshiremen in that classic Monty Python sketch but it hasn’t always been so. In the late 1980s, just three or four years into my farming career, things got pretty grim. Not only were we beset with droughts but our best markets for lamb were Iran and Iraq, which were determined to exterminate each other during their terrible war and were buying our little

14kg carcase weight lambs and we were getting $24. Goodness knows what we would have got if they weren’t in the market. I killed ewes for a couple of dollars a head but I heard of folk getting bills after they sent a load to the works. We speculated IRD should be giving us tax relief for eating our own muttons. But from memory wool prices were something like $5/kg so it could have been worse. Some people, including one or two from my discussion group, exited the industry but most of us hung on. It’s hard to believe now given how dire the prices were but we did. It was the period when farmer’s wives got into their cars and drove to town to work. It was relatively rare before that but an important survival mechanism. The 1990s slowly improved but it wasn’t until the early 2000s when we had a couple of ripper years that the pressure finally

came off and we could see a brighter future ahead. And here we are now in the promised land. Exceptionally strong demand from China with other countries like the United States competing has driven prices to these levels and it sounds like they will remain firm for the rest of the season and maybe beyond that. However, without sounding negative, one day the bubble will burst and we will head back to the average. I haven’t seen it yet but when someone starts saying this is a new paradigm, it will happen soon after. So, make hay while the sun shines, enjoy it while it lasts, don’t squander it, pay off debt and start providing for the tax your provisional tax isn’t covering.

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


Opinion

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

33

KEEP PLANITNG: Pine trees will get carbon credits for only 17 years so there will be a need to keep planting more and more land in them.

Government losing forestry debate Keith Woodford

THE response of Government ministers to rural concerns about forestry policy is polarising the debate. Describing rural perspectives as fiction and upset rural protesters as rednecks is counter-productive. The combination of the Zero Carbon Act and forthcoming Emissions Trading Scheme legislation will transform the landscape. The Government has done a poor job of educating New Zealanders about what it will mean. The Government is now on the defensive. In this article, the focus is on multi-rotation production forestry. The associated story of permanent forests must wait for another article. The starting point is that NZ has a policy goal of zero net carbon emissions by 2050. That means, among other things, that NZ has either to find new energy sources to replace fossil fuels or to offset those emissions in other ways. The offsetting has to start right now. There are only two ways to offset emissions. One way is to sequester carbon in trees in NZ. The second is to buy emission rights from overseas people who grow trees overseas. The second way is an avoidance strategy where New Zealanders pay others to carry the burden. It works only in a world where there are lots of wealthy people in one part of the world and lots of poor people elsewhere. Both NZ and Australia have played this game in the past. Unfortunately, NZ did it with cheap and largely fraudulent emission units from Ukraine. Both NZ and Australia plan to play the overseas buying strategy again, though this time,

hopefully, with more integrity. However, there is not much virtue signalling or salving of consciences by these actions. It cannot be the main game. To cut to the chase the new zero-carbon legislation means New Zealanders need to totally change their lifestyles and plant a huge number of trees in NZ over the next 30 years. To put things into perspective, the wall of wood coming up for harvest in the next 10 years is about 650,000 hectares. It will all need to be replanted but the replanted forests will not earn carbon credits. It is only new forests on land not recently in forests that earn carbon credits. NZ’s short to medium term forest policy is encapsulated in Government messaging in the Billion Trees programme. Assuming a planting rate of 1000 trees a hectare, which is typical, then replanted forests will take up most of the Billion Trees. It bears repeating that these replanted forests will not earn carbon credits. Extending the thinking out to 2050, by then almost all the 1.73 million hectares of existing plantation forest will have been harvested. That, too, will need replacement with another rotation of trees on the same land just to avoid new carbon liabilities. The proposed new ETS, with its focus on new, multi-rotation forestry converted from farmland, will provide forest owners with first-rotation credits based on the average sequestered carbon over multiple rotations. For new forestry based on radiata pine and 28-year rotations, forest-owners will claim credits for the first 17 years of the first rotation. To state that as explicitly as I can, the carbon benefits relate to long-term accumulated environmental benefits over many rotations but the total cash benefits are paid out in the first 17 years of the first rotation. The credits are expected to total about 340 tonnes a hectare of carbon-dioxide equivalent. At current prices of $25 a tonne, they

will be worth about $8500 over 17 years. However, the smart-money people can see potential for this carbon price, really a carbondioxide price, to rise to at least $75 a tonne but perhaps $100 or even $200. Given a price of $100 a tonne a hectare of farmland converted to forestry would earn $34,000 over the next 17 years from carbon trading.

New Zealanders need to totally change their lifestyles and plant a huge number of trees in NZ over the next 30 years.

That raises the question as to how much farmland will be converted to forestry. It’s a multibillion-dollar question. Let’s take a hypothetical figure of 100,000 hectares a year. After 10 years we would have a million hectares of new forests and they would be earning about 20m tonnes of carbon credits each year. That would make a sizable dent in our overall net emissions but would not get us anywhere near zero net emissions. To put things in perspective, NZ’s gross emissions of carbon dioxide equivalence are about 80m tonnes a year. About half is longlived carbon dioxide. The rest is based on equivalence calculations for methane and nitrous oxide. From a national perspective one of the problems with 28-year rotation radiate pine is that the trees will earn credits for only 17 years. For the 11 years from year 18 to year 28 the trees are still growing but neither earning new credits nor incurring new liabilities. So, after 17 years we have to plant more new forests on more farmland just to keep up the existing flow of credits needed for elsewhere in the economy. It requires running fast to stand still.

Once 28 years have passed then, if the trees are harvested, there will be a liability attached to the land of about 340 tonnes of carbon dioxide equivalence. To avoid payment of the liability, the land must be replanted in another rotation of forestry. But I emphasise this replanted forest, being second rotation, earns no further credits. Hence, if we are to move to anywhere near a zero-carbon lifestyle and unless we can totally eliminate use of fossil fuels the forests must continue marching across the landscape, like the mythical triffids of the John Wyndham classic. So, is there a counter argument why the above scenario is alarmist? The counter argument can only be that new technologies will come to the rescue. Supposedly, we will rely on solar, wind and geothermal combined with new battery technology to transform our economy. At that point the march across the landscape can stop. Actually, the scenario I have drawn above has already allowed for these technologies coming substantially to the rescue. Without them, the march of the pine trees across the landscape will need to be much greater than 100,000 hectares a year. Even with policies that are well thought out there are always prospects of unintended consequences. With carbon trading there will be substantial windfall gains for people who own non-dairy pastoral land and sell it for forestry. We are seeing that already. The reason I exclude dairyland is that dairy economics are sufficiently strong that dairy-land values will provide a buttress against forestry. The forestry will go predominantly on sheep and beef land though there will be exceptions. Right now, when non-dairy pastoral land comes on the market there are multiple forestry buyers competing for it. This is particularly the case for

land within 70km of a port. The likelihood is competition for this land can only increase. In previous articles I have focused on the role of international investors because they have the scale and financial power to make big decisions quickly with implications that become irrevocable. However, the landscape transformation issue goes well beyond international investors. If there is a key difference between 50 Shades of Green folk and the Government it is that 50 Shades is looking forward while the Government is relying on rearmirror statistics. Right now, the Government has a tiger by the tail.

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

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Opinion

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

The good, the bad and the fugly Off the Cuff

Andrew Stewart

A FEW months ago I wrote an open letter to Prime Minister Jacinda Ardern and our farming leaders. The intention was to raise awareness surrounding new legislation that will have a dramatic effect on us farmers. The Zero Carbon Bill and freshwater policy, in particular, in their raw formats posed the biggest headaches and I felt the need to take my argument right to the very top. It was the first time in my life I had ever contemplated writing to a prime minister so I was winging it a bit. Mr Google gave me the email address to the PM’s office so I sent it through thinking that would be the last I heard of it. But after the incredible response to posting it on social media and it being printed on various media platforms I received an email back from the PM’s office saying it had been read and would be responded to in due course. I still presumed this response would be from some staffer so was pleasantly surprised when the PM herself sent through an email. I immediately knew it was

from her because the opening paragraph alluded to one time many years ago when she had stayed at our farmstay to attend a local wedding. While I won’t divulge the full content of the letter she addressed my concerns openly and diplomatically. She acknowledged we are first and foremost a country that sells primary products to the world based on a reputation of being the best and most farmers accept the need for change and are doing the work – and they are also very keen for others to lift their standards because the risk is everyone’s reputation is brought down. She went on to address the concerns I had raised about not hurrying through legislation. “I’ve also heard that we don’t have to change everything and we don’t have to go at breakneck speed but we do have opportunity here. Is it possible that the 2020s will go down as a time of innovation, leadership and advances in our agricultural practices and a time of restoration of our environment so that all farms perform like yours. That’s our plan as we move to protect our elite soils, overhaul our biosecurity system and put record investment back into our regions.” She finished by saying “We will not kick the can to the next generation” and assuring me my message and the voice of all those supporting it has been heard and will be included in shaping this important work. So, in summary, I couldn’t really

have asked for a better response from the prime minister and that is why I started with the good. The bad, which comes next, is in the form of Agriculture Minister Damien O’Connor. Some time ago, and no doubt after the PM’s office had read my open letter, I received a phone call from his office. The staffer told me O’Connor would be in my region in 10 days’ time and would it be possible to visit our farm. I told them that would be fine but was then told it probably wouldn’t happen as the proposed day was busy already and he wouldn’t have much time. As the date neared I emailed his office again to see if he was coming so I could get the red carpet ready but never heard back. So, I messaged O’Connor directly, only to be told his office makes all his appointments for him and he basically had no clue. Needless to say, the visit never happened. Oh well, never mind. In mid November I joined the hundreds of other farmers from around the country to march to Parliament. When it came time for our O’Connor to speak he got some minor heckling from the crowd in reaction to his opening statements. What none of us expected was for him to turn around and threaten to leave because he couldn’t handle it. And then we get to the fugly. During the speeches the selfproclaimed champion of the regions Shane Jones was given the microphone. He immediately launched in singing Tutira Mai

NO EMPATHY: Ministers Shane Jones and Damien O’Connor showed a total lack of respect for farmers by turning their backs on them.

Nga Iwi then told the crowd how important he is. I must admit I was pretty shocked but what happened next was nothing short of disgraceful. After having his say, which was mostly about himself, he and O’Connor proceeded to turn on their heels and leave the gathering even though there were still some speeches going. It displayed a total lack of respect and empathy with the large crowd of farmers who Jones then went on to call rednecks when hounded by the mainstream media. And that was the fugly. Being there on the day and listening to the fantastic speakers

organized by 50 Shades of Green to address all farmers’ concerns was a real highlight. Listening to the two politicians charged with running our industry and our regions was uninspiring, disrespectful and embarrassing to them as human beings. And for the record, the only red neck I spotted during the day was on a large man with a very large, white hat who was obviously worried about getting sunburnt. Shame on you Shane.

Your View Andrew Stewart is a sheep and beef farmer and tourism operator in Rangitikei.

Children’s minds must be our focus The Voice

Craig Wiggins

I HAD the rewarding task of joining my daughter’s class on the end-of-year school trip to the big smoke of Christchurch. A convoy of four mini-vans full of children, parents and teachers made its way from Lauriston, a small rural school made up mostly of rural families, to Ferrymead Heritage Park and the Orana wildlife park. The theme was to learn about sustainability and energy from an historical point of view at Ferrymead. I thought I’d better tag along and see if a fair explanation was to be given on sustainability and it’s also impossible to say no to your nearly eight-year-old daughter asking for some fatherdaughter time. The museum volunteers took the children and transformed them through the time warp by dressing them in old clothes, telling them the basic rules of life as they were 100 years ago.

Children should be seen and not heard, waste not want not, stand up straight and ladies before gentlemen. Right off the bat the year three and four children got into the atmosphere created by the host as he directed them into their groups and sent them on their way. Our first stop was the policeman’s house where the wife was busily getting through her tasks on washing day. Engagement was my word for the day. All the children bought into the tasks of keeping a house without the benefits of electricity. They washed clothes by hand, ironed them with irons heated from a coal range, dusted with a feather duster and took an understanding of the importance of community, sharing each other’s toil, the abundances of produce grown and again waste not want not. The old school mistress introduced them to the cane, strap, slate boards and dipping pens. They sang God save the King and had their old school uniforms scared off them for but a brief moment as Miss Black played her part. Again, full engagement. The technology stop was in the railway station of this historic hub where they came forward decades to look at electricity production and use and how life is transformed by harnessing

DAY OUT: Lauriston School boys, from left, Logan Honeywell, Toby Maw, Ben Mijs and Sam Palmer got into the spirit of their trip into the past.

energy and storing it for our use and benefit. Yet again young minds were fully engaged with no thought we had missed lunch and they probably needed food. My point to all of this is that for these rural children the trip to town and the lessons learned will last into their adult life with memories of a life vastly different to their own. I see a huge similarity to urban children being taken out of their environment and shown the rural way of life, the production of food, the open spaces and the things we take for granted like the new-born lamb or calf, the feeding of stock, a wellcooked roast and family chores. Duncan and Tina Mackintosh. winners of the 2019 Canterbury Ballance Farm Environment Awards, featured in this month’s

Farmers Voice video and that is exactly what they are doing. They are heavily involved in educating their school’s children in pasture/garden to plate projects and with their QEII reserve block, doing educational trapping projects with these school children. They see the benefits of educating a community that is now made up of more lifestyle families following the exodus from Christchurch after the earthquakes. The challenges rural New Zealand faces to engage consumers and urban dwellers and educate them on food production and sustainability without penalising those who produce that food beyond the ability to survive are well documented. The attacks on

farming, the new education system that teaches students about the unsustainable practices of farming through liberal-tainted views need to be balanced. Many an instance of anti-farming sentiment has found its way into the modern curriculum and if that is all those impressionable young minds find in front of them we will never recoup the support we need to be a sustainable business or country. Duncan says we need to teach kids to have critical thinking. In my mind that is paramount for the safety of our children as they get more and more information through their devices and believe the sentiments of others who have the ability to engage more readily than rural people do. I throw out this challenge to all farmers this year, as painful as it might be, invite your urban family members or friends to your table this Christmas holiday season, focus on the children, show them all you can, put your passion and love for what you do and how you live in front of their eyes, let them become engaged in the real rural NZ unfiltered, uncensored and unscripted. They are our future. Look after yourselves and we will see you in the New Year. Brought to you by PGG Wrightson Livestock.


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

On Farm Story

MINE: Mark Olsen bought the 94ha farm at Kairanga in 2016 where he milks 250 cows.

Photos: Chelsea Millar

Taking one step at a time Kairanga dairy farmer and multi-sport enthusiast Mark Olsen is passionate about the positive effects exercise can have on a rural lifestyle. Charlie Williamson caught up with him to talk about his farming operation and the part sport has played in ensuring he enjoys what he does.

