Farmers Weekly NZ June 3 2019 by AgriHQ

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Vol 18 No 21, June 3, 2019

Drought sounds wheat warning

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Gamblers lift farm prices Neal Wallace

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NTERNATIONAL investors speculating the cost of carbon credits will rise are driving forestry expansion and pushing up farmland prices. Rural leaders met several Cabinet ministers last week to air their concerns at the scale and speed farmland is being converted to forestry, citing sales of more than 30,000ha in the central North Island alone to forest companies in the last 12 months. Many of the sales are to foreign companies to plant trees earning carbon credits that can be sold to greenhouse gas emitters to offset their emissions. Forestry Minister Shane Jones is seeking advice on whether the Government’s Billion Trees programme and easing of overseas investment rules have opened the door for investors speculating on carbon price rise. Jones has asked officials to determine if the policy is being gamed and if it is he will seek Cabinet approval to close any loophole. The pressure from investors looking for land to plant trees for carbon farming looks like increasing with Ministry for the Environment officials confirming the $25 a tonne price cap will be removed by December 31, 2022, though some price control measures could be introduced. The New Zealand carbon price is effectively capped at the Government issue price of $25 a tonne of carbon dioxide equivalent. The European price this week was about $44 a tonne.

Removing the cap and replacing it with an auction system was recommended following a review of the Emissions Trading Scheme earlier this year. Climate Change Minister James Shaw is considering installing a price floor and a price containment reserve, a mechanism that would release more units to the market if the auction price rose to a trigger point. Relaxing the overseas investment rules reflected the fact about 75% of forestry companies operating in NZ are foreign owned. Tararua Mayor Tracey Collis and Wairoa Mayor Craig Little met Jones, Agriculture Minister Damien O’Connor and Conservation Minister Eugenie Sage and say they got a fair hearing. Collis said 12 farms in her district were sold for forestry in the last year, five for carbon farming. The social impact is already being felt with a teacher at a Tararua school forced to move after her partner lost his shepherding job on a farm sold for forestry. They told the ministers more than 30,000ha of land in Gisborne, Tararua, Wairoa and Wairarapa districts has been sold for forestry in the last year. It has been estimated more than 300,000 stock units will be replaced by trees with forest owners outbidding farmers for land and leaders fearing that will result in the loss of jobs, people and services. Jones says that was not the policy’s intention. “I have sympathy if the

I have sympathy if the extremely high value associated with carbon leads to a Klondike effect. Shane Jones Forestry Minister

ADVERSE: The social impact of forest conversion is already being felt in Tararua with a school losing a teacher whose husband lost his shepherd’s job when a farm was sold for trees, says Tracey Collis. Photo: Vicky O’Connor

extremely high value associated with carbon leads to a Klondike effect causing shiny-arses to come out of Auckland wanting to cover Wairoa in plantation forestry for a carbon investment.” However, farmers want their property rights respected and it is their choice who they sell their land to. Forestry Ministry chief executive Julie Collins said she has

heard anecdotally the Billion Trees programme is affecting rural jobs and services but data shows there were fewer farm sales last year and just three farms were bought by foreigners for forestry. She has also not seen evidence the programme is affecting land prices. “We will continue to monitor market drivers and overseas investment purchases but

currently the evidence does not suggest any major shift in purchases of properties for farm conversions to forestry.” Bayleys Real Estate Gisborne agent Simon Bousfield says land bought for carbon farming is influencing the land market, with most of the buyers from overseas assisted by relaxed foreign investment rules. “I know carbon is having an influence in terms of these guys predicting, based on overseas and what they are seeing in Europe, the carbon market here following suit.” The past year was one of the busiest ever for rural real estate in Gisborne with most sales going to farmers but six or seven farms selling for forestry. Mark Dawe from Bayleys Waikato says buyers are factoring the value of carbon credits into land prices, which in some cases is doubling values. Interest is coming from corporates looking to offset their greenhouse gas emissions but the distance to port for logs is tempering where buyers are looking.

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NEWS

WEATHER OVERVIEW Windy, that’s the theme this week as our calm weather pattern gets blown out the door. While Monday and Tuesday aren’t too bad, northwesters will increase by the end of Tuesday in the north as a large Tasman Sea low moves in. This low will bring strong winds to both islands with gales and heavy rain expected. Despite the strong winds the warm rain will be welcome for dry North Island regions. At this stage conditions ease on Thursday before the next burst of wind and rain moves in on Friday/Saturday. This event has the potential to bring damaging winds for a time then colder southerlies. High pressure is expected next week.

8 Orr: Banks misleading farmers Trading banks are using proposed new capital requirements as cover to toughen up on lending to farmers, Reserve Bank governor Adrian Orr says. Drought sounds wheat warning �� 5

Newsmaker ��28 New Thinking ��29 Opinion ��30

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Rain

Wind

A mainly dry start to this week but a large low arrives late Tuesday or Wednesday bringing rain with heavy falls into both islands, easing Thursday. On Friday another cold front moves in with a developing low bringing more rain then weekend showers.

Windy at times this week with gales possible in both islands. Light westerlies on Monday turn northwest on Tuesday and strengthen in the north. Wednesday is windy nationwide with gales possible. This Friday and Saturday another stormy wind event is expected.

Highlights/ Extremes

Temperature

ON FARM STORY

NZX PASTURE GROWTH INDEX – Next 15 days

Temperatures are a bit up and down this week as we have all wind directions at various times. We have a warm-up on Tuesday with sub-tropical winds then two big lows which create a southwest flow by this weekend.

Stormy conditions are expected twice this week. Firstly on Wednesday, secondly on Friday and Saturday. Both have the potential to create gales and heavy rain. We might have a large high returning by next week though, bringing colder but calmer weather.

14-DAY OUTLOOK

A winter blast isn’t ideal for pasture growth but we might still get a bump from the long weekend winter blast that crossed New Zealand. Despite the recent cold air soil temperatures are still well above normal. Add a burst of subtropical northwesters on Tuesday and warm rain on Wednesday and we should still get some growth.

SOIL MOISTURE INDEX – 30/05/2019

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REGULARS Real Estate ��36-41 Employment ��42 Classifieds ��43 Livestock ��44-51 Markets ��52-56 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $1208. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.

Source: WeatherWatch.co.nz

This product is powered by NIWA Data

For more weather information go to farmersweekly.co.nz/weather

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

New money will help farmers Luke Chivers luke.chivers@globalhq.co.nz THE Budget is great for agriculture, Agriculture Minister Damien O’Connor says. “While wellbeing has been at the heart of our objective I, myself, my colleagues and Government acknowledge that rural wellbeing is just as important and, in fact, drives the economic wellbeing of our country. “That’s why we’ve got money to do some really good things. “Under the heading of agriculture there is $122 million through the Sustainable Land Use Package that is directly supportive of farmers out there. “Clearly we’ve indicated that water quality is really important and that’s been a focus on farming for a while but adding some tools and assistance is really important.

Our focus is getting more for what farmers do, not just getting them to do more. Damien O’Connor Agriculture Minister “The development of good management practice standards and guidance of farm systems, which is coming from $12m under the environment, will help regional councils get out there and provide us with tools for better measurement of what is happening on-farm. “There’s $16.6m for discharge monitoring and benchmarking and there’s another $43m for upgrading decision support tools like Overseer to make sure that they’re more effective and efficient tools for farmers to use. “There’s $5m to lift the capability and capacity of existing

BUDGET 2019

The rural impact farm advisers plus another $35m to actually develop extension services to gather the knowledge and then run a system of sharing it with farmers across the country as they face new challenges – not just water quality, animal welfare and biosecurity, they need to up the systems on-farm and we need to provide them with options for more profitable land use. “It’s not just climate change but also identifying parts of the farm that can be useful for more profitable purposes.” The $229m Sustainable Land Use Package invests in projects to protect and restore at-risk waterways and wetlands and provides support for farmers and growers to use their land more sustainably. “This is very much around developing advice and capability on farm, not regulation,” O’Connor said. “There is some money there to help councils develop more consistent approaches because some of the councils don’t have the capability and certainly don’t have the consistency when they’re dealing with farmers and on-farm systems. “So, at the core of this, it’s around developing capability on-farm and working with farmers. Ultimately, there does need to be some bottom lines and there will have to be some compliance but this money, while some is going into compliance, the vast majority of it is going to build capability. “We’re now at the pointy end and while final decisions are yet to be made about the inclusion (in the Emissions Trading Scheme) of agriculture, if we are to come

CONFIDENT: Farmers are sharing in the increased spend not just directly through agricultural allocation but through all the other areas as well, Agriculture Minister Damien O’Connor says.

in then we’ve got to work on ways of farmers on-farm being able to work with those obligations and to mitigate some of their emissions. There are plenty of ways of doing that. We just have to share those with farmers as quickly as possible. “Agriculture and farmers are sharing in the increased spend not just directly through agricultural allocation but through all the other areas as well. “Mental health, for example, we’re boosting the capability in rural communities. Schooling, there’s a huge amount going into education. This is all helping rural New Zealand. “Every area of government and private sector organisations could spend more money the issue is priority. “There is also money to enhance our pathways to market for high-value products. We’re conscious that in enhancing our environmental management

we’ve got to take the value of that into the marketplace and get more for farmers. “Our focus is getting more for what farmers do, not just getting them to do more.” National Party agriculture spokesman Nathan Guy said the money available is effectively

an open cheque book for the agriculture and environment ministers to introduce new regulation and compliance. “It is such a large funding pool I reckon it will be used to create an army of bureaucrats in Wellington to toughen up on farmers and regional councils.”

Budget numbers Investment in the primary sector •

$229m sustainable land use package to clean up waterways and protect wetlands

•

$107m to transition to a low emissions economy

•

$33.5m Research to reduce agricultural greenhouse gas emissions

•

$49m to expand the forestry workforce and build a new Forestry NZ centre in Rotorua

•

$855m to the Provincial Growth Fund

•

$197m for vocational training and Polytechnics

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Help for farmers turning greener MEETING the challenges of climate change and cleaning up the environment are the focus primary sector funding in this year’s Budget. A $229m Sustainable Land Use Package is designed to protect and restore at-risk waterways and wetlands and support farmers to use their land more sustainably. The announcement includes few specifics but Environment Minister David Parker said water allocation exceeds environmental limits in some catchments. The package will fund support for improving consistency between councils, better compliance and enforcement, better engagement with Maori and improving scientific knowledge to inform plan development. “We want to ensure that farmers and growers have the

BUDGET 2019

The rural impact tools and data they need to understand their impacts on the environment and make informed decisions.” He wants to develop a fair and enduring system for sustainably managing freshwater. “It is more cost-effective to stop catchments from deteriorating rather than to restore them once they are degraded. “Many communities, landowners, Maori and stakeholders are ready to protect waterways but need initial assistance to make this possible. “The Sustainable Land Use Package provides funding to accelerate actions that

improve water quality in at-risk catchments and wetlands.” Measures to address climate change and meet emissions targets will receive $140.5m. That is made up of $107m for the Climate Change Commission to give advice, guidance and monitoring as the economy transitions to carbon neutrality and to implement an Emissions Trading Scheme auction platform. Climate Change Minister James Shaw says having an effective ETS is crucial. “Investing in research and development is also required so we can develop new ways to reduce emissions to manage the costs of the transition we need to make, especially in the land sector.” Funding is provided for two climate change research areas. There is $25m over four years for the Agricultural Climate Change Research Platform to support NZ

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BETTER: It is more cost-effective to stop catchments deteriorating than to restore them once they are degraded, Environment Minister David Parker says.

research in the effects of climate change and $8.5m for the Global Research Alliance in agricultural greenhouse gases to reduce and mitigate emissions from the sector. Forestry NZ gets $49m for regional expansion and to ensure foresters and landowners have support to meet the Government’s goal of developing a sustainable domestic forestry workforce. It will also fund new premises in Rotorua to showcase wood in construction. So far $1.7 billion of the Provincial Growth Fund has been spent on more than 250 projects and the Budget provides a further $855m. Changes to vocational training and polytechnics get $197m, which the Government says will go towards better coordination of on-the-job training and nationwide regional coordination. The buy-back scheme of military style semi-automatic rifles introduced following the Christchurch mosque massacre gets $150m but more will be made available if needed. The Budget allocates $157m for innovation and support for businesses to become more productive and develop highvalue, low-emissions products. Of that $26m will go towards helping commercialise science and research and turn ideas into

products and services. A new $300m fund is being established to support the Venture Investment Fund to make venture capital investments that take start-up businesses to the next level. Over the next four years the Government will increase spending by $25.6 billion. Finance Minister Grant Robertson said the economy is forecast to grow on average 2.6% over the next five years, unemployment is forecast at 4.2% and is expected to remain around 4% across the forecast period. Wage growth is expected to average 3.4% over the next five years, ahead of inflation. Treasury forecasts the Government will report surpluses across the forecast period and net debt will go below 20% in 2021-22, consistent with Budget Responsibility Rules. The annual operating allowance will increase in 2019 from $2.4b to $3.8b. The operating allowance for Budget 2020 has also increased from $2.4b to $3b. A further $1.7b has been added to the multi-year capital allowance for future Budgets. Net core Crown debt as a percentage of GDP is forecast to be 19.9% in 2021-22 and the operating balance before gains and losses remains in surplus across the forecast period, growing to $6.1b by 2022-23.

NZD bottoming

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THE New Zealand dollar might be close to as low as it will get this year against the United States dollar, Westpac currency strategist Imre Speizer says. From a high of US69c in late March the NZD has fallen to 65c and might touch 64c before beginning to rise again. His reasons include NZ economic indicators, including good commodity prices, pointing upwards, a return to growth in the housing sector and the dropping of a capital gains tax. The NZ currency market has not yet factored in the strength in export prices for commodities. On the US side the greenback’s strength derives

from economic growth and rising interest rates. Speizer said the fair value of the NZD is about US69c and it is possible that can be achieved again towards the end of the year. The NZD has also weakened against the Euro because of signs of economic growth in Europe after a very long stretch in the doldrums. Against the Australian dollar, the NZD has gone up and down in a 93-97c band for the past six months. Movements in the crossrate will be determined by the respective central banks and Westpac is predicting up to four official cash rate moves downwards in Australia over the next six months.

News

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Drought sounds wheat warning Annette Scott annette.scott@globalhq.co.nz BREAD and baking prices are about to rise with grain growers keen to reap any opportunity that presents. The opportunities for them stem not just from the devastating two years of drought in Australia, Federated Farmers arable chairwoman Karen Williams says. A large portion of the flour used by New Zealand bakeries is from Australia where drought has ravaged much of the wheatgrowing regions in the eastern states, heavily cutting yields and quality and pushing prices up. This season’s Australian wheat harvest forecast of 17 million tonnes is down from last year’s 21m tonnes and the 10-year average of 24.5m tonnes. Suppliers have signalled prices for bread are on the rise, possibly doubling, because of the lesser volume of wheat and increased demand for grain and wheat products around the world. “Yes, there’s opportunity for NZ to produce more wheat and as an industry we are working on that,” Williams said. “And yes, the drought in Australia that’s creating a shortage of wheat for baking is a reason for us to produce more wheat for milling. “But it highlights more than that. It highlights the threat to NZ’s own food security, not just because of what’s happening in Australia but also globally with climate change, frequent droughts, extreme weather events and natural disasters.” The NZ mills have a high reliance on Australia and if it continues to have challenges there is real concern for NZ. “We are too reliant on what’s going on (in Australia) and if we are not set up for ourselves, come a major disaster and there’ll be massive implications for our NZ food security.”

WARNING: Federated Farmers arable sector chairwoman Karen Williams says the Australian drought highlights the threat to New Zealand’s food security.

We need land security to ensure food security. Karen Williams Federated Farmers As an industry there’s thought going on and plans in the making. The Arable Food Industry Council, made up of industry stakeholders including the federation, the grain and seed trade industry, millers and bakers, is putting thought around such challenges, Williams said. It has set a goal for achieving milling wheat self-sufficiency by 2025.

“There’s a lot of thought around the challenges of NZ’s own food security and while we have the end target of self-sufficiency we are also picking up targets along the way and transport has been agreed as a priority starting point.” Countdown’s commitment last year to use only local product for its in-store baked bread and rolls from more than 10,000 tonnes of milled and Canterbury grown wheat has boosted growers’ commitment to selfsufficiency. “We can grow that and demand from bakeries, particularly niche bakeries, is they like the provenance story and we’re working with the millers and baking industry to grow and supply the varieties they want. “It’s not just bread and buns, it’s

biscuits and other food products such as wheat in pasta and even pet foods. “There’s a number of opportunities for us to supply into those markets but a key challenge for us is transport – getting the product to market.” The bigger demand is from Auckland, hundreds of miles away from Canterbury or even Wairarapa grain. “The transport cost makes the margin thinner. For growers it needs to pay and AFIC is working on that as a key priority.” With more and more land being tagged for forestry there is increasing competition for land to grow grain. “We need to make sure our food bowls are protected and the farmer growing the food is operating on a level playing field

against overseas investment that is going into the likes of the Billion Trees programme and competing for our food production land. “We need land security to ensure food security,” Williams said. Federation grains sector vicechairman Brian Leadley said the market signals coming from the mills are encouraging, boosting AFIC’s drive for self-sufficiency in milling wheat. “There are contracts out there with pretty good pricing. “For lower end quality there are contracts for about $420 a tonne then as you go up in the higher premium grades prices go up a bit. “Farmers have reacted to this and early indications are there will be a greater area of milling wheat varieties harvested in 2020.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Trees make rural mayors nervous Neal Wallace neal.wallace@globalhq.co.nz WAIROA Mayor Craig Little is nervous. In the last eight months 10,000ha, 7% of his district’s remaining pasture land, has been sold for forestry and he estimates it will cost 60 direct and indirect livestock farming jobs while creating 15. Little’s primary concern is the impact on local communities and services but also on the district’s largest employer, Affco’s Wairoa meat works, which gets a third of its stock locally. “More forestry planting threatens our sheep and beef industry, our local economy and the district’s largest employer.”

For us it is an alarming rate. If they keep going at that rate we’ll have no farmland left. Craig Little Wairoa District Council He says 18% of the district is already plantation forest. More than 30,000ha of land in the Gisborne, Wairoa, Wairarapa and Tararua Districts has been sold to forestry in the last year, removing an estimated 300,000 stock units. Forestry companies have also been active in Otago, Waikato and King Country. Little says the pace of land use change worries him and his community and is the unintended consequence of Government incentives for its Billion Trees programme. The land use change cannot be considered a gradual redistribution of land use as

claimed by Forestry New Zealand chief executive Julie Collins in the Farmers Weekly last week, he said. “For us it is an alarming rate. “If they keep going at that rate we’ll have no farmland left.” A briefing paper Little prepared for a meeting this week with Government ministers says 2017 agricultural census figures show 1000ha of forestry directly and indirectly employs 1.5 people. For the same area of sheep and beef farming the figure is 7.6 people. While supporting the Billion Trees programme Little says the scale and scope of forestry planting poses a catastrophic risk to rural communities like Wairoa. Billion Trees grants, the ability to earn income from carbon credits and the less stringent criteria foreign buyers must meet to buy land have created an uneven playing field. He fears communities will be left to tidy up forestry blocks that are not milled or managed but farmed for carbon credits and councils could earn less through rates. Little urges the Government to tailor forest planting to each community and tighten the overseas investment rules for foreign buyers. Nationally, exotic forests cover about 1.7m ha but between 2014 and 2016 29,000ha was converted from forestry to other land uses, mostly pasture. Forestry is NZ’s third largest export earner, earning $6.4 billion in the year to June 2018, and employs 9500 people. Tararua Mayor Tracey Collis fears the cumulative impact of fewer children at schools, the loss of volunteers and the impact on local retailers as people leave the area when trees replace livestock. Collis respects the right of landowners to sell to whoever they wish but the speed of change has surprised her. In the 2017-18 year four Tararua

NO HELP: Tararua District Council was turned down for money to help repair roads damaged by logging trucks, Mayor Tracey Collis says. Photo: Vicky O’Connor

farms were sold to forestry but in 2018-19 it was 12. “It’s a large increase very, very quickly.” Forest companies are buying land with easy access and better quality soils, which is not consistent with the Government mantra of right tree, right place, right time. More forestry means rural communities will have to meet the cost of road maintenance for greater numbers of logging trucks. The Transport Agency recently turned down a request from her council for money to repair roads damaged by logging trucks. Fifty Shades of Green spokesman Mike Butterick says the scale of land use change has caught out everyone – including the Government. His Wairarapa pressure group is seeking a pause in the Billion Trees programme and an independent review of the impact

FEAR: Wairoa Mayor Craig Little worries rural communities will be left to clear up uncut forests grown for carbon credits.

of large-scale forest planting on rural communities. While the group is not opposed to forestry the policy contradicts the Primary Growth Fund, which provides money to enhance and grow rural communities. Similarly, overseas investment rules have made it easier for

foreign companies to buy farmland for forests, which is inflating land prices. Butterick says using forestry to offset carbon emissions is delaying not encouraging emitters to reduce their greenhouse gas emissions, what he describes as a 20-year band aid.

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News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

The Reserve Bank says the trading banks have had it far too good for far too long and it is asking them to hold more capital against their loans. Nigel Stirling reports on the brewing conflict between the banks and their regulator and what it means for farmers.

Orr: Banks misleading farmers Nigel Stirling nigel.g.stirling@gmail.com TRADING banks are using proposed new capital requirements as cover to toughen up on lending to farmers, Reserve Bank governor Adrian Orr says. The central bank wants lenders to find $20 billion in new capital to help withstand the write-downs on loans that would come with a one-in-200 year financial crisis. The banks have not taken the proposals well and have warned of potentially steep increases in borrowing costs.

CHEAPER LOANS: Special treatment for big banks’ competitors should make it easier for farmers to get sharper deals, Reserve Bank governor Adrian Orr says.

They need to be up front and honest that is their business choice.

Predictions of the potential impact on lending rates have ranged from the Reserve Bank’s own estimate of 20-40 percentage points to 80 to 120 points by Swiss investment bank UBS. Trading banks have warned rate rises could be at the higher end of that range for rural borrowers because of the greater amounts of capital they must hold against farm loans, which are deemed by the Reserve Bank to be riskier than lending against houses. But following the Reserve Bank’s twice-yearly Financial Stability Report in Wellington last week Orr rejected claims that was a direct result of the capital proposals and put the blame back on the banks. “There are some historical issues here where the rates of return have been below those

in other sectors and now they appear to be considering whether what they have tolerated for some years is now something they have less tolerance for. “If some banks choose not to be in the agricultural sector then they need to be up front and honest that is their business choice and not hide behind a potential future outcome.” Orr said New Zealand’s banks are the third most profitable in the world and he is confident they can meet the increased requirements and still make good returns without hiking borrowing costs significantly. “The relationship between higher capital and outcomes

could be higher retained earnings by the banks.” Orr said the Reserve Bank wants to use the calm economic conditions now to prepare the local banking system to withstand the next shock. “What has changed since the global financial crisis? The answer is not enough because our debt levels are actually higher, global interest rates are lower and governments have higher public debt in many of our trading partners. “It is a position where we need to put the roof on while the sun is still shining.” Asked what his message is for farmers spooked by predictions

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the proposals will lead to significant interest rate hikes Orr urged them to shop around should the banks carry out them out. The market for bank customers in NZ is competitive and will possibly become more so with the changes being proposed. That is because the Reserve Bank is considering evening up the advantage the big four Australian-owned banks have been able to get over their smaller, locally-owned rivals when it comes to calculating the capital they needed to hold using their own internal models. Special treatment for mutuallyowned lenders lacking the

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same access to capital markets as the big banks is also being considered. With a more competitive banking market it should become easier for farmers to get sharper deals on rates. Orr said farmers can also make their lives easier by increasing the amount of equity in their businesses either from themselves or third parties. “Too often debt arrives when equity is needed.” Increasing pressure on farmers to invest in water quality and other environmental objectives means the need to consider thirdparty equity will only increase, Orr said.