T

HERE’S a backwards culture in rural New Zealand with farmers thinking that looking after their animals and farm takes priority over themselves. Farmers are undeniably the most important asset on a farm so when their own health and wellbeing are not taken care of it can quickly translate into a dysfunctional farming operation. Manawatu farmer Mark Olsen is passionate about exercising regularly and believes it should be a non-negotiable part of every farmer’s day. Since he introduced exercise into his routine not only has his overall wellbeing improved but the day-to-day running of his farm as a result of clearer decision-making and increased motivation is also better. “When you’re not having time off you’re not getting that outlet from your day-to-day work. For me it just had to become a non-negotiable if I wanted to see an improvement in my physical and mental health,” Mark says. “It makes me a better farmer and it probably makes me a better person so it makes sense to continue with it.” Mark milks 250 cows on 94 hectares at Kairanga, 10 minutes from Palmerston North. He has always had a strong farming background, having grown up on a farm in southern Manawatu. From an early age he developed passions for sport and farming. He studied for a sports and marketing degree at Massey

University but later decided that wasn’t the career he wanted. “In 2005 I went and did my OE for two and a half years through England and Ireland. I ended up playing rugby in Ireland and working three summers on a large cropping farm in England. “It was there that I thought this farming gig’s not too bad so in the space of those summers I thought I’d come home and give farming a crack. “It was just a case of how I can apply my business brain and progress this farming career as quickly as possible.” So in 2007 he returned to Manawatu where he took the first steps in what was soon to be a rewarding dairy farming career. “My first job was as a farm assistant on a local farm. I finished that and then went straight into a 1200-cow 2IC role in Hawke’s Bay and stayed on that farm for three years progressing to a sharemilking role.” He spent a great deal of time meticulously studying DairyNZ’s best practice resources. They helped him to gain an understanding of the industry and improved clarity around what he needed to do. “I eventually followed my feet down south until deciding I would head back home and try going out on my own. I chose to head south after searching all over for the best sharemilking opportunities at the time. They seemed to be in north Canterbury so I accepted a role there as it best suited what I was after.” Mark spent four seasons in the south, three of them sharemilking for Keith and Jenny Backhouse. He

NOT OPTIONAL: Mark believes in exercising regularly and that it should be a non-negotiable part of every farmer’s day.

says they were hugely supportive, taught him a great deal and were key to him achieving farm ownership. Through sharemilking he built up his equity and sold a 78ha drystock farm he owned to buy his dairy farm in 2016 with an outside equity partnership. He owns twothirds and runs the farm. He bought the drystock farm in 2012 while he was sharemilking to keep his cashflow working for him. The income from his sharemilking business was used to fatten beef cattle on the drystock unit.

The road to farm ownership proved to be an eye-opener. The process uncovered the harsh realities of how farmers push themselves to get the best returns and increase production. “When I started out I saw how hard some older dairy farmers were pushing without taking care of themselves and it just wasn’t sustainable. “They push themselves more and more and at some point something has to give. “I had this same approach when sharemilking.”

And he adopted a similar mindset when starting on his own farm. “In my first year I did the entire season on my own – calving, mating and the whole lot. “But I found that trying to do everything myself was not a good thing. I burnt-out and I felt that compromised my performance on-farm as well as decisionmaking. “Through trial and error I came to understand that this wasn’t the best approach to farming. “When you’re young you have


On Farm Story

the energy and you think that you can just do everything. You aim for bigger and better without focusing on refining what you’ve already got.” The usual farm policy now is to employ one staff member to help him. Instead of putting his time and effort into increasing production he focuses on his system and tweaking that to achieve maximum returns. He believes a large proportion of Kiwi dairy farmers are too focused on increasing production and tend to lose sight of what they already have. Upscaling does not necessarily mean an increase in profit, he says. He milks the herd through a 28-aside herringbone shed which is basic with no bells and whistles but it is efficient. “Hopefully, down the track I’ll look to progress with some sort of gains in efficiency around the shed. “There’s no modern feature in it yet so there’s probably room to speed up the milking through the use of automatic cup removers or teat spraying.” The herd produces 100,000 kilograms of milksolids each year and his target for this season is 105,000kg MS. It is achieved through careful pasture management and will be refined over time with herd improvements. Though he could produce more milk by increasing supplementary feed that would not necessarily be profitable or sustainable. Increasing input in and around on-farm pasture is proving to work for him. “I believe the herd is capable of producing more milksolids, maybe 120,000 to 130,000kg MS per year but that would require a tractor, a mixer wagon and inshed feeding, which means more work and expense.” The farm is a System 2 with a strong focus on high per-cow and hectare production. He also has a strong regrassing programme with 15% of the pasture regrassed annually. That is done through grazing stock on crops such as

fodder beet and chicory, all of it grown on-farm with 3ha of fodder beet and 11ha of chicory fed from summer to winter. Because of his reliance on pasture he uses only 20-30 tonnes of supplementary feed. “Ideally, we try to do weekly farm walks and prefer using traditional paper feed wedges to track pasture. I top paddocks to maintain quality in early summer but try to do only one round of this.” His decision to focus on herd management and a low-cost farming system has been heavily influenced by the experience he gained earlier in his career. “I think, essentially, I enjoyed the challenge of large-scale sharemilking because it enabled me to develop my professional skill set managing teams of people,” he says. “This taught me a lot about what I wanted in my own farm system, which was to be able to achieve some personal goals in sport in conjunction with farming. “Being passionate about cows and grass I think the low-cost System 2 approach essentially helped achieve both personal and business goals.”

Setting a budget and sticking to it helps to identify the gains I’m getting from a low-cost system. Mark Olsen Farmer About half the herd is grazed off farm in Hawke’s Bay during winter. He would not be able to run the low-cost system if they were wintered at home because of the extra feed costs and significant damage to pasture during a wetter-than-usual winter. The cows return home before the start of calving on July 20. He keeps 20% for replacements and all calves are tube-fed gold

ONE MAN AND HIS DOG: Mark works the farm largely on his own but has his trusty dog Tess to keep him company.

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

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RESTOCKING: The farm keeps 20% replacements, which are weaned at 90-100kg then sent off-farm to graze.

colostrum as soon as possible after birth then twice a day and they move to once-a-day feed from about 10 days old. Target weaning is 90-100kg. They will then go grazing in December, returning as calf heifers. Mating begins on October 15 with four and a half weeks of AI using premier sire semen through LIC. Hereford bulls are run with the herd till early December. Over the years he has simplified his operation, freeing up time he uses to look after himself better, which, in turn, enhances the farm business and says most farmers could do the same. “I’m not too keen on overcomplicating it and have found that sticking to the basics seems to work well,” he says. “Starting out we were focused on debt reduction but I know heading into the coming years there will be some capital expenditure to make the farm run more efficiently and again to keep it compliant. “I’m milking 250 cows and trying to do that on the cheapest, most sustainable system I can. Having a good grasp of and keeping a close eye on financials has played an important part in streamlining the system. “Financial analysis of the farm is learning what industry averages are for each farm working expense and always trying to make improvements to get ahead.” His target is to consistently have farm working expenses below $3/kg MS. His simple approach to farming also allows more time to focus on his sport, having now completed a coast to coast, an Iron Man and two half Iron Mans. “If I wasn’t sticking to this system it would lead to burn-out. I could still participate in some sporting events but not to the extent I am right now.” The nature of farming has changed with the use of machinery and technology leading to less physical activity so farmers are developing more and more health issues. Physical health issues such as back problems, respiratory issues

PASSIONS: Mark was raised on a dairy farm in Manawatu but decided to pursue his passions for sports so did a sports and marketing degree at Massey University but decided to go farming instead.

and farm-related injuries have been reported as leading factors in causing mental health problems. Therefore a farmer who focuses on keeping active is looking after his overall wellbeing. “We look after our cows and our grass and put that first above ourselves but that method is really backwards. You’ve got to look after yourself so you can look after your cows and grass to that higher standard.” Throughout his journey to selfimprovement his partner Johanna Smith has been fully supportive. She has noticed improvement in the entire farming operation as well as his overall wellbeing. Mark says that though it was challenging getting to his current fitness level, enlisting a fitness coach helped speed up the process. “It’s not hard to get into it even just starting by going for a walk and progressing to running if

that’s where your fitness level is. “A common thing is people saying they don’t have the time and energy for it. But the thing with exercise is that it gives you energy. “So from just making that exercise a non-negotiable part of your daily routine you actually find yourself having more energy. “I now find to the extent that if I don’t exercise daily my body doesn’t function as well.” He believes the primary sector is in desperate need of a culture change when talking about health and wellbeing. He wants to see improvement and for famers to take it much more seriously. “Everyone is talking about having a sustainable approach to farming but they’re not incorporating themselves into that overall picture of sustainability.” >> Video link: bit.ly/OFSolsen


World

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

Food system needs big changes he told the Global Food Systems Summit. “We have a system where the unexpected consequences of doing a good thing are that people are getting sick from the food we eat, biodiversity has been impacted, there is too much nitrogen in our rivers, too much ammonia in our air and we now realise the food system creates 30% of our carbon. “Those are problems we have to resolve.” Though Dimbleby was clear he does not want to be radical for the sake of it, he said the scale of change the system needs is very large. He envisages Agrievents 2019 the government will need to use two or three big policy levers, Saturday 5th December such as paying for GEA iXPRESS Open Day certain outcomes Venue: Paul and Julie Davis’s Farm, Mowbray Road, Waharoa. Supply #77277 and regulating Time: 11am - 1pm or banning as See how a good milk harvesting system like the Davis’s can yet undefined improve labour efficiencies and cow health, while increasing things to bring throughput and milk returns. about such a Guest speaker: Natasha Maguire from Farm Medix will be on-farm discussing how you can take a targeted approach to transformation. treating mastitis. Talks have Complimentary BBQ lunch provided. been taking More: bit.ly/iXPRESS-open-day place with all the Contact: Grant Coburn, GEA Area Sales Manager South major parties Waikato 021 980 013 to try to ensure Saturday 7th December the strategy can Whangarei A&P Show survive any future Venue: Barge Showgrounds political storms, Time: 9am- 4.30pm especially given Come along to the Show for the annual competitions, stalls, great food, performances and demonstrations. the high passions Visit: whangareishow.co.nz around certain issues under AWDT Understanding Your Farming Business & Wahine consideration. Maia, Wahine Whenua A Citizens’ 3 full-day workshops and an evening graduation ceremony run over four months. Equips and supports women involved Assembly will in sheep and beef farming to lift business performance. be convened Registrations for 2020 programmes are now open, visit the in the new year website for more information and to register. to give any Locations and dates (3 modules & graduation): proposed changes • Drummond: 5 Feb, 5 Mar, 2 Apr & 30 Apr • Reporoa (WMWW): 12 Feb, 11 Mar, 7 Apr & 6 May democratic • Tarras: 13 Feb, 12 Mar, 8 Apr & 7 May consent. • Raetihi: 13 Feb, 12 Mar, 8 Apr & 7 May Citizens’ • Westport: 19 Feb, 18 Mar, 15 Apr & 13 May assemblies give • Hokitika: 20 Feb, 19 Mar, 16 Apr & 14 May people, chosen to Website: To register visit www.awdt.org.nz/programmes Contact: keri@awdt.org.nz or 06 375 8180 for more info reflect the wider population, the

FOOD Strategy chief Henry Dimbleby wants a fundamental change of Britain’s food system that will stand the test of time. The dynamics of the current system, designed to produce maximum food after two world wars, does not work in the modern era, he said. He confirmed the issue of meat is being considered by his team. His own restaurant chain, Leon, from which he has taken a year off to put the strategy together, has moved from serving 70% meat 10 years ago to being 60% vegan now,

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agrievents

AWDT Future Focus programme Programme designed for red meat farming partnerships to plan their business together. 2 full-day workshops delivered over two months. Delivered in 20 locations around NZ, registrations for 2020 programmes are now open. Visit the website for more information and to register. Locations and dates (2 modules): • Geraldine: 25 Feb & 24 Mar • Darfield: 26 Feb & 25 Mar • Rotorua: 10 Mar & 7 Apr Website: To register visit www.awdt.org.nz/programmes Contact: keri@awdt.org.nz or 06 375 8180 for more info

time and opportunity to learn about a topic to arrive at workable recommendations. It is not yet clear who will be speaking to the assembly but Dimbleby said the most important thing will be who decides what gets said. “These are quite fundamental things and in order for the Government to act on a lot of them they need consent, otherwise you will have the Gilet Jaunes,” he said. And strength of public opinion around food and farming standards should not be underestimated when it comes to securing new trade deals that have the potential to undermine British standards, former Conservative party leader Lord William Hague has said. While he admitted most British politicians do not understand the importance of agriculture they do listen to the electorate and politics is entering a period where the sector will become more politically sensitive and important. Speaking at the National

Farmers’ Union Henry Plumb Lecture, Lord Hague, who left the government four years ago, said “We have never really had to worry about the security of our food supply until the analysis of a no-deal Brexit. We have not had to worry in decades. “Expect more political engagement in the next year regarding food.” Asked whether he thought agriculture could be a sacrificial lamb in the pursuit of trade deals with countries such as the United States, he said the industry will find sympathetic ears in the government. ‘“Do not underestimate British public opinion on this, for example animal welfare and pesticides. “You will have to demonstrate to public opinion what is the right course of action. “There is no point in setting very high standards and then undermining them by importing food where those standards are not met. “You may have more allies on that than you think.” The former Foreign Secretary,

who served as an MP for 26 years, said there is a lack of expertise in government when it comes to negotiating trade deals because it is such a long time since it had been forced to do so. He likened the civil service to a dented Rolls-Royce that needs to polish up its skills and learn new tricks quickly. Lord Hague said the climate change emergency is one of the biggest concerns globally and paid tribute to the NFU’s aspirations to become net zero emissions by 2040. “It is vital that agriculture is at the forefront of responding to this and is not swept away by it,” he said, adding it also brings opportunities for the industry to forge closer links with the United Kindgom’s worldleading academics and research institutions. Agritech, including the use of gene editing, vertical farming and artificial intelligence, also make the industry an exciting prospect for young people looking to carve out their future careers. UK Farmers Guardian

People want to know where meal comes from

Red Meat Profit Partnership- Farm Business Transition and Succession workshop series Designed to take farm businesses through transition and succession, the series includes three half day workshops spread over a three-four-month period followed by a one-onone clinic. Workshops begin March 2020 in 20 locations across New Zealand, fully funded for sheep or beef farmers. For more information and to register go to www.rmpp.co.nz. Red Meat Profit Partnership- Aspiring to Farm Business Management and Ownership workshop A one-day workshop developed for individuals or couples wishing to manage or own a sheep or beef farm business. Available in 10 locations across New Zealand from MarchJune 2020, the workshop is fully funded by RMPP. For more information and to register go to www.rmpp.co.nz.

LK0096008©

Should your important event be listed here? Phone 0800 85 25 80 or email adcopy@globalhq.co.nz

NEEDS SAVVY: Lord Hague says there is a lack of expertise in government to negotiate trade deals.

interested in where their food CALLS for transparency in comes from.” food systems do not mean Retailers are seeking everyone wants to know shorter supply chains, with what is in their beef burgers even large food but people want companies such to know they as Unilever being can access the aware trust has information if drifted away from necessary. them. Food marketing That means expert Professor they have allied David Hughes of themselves with Imperial College, Professor David regenerative London, selfHughes agriculture while styled as Dr Food, seeing farmers as spoke about future part of the solution, not part food trends, including why of the problem, with social reducing risk from shorter purpose driving the largest supply chains is good for players. everyone, as he delivered the Farmers need to get used Bledisloe Lecture at the Royal to these trends, he said, Agricultural University. adding children are driving “We are entering a new changes. era when more people are

“Go forward a generation, what proportion of our children are going to be vegetarian? Higher than it is now.” Livestock farmers, in particular, need to adapt to the pressures ahead. “This is not a scientific issue, it is an emotional issue. “It is not going to go away – if you are in meat or eggs, consumers are focused on the impact of that product on their health, the environment and on animal welfare issues,” he said. However, that provides huge opportunities where livestock farmers can drive a point of difference with imported products. “Farmers here have good stuff, with consumers

wanting better meat, so celebrate that. “Keep telling people your story, play to your strengths. It is long term but consumers trust United Kingdom farmers.” He called on governments to learn from the past, adding “Legislating on welfare, as happened with the pig industry 20 years ago, but then allowing in imports of a lower standard, can be devastating.” And even if the domestic market provides potential, farmers should get ready for more labelling around climate friendly diets, reflecting environmental standards of varying complexity. UK Farmers Guardian


World

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

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UK call for sheep meat import ban ONE of Britain’s biggest lamb exporters has warned against a no-deal Brexit, saying it threatens to devastate the United Kingdom’s sheep industry while a farmer group wants a ban on sheep meat imports. Tariffs on exports if the UK leaves the European Union without an agreement could see the sector literally become the sacrificial lamb of a no-deal Brexit, Mike Gooding, director of the farmer-owned meat processor and exporter Farmers First, said. A suggested 40% tariff will render UK lamb exports uncompetitive. That is the sort of tariff on exports expected if the UK reverts to trading under World Trade Organisation rules following a nodeal Brexit. “The implications of what we are talking about are very straightforward and entirely predictable,” he warned. “Essentially, Brexit risks excluding UK produce from the EU marketplace. A no-deal Brexit would result in the same outcome but with that risk greatly increased.” Farmers First, owned by 2750 farmer shareholders, has two abattoirs that can slaughter 30,000 sheep a week. The business processes about 10% of the UK’s lamb and exported about 1m sheep worth almost £100m last year, including to 12 EU countries.