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FARMERS WEEKLY â&#x20AC;&#x201C; farmersweekly.co.nz â&#x20AC;&#x201C; June 3, 2019

COMMENT

Tough decisions coming on funding the farming sector

JUMP: Loans to the horticulture sector leapt 19% in the year to March.

Debt problems rise only slightly Nigel Stirling nigel.g.stirling@gmail.com THE number of dairy farmers struggling with high debt has risen slightly, according to the Reserve Bankâ&#x20AC;&#x2122;s latest stock-take of the health of the financial system. In its twice-yearly Financial Stability Report it said the number of non-performing dairy loans reported by the trading banks has increased slightly. â&#x20AC;&#x153;The dairy sector is continuing to recover from the two major dairy price downturns in the past decade. â&#x20AC;&#x153;The slow rate of recovery

means some farms are financially vulnerable, resulting in the rate of non-performing loans in the sector rising slightly to 2%.â&#x20AC;? However, the proportion of non-performing loans remains well below the recent peak of more than 4% of all dairy loans, reached in 2008, it said. The Reserve Bank defines loans as non-performing where the borrowerâ&#x20AC;&#x2122;s cash outgoings exceed their income and the equity in their farms is down to 10% and likely to worsen. The report said a recovery in the payout for milksolids and good production means most dairy farms have been profitable for the

Non-performing loans, by sector (% of total loans by sector)

Source: RBNZ.BBS.

On average these highly indebted farms require a price of $6.20/ kg of milksolids just to break even. Reserve Bank last three years. But a hard-core of the most indebted dairy farmers is struggling to break even and to repay debt. The report estimates 35% of dairy debt is held by farmers with borrowings of more than $35 per kilo of milksolids. â&#x20AC;&#x153;On average these highly indebted farms require a price of $6.20/kg of milksolids just to break even.â&#x20AC;? The report said these farmers are the most exposed to higher interest rates and changes in banksâ&#x20AC;&#x2122; lending policies. â&#x20AC;&#x153;The willingness of banks to continue supporting the sector will be an important determinant of how smoothly the current risks will be reduced,â&#x20AC;? the report said. It also highlighted a significant acceleration in lending to the horticultural sector. While lending to the sector leaped ahead by 19% in the year to March, compared to the 1%

RESERVE Bank governor Adrian Orr has come out all guns blazing against criticism of his proposals to beef up the banking systemâ&#x20AC;&#x2122;s defences against a rerun of the global financial crisis. The trading banks have attacked the proposals, which they say put an unacceptably high cost on the economy. Orr says the banks are exaggerating the impact on borrowing costs while ignoring the potentially far greater cost to society of not preparing better for a banking crisis. It would be bank customers and taxpayers who ended up picking up the tab for mopping after bank failures, he said. â&#x20AC;&#x153;They are running a very profitable business that is privatising profits and socialising losses.â&#x20AC;? Orr is right that higher debt levels have increased the chances of a crisis while historically low interest rates have decreased the room central banks have to respond to one. But there are still big questions about the scale of the proposals and the costs they would impose. For example, how realistic is it to tell the banks they can easily meet the new capital requirements by setting aside 70% of their profits over a fiveyear implementation period? What if the Australian owners of the big banks redeploy that capital to faster-growing Asian

increase for dairy loans for the same period, the central bank is not yet concerned. That is because horticultural debt still makes up less than 10% of total rural lending, compared to the more than 60% accounted for by dairy loans.

markets in search of higher income returns? Borrowers risk being left high and dry as the banks turn off the money taps in New Zealand. A NZ Bankers Association report put the annual net cost of the increase in capital minimums at $1.8b. That is roughly 0.7% of the economyâ&#x20AC;&#x2122;s total output last year and is equivalent to the effect of a reasonably severe drought. Like a real drought farmers would face the biggest fallout from the potential money drought the changes could bring on. Thatâ&#x20AC;&#x2122;s because farm debt is seen as the riskiest form of lending and demands proportionately higher amounts of capital from the banks and results in a lower return on their investment relative to other forms of lending such as on houses. Last week Orr said the minimum capital proposals will not change the relative returns to the banks from different types of lending. While that might be true it obscures the fact the big banks in particular are being asked to come up with significant amounts of new capital to keep funding all their loans. If the big banks are to be believed they will have some tough choices to make when it comes to what extent they will continue to fund the farming sector in NZ.

â&#x20AC;&#x153;Diversification reduces risks to banks by lowering their exposure to downturns in individual sectors. â&#x20AC;&#x153;But rapid lending growth to a sector could be a sign of overly fast expansion and should be monitored by the banks,â&#x20AC;? the report said.

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News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

BVD could be gone by Christmas Richard Rennie richard.rennie@globalhq.co.nz BOVINE Viral Diarrhoea researchers are struggling to get farmers on board with a project to better understand the disease despite offering a generous prize to those who can prove they are trying to manage it. With an estimated cost of $150 million a year on herd health, the hit is about $4000 a farm every year through ill thrift, diminished production, calf deformities and abortions. The BVD Free Challenge was launched at the start of the year to prompt farmers and vets to take disease control measures to help determine how much more productive herds would if the disease was eliminated. The data would also help provide a business case to present to the industry on a national approach to control the disease. Different stages of the competition include completing a survey that includes farmers’ and vets’ views on preferred national control measures, submitting a BVD plan for the farm and proving livestock have been tested. Some cattle get only a transient infection, from animal to animal contact, and recover after three weeks. But the most damage is done by persistently infected animals contracting the disease as embryos. They shed millions of BVD virus particles and continue to spread the disease from birth until death or removal from the herd. Vaccination before mating can eliminate the risk of permanently infected animals being born and transient BVD being contracted. Bulk milk tests can determine herd infection in dairy cows while blood tests are done for beef cattle. But BVD Free team leader, Massey University senior lecturer in veterinary epidemiology, Dr Carolyn Gates said getting farmers to enter a competition offering a $4000 prize has been tough. So far 126 vets have entered but

ECLIPSED: Mycoplasma bovis has overshadowed the on-going impact of Bovine Viral Diarrhoea, Dr Carolyn Gates says.

farmer numbers are expected to be even less. “And remember, this is in a country where we have about 12,000 dairy farms and over 20,000 sheep and beef properties so it is a small proportion.” Gates said the campaign has had a tougher road given Mycoplasma bovis has proved to be a major preoccupation for disease control. M bovis also has the luxury of an $800m-plus mega budget pulling in resources and political attention unlike any other since Psa in 2010. Nationally, there has been greater progress on BVD control in the dairy sector than the cattle sector, with about 65% of commercial dairy herds doing screening tests every year compared to less than 5% of beef herds. “This is partly because you can screen dairy cows through a bulk milk screening test whereas beef herds need to have blood or tissue samples collected from every individual breeding cow.”

Gates acknowledged the irony that BVD has a known and significant economic impact on cattle herds as her programme operates in the shadow of an eradication programme for a disease with little data on its actual financial impact. “NZ herds seem to be responding somewhat differently from herds overseas that contract M bovis. We do not seem to be seeing the same levels of mastitis and ill calves as reported in other countries.” Meantime, she and fellow researchers are collating data that indicates the $150m a year estimate of BVD’s impact is likely to increase. In terms of eradicating BVD, NZ authorities might do well to look offshore at the contrast between trying to eradicate M bovis versus BVD. While M bovis eradication has proven problematic with most countries choosing to live with it, BVD has been successfully eradicated from Scandinavia and Germany.

Scotland is also aiming to eliminate it, reducing it from prevalence in 40% of herds to only 10% in six years. In NZ two thirds of beef herds and a third of dairy herds are actively infected with BVD. But despite its prevalence here it could theoretically be eliminated by Christmas if the country made a concerted effort. Wholesale vaccination of breeding cows before mating would eliminate the risk of persistently infected calves being born next year while blood and milk tests would quickly identify any existing infected animals. “With M bovis, infected cattle shed low numbers of bacteria.” But a BVD animal oozes virus particles form every pore. “That is bad news from a disease transmission perspective but great news from a diagnostic perspective.” She suspects the case for BVD control will err on voluntary approaches but the upside of M bovis is that infrastructure to

New Zealand herds seem to be responding somewhat differently from herds overseas that contract Mycoplasma bovis. We do not seem to be seeing the same levels of mastitis and ill calves as reported in other countries. Dr Carolyn Gates Massey University manage a database on infected animals is in place through Nait. Gates said the BVD Free competition deadline is being extended to encourage more farmers and vets to enter. “There are already a lot of farmers and vets doing great work towards voluntarily controlling BVD in herds and we want to help support them.”

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FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

High country land’s future needs many collaborators

TOGETHER: Farmers have been creating partnerships to look after the high country for a decade, Balmoral Station owner Andrew Simpson says.

Annette Scott annette.scott@globalhq.co.nz THE future of Crown land lies in shared stewardship responsibility, Conservation Department regional operations director Roy Grose told high-country farmers at their annual conference in Blenheim. “It’s not about farmers versus the Crown and where or how does DOC fit. “It’s about sharing responsibility, about relationships and working in partnerships together. “We can build on the strong leadership we already have from high country farmers but we also need to collaborate and have working relationships with various community and environmental groups – shared stewardship from working in partnerships together. “We can achieve a win-win by identifying common ground and shared management challenges. “It’s about having good table manners, being honest with each other and breaking down the barriers. “We have to take an all-of-catchment approach if we are going to succeed and we need more government input as part of it. “We all have budgets and we all have limits and we have to work on those together.” The department’s vision isn’t so much about what it wants but how it can work in joint stewardship, he said. “It is my belief that if we work together there will be less unrealistic regulation and improved public perception on what we all are doing. “We are keen to have conversations for mutual benefit, value and commitment of all farming and conservation interests,” Grose said. South Canterbury’s Balmoral and Mt John Station owner Andrew Simpson said high-country farming is about running farming business while preserving the environment and conservation. “We have been on about partnerships for a very long time. The last 10 years we have been creating them.” He cited the success of Te Manahuna, an Aoraki-South Canterbury project, that has brought together a wide a range of businesses and people working to preserve the environment for all interests. “Farmers goals are very similar to DOC. If land doesn’t thrive our businesses don’t thrive,” Simpson said.

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News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

New leader predicts strong future for PWC Annette Scott annette.scott@globalhq.co.nz PRIMARY Wool Co-operative shareholders have backed the board, voting to support the organisation’s proposed future direction. At the annual meeting in Dannevirke shareholders provided overwhelming support for two key resolutions that incoming chairwoman Janette Osborne says cement a strong footing for the future. Osborne was elected to take over following 44 years of service by outgoing chairman Bay de Lautour. Farmer shareholders voted in favour of maintaining PWC’s 50% shareholding in CP Wool. There was also 98% support for a constitutional change enabling a capital raise to back CP Wool’s five-year strategic plan. “It was fantastic to see farmer shareholders emphatically supporting the future direction of their co-operative and the New Zealand wool industry as a whole,” Osborne said. “We’re thrilled to have established such a strong platform for the future. “At a time when wool prices are

presenting significant challenges to farmers our shareholders have demonstrated their optimism about several industry initiatives as well as supporting greater industry cohesion to achieve positive outcomes.”

We are proud to still be able to provide a positive return on investment even in these difficult times. Janette Osborne Primary Wool Co-op

Osborne said one of the biggest topics of discussion was the high volume of wool on hold and the financial impact of that. “However, the success of the work that has been done to achieve a significant reduction in losses from the previous year was also recognised with the outlook considerably improved for the coming year.” While the cumulative average return on investment to shareholders in the three years to

June 30, 2018, was 38%, Osborne said a period of consolidation for the next two years is expected. “We are proud to still be able to provide a positive return on investment even in these difficult times.” The board also aims to continue the tradition of strong South Island farmer representation with steps being taken to achieve that in the next few months, Osborne said. CP Wool chairman Craig Carr said the company’s fiveyear strategic plan covers several key areas of focus including raising awareness among consumers globally of NZ wool as a valuable and versatile natural fibre. CP Wool is also investigating the huge potential of hemp through its subsidiary, NZ Yarn. “Our team has delivered some tremendous achievements over the past couple of years, which have laid a solid path for the future. “These include new international partnerships, which are showcasing NZ wool on the global stage. “CP Wool, the Carrfields group and the Carr family are very proud to be involved in a joint venture with PWC, which is an

DOING WELL: Primary Wool Co-Operative’s new leader Janette Osborne says the organisation has established a strong platform for the future.

exceptionally strong farmer group,” Carr said. “The 19.7 million kilograms (of wool) that PWC shareholders transact through CP Wool each year is a credit to the leadership provided by both Bay (de Lautour) and Howie (Gardner) over the years and we’re looking forward to further developing our partnership with PWC as we embark on a very exciting future for natural fibres globally.” In a moving account of the evolution of PWC, de Lautour recalled how the 100% farmerowned co-op had grown from 400 farmer shareholders each

contributing $400 to now being NZ’s only farmer-owned wool co-operative with 1409 shareholders. PWC was formed in 1974 by a group of farmers to increase returns for wool growers and invest in the future of the NZ wool industry. Shareholders applauded de Lautour’s service and leadership to the co-operative. He will remain on the board as a director. Retiring director Howie Gardner was also recognised for his significant contribution over his 25 years of service to the boards of PWC and previously CRT Wool.

Federated farmers names finalists for its primary awards

industries’ producers and supporters. Primary Industries Team Award finalists are DairyNZ for Rosie the Cow and Beef + Lamb NZ, for Taste Pure NZ. The Primary Industries Science and Research Award

finalists are Lincoln University for ClearTech and Agricom/ Greener Pastures for Ecotain. The Primary Industries Innovation and Collaboration Award finalists are Farmlands for Safe Farm and Safe visits,

AgriCom/Greener Pastures for Ecotain and the Shearing Contractors Association for Tahi Ngatahi. The Primary Industries Chief Executive of the Year finalists are Linda Sissons, PrimaryITO, and Greg Campbell, Ravensdown.

No finalists were named for Outstanding Contribution to the Primary Industries Award to be given on July 1 as part of the Primary Industries Award Summit being held on July 1 and 2 in Wellington.

LEGAL TALK with Barbara McDermott What standard of work can you expect from contractors and professional services providers? Farming businesses, like all businesses, employ contractors and professional services firms to do work for them, often in conjunction with the supply of goods. When things go wrong unexpectedly and there is a significant loss to the business, often one of the first questions to be asked is whether the services have been carried out to the expected standard and whether the contractor or provider of the services should be held accountable for the loss. The question then becomes: what is the required standard that must be met by the provider of the services? Clearly work can be done to different levels of quality. Temporary pump arrangement fails causing substantial loss In one recent case a farming company was successful in the High Court in the first instance when it sued a contractor for loss incurred when a temporary riser pipe and pump within a new water bore being constructed by the contractor fell down the bore resulting in substantial damage. The farm services company successfully appealed that decision to the

Court of Appeal and was found not liable to the farmer for the damage. The temporary arrangement had been put in place by the contractor because the pump to be installed in the new bore had not arrived and the farmer needed water urgently. Shortly after installation of the temporary arrangement a joint in the galvanised steel riser pipe failed and a large section of the pipe and the pump fell down the bore. The costs to rebuild the bore and install the pipes were more than $140,000. In the Court case it was not disputed that the farm services company should have exercised a reasonable degree of care and skill which could be expected of an experienced contractor. The farmer claimed the contractor had breached the standards required by (1) failing to secure the temporary pump with wire safety ropes; and (2) failing to brace the pipes with lugs (to centre the pipes and pump within the bore). The Court held the level of care and skill required for professional services is to be judged on industry practice, but the Court is able to reject that industry practice if it considers the practice does not

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“withstand logical scrutiny”. The Court considered the evidence and found there was an extremely remote risk that the galvanised steel pipes would break. Because of this the Court found industry standards would not require the use of safety ropes or lugs to brace the pipes. This industry practice was justified because of the extremely low risk these types of pipes would break. The value of insurance and a robust contract document Where the standard of work has met the industry standard but the loss is the result of bad luck or an accident then insurance cover may provide relief. This case may well have been between the farmer’s and the contractor’s insurance companies because an insurer may step into the shoes of the insured and sue on the insured’s behalf (in legal terms called “subrogation”). You can also go some way to ensuring work is done to the standard you would like by describing the work clearly and fully in the contract.

LK0095397©

FEDERATED Farmers has named the finalists for its primary industry awards. They aim to spotlight the important role the primary sector plays in the economy and honour the most successful and innovative primary

News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Oceania puts workers on buses Annette Scott annette.scott@globalhq.co.nz FREE buses to and from work are proving the answer for Oceania Dairy as it manages growth in its operations and looks to attract new people to work at the South Canterbury plant. The Inner Mongolia Yili Industrial dairy factory employs 300 staff but is expanding to 400 by the end of the year. “With growth in production has come an increase in the volume of people travelling to and from work seven days a week, morning and night,” Oceania general manager Richard Hickson said. “The buses help ensure we minimise health and safety risks, attract the best people and make it as easy as possible for people to do a great job. “They also reduce our carbon footprint by cutting the number of vehicles on the road each day. “I’ve been on the bus home myself and it’s great to relax and let someone else do the driving.” As a significant employer the firm has invested heavily in South Canterbury with plans to build another ultra-high temperature (UHT) milk processing line, a canning and blending line and new laboratory.

HOMEWARD BOUND: Oceania dairy workers board the bus for a free ride home from work at Oceania’s South Canterbury dairy plant.

“This will bring the total number of employees to around 400 by year’s end. “Oceania and the dairy industry in general are strengthening the local economy,” Hickson said. “Dairy has been the lifeblood of the area. “The small towns and many support services in the region are

doing very well now because of the flow-on effect that dairy has had. “The bus service is another great example and Yili remains keen to do whatever it can to continue that trend.” The buses from Timaru and Oamaru have been well received by staff and are proving to be a key

factor with job-seekers. Trial runs started last month have run without a hitch. The buses are owned and operated by Oceania’s milk tanker provider Hilton Haulage. More than 70 people have started using the service that runs to and from both towns to coincide with Oceania’s 6am and

6pm shifts. It’s expected about 70% of production staff will eventually use the buses on a regular basis. UHT process controller Pawandeep Kaur catches the bus from Timaru. After two years with the company she says one of the perks is now getting to have a rest immediately after a long shift. “It would take me around 45 minutes driving by myself to work, which was tough. “Now it’s really nice to be able to relax on the bus and not worry about driving in the dark,” Kaur said. Dispensary process controller Moana Waldron is one of Oceania’s original employees who now uses the bus regularly. “It’s been amazing to have transportation to and from work. “Not only am I saving petrol money but there’s less wear and tear on my car. “With this extra money we might have enough for a family trip overseas next year,” Waldron said. UHT process controller Kevin McCloy said he would usually spend about $90 to run his car to and from work for two days. “Using the bus is just like getting a pay rise,” he said.

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Fonterra delays date to comply Hugh Stringleman

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Govt cash helps advance water storage project Annette Scott annette.scott@globalhq.co.nz

hugh.stringleman@globalhq.co.nz

MORE than 2000 Fonterra farmers have been offered a four-month extension to comply with their 2019-20 shareholding requirements. The compliance date has been pushed out to April 20 from December 1 in past seasons. The reasons include the significant financial pressure on farmers’ balance sheets as a result of Fonterra’s lower share value, about $4.20, co-operative affairs managing director Mike Cronin said. Another reason is the impact on farmers of the more stringent lending criteria adopted by banks. Not stated by Cronin is the now slim chance of Fonterra paying a dividend for the 2019 financial year, after last week’s substantial downgrade of earnings. Farmers in their fourth, fifth and sixth years of a sixyear share-up contract have also been offered a one-year extension. Cronin said the later date will have minimal impact on share trading because the number of shares farmers have to buy has not changed. However, the upward pressure on share prices before compliance date seen in past years will be postponed. “Approximately 2100 farmers will be required to purchase shares to meet their 2019-20 requirements and will therefore benefit from greater cashflow on farm,” Cronin said.

GOVERNMENT investment in Wairarapa Water is the funding necessary to unlock economic growth in the region. “This is the boost we have been needing since Wairarapa Water was established in July last year when Crown Irrigation Investments was scrapped and Greater Wellington Regional Council involvement in the project wound up,” inaugural chairman Tim Lusk said. “We have just kept our heads down until we got some funding. It’s taken a while to get through the transition but we can tick that box now and use this funding to progress the project.” The Provincial Growth Fund (PGF) is investing $800,000 to investigate the development and construction of a $100 million community water storage scheme to unlock environmentally sustainable economic growth opportunities. The money will support a review and update of a 2015 prefeasibility study that investigated and identified potential water storage sites. It will be a part of a $1.2m feasibility budget. “It will get us through to a point that can we can determine with key stakeholders whether we continue through to a consent,” Lusk said. Of the seven options investigated by the regional council the Wakamoekau option northwest of Masterton on the Ruamahanga River was found most favourable in terms of the PGF application. “We ended up selecting this option as, while smaller, it was the most attractive and best ticked most of the boxes.” It also aligned the study to recent climate change projections

ENCOURAGING: Wairarapa Water’s inaugural chairman Tim Lusk says Government support will be helpful to get others involved.

We have just kept our heads down until we got some funding. Tim Lusk Wairarapa Water and Government policies regarding small-scale water storage schemes for communities, Lusk said. “This funding is a critical step now to bringing previous feasibility work up to date in terms of construction costs and recommendations around minimum flows and climate change.” The council and Crown Irrigation spent $8m on

investigations eight years. Feasibility work will happen over the next four months and will be done in collaboration with the regional council and the Masterton, Carterton and South Wairarapa District Councils. “We will then decide with councils whether we push further and prepare for a consent.” The Government support will help gain the confidence of communities and potential investors. “We were struggling to get funding after Greater Wellington finished. This support of central government will be very helpful in getting others involved and also to leverage with private water users in a few months’ time.” The region’s water supply is becoming unpredictable, particularly in summer.

Without it local businesses relying on water could be increasingly limited in their ability to operate and grow. Lusk said it is a significant opportunity for farmers to transition to the higher-value crops climate change and water security will unlock. Research has shown that in the next 25 years an extra 1000 hectares of apples can expect to generate 1300 more jobs and $81m a year in GDP for the region. But a reliable water supply will be needed. The project has the potential to provide up to 18 million cubic litres of stored water. A reliable water supply would attract new industries, supplement domestic water supplies and mitigate the impacts of drought.

News

16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Iwi hort gets boost on coast Richard Rennie richard.rennie@globalhq.co.nz IWI and the kiwifruit industry are welcoming the latest tranche of funding from the Government’s Provincial Growth Fund that brings prospects of even greater funding in coming years. The PGF is putting $370,000 into a kiwifruit project run through Te Kaha Landowners, an iwi consortium of six ahuwhenua trusts that own kiwifruit orchards across the East Cape area. The initial funding is to be followed by as much as $13 million to boost iwi jobs in the remote region through horticultural projects aiming to create yearround employment for almost 200 people. Kiwifruit Growers Inc chairman Doug Brown, a shareholder in some eastern orchards, welcomed the move in a region he said is rapidly gaining status for its ability to grow SunGold kiwifruit. “This is highly positive news and good to see the Government backing this isolated, rural community district.” Having been involved in

the development of orchards throughout that district Brown said it will now have one of the highest percentages of SunGold orchards of any growing region.

If you look way back the district has had a history of horticulture supplying the region. Crops mature relatively early and there are good fertile soils. Doug Brown Kiwifruit Growers Inc “If you look way back the district has had a history of horticulture supplying the region. Crops mature relatively early and there are good, fertile soils. For kiwifruit growing you also get good summers. Possibly one of the constraining factors has been water supply.” The funding that follows the

initial grant is subject to successful planning work that will examine the development of a water distribution network. If successful, it will enable the expansion of 100ha of kiwifruit orchards on Maori land. OPAC post-harvest processor chief executive Ian Coventry said the development marks the next step in a relationship established 20 years ago when OPAC made contact with iwi land owners there. “We first saw land that had been in maize growing go to kiwifruit in the early 2000s and again in 2008-09.” Coventry welcomes the investment in a water scheme that will involve building a storage facility and tapping flow from waterways. “It will certainly unlock the potential you have in what is a very fertile, good growing district.” His Opotiki company is discussing expansion plans for its packing facility as a result of the proposed orchard expansion up the coast. The PGF project is a further injection for iwi engagement in the high-value horticultural sector in a

region bestowed with quality soils but needing more investment to encourage development. Other recent Bay of Plenty Maori investments in the sector include 100% iwi-owned Te Awanui Huka Pak taking a 17% stake in Seeka and a $30m investment programme to build 10 kiwifruit orchards in Bay of Plenty and Gisborne. Iwi interests have also secured a 98 canopy hectare kiwifruit orchard producing 2.6m trays of Green and SunGold fruit last year near Te Puke. The sale was estimated to be valued at $65m to $75m. The investments come in a region with a young Maori demographic – 44% of the population is under 15, compared to 33% nationally. Maori earn $100 a week less than the average Bay of Plenty household income and 30% of household income is governmentsourced. Regional Economic Development Minister Shane Jones said the investment will also include a skills and training programme of core projects

POWER TO IWI: OPAC chief executive Ian Coventry welcomes the injection to unlock iwi potential for East Coast horticulture.

including the development of a trial kiwifruit nursery, science lab and a living wage horticultural pilot project. “The living wage trial will annualise wages for horticultural workers across the whole year and could be used by the wider horticultural sector, leading to a more permanent workforce across the seasons,” he said.

Fund to invest in horticulture Hugh Stringleman hugh.stringleman@globalhq.co.nz

RAIN GEAR

Since moving away from dairy syndicates MyFarm has raised $165m for investment in 18 horticultural businesses since 2015. investing in a business in a single geographic location and on one crop. MyFarm said Kakariki will be scheduled for an NZX listing in three to five years, providing a chance for retail investors to participate and providing a potentially rewarding exit for wholesale investors who get in at the ground floor.

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Chief executive Andrew Watters said there is no other way New Zealanders can invest in a diverse range of permanent crops or benefit from the intellectual property the partners have in their plant varieties and brands. Rockit Global chief executive Austin Mortimer said demand for the apples is outstripping supply and the company plans to treble its orchard area to 600ha in Hawke’s Bay by 2025. Kakariki will have an independent board of directors comprising chairman Julian Raine, the previous chairman of Horticulture NZ, John Loughlin, chairman of Rockit, Hop Revolution and EastPak, Dianne Kidd, director of Co-operative Bank, and Paul Richardson, an independent financial consultant.

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LEADING: Former Horticulture NZ chairman Julian Raine, a Nelson grower, will head Karariki Fund.

MYFARM has launched a $100 million fund to invest in a group of horticultural enterprises rather than one-at-a-time syndicates for kiwifruit, avocados, hops and pack houses. The Kakariki Fund is aimed at wholesale investors with minimum amounts of $100,000 to invest, a qualification that has applied to MyFarm offers in the past. MyFarm has identified four initial properties; a kiwifruit orchard in Bay of Plenty, a half share in a 130 canopy hectare hop farm, 35 canopy hectares of Rockit apples and a new 2000ha manuka plantation. The first call on investors will be

25c in the dollar to buy those four assets. Since moving away from dairy syndicates MyFarm has raised $165m for investment in 18 horticultural businesses since 2015. The target for Kakariki is annual investment returns of 10%, made up of earnings from the sale of crops through the partners and any increases in land values. The partners are Rockit Global and Freshmax in apples, Sacred Hill Wines, grower Hop Revolution, manuka honey producer Comvita and kiwifruit grower and packer DMS Progrowers. Investors in Kakariki will be exposed to all ventures, reducing the risks that come with

News

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Looking after yourself comes first farmstrong.co.nz

CONTRACT milker Abbi Ayre learnt the hard way that no matter how busy life gets on the farm you still need to look after yourself. Abbi and her husband Frikkie work on a 900-cow dairy farm AT Culverden, North Canterbury. They met over the fence and have worked together as contract milkers ever since. Though Abbi’s not from a farming background she’s taken to it like a natural. “I love the fact that I get to work outdoors and that no two days are the same. Being a farmer is a bit like being a vet, a builder, a scientist, an electrician and a plumber rolled in one. You get to do all the jobs that make up farming. That’s very satisfying.”

I was working very long hours, often with no breakfast and sometimes no lunch.

But, like any job, sometimes you can have too much of a good thing. A few years ago lack of downtime really took a toll on her wellbeing and she’s keen to avoid a repeat. “I was working very long hours, often with no breakfast and sometimes no lunch. “But it was my first job and I didn’t know any different. I almost didn’t carry on in the industry. Once you get tired like that, it’s a downward cycle. You start eating shitty food and then you start feeling shitty. I’m much more aware now about looking after myself and our staff too.” The first six months of the dairy season are always particularly busy as Abbi combines helping run the business with on-farm relief work, AI technician duties and calving. Getting time off to recharge the

batteries isn’t easy. The answer is to work smarter. “In farming you’ve got external stuff like the weather and payout prices – things you can’t change at all. But there are other things about your operation, like staff and rosters, that you can change to make sure you and others get time off. “We’re just in the process of altering our roster now so that everyone has more regular time off and they’re not working too long hours but we still all know what’s happening at work as well.” A unique challenge of farming is that people often live where they work. That makes escaping work worries doubly difficult. “Farming can definitely put you under a lot of stress as a couple. We work together and live in the same house and we’re always talking about things that we’re going to do or need to do on the farm whether it’s at breakfast, lunch or dinner,” she says. “Two or three years ago we realised that we couldn’t actually have a proper break unless we go overseas or somewhere with zero cellphone reception. So now that’s what we do.” The couple also schedule regular breaks for local activities. “My husband plays golf at least once a week and I do a lot for the Dairy Women’s Network. I’m a regional leader and help to organise events around the area which keep people connected.” Abbi says the network has played a big role in helping her feel on top of things. “Having that sort of support is just the biggest thing. I get to see a group of women on their one night off farm and we don’t talk about cows and grass. Being in a room full of women like that is special. It’s a great boost.” Abbi says women’s on-farm contributions can sometimes be undervalued and women should work on their confidence and leadership skills to compensate. A turning point in her own thinking came a few years ago when she saw a Farmstrong video on farming women’s wellbeing. “This video showed the

The Growing Fund Target 10% p.a.**

BEYOND THE FARM GATE: Abbi Ayre loves her job working with cows but realises there have to be other things like off-farm activities, keeping fit and eating well.

pressures that rural women face and how they deal with things. Every woman in the room could identify with that. It really showed that as a woman in farming you need to look after yourself and make your wellbeing a priority. “I also did an Agri Women’s development course, It’s All About You, which really helped me. Once you learn to value yourself you can do a much better job of passing that message on to everyone else. Sometimes you’ve just got to put your own needs first and ask yourself what’s one thing that you do each week that’s just for you. Just one thing. Mine is that sometimes I go for a massage and devote that time to myself.” Abbi has also explored other strategies for coping with busy times.

“Over calving time this year I actually sat down and made a meal plan for the whole of calving, which is something I picked up from another lady attending an event. It definitely made cooking meals a lot easier during calving. We got a lot less takeaways this calving. If you eat well, you have more energy.” As Abbi’s administration role has expanded, keeping active has also become a priority. “What I found over the last couple of years is that being less active on the farm I really needed to do some exercise. So we play touch rugby in the spring and we’ve started going for a walk once a week up a hill somewhere just to keep in shape. I also enjoy horse riding. Sometimes it’s a little thing like walking to the

cow shed instead of driving.” Abbi says maintaining a positive frame of mind also helps when the going gets tough. “You can’t just focus on the problems in farming, you’ve got to stay positive and decide how you’re going to deal with challenges and keep moving forward. There’s no point dwelling on things that have happened. That’s a real trap.” The biggest lesson Abbi has learnt is not to carry the load alone. “A couple of years ago, towards the end of calving, I was at one of our dairy women’s dinners and the woman running it asked people to put their hand up if they’d had to deal with coccidiosis, rotovirus or crypto (cryptosporidium) and pretty much everyone’s hands went up. There was this giant sigh of relief in the room because no one felt alone any more dealing with it.” Mini-breaks going to the local store also help break up her week. “In the past we’ve worked in some very isolated places but we’re lucky now. We’re only 10 minutes from Culverden so we often just head to the Farm Source store to have a break and grab a coffee and chat with other people coming in for farm supplies. There’s also a monthly barbecue they run so there are definitely things you can join in if you want to. “I’ve learnt that every season is different and every season has its challenges. “The trouble is when you’re working in a situation where you’re isolated it can often feel like the world’s falling apart. That’s probably the time you feel least like going out and reaching out to others but that’s the time when you need support the most. If you’re feeling under the pump, share the load and remember you are not alone. “Get out and talk to somebody, whether it’s a dinner group or a byo fish and chip night with neighbours and friends.” is the official media partner of Farmstrong

Kakariki is a New Zealand investment company enabling kiwis* to invest in hard-to-access, large-scale permanent crops that have delivered spectacular increases in grower returns. We target 10% p.a.** or more from high-value, permanent crops including kiwifruit, vineyards, RockitTM apples, sweet cherries, plantation manuka, avocados and aroma hops. Our investments will be grounded in sustainable agricultural practises and we aim to be carbon neutral by 2024.

Find out how you can share in the growth of our horticultural champions. Watch the video and request an Information Memorandum at kakarikifund.co.nz

Minimum investment $100,000. Offer closes Wednesday 26 June 2019.

Brought to you by MyFarm Investments

*This offer is only open to investors who fall within the exclusions applicable to offers made to “wholesale investors” as set out in Schedule 1, clauses 3 (2)(a)-(c) and 3 (3)(a)-(b)(ii) of the Financial Markets Conducts Act 2013 (FMCA). You can obtain further information on FMCA requirements, and whether you come within the exclusions and their requirements at www.myfarm.co.nz/fmca **On maturity of property developments.

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News

18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Specialist Jersey milk prod Lewis Road Creamery’s new national Jersey milk range begins with cows on the outskirts of Hamilton, one of the country’s fastest-growing urban areas. Collins Road Farm, owned by Theland Farm Group, a subsidiary of Dakang, will supply the Green Valley Dairy processing plant in north Waikato which will process the milk for Lewis Road. Hugh Stringleman visited both places before the launch.

NE of the country’s largest corporate dairying groups wants to differentiate its products and specialise in liquid milk here and in the giant Chinese market. Theland Farm Group has agreed to supply year-round Jersey milk for national distribution that will consistently be higher fat, pasturefed and palm kernel-free. Chief executive Justine Kidd, former Dairy Woman of the Year, said the Lewis Road plan was mooted late last year and Collins Road was selected for cows with a minimum of J12 (at least 12 sixteenths Jersey) breeding. “We had some here already and others were collected around the Theland North Island farms and we have gone into the market to get some autumn-calvers.”

Another requirement is that milk fat should be 5.6% or more and the components should be consistent year-round, which will be challenging. The plan calls for 400-500 Jersey cows in total, about half-and-half autumn and spring calving. That will be just under half of the cows milked on Collins Road, the 394ha suburban farm at Temple View, providing scope for increasing the Jersey milk production in the short term. Theland intends to move wholly to Jersey winter-milking there when feed supplies allow. The peat soil is slightly warmer than other parts of Waikato, for better winter pasture growth and high maize yields are achieved. A second vat has been installed and Green Valley has tankers and trailers that will carry milk segregated into that for the local

MANAGEMENT: Theland Farming’s chief executive Justine Kidd and North Island operations manager Frano Staub.

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EXCITEMENT: The Collins Road farm staff are challenged by the new arrangements.

liquid market and that to be processed for export. The regulations that apply on-farm for food safety and animal welfare are the same for all markets, operations manager Frano Staub said. Winter milking is not new for the five Collins Road staff but the added herd complexity and the national Jersey launch have generated excitement. Theland already sells 40,000 litres a week of fresh milk airfreighted into China, processed at Green Valley. The Jersey herd will be milked first, beginning at 6am, and should finish in less than two hours. The milk lines will then be airpurged to the Jersey vat and the second herd brought in at 8.30am. The afternoon milking times will be 2pm and 4pm respectively, Staub said. The autumn in-milk Jersey cows are on a daily diet of 18kg DM to ensure good winter mating results. Somatic cell count is a focus for

the farm team, to ensure it stays below 150,000 cells/ml. “Theland has the room to grow milk output as New Zealand falls in love with Jersey milk and the volumes go up,” Kidd said. “There are some interesting new technologies to extend the shelf life and our China marketing team will be watching closely to gauge the potential for Jersey milk in that market.” The Theland Tahi group of 16 farms in the North Island is moving towards milk specialisation and this is a first step for its 12,500 cows. “We are keen to get ourselves market-ready for specialty milks and therefore delighted this Jersey opportunity has come along.” As a response to unforeseen demand Theland can dedicate another of its Waikato farms or potentially partner with another producer. Land expansion is not part of the corporate plan but higher value is core strategy.

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Collins Road will breed its own Jersey heifers for herd replacements and introduce compatible terminal sires over the Jersey cows to ensure all male calves and unwanted females go into meat production, Kidd said. Autumn calving and the Hamilton location ensure a strong market for surplus calves. “Theland has a strong focus on waste reduction and value-add opportunities.” Lewis Road Creamery and Theland readily agreed on the premium raw milk price for the Jersey supply, Kidd said. The recommended retail prices fall in the range of $3.80-$4.60 a litre, depending on bottle size and variety – three varieties will be homogenised, non-homogenised and light. Green Valley Dairies was formed by the Pulman family in 2003 at Mangatawhiri, northern Waikato, and employs 50 people in the processing plant and a further 50 drivers, farm workers,

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News

farmersweekly.co.nz – June 3, 2019

ucts launched administrative staff and casual workers. It produces organic, nonorganic and flavoured milks under its own name, two Barista varieties and organic and non-organic creams while also processing about half of the throughput for partners such as Theland. The plant has the neighbouring Marphona dairy farm of 1200 organic cows and another adjoining farm of 800 non-organic. General manager Mark Pulman and site manager Adrian Dunham said the principles and controls of organic production will be replicated for the Lewis Road Jersey products. One tanker and trailer a day will come in from Collins Road farm with both the Jersey and non-Jersey milks kept separate. Lewis Road Jersey milk will be sent in the afternoon and be distributed by Big Chill throughout the country over the next 24 to 48 hours.

TRANSITION: The Collins Road farm will move to wholly Jersey, autumncalving cows, Justine Kidd says.

Milk will be on sale within two or three days of leaving the farm with 15 days shelf life. Milk is always tested for inhibitory substances and sensory rated when coming into the plant and after pasteurisation it is rechilled.

The aim of Green Valley is to add value to milk wherever it can because milk is too cheap compared with other beverages, Pulman said. His family is also dairy farming and will do all that it can to support the dairy industry.

“No one wants to see anyone injured on the farm and we need to do better.” TONY WATSON General Manager, Agricultural Leaders’ Health and Safety Action Group

New brand will test nationwide demand Hugh Stringleman hugh.stringleman@globalhq.co.nz BRANDED Jersey milk has gone on sale nationwide as dairy foods innovator Lewis Road Creamery seeks to test consumer demand for premium dairy products. Jersey milk will be higher fat, permeate-free, palm kernel-free, lower lactose and higher calcium than what Lewis Road founder Peter Cullinane calls the cheap and bland mass-market milks. Sourced from a Theland Farm Group autumn-calving herd on the outskirts of Hamilton, the Jersey provenance must be 12 sixteenths breeding or higher, grass or farm-crop fed and strictly segregated throughout milking, storage, transport and processing. Pasteurisation and bottling will be done by Green Valley Dairies, a small processor in northern Waikato, that has been supplying Lewis Road’s existing premium products. With 29 farms nationwide Theland can expand its Jersey milk specialisation as demand grows and another Lewis Road partner, Southern Pastures in Canterbury, can be called on. Cullinane says his sales force has approached all supermarket chains, both centralised and local decision makers, to announce the availability and take orders. The reputation of his company and its products means retailers accept there will be a demand for the Jersey milks, sold in several markets

REPUTATION: Retailers accepted Peter Cullinane can deliver Jersey milk sales for Lewis Road Creamery.

overseas and by localised farmgate vendors here. The latest range will comprise homogenised blue-top, nonhomogenised sliver top and light blue top in 1.5l and 750ml award-winning rPET bottles made from 100% recycled plastic. The recommended retail prices will be $5.75 and $3.49 respectively, equivalent to $3.80$4.60/l or one-and-a-half times to twice the shelf prices of the mass-market Anchor, Meadow Fresh and house brands. “Those prices are significantly below organic but they are

premium prices reflecting the superior qualities of our Jersey range,” he said. “Our customers want to know the provenance, want products that haven’t been over-processed and they want to be able to taste that difference.” The single-breed milk will be richer, creamier, higher butterfat and have a more velvety texture. The non-homogenised milk will be 5.6% milk fat and 4.1% protein, the homogenised will be 3% milk fat and the light 1.5% and all the range has less water, less lactose and higher calcium than standard milks. Cullinane said permeate is used by the bigger processors to even out seasonal variations but Jersey milk will vary slightly from winter to summer and that is to be welcomed as being the reality of primary production. Palm kernel is fed to cows by farmers wanting the maximise milk production and keep the herd producing during dry periods. “Consumers know the reality of palm kernel and the damage being done to the environment in palm oil producing countries and they are trying to avoid it so we are providing that option,” he said. Jersey New Zealand president Alison Gibb said breeders are delighted Jersey milk is being highlighted. “This has been a long time coming. I was always envious when travelling overseas and seeing the fuss that was made of pure Jersey milk in other countries.”

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News

20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

M bovis gets a research boost

FASTER: More research money provides a real chance to accelerate Mycoplasma bovis eradication, Primary Industries Ministry chief science adviser Dr John Roche says.

Annette Scott annette.scott@globalhq.co.nz NEW Zealand’s Mycoplasma bovis response programme is set for a boost through the Government’s commitment to diagnostics research as part of its $30 million science investment supporting eradication efforts.

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The Ministry for Primary Industries and eradication programme partners DairyNZ and Beef + Lamb NZ are seeking diagnostics research proposals as outlined in the M bovis science plan. M bovis strategic science advisory group chairman and MPI’s chief science adviser John Roche said the focus is on diagnostic tools that will contribute to national surveillance testing and on enhancing diagnostic test performance at herd level. The group is also interested in tools that can be used on germplasm. “We believe that the greatest use of the developed tests will be in the proof of freedom phase and for monitoring and preventing further incursions. “This is a real opportunity to help accelerate the eradication of M bovis from NZ,” Roche said. Accelerating the eradication of M bovis from NZ is the main objective of the science plan and only diagnostics research that will contribute towards achieving this will be funded. “We are looking forward to seeing what researchers and companies will put forward in response.” A portfolio of different diagnostic projects might be funded with all proposals to be evaluated by a panel that will make recommendations to the M bovis governance board for approval. The diagnostics request for proposals is open to both national and international tenders. Roche encourages all those with expertise, including entities with diagnostic tools already in development, to apply. Applications close on June 19. The M bovis strategic science advisory group was established in July last year to support prioritisation of science to speed eradication. The group is tasked with providing high-level recommendations to the M bovis governance board on the requirements for strategic science and plays a key part in ensuring a well-aligned science programme. The science plan was developed to build on existing knowledge of the bacteria and disease along with knowledge from the dairy and beef sectors and response teams to identify the highest priority science needed to successfully eradicate M bovis. M bovis was found in NZ in July 2017. The disease is thought to have arrived in imported semen but the path has not been confirmed. MPI remains confident eradication is feasible. It was first detected in America in 1961 then in virtually every cattle farming country since. No other countries have gone for mass slaughter because of lack of investment and lack of knowledge. International data on the disease’s spread around the world records America as the first to identify M bovis followed by Israel in 1964, Spain in 1967, Australia 1970, France 1974, Czechoslovakia 1975, Germany 1977, Denmark 1981, Switzerland 1983, Morocco 1988, South Korea and Brazil 1989, Chile 2000 and South Africa 2005. There was a seven-year break before Finland in 2012 followed five years later by NZ in 2017. Finland is the only country, other than NZ, with a control plan. While it never imposed compulsory herd culling, a voluntary slaughter scheme was established. From the four cases identified in 2012 the number of cases grew to 70 in 2017 and it was six years before a significant reduction happened with just 33 M bovis cases recorded in 2018. NZ’s 10-year compulsory eradication programme has so far slaughtered almost 100,000 cattle.

News

farmersweekly.co.nz – June 3, 2019

BUOYANT: Vegetable seed is a growing part of the horticultural success story, Grain and Seed Trade Association general manager Thomas Chin says.

Horticulture’s earnings surge Richard Rennie richard.rennie@globalhq.co.nz VEGETABLE seed exports have helped push the horticultural sector to a record earnings year, lifting total sales by $400 million to top $9.2 billion in the year ended on June 30 last year. That total includes $5.5b of export earnings and puts the sector close on the heels of the $6.7b red-meat export sector. Latest data in Plant and Food Research’s Fresh Facts highlights the strong growth experienced almost across the board in the horticultural sector, with some surprising, quiet performers in the ranks. Unsurprisingly, kiwifruit claims the top spot, making $1.86b in export earnings, up 40% on the five year average. It is also greater than the value of the horticultural sector’s total exports only 20 years ago. Wine is the second export success, delivering exports worth $1.69b while apples are next at $732m. The numbers show the vegetable seed sector surging ahead. Total vegetable seed earnings were up 43% at a record $94m, well ahead of the sector’s fiveyear average. Returns were driven largely by a more than doubling of carrot seed sales and a 50% increase in other seeds including brassicas. The vegetable seed sector is on a near-equal footing with avocado exports of $104m and ahead of cherries at $84m. Grain and Seed Trade Association general manager Thomas Chin said the lift in vegetable seed sales has come as northern hemisphere seed companies ramp up vegetable seed production.

“They have been looking to take advantage of NZ’s high biosecurity standards and our off-season production cycle to multiply their seed volumes quickly.” They also want to reduce their exposure to a single hemisphere production source as climatic and land use risks grow.

They have been looking to take advantage of New Zealand’s high biosecurity standards and our off-season production cycle to multiply their seed volumes quickly. Thomas Chin Grain and Seed Trade Assn “We also offer a level of quality and pest resistance that makes us a good source for seed that is grown specifically. “The northern hemisphere seed companies own the intellectual property and have specific markets for it. It is not a commodity product.” NZ now accounts for 55% of the globe’s carrot seed production and a third of the radish production. Onion and other vegetable seeds are also growing with Asian style greens contributing significantly. “Ten years ago you would not have found much bok choy seed grown, for example. Now there is demand here and abroad for it from Asian markets.” Chin hopes a Primary

Industries Ministry delegation visiting China this month will help open the door for greater brassica seed sales there, a product not exported since 2013 and awaiting new export protocols to recommence. But he acknowledges the irony of vegetable’s double bite at the export earning opportunity. Seed is often sold back to NZ growers who grow it to a final crop, in turn destined for export. Onions, for example, earned $93m in export earnings for the 2018 year and about $5m in seed exports. It is hard to pick what the next big seed crop might be but prospects look good for hemp as its applications open up thanks to changes in legislation around consumption. Hemp seed has been imported from Europe and Canada. “But if we get enough growers here there is potential, having a customer for it is the main thing.” Even the humble potato has exhibited strong growth in export sales to hit $115m as processed product, up 23% from $94m the year before as sales move from fresh to processed products. Potatoes NZ chairman Stuart Wright said growth prospects are positive with good, steady gains coming for processed potatoes in South Korea, Australia and Japan, aided in part by a difficult northern hemisphere harvest. NZ horticultural produce is now exported to 128 countries with Europe, Australia, the United States, Japan and China the main markets accounting for 72% of earnings. Asian exports have had the biggest increase, leaping $912m to $2b in a single year.