“It is a sizable business entirely focused on the development of market opportunities and it sits right at the centre of export trading,” Gooding said. “We are dealing with the realities on a day-to-day basis for our farmer-producing shareholders.” To put a no-deal Brexit in context, Gooding said a French customer pays about £100 for a standard lamb carcase. A 40% tariff would increase the cost to £140. “In a price-sensitive market nobody is going to pay £140 for a lamb across the continent. “In reality, a movement of very few euro cents per kilo is the difference between a French customer buying UK product or a lamb from New Zealand or Australia or even Ireland.” Gooding acknowledged sterling might devalue further in the event of a no-deal Brexit but if it fell by 40%, sufficient to offset any tariff increase, the challenges of the UK sheep sector would be well down the list of government priorities. “That isn’t meant to be a flippant comment,” he said. “In the greater scheme of things, compared to other sectors there is a very real danger that UK farming and the sheep sector particularly may literally become the sacrificial lamb of Brexit negotiations.” With about 35% of lamb production exported to the

KEEP OUT: A ban on sheep meat imports is needed to protect British farmers, the National Sheep Association says.

EU a lot of sheep will be left looking for a market in the UK if British farmers and processors are priced out of the European market because of tariffs, putting downward pressure on prices. “Basic economics shows that decreased demand and increased supply mean prices will fall. That is exactly what will happen.” Farmers First is pursuing opportunities in non-EU markets including the Far East and the Middle East. But they will take time to develop and will not take the sort of volume exported to Europe. The UK breeding ewe flock reduced by about 30% in the 2017-18 season, in part as farmers reduced sheep numbers in response to an uncertain future. “We would expect to see that sort of fall in breeding numbers continue,” Gooding said. There would be a substantial restructure in sheep farming, he added. The farmers most likely to survive are the most efficient producers who understand their costings, have low inputs and maximise their use of forage. “My own personal view is that there will be many fewer farmers managing what sheep there are in larger flocks – possibly running

across multiple holdings. This will bring some people opportunities but it also means there will be casualties along the way.” The Department of Environment, Food and Rural Affairs says it will intervene to provide direct support for some farming sectors if needed under a no-deal Brexit and the government will ensure any disruption is minimised and has contingency plans in place to minimise any disruption to farmers. Leaving the EU without a deal must be avoided at all costs, the National Sheep Association, which has called for urgent action to protect the UK sheep industry, said. The EU is the destination for some 96% of UK sheep meat exports. Association chief executive Phil Stocker said “Such a scenario would be disastrous for our industry at any time but late October is when a huge peak of UK lamb will be reaching the market.” A plan is needed to ensure capacity and confidence is maintained if UK producers lose access to the EU market – even for a few months, Stocker said. Doing so will ensure exporters

can still operate once market access is restored. “There are a number of steps that are immediately essential and cannot be put off,” he said. “In the event of an acrimonious no-deal we could still be in a position where access to the EU is entirely closed. If not, then tariff relief is our preferred option to keep the market functioning.” The association also believes steps must be taken to temporarily close the UK to sheep meat imports if UK producers are unable to export – with a focus on getting all domestic production into the UK’s domestic markets. But it warns that will be difficult. “If plans are put in place now to invest in cold storage capacity then, using public procurement markets such as the armed forces, schools and hospitals, we can make the most of what would otherwise be a catastrophe,” Stock said earlier this year. “What absolutely must not be allowed to happen is a mass cull of lambs with no attempt to get them into the food chain. “This would be an obscene waste and would have future capacity impacts for our sector. It can be avoided if the right steps are taken now.” UK Farmers Weekly

Furious farmers pan science claim FARMING organisations in Britain have reacted angrily to climate change comments by the Department of Environment, Food and Rural Affairs former chief scientific adviser Professor Sir Ian Boyd who said the farming system is very inefficient and in need of very significant transformation. Boyd, who held the Defra post from 2012 till earlier this year, suggested intensive high-tech cattle and sheep rearing systems are more carbon-efficient than traditional, extensive pasturebased ones and called for a change in the nation’s red meat eating habits. “All the evidence tells us that intensive farming done well is much more environmentally friendly than extensive farming,” he said. National Farmers Union Cymru president John Davies said he fundamentally disagrees and extensive, grass and clover systems are synonymous with producing high-quality protein.

“I see these systems becoming even more crucial in ensuring we meet our aspiration of being the most climate-friendly farmers in the world,” he said. Davies pointed to United Nations research showing beef production in western Europe is 2.5 times more carbon-efficient than the global average. “Our aspiration to reach net zero greenhouse gas emissions for agriculture by 2040 is just one statement of our commitment to addressing the big global challenges we all face. “This will require a portfolio of policies and practices all working in combination and making our livestock systems more productive and efficient is key, alongside maintaining and enhancing carbon storage in our farmed environment – grassland, hedgerows and trees – and boosting renewable energy and the bio-economy to avoid greenhouse gas emissions from fossil fuels.

“We are also clear that we will not halt climate change by limiting Welsh food production and offshoring it to countries across the world, which may not have the same environmental conscience or ambition to reduce their climate impact. “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, highquality, affordable food for society and underpinning the Welsh food and drink sector which is Wales’ biggest employer.” The National Beef Association says farmers are being used as a scapegoat for climate change. “Two thirds of United Kingdom farmland is grass and a huge percentage of this isn’t able to be cultivated,” a spokesman said. “Using grass to feed livestock when it can be used for nothing else makes more sense than

importing beef or soya from where rainforests once stood. “It is illogical to import beef that has been produced intensively and caused severe environmental damage, such as that seen in South America, when we can turn grass on land that couldn’t be used to grow crops into a nutritional, sustainable, more environmentally friendly protein source. “Organic matter from livestock production is much needed in depleted soils and has a valuable use in arable crop production, driving us to be less reliant on chemical fertiliser. “There is room for both indoor and outdoor systems, both of which demonstrate higher welfare than other countries,” he said. Research is increasingly showing the health and environmental benefits of extensive grass-based livestock production, the National Sheep Association chief executive Phil Stocker said. “The public is getting caught

in a crossfire of conflicting information but by taking the debate to a grassroots level and giving consumers the facts and right to choose, sustainable agriculture involving grazing animals will win out. “Now is the time to recognise that sheep can pay an active role in helping to heal the climate when kept in a balanced and considered environment. “Boyd may be an eminent scientist but our view is that he still doesn’t understand the difference between a natural carbon cycle involving grazing animals and that of a carbon cycle based on releasing carbon from fossil fuels. “He is falling into the trap of looking at carbon and climate change in isolation and not considering the multi-functional expectations that society has from land, such as naturally produced and nutrient-dense food and wildlife species recovery.” UK Farmers Weekly


Bideford 1844 Te Ore Ore Bideford Road

Domett, North Canterbury 47 Hurunui Mouth Road

Rosebank

4

Superb country living - it doesn't come any better. 19 minutes north east of Masterton, situated in the heart of the picturesque Bideford Valley, is this majestic property consisting of 83 hectares. Enter through the tree lined avenue to approach the magnificent, beautifully appointed homestead wonderfully situated between two terraces of 60 hectares of very fertile flats. Farm Cottage, woolshed, implement sheds, 14 hectares of mature forestry, phenomenal cropping and finishing flats. It's all here. Ideal for Bed and Breakfast. Viewing by appointment.

Tender (will not be sold prior) Closing 4pm, Thu 12 Dec 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

bayleys.co.nz/3150837

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EASTERN REALTY (WAIRARAPA) LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

The complete small farm • An aesthetically-pleasing 144.2721 hectare North Canterbury finishing farm • Good balance of contour • A tidy property with excellent shelter • Well subdivided • Quality soils, good fertiliser history • Full array of farm infrastructure • An excellent home, fully renovated with recent extensions • Approximately 7.5km from Cheviot, Area School and amenities and around one and a half hours drive from Christchurch City • This lovely property is an ideal first farm or would be a great adjunct to a larger unit

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For Sale by Deadline Private Treaty (unless sold prior)

1pm, Thu 12 Dec 2019 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Peter Foley 021 754 737 peter.foley@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/5511255

NEW LISTING

North Canterbury 441 Blythe Road, Motunau

Kirwee 319 Tramway Road

Kilmarnock

'Woodlands Farm'

A rare offering combining scale, balance of contour and aspect, with plenty of future potential. Kilmarnock is a total of 1,913.5798ha and in recent years has undergone a large redevelopment project, which is currently still in progress. This has included some re-grassing on the downs and flats, with significant potential still available through fencing, water reticulation and forestry. Kilmarnock has recently been run as a beef breeding, trading and fattening operation and presents a wonderful opportunity to invest in a large-scale landholding. Our vendors will also consider offers on separate blocks.

bayleys.co.nz/5511270

For Sale by Deadline Private Treaty (unless sold prior)

4pm, Mon 16 Dec 2019 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Peter Foley 021 754 737 WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

243.586ha of freehold property, comprising approximately 180ha used as a milking platform with the balance used for support. A further 123.2241ha of lease land adjoining enables a milking platform of up to 303ha, with a further 216ha that could also be available to a new owner,which gives this property great scale. 50 bail automated rotary dairy shed. Irrigation by pivots, sprinklers and a Roto Rainer. Water from wells and CPW water and nutrients covered under the CPW Schemes environmental consent. Numerous calf sheds and ancillary buildings including four houses on the dairy farm, plus a manager’s house on an adjacent 16 hectare property, which is used as dairy support.

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Deadline Sale (unless sold prior) 4pm, Mon 16 Dec 2019 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Craig Blackburn 027 489 7225 craig.blackburn@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/5511256

bayleys.co.nz


RURAL 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Self contained dairy

Multiple options

OPEN DAY

AUCTION

WEB ID MOR01975 WHITIKAHU 760 Whitikahu Road VIEW Wednesday 4 Dec 11.00 - 12.00pm If you appreciate quality and location this is the property AUCTION 11.00am, Thu 12th Dec, 2019, (unless sold prior), Property Brokers, Morrinsville for you. 140.6 ha of quality land approximately 15 minutes from Hamilton and 1 hour from Auckland. Fully self-contained with approx. 320 milking cows, 70 rising 2 year heifers and 70 rising yearlings. This property grows all its own crops of grass silage, green feed maize and silage. Approximately 120 ha is flat consolidated peat and the balance gently undulating mineral soils. The quality of the peat soil is such that some years ago 4 commercial potatoes and of course the maize crops Stuart Stobie grown on peat soils have no equal. Mobile 021 776 173

AUCTION

Office 07 280 5534 stuart.stobie@pb.co.nz

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Dairy heartland 209 ha

WEB ID TUR72525 TAUMARUNUI Tapuiwahine Valley Road View By Appointment AUCTION 2.00pm, Wed 18th Dec, 2019, (unless sold prior) • 213.57 hectares approx. 170 effective • 50% very easy contour • Woolshed and yards • Airstrip with 60T covered bin • Solid fertiliser history

AUCTION

This is a super property that could lend itself to dairy grazing, stock finishing or breeding and finishing as it does now. The farm has good natural water supplies and some reticulation also. It sits in an east to west lying valley with the infrastructure placed at the base of the farm. Located between Taumarunui and Te Kuiti its location adds to its appeal as a run off or finishing block.

Katie Walker

Mobile 027 757 7477 Office 07 895 7123 Home 07 895 7112 katiew@pb.co.nz

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First farm calling 105 hectares

DEADLINE SALE

WEB ID HKR70905 HOKITIKA 192 and 306-351 Johnston Road View By Appointment We're delighted to offer for sale this 209-hectare self-contained dairy farm located in the Kowhitirangi Valley, 25mins from Hokitika. 5-year average production of 122,000 kgMS from 320 cows with replacement stock grazed on farm. The property features an excellent range of farm improvements: • 34 ASHB with meal feeding and cell sense • 250 cow herd home • Full range of shedding • 2 x 4 bedroom homes + cottage Gareth Cox

$4,900,000 + GST (IF ANY)

Mobile 021 250 9714 gareth@pb.co.nz

pb.co.nz

WEB ID HKR73009 HOKITIKA 1575 Kaniere-Kowhitirangi Road View By Appointment DEADLINE SALE closes Thursday 12th December, 2019 at This 105-hectare dairy farm positioned in the heart of 4.00pm, at Property Brokers Office 22 Weld Street Hokiitika the Kokatahi/Kowhitirangi Valley only 20 minutes from Hokitika boasts excellent fundamentals of free draining and productive soils, excellent fertility and shape. Milking 230 cows with average production for the past 6 seasons of 76,010kgms, on a low cost grass based system. Farm improvements include an older 12-aside herringbone dairy shed, large concrete feedpad, numerous implement sheds plus an office/workshop. 4 The main homestead is a spilt level 4 bedroom house. Our Vendors have undertaken significant development Gareth Cox in recent years. Mobile 021 250 9714 1

DEADLINE SALE

gareth@pb.co.nz


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farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – December 2, 2019

A real change in real estate. The Property Brokers and Farmlands partnership means great things for provincial real estate* Together our combined strengths complement each other to create a unique offering: - A nationwide network from Kaitaia to Invercargill - Over 700 staff across 64 locations dedicated to real estate - A deep understanding of the land with market-leading expertise in property sales and marketing Bigger networks, more buyers, better results. For more information call 0800 367 5263 or visit pb.co.nz/together *Farmlands will continue to administer its property management portfolio and its West Coast real estate sites, pending Commerce Commission clearance. Property Brokers Ltd Licensed REAA 2008

TENDER

|

MOUNT VIEW GOATS

354 Paraite Road, Paraite, New Plymouth Mount View Goats, in its 6th year of supply, holds 63,000 kg of Milk Supply Rights. Having consistently milked 500 mixed age goats and having averaged 112 kgMS per goat. This season stock numbers have increased to 560 mixed age goats. With infrastructure being relatively new and an exceptionally tidy 40 aside rapid exit herringbone milking shed, milking time is approx. 1 hour. Loafing barns have capacity for approximately 800 goats and plans are in place to develop an outdoor loafing area. Other farm buildings include a 5-bay implement shed and comfortable home. This operation sits on an 11.6Ha freehold title and beside this is a 4.11Ha West Coast Lease bareland block that complements the farming operation. Milk pay-out is consistent and has increased annually over the past thirty years with the future being bright. Call today to view. Tender Closes:

4pm, Friday 6 December 2019 at McDonald Real Estate Ltd, Inglewood

Contact:

Brent Dodunski - 027 498 4346 Peter McDonald - 027 443 4506

Proud to be together

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THE DESTINATION FOR RURAL REAL ESTATE

Land is the biggest asset to any farming business so it pays to stay up to date with the market. Connect with the right audience at

farmersweekly.co.nz/realestate

colliers.co.nz


End of an Era Available for the first time in several generations, retiring vendors say it is time to sell their faithfully farmed and well presented dairy unit, nicely situated approx 10 kms north of Otorohanga and 16 kms south of Te Awamutu  1234 State Highway 3, Otorohanga  81.3 hectares in 3 titles  contour ranges from flat to easy rolling to medium hill  soil types incl mairoa ash, silt loam and a small area of peat  well subdivided and raced, easy walking for the herd  a good water reticulation system  consistent fertiliser applications over many years  approx 210 cows, 5 year average of 84,221 kgs ms  spacious 18 a/s herringbone; a good range of farm buildings

Tenders close 4.00 pm Thurs, 19 Dec 2019

Open day: Thurs, 5 Dec - 10.00am to 11.30am

Tenders close 4.00 pm Thurs, 19 Dec 2019

Open day: Thurs, 5 Dec - 1.00pm to 3.00pm

 substantial 3 brm homestead, very good living areas, in excellent condition; single garage with office attached, v. attractive landscaped gardens with a backdrop of mature trees; a good 3 brm second dwelling with separate garaging  an excellent district enhanced by good options of schooling with bus at gate for primary at Kio Kio and secondary at Te Awamutu On Farm biosecurity protocols will apply vehicles and footwear to be clean prior to arrival

web ref R1312

Brian Peacocke

021 373 113

Prime Dairy Quality Heifer Grazing Two adjoining properties, one owner, situated in an excellent location within the Tokanui / Te Mawhai district, approx 12 kms south of Te Awamutu, available as per the options below Option 1

     

227 Cruickshank Road, Te Awamutu 72 hectares dairy unit flat to rolling contour, mairoa ash soil very well fenced, raced, fertilised with v.g. water reticulation being farmed in conjunction with adjoining dairy unit good 18 a/s herringbone, not milked in since last season but in good operating condition; v.g. facilities with a lined effluent pond  full range of farm shedding  2 good 3 bedroom homes Option 2

    

210 Cruickshank Road, Te Awamutu 67.34 hectares dairy support unit easy rolling running into steep clean hill at rear of farm well fenced, raced and watered; v.g. fertiliser history current land use - growing out dairy heifers for adjoining dairy farm - could also grow maize successfully  disused cowshed, older farm shedding  1 x good quality 3 brm home with separate garage Option 3

 combination of the above two properties  139.34 hectares - Cruickshank Road, Te Awamutu  a great opportunity for a fully self contained dairy unit with scope for farming additional beef cattle & growing maize

 very well farmed and well set up for continuation of existing land use being dairy and heifer grazing

 3 good dwellings plus a full range of farm shedding  a first-class location with v.g. options for schooling On Farm biosecurity protocols will apply vehicles and footwear to be clean prior to arrival

web ref R1313

Licensed REAA 2008

Brian Peacocke

021 373 113

phone

07 870 2112

office@pastoralrealty.co.nz

MREINZ


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farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – December 2, 2019

07 883 1195 Farm & Lifestyle Sales Te Awamutu Dairy Farm

TENDER

OPEN FARM: Thursday 5 December 11.00am - 12.00pm Cambridge Road 64.8 hectares (subject to survey) ▪ ▪ ▪ ▪ ▪

Web ID RAL682

Situated less than 7kms from Te Awamutu and only 19kms from Cambridge. 30 ASHB with cup removers, auto plant wash, Protrack auto drafting, 1.3m litre lined effluent pond, concrete silage bunkers, feed pad for 270 cows. Offered for sale without a house, build your dream home on this dream farm. High quality races going to 27 paddocks with free draining Mairoa Ash soils and gentle contour. This farm provides plenty of options, keep it dairy or diversify into kiwi fruit or horses.

David McGurie

M 027 472 2572 E davidm@ruralandlifestylesales.com

Tenders close on Friday 13 December at 4.00pm To the Rural and Lifestyle Sales Office 29 Main Road, Tirau

Steve Mathis

M 027 481 9060 E stevem@ruralandlifestylesales.com

www.ruralandlifestylesales.com 06 323 3363 Farm & Lifestyle Sales “Ederdale”

Kimbolton

AUCTION

OPEN FARM: 5 December 1.00 - 3.00pm 213.26 hectares (526.98 acres) 169 hectares effective

▪ Situated only 37kms north of Feilding and 9kms from Kimbolton. ▪ 3 stand woolshed with attached covered yard. An excellent quality facility and 1000 Lambs/600 Ewes NP undercover. ▪ 4 bedroom home with extensive northerly views. Large family lounge, separate dining room and downstairs/rumpus room and garaging. ▪ Water supply comes from the Kiwitea water scheme with 14 units. Water troughs in all paddocks. ▪ “Ederdale” is well tracked throughout for paddock access with one main laneway going to the 19 hectares of excellent free draining river flats.

To be Auctioned on Wednesday 18 December at 11.00am 56 Stafford Street, Feilding Web ID RAL713

Richard Anderson

M 027 543 1610 E richarda@ruralandlifestylesales.com

Robert Dabb

M 027 255 3992 E robertd@ruralandlifestylesales.com

www.ruralandlifestylesales.com

Superb Soils, Productive Pastures

OPEN FARM:

Quad bike and helmet required

932 Rangiwahia Road

06 323 3363 Farm & Lifestyle Sales $6,995,000 +GST

Wednesday 4 December 10:30am-midday

672 Ruawhata Road, Mangatainoka

226.32 hectares

▪ River silt doesn’t come much richer than here and combined with reliable Tararua District summer rainfall the pastures are producing up to 16 tonne dry matter/ha ▪ 54 bail rotary dairy, concrete platform, cup removers, Protrack system ▪ Expecting 210,000kgMS this season from 580-600 cows ▪ All Resource Consents in place, and it is not in a Horizons ‘Priority Catchment’ ▪ Three houses and a wide range of support buildings including a 600 cow feedpad ▪ A great network of races to the 45 paddocks, the majority within 1.5km of the dairy ▪ Well located around 10km from Pahiatua and 30-35 minutes from Palmerston North

At $34,000/ effective ha it must also appeal for beef and cropping enterprises. Comprehensive Information Memorandum available on request

Richard Anderson

M 027 543 1610 E richarda@ruralandlifestylesales.com

Web ID RAL711

Robert Dabb

M 027 255 3992 E robertd@ruralandlifestylesales.com

www.ruralandlifestylesales.com


Real Estate

FARMERS WEEKLY – December 2, 2019

’RATA’ - QUALITY SOILS AND CONTOUR 26 Putorino Road, Hunterville, Rangitikei Comprising a high proportion of Kiwitea silt loam as well as other quality soils around 75% of which is assessed as croppable contour, with the balance medium hill, enabling an integrated system of self-contained dairying/beef cattle, as well as growing supplement for associated dairy farms. The central 60 bail rotary shed with ACRs and adjacent feed pad are able to accommodate all of the 650 cows currently milked. The property has plentiful stock water, including allocation and consents for up to 235 cubic meters of stock water per day. In 13 titles with two dwellings.

395 hectares Video on website

nzr.nz/RX2081197 Tender Closes 11am, Tue 17 Dec 2019, NZR, 20 Kimbolton Road, Feilding. Peter Barnett AREINZ 027 482 6835 | peter@nzr.nz NZR Limited | Licensed REAA 2008

farmersweekly.co.nz/realestate 0800 85 25 80

QUALITY FLATS & MEDIUM HILL BLOCK 867 Rangatira Road, Hunterville, Rangitikei ’Mellington’ offers a great balance of country quality Kiwitea silt loam flats and 108ha of medium hills running along one side, enabling this dairy farm to be operated as a largely selfcontained grazing unit. A highly automated 60 bail rotary dairy shed and integrated large feed-pad, have aided this property to average over 335,000kg MS as it has recently transitioned from a year round to spring calving system. Stock and dairy water sources include both the Hunterville and Mellington water schemes. Considerable areas have recently been cropped and re-grassed with fencing upgrades. 4 dwellings and 9 titles.

45

368 hectares Video on website

nzr.nz/RX2085432 Tender Closes 11am, Tue 17 Dec 2019, NZR, 20 Kimbolton Road, Feilding. Peter Barnett AREINZ 027 482 6835 | peter@nzr.nz NZR Limited | Licensed REAA 2008

06 323 3363 Farm & Lifestyle Sales Meeting the Market

OPEN FARM:

$6,952,000 + GST

Wednesday 4 December 1:00 - 2:00 pm

461 Kiritaki Road, Dannevirke

193.12 hectares

▪ The centrally located 54 bail rotary dairy is as neat as a pin with the furthermost paddock only 1.2km. Concrete platform, in-shed feeding, ‘Wetit” teat management ▪ Feedpad alongside the dairy plus two 250 tonne silage bunkers ▪ Three year average of 230,000kg milksolids under a system 3/4 ▪ Regular pasture renewal program and excellent soil fertility ▪ Impressive 400m² four bedroom home with office, two en suites, double glazing and 3 heat pumps. Two other 4 bedroom homes. Superb 6-bay workshop

The vendors have taken great care in developing this attractive farm and at $30/kgMS is priced to sell

Richard Anderson

M 027 543 1610 E richarda@ruralandlifestylesales.com

Web ID RAL720

Robert Dabb

M 027 255 3992 E robertd@ruralandlifestylesales.com

www.ruralandlifestylesales.com

2403 Ohura Road, Taumarunui

Entry Level Grazing in Matiere

Located 35 kilometres North west of Taumarunui, this attractive grazing block in the much liked Matiere Valley is well set up for dairy grazers and or fattening/ finishing cattle. 178.3399 hectares (more or less) 440 acres Good balance of contour including 29 hectares of flat to gentle rolling pastures Comfortably wintering 350 cattle Troughed water to all paddocks Good fertiliser history Solid 4 bedroom home and self-contained sleepout Genuinely for sale, our motivated vendors have their sights set elsewhere and need this property sold to make the next move. Phone Kerry today to find out more, or come see for yourself at our next open day.

For Sale By Tender Tenders close 1pm, 17th January 2020 (Unless Sold Prior)

View: Open Days,

Friday 29th Nov, 6 & 13th Dec at 11am sharp. Please bring own ATV www.harcourts.co.nz/OH8627

Kerry Harty P 07 873 8700 M 027 294 6215 E kjharty@harcourts.co.nz

Otorohanga Blue Ribbon Realty Ltd mreinz Licensed Agent REAA 2008


46

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – December 2, 2019

RURAL | LIFESTYLE | RESIDENTIAL

EXCLUSIVE

MATA, WHANGAREI 51 Crow Road Farming in Huge Growth Area • • • •

Approx 144 hectares in one title Four bedroom, two bathroom main home Second three bedroom home, large deck Excellent water from large dam and farm bores

This well located property is currently running a successful once-a-day dairy operation with a fouryear average production of approximately 94,000kg MS from 300 split calving cows. Located only 6km from Ruakaka and around 8km to the fast growing Marsden commercial/industrial development, this is a serious opportunity to invest in an advancing area.

TENDER

4

2

2

$3.15M

Plus GST (if any)

VIEW By Appointment Only

Scott Tapp M 021 418 161 B 09 423 9717 E teamscott.tapp@pggwrightson.co.nz

pggwre.co.nz/WEL31370

WHAKAMARAMA, BAY OF PLENTY Desirable & Fertile 17.99ha in two titles with three road entrances. Surely the finest grazing. Pristine plateau pastureland with a panoramic BOP Bay ocean view above the thundering Waipapa Falls and a river boundary. The twin atrium architecturally designed home is delightfully private and sheltered. A guaranteed massive sea and farm vista from both lounges and two of the four bedrooms and the spa pool. This is an executive styled home with quality craftsmanship. An enviable address, exclusive tarsealed driveway, landscaped grounds, expansive lawns and mature gardens, lots more! Contact us today!

4

2

2

TENDER

(Unless Sold by Private Treaty) Closes 4.00pm Thursday 12 December

VIEW By Appointment Only Andrew Fowler M 027 275 2244 E afowler@pggwrightson.co.nz Amanda Edwards M 027 463 3502 E amanda.edwards@pggwrightson.co.nz

pggwre.co.nz/TAR31396 Helping grow the country

PGG Wrightson Real Estate Limited, licensed under REAA 2008

POTENTIAL PLUS!

WOODVILLE

RURAL | LIFESTYLE | RESIDENTIAL

FINAL NOTICE

WEST MELTON, CANTERBURY Large, Irrigated & Well-Located 225.2993ha total with purchasing options - 146.54ha irrigated home block with dwelling, 10.00ha zoned Inner Plains (subdividable), 20.00ha zoned Inner Plains (subdividable), 20.24ha zoned Inner Plains (subdividable), 28.32ha located on Thompsons Road.

DEADLINE PRIVATE TREATY Plus GST (if any) (Unless Sold Prior) Closes 2.00pm, Thursday 5 December

Sam Davidson | M 027 488 8269 Mark Clyne | M 027 531 2964

pggwre.co.nz/CHR31366

NEW LISTING

PRICE ON APPLICATION

Beaumont - Efficient Productive Dairy Farm • • • •

Purchase or Lease Manage Environment, cow house, 550 cows 165.8967ha freehold - 155ha approx milking platform Irrigation- pivot 70ha, K-line 61ha, border-dyke 24ha, new 36 HB dairy, GEO milkphos plant, A.C.R's, meal feeding system, farm buildings and three homes

Dave Finlay M 027 433 5210 | B 03 433 1340 E dfinlay@pggwrightson.co.nz

pggwre.co.nz/OAM31486 PGG Wrightson Real Estate Limited, licensed under REAA 2008

There is a 24 cup milking shed with capacity for an additional 12 cups, as well as a 250 head herd home with floodwash. Olsen Ps from 26-44 indicate the level of investment and hard work by the Vendor.

Closing 12.00pm Thursday 12th December 2019 Jerome Pitt M: 027 242 2199 O: 06 374 4107 E: @jeromep@forfarms.co.nz

LK0100279©

261 Peebles Siding Rd

For Sale by Tender

Viewing by appointment www.forfarms.co.nz - FF2911

Helping grow the country www.forfarms.co.nz

Property ID FF1299

LK0068450©

NORTH OTAGO

New to the market this 121 hectare dairy farm, conveniently located in Woodville, has excellent farm infrastructure and heaps of potential. Possibilities are to continue milking or use as a beef/finishing block or do both as is currently the case.


NZ’s #1 Agri Job Board

FARMERS WEEKLY – December 2, 2019

HAWARDEN, NTH CANTERBURY Don’t go past this opportunity • 570 cows • Automated, modern equipment • Excellent housing

FARM MANAGER Parengarenga Station

If you know what it takes to lead a team of staff to achieve great performance, and are looking for an opportunity to show your stuff then keep reading…

Parengarenga Incorporation is looking for an experienced people-focused Farm Manager. This is a short-term (3 to 6 month fixed term) opportunity.

LK0100473©

Peaks Dairy Limited Partnership is a well-established, high performing operation. Comprising 157 effective hectares, this farm has a 54-bail rotary with automation, an in-shed feeding system and excellent support infrastructure.

Parengarenga Incorporation is a Maori Incorporation based in Te Kao in the Far North (70km north of Kaitaia) that manages $52m of farm and forestry assets on behalf of 3000 shareholders. Its vision is “Being a world class business of the land and sea, growing our people and communities, shaping the future of the Far North”. The station is 5100 effective hectares of rolling pasture, 37,000 stock units of premium Angus, Charolais, Hereford cross and an early lambing Texel /Dorsett flock. The Farm currently employs 14 people who are passionate about the farm and the local environment.

For the coming season we’re looking for an experienced operator who is ready to take on a role with significant farm and people leadership components. Reporting to an experienced Agribusiness Manager and Chairman, you will need to be professional in both your farm and business management. The successful applicant will have high levels of personal accountability and will be empowered to achieve both personal and career results. With clear procedures, policies and expectations you will be left to get on with the job and deliver results.

Our clients are seeking a progressive contract milker who enjoys farming and shows good experience at managing cows and grass in order to achieve targeted production. Pursuing someone with excellent communication, proven pasture skills and ability to take ownership. Ideal applicants will work as a team, have an eye for detail, and be positive, forward thinkers.

Apply at www.no8hr.co.nz (Ref#8HR1247) where you will also find further information on the farm and this opportunity. Applications close 8th December 2019.

www.no8hr.co.nz | ph: 07-870-4901

If you’re aiming to be one of the best, then it makes sense to align yourself with progressive and future-focused partners. With a programme in place to continue to develop this 300-odd ha farm and a realistic goal of being top 5% in Southland for production, we’re looking for an experienced contract milker who can take the farm to the next level of performance.