“Take a few minutes before you start to think about the best tools or vehicle for the job and conditions. If you encounter an unexpected hazard, stop and consider the best way forward.” LOGAN WALLACE FMG Young Farmer of the Year 2018

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News

22 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Outdoor access rules review is on Annette Scott annette.scott@globalhq.co.nz PEOPLE wanting to play in the outdoors are being invited to have their say on legislation that helps them access recreational spaces. Waking Access Review reference group chairman Hugh Logan told high country farmers at their Blenheim conference now is the time to speak. “Are their problems, if so what are they and how can they be fixed?” The Ministry for Primary Industries is reviewing the Walking Access Act and has asked for public feedback. Logan said the act provides both New Zealanders and international visitors with access to many outdoor spaces. It includes public access over the high country, bush, rivers, coasts, mountains and areas of cultural significance in cities, towns and further afield. There’s no question of changing the act’s two ideals – free access without the right to roam and right of access by permission of the landowner. The review is looking at whether the act is fit for the future and what improvements are needed. “What are the issues? The

SPEAK UP: Outgoing high country farmers’ chairman Simon Williamson encourages farmers to have their say now in the review of the Walking Access Act.

feedback so far is generally things are working okay but some things could be changed.” He cited barriers to landowners, coping with increasing visitor numbers, particularly in the South Island and the behaviour of overseas visitors. “We’re keen to hear from individuals, organisations and

groups with an interest in enjoying the outdoors. “This includes everything from walking and bike riding to swimming and fishing, connecting with Maori sites, outdoor education, hunting, four-wheeldriving.” Maybe in some cases crossagency management will better

help meet farming needs, he said. “For example, changing knowledge about behaviours in the outdoors including firearms, fire restrictions and so on. “If you have ideas we want to hear from you.” Unformed legal roads, also known as paper roads, were highlighted by farmers as an ongoing issue despite some having established alternative routes where those marked on maps go straight through farm infrastructure. “In our case we have a paper road going through working space – stockyards and the bunk house and despite having made another road at our cost to address the issue there’s still a small group determined to use the unformed road because it’s on the map,” Molesworth station manager Jim Ward said. Logan said the Crown is very cautious about those roads. “Uplifting a legal road is a real sensitive issue and one that we are aware is a concern to property owners.” Overseas visitors need to be made aware NZ is not a place they can wander at will. “Pamphlets at the airport are not the answer. You find someone in breach and the first thing they

In our case we have a paper road going through working space – stockyards and the bunk house. Jim Ward Molesworth Station do is bring out their phone and say – it says ... “We need to hit social media with the messages,” Ward said. Demands of providing infrastructure such as toilets, bridges, car parks and cabins was a concern raised by farmers. Outgoing high country chairman Simon Williamson highlighted health and safety as a grey area. “There are some complicated issues here that we chew over quite often,” Williamson said as he encouraged farmers to have their say in the review process.

Information, dates and venues for public meetings will be shared on MPI’s website and Facebook page.

News

farmersweekly.co.nz – June 3, 2019

Waikato cannabis firm seeking cash Richard Rennie richard.rennie@globalhq.co.nz CASTING aside social stigma and opening up investment opportunities in medicinal cannabis production has a Waikato firm making the first public offering on the NZX for two years. Cannasouth co-founder Mark Lucas is optimistic the upcoming Misuse of Drugs (Medicinal Cannabis) Amendment Bill will deliver regulations that enable companies like his to develop and grow a range of products that cover multiple ailments and diseases. “We understand the draft comes out in July so there is a bit of water to go under the bridge but we feel confident about what will pass. The intention is there.” It is based at the Waikato Innovation Centre, which is fast becoming a hub for biotech innovation by companies including award winning Quantec, Analytica Laboratories and CRV Ambreed. Lucas said the company wants to raise $5 million from invited investors and another $5m in a public offer, selling up to 20m shares at 50c each. The company has secured licences to cultivate, extract, import and purify medicinal cannabis and cannabinoids for research purposes. It also has two licences required to import cannabis products to sell. The company claims having the licences puts it on a faster track to commercialisation than competing companies. Lucas has a long history dating back to the nineties importing hemp products and was involved in early trials of hemp growing in Canterbury in the early 2000s. He is loath to specify exactly what medicinal cannabis crop type the company will be cultivating here, with that very dependent on the regulations the new law will cover when finalised. Another medicinal cannabis company, Helius, has disclosed plans to grow the plant with the cannabinoid compound THC in high-security warehouse hydroponic operations in Auckland. “To be grown cannabis with high THC content requires tight security and that dictates the cultivation method. But cannabis with the nonpsychoactive compounds, including industrial hemp varieties, could be grown outdoors. It all depends on the product you are making from it.” Last year authorities granted approval for the sale of lowTHC hemp seed for human

“If the job isn’t safe, then leave it until it can be done safely.” GEORGIE LINDSAY FMG Young Farmer of the Year 2019 Grand Finalist

GOING GREEN: Mark Lucas of Cannasouth is looking for multiple remedy options from medicinal cannabis regulations.

More people are waking up to plantbased remedies. It has really only been the social stigma attached to cannabis that has held it back for so many years. Mark Lucas Cannasouth consumption and Lucas said the plant is starting to lend itself to multiple uses including fibre, food and medicinal production. “More people are waking up to plant-based remedies. It has really only been the social stigma attached to cannabis that has held it back for so many years.” Other plant-based medicinal products include powerful opioids from poppies, a major crop grown for pharmaceutical companies in Tasmania supplying about half the legal global opiate production. “We know that farmers should be left to do what farmers do best, producing quality products efficiently and for the low THC varieties we hope we will partner

up with farmers to produce the cannabis.” The medicinal extracts from cannabis are proving to have some human health benefits in the treatment of arthritis, skin conditions and epilepsy and final application of cannabinoids will be determined by the regulations. “We also expect to see some of the non-psychoactive extracts apply to the rapidly growing wellness market where they do not require regulatory approval. It could be that over time consumers start to seek out products based on their provenance and possibly even organic sourced cannabis could play a role.” He says much of the research is still in its early trial stages and the company bases its product range on scientific results and regulatory guidelines. The Cannasouth offer opened on May 27, closing on June 14 and the shares are expected to list on June 19. The legal cannabis market attracted more than $15 billion in investment globally last year and the United States market is estimated to be worth US$24b this year. The company is the third in NZ to raise money publicly, with Greenfern from Taranaki and East Coast’s Hikurangi raising funds through crowd funding last year.

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News

24 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Auckland city plans green farms Glenys Christian AUCKLAND City Council plans to use its 1500 hectares of farmed land to demonstrate and pass on proven technological innovation to the region’s farmers. It launched its Farms and Food for the Future strategy in April, focused on building on sustainable management practices with solutions on which it will collaborate with a wide range of organisations. Council innovation head Matt Montgomery said it has some big advantages in being able to try new technology on its farms that commercial farmers might find that too risky a proposition. “We started from July to September last year testing technology on some of the problems that we saw we had,” he said. One of them was the time taken checking water levels in tanks, which was reduced by the installation of sensor tanks at Duder Regional Park, southeast of Auckland, which could text an alert when they became low. Sensors giving data on soil moisture and temperature are now also in place and Montgomery believes more investment will be made in animal husbandry. Two other farms will soon be selected where more technology can be tried before being rolled out on the council’s remaining 37 farms if it is successful. The council owns more than 42,000 hectares in its 19 regional parks with 1500ha farmed along with other parcels of land the council has acquired. About 5500 ewes with a Coopworth base will be lambed this spring with 240 Hereford cows calved. The beef produced took out the gold award for the breed in last year’s Steak of Origin competition. As well there are 800 dairy beef cattle run with their breeding also moving to Hereford bloodlines. Seven dairy cows are milked at the council’s Ambury Farm in south Auckland where school children can get a close look at them as well as sheep, goats, horses and pigs. The Farms and Food for

the Future strategy involves stakeholders in the council and agencies such as the Ministry for Primary Industries, the Ministry for the Environment and academia. Auckland University, Auckland University of Technology and Lincoln University have all expressed an interest in getting involved though no deals have been signed, Montgomery said. And putting some of the technology developed into practice should attract more young, fresh blood to agricultural, excited by how it can help solve on-farm problems as well as make working life easier for farm staff. More than 30 companies including small technology start-ups and national and international firms have also signalled their interest. When it comes to the intellectual property that will be generated council is firm it doesn’t want to hold on to that but to see it distributed to local farmers for the good of New Zealand. “There could be something to show in a couple of months,” he said. Council farming business manager Dene Noonan believes the programme will allow his three staff and park rangers doing farming activities to focus on any weaknesses in their systems. “We want to be open and honest about our performance,” he said. “If you don’t measure it you can’t manage it. We want to be seen as leaders in the environmental space and if you’re going to regulate you’ve got to understand what you’re doing.” He’s been in the job for almost two years after attending Lincoln University to do a commerce and agriculture degree and farming in Canterbury before looking for a change. “The time’s gone quickly,” he said. “With the council there are always a lot of balls in the air.” So far four workshops have been held to get feedback from local farmers on topics such as environmental education, the

GUINEA PIG: Auckland City Council plans to test and demonstrate technological innovation on its farms then pass the knowledge to farmers, its innovation head Matt Montgomery says.

OUT IN FRONT: Auckland City Council wants to be seen as an environmental leader on its farms, its farming business manager Dene Noonan says.

supply chain and data collection. “There’s a lot of great farming going on in the region and we’re looking at joining the dots rather than reinventing the wheel,” Noonan said. “We’re not doing all the work ourselves because there’s a lot of expertise out there.” It’s helpful that many of the

technology companies are close at hand with offices in Auckland. At the workshops participants were asked to fill out cards detailing their interests and now it is a case of the council matching them up to see who might work well together. “We’re at the very early stages of mapping out the landscape and

seeing what we want to get out of it.” The strategy will be a great tool to bridge the urban-rural divide, helping show where food comes from amid food security concerns, he believes. “And we will be getting data on actuals, not just people’s perceptions.”

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News

26 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Busy roads become a major farm hazard This profile is part of a seven-part series from WorkSafe sharing the health and safety approaches taken by the grand finalists in the 2019 FMG Young Farmer of the Year competition. During the next seven weeks we will be sharing a profile and short video about each of the finalists and how they incorporate health and safety into their work from managing a dairy farm to veterinary practice. BROTHERS Matt and Joe McRae are in the process of formalising the health and safety processes for their family farm, Eilean Donan, in the Redan Valley in Southland and they’re finding they’ve already been doing a lot of what is required. “For instance, things like wearing helmets on the farm bikes, making sure vehicles and machinery are well maintained and not taking vehicles onto certain steep terrain have always been part of our approach,” Matt, the 2019 Otago/Southland FMG Young Farmer of the Year, says. “But now we’re getting those things formalised in farm rules, training and maintenance records and marked on our hazard map. “We are also about to take on a full-time member of staff. Employing someone makes things

a little more complex so having those processes in place will be very useful.” Eilean Donan has been in the McRae family for 111 years. Today it extends to 970ha of interconnected blocks of flat to rolling land with 6500 ewes, 2000 hoggets, 300 dairy grazer calves and 120 beef-cross steers. Matt and Joe found working from templates – such as those in WorkSafe’s Keep Safe, Keep Farming toolkit – was the best way to start their health and safety plan. “Once you have those tools, it’s pretty straightforward,” Matt says. “We’ve used FarmIQ for the hazard map and identified our risks, like steep slopes, bridges and offal pits. “One of our risks and probably the biggest change for us onfarm is that public roads that

run through the farm are getting much busier. We need to put out cones and signs to give drivers plenty of warning when we are shifting stock across the roads.” Matt says one of the key things is to never take anything for granted. “We’re drawing up the induction plan for our new staff member. Even though he is experienced in farming we will be familiarising him with the risks on our farm and making sure he is trained and competent with our vehicles and equipment and in the way we expect things to be done. “That works both ways, too, because he is currently employed on a block we have just leased. He knows that land much better than we do so we’ll be working with him to help us to develop that part of the hazard map.”

THEY’RE DOING IT: Matt McRae and his brother Joe in formalising health and safety procedures on Eilean Donan have found they are already doing a lot of what is required.

Matt and Joe take the same approach when contractors are coming on-farm. “A lot of them have been doing work here for a long time and are very familiar with the farm but I make sure they know if anything has changed or there are any new risks,” Matt says. “We don’t have mobile phone coverage here so Joe and I use two-way radios to keep in touch. A lot of our contractors have

them too. I touch base with the contractor beforehand and they know to get in touch when they arrive on-farm and we’ll go through what they’re doing and anything they need to know or I need to know about that work.” The FMG Young Farmer of the Year Grand Final is in Hawke’s Bay, July 4-6. >> Video link: bit.ly/YFCwork1

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FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Tell your story, don’t dump data Annette Scott annette.scott@globalhq.co.nz

PAYING ATTENTION: A farm environment plan might not attract premiums but will keep them in the market, high country farmers were told at their annual conference.

“Some of you may be regulated to have an FEP and that can be a useful tool if used properly but a tick-box system is not worth anything. Van Reenen urged high country farmers to develop a plan that’s important to their farming operation and generations to come. That starts with understanding what’s happening in streams and soils and relating back to what farmers are doing that is affecting streams, waterways and biodiversity. “You need to sort out the wood from the trees, not getting hung up on Overseer but knowing your waterways and what’s happening

in your catchment and how you can help. “A good understanding of your base resource, soils and climate will all drive how you run your farm businesses. “High country farm systems are pretty unique and only you, the farmer, knows it best and a good FEP must be driven by the farmer, not a consultant telling you what to do. “If not farmer-driven and built from in-depth understanding of your base resources, written down with realistic actions, it’s not worth the paper it’s written on.” It’s also important to identify both short and long-term actions.

“Your farming in the high country is not short term.” Done properly an FEP will give a degree of accountability when it comes to external perception. “It’s proof of your stewardship. “It may not give you premiums but it will keep our ticket to play in the market, maybe even result in market opportunities.” Changing public perception is about moving from being largely reactive to being proactive. “The public have a filtered view of the world through twitter and Facebook where most people get their views these days. “As farmers you need to understand the context of the urban population.

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FARM environment plans, while not yet mandatory, offer a unique opportunity for the high country, AgFirst environmental consultant Erica van Reenen says. Talking to the high country farmers’ conference in Blenheim van Reenen acknowledged they are challenged with climate and market vulnerability. They are also challenged to get up with the game and communicate in the same space as their urban counterparts. That means telling their farming stories where urban people tell their stories – in social media circles. Water quality is going to get harder and biodiversity is still to come with a national standard in the pipeline, possibly even this year. “But we do have good views and a farm environment plan (FEP) is a unique opportunity in the high country to develop the biodiversity we do have.” It’s also the opportunity to formulate accountability and the opportunity to tell a good story. But farmers need to get up with game when it comes to storytelling, van Reenen said.

“The New Zealand public drive our regulation and sources of engagement. “Consumers are driven by what they want and farmers need to understand their perspective – walk a day in their shoes.” In farming the usual response is to present a whole lot of facts. “Their (consumers’) context is important when driving your approach, a whole bunch of numbers doesn’t do it. “Farmers need to get up with the game. You need to engage in the same space and maybe it is that some of you need to engage in social media – tell your stories where they tell their stories. “It’s unreal what you can do engaging with those who it directly matters to. “We have to engage and we have to be not scared of it,” van Reenen said. Molesworth Station manager Jim Ward said FEP is a journey all farmers will have to go through at some point. “Down the track it will be more and more meaningful for our farming businesses. “People don’t care about facts or a whole bunch of figures, they care about what they believe,” Ward said.

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28 FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Stink bug no joke to Italians The brown marmorated stink bug has a ¤150 million a year sting in its tail for Italian orchardists. It is one a visiting Italian biosecurity expert Professor Claudio Ioriatti believes New Zealand can learn from with the luxury of time to avoid the insect’s worst effects. He spoke to Richard Rennie during a visit here.

ALUABLE ideas on dealing with insect foes are coming from a 25year collaboration between Plant and Food Research and Professor Claudio Ioriatti’s Fondazione Edmund Mach Institute in Italy. And the brown marmorated stink bug sits firmly on top of their most-wanted list. Ioriatti witnessed the bug’s invasion of northern Italy in 2012 and its rapid spread through the highly productive growing area since. Northern Italy is renowned for it variety of crops but the country’s near-open border to greater Europe means the bug made a comfortable, devastating acquaintance with Italian produce.

We are selling our landscape to five million visitors a year here. Tourism is 15% of our region’s income so using the netting is something we really would like to avoid. Professor Claudio Ioriatti Fondazion Edmund Mach No fruit crop is safe from the bug’s ability to inject an enzyme into the fruit’s interior leaving scarring, discolouration and damage rendering it unsalable. Putting a particularly NZ spin

on its insidious damage Ioriatti said kiwifruit damage is even greater than other produce because of what he labels cryptic damage. The often extensive damage to the underlying flesh is difficult to detect with the naked eye. “That ¤150m of annual loss is in my region alone in Italy, the Trentino province. “Perhaps the only positive about the stink bug is it overwinters in houses, infesting them and being very much a nuisance pest. “So, this massive migration means it also focuses attention on it from the urban sector as much as the rural sector.” Ministry for Primary Industry estimates for NZ are the bug could cost this country $4.2 billion in lost export earnings by 2038 about the value of sheep meat sector exports. Ioriatti and his colleagues have leveraged off the broader ruralurban impact of the bug, using citizen science to help monitor its spread. A smartphone app lets people anywhere photograph a bug, log its location and report it, helping monitor its spread in near real time. But when it comes to actually eliminating the bug things are proving tough and offer a salutatory warning for Kiwi growers not to underestimate its impact. Pheromone traps are being used in orchards but catch only 3% of a population. That has prompted researchers to add vibration signals to imitate male mating messages, drawing in bugs to kill them with electric shocks.

BUGGED OUT: Professor Claudio Ioriatti admires New Zealand’s biosecurity efforts.

Chemical control is difficult with only two pesticides suitable and food retailers put strict limitations on when they can be used, with only two spray treatments a year permitted. “But once the fruit is ripening and the bugs migrate in the crops really need to be sprayed eight times so our chemical tool box is quite limited,” Ioriatti said. Orchards are being border sprayed to slow bug migration into them with whole crop applications held off for as long as possible. Meantime, almost all orchards now sport draped netting that might double as hail protection for some crops and it is proving 80-90% effective in keeping the bug out.

But even as they scramble to protect their crops orchardists take flak for the nets’ impact on landscape aesthetics in the muchvisited region. “We are selling our landscape to 5m visitors a year here. Tourism is 15% of our region’s income so using the netting is something we really would like to avoid.” A number of biocontrol organisms are being tried. “The problem for Italy, however, is we have a law that means we cannot introduce a foreign species to our country to do this.” He admires and envies NZ’s pro-active efforts to approve the Samurai wasp, a parasitic enemy of the stink bug. “It means when, rather than if,

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the bug arrives you are in a very good position to deal to it. “We are required to find a native enemy in Italy and have one but, unfortunately, the parasitism rate is only 17%. It’s too low.” He takes some comfort that parasites don’t respect borders and an incursion from neighbouring Switzerland by a more effective parasite would be welcomed by growers. “It seems that it would be better to manage the parasite’s release than have to rely on more harmful insecticides.” European Union regulations also prevent Italian authorities considering gene editing the bug to bring its numbers down. However, Ioriatti is confident that ongoing work with NZ input is helping nail down a more effective native parasite with early trial numbers looking positive. The use of irradiated and sterilised males inserted into bug populations is another area being explored. As someone who 25 years ago considered moving to NZ to grow grapes, Ioriatti has maintained a deep love for this country and respects the work done here to leverage off the island status in the biosecurity battle. “In NZ, you are on another planet when it comes to biosecurity. “Of course, being an island helps but there is also a very high level of awareness here among industry, scientists and policy makers. “Sooner or later the stink bug will arrive but you can use the time you have to develop a sustainable approach to dealing with it that we did not have.”

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June , 2019

New tech boosts pack house output While much has been made of the prospects for robots harvesting kiwifruit and other orchards, one packing company has invested heavily this season in robotic technology in the pack house. Apata Group chief executive Stuart Weston outlined to Richard Rennie some of the smarts behind the country’s most robotised pack house, and what it heralds for the industry. by French fruit-processing company Maf Roda. Weston likens the two machines to a Holden Commodore HSV running alongside a Subaru Impreza. The Holden copes well with clear runs of good-quality fruit while the Subaru has more smarts to handle the anomalies in fruit size and quality. “But running at top speed they can do 7000 trays an hour, each.”

This pack house is something of a beta test ground for our new technology. Stuart Weston Apata Group The technology helping those machines go so fast includes cutting-edge digital camera technology. With six cameras on each fruitsorting lane the rotated fruit is photographed 30 times, across a dozen colour spectra. Different light spectra detect different quality parameters including drymatter, brix level and fruit colour using near infra-red technology, a colour spectrum close to infra-red but still invisible to the naked eye. “Algorithms can then calculate based on the behaviour of those light spectra hitting the fruit, what grade that fruit is.” The smart tech has allowed Apata to tune up as closely

as possible on its objective to deliver the maximum number of class one fruit returns to its growers to within a 5% tolerance rate. Once scanned, 60 fruit a second are weighed 30 times to an accuracy of a tenth of a gram then split off by size. While the machines will sort to a point, the human element comes in to pull the marginal fruit through manual sorting, with the fruit clearly high-grade passing through automatically. But it has been in the past four weeks the plant has taken on a whole new level of automation beyond initial sorting. It now has the time consuming jobs of box lining, filling and sealing also robotised. Apata’s operations general manager Hans Van Leeuwen said one of the most time consuming tasks in packing is the single layer or tray packs. They are used to hold 24-34 kiwifruit, depending on size. The robotic packer is a NZ first for the industry and packs 22 trays a minute compared to three for the company’s best human packers. Robotic box fillers have also been installed and work on filling and levelling 10kg bulk boxes, sealing and labelling with traceability ID, enabling retailers to trace back to the exact block in a specific orchard the fruit came from. “The retailer can also find out what fertiliser and sprays were applied, when it was picked, what truck shipped it and what ship it was loaded onto. It is 100% traceable,” Weston said. Van Leeuwen said the

THE TEAM: Apata Group operations general manager Hans Van Leeuwen, left, chief executive Stu Weston, centre, and site operations manager Nav Singh.