This role comes with spacious accommodation and a competitive employment package wrapped up in a great lifestyle. For further information, a Position Description or to submit an application email Allen Pascoe at tekao@bigpond.com Applications close at 5pm on Friday 13 December 2019

LK0100464©

Based just 10 minutes from Winton and an easy 40 minutes from Invercargill, Kauana is a well set up farm boasting a 54 bail rotary shed, ACR’s, protrack and in-shed feeding. The 650 cow capacity wintering barn, extensive auxiliary buildings and modern effluent management system are testimony to the forethought that has been put into getting maximum performance from this farm.

EMPLOYMENT

We’re looking for an experienced contract milker who can demonstrate success in leading a team and who is prepared to do the extra things that will make the difference between good and great performance on an asset rich property such as this. You will have strong animal husbandry skills and the ability to think outside the square to make the most of the resources available. You will also need to be confident with feed budgets, and experience with the Farmax system would be an advantage.

Stock Manager

Please print clearly Name: Phone:

To find out more apply today! Go to our website, www.No8HR.co.nz and quote Ref: 8HR1244. Applications close: Sunday 8th December.

Address: Email: LK0100433©

Apatu Farms operate a multi-dimensional Agribusiness throughout Hawke’s Bay. Our Livestock division consists 700ha of breeding and finishing country which is supported by 900ha winter lamb finishing platform working in conjunction with strategic cropping programs. The business demands a high level of integration between systems. The operation comprises of the cropping platform on the Heretaunga plains and pastoral properties all within close proximity of Hastings, providing an added attraction to live in a Hawke’s Bay.

REACH EVERY FARMER IN NZ FROM MONDAY

There are already great systems and processes in place, and while there is no ‘on farm owner’ there is plenty of support to achieve KPIs that will achieve both the farm owners’ and the contract milkers’ businesses.

– Hawke’s Bay

www.no8hr.co.nz | ph: 07-870-4901

Heading: Advert to read:

farmersweeklyjobs.co.nz

JOBS BOARD

We are looking for a motivated and experienced Stock Manager to be part of a small team to help run this dynamic and efficient livestock business through quality livestock and resource management.

Contract Milker

This is a permanent position and remuneration will be dependent on skills and experience.

Farm Research Senior NZ-Ireland Exchange Programme

Shepherd Stock Manager *FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz *conditions apply

Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz LK0100461©

You’re reading the Farmers Weekly and so are the people you want to employ.

Private Retreat Managers

A 3 bedroom house located in close proximity could be available, if required.

WE ARE THE SOLUTION

Farm Manager

LK0096815©

The following experience, responsibilities and skills required are: • Day-to-day grazing management • Minimum of 5 years drystock experience • Excellence in animal husbandry, stock handling and feed budgeting • Self-motivated with a strong work ethic • Farm repairs and maintenance skills • Forward planning and high level communication skills • Accuracy and attention to detail with tallies and stock movements • Ability to assess pasture covers and stocking rates • Ability to work autonomously and achieve required deadlines • 4-6 dogs capable of yard work and mustering

Please email a cover letter and C.V to sonia@apatugroup.com or phone Tim Agnew for a confidential chat on 021 320 598. Application close 10 January 2020

From the farm gate, there is transport to local schools and a local village (Te Kao) is just 20 minutes down the road with Kaitaia a further 45 minutes away. We stretch from coast to coast, so it is never far to a beach. The Farm borders Parengarenga Harbour with easy access to great fishing.

• 745 cows (with plans to grow to 770) • Wintering barn • Excellent support buildings and infrastructure

Please apply with cover letter and CV to recruitment@agfirst.co.nz

This person appointed will be people-focused, strong on communication and with outstanding leadership skills who is comfortable operating in a collaborative environment where team members in turn feel comfortable contributing.

The Farm Manager is a member of the Farm Advisory Committee and provides reports and updates for the Committee on all matters impacting on the success of the farm.

Aiming for the Top

Accommodation includes three good quality houses, with adequate insulation and heat sources.

The ideal candidate will have a minimum of 5 to 10 years experience at a senior level on a large-scale sheep and beef farm environment. Stock management and animal welfare knowledge must be of the highest standard

The person appointed must also be computer literate and be familiar with up to date farming systems such as Farmax and FarmIQ.

CONTRACT MILKER – KAUANA (SOUTHLAND)

This 280 effective hectare farm at Ohakune, is flat contour, milking 600 spring calved cows through a newly established 54 bail rotary with automatic cup removers, teat spray, auto wash and Cow Scout. Historically the farm has produced 270,000kgMS, however new facilities and fine-tuned management have the farm targeting 300,000kgMS. The supplement regime includes grass silage, in-shed feeding, reject vegetables, summer turnips and hay, along with winter kale.

Applications close date: 11 December 2019

LK0100493©

Good infrastructure, modern housing and a business support structure make this a great opportunity for a farm leader looking to take their next step.

CONTRACT MILKER

Applicants must have NZ residency or valid NZ work visa.

We do our own excavations, our own drainage, our own fencing and our own water reticulation and we have a substantial workshop to service all of our machinery.

GET IN TOUCH For all your employment ads Debbie 06 323 0765

classifieds@globalhq.co.nz

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

LK0100475©

Drystock Station, Taupō

For more information contact: The Manager on 027 263 6116 or email CV to: jobsinopepe@gmail.com

47

CONTRACT MILKER –

Experienced Shepherd Applicant requirements: • Good understanding of pasture management • High standard of stock management and husbandry • Competent in all general farm duties • Working dogs • Honest, hardworking and positive attitude • Health and safety minded

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


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

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

0800 436 566

CHILLERS & FREEZERS [For farmers and hunters]

ANIMAL HEALTH www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362). BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@globalhq.co.nz

udly NZ Madew Pro Since 1975

021 441 180 (JC) frigidair@xtra.co.nz

LK0100494©

ATTENTION FARMERS DAGS .25c PER KG. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.

For information see TradeMe#2251190054

When only the best will do!

GORSE SPRAYING SCRUB CUTTING. 30 years experience. Blowers, gun and hose. No job too big. Camp out teams. Travel anywhere if job big enough. Phone Dave 06 375 8032.

DEERLAND TRADING LTD 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 16-MONTH HEADING dog, run, stop, pulling sides. Natural cast. $2000. Phone 06 874 8071 or 027 445 7755. HUNTAWAYS AND HEADING dogs, delivering Northland to Southland 14/12/19. Trial. Ask your neighbour! www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

TOWABLE TOPPING MOWER

$4400

GST INCLUSIVE

12Hp Diesel. Electric Start

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

$4200

LIVESTOCK FOR SALE

RAMS FOR SALE

TRACTOR PARTS

HUNTAWAYS WORKING. Good noise and temperament. YOUNG Heading dog ready to start. Phone 06 388 0212 or 027 243 8541. WE HAVE A TOP selection of young 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.

77HA HIGH QUALITY Grazing property available for lease. Excellent facilities water, yards and paddock sub division. Contour a mixture of easy to strong rolling, with some sidlings interspersed. Over 70ha mowable. Location 13km east of Cambridge. Contact Richard - 021 274 2476 or richard@ abreeds.co.nz

25 YEARLING STEERS, Angus North Devon X. Weighed 4/11/19, average live weight 370kgs. FIFTEEN 2-year Angus North Devon steers, weighed 4/11/19, average live weight 448kgs. Phone 06 838 8120.

WILTSHIRE & SHIRE® Meat rams. Low input. www.wiltshire-rams.co.nz 03 225 5283. FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@globalhq.co.nz

JD 6510, 6420, 6430, 6434, dismantling Andiquiparts. Phone 027 524 3356.

DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. BUYING 360 DOGS annually. No one buys or pays more! Mike Hughes 07 315 5553. HANDY DOG OR HEAD and Hunt, for mature flat farm, prefer bitch. Phone 0274 448 103.

FARM MAPPING

FORESTRY

GST INCLUSIVE

50 TON WOOD SPLITTER

$4200

GST INCLUSIVE

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

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

LK0100238©

TOWABLE FLAIL MOWER

LEASE LAND AVAILABLE

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.

2 YEAR WARRANTY. NZ ASSEMBLED. ELECTRIC START & QUALITY YOU CAN RELY ON 13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut

DOGS FOR SALE

PINE WOODLOT VALUES Ltd. If you’re thinking of logging your pine woodlot, our totally independent assessment will tell you what you’ve got, what its worth, and how to achieve your share. Contact Ray Hindrup 027 353 4515 or hindrup.logs@gmail.com – www.pinewoodlotvalues. co.nz

LEASE LAND WANTED MEDIUM TO LARGE scale beef and/or sheep block to lease. Preferably around the Rotorua area but open to other options. Phone 027 319 5078.

LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

PERSONAL LOOKING FOR GOOD woman to marry between ages 47 - 79. I am 57 years old. Only sincere persons apply. Please email bio with recent photo: happinessisfreefirm@ gmail.com

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

EMAIL FOR MORE INFO MARTON.REUNION@GMAIL.COM

Ph: 03 314 7220 Mob: 0274 351 955 Email info@southislandtoursnz.com www.southislandtoursnz.com

$2,700 +gst

$16,340 +gst

Christchurch Show discounts still valid on orders placed before the end of the year (for customers based in the South Island)

Perfect

The

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

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Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz

Guaranteed Performance Save time and Money . Flystrike and Lice cost $$$ Quick to Set up . Easy to use . Job Done

LK0099532©

GOATS WANTED

NIGHT SHOW TICKETS ON SALE TINYURL.COM/MYFREUNION

CRAIGCO

FORESTRY/ SCRUB CUTTING INTEGRATED VEHICLE wood chipper for local chipping of trimmed/ cut branches. NZ Patent 713280. Easily driven to work site, operates independent of tractor or large truck/trailer combination solutions. Retains material on-site for natural recycling without the carbon footprint of transporting the slash/ scrub cuttings. Minimizes volume of material from piles of cuttings. Contact: Silver Crags Engineering at richard.w.finney@gmail. com

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.

14 & 15 MARCH PALMERSTON NORTH

4X4 TAGALONG TOURS Bring your own 4X4 on a guided tour to discover more of the South Island. Tour 1: Molesworth Station, St James, and Rainbow Stations Dates: Jan 13-16, Feb 22-25, March 1-4, March 15-18, April 5-8 Tour 2: D’Urville Island and Marlborough High Country Dates: Jan 19-23, March 22-26, April 15-19 Other dates available for groups of six or more people on request.

STOCK FEED MOISTURE METERS Hay, Silage dry matter, grain. www.moisturemeters.co.nz 0800 213 343.

WANTED TO BUY

LL RM IN ER G A S LL A FF YO IL UN IA TE G S

CONTRACTORS

ANIMAL HANDLING

FARMERS WEEKLY – December 2, 2019

CA

DOLOMITE

Noticeboard

FA

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

LK0099774©

Robust construction. Auto shut gate. Adjustable V panels Total 20 Jets. Lambs 5 jets. Side jets for Lice. Davey Twin Impeller Pump. 6.5 or 9.0 Hp motors

06 8356863 . 021 061 1800

www.craigcojetters.com

STEEL TANK SPECIALISTS

Fuelcon Farm and Trailer Tanks by:

“Your Fuel Storage Solutions”

NAKI GOATS. Trucking goats to the works every week throughout the NI. Phone Michael and Clarice. 027 643 0403.

Weaning

Machine

0800 227 228 www.combiclamp.co.nz

South Island - Stuart 027 435 3062

LK0100076©

48

HORTICULTURE NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz

0800 383 5266

www.petrotec.co.nz/products Ask us about our range of stainless steel tanks.


Rathbone Beltex & Dutch Texels

Livestock Noticeboard

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

t

Breeding the difference

FRIESIAN INMILK A2 CAPTIAL STOCK CLEARING SALE

37TH ANNUAL ELITE SIRE STAG SALE

To be held on farm Tuesday 10th December – 11.30am start A/c Raine Farms 344 Kaohatu-Kawatiri Hway, SH 6 Motupiko DCN 30920, Nelson

WINNER ANNOUNCED

PAUL GARDNER WITH HIS ENTRY INTO CLASS 1 - 14.6-19.5KG The Canterbury A&P Association passes a special thank you to our committed sponsors & congratulates all of the finalists for 2019. See you in 2020! Other results from the show can be viewed at theshow. co.nz/results

Route posted

Light luncheon supplied

All enquiries to: NZ Farmers Livestock Agent James Perkins 027 232 8052

Exceptional Breeding stags plus Commercial/Trophy stags on offer. Offering to include 2, 3, & 4yr old sons of:

CANE, MUNRO, FITZROY, ORLANDO, APEX, KALLIS, RIGBY, ALEXANDER, AMADEUS, GREGOR, MCCAW

LK0100465©

Catalogues available

LK0100315©

If you require further information please contact Mike or Becki Phone +447972680541 rathbonebeltexandtexel@hotmail.co.uk or visit rathbone Panbeck beltex

Saturday 11th January 2020 @ 1pm

Comprising: 160 2-8yr Friesian A2 inmilk Spring Calving Cows. Due to a change in farming policy, Raine Farms offer their entire spring calving herd for sale. All cows are A2/A2. The herd is milked once a day off hill country at Motupiko, Nelson. This is a great opportunity to purchase capital A2 stock which have produced 152 milk solids to date in 110 days which includes the autumn calvers. Cows have been mated to LIC KiwiX and Friesian bulls due to calve from 7th August 2020. The cows come forward in good condition and will transition back to twice a day milking. Currently producing 1.63ms/cow with an avg SCC of 114,000. This is a very young line up of cows with 145 hd being 5 years and younger which will shift extremely well.

• Improve carcass quality and conformation of finished fat lambs with double muscled genetics • Frozen semen and pedigree/purebred ewes available for embryo flushing • Able to advise on any import requirements • Established 20 years and based in the Yorkshire Dales UK

49

Catalogues will be posted out in December

SCAN FOR CATALOGUE

ALL ENQUIRIES: Barry Gard 021 222 8964, a/h 03 431 2803 bgard@foverandeerpark.co.nz www.foverandeerpark.co.nz

DAIRY HERDS FOR SALE

Annual 2yr

200 Attractive FrFrX cows. BW71; PW90; RA89%. DTC 14/7. $1890. WAI76685. Bryan Sweeney 027 869 2620

Sire Stag Sale

450 Frs & Xbd cows. BW68/44; PW90/58; RA92%. DTC 25/7. $1950. TAR76412. Plus 330 JsyJsyX cows, BW104/43; PW136/54; RA96% DTC 30/7. $1900. TAR76394. Bryan Goodin 027 531 8511 315 JsyJsyX cows. BW114/44; PW143/57; RA99%. $1650. NOR74465. Blair Sidwell 021 325 325

Wednesday 11th December

1:30pm at 37 Pukenaua Rd, Taihape

460 late-March calving FrX cows. BW106/43; PW169/56; RA95%. $1580. Plus, A2A2 content of that herd, 380 Xbd cows, BW113/43; PW181/57; RA95%. Will sell in smaller lines on pro rata basis. NOR76110 & NOR76103. Ollie Carruthers 027 451 5312

• 35 stags with 12 month BVs +20 - 30kg • Highest average 12 month BV stag auction in NZ since 2011 • Maternal reds selected on temperament and fully guaranteed

290 G3 DNA profiled high-producing FrFrX herd (70% Fr, 30% Xbd). SCC 78000, 500ms/cow & 1500ms/ha on System 3. DTC 15/7. $1800. WAI77164. Bryan Sweeney 027 869 2620

DAIRY HERDS WANTED 500-600 XBred cows late July or August calving. Indexes important. Peter Jackson 021 922 462

www.deerstud.nz For further information contact Paul Hughes: 027 446 6309

175 Xbred cows F10-F12, black cows ideally. July calving. Wayne Robb 021 712 511

Gareth Williams: 0275 264 613 • Robert Auld: 0275 901 335

320 OAD fully-recorded JsyFrX spring-calving herd for 1/6/2020 delivery. Northland area. Also, 300 genuine Xbd autumn-calving herd. Noel Baker 027 455 5828

Contact your local agent or phone John Watson 027 494 1975 to be put in contact with one.