ROBOTIC: Apata Group operations general manager Hans Van Leeuwen, left, and site operations manager Nav Singh.

technology had to deliver higher grading and packing speeds but in the limited space a pack house can offer. “And even after only a couple of weeks these machines are exceeding our expectations. “The advances include what may appear to be quite small improvements, like new labelling technology that consistently places bar code ID exact, every time, something staff always struggle with.” Weston said the pack house realistically gets 18 hours a day worth of shifts. “Ultimately, I would far rather see us with this facility running 24/7 rather than entertain the idea of building a completely new pack house. This pack house is something of a beta test ground for our new technology.” He estimates once robotics enables a pack house to operate 24 hours there are productivity gains of 50% possible from the same footprint. He also dispelled any likelihood there will be fewer jobs in coming years. “It will simply be a case of redeploying our limited manpower from the pack house to the orchards for picking. “The greatest issue for the sector is having enough people and robotic automation in pack houses is a smart choice to make from three main areas of capital expenditure we have, the other two being worker accommodation and coolstores.”

agrievents Thursday 13/06/2019 NZ Grain & Seed Trade Assn (NZGSTA) Grains & Pulses Forum Time: 9.30am and finishing approx. 2.00pm Venue: Fitzgerald Room, Plant & Food Research Centre, Lincoln. Registrations: Online at www.nzgsta.co.nz/grains-pulsesforum/ AWDT Understanding Your Farming Business & Wahine Maia, Wahine Whenua 3 full-day workshops and an evening graduation ceremony run over four months. Equips and supports women involved in sheep and beef farming to lift business performance. Registrations for 2019 programmes are now open, visit the website for more information and to register. Locations and dates (3 modules & graduation): Christchurch (WMWW): 5 Jun, 3 Jul, 31 Jul & 28 Aug Takaka: 21 Aug, 18 Sep, 16 Oct & 13 Nov Pukehou: 4 Sep, 2 Oct, 30 Oct & 27 Nov Masterton: 5 Sep, 3 Oct, 31 Oct & 28 Nov Clinton: 11 Sep, 9 Oct, 6 Nov & 4 Dec Lawrence: 12 Sep, 10 Oct, 7 Nov & 5 Dec Website: To register visit www.awdt.org.nz/programmes. Contact: keri@awdt.org.nz or 06 375 8180 for more information. Red Meat Profit Partnership (RMPP) – facilitation training workshops For rural professionals looking to facilitate an RMPP Action Network Action Group. Lead Facilitator 2019 workshop dates: Gore 11-12 June Havelock North 24-25 June Christchurch 9-10 July Rotorua 3-4 July Alexandra 13-14 August Palmerston North 4-5 September Action Network Fundamentals and Extension Design 2019 workshop dates: Gore 10-11 July Havelock North 24-25 July Christchurch 20-21 August For more information or to register go to www.rmpp.co.nz or email training@rmpp.co.nz

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HIS year’s kiwifruit harvest is enduring another season with dire predictions of labour shortages coming at least partly true. Most processing companies report an ongoing need for more staff, both pickers and in pack houses. It is an issue unlikely to go away as the sector’s planted area continues to grow. An extra 750 canopy hectares a year of SunGold is accompanying the transition from Green to Gold fruit, which is also more prolific. “There are two schools of thought around automation in terms of using it in orchards for harvesting or in pack houses,” Apata Group chief executive Stuart Weston says. “Estimates are we will need about another 6000 people in the coming years and they simply are not there to get and even if we could we have the challenge of where they would stay.” Pack houses need 2.5 people for each picker in the field. The Apata pack house employs 500 people over two shifts at the season peak. “So, for us it’s a case of focusing on what we can do on the floor and re-allocating that finite resource of people to picking,” Weston said. Apata’s Mends Lane pack house east of Te Puke has had a multi-million-dollar refit in the past three years as the company invests in tech, making it something of a test bed for commissioning robotic technology. At the centre of technology are two high-speed grading and sorting machines made

Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

EDITORIAL

Budget’s rural help welcome

UDGET 2019 was named the Wellbeing Budget and it was reassuring to see the health of rural communities addressed. Farmers have known for some time they will shoulder much of the burden of reaching emissions targets and improving the environment. Now, having lived through the 1980s, many farmers might rather be left alone to run things as they see fit but the world has changed and most are now keenly aware of the glare they come under. Support from central Government to reach these goals has been slow in coming but the $370 million in last week’s Budget is a good start. Industry bodies have touted science as the answer to emissions reductions but the science hasn’t got us there yet. A new injection of cash for research and development gives hope that at least the work will be done to find a solution. The biggest splash is the $229m for sustainable land use projects that clean up waterways and wetlands. Farmers have long argued any mitigations should be assigned on a catchment by catchment basis and this fund gives them the chance to work together for the good of their communities. Forestry also gets significant funding, almost $50m. In recent weeks livestock farmers have been loud and clear in their opposition to the spectre of trees smothering good high-country land. Hopefully, some of that forestry fund will go to help those same farmers diversify their operations where it suits and bring in more income streams rather than just accelerating the spread of trees throughout our pastoral sector. Previous Governments have taken a hands-off approach to the issues farmers face, preferring to let the market sort things out. This is a back to the future moment for farming but one that is perhaps necessary. With the world judging our sustainability in real time, it’s time to show a New Zealand Inc approach. The wellbeing of the country depends on it.

Bryan Gibson

LETTERS

Debunking evil forestry’s myths THERE has been a rising tide of rhetoric recently on the sale of farmland for forestry. There are many myths and untruths promulgated about the evils of forestry. Pines don’t ruin soils. Soils in planted forests are in better shape than those supporting other primary production. Forests are also not sterile. Studies have shown biodiversity levels in planted forests to be lower than indigenous forest but higher than in pastoral and agricultural land. Commentators ignore that this country was at least 80% forest-covered since the last ice age and until humans arrived. So, pasture land is not sacred or endemic to New Zealand. Many reports on climate change point to the need for more afforestation for

us as a country to meet the greenhouse gas commitments the previous government signed us up to. We also need to find alternatives to fossil fuels and move from an extractive and throwaway economy to a circular bio-economy. Biofuels and bioplastics can be sourced from trees as well as the traditional timber products so increasing the forest resource makes sense on many fronts. How much disruption this causes will largely be governed by the speed of transition and how well it is managed. Afforestation can take many forms. It does not have to be corporate-owned, blanket planting of pines. Landowners and farmers have choices. It does not have to be farming or forestry. It can be both. The farm forestry model is

for farmers to plant the lessproductive parts of their land in a range of species. Many have followed this pattern and are now reaping the benefits as they harvest. There are still many areas of weed-infested and lowproducing farmland that could be planted in forest to enhance the profitability and sustainability of that land. As has been pointed out, export income from forestry in recent years has been twice that of sheep and beef land. That ratio is likely to increase in future. Farmers can also group together in syndicates to buy land for planting which allows the assets to remain locally owned and managed. As with their pastoral products, farmers should target their forestry resources towards the high end of the

markets with well-tended and managed woodlots. Some of the anti-forestry people claim they are making a stand for their children. But the younger generations have also expressed a need for action on climate change. Afforestation is a threat or an opportunity. The choice is ours. Neil Cullen Past president Farm Forestry Association Balclutha

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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 027 298 6127 colin.williscroft@globalhq.co.nz 06 323 1561 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 – June 3, 2019

Targets few so farmers cop it Mike Montgomerie

HE recently announced Zero Carbon Bill, which sets greenhouse gas reduction targets for farmers, has made the climate change issue real for New Zealand farmers. Farmers were meant to start paying for their greenhouse gas emissions way back in 2011 when we were originally scheduled to enter the Emissions Trading Scheme (ETS). Several extensions to the date for our entry to the ETS have kept us off the hook until now. We need to be realistic about the latest development. It was always likely we would be the first farmers in the world to be held to account for our emissions. NZ’s unique emissions profile, where almost half of our emissions come from agriculture, means our government, of whatever colour, was always under unique pressure to act on agricultural emissions. Most other developed nations that are signatories to the international climate-change treaties enjoy many more options for reducing emissions than we do. They have opportunities in sectors other than agriculture, which represent lower-hanging fruit and therefore they can afford to delay turning their attention to farmers. We can justifiably complain it is unfair NZ farmers are being forced to lead the way. In a sense we are being punished because NZ’s predominantly renewable electricity sector and relative lack of heavy industry leave the country with few easy options. However, fair or not, the decision had a degree of inevitability to it. NZ cannot continue to enjoy an excellent international reputation

The

Pulpit

if we fail to act on our emissions. It has also been a nagging worry that the longer we delayed addressing the issue the more aggressive any eventual targets would need to be, resulting in correspondingly greater disruptions to our businesses. Our focus should now turn to the future.

The Zero Carbon Bill is the start of a journey for us in the livestock farming sector. It sets the scene but leaves lots of questions unanswered. There are two important issues. First, figuring out how to leverage our status as the first livestock farmers in the world to take responsibility for their emissions. Second, ensuring the systems involved in achieving the required emissions reduction targets are optimal and efficient. In respect of these issues the Bill

raises several questions. The reduction targets for livestock methane emissions are gross targets. To meet them the nation’s farmers will need to reduce those emissions at their source. That will require scientific advances that reduce the amount of methane belched by our livestock or a reduction in the numbers of livestock we farm. The targets for other sectors of the economy are net targets. Those sectors will have the ability to use offsets to achieve their targets. For example, the fossil fuel sector can grow trees to cancel out the carbon it emits. It seems odd farmers can’t offset their biological emissions by using biological sinks. The need to achieve gross, rather than net targets might make it more difficult for farmers to extract extra value from markets as reward for our products being climate friendly. In 2030 it might be possible to extract a premium for milk generating 10% lower net emissions than milk produced in 2017. There will be no premium to be found if we have met the gross target by simply producing 10% less milk. The system for achieving the reduction targets must be economically efficient. If a reduction in the number of farmed livestock is required then it is economically efficient for it to occur in the classes of livestock that produce the least value per unit of methane. If expensive methanesuppressing vaccinations are to be used, it is economically efficient to do so in classes of livestock where we achieve most bang for our buck. Therefore, farmers will need some flexibility to organise the emissions reductions among themselves. This is essentially what the ETS was designed to achieve but there are many details that need to be sorted for

TOUGH: It is unfair New Zealand farmers are being asked to lead the way in cutting emissions but they have to get on with it anyway, dairy farmer Mike Montgomerie says.

it to work correctly for livestock farmers. It is not clear yet how the ETS will be used in achieving the new emission reduction targets. The Zero Carbon Bill is the start of a journey for us in the livestock farming sector. It sets the scene but leaves lots of questions unanswered. There are many details that will need to be worked through over the coming years if we are to achieve an enduring, long-term response to the problem. It is clear the very long-term survival of our livestock farming industry will depend on us making it climate-neutral. Both the Government and consumers will keep the pressure on us. Fonterra’s recent commitment to put sustainability at the heart of the co-operative is a response to consumer sentiment. We will need to stay at the

front of the international pack but not get so far ahead that we go broke. We need the Government to support research and development on emissions reduction technology. We need it to help us leverage more value out of our markets. We need it to help care for any farmers who can’t keep up with the changes ahead.

Who am I? Mike Montgomerie is a fifthgeneration dairy farmer and Fonterra Shareholders’ Councillor based in Cambridge. He is also a qualified lawyer and recently completed his LLM at Waikato University.

Your View Got a view on some aspect of farming you would like to get across? The Pulpit offers readers the chance to have their say. farmers.weekly@globalhq.co.nz Phone 06 323 1519

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Opinion

32 FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Our gas effort is just hot air Alternative View

Alan Emerson

TWO weeks ago I wrote of my initial thoughts on the zero carbon legislation. I have since read the entire Bill and, for the record, the Paris Accord. Neither is relaxing night time reading. Starting with the legislation. As I’ve written, I do support the introduction of an independent Climate Change Commission and I’m heartened the intention is to get all political parties to agree on its membership. You’ll all be aware of the reduction targets, methane 10% by 2030 and 24-47% by 2050. All other greenhouse gases will need to be zero by then. Federated Farmers climate change spokesman Andrew Hoggard said the methane target is unjustified and I agree. A 10% reduction in methane emissions by 2050 will have no extra impact on global warming so why we’re wearing a hair shirt on methane is beyond me.

As Feds have said, the targets for methane emissions will send a message to New Zealand farmers that NZ is prepared to give up on pastoral farming. Again, I agree. The Government target completely ignores sound scientific evidence. It is also contrary to the Paris Accord. In the preamble you can read the agreement recognises the fundamental priority of safeguarding food security and ending hunger and the particular vulnerabilities of food production systems to the adverse effects of climate change. Article 2 (b) of the agreement says countries should have the ability to adapt to the adverse impacts of climate change and foster climate resilience and low emissions developed in a manner that doesn’t threaten food production. My take on that is simple. The Paris Accord is adamant there should be no threat to food production and the Government’s methane target is just that – a real threat. It is also strong on building resilience to climate change and, to this country person, the way to build that resilience is simple, build more water storage, support irrigation and encourage genetic engineering. I look forward to a change in the

Greens policies to reflect that. Getting back to the legislation, we have emissions targets being set and notified. That’s all very well but those targets aren’t enforceable in a court of law so, in my humble opinion, it all means little. The Zero Carbon Bill passed its first reading by 119 votes to one, proving, yet again, farmers have no friends in Parliament. In his introductory speech to the legislation Climate Change Minister James Shaw said climate change is the greatest challenge of our time. On that point I agree with him. Where we’d differ is the handling of that challenge. He says as far as we’re aware we’re one of the first countries in the world to embed that requirement (keeping global warming to less than 1.5C) in our climate change legislation. Why are we leading the international charge on climate change legislation? Why are we leg-roping our productive rural sector to be an international first? According to Statistics NZ we produce 0.1% of global greenhouse gases. The United States produces 14% and is ignoring the Paris Accord. Russia produces 5% and has signed the accord but has not ratified it. The accord proudly tells us

YES AND NO: Climate Change Minister James Shaw is right that climate change is our greatest challenge but he’s not handling it right.

the parties to the agreement are responsible for 55% of greenhouse gases. Take Russia and China out and it covers but a third. I’m not suggesting NZ shouldn’t be a good world citizen. What I am saying is that we’re going right over the top by leading the world in climate change legislation and we’re putting food supply at risk when our contribution to global warming is absolutely insignificant. What frustrates me is that we’re playing with the problem. For a start, our population has grown by 44% since 1990. That will ensure a similar growth in cars, heavy transport, building and roading. Our population growth, mainly through immigration, continues at pace. If we’re serious about our contribution to global warming stem the flow. As I’ve written, we welcome tourists arriving by air and sea with the massive pollution that encourages.

We’re spending a fortune on cycleways, $333 million to June last year. Recently we’ve had the announcement of $94m for a Wellington-Hutt Valley cycleway and $6.5m for Otago. I’d love to see a cost-benefit analysis compared with the same amount going into methane mitigation research. So, my view of the legislation is that it’s woolly and not in line with the Paris Accord, certainly as far as food production and agricultural resilience are concerned. And the international recognition and accolades our politicians will be hoping for, leading the world on climate change legislation and all that will be a little like having a pee in a wetsuit, you feel nice and warm for a while but nobody notices.

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

Aging farmer’s brain catching up with his body From the Ridge

Steve Wyn-Harris

I WRITE this on the eve of my 60th birthday. I haven’t made a big deal of any other significant birthdays, other than a boozy 21st when down at Lincoln. But this time I’ve even gone to the lengths of inviting 75 family and friends to a dinner at the Chateau with a few activities over the following two days, partly to thank a lot of them for their own hospitality, support and love over the years but also because of the uncertainty of making any other significant age events. This fatalistic view is because of the funerals I’ve sadly started going to of close friends in recent years. Glen Clark, my good mate and brother-in-law, hosted us to his own 60th a couple of years ago and four weeks later dropped dead of a brain aneurysm. Alan Barr, my first farm adviser

and long-time friend, died five years ago after a tough battle with leukemia and didn’t even make it to 60. My own mother, Trish, did just get into her 60s but succumbed to lung cancer. Never smoked a cigarette in her life. And there have been others of course. I guess it’s the bell-shaped curve and we are all going to be on that curve somewhere. Staying with us tonight on the way to the party is Jane’s sister’s son Nick Paulin with Roz and their 10-month-old daughter Claudia. I call her Wilma because Nick’s brother’s infant son is named Fred. I can easily remember Jane and I babysitting Nick 35 years ago and me delighting in spooning yoghurt into him in his highchair. Tonight, I was watching him do the same to his own daughter. Fairport Convention sang that wonderful song Who knows where the time goes? It was beautifully sung by Sandy Denny who, sadly, died after a fall down some stairs at just 31. It’s a good question. I still feel like a 25-year-old in my head and still do the odd stupid thing befitting a much

NOTHING FANCY: Steve Wyn-Harris is putting on a splurge for his family and friends for this birthday to thank them for their support.

younger man, much to the annoyance of my family. Last year a fellow golfer hit a ball into a tree we call the Gobbler at Waipukurau Golf Club. I could see it and pulled myself up and climbed several metres to retrieve it as well as a bounty of other balls. After I swung down and dropped to the ground I remembered I was now 59 and it was ridiculous still doing things I did as a 20-year-old. Mind you, I’ve just finished dagging 1450 ewes in front of the shearers. Because it hurt last year I decided to finally pay the gang or someone to do it and no sooner had I formulated that new policy than the rate was doubled to more than $1 a head so I decided I could

do it for another year or two. But the body does protest now after a big physical day. I am learning to pace myself a bit more. However, there are benefits of aging. I’m enjoying life as much as ever. I’m as comfortable in my own skin as I’ve ever been. I’ve mellowed. And yes, I’ve gained some wisdom but still have a way to go. At the golf club I’ve found myself watching the older guys. It’s like looking into my own future if I’m lucky enough to get to their age. They still delight in playing golf, having a haggle, some banter and a beer in the clubhouse. Dennis, who is 85, recently

bought himself a new set of clubs. When he saw the account it must have given him a turn because he ended up in the cardio ward in Wellington for a bit. But he was back practising, playing a few holes and then 18 again. I’m the club captain and one Saturday he had a rough round and earned the free golf lesson, which I assumed he would let me give to the next worst round. But no, he grabbed it with both hands. A few weeks later his wife rang me to say he’d had another turn and could I get the pro at the Hawke’s Bay Golf Centre to extend the expiry date. Another golfer is Ira who last year, on his 90th birthday, played and walked 18 holes and scored in the 90s. So, if I’m lucky and look after myself, I could go on for a while yet. In the meantime, the trick is to keep enjoying the company of others and embrace and make the most of that precious thing we call life.

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 – June 3, 2019

Teach city kids about farming Town Talk

Amy Williams

ONE recent week day I helped out at my children’s school Garden to Table programme and noticed an elephant in the room. Their central Auckland school looks like a gated fortress from the street but within its confines lies a secret garden. The field has a sprawling orchard with citrus, avocado, apples, pears and more. The vegetable patches next to the playground have every kind of seasonal essential you could name. When it’s my children’s turn for Garden to Table, I scrub up to work in the kitchen. The class is split in two and those tending the garden bring produce to the kitchen. The children do the work cutting, cooking and washing up before setting the tables for a shared meal. We made fire alarm dumplings (the fire brigade was summoned when the recipe was first cooked) and I found myself asking aloud “Where’s the meat?” before realising mushrooms were the stand-in. Meat doesn’t feature on the menu at Garden to Table. Set up 11 years ago, Garden to Table is a food education charity that gives schoolchildren around the country hands-on skills so they can grow, harvest, prepare and share fresh

food. It has the backing of celebrity chef Nadia Lim, who is dancing for the charity in Dancing with the Stars NZ. Not all homes have a vegetable garden and mucking in at school gives children an understanding of where their plant-based food comes from. The recipes are vegetarian and often modified for children with allergies to be dairy and egg free too. My three children have got their heads around the fact milk comes from cows but they’re repeatedly surprised when I remind them lamb is lamb and chicken is chicken. It doesn’t help that my youngest’s most beloved toy is called Sheepie.

The farming industry can do more to close the urban and rural divide from an early age.

Teaching children where their meat comes from at an early age is just as important as tilling soil. I’d like to see the farming industry do something similar to Garden to Table in schools, particularly urban schools where children aren’t exposed to the workings of a farm. The farming industry can do more to close the urban and rural divide from an early age. There are some efforts to provide education for schools but more is needed if children are to believe meat doesn’t just come from the

Under the pump?

supermarket or butcher. Some work is being done in this area. Dairy NZ has a programme for schools, providing a curriculum and farm visits with the aim of teaching children about where milk comes from, how it is processed and transported and also what a varied and interesting sector dairying is. Beef + Lamb has some resources available to teachers. A more collaborative approach is needed in the farming industry and I like the idea of a programme similar to Garden to Table, so how about Pasture to Table? Though Garden to Table recipes are vegetarian spokeswoman Natalie Edwards told me it doesn’t ban schools from sprinkling bacon on a risotto nor does it promote any one diet. She said fruit and vegetables are a good place to start for teaching children where their food comes from. To her knowledge Garden to Table hasn’t had any approaches from farming industry organisations wanting to collaborate in schools. If my children were offered farm visits or if farmers came to visit their school I’d be on board. I remember visiting an abattoir as a kid but I think hearing from a local butcher would be a better learning experience. In the meantime, I’m fully supporting the Garden to Table programme and have cast my vote for #TeamNadia. Through her dancing Garden to Table hopes to raise enough money to support more schools in lower socioeconomic areas to join the programme.

DOWN TO EARTH: Nadia Lim and Aaron Gilmore visited Owairaka School, Auckland, for Garden to Table and Dancing with the Stars.

EXPERTS: Nadia Lim and Aaron Gilmore gave advice to students at Owairaka School in Auckland.

When I’m really busy, I ask myself what are the top two tasks I need to work on today? Sam Whitelock Farmstrong Ambassador

For tips and ideas,

visit farmstrong.co.nz

On Farm Story

34 FARMERS WEEKLY – farmersweekly.co.nz – May 27, 2019

Success in its rawest form Northland sharemilkers Guy and Jaye Bakewell’s numbereight wire ingenuity is not only helping pay off their dairy cows faster but capitalising on consumers’ growing demand for raw milk. Luke Chivers reports.

PEN any dairy farmer’s fridge and you will likely find it stocked with raw, untreated milk. Now more and more urban consumers are catching on. Four days a week in Auckland’s inner-city suburbs many people look twice as a sign-written truck delivers raw milk in glass bottles to residents. “It’s just like it used to be done back in the day,” 31-year-old Guy Bakewell says. “You know, when you could buy raw milk and it’d be delivered in a glass bottle. “ And you’d leave your empties out and they’d be swapped out by the milkman. That’s exactly what we’re doing.” For Guy and his wife Jaye their raw milk delivery business is as much about earning extra income as it is about helping educate consumers.

It’s a fantastic way for us to connect with people who probably don’t give a lot of thought to where milk comes from. Guy Bakewell Farmer On an average day their cows are milked in the morning, the milk is bottled by hand and delivered by truck to consumers in just hours. “Our truck gets a lot of attention,” Jaye says. “It’s amazing the amount of people who look at it and, clearly, are thinking ‘what is that?’ “I get a lot people come up to me wanting to know how they can buy our milk.” It’s a venture the couple least expected they would pursue. Originally from Palmerston North, Guy hadn’t milked a cow until he was 16. “I had a weekend job pumping gas at a petrol station but I wanted to make a bit more coin,” he says. “I heard there was good money in relief milking so I initially offered my services free-of-charge to a local farmer. After a few months in the role I was on the timesheets.” It didn’t take long for the dairying bug to take hold. “I absolutely loved it,” he says. “Everything from driving the tractor to riding the motorbike – it was all fun for me. They were things I’d never done before.” His interest soon turned into passion and he left high school to pursue a career in agriculture. His parents were big believers in education and encouraged Guy to enrol in a level 1 Primary

ITO course through Taratahi Agricultural Training Centre. That was in 2004. And it was during that year at Taratahi that Guy met Jaye, a fellow classmate. “It was one of the best years of my life,” Jaye says. “Yes, well, that may have something to do with bumping into Guy.” Jaye is no stranger to the industry. She grew up on a smallscale dairy farm, 10km northwest of Hastings, running 150 cows. “I’ve milked ever since I was a kid,” she says. “Farming was the natural career choice, really.” Guy interjects “My dad always said I should marry a farmer’s daughter but, you know, he should’ve specified a bigger farm, I think.” Not long after graduating, the couple worked on Jaye’s family farm for a year. “But we realised we still had a lot more to learn,” they say. So, in 2006, they studied for a diploma in business at Massey University in Palmerston North. Their careers have since been varied. They have worked as herd managers, banking consultants and in mines and have served in roles in most regions from Canterbury to Northland as well as spending a year in Western Australia. “The more we worked away from the land the more we realised that farming was the life we wanted to be living,” Guy says. “A lot of people see changing jobs regularly as a bad thing but we viewed it as a constant internship, much like an education. “We’ve been lucky enough to work with some of the best operators in this country.” In 2011 the Bakewells were herd managers for Richard and Jo Greaves on an 800-cow farm in Hawke’s Bay. “They came second in the national Sharemilker of the Year competition while we were on their farm so we learnt all about the Dairy Industry Awards and what it involves,” he says. Three years later they worked alongside Hayden and Jessie Chan-Dorman who run a highinput system at Dorie on the south side of the Rakaia River in Canterbury. “We were reaching up to 600kg milksolids per cow so we learnt all about feeding in a high input system,” he says.