LIVESTOCK ADVERTISING LK0100466©

300 FrFrX - KiwiX cows, at least 100 at a time. Prefer F12+. In milk, good capacity, excellent RA% Mark Mackie 027 451 5311

Are you looking in the right direction?

farmersweekly.co.nz

ON-FARM

RAM SALE Wednesday 11th December 2019 1.00pm Auction 2409 Christchurch Akaroa Road, Kaituna

OFFERING 80 RAMS

Deliver your stud stock messaging to every farm letterbox nationwide with a weekly publication that farmers choose first for news, opinion, market updates and even their own advertising.

2525 STUD STOCK

For further information contact our Noticeboard sales team on 0800 85 25 80 or email livestock@globalhq.co.nz

Camla South Suffolks D M Butterick

La-Mac Hampshires B J & P E Butterick

Ben Butterick

CONTACT

Maclaka Southdowns B C Macaulay

03 3290 030

Brent Macaulay 021 220 0850 Dave Butterick

021 478 298

farmersweekly.co.nz CATALOGUE AVAILABLE EARLY NOVEMBER

LK0100107©

FARMERS WEEKLY – December 2, 2019


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

STOCK FOR SALE FRSN BULL CALVES 105kg+

1YR BEEF BRED STEERS 350-410kg 300-400kg 1YR BEEF & FRSN/HERE HFRS

1YR FRSN BULLS 380-430kg CAP STOCK 2YR ANG HEIFERS 440kg STOCK REQUIRED YOUNG TO MIXED AGE

BREEDING EWES

Livestock Noticeboard

On-Farm Ram Sale Friday 6th December 2019, 2.00pm, by Auction

12th Annual Ram Sale

Annual Flock Annual EliteElite Flock Ram Sale Ram Sale

Wednesday 5th December 2018 4pm. Gore A&P Grounds. Gore

• • • •

www.otago-coopworths.co.nz

Wednesday 4th December 4pm. Gore A&P Grounds. Gore

LK0100304©

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

Contacts:

Fraser Fletcher 027 497 8104 Fraser Fletcher 0274978104 George Fletcher 027 433 4773

• • • •

SIL Recorded High growth and high yielding rams Born and bred under challenging conditions All Sires DNA foot scored

For further information or catalogues please contact: Simon Prouting, 06 374 3661, 1529 Ngapaeruru Road RD3, Te Uri, Dannevirke • prouting@inspire.co.nz

Ross & Ruth Mitchell 0274338613 George & Elaine Fletcher 0274334773

Stud and Flock rams available Approx 130 South Suffolks Approx 30 Poll Dorsets Approx 20 South Suffolk and Poll Dorset Texel cross Eye muscle scanned

Rams that will MEAT your requirements.

Breeders:

Ross Dyer 0274 333 381

GET INTO THE BLACK

North – Tom Suttor 0276164504 – South – Callum Dunnett 027 587 0131 Auctioneer – Neville Clark 027 598 6537 or contact your local Carrfields Agent

Give me a call to facilitate your ram cartage requirements throughout NZ

A

F

PERFOR

M

L

O

cheer up your bank manager today! Tell him you’ve bought a Suffolk! FIND YOUR NEAREST SUFFOLK BREEDER: nzsheep.co.nz/suffolk

TIM COOMBS

Owner/Driver 502 Lees Road, RD 5, Feilding 4775

4500

NZMW

4000

DPX

3500

Index

3000 2500 2000 1500 1000 500 0

Transporting your ram from Vendor to Buyer efficiently & competitively

NC

SEA

Using a Suffolk ram results in 100% of offspring being in the black, which will in turn, put YOU in the black.

FOL UF K

His father says, “Hi Honoured, I’m Dad.”

E

S

Sam being so ecstatic at being a first time Dad took the book and said, “Dad, I’m honoured,” as tears welled up in his eyes.

LK0100456©

Proven fast growth Hybrid Vigour Easy identification High yields

A Father and his son Sam, sat down together and with great pride Dad said, “Son, now you’ve got a child of your own, I think it’s time you had this. He went into his bag and pulled out a book called, “1001 Dad Jokes”.

Tim Coombs Deer & Stock

GET INTO A SUFFOLK!

• • • •

SALE TALK

SOUTH SUFFOLKS & POLL DORSETS

Otago Coopworth Breeders

The South Islands Premier Coopworth sale offering only 100% Pure Coopworth rams www.dyerlivestock.co.nz

FARMERS WEEKLY – December 2, 2019

LK00100011©

50

ARDG

Industry

Your Studstock Specialist P: 027 444 1937

E: coombs@vetta.net.nz


Livestock Noticeboard

FARMERS WEEKLY – December 2, 2019

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

51

Check out Poll Dorset NZ on Facebook

Weekly Auctions

Profitability Surprise

Wednesday night – North Island Thursday night – South Island

FEILDING ELITE RAM & EWE SALES

The Coopworth ewe is the ‘engine’ room of your farm. A sound productive sheep with comprehensive SIL validation.

• 550 Terminal Black Face X mixed sex lambs

MANFEILD PARK, FEILDING

• 1000 Romney Texel & Suffolk Cross mixed sex lambs

TUESDAY DECEMBER 10, 2019

Consistently ranking ahead of the rest in Sheep Genetics for the modern forward thinking farmer

For more information go to bidr.co.nz or contact the bidr® team on 0800 TO BIDR

WOOL BREEDS

Superior Maternal Worth: Reproduction | Survival | Meat Growth | Wool | All SIL Recorded

NZ’s Virtual Saleyard

Sale starts: 10.30am 4 Perendale Rams 1 Cheviot Ram

STAY OUT FRONT

OF THE MOB

Followed by

with Farmers Weekly

MEAT BREEDS

• Worm tolerant sheep to reduce the need for drench • FE testing • Eye muscle scanning to produce the best carcass for the market • Ewes rearing their own weight in lambs

LK0098920©

Visit the website for your local Ram Breeder’s contact details

Poll Dorset Rams + 6 Poll Dorset Ewes South Suffolk Rams Southdown Rams + 2 Southdown Ewes Dorset Down Rams Texel Rams Suffolk Rams Dorper Rams

LK0100311©

Coopworth breeders are to the fore in breeding for traits like:

13 2 27 13 14 15 2

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

View catalogue online at www.pivotdesign.co.nz under catalogues 2019. Rams for the Feilding Sale have been selected on type and performance for typical North Island sheep breeding conditions.

www.coopworthgenetics.co.nz

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

Auctioneers:

NZfarming FARMERS listings LIVESTOCK • CARRFIELDS LIVESTOCK CoopworthGenetics Your source for PGG Wrightson livestock and

Key: Dairy

Cattle

Sheep

Other

Your source for PGG Wrightson livestock and farming listings

Key: Dairy

Cattle

Sheep

Other

NORTH ISLAND HERDS & IN-CALF HEIFERS FOR SALE

DAIRY HERDS & IN-CALF HEIFERS FOR SALE

370 XBred/Friesian Cows BW 107

Benefit from the nationwide team that is dedicated to matching herds with the right buyers and achieving an optimal outcome for your business.

$1,985

PW 143

RA100% Calving 1st August, A2/A2 tested, 34 years one owner. Dean Evans – 027 243 1092

Agonline ref: 5719

PW 103

$1,875+GST

RA 92% Calving 25th June, young herd ave 346 m/s. Regan Craig - 027 502 8585

$1,975

RA100% Calving 27th July, ave 408 m/s, low SCC, nominated semen. Andrew Reyland - 027 223 7092

Lambs Commencing 12 noon • 3500 Suftex/Beltex Lambs

$1,800+GST

RA 98% Calving 15th July, ave 345 m/s, no cidrs for 15yr. Kent Stove - 027 224 0999 Agonline ref: 5413

SOUTH ISLAND HERDS & HEIFERS FOR SALE BW 78/39

350 Friesian/Friesian X Cows PW 103

PW 168

605 Tidy, Friesian X Herd

Agonline ref: 5686

BW 83

BW 131

Pareora Downs 94 Pareora Ford Road, Taiko Tuesday 10th December 2019

+GST

Agonline ref: 5705

250 Friesian/Friesian X Cows BW 68

PGG Wrightson Dairy representatives are specialists at marketing and selling dairy herds.

235 Jersey/Jersey X Cows +GST

PW 116/45

$1,900+GST

RA87% Milked on challenging farm, producing 430-450 M/S per cow. SCC avg for last six years: 98,000. If sold prior to mating, dates and bull type can be chosen by purchaser. Mike Van der Linden – 027 609 9187 Agonline ref: 5105

For photos and more information visit www.agonline.co.nz

NATIONAL TEAM. LOCAL KNOWLEDGE. Freephone 0800 10 22 76 | www.pggwrightson.co.nz

BELTEX/SUFTEX LAMB & 1ST 2TH BELTEX/SUFTEX RAM SALE

2th Rams Commencing 3pm Viewing from 1pm • 40 ¼ Beltex/Suftex Rams • 60 Suftex Rams Unique opportunity to purchase Suftex Beltex Lambs and Rams with exceptional growth and yielding potential Signposted from SH1 Pareora River Road & SH8 Robinson Road. Enquiries: Grant Black 0275 477 616 Jonty Hyslop (PGW) 0275 956 450

Breeding better business pggwrightson.co.nz/ramsales

Helping grow the country


MARKET SNAPSHOT

52

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Mel Croad

Nicola Dennis

Cattle

Reece Brick

Graham Johnson

Sheep

BEEF

William Hickson

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.30

6.30

5.50

NI lamb (17kg)

9.00

9.00

8.10

NI Stag (60kg)

8.90

9.00

10.80

NI Bull (300kg)

6.50

6.40

5.10

NI mutton (20kg)

6.20

6.20

5.00

SI Stag (60kg)

8.90

9.00

10.80

NI Cow (200kg)

4.95

4.90

4.05

SI lamb (17kg)

9.00

9.00

7.90

SI Steer (300kg)

6.10

6.05

5.30

SI mutton (20kg)

6.50

6.25

5.00

SI Bull (300kg)

6.15

6.10

4.75

Export markets (NZ$/kg)

SI Cow (200kg)

4.75

4.70

3.80

UK CKT lamb leg

US imported 95CL bull

11.01

10.96

6.39

10.0

US domestic 90CL cow

8.38

8.30

6.21

9.0

7.5

8.0

6.5

Slaughter price (NZ$/kg)

$/kg CW

North Island steer slaughter price

$/kg CW

6.0

$/kg CW

$/kg CW Feb

Apr

5-yr ave

Jun

2018-19

Dairy

Aug

8.0

6.5

7.0

Oct

Dec 5-yr ave

Feb

Apr 2018-19

Jun

Prior week

Last year

Coarse xbred ind.

-

-

2.87

37 micron ewe

-

-

$/tonne

6.75 6.25

Aug 2019-20

-

Last year

Urea

616

616

650

2.80

Super

314

314

315

-

DAP

787

787

778

-

400

320

Aug-19 Oct-19 Sept. 2020

DAIRY FUTURES (US$/T)

Oct-18

Dec-18

Feb-19

Apr-19

Jun-19

Aug-19

Oct-19

Company

Close

YTD High

Fisher & Paykel Healthcare Corporation Ltd

21.51

21.77

12.3

Meridian Energy Limited (NS)

4.525

5.54

3.38

The a2 Milk Company Limited

15.2

18.04

10.42

Auckland International Airport Limited

9.12

9.9

7.065

Spark New Zealand Limited

4.56

4.705

3.54

Ryman Healthcare Limited

15.01

15.19

10.4

Mercury NZ Limited (NS)

4.72

5.62

3.51

7.06

9.05

5.82

Port of Tauranga Limited

6.78

6.9

4.9

Fletcher Building Limited

5.17

5.55

4.28

Company

440

YTD Low

Contact Energy Limited

Listed Agri Shares

CANTERBURY FEED BARLEY vs 4 weeks ago

NZ average (NZ$/t)

Top 10 by Market Cap

360

Prior week

Jun

Prior week

440

Last price*

Apr 2018-19

Last week

480

Nearby contract

Feb

FERTILISER

CANTERBURY FEED WHEAT

Jun-19

Dec

Fertiliser

Aug 2019-20

Grain

Data provided by

Feb-19 Apr-19 Sept. 2019

Oct

5-yr ave

Last week

7.25

Dec-18

8.5 7.5

30 micron lamb

2019-20

MILK PRICE FUTURES

5.75

South Island stag slaughter price

9.5

9.0

(NZ$/kg)

Dec

$/kg CW

10.5

WOOL

5.5

Oct

8.5

5.0

6.0

4.5

North Island stag slaughter price

9.5

11.5

South Island lamb slaughter price

Last year

10.5

6.0

5.0

5.0

$/kg MS

8.83

Last week Prior week

6.0

South Island steer slaughter price

6.5

Slaughter price (NZ$/kg)

7.0

10.0

4.5

11.58

North Island lamb slaughter price

5.5 5.0

Last year

11.5 11.60

Export markets (NZ$/kg)

6.5

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

5pm, close of market, Thursday Close

YTD High

YTD Low

The a2 Milk Company Limited

15.2

18.04

10.42

Comvita Limited

2.9

5.42

2.5 9.4

0

0

3125

420

Delegat Group Limited

11.33

12.5

SMP

2425

2455

2530

400

Fonterra Shareholders' Fund (NS)

4.01

4.85

3.15

Foley Wines Limited

1.8

2

1.47

AMF

5620

5830

5900

Butter

4750

4955

5100

Milk Price

7.50

7.42

7.18

$/tonne

WMP

320

Oct-18

WMP FUTURES - VS FOUR WEEKS AGO

Marlborough Wine Estates Group Limited

Dec-18

Feb-19

Apr-19

Jun-19

Aug-19

Oct-19

WAIKATO PALM KERNEL

3400

320

$/tonne

3200 3100

260

Dec Jan Latest price

Feb

Mar 4 weeks ago

Apr

0.75 0.192

2.2

2.98

1.76

2.45

2.52

0.47

Sanford Limited (NS)

7.65

7.78

6.35

Scales Corporation Limited

5.2

5.45

4.34 0.001

SeaDragon Limited

0.001

0.003

Seeka Limited

4.73

5.35

4.2

Synlait Milk Limited (NS)

9.4

11.35

8.45

2.76

2.81

2.43

16794

17434

15063

S&P/NZX 50 Index

11207

11219

8732

S&P/NZX 10 Index

11083

11083

8280

240 220

Nov

1.08 0.24

New Zealand King Salmon Investments Ltd

S&P/NZX Primary Sector Equity Index

280

0.8 0.199

PGG Wrightson Limited

T&G Global Limited

300

3300 US$/t

Livestock Improvement Corporation Ltd (NS)

360 340

* price as at close of business on Thursday

3000

380

200

Oct-18

S&P/FW PRIMARY SECTOR EQUITY

Dec-18

Feb-19

Apr-19

Jun-19

Aug-19

Oct-19

16794

S&P/NZX 50 INDEX

11207

S&P/NZX 10 INDEX

11083


53

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

9.00

SI SLAUGHTER BULL ( $/KG)

6.15

SI SLAUGHTER STEER ( $/KG)

6.10

2-YEAR TRADITIONAL STEERS, 480590KG, AT STORTFORD LODGE ( $/KG LW)

3.37

Now too dry in places NORTH ISLAND

S

OIL moisture is top of mind for most farmers in Northland. Pasture cover is not as good as at this time last year and farmers are wondering when the rain is going to come. Despite that the word on the street is sheep and cattle prices across the board will remain strong going into Christmas and farmers are in a positive mood regarding returns but they’re still harbouring concerns over compliance issues. Around Pukekohe the week started dry with wind from mid mornings maintaining cooler temperatures. A showery change was forecast at the end of the week but little rainfall is expected and irrigation is operating. The first of this season’s garlic is being harvested and might continue to the end of December. Onion crops are looking better though there are isolated patches of white rot disease. Moderate yields of potatoes are being dug. They’re coming out of the ground nice and clean. Waikato had a dry spell last week. Silage and hay is being made. Crop planting is just about done and dusted. Milk production is tracking similar to last year and dairy farmers have their fingers crossed as they wait for the results of pregnancy tests. They’re pleased at the signals from Fonterra of an upward milk price and while they have a high level of confidence a consultant said they are still being cautious with their spending. Dairy cow sale prices are better than expected with demand for Mycoplasma bovis-free cattle coming from the South Island. Soils are way drier than normal in Bay of Plenty orchards. In the north of the region moisture is 50% below normal and in the south is 30% down. Higher-altitude orchards are at full flowering and bees are busy. Growers are awaiting a Zespri decision expected soon on the release of the new Red cultivar, which has been on trial so far. It was a beautiful day in King Country when we rang. Farmers have been out docking and shearing during another week of fine, warm weather. Lots of farmers are cutting a second load of silage. Grass is still growing and store stock are fetching great prices. Cull ewes are making $140 to $150. A farmer says it would be nice to see wool prices come right now and at least cover the cost of shearing. The Australian bushfires have likely contributed to hazy skies in Taranaki. It’s been dry, warm and windy. But pasture is looking lush and grass is still growing despite the lack of rain. Contractors are flat out making silage. Despite spring starting later than normal in Hawke’s Bay the season caught up and cherries are being harvested. The weather’s been exceptional for orchardists over the last month but, like everywhere else in the North Island, they could do with some rain. A consultant says lighter soils definitely need irrigating. Gisborne’s had some scorching hot days and rain’s needed there, too. It’s full on on the farm with weaning under way. Some amazing prices for lambs are being recorded ... more than $200 for the

If you love the information you get from these pages, you will love AgriHQ’s livestock reports.