FAMILY AFFAIR: Northland farmers Guy and Jaye Bakewell and daughter Darnell-Jaye are 50:50 sharemilkers at Wellsford. Photos: Frances Oliver

In 2017 they put their knowledge to the test and entered a sharemilking agreement for a well-nurtured and developed slice of rural New Zealand. The couple are 50:50 sharemilking 150 cows with Duncan Johnson, an Auckland accountant who has owned the 80-hectare (65ha effective) farm near Wellsford in Northland for more than 30 years. “We’ve been lucky to be left to our own devices,” Guy says. “And that has suited us well.” They say the farm was in good shape when they arrived.

“Sure, we installed a Ravensdown fertiliser silo so we could spread our fertiliser more efficiently and did a few other jobs here and there,” Guy says. “But on the whole the property had been well cleaned up by the previous sharemilker. We found the place in a really good way – good fences and good water.” And their intention is to keep it that way and further those efforts in years to come, specifically in terms of riparian planting and fencing off drains. Their farm is small by industry standards. The region’s average

GOOD TUCKER: The herd is fed maize silage.

herd size is 300 cows. The situation meant the Bakewells had to investigate ways to generate extra income. “Initially this started with us shifting to once-a-day milking. “We did that because we couldn’t afford staff for 150 cows if we were to milk twice-a-day. And we agreed that if we were going to be farming every day then we wanted to be able to enjoy it. “Plus, it’s better for the animals and their wellbeing.” The farm is a third flat with the remaining rolling-to-steep. It is typically summer dry. Its hills overlook State Highway 1, where an estimated 15,000 vehicles zap past every day. The two Kaipara Young Farmers members saw the steady stream of cars as an opportunity waiting to be tapped. “We did the numbers and realised we didn’t need many people to stop in order to sell a lot of milk.” In August last year, after months of planning and hard work, a vending machine dispensing raw milk opened on the farm. “We sold 30 litres of milk on the first day and we’ve sold milk every day since – even on Christmas Day,” Guy says. They now sell an average of 200

On Farm Story

litres a day – having doubled their production since January without any major advertising. And the operation continues to grow with new orders placed every day. The shiny, stainless-steel machine is one of only 15 in NZ providing consumers with unpasteurised milk. “It baffles me that there are more than 10,000 dairy farms in this country yet there are only 26 registered raw milk suppliers,” Guy says. Because herd-owning sharemilkers get only half the monthly milk cheque the raw milk business idea was driven by economics. “I’m a big believer in getting creative and thinking outside the box to make business opportunities work,” Guy says. The Jersey, Friesian and crossbred herd is split in two mobs. About 120 cows are milked once-a-day and their milk is sent to Fonterra. The remaining 30 cows are run in a separate mob and their milk is used to supply the vending machine, which customers can use 24/7. “As demand grows for the raw milk supply we have the ability to grow with it,” Jaye says. In their first two seasons at Wellsford they have maintained the farm’s milk production at 50,000kg MS. They run a System 2-3 and feed grass silage and maize silage in autumn, early winter and early spring. About 4ha of maize and 4ha of turnips are grown on the run-off where they winter the herd. They winter milk to ensure continuous supply of raw milk. Fifty cows calve in autumn beginning on March 1. The spring calving herd calves from July 10 and they keep every calf. They are sent to the runoff once weaned. Mating begins on June 10 for the autumn herd and on October 1 for the spring herd. They do six weeks of AI and tail off with Hereford or Angus bulls so they have no bobby calves. The heifers are mated to Wagyu and Guy does all of the AI himself. “In the 2017-18 season I was either the first or last on the technician’s run,” Guy says. “That meant I had to get up at 4am every morning so that I was finished by 7am. He and I decided that was a bit ridiculous and I didn’t want to do that again so trained to AI myself.” Jaye says next season their focus will be on selling more litres of milk than MS per cow. “We’ll continue to supply to Fonterra but only up until we have a home for all of our milk,” she says. “If we can diversify our milk into other value-add products, such as butter or cheese or ice cream, then we’ll look at doing that. “But that will come in time.” She also says if they had supplied milk only to Fonterra this season the couple would have had a really bad year off the back of a low dairy payout and poor weather. “The benefits of diversification are huge for us,” Jaye says. The raw milk business – known as Bakewell Creamery – is operated by Guy, Jaye and his parents, Monty and Wendy, who

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

TAKE AWAY: Bakewell Creamery now delivers chilled milk from Whangarei to South Auckland and everywhere in between four days a week.

have also invested in the venture. “We pay the farm’s owner Duncan Johnson a rate per litre for milk sold through Bakewell Creamery,” Guy says. The milk dispensing machine – which cost $100,000 – is housed in a small, purpose-built, transportable shop at the front of the farm. The milk is sold for $3 a litre. Reusable glass bottles can be bought from a second vending machine for $5. The venture was also driven by Guy’s desire to have a stronger connection with consumers. “They’re so grateful and appreciative. Nothing gives me a bigger buzz than hearing how much people love our milk,” he says. “Cream settles in the bottle overnight, making it the perfect addition to a morning coffee.” The Bakewells use social media to market the business and are exploring opportunities to expand their customer base. The business has grown organically, the couple say. In January Guy heard his consumers saying it was just another job to visit his farm to collect the milk – they wanted it delivered to their doors. So they converted a chiller truck into a sign-written Bakewell’s Creamery vehicle. The driving is shared among the family. They have also upgraded their raw milk company’s website so consumers can buy their milk online. “We’re delivering milk four

ON TAP: Jaye, daughter Darnell-Jaye and Guy Bakewell have created an income stream by selling raw milk direct to the public.

days a week, totalling around 500 litres,” Jaye says. “The rest is sold on site.” The farm is only 45 minutes from Auckland, which is home to a ballooning population of 1.6 million people.

It’s completely different to traditional dairy farming where you just put your milk in the vat and leave the rest to someone else. Guy Bakewell Farmer “Until recently there didn’t seem to be anyone around Auckland registered for raw milk supply,” Guy says. Now the Bakewells’ deliveries span from as far north as Whangarei to South Auckland and everywhere in between. “Our initial goal was to get fresh cows’ milk into Remuera or Ponsonby,” he says. “We’ve now achieved that.

SPECIAL SUPPLY: The herd heads off after milking. Milk from 30 cows is used to supply the vending machine, which customers can use 24/7.

“It’s a fantastic way for us to connect with people who probably don’t give a lot of thought to where milk comes from. Regulations prevent the Bakewell’s setting up raw milk vending machines in Auckland. “Until the rules change it seems the best way to get our fresh milk into Auckland fridges is to continue to bottle it and deliver it. “Another option could be that a bottle of our raw milk is included in produce boxes,” he says. The couple are certainly full of Kiwi ingenuity. But, like most farmers, balancing time with the family with the demands of the farm can be tough at times. In the past two years that effort has become a higher priority following the birth of their daughter, Darnell-Jaye. “Between the farm, our whanau and the creamery it’s a big workload that’s around the clock. “We are really fortunate to have Guy’s parents around as well as the rest of his family,” Jaye says. “They provide much-needed support from keeping the vending machines clean and tidy to bottling and delivering our raw milk. We couldn’t do it without them.” Going from dairy farmers to raw milk producers has been a steep learning curve for the Bakewells. They’ve been guided by Richard Houston, who started Village Milk in Golden Bay in 2012 after importing the first vending machine from Italy. “Hiring Richard as a consultant was a no-brainer,” Guy says. “I don’t think we would have been selling milk as early as we were without his guidance and expertise.” Normal milk sold in supermarkets is pasteurised to kill any bacteria. Raw milk is unprocessed, which means stringent hygiene practices are needed when the milk is harvested to ensure it’s free of bad bacteria. “Richard showed us how to

carefully wash, disinfect and dry each cow’s udder prior to milking,” he says. “Before we started the raw milk business we also replaced every piece of rubberwear in our milking plant and overhauled our cleaning procedures.” The business is registered with the Ministry for Primary Industries and has a food safety inspection twice a year. It’s also inspected a third time to ensure it meets Fonterra’s supply conditions. “It’s completely different to traditional dairy farming where you just put your milk in the vat and leave the rest to someone else,” he says. Guy reckons supplying raw milk would suit younger farmers who are social media savvy. But they have to have access to a big customer base and be prepared to put in extra work. Guy and Jaye aspire for Bakewell Creamery to be the preferred choice of raw milk in Auckland. “We’ve got the supply, now it’s about growing the demand,” Jaye says. “We believe we can take this to 1000 litres on our farm before we need to look at buying another property in order to increase our supply. “Eventually, we’re hoping to have our business servicing more customers across Auckland. We think that’s an achievable goal we’ve just got to keep taking steps forward to get there.” Those steps involve maximising the farm’s production, employing more staff, installing a bigger vat and erecting a purpose-built bottling facility to keep pace with growing consumer demand. “We’re only limited by our imagination as to where this goes.” This On Farm story first appeared in Dairy Farmer.

>> Video link: bit.ly/OFSbakewell

Real Estate

36 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

FEWER: Sales of finishing farms for the three months to April 30 are down 9.3% compared to the corresponding period last year.

Dairy, finishing farm sales fall

ARM sales around the country continued to fall for the three months to April 30 with dairy and finishing farms the worst

affected. Farm sales fell from 418 to 362, a drop of 56 or 13.4% compared to the corresponding period last year, Real Estate Institute figures show. There were 1443 farms sold in the year to April 30, 1.7% fewer than in the year to April 30 2018, with 31.3% fewer dairy farms, 9.3% fewer finishing farms, 22% more grazing farms and 5.7% more arable farms sold over the period. The sales reflect a continuation of the trend in sales volumes evident over recent months, institute rural spokesman Brian Peacocke said. “Compared to the equivalent period in 2018, sales volumes for dairy and finishing farms are well down, grazing units have increased, arable and horticulture properties are holding par. “From a regional perspective, provinces such as Marlborough have recovered well and are experiencing a very good autumn whilst other regions, particularly throughout the Waikato, Hawke’s Bay and central to lower North Island are experiencing restricted pre-winter feed supplies in spite of having

received modest levels of rain. “In contrast, Southland has had sufficient moisture to cause paddocks to become almost too damp.” Six of the 14 regions recorded increases in the number of farm sales for the three months to April 30 compared to the corresponding period last year, with Hawke’s Bay (+15), Gisborne (+7) and Taranaki (+7) the top performing regions. Waikato recorded the most substantial fall in sales (-29) followed by Canterbury (-20). Compared to the three months ended March 31, seven regions recorded an increase in sales with the biggest increase being in Bay of Plenty (+11 sales). The median price a hectare for all farms sold in the three months to April 30 was $22,624 compared to $27,309 for three months ended April 2018, a drop of 17.2%. The median price a hectare fell 3.2% compared to March. The all-farm price index fell 4.2% in the three months to April 30 compared to the three months to March 31. However, compared to April 2018 the index rose 5.7%. The index adjusts for differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for those factors. There’s been plenty of activity in Northland around horticultural

land suitable for kiwifruit and avocados, given the right soil type and adequate supply of water. The forestry sector has increased its activity and is competing with traditional buyers of sheep and beef farms, fuelled in part by carbon credits being deemed more attractive than timber.

Compared to the equivalent period in 2018, sales volumes for dairy and finishing farms are well down, grazing units have increased, arable and horticulture properties are holding par. Brian Peacocke Real Estate Institute Waikato has experienced a tailing-off of dairy farm sales but has seen strong interest in finishing and dairy support properties, with very good prices achieved throughout the wider region. Interest in Bay of Plenty horticulture properties continues

to be strong with kiwifruit sales to the fore, both green and gold. That’s been tempered by restricted activity on dairy and grazing properties, with reports of only 15% of the properties on the market being sold. Rain is needed in Hawke’s Bay to offset dry, windy conditions though good market prospects underpin steady sales of sheep and beef grazing units. Like Northland and Wairarapa, there is real concern regarding the intrusion of forestry into the pastoral sector. It’s been quiet in Taranaki, with limited activity on runoffs and dairy support properties. Restricted listings have led to a number of buyers waiting for more options with a better range expected in spring. Manawatu/Wanganui has seen strong activity at good prices for sheep and beef finishing and grazing properties throughout the region, particularly Tararua where a string of solid sales has taken place. Smaller finishing blocks close to the main centres have also been in demand. River-restoring volumes of rain after an extended drought in Marlborough and Nelson have created a positive atmosphere in that region despite minimal sales. Neighbour to neighbour transactions are dominant

and irrespective of a reduced viticulture harvest, demand for bare land suitable for grapes continues. The dairy and arable market in Canterbury is struggling with reports of banks advising clients to hold off in anticipation of market values easing in the future. As is the case elsewhere in the country, neighbour to neighbour transactions are key. Steady sales for dairy, finishing and grazing properties continue in Otago with solid interest in versatile units covering beef, fine wool and deer. Concerns continue regarding changes to Overseas Investment Office criteria, which have restricted buyer inquiry and sales of larger properties, in some instances so valuable that few if any local buyers, can afford them. There are reports of banks having a significant influence on the market with an insistence on extra due diligence that, in some instances, is frustrating transactions. Activity in the market for Southland dairy farms has been light with a number of properties withdrawn until conditions improve. Inquiries for sheep and beef finishing properties have been good, with solid activity on grazing units.

Gisborne 198 Humphreys Road

Dairy operation with scope for diversity Strathallan Station is an exceptionally well located and strategically positioned 1214ha (more or less) property, providing a very rare and unique offering in the Gisborne region, boasting strong cash-flow. A profitable dairy operation with over 10 years conversion experience, this proficient operation, includes a 700ha dairy platform milking the 1000 cow herd, with renewed resource consents. Additional dry stock capability add to already sound income figures, with the ability to further increase the dairy operation and increase production levels, or diversify into other income streams. Supported by good infrastructure, including a fully automated 54 rotary dairy shed, self-contained on farm runoff, excellent lane-ways, and four well-kept homes. At circa 12,000SU, Strathallan presents multiple opportunities to capatilise and grow, or diversify.

bayleys.co.nz/2751357

Tender (unless sold prior) Closing 4pm, Wed 17 Jul 2019 10 Reads Quay, Gisborne View by appointment Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz James Bolton-Riley 027 739 1011 james.bolton-riley@bayleys.co.nz MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

North Canterbury 283 McRaes Road, Waikari

Scale, balance and options

Our Vendors instructions are clear - a sale is required. They have purchased their next property and are ready to move. Now is your opportunity to own this well-balanced 731ha hill country farm. There is around 400ha of improved pastures which supports the current breeding, fattening and grazing policy. The property is well tracked with good fences and subdivision. All supplements are made on farm, bulls and winter-grazed dairy stock are grazed on brassicas, crop and annual grass and sheep are all wintered on grass, with barley fed pretupping. Infrastructure includes two woolsheds and yards, cattle yards and several sheds. The large family home has been renovated and modernised and is set in beautifully landscaped grounds with an in-ground pool. The property is situated within an hour of Christchurch city and Airport. Our Vendors are calling for all offers.

Price by Negotiation 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/558233

bayleys.co.nz

Martinborough White Rock Road

Upokongaro 187 Kukuta Road

White Rock Road - 121 hectares

186ha - Breeding and finishing unit

Hautotara is bounded by two rivers on both sides which meet at the northern end of the property, giving the block a triangular shape. The series of river flats and terraces lead to rolling hills at the rear of the property. Wonderful aesthetics with beautiful stony rivers: great for fishing, swimming, kayaking and camping: there is real tourist potential here. This is an extremely appealing property, only eight minutes drive from Martinborough. Currently used as a cattle finishing operation, this property can be utilised for dairy support, cropping, hay, silage, lamb finishing, deer farming, horses and glamping - the possibilities are endless. Wonderful outlook, superb sites for a home, this is a rare opportunity.

Tender (unless sold prior) Closing 4pm, Tue 25 Jun 2019 186 Chapel Street, Masterton View by appointment Lindsay Watts 027 246 2542 lindsay.watts@bayleys.co.nz Andrew Smith 027 760 8208 a.smith@bayleys.co.nz EASTERN REALTY (WAIRARAPA) LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Currently operating as a breeding and finishing unit. This property has been leased since the early 2000s, and has been in the same family for multiple generations. It has a complimentary mix of flat, easy and hill country. Approximately 23.8 hectares is classified as flat to undulating tractor country with a further 13.2 hectares of easy to moderate rolling contour while the balance is made up of easy to steeper hill country. Improvements include: Two sets of sheep yards, an older disused cottage with power connected, a set of cattle yards and a basic two stand dagging facility.

bayleys.co.nz/3000839

For Sale by Deadline Private Treaty (will not be sold prior)

2pm, Wed 26 Jun 2019 158 Wicksteed Street, Whanganui View by appointment Knud Bukholt 027 222 6161 knud.bukholt@bayleys.co.nz Tracey Wilson 027 412 1586 tracey.wilson@bayleys.co.nz BARTLEY REAL ESTATE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/3150597

NEW LISTING

Temuka 231 Opihi Terrace Road Looking for a first farm or to become self-contained? • • • • • • • • • •

44.5910 hectares(more or less) Options to purchase entire farm or in two smaller separate titles Very favorable, arable soils Currently used for grazing cattle and mixed arable farming Excellent rectangular shape Good standard of fencing throughout Located only minutes from Pleasant Point Three-bedroom Weatherboard home Two-stand woodshed Three road boundaries make it very attractive for bio-security

bayleys.co.nz/5510098

bayleys.co.nz

Ashburton 209 Wheatstone Road 3

Deadline Sale (unless sold prior) 3pm, Wed 12 Jun 2019 201 West St, Ashburton View by appointment George Morris 027 212 8668 george.morris@bayleys.co.nz Nick Young 027 437 7820 nick.young@bayleys.co.nz Mark Parry 0274 330 350 mark.parry@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Arable or livestock opportunity This is a rare opportunity to purchase in the favoured Wheatstone area of Mid Canterbury. On offer is approximately 80 hectares subject to survey, with very good soils and irrigation. Farm infrastructure includes numerous sheds, sheep and cattle yards, woolshed and grain storage facilities. Well maintained shelter belts and good subdivision all complement this most appealing property. A modern, brick home featuring spacious and sunny open plan living, separate lounge and four bedrooms (master with ensuite) plus internal access double garage. Options include intensive arable or any livestock operation. Suitable as a standalone unit, or as an add-on to an existing farm.

bayleys.co.nz/5510169

Deadline Sale (unless sold prior) 1pm, Tue 25 Jun 2019 201 West St, Ashburton View by appointment Jon McAuliffe 027 432 7769 jon.mcauliffe@bayleys.co.nz Simon Sharpin 027 631 8087 simon.sharpin@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Real Estate

FARMERS WEEKLY – June 3, 2019

The property consists of 156.5146 hectares in two titles with excellent soils and irrigation consents, allowing for numerous cropping options. At present grass seeds, maize, fodder beet, wheat and barley are grown plus winter contract lambs finished. The property has an excellent layout for ease of management and irrigating with a good central lane system, sheep and cattle yards, shedding and grain storage facilities. The renovated and modernised permanent material four bedroom home (master with en-suite) has been maintained to a very high standard and has all modern conveniences.

Pleasant Point 55 Dinda Road

Ashburton 161 Wheatstone Road Quality, arable, irrigated property

farmersweekly.co.nz/realestate 0800 85 25 80

Waitohi rolling downs

bayleys.co.nz/5510145

A 210.9196 hectare grazing and fattening property situated in the rolling downs of Waitohi. Located approximately 30 minutes from Timaru, this property offers the convenience of having all amenities close by. Good subdivision and excellent shelter from numerous tree plantings and hedges, as well as a woodlot with mature oak trees and an established orchard at the old homestead site provide a unique character to the land that is hard to come by. The present vendors have owned this property for approximately 45 years and in that time it has traditionally run 1,450 ewes and 370 ewe lamb replacements. Over this period of time the reliability of the farm has seen almost all the progeny finished to good weights.

Deadline Sale (unless sold prior) 1pm, Wed 19 Jun 2019 201 West St, Ashburton View by appointment Simon Sharpin 027 631 8087 simon.sharpin@bayleys.co.nz Jon McAuliffe 027 432 7769 jon.mcauliffe@bayleys.co.nz WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/5510105

WAIKATO & KING COUNTRY Office 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Oio Farms - 1,339 ha

Fertile farmlet - 18.4 ha

OPEN DAY WEB ID TUR48715

BY NEGOTIATION

TAUMARUNUI View By Appointment 60 Bullians Road Oio is located in the southern King Country approx. 30kms from Taumarunui, at the foothills of Mt Ruapehu and near to the world heritage site of Tongariro National Park. Oio Farms is a premium breeding and finishing property with the majority of its country being of easy rolling contour that would lend itself to alternative land uses if desired. Oio Farms Ltd is for sale Katie Walker as one unit comprising 1339.76 ha. In addition, there is Mobile 027 757 7477 an option to look at a part sale of approx. 520ha Office 07 895 7123 (subject to survey) being all the Oio hill country on the Home 07 895 7112 western side of SH4. katiew@pb.co.nz

pb.co.nz

WEB ID TEL68488

AUCTION

PIOPIO VIEW 9 & 16 & 23 Jun 12.30 - 1.30pm 80 State Highway 3 • Located 800m south of Piopio and 23km south west of AUCTION 11.00am, Wed 3rd Jul, 2019, (unless sold prior), Panorama Motor Inn, 59 Awakino Road, Te Kuiti. Te Kuiti • Mainly easy contour fenced into 17 paddocks with reticulated water Doug Wakelin • 1990s dwelling. 4 bedrooms (master with ensuite). 4+ Mobile 027 321 1343 Open plan living, office, datatched double garage dougw@pb.co.nz • A lifestyle / grazing property in good heart being 1 testament to a sound fertiliser history in a convenient Hugh Williams location Mobile 021 878782 Office 07 8788266 hugh@pb.co.nz

farmersweekly.co.nz/realestate 0800 85 25 80

BARELAND KIWITEA & MARTON SOILS Somersal Lane, Marton Situated 6km north of Marton on a quiet no exit road, this immaculate property instantly impresses as one that has been well cared for. The Kiwitea and Marton loams have been utilised for intensive cropping and stock finishing that includes maize grain & silage, wheat and barley. The strong fertiliser and re-grassing history is reflected in the current quality pastures. Conventional fencing is top notch with a central lane servicing 8 paddocks, with stock water via easement. Settlement flexible.

Real Estate

28.39 hectares Video on website

nzr.nz/RX1920431 Tender Closes 11am, Thu 20 Jun 2019, NZR, 20 Kimbolton Rd, Fldg Peter Barnett AREINZ 027 482 6835 | 06 323 4434 peter@nzr.nz NZR Limited | Licensed REAA 2008

Open Day 11:00-11:45am Wed 5 Jun 2019.

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

FARMERS WEEKLY â&#x20AC;&#x201C; June 3, 2019

Real Estate

FARMERS WEEKLY – June 3, 2019

farmersweekly.co.nz/realestate 0800 85 25 80

RURAL | LIFESTYLE | RESIDENTIAL

OPEN DAY

WAIKARETU, WAIKATO

TE AKAU, WAIKATO 767 Te Akau Coast Rd

$1.6M

Plus GST (if any)

VIEW By Appointment Only

Surplus to Requirement After 28 years of diligent farming now is the time to sell. • 130 hectares of flat to rolling contour • Excellent fertiliser history • Soil type Mairoa Ash • 38 paddocks predominantly 7 wire post and batten • Spring water reticulated to every paddock • Woolshed, hay barn, two sets of cattle yards Do not delay, instructions are to sell!