LivestockEye GOOD BUYING: These 11 prime new season lambs made $231 at Coalgate on Thursday.

odd one. That’s because of exceptional demand from China and a helpful exchange rate. Caution around bank lending could be holding up one or two farm sales. There’s angst still about the freshwater proposals and more clarity can’t come soon enough but, in the meantime, farmers are getting on with fencing and planting their waterways. A Wairarapa farmer says the weather’s on the cusp of changing from immensely favourable to the opposite. It’s been hot and a little windy and the rain that was forecast for this week is looking less likely. Fodder crops, which went in late, have struck and are looking good. Lambs are being weaned, balage is being made, there’s even been a little haymaking. Ram buying has started and bulls are going out around the region. Vineyard workers are busy moving wires to manage the leaf canopy as the fruit develops. Some vines are flowering already. SOUTH ISLAND The Nelson region’s drying out very quickly and farmers are hoping for rain. They do have lots of feed on hand though and are busy making silage. Irrigators are being cranked up. Dairy farms are coming towards the end of mating and sheep farmers are looking at sending off their early lambs. Grape vines are looking good and hops are hitting the tops of poles. There’s been quite a bit of land use change into hops. As the craft beer industry expands so does the amount of land in hops. Marlborough’s more than dry. It had 32C and 33C days last week and farmers are having to move quickly into summer mode. Farmers are drafting lambs – hill country lambs are about 3kg lighter than last year. That’s being put down to a cool, wet October. Despite having been an average sort of spring, prices for beef and lamb are the best ever. The farmer we spoke to says beef’s going off at $6.20/kg and he’s expecting a brilliant $130 to $140 for his lambs. He’s also a producer of mid micron and fine wool and they, too, are commanding a premium. His Corriedale wool goes into knitwear and his Merino heads offshore and is made into fine wool suits. The West Coast was a bit drier last

week – at last. Kowhitirangi, about 20 minutes from Hokitika, has had about a metre of rain this month and the farmer we called has had between 400mm and 500mm at his place. He says there’s not much grass around and he’s having to feed supplements. He thinks he’ll move to once-a -day milking shortly because there’s not much point milking twice day to get the same production and he can’t justify buying in feed for the rest of the season. He says if cows walk less, they put more milk into the vat. Every kilometre they are from the shed costs a litre a cow a day. In the last 10 days he’s put 20% less in the vat than for the same 10 days last year. The good news is the snow’s disappeared off the hills and that should mean the weather will improve. In North Canterbury it’s been incredibly windy, which has been a bit testing if you are trying to spray to direct drill crops. Farmers are looking forward to a southerly change – it’s been hot and dry. Most farms are getting their lambs away and prices are fantastic. A farmer says she’s had prime hoggets make $220 and prime lambs are fetching more than $200. She says that’s why sausages and lamb chops are so expensive. Around Balclutha in Otago conditions have really improved in the last week. Balage can now be made and crops are in the ground. It’s been too difficult to get onto parts of some paddocks so patches of grass have had to be left rather than made into silage. It’s been a hard slog over the past six weeks with too much moisture and not enough sunlight. Sheep and lambs need to perk up. On dairy farms milk production is holding or dipping and people are wondering how well mating has gone. Farmers have been feeling a bit gloomy and stressed – they’re trying to get as much work as possible out of the way before Christmas so they can relax for a couple of days with their families. Southland has warmed up and is in reasonable shape – rain’s not as prevalent as it has been and there’s finally a grass surplus on most properties. Stock are looking happier now it’s stopped raining. On the Friday before last the Dipton area was hit by very high winds, which brought down a lot of trees, some of them taking power lines with them and, in one case, hitting a transformer as well.

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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54

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

Dairy-beef weaners hit the yards in truckloads Weaner dairy-beef calves are being shipped out in the truckloads with 4900 sold last week at the four North Island yards covered by AgriHQ’s LivestockEye reports. That stretches from Wellsford to Feilding and results have varied across the island. At Wellsford the Friesian bulls averaged 120kg and $490 while Frankton and Rangiuru were a pigeon-pair at 115kg and $455. Feilding had the same average weight but stronger competition meant it came out tops at $500 a head with beef-Friesian heifers also achieving that average weight and price. More weight was found for the beef-dairy heifers at Wellsford, with an average of 125kg and $480, while later calves at the other yards meant 100-110kg and $375-$445 averages. Rangiuru and Feilding had the pick of the beef-Friesian bulls and, for an average of 115kg at Rangiuru, prices fell just short of the $600 mark while Feilding gained a further 10kg and averaged $625. NORTHLAND Wellsford dairy-beef weaner fair • Angus-Friesian steers, 170-185kg, held at $600-$625 • Hereford-Friesian steers, 138-185kg, also held at $600-$625 • Angus-Friesian heifers, 121-147kg, improved to $500-$585 • Hereford-Friesian heifers, 120-133kg, returned $465-$470 • Friesian bulls, 124-183kg, lifted to $530-$740 A mixed quality yarding of just over 820 weaners was offered at WELLSFORD last Monday, with buyers selective in their bids. Steers overall traded at steady to lifting levels. Angus-Friesian, 111-145kg, improved to $500-$595, and Hereford-Friesian, 102-132kg, $600-$695. Hereford-dairy, 176-187kg, returned $630-$705, and 105-108kg, $400-$450. Hereford-Friesian heifers, 137-180kg, held at $525-$620, while better Hereford-dairy lines, 107-175kg, returned $455-$470, and lesser $350. Friesian bulls, 110-117kg, had moderate interest at $460-$495. A consignment of autumnborn Angus-Friesian steers and heifers met with good demand. Forty steers, 187kg, fetched $690, and heifers, 184kg, $630. Kaikohe store and Autumn born weaner sale • Most two-year steers eased to $3.06-$3.15/kg • Two-year beef bulls earned $3.20-$3.30/kg • Two-year traditional and beef-cross heifers eased to $3.00-$3.05/ kg • Top autumn-born weaner Angus & Simmental steers returned $900-$1040 • Autumn-born Simmental-cross and Angus-cross bulls, 190220kg, earned $740-$830 A store cattle and autumn-born weaner sale took place at KAIKOHE last Wednesday, and dry conditions meant buyers were cautious, PGG Wrightson agent Vaughan Vujcich reported. Yearling traditional and beef-dairy steers eased 5c/kg to $3.20-$3.30/kg, and better beef-cross heifers, $2.85-$3.00/kg. Autumn-born weaner bulls and steers had a good following, though heifer interest was limited. Second cuts of Angus and Simmental steers traded at $750-$800, and Friesian bulls, 180kg, $750. Top traditional and exotic heifers managed $800-$900, and lesser types $560-$750. Hereford-Friesian, 170kg, realised $570.

AUCKLAND Pukekohe cattle • Prime steers held at $3.13-$3.21/kg • Prime heifers were steady at $3.01-$3.15/kg • Weaner steers softened to $560-$690 • Weaner heifers eased to $510-$610 Recent hot, dry conditions made buyers a little more cautious at PUKEKOHE on Saturday November 23, with only short-term options managing to hold at recent levels. Longer term cattle eased for the majority, with most lots presented in smaller lines of three or less, bringing little enthusiasm from the bench. Two-year steers sold over a range of $2.85/kg to $3.05/kg, with good heifers earning $2.78/kg to $3.09/kg. Medium 15-month heifers softened to $2.70-$2.88/kg.

WAIKATO Frankton dairy-beef weaner fair • Hereford-Friesian steers, 93-101kg, held at $535-$580

• Hereford-Friesian heifers, 110-113kg, eased to $440-$505 • Hereford-Friesian bulls, 124-128kg, improved to $650-$690 • Friesian bulls, 100-121kg, held at $425-$525 Throughput lifted to just under 1800 weaners at FRANKTON last Tuesday. Quality bulls were still in demand, though lesser sorts eased. Heifers were also good shopping. Hereford-Friesian heifers, 96-105kg, softened to $400-$457, and 77-93kg, $310-$400. Red Hereford-Friesian also eased with 105-143kg down to $360-$405. Angus-Friesian bulls, 110kg, strengthened to $570, and Hereford-Friesian, 100-115kg, held at $600-$650, though 88-98kg softened to $500-$570. A large supply of Friesian bulls meant some eased, with 124-146kg discounted to $510-$540, and 90-97kg reduced to $345-$390. Frankton store and prime cattle • Yearling Angus-Friesian steers, 315kg, lifted to $3.53/kg • Most yearling Hereford-Friesian steers, 336-377kg, eased to $3.39-$3.49/kg • Yearling red Hereford-Friesian steers, 242-298kg, held at $740$960 • Yearling Angus-Hereford heifers, 354kg, returned $3.14/kg • Yearling Hereford-Friesian heifers, 339-393kg, held at $3.04-$3.14/ kg Cattle numbers increased at FRANKTON last Wednesday with 1075 yarded. Two-year Hereford- Friesian steers, 436-507kg, held at $3.22-$3.29/kg, as did beef-dairy heifers, 397-485kg, $3.13-$3.14/kg. Results were mixed for yearling steers. Angus-Friesian, 369kg, held at $3.33/kg, and 286-292kg, $3.08-$3.15/kg. Hereford-Friesian, 328339kg, improved to $3.63-$3.67/kg, though 292kg eased to $3.27/kg. Heifers were harder work and Angus-Friesian, 352-408kg, earned $2.97-$3.00/kg, though 328kg achieved $3.14/kg. Hereford-Friesian, 255-356kg, softened to $2.83-$2.99/kg. Yearling Friesian bulls, 251-276kg, fetched $3.07-$3.12/kg. Prime Hereford-Friesian steers, 502-704kg, strengthened to $3.21-$3.25/kg, while traditional heifers, 395-490kg, earned $3.14-$3.17/kg, and the balance $3.12$3.19/kg. Frankton yearling bull fair • Limousin bulls, 282-356kg, fetched $3.26-$3.27/kg • Hereford-Friesian bulls made $3.12-$3.19/kg • Eleven Jersey bulls, 246kg, were chased by two buyers to finish at $1000, $4.07/kg • Friesian bulls, 295-316kg, earned $3.20-$3.28/kg The FRANKTON yearling bull sale last Thursday was beneficial to both vendors and buyers alike. Buyers were specific in their requirements and the quality yarding did not disappoint, with vendors well rewarded. Angus, 371kg, were well sought after at $3.34/kg, while Hereford, 375kg, earned $4.16/kg. Most Friesian lines, 295-332kg and 370-427kg, traded at $3.20-$3.31/kg. A small yarding of 2-year bulls met good demand. Angus-Friesian, 482-502kg, realised $3.18-$3.23.kg, while Hereford-Friesian, 417kg, earned $3.18/kg.

BAY OF PLENTY Rangiuru dairy-beef weaner fair • Hereford-Friesian bulls, 98-142kg, made $580-$640 • Friesian bulls, 135-156kg, lifted to $550-$580 • Hereford-Friesian heifers, 129-130kg, traded at $530-$540 • Hereford-Friesian heifers, 108-111kg, firmed to $480-$500 A good bench of buyers was present at RANGIURU last

Wednesday, for a sizeable fair of 738 weaners – most of which were in the 500 strong bull section. Friesian bulls, 117-130kg, dropped to $440-$480, though 100-114kg held at $420-$460. Friesian and Friesian-cross were mixed as 104-115kg traded at $370-$450. Friesian heifers all sold in one pen at 142kg and $500, while a small entry of steers had Hereford-Friesian, 116kg, at $625 and 162kg, $660. Rangiuru cattle and sheep sale • Three-year Friesian bulls, 543kg, earned $3.43/kg • Three-year Hereford bulls, 601kg, were $3.38/kg • Two-year Hereford-Friesian steers, 403-458kg, made $3.21-$3.30/ kg • Prime and store lambs made $71-$181, and ewes, $98-$199 A moderate yarding of 600 cattle and 900 sheep greeted sale goers at RANGIURU last Tuesday. Two-year HerefordFriesian heifers, 404-450kg, earned $3.05-3.10/kg, and Hereford, 253-294kg, $2.89-$2.96/kg. Yearling cattle contributed half the tally and varied in quality. HerefordFriesian steers were heavier and better lines sold up to $3.16-$3.66/kg, while dairy-beef were $3.16-$3.26/kg. Prime steers held at $3.30/kg to $3.47/kg, and dairy-types improved as 640kg Friesian sold for $3.44/kg and Ayrshire, 508kg, $3.21/kg. Heifers all traded over $3.05/kg with Hereford-Friesian, 588kg, at $3.35/kg, followed by Hereford, 484kg, $3.29/kg.

POVERTY BAY Matawhero sheep • Big lines of medium to good store lambs achieved $121-$137 • Prime ewe hoggets generally returned $149-$190 • The small number of prime ewes sold for $115-$152 Store lambs contributed nearly 1200 of the overall total of 1625 sheep present at MATAWHERO last Friday. This tally was smaller than the previous sale, but both quality and prices rose with lighter lambs sold for $91-$91.50. 145 Romney breeding ewes made $127.50-$130.50.

TARANAKI Taranaki cattle sale • Prime beef-dairy steers, 540-657kg, firmed to $3.27-$3.37/kg • Two-year Hereford-Friesian steers, 532kg, made $3.29/kg • Top two-year Angus-cross bulls, 697-745kg, sold for $2420-$2660 • Yearling Speckle Park-cross steers, 395kg, fetched $1410, $3.57/kg • Yearling Hereford-Jersey heifers, 316-342kg, earned $2.78-$2.85/ kg Last Wednesday’s TARANAKI cattle sale had just under 300 head of varied quality. Two-year steers at better weights sold well, while lighter and lesser types mostly earned around $3.00/kg. Yearling steers sold in a wide range, with lesser quality more affordable, while Angus-Friesian, 322358kg, held at $1060-$1180, $3.29-$3.32/kg.

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Heavy to very heavy ewes held at $181-$239 • Medium-good to good ewes eased to $136-$155.50 • Very heavy lambs improved to $205.50-$220 • Good lambs lifted to $156-$167 • Angus heifers, 494-545kg, held at $3.20-$3.22/kg Ewe throughput increased at STORTFORD LODGE as weaning progresses, and a combined total of just under 10,000 cull ewes sold at Stortford Lodge and Feilding sale yards last Monday. Very-good ewes met strong competition and maintained levels of $157-$180, though light-medium to medium came back to $118-$138.50, with the tail end steady at $85-$113.50. Heavy lambs strengthened to $164-$175.50. Traditional steers, 587-695kg, traded at $3.30-$3.37/kg, with Hereford-Friesian, 677kg, close behind at $3.28/kg. Angus heifers, 441-476kg, held at $3.10-$3.12/kg, as did HerefordFriesian, 505-538kg, $3.18-$3.21/kg, though 478-501kg softened to $3.01-$3.02/kg. Stortford Lodge store cattle and sheep • 2-year traditional steers, 480-590kg, came back 20c/kg to $3.37/kg • 2-year Hereford-Friesian steers, 511-564kg, eased to $3.05-$3.10/ kg • Yearling Charolais-cross steers, 355-410kg, were a highlight at $1527-$1530 • Yearling traditional heifers, 325-395kg, eased to $3.24/kg • Medium Romney cryptorchid lambs made $107-$126 Nearly 1200 cattle took some time to sell at STORTFORD LODGE last Wednesday. In general prices softened, though by varying degrees. Two-year traditional heifers, 353-427kg, made $2.93-$3.02/kg, and Friesian bulls, 460-530kg, lost 19-26c/kg to finish at $3.32-$3.36/kg. Yearling HerefordFriesian heifers held value at an average of $965, $3.29/ kg. There was a market adjustment for lambs, with prices back on recent levels. A few small lines reached $132-$161, but most were medium types. Small cryptorchid, male and mixed-sex lambs made $73-$104.


SALE YARD WRAP

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

55

and mid-range $86-$114. Very heavy mixed-age ewes made $211-$302, and heavy types were $189-$206. Coalgate cattle and sheep • Yearling Angus steers, 333-362kg, earned $3.60-3.66/kg • Yearling Angus-Hereford steers, 374kg, made $3.56/kg • Yearling Angus heifers, 279kg, lifted to $3.19/kg • Prime cows, 680-705kg, averaged $2.43/kg • Top pen of prime ewes made $374 Sunshine painted stock in a good light at COALGATE last Thursday. The market was solid and yearling steers mostly traded at $2.98-$3.02/kg, while traditional heifers improved 8c/kg to $3.11/kg. The prime section was strong, but quality was noticeably lower; heavy steers, 625-735kg, held at $3.21/kg, but 495545kg dropped 18c/kg to $3.05/kg. The appeal of strong prices attracted a big yarding of ewes; 240 earned $300$374, and by the end 60% of the 2600 head exceeded $200. Prime lamb prices held with top lines $200-$241 and the balance mostly $150-$199. Most store lambs were mixedsex and sold in three main cuts; $124-$130, $100-$118 and $75-$95.

SOUTH-CANTERBURY

BIG MOB: These 31 Friesian bulls were some of nearly 1800 cattle sold at the Frankton dairy-beef weaner fair on Tuesday. They weighed 125kg and sold for $520, which is up on average prices.

MANAWATU Rongotea cattle • Two-year Hereford-Friesian steers, 352-442kg, softened to $2.67$3.01/kg • Two-year beef bulls, 540kg, sold well at $3.31/kg • Yearling Friesian bulls, 230kg, returned $2.74/kg • Yearling Hereford-Friesian heifers, 202-300kg, held at $2.67/kg • Weaner Hereford-Friesian bulls, 210kg, fetched $700 A good yarding of cattle sold on a steady to easing market at RONGOTEA last Wednesday, New Zealand Farmers Livestock agent Darryl Harwood reported. Two-year Hereford-Friesian heifers, 395-445kg, sold over a range of $2.68/kg to $3.03/kg. Yearling steers, 275-319kg, found common ground at $2.74-$2.98/kg regardless of breed. While Hereford-Friesian bulls, 267kg, earned $2.66/kg. Weaner Friesian bulls, 102-105kg, traded at $410-$420, whilst Hereford-Friesian heifers, 100-125kg, softened to $400-$410. Friesian boner cows, 390-552kg, eased marginally to earn $1.97/kg to $2.28/kg. Hereford-Friesian bull calves managed $195-$260, outdone by their sisters at $260-$300. Feilding prime cattle and sheep sale • One Hereford bull, 820kg, sold for $2886, $3.52/kg • Simmental-cross bulls, 620kg, fetched $3.57/kg • A lower volume of hoggets earned $180-$208 Ewe numbers swelled at FEILDING last Monday as more farmers wean and offload into the heated market. Prices firmed for better types, with very heavy at $193-$236 and heavy, $171-$191. Top new season lambs made $207-$222, while the lion’s share of the very heavy types returned $190$198, and heavy $160-$189. Prime cattle were good quality though heifers eased; Hereford-Friesian, 470-493kg, fetched $3.00-$3.09/kg and Angus-cross, 515kg, $3.10/kg. Boner prices improved and Friesian heifers, 385-505kg, averaged $2.46/kg while 535660kg Friesian cows climbed to $2.62/kg, and 490-540kg $2.44/kg. Feilding store • Good traditional two-year steers fell to $3.32-$3.39/kg • Yearling Hereford-Friesian steers, 295-375kg, eased to $3.10$3.27/kg • Heavier yearling Friesian bulls, 320-450kg, did well enough at $3.14-$3.32/kg • Average store lamb dropped to $113 • Heavy-to-good blackface lambs were $139-$150 More than 1500 store cattle began on a downer as at least 20c/kg was taken out the two-year steer market. Nothing went above $3.40/kg, with the well-marked HerefordFriesian types mainly in the $3.10-$3.20/kg range. Two-year heifers weren’t much better as only two of the better pens went above $3.00/kg, where the rest of the beef-Friesian

lines were usually $2.70-$2.90/kg depending on quality and weight. Yearling steers were a bit sticky too, though some 450-460kg Charolais were at $1590-$1685 or $3.54-$3.65/kg. Not much went above $4.00/kg. The bull market was a mixed bag, with heavier lines mainly selling better. Anywhere between $2.90-$3.20/kg was common. Heifers had only just begun at the time of writing, with 345-350kg traditionals at $3.06-$3.18/kg. For the second time this season there was a major change in the store lamb market. Adjusting for weights around $15 was taken out prices, though this excludes a few pens that were passed in before being sold privately afterwards. Mixed sex terminal-cross were the majority again and were the better selling. Generally good-to-heavy blackface lambs were $139-$150, dropping to $115-$120 on the mediums, with not much in between. Light blackface lambs were $84-$95.50. Quality mattered more than anything else on the whiteface lambs as medium-to-good weights were $104-$120, and anything bordering light making $99-$106. Little else was sold.

WAIRARAPA Masterton lamb sale • Top blackface lambs sold up to $160 • Good Romney cryptorchid achieved $120-$125 and blackface, $122-$127 • Medium Romney cryptorchid made $100-$105 Volume grew to 8500 lambs at MASTERTON last Wednesday, and as expected there was a market correction on the previous week’s levels. Buyers for the better end were mainly local and Manawatu, while a regular buyer from King Country took ownership of most of the longerterm lambs. Close to half the yarding were light Romney cryptorchid, which made fair values at $80-$100.

CANTERBURY Canterbury Park cattle and sheep • Yearling Charolais-cross steers, 348-386kg, earned $3.65-$3.73/kg • Yearling Charolais-cross steers, 306-322kg, made $3.76-$3.86/kg • Yearling Charolais-cross heifers, 279-313kg, fetched $3.46-$3.51/ kg • Prime traditional steers, 580-795kg, held at $3.24/kg. A special entry of 650 yearlings attracted buyers to CANTERBURY PARK last Tuesday. Angus steers, 285kg, sold for $3.86/kg and Hereford, 308-348kg, $3.68-$3.77/ kg. Angus heifers made $3.33/kg-$3.41/kg and AngusHereford, $3.20/kg to $3.50/kg. Prime traditional steers, 450-560kg, eased 9c/kg to $3.25/kg and Limousin heifers, 617kg, made the most money at $3.52/kg. Better beef-cross heifers returned $3.06/kg to $3.20/kg. Prime cows sold as well as Angus, 670-685kg earned $2.56-$2.58/kg. Store lambs sold to strong demand with heavy types $120-$141

Temuka prime and boner cattle; all sheep • Friesian bulls, 570-645kg, rose to $3.28/kg • Boner Friesian heifers, 550-640kg, improved to $2.87-$2.95/kg • Boner Friesian cows, 630-685kg, increased to $2.30/kg • Boner Friesian cows, 455-580kg, eased to $1.98/kg • Prime ewes reached $340-$366 The bull market was the highlight of the cattle at TEMUKA last Monday. Murray-Grey bulls, 535-685kg, achieved $3.45/kg, followed by Hereford, 615-625kg, $3.36$3.44/kg. Angus steers, 565- 686kg, eased to $3.23-$3.28/kg, though Hereford-Friesian, 536-695kg, held at $3.14-$3.23/ kg. Returns of $3.04-$3.14/kg were usual for dairy-beef steers and higher yielding heifers, with Angus, 465-610kg, priced at $3.08/kg. Heavy store lambs made $134-$137, while mid-range were $120-$124. Prime lambs sold in small lines with veryheavy types $200-$229, and half the tally $150-$198. A fierce procurement market helped two-thirds of the ewes achieve $200-$300, with medium $160-$190. Temuka store cattle sale • Yearling Fleckvieh-cross steers, 378-382kg, earned $3.36-$3.38/kg • Yearling Charolais heifers, 228-234kg, achieved $3.38-$3.46/kg • Yearling Angus heifers, 283-371kg, were $3.34-$3.38/kg. Primarily yearling cattle were entered at TEMUKA last Thursday, with solid support for good dairy-beef steers, while heifers and anything of lesser quality was harder going due to the quantity available. Angus-Friesian steers made up to $3.23/kg, with $2.87-$2.99/kg typical for the better 219-274kg lines. A few Angus & Angus-Hereford heifers, 294kg, made $3.30/kg but overall only a small proportion of heifer pens sold above $3/kg. Some Friesian bulls made $3.01/kg, with the bulk $2.46/kg to $2.71/kg.

OTAGO Balclutha sheep • Spring prime lambs earned $130-$160 • Heavy prime hoggets held at $180-$200 • Heavy prime ewes softened to $180-$200 • Spring store lambs were well sought at $120-$130 Prime hoggets continue to sell to good demand at BALCLUTHA with light to medium types steady at $120$170, PGG Wrightson agent Russell Maloney reported. Ewes softened with demand softening and light to medium back to $100-$160. The first consignments of spring lambs appeared in both the prime and store sections and sold to solid demand. Ewes with lambs-at-foot returned $130 all counted.

SOUTHLAND Lorneville cattle and sheep • Heavy spring lambs earned $170-$200 • Heavy prime hoggets softened to $170-$190 • Medium to top store hoggets improved to $128-$133 • Prime steers and heifers, 500-600kg, improved to $2.90-$3.10/kg • Two-year Hereford-cross steers, 391-416kg, held at 3.30-$3.40/kg Prime spring lambs were on offer at LORNEVILLE last Tuesday, with medium types trading at $150-$168. Hoggets softened to $140-$168. Ewe’s also eased with most discounted $12-$20, heavy types returned $180-$230, with light to medium at $120-$178. Cows 480-550kg, eased to $2.20-$2.30/kg, and 430-480kg, $1.80-$2.00/kg. Two-year Hereford-cross heifers, 380-400kg, returned $3.05-$3.07/ kg. Yearling Hereford-cross steers, 300kg, varied at $900$980, $3.00/kg, to $3.26/kg. Weaner Hereford-cross bulls, 100-130kg, held at $450-$550, with their sisters of the same weight softening slightly to $400-$450. Friesian bulls, 100140kg, were steady at $320-$450.


Markets

56 FARMERS WEEKLY – farmersweekly.co.nz – December 2, 2019 NI SLAUGHTER STAG

NI SLAUGHTER BULL

SI SLAUGHTER MUTTON

($/KG)

($/KG)

MEDIAN PRICE FOR PRIME EWES AT COALGATE

($/KG)

($/HD LW)

8.90

6.50

6.50

210

high $3.30-$3.40 lights Yearling traditional

$620-$650

Weaner Herefordheifers, 295-365kg, at Friesian bulls, 105115kg, at Frankton Canterbury Park

ACROSS THE RAILS SUZ BREMNER

Stock price differences standard practice

Fewer cows, more milk Hugh Stringleman

R

hugh.stringleman@globalhq.co.nz

ECORD milk production gave dairy companies 1.88 billion kilograms of milksolids to process last season, up 2.4% on the season before. Both the 21.2 billion total litres of milk and the milksolids produced were just a tick under New Zealand’s biggest season in 2014-15. The DairyNZ and LIC annual joint publication of dairy industry statistics show the average milksolids a cow was 381kg, compared with 368kg in the 2018 season and matching the 2017 record. The average milksolds a herd was 165,674kg, a more than 4% increase on the previous season. That record was helped by an increase in the average herd size of four cows milked to 435. As dairy farmers continue to put more emphasis on productivity and efficiency the number of cows in the national herd went down by nearly 1% to 4.946m and the number of herds was down 218 to 11,372. DairyNZ chief executive Tim Mackle said the days of significant growth in

cow numbers might be over but the industry continues to evolve. “Farmers have been focusing on improving their environmental management in recent years while stepping up their on-farm efficiency to produce more milk from fewer cows. “More efficient milk production has benefits in areas such as greenhouse gas emissions and nutrient losses.” The report shows milk production has trebled in size since the data series began in 1984-85 and doubled in the past 20 years, during which the average herd size has increased by 200 cows. But NZ milk production has been in the range 20-21b litres annually for the past six years. Farmers have made increased use of herd improvement services, seeking higher-performing, healthier and more efficient cows through the use of herd testing and artificial breeding. LIC chief executive Wayne McNee said it showed farmers’ commitment to improving the quality of their herds to drive better sustainability and productivity. “NZ farmers are farming with improved precision and taking advantage of herd improvement services to produce more with less.”

Herd testing was done on 3.67m cows, up 1.6%, and 3.59m were mated to AB, up 1%. The average production a hectare was 1081kg MS, higher than the previous three seasons.

More efficient milk production has benefits in areas such as greenhouse gas emissions and nutrient losses. Dr Tim Mackle DairyNZ The distribution of higher-producing cows showed 38% of herds having greater than 400kg MS/cow compared with 31% in the previous season while 7% of herds recorded over 500kg/cow. The North Island has 58.4% of cows and Waikato 22.6% of the national total. The South Island has an average herd size of 639 on 215ha effective, compared to 354 cows on 129ha in the North Island.

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YARDS are flat out and it feels like there will be no let-up this side of Christmas as high prices and a rapidly approaching summer keep the flow of stock coming. The hammer has fallen many times in rostrums with price differences for stock sold in the North Island to the South. North Island cattle usually make a premium while sheep are trading at similar levels, if not better, this year in the South. Several factors influence prices – weather patterns, quality of stock, schedule prices and competition. The cattle markets are led by higher schedules in the North Island because of a bigger competition base, meaning bigger budgets to play with over the South. However, if quality cattle are put up buyers will pay and that has been proved recently as 650 yearling traditional and exotic cattle at Canterbury Park gave their North Island brothers and sisters a run for their money, literally. At Stortford Lodge 350-410kg Charolaiscross steers sold for $3.72-$3.83/kg while at Canterbury Park 310-390kg varied from $3.65/ kg to $3.86/kg. Angus heifers at the same sales followed a similar path as 325-395kg at Stortford Lodge fetched $3.21-$3.22/kg and at Canterbury Park 300-365kg made a premium of $3.30-$3.41/kg. For dairy-beef cattle, though, it is a different story as greater supply and influencing factors result in a clear premium for North Island stock. Frankton is one of the stronger yards for dairy-beef and last week yearling steers averaged 320kg, $1030 at $3.24/kg while at Temuka an average of 285kg was accompanied with a lower price tag of $800 at $3/kg. For the South Island the Mycoplasma bovis hangover continues and is still blamed for some cattle selling at a premium to others. Stating farm origin is a key factor and while it appears M bovis concerns have subsided to some extent they are still very much bubbling away under the surface. suz.bremner@globalhq.co.nz

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