Excellent Late Season Opportunity • • • • • • • • •

Adrian van Mil M 027 473 3632 | B 09 237 2041 E avanmil@pggwrightson.co.nz

pggwre.co.nz/PUK28264

North west Waikato 500 hectare sheep and cattle Great contour, fencing, water and fertiliser Two homes, four stand woolshed 5000SUs (approximately) available for purchase Retired vendors keen to sell Contact the agent today for full property details Beach access Can be sold prior

DEADLINE PRIVATE TREATY (Unless Sold Prior) Closes 4.00pm, Thurs 20 June

VIEW 12.00-1.00pm, Tuesday, 4 June

John Sisley M 027 475 9808 E jsisley@pggwrightson.co.nz

Helping grow the country

SOUTHERN WIDE REAL ESTATE

RURAL | LIFESTYLE | RESIDENTIAL

VENDORS WANT THIS SOLD

MAKE THEM AN OFFER - CONICAL HILL, WEST OTAGO

Web Ref SWG1906

• Vendor finance available for the right person • Vendors are willing to help at changeover with operational guidance

39a Medway Street, Gore 9710 p 03 208 9283 f 03 208 9284 e gore@swre.co.nz w www.southernwide.co.nz

OTANE, HAWKES BAY

TENDER Plus GST (if any)

Forestry Opportunity

VIEW By Appointment Only

• • • LK0097874©

Lifestyle and home kill facilities Well set up lifestyle block with fenced lanes to all paddocks leading to and from the sheds Water troughs to all except one paddock Very tidy and well maintained Duck pond and maimai Recreational hunting with deer and pigs close by in the Blue Mountains Outstanding home kill facilities as shown in pictures

TENDER

• •

17.1879 HA FH

MARK WILSON m 027 491 7078 e mark.wilson@swre.co.nz

pggwre.co.nz/HAM30528

PGG Wrightson Real Estate Limited, licensed under REAA 2008

• • • • • • •

•

201.46ha (498 acres) ready for second rotation Post 1989 forest with all roading and skid sites in place No ETS obligations Well located at Otane in Central Hawke's Bay A proven block with all infrastructure in place for the next harvest, a significant saving for the next rotation Good location to Napier Port and capable of logging 12 months of the year

Closes 2.00pm, Wednesday 3 July PGG Wrightson Real Estate, Hastings

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

pggwre.co.nz/HAS30498 PGG Wrightson Real Estate Limited, licensed under REAA 2008

Helping grow the country

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

TE KUITI LIVESTOCK CENTRE

LIVESTOCK SALEYARD MANAGER - FRANKTON

FARMERS WEEKLY – June 3, 2019

Corteva Agriscience is the new standalone agriculture business which was formed out of the global merger between Dow Chemical Company and DuPont. Globally, the Corteva Agriscience product offering is comprised of the three heritage portfolios – Dow AgroSciences, DuPont Crop Protection and DuPont Pioneer.

An exciting opportunity has arisen for a Saleyard Manager to join our Frankton Saleyard Team. You will be responsible for carrying out the management of day-today Saleyard operations. This will include managing the Saleyards team to ensure the safe and efficient conduct of the livestock sale. The applicant must have experience handling livestock, be able to carry out or oversee repairs and maintenance. You should have excellent communication and organisational skills. This role requires knowledge and management of all compliance issues relevant to the saleyards environment.

LK0097695©

This is a salaried position of 40 hours per week with the potential for an agreed overtime rate. Remuneration will reflect the successful applicants experience. If this sounds like an opportunity for you, please email your CV and cover letter, or any questions to: mhull@associatedauctioneers.co.nz or phone 027 777 8285

Employment

RUN OFF

YOUR FEET? Turn to Farmers Weekly first for your employment advertising needs

In New Zealand, the business is entirely focused on crop protection, with plans for future developments into digital technologies for the agricultural market. Following restructuring of our commercial team and re-alignment of territories, we now wish to appoint two outstanding individuals to join our NZ commercial team, whose focus will be to provide technical support and service to our retail distribution partners.

Senior Territory Sales Manager

Territory Sales Manager

• Gisborne, Hawkes Bay, Wairarapa, Marlborough, Nelson – fly/drive • Pipfruit, Viticulture plus wider horticulture focus • Significant horticulture expertise required

• Central Waikato, Taranaki, Manawatu regions • Primarily pastoral and forage cropping, plus cereals and horticulture • Will suit a graduate with two – three years’ commercial experience

East Coast (NI), Nelson, Marlborough

Western North Island

We will offer both incumbents significant opportunity for career progression, highly supported by Corteva Agriscience, both locally and globally – the sky is the limit if you have this ambition. You will be supported by a comprehensive induction to Corteva Agriscience’s local business, including a territory wide ‘meet & greet’ tour with the Sales Manager and the opportunity to spend time in other territories with your TSM colleagues. We have a suite of product training resources, and an outstanding technical manual to assist rapid product learning and capability to respond to customer enquiries. Corteva Agriscience also has an exceptional global learning portal to assist technical and commercial development. Best of all, you will be surrounded by a highly supportive commercial, technical and customer services team, intent on helping you find your feet and prosper. An outline of Corteva Agriscience’s local and global business, plus position descriptions are available by verbal request. To inquire in strict confidence, please phone Deb Francis from AgRecruit on 021 224 5000. Otherwise send your CV with covering letter via www.agrecruit.co.nz by Thursday 13 June.

We specialise in agri-business

www.agrecruit.co.nz

Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

Farmers Weeekly

Trustee – Hawke’s Bay SHEPHERD/GENERAL WANTED

Future Farming Charitable Trust

AFFCO NZ Limited provides the world with New Zealand’s finest premium meats and associated animal by products. We select our livestock from the best New Zealand farms to enable us to provide both our international and local customers with the premium products that only New Zealand has to offer. We pride ourselves on our working relationship with our livestock suppliers. We are looking for a new member of our Livestock team, a Livestock Cadet who will be based in the North Island. This role will involve working with established Livestock Buyers to gain the required experience to become an AFFCO livestock buyer. The successful candidate will ideally have the following: • Experience on a farm and working with animals • Knowledge and an affinity for the rural sector • Full, clean driver’s licence • Willingness to learn • Ability to use Excel, Word and Outlook • Ability to move to areas in North Island if required • The applicant will be physically fit as it can be a physically demanding role

Livestock Buyer - Northland region AFFCO NZ Limited provides the world with New Zealand’s finest premium meats and associated byproducts. We select our livestock from the best New Zealand farms to enable us to provide both our international and local customers with premium products that only New Zealand has to offer. We pride ourselves on our working relationship with our livestock suppliers. We are looking for a new member for our Livestock team, an experienced Livestock Buyer in the Whangarei region. As a Livestock buyer you will be responsible for the selection and procurement of the stock that AFFCO processes. Based on the road, this role allows you to be involved in the farming sector and work with livestock whilst exercising your business skills. This position would suit an organised and motivated individual who plans thoroughly and builds great relationships to achieve success. To be considered for the role, you should have the following: • A solid knowledge of sheep, beef and dairy; proficiency in assessing stock • Confidence in handling animals • Good decision-making and negotiation skills • Be literate in Excel, Word and Outlook • A background in agriculture or the rural sector • Good people skills and the ability to relate to a wide variety of clients Experience in livestock procurement or sales experience in an industry serving the farming community is essential. A company vehicle will be provided and you must reside in the Whangarei region or be willing to relocate to this area. There is evening phone work required as a part of the role. Please note you must be a NZ resident or legally entitled to work in NZ to be eligible for these roles. If you can please forward your CV to brett.innes@affco.co.nz by Friday, 14 June 2019.

We need someone who is: • Skilled at riding a two-wheeled motorbike. • Confident and calm working with cattle. • Experienced with 8 wire fencing. • Proactive with general farm maintenance. • Has a Current Full Driver’s License. At Koanui you will be part of a dynamic work team. We strive for a high standard of farm management and top genetics. A competitive salary package based on your level of experience is negotiable. Accommodation is available on a school bus route. Start date ASAP.

The ambition of FFIWG is to make Hawke’s Bay’s food producers the pride of our entire community. To shine a light on our region’s existing and emerging agricultural expertise and create a local hub of knowledge, research, education and opportunity for profitable and resilient farming that ensures the health of the region’s soil and water, communities and farmers into the future.

Apply by Email with CV, Cover letter and 2 referees to: jen@koanui.info before June 10, 2019. Phone 06 8747844 for more information.

The FFCT will be made up of 6-8 Trustees and we seek applications across the breadth of the primary sector. It is desirable that the board is selected by way of diverse sector representation and recognises the requirement to foster governance development with a cross section of experience and youth. Applicants should be Hawke’s Bay residents committed to the proposition that growing / farming profitability and sustainability are interdependent.

JOBS BOARD RURAL SECTOR

JOBS BOARD farmersweeklyjobs.co.nz

The Trust offers the exposure to both innovation and governance; we seek an enabling attitude, integrity, energy and a genuine desire to link the producer, community and consumer via an innovative initiative. There is an information pack with further detail on the Rural Directions website. A Trustee position description will be provided to shortlisted applicants. To view an Information Pack or to apply, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 06 871 0450 (Reference #2490). Applications close 5pm, Monday 10th June 2019.

LK0097810©

Livestock Cadet

Our large Beef Breeding operation near Havelock North requires a skilled and practical agricultural worker. The farm is an extensive 1200ha of hill country only 20 minutes from town. We calve 800 fully performance recorded Hereford cows and lamb 500 ewes.

Rural Directions seek Trustee applications for the Future Farming Charitable Trust (FFCT). The Trust is the nominated mechanism to further the mission and vision of the Hawke’s Bay Future Farmers Initiative Establishment Working Group (FFIWG). The FFIWG was established pursuant to the Hawke’s Bay Regional Council’s longterm plan, the Council has seed funded the initiative for a period of 3 years however the Charitable Trust is independent of the Council.

RECRUITMENT & HR Register to receive job alerts on www.ruraldirections.co.nz

www.affco.co.nz

Agribusiness farmersweeklyjobs.co.nz Agricultural Assistant Farm Manager • 2019 Trainee Programme - Livestock Livestock Representative Manager •Operations Agribusiness •Other Agronomy •Saleyard Analyst Manager •Sharemilker Dairy •Sheep General Maintenance Dairy Opportunity • Livestock Specialist Shepherd General • Manager •Tractor/Truck/Machinery Pasture and Grazing Specialist •Operator Sharemilker • Shepherd • Shepherd/General Employers: Advertise your vacancy in the employment section of the Farmers Weekly and as added value it will be uploaded to farmersweeklyjobs.co.nz for one month or Employers: Advertise your vacancy close of application.

LK0096815©

in the employment section of the Farmers Weekly Debbie Brown 06 323 andContact as added value it will be0765 uploaded to or email classifieds@globalhq.co.nz farmersweeklyjobs.co.nz for one month or close of application.

Classifieds

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

ATTENTION FARMERS FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz DAGS .25c PER KG. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.

SCOTTY’S CONTRACTORS

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

NORTH ISLAND TRIAL LIMOUSIN-NORTH ISLAND Bull Trial Sale. Thurs 6 June. 1pm at 26 Buckingham Rd, Mangatawhiri. Catalogue: www.limousin.co.nz

TARPAULINS - PVC TARPS. All sizes. Top quality Ripstop PVC.NZ Made. Phone for quote Westlorne Ohakune 06 385 8487. www. westlorne.co.nz or email: westlorne@xtra.co.nz - FREE delivery North Island.

SHARE FARMING OPPORTUNITY AVAILABLE

Registered Stud Hereford cows. In-calf to a LBW Stud Hereford Bull. A rare opportunity to build your own herd of Registered Stud cows. For this opportunity please phone Mark 021 330 425

SOLID – PRACTICAL

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

DOLOZEST® AND CalciZest from Functional Fertiliser 0800 843 809. Keep growing soil! www. functionalfertiliser.co.nz

GST $4400 INCLUSIVE

11.5HP Briggs & Stratton Motor. Industrial. Electric start. GST $4200 INCLUSIVE

50 TON WOOD SPLITTER

GST $3990 INCLUSIVE

LK0097786©

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

MOA MASTER

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

frigidair@xtra.co.nz

Price list available.

COPPERFIELD NURSERIES 221 Snodgrass Rd RD 4 Tauranga

FOR FARMERS & HUNTERS When only the best will do!

• • • •

1 x 6 foot bale 2m diameter 15 feed positions 15 - 30 animals

100% New Zealand Made Quality Stockfeeders

0 $ 85 +GST

OVAL FEEDER (S2 Pinned) • • • • •

3 x 4 foot bales 2 x 6 foot bales 24 feed positions 24 - 48 animals 4m long

$ 120+G0 ST

0800 104 404 | www.stockfeeders.co.nz

New Zealand’s proven stock feeder for 24 years | 100% New Zealand Tensile Steel

“I’ve already put over 1000 cattle through the Auto Head Yoke and have found it to be the best investment I have made for years on the farm” Spencer Reedy, Gisborne

Proven NEW Squeeze design

d ione t p L yO Full ’ SPECIA T ‘HD 00 +GS ,5 $13

021 441 180 (JC)

12Hp Diesel. Electric Start

LK0097839©

TOWABLE FLAIL MOWER

udly NZ Madew Pro Since 1975

Specialists in superior field grown trees, all varieties grown.

1970’s Oxford. Fully reconditioned. Sleeps four. Twin axle, new braking system installed Jan 2018. New tyres. Axles and hubs reconditioned Feb 2018. Current Electric WOF, and mechanical WOF. Re-painted, refitted, re-carpeted, re-curtained Feb 2018. New fridge. 15’ x 8’ awning. Power cable. Easy to tow and ready to go to a new home. Ideal for extra accommodation. Based in the Manawatu Price $12,000 ono Phone 0274 535 952 after 6pm

STANDARD FEEDER (C6 Pinned)

Ph: Scott Newman 027 26 26 272 0800 27 26 88

CITRUS TREES

TO SAV $3 E U 50 P +G ST

Free Freight Nationwide on Mowers until end of June TOWABLE TOPPING MOWER

FREEZERS

Caravan for sale

WELL INSULATED – AFFORDABLE

FERTILISER

CHILLERS &

grant.tennet@xtra.co.nz www.copperfieldnurseries.co.nz

NEW HOMES

YOUR FARM MAPPED showing paddock sizes. Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz

0800 436 566

Fax: 07 552 4638

L NATIONA T A S U T I VIS TE RL61 I S S Y A D FIEL

FARM MAPPING

Now in Tolaga and Tokomaru Bay area

™

TARPAULINS PVS TARPS

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

Ph: 07 552 5780

www.underthewoolshed.kiwi

NZ’s #1 service provider for under woolshed cleaning for more than a decade

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

THIN K PRE BU IL T

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

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

Under Woolshed/ Cover Yards Cleaning Specialist

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

DOGS WANTED

CONTRACTORS 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.

HORTICULTURE

LIVESTOCK FOR SALE

PUMPS

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.

LK0097792©

WE HAVE A TOP selection of young Heading and Huntaways for sale. We are not traders we are breeders trainers and sellers based in Southland. Transport to the North Island no problem. Join us on facebook workingdogsnewzealand. Check out our web site w w w. r i n g w a y k e n n e l s . co.nz. Ringway Kennels. Phone 027 248 7704.

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

DOLOMITE

WANTED TO BUY

Stock Handling that is... • Durable • Versatile CIAL SPE +GST • Efficient 50 , GH $7,4, 3WD, WG • Easy to use for SU

South Island Agent: Stuart 027 435 3062 •

Site C92

0800 227 228 • Videos on website www.combiclamp.co.nz

LK0096638©

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

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.

PLAIN EYED HEADING dog. Raising 2yo. Can be used in yards or paddocks. Needs work. $1400. Phone 027 7888 115. Rotorua. VIEW SIXTY DOGS on sheep and cattle, deliver NZ wide, trial, guaranteed. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

LOOKING FOR A suitable farm in the lower North Island. Any size up to approximately 500 acres. Experienced in leasing. Innovative and open to developing land in partnership if required. Phone Michael 027 223 6156.

HAY 12 EQUIVALENT squares $70. 15 equivalent rounds $75. STRAW 12 equivalent squares $55. BALEAGE at $80. Unit loads available. Phone 021 455 787.

LK0097926©

ANIMAL AND HUMAN healer, also manipulation on horses and dogs. 3rd8th June, Canterbury. 10th-20th June, South Canterbury / North Otago / Dunedin area / Southland / Central Otago. For more information phone Ron Wilson 027 435 3089.

DOGS FOR SALE

PROPERTY WANTED

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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

FENCING WORK WANTED. Steep lines, hard lines and bush boundaries a specialty. Nationwide. Ash Contracting. Phone or text 021 0880 2414 and leave details.

STOCK FEED

LEASE FARM WANTED

GOATS WANTED

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916.

LK0097240©

CONTRACTORS

ANIMAL HANDLING

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

LK0092561©

FARMERS WEEKLY – June 3, 2019

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

Livestock

FARMERS WEEKLY – June 3, 2019

Sale line-up best yet Colin Williscroft colin.williscroft@globalhq.co.nz THIS year’s line-up of cattle and packages available at Maungahina Stud’s annual sale on Thursday is one the strongest yet with Mark McKenzie, who took over the stud from his father Bruce in 2006, describing it as an outstanding offering. “I truly believe we have something for everyone’s breeding programme.” The McKenzie family has been breeding and selling cattle in Wairarapa for the past 112 years and this year’s sale, their 74th, features 79 lots. That’s made up of 32 polled Hereford bulls, seven Charolais bulls, 16 Speckle Park bulls, 10 R1 heifers (five elite Speckle Parks and five elite Herefords) and semen and embryo packages. The sale features several standout Hereford bulls by new sires Storm, Nano and Kipling, all breeding true to type. There is a good spread of data available for females by those bulls that are also in the sale. It’s the first time in 12 years Maungahina is selling elite Hereford females, cattle Mark and Bruce say will dominate in any herd in New Zealand. At Maungahina they always

select for structure and type, with cattle having to perform in commercial conditions on hill country. They select the best genetics, striving to find the right sires to suit that goal. These days too much emphasis is put on EBVs, Bruce said. He and Mark prefer to breed to suit the country and conditions then look at the data.

If you chase muscle you tend to lose milk and fertility. Moderation, we feel, is the key.

“We want traits within breed averages,” he said. Chasing a single trait like IMF tends to lose muscle. “If you chase muscle you tend to lose milk and fertility. Moderation, we feel, is the key.” The Speckle Park bulls, sired by Maungahina Kidmans Cove and Maungahina Legacy, are the best the stud has ever offered, Mark said. Kidmans Cove is a high marbling IMF sire sought after by dairy and beef farmers. Five straws of his semen recently sold

in Australia for A$575 a straw and there will be 10 straws for sale at this year’s sale. Legacy is one of the better Speckle Park bulls bred at Maungahina, Mark said. He’s a high-yielding bull and his progeny are also showing signs of being near the top of the breed in terms of EMA and growth. This year’s Charolais bulls also represent a consistent line-up of good commercial bulls. The seven bulls are all sired by Maungahina Lammas, a son of Silverstream Horton. The Hereford heifers are a great chance for people to buy some Maungahina genetics while the Speckle Park heifers represent three different bloodlines, two of which, Line Drive and Ulysses, have never been sold in NZ. Ulysses semen sold for more than $800 a straw last year. The 21 embryo packages qualify for NZ only and represent the best of Maungahina’s top donor cows while the 10 semen packages qualify for NZ and Australia. Photos of the cattle are on the Maungahina Stud website and its Facebook page, which also features a video. The sale, at 45 Maungahina Road, off Castlepoint Road, begins at 1pm on June 6. It will be livestreamed via AuctionsPlus. STANDOUT: Storm has sired some of the bulls for sale at this week’s annual Maungahina Stud sale, with Mark McKenzie and daughter Molly.

TUESDAY 11TH JUNE , 2PM 546 SELWYN LAKE ROAD, CANTERBURY ANDREW & ANNA LAING 027 253 5625

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SUDELEY

TE WHANGA ANGUS power plus performance

ATAHUA

Millah Murrah Kingdom K35 sire of sale bulls

2yr Bulls SALE DATE: 10th June, 2019 - 11.00am 2019 Sale Bulls by: Millah Murrah Kingdom K35, Ngaputahi K13, Rangatira Eclipse 252, Kay Jay Freedom K44, Atahua 785-12

VISITORS AND ENQUIRIES WELCOME

Alan and Michele Dalziell 283 McBeth Road, RD7, Feilding 4777 Ph: 06 328 9784 Mb: 027 629 8954 Email: atahua.angus@farmside.co.nz

Colin and Louise Dalziell Ph: (06) 328 5011 See ebook catalogue online via Pivot Design or Internet Solutions

2019 FRIDAY 7 JUNE SALE DATE 10.00

23, 2 year old Angus Bulls

JASON COFFEY 691 Te Kopi Rd, RD4, Masterton P. 06 372 77 20 M. 0274 570 526 www.borthwick.co.nz te_whanga@borthwick.co.nz

Livestock

FARMERS WEEKLY – June 3, 2019

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

Selective buyers target cow quality Mel Croad mel.croad@globalhq.co.nz IN-CALF beef cows and heifers are following the trends set by weaner cattle over the last three months. After peaking in 2017 prices have adjusted lower and this year have settled at 2015-16 levels. Prices at some fairs match or surpass last year’s but it has been with much less frequency. In-calf cows and heifers are certainly more affordable this year, which has allowed more buyers to target quality cattle with breeding potential. Quality and presentation of the cattle have been two key factors determining just how competitive buyers are. With feed shortages apparent in many regions this autumn, buyers have been selective and stuck to cows and heifers showing good condition and breeding. In many cases these cattle have achieved a premium, with vendors rewarded for their presentation. Lines of these types have been greater this year, particularly in the North Island where farm sales, many to forestry, have increased the number of capital stock lines. However, there have also been the annual draft lines that draw buyers in from further afield for a chance to secure a quality line of breeding stock. Processors haven’t been as active at the breeding cow and heifer fairs this season as they have in previous years. While they have generally set the base

for the mixed-age cow price, the fact a larger percentage of cows returned to the paddocks for breeding is promising. It shows farmers still believe cows have a place on sheep and beef farms and this will continue to underpin demand for breeding bulls. While beef studs continue to make advances in production and breeding they need to see breeding cow herds can maintain numbers. In 1998 NZ beef cow numbers were 1.38 million but have since fallen by an estimated 410,000 head. Much of the decline occurred between 1998 and 2015. Over the last four seasons numbers have fluctuated between 950,000 and 980,000 head, indicating the rate of decline is slowing. That has been greatly influenced by the peak in weaner calf prices in 2017, which revitalised demand for breeding cows and heifers. There might be some natural attrition for cow numbers from herds heavily reliant on strong weaner fair results. However, for many farmers who have re-introduced breeding cows or increased cow numbers over the past couple of seasons, it’s the positive impact these classes of stock are having on pasture quality and the flow-on benefits to other enterprises in their operations that has been key. It is expected those who have expanded in recent years will have likely reached optimal numbers while established breeding herds will continue to maintain numbers.

Red Oak

Over the last four seasons numbers have fluctuated between 950,000 and 980,000 head.

While breeding cow prices might plateau, those who stick it out show they are invested in the industry and are prepared to play the long game based on a firm outlook for beef rather than focusing just on next season’s returns. That gives stud bull breeders a reason to continue to invest in their part of the equation.

STEADY: Prices for breeding cows and heifers might have evened out.

Maungahina Sale date 6th June –1pm

at Maungahina Homestead. 112 years of breeding.

Maungahina Storm (sons in Sale)

14thbulls Annualavailable Bull Sale Another great line-up of quality by these outstanding sires

Friday 16th June 2017 3pm on-farm 40 meaty hill-country 2yr old bulls

Stud cow with a hill-country bull calf from this season

All seasons at Red Oak - dry and snow

At Red Oak we breed cattle that are run commercially on hill country up to 2600 Ft . They compete with large sheep numbers, 66% sheep to 33% cattle stock units, and are exposed to all conditions from 2 year droughts to snow as the pictures indicate. We select cattle that thrive in this environment and deliver top actual growth and scanning data. We are proud of the raw actual data our cattle achieve which is always available for potential clients to observe. We don’t believe in, or hide behind estimates as they have failed to deliver results under our conditions.It is easy to breed pieces of paper but a bit harder to breed decent cattle! The results of this, breed bulls like Herdsire ; Red Oak High Country 770 (pictured), Outstanding sons will be available for sale this season.

Legacy Sire of Speckle bulls

Combining old NZ bloodlines, common sense stockmanship and modern technologies to produce functional high performinghill country cattle!

Rick & Deb Orr

Red Oak High Country 770

Red Oak, Weka Pass, RD3, Amberley Phone: 03 314 6759 Mobile: 0272 457 751 redoakstud@amuri.net

INSPECTION & ENQUIRIES ALWAYS WELCOME

16th Annual Bull Sale

79 lots including Polled Herefords, Charolais and Speckle Park bulls. 5 elite pedigree Hereford heifers and 5 Elite pedigree Speckle Park heifers. Speckle Park Embryo and Semen.

Friday 14th June 2019 at 3pm 40 meaty hill-country 2 year old bulls

SIRES OF SALE BULLS INCLUDE:

Red Oak 949, Red Oak 11, Meadowslea 179, Waitawheta K144, Waitawheta K25, Red Oak 278

Rick and Deb Orr Red Oak, Weka Pass RD 3, Amberley Phone: 03 314 6759 Mobile: 027 245 7751 redoakstud@amuri.net

Inspection and enquiries always welcome

LK0097819©

Combining old NZ Bloodlines, common sense stockmanship and modern technologies to produce functional high performing hill country cattle!

Ph Mark or Bruce McKenzie: 027 415 8696 or 06 377 4836 Email: mark.maungahina@xtra.co.nz www.maungahina.co.nz

LK0097901©

Red Oak Meaty 293

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

Livestock

SALE TALK

STOCK FOR SALE

730 MA ROMNEY EWES FE Tolerant RW Rom & Terminal Ram (14/04 – Priced to SELL) 1300 MA ROMNEY EWES (05/03 RAM Scan 07/06) 56 R2YR FRES BULLS 325kg @ $2.65

STOCK REQUIRED

HEAVY MALE LAMBS 36-42kg MA ANGUS COWS – NOV/DEC BULL R2YR ANG & AX STEERS 460-500kg

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381 A Financing Solution For Your Farm E info@rdlfinance.co.nz

FARMERS WEEKLY – June 3, 2019

Mitch had a problem with body odour, so he went to see his doctor. “Do you wash?” doctor asked him.

the

“Of course,” Mitch replied. “Every single morning I begin at my head and wash down as far as possible. Then, I begin at my feet and wash up as far as possible.” “Well,” the doctor told him, “I suggest you go home and wash possible.”

Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’ve keen to hear more! If you’ve got a joke you want to share with the Farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@globalhq.co.nz with Sale Talk in the subject line and we’ll print it and

LIVESTOCK ADVERTISING

credit it to you. Conditions apply

IT’S A NO BRAINER!

USE CHAROLAIS

TO LIFT THE PERFORMANCE OF YOUR HERD Use your Hereford and Angus to do this job

Est. 1910 www.motereangus.co.nz

HAVE A SALE COMING UP?

38 R2 AngusPure Bulls for sale privately now Viewing by arrangement Please contact: Isaac or David

06 857 3705 or 027 857 3705 Sale bulls remaining will be on display June 11th onwards for sale privately

Call Nigel 0800 85 25 80

Motere Angus Rostrum

livestock@globalhq.co.nz

766 Long Range Rd, Omakere

Contact: Isaac Pharazyn 06 857 3828 027 857 3828

80 YEARS NEW

Gisborne Angus Breeders Sale 22 Angus Bulls

Matawhero Sale Yards

and leave this job for the

CHAROLAIS! New date:

CONTACTS:

Monday 24th June 2019

New time:

ALPINE ANGUS Steve Herries 027 289 3001

Sale starts at 12.30pm

ORERE ANGUS Ben & Kylie Johnson 06 867 8089

New Line up of Breeders: Alpine, Orere, Waimata

WAIMATA ANGUS Pat & Evelyn Watson 06 867 0336

S AIrces OL AR CH sou #morebeeflessre

#begreengowhite #whenkilosmatter #weightpays #yieldpays Jennifer, Fred, and Chris Chesterman invite you to our sale.

CHAROLAIS BREEDERS NEW ZEALAND Inc P. O Box 503, 75 South Street, Feilding 4740 P:06 323 4494 E: charolais@pbbnz.com

www.charolais.net.nz

SALE DATE: Thursday June 13th, 2019 at 1.00pm

70 Bulls on Farm Auction

“The Sale Shed” 811 Maraetotara Road, Havelock North. Ph: 06 874 7844 Mobile: 027 4888 635 Email: kphp@xtra.co.nz

www.koanuiherefords.co.nz

Livestock

FARMERS WEEKLY – June 3, 2019

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

SILVERSTREAM

BULL SALE

CHAROLAIS.HEREFORDS

BULL SALE

44 ANGUS 2-YEAR-OLD BULLS FRIDAY 14TH JUNE AT 1PM 839 VALLEY ROAD, HASTINGS Contact: Will MacFarlane 06 874 8762 will@waiterenui.co.nz

PROCESSORS OF LAMB, MUTTON, GOATS & BOBBY CALVES

Wed 12th June 2pm

On Property, Greenpark, Christchurch

SOME REAL BENEFITS TO YOU THE FARMER IN SUPPLYING CRUSADER MEATS:

For all livestock enquiries contact our livestock coordinator: Danny O’Leary Mob: 027 467 6251 Office: 06 363 7237 Email: danny@crusadermeats.co.nz

LK0097758©

Same day kill where possible Payment within 2 business days of kill Kill sheet – emailed afternoon of kill Competitive schedules New Zealand family owned business Just a bunch of really good buggers

LOT 5

LIVESTOCK ADVERTISING with Farmers Weekly LK0097856©

LOT 37

PHONE NIGEL RAMSDEN 0800 85 25 80

LOT 41

LOT 71

LOT 73

LOT 75

Hit the bulls-eye with advertising in Farmers Weekly. Reaching over 78,000 rural mailboxes weekly we are the ideal space to engage with the right audience for your bull sales. Farmers Weekly also publishes a free weekly e-newsletter during autumn and spring that showcases bull sale results from around the country. Adding digital advertising options to link to your catalogue offers added benefits.

LK0097312©

• • • • • •

LOT 76

To find out more, contact Nigel Ramsden on 06 323 0761, 027 602 4925 or email livestock@globalhq.co.nz 85 LOTS . 72 Charolais . 13 Herefords

farmersweekly.co.nz

Fisher Family 03 3290994 027 2514791 silverstream@farmside.co.nz www.silverstreamcharolais.co.nz

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

Livestock

C E L E B R AT I N G 6 9 Y E A R S O F B R E E D I N G H I S T O RY

S E C O N D O N FA R M S A L E

FARMERS WEEKLY – June 3, 2019

RANUI Bull Sale

Strathmoor Polled Herefords

Bull Sale

T U E S DAY 1 1 T H J U N E 2 0 1 9 , 1 0 . 3 0 A M 1 0 2 L AW S R O A D , D A N N E V I R K E

3.00pm Thursday, 6th June Karamu, 662 Rangitatau East Rd,Wanganui

June 6th, 2019 2.00pm at Te Kuiti Saleyards 7 Hereford rising 2-year bulls

• • • •

Enquiries: Bruce Masters 07 878 8502

Brent Wallbank NZ Farmers Livestock 027 488 1299

INSPECTIONS WELCOME @AnuiStudLivestock Willy Philip 102 Laws Road, Dannevirke Ph: 06 374 8857 Email: anui@xtra.co.nz

Kevin Mortensen PGG Wrightson 07 877 8205 027 473 5858 Cam Heggie PGG Wrightson 027 501 8182

John Philip 923 Mangatuna Road Dannevirke Ph: 06 374 2861

• • • •

Bulls displayed on concrete Hard surface in sale ring. Feet visible BVD Tested Antigen Clear & Vaccinated 3-year Guarantee for soundness & fertility

“Internationally proven from sea level to snow line” Enquiries to:

John Grainger PGG Wrightson 07 878 8969

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Or agents: Brent Bougen NZ Farmers Livestock 027 210 4698

All bulls are semen and service tested Scanned for carcase Independently inspected Cow herds run under commercial conditions

Looking for Hill Country Bulls?

Lin Johnstone Phone: 027 445 3213 Lindsay Johnstone Phone: 027 445 3211 ranui.w@farmside.co.nz PGG Wrightson Agents Callum Stewart Ph: 027 280 2688 Ken Roberts Ph: 027 591 8042

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Sale Catalogue online: www.ranuiangus.co.nz

86a Thames Road - Paeroa - 20th June 2019- 1pm

Wa i t aw h e t a A n g u s On Farm 2yr Angus Bull Sale - 26 Bulls Bulls Sired By:

Waitawheta H8 ET - Waitawheta D12 - Basin Paycheck 5249

LIVESTOCK ADVERTISING PHONE NIGEL RAMSDEN 0800 85 25 80

Kowai Trust 484 - Glanworth Waigroup 1213

Meadowslea F540

Waimata E230 - MF Wallace 2014

Exceptional Maternal and Fertility traits for Hill-Country

Best offering of Waitawheta Angus Bulls to date

Meadowslea Angus offers: 76 Hill Bred Bulls Strong NZ Bloodlines

On property Fairlie, Friday June 21 at 1pm

SIRES OF 2019 BULLS INCLUDE:

David Giddings 03 685 8027 PGG Wrightson Peter Walsh & Associates Rural Livestock Carrﬁelds Livestock

AYRVALE BARTEL E7 WILLIAM OF STERN RANGATIRA 91-13

LK0097831© LK0093012©

Catalogue online and on facebook: www.meadowslea.co.nz

WHENUAPAPA CRUMBLE 8-10

Breakfast and viewing from 7am

Have you got a bull sale coming up? Advertise in Farmers Weekly

PHOTO TO BE SUPPLIED Kate Taylor (2/3 Feb 2015)

BULLS ALSO AVAILABLE BY PRIVATE TREATY

JUSTIN & MEG KING, 34 PAULSEN ROAD, TAKAPAU P: (06) 855 8288 | M: 027 248 8400 | E: justin@brookwood.co.nz

www.brookwood.co.nz

LIVESTOCK ADVERTISING

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

Top quality bulls bred for NZ Farmers ● ● ● ● ● ● ● ●

BVD Tested Clear BVD Vaccinated Breedplan Recorded TB Status C10 Herd completely free of known genetic defect Only proven NZ bred bulls used in last 10 years Renowned for great temperament Three year guarantee

Enquiries and inspection welcome. Contact

34th Annual Sale

Monday 10th June 2019

Kevin or Megan FRIEL ph: (06) 376 4543 625 Jackson Road, Kumeroa kev.meg.co@xtra.co.nz

www.mtmableangus.co.nz

Contact: Alistair & Pat Sharpe 07 863 7954 or 021 054 7862 Kevin Fathers 0272 799 800 - Brent Bougen 027 210 4698 - NZ Farmers Livestock Stud Stock

If you are looking for Pure NZ Genetics with substance and constitution we recommend you attend this sale.

Livestock

FARMERS WEEKLY – June 3, 2019

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

PETER & CAROLINE FOSS

MORRINSVILLE DAIRY COMPLEX

Sound well fleshed sires, Excellent temperament 200 Fully breedplan recorded cows 20 Bulls Catalogued

Thursday 20th June (If not sold prior) On A/c Client 120 x Fr/Frx Incalf Cows

WILTSHIRE RAMS AVAILABLE

ON FARM JUNE 5 AT 1PM

> Genuine full shed sheep

at Kairuru,28Reporoa (m R2YR BULLS

> No shearing

26th March a FREE DELIVERY

BULL OPEN DAY • ALL ENQUIRIES WELCOME WEDNESDAY 29TH MAY 1 - 5PM

LK0097479©

25TH ANNUAL SALE THURSDAY 6TH JUNE 1PM, TE KUITI SALE YARDS

SINCE 1979

28TH ANNUAL SALE

> No dipping LK0097929©

Contact Bill Sweeney 027 451 5310

POLLED HEREFORDS

> No dagging

BW 61 PW 115 RA 95% Catalogues available

KAIRURU

495 Potaka Road, RD 1, Aria, King Country Ph/fax (07) 877 7881 Email: pcfossy@xtra.co.nz

PRELIMINARY NOTICE

GET THE WHITEFACE ADVANTAGE

LOT 2

KEVIN & JANE MCDONALD (REPOROA) 07 333 8068 • 027 451 0640 JEFF & NICOLA McDONALD 021 510 351 • kairuruNZ@gmail.com

TOP QUALITY ANNUAL IN-CALF HEIFER SALE

TE KUITI CATTLE SALE

Cambridge Sale Yards Hickey Road, Cambridge Date: Monday 10th June 2019 Start time: 11.30am

FRIDAY 7th JUNE 12 Noon On A/c Tarata Trust

Comprising 252 Outstanding heifers

20 R2 Frsn Bulls

Luke Bird Family Trust 115 x Predom Fsn Hfrs - BW 77 PW 68

Contact Brent Bougen

B & A Bird Partnership 25 Predom Fsn Hfrs - BW 66 PW 61

LK0097894©

80 R2 Hfd Bulls

027 210 4698

MEAT-MAKERS

Vendors: A/c Clients

Second Annual Sale September 12, 2019 at 2pm 216 Wiltons Road Carterton

Woodlands Trust 70 Predom Fsn/fsnx Hfrs - BW 66 PW 69 Island View 30 x Xbred Hfrs - BW 134 PW 158 NCH Ltd 12 x Fsnx in calf hfrs - BW 105 PW 108 Calv 20/7 to Jsy - bulls out 23/12/2019 3 digit herd code - bred by Norn AB sire Details: Never been offered for sale – index above National Fsn average. Due to calve from 18th July to Jrsy – removed 22nd December. Farmed on Taihape rolling country from weaners.

Enquiries to: Stephen Sutton 027 442 3207

Payment date: 14 days from date of Auction.

40 Years of Proven Performance 45 Top Quality Simmental Angus Bulls

Enquiries to: Pat Sheely 027 496 0153 Kelly Higgins 027 600 2374 View catalogue on

www.carrfieldslivestock.co.nz

BULL SALE RESULTS 2019

8259 calf weaned at 65% of cows body weight

Registered Polled Herefords

LK0097916©

LK0097924©

Special Entry Account Warren & Karen Petersen

Terrific boned cattle with potential.

8393 calf weaned at 77.8% of cows body weight

Auctioneers note: A grand opportunity to select from the genuine lines of very good Fsn and Fsn x heifers. Pat annually selects lines of dairy weaners for these clients and are all fully recorded. All TB free, vetted incalf and the vendors ensure they provide the best possibilities to dairy farmers.

Comprising 1000 Cattle

100 x R3yr Hfd/Frsn & Ang/Frsn Hill country steers.

13 in-calf R2yr heifers 13 heifer calves

KEVIN & JANE McDONALD

07 333 8068

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

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

LK0097450©

Stratford Saleyards Wednesday 12th June 2019 12 Noon start

Farmers Weekly will be sending the autumn bull sale results e-newsletter from May 2019. Contact Nigel on 06 323 0761, 027 602 4925 or livestock@globalhq.co.nz to sign up or include your sale results and receive weekly updates. LK0097310©

TARANAKI AUTUMN CATTLE FAIR

DON’T MISS OUT. farmersweekly.co.nz

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

Livestock

FARMERS WEEKLY – June 3, 2019

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

LIVESTOCK ADVERTISING

Bull Sale – 4th June 12 noon, On Farm Tiraumea

Are you looking in the right direction? To advertise Phone Nigel 0800 85 25 80 or email livestock@globalhq.co.nz

farmersweekly.co.nz LK0097365©

Fully Guaranteed Service & Semen Tested TB Clear C10 EBL & BVD Tested & Vaccinated Free Delivery (NI)

RIVERLEE HEREFORDS

otapawa@xtra.co.nz Stuart Robbie 027 848 4408 Douglas & Dara 06 376 7765

3rd Annual Bull Sale 11th June 2019, 1.30pm

Held under cover on farm 2354 Rangiwahia Rd Rangiwahia, Manawatu

bidr cattle sale

Thursday, 6th June, 7pm 20 R2yr Polled Hereford Bulls

HILL COUNTRY BRED FOR HILL COUNTRY FARMERS

Head to bidr.co.nz

Selling Agents: Carrfields Livestock: Bruce Orr 027 492 2122 Lindsay Bensemann 027 484 0551 Dan Warner 027 826 5768 NZ Farmers Livestock: John Watson 027 494 1975 Brent Bougen 027 210 4698

Email: mfcurtis@farmside.co.nz

LIVESTOCK ADVERTISING

GOING GOING GONE! Call Nigel

0800 85 25 80 livestock@globalhq.co.nz

IT ALL STARTS HERE

Key: Dairy

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www.herefords.co.nz

Enquiries & Visitors Welcome Murray & Fiona Curtis 06 328 2881 or 027 228 2881

Bid, buy, sell all things rural

Beef

Sheep

HIGH INDEXED QUALITY JERSEY/JERSEY X CLEARING SALE Monday 10th June 11.30am For convenience to be held at Morrinsville Saleyards. A/C JF & LM Wilson Comprising: 128 Jersey/Jersey X In Calf Dairy Cows BW 137 PW 169 RA 97% Herd D.T.C 8th July In Calf LIC Jersey 60 weeks (90%) tailed angus (bull out 24th Dec) 310 M/S per cow this this season/feed system 1

Glanworth on farm auction Thursday 27th June 2019 at 2.30pm

35yrs ownership/farm sold.

Pinebank By Private Treaty Celebrating 100 years of breeding history 1919 - 2019

Full particulars to follow. Contact Allan Jones 027 224 0768 or Matt Hughes 027 405 2824

The Bull Sales Specialists View upcoming bull sales pggwrightson.co.nz/bullsales

Other ON FARM CLEARING SALE Tuesday 11th June 10.30am A/C Pukekaka Station 919 Pukeokahu Road, RD6, Taihape Offering: Due to Farm Sale • 2013 Massey Ferguson 5450 Tractor, Loader, Bucket, Forks, Cab, 4x4, 1580 Hours • 2018 GLX Mitsubishi Triton D/Cab Bullbars Flatdeck 2.4 Turbo Diesel 15,000kms • Honda Side by Side 700cc 1300 hours power steering • Honda Side by Side 700cc 1800 hours • 2006 Brent Smith Tandem Wheel Trailer 2.4m x 1.5m • 2x Brent Smith Dog Trailers with permanent crates 1m x 1.2 m • Yard Machines 20 Tonne Log Splitter • Fence Pro 4.0 Mule Post Thumper with 900mm side shift • Soft hands Bale Grab • 650 Bertolini Sprayer with foam marker, 6m spray boom, 100m hose and gorse gun • Farmguard Contractor 560 3 way hydraulic 2.4m Grader Blade • 3 Point Linkage Bale Feeder • Electrodip with pump and 1500 litre tank • Pratley Portable yards, 19 alloy gates, 4 wooden panels and more • Tru-Test SRS Stick Reader • 950 litre double sided fuel tank • 2 Covers for Fertiliser bin 12m x 10m • 3 Round bale feeders • 2 Personal Locator Beacons • 2.35m Docking Shute • Te Pari Docking Iron and Gas Bottle • Plus a large number of other farm equipment, tools and household items. Please see www.agonline for full catalogue Payment by Cash, Cheque or Full PGG Wrightson Trading Account. Enquiries: Vendor – Rob Stratton 06 388 0052 or Phil Transom 0274 420 060

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

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MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Nicola Dennis

Mel Croad

Cattle

Reece Brick

Caitlin Pemberton

Sheep

BEEF

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

5.50

5.40

NI lamb (17kg)

7.60

7.50

7.60

NI Stag (60kg)

8.80

11.10

NI Bull (300kg)

5.20

5.30

NI mutton (20kg)

5.20

5.15

5.00

SI Stag (60kg)

8.95

11.10

NI Cow (200kg)

4.10

4.05

4.35

SI lamb (17kg)

7.25

7.20

7.35

SI Steer (300kg)

5.05

5.25

SI mutton (20kg)

5.05

4.95

5.10

SI Bull (300kg)

4.90

Export markets (NZ$/kg)

SI Cow (200kg)

3.45

3.70

UK CKT lamb leg

US imported 95CL bull

7.69

7.78

6.75

US domestic 90CL cow

7.54

7.55

7.04

Slaughter price (NZ$/kg)

Last week Prior week

Last year

9.84

9.08

Export markets (NZ$/kg)

6.0

6.5

8.5

$/kg CW

Oct

Dec 5-yr ave

Feb

$/kg CW 5-yr ave

Apr

Jun

2017-18

Dairy

Aug 2018-19

Apr 2017-18

Jun

Aug 2018-19

Last week

Prior week

Last year

Coarse xbred ind.

3.26

37 micron ewe

30 micron lamb

MILK PRICE FUTURES

625

483

3.35

Super

321

302

4.75

DAP

833

750

$/tonne

Jun-18

Aug-18 Oct-18 Sept. 2019

Dec-18

Feb-19 Sept. 2020

400

DAIRY FUTURES (US$/T) Nearby contract

Last price*

May-18

vs 4 weeks ago

12.3

4.18

3.54

Ryman Healthcare Limited

11.33

12.5

10.4

3.9

3.98

3.51

Nov-18

Jan-19

Mar-19

May-19

Contact Energy Limited

7.35

7.53

5.82

Fletcher Building Limited

5.26

5.5

4.57

Port of Tauranga Limited (NS)

6.02

6.21

4.9

Listed Agri Shares

5pm, close of market, Thursday

2.920

10.850

9.400

Fonterra Shareholders' Fund (NS)

3.940

4.850

3.940

Foley Wines Limited

1.940

2.000

1.470

Livestock Improvement Corporation Ltd (NS)

0.900

1.050

0.750

360

New Zealand King Salmon Investments Ltd

2.300

2.980

2.100

340

PGG Wrightson Limited

0.520

0.580

0.470

Sanford Limited (NS)

6.680

7.060

6.350

Scales Corporation Limited

4.670

5.130

4.340

SeaDragon Limited

0.002

0.003

0.002

Seeka Limited

4.780

5.350

4.200

Synlait Milk Limited (NS)

9.150

11.350

8.860

5900

Butter

5250

5200

5220

Milk Price

6.40

6.47

$/tonne

16.69

3.76

10.800

5900

380

320

May-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

WAIKATO PALM KERNEL

$/tonne

15.36

Delegat Group Limited

5900

US$/t

Fisher & Paykel Healthcare Corporation Ltd Spark New Zealand Limited

10.420

AMF

Nov

7.065

5.420

400

Oct 4 weeks ago

8.685

3.100

2520

Sep

8.62

Comvita Limited

2535

Jul Aug Latest price

3.38

Auckland International Airport Limited

YTD Low

2535

3100

4.42

16.980

SMP

3150

4.27

YTD High

420

3200

10.42

Meridian Energy Limited (NS)

15.610

3170

3250

YTD Low

16.98

The a2 Milk Company Limited

3185

WMP FUTURES - VS FOUR WEEKS AGO

YTD High

15.61

3155

Jun

Sep-18

440

* price as at close of business on Thursday

The a2 Milk Company Limited

Company

WMP

3050

Jul-18

CANTERBURY FEED BARLEY Prior week

Company

Mercury NZ Limited (NS)

320

Apr-19

NZ average (NZ$/t)

Top 10 by Market Cap

360 5.75

Fertiliser Urea

440

6.25

Aug 2018-19

Last year

480

6.75

Jun

Prior week

CANTERBURY FEED WHEAT

7.25

Apr 2017-18

Last week

Grain

Data provided by

Feb

FERTILISER

(NZ$/kg) Feb

Dec 5-yr ave

WOOL

5.0

Dec

Oct

5.5

Oct

8.5

6.5

South Island steer slaughter price

9.5

7.5

4.5

$/kg MS

$/kg CW

10.5

4.5

5.0

South Island stag slaughter price

11.5

South Island lamb slaughter price

4.5

8.5

6.5

5.5

6.0

9.5

7.5

5.5

4.5

Last year

10.5

7.5

$/kg CW

North Island steer slaughter price

North Island lamb slaughter price

Last week Prior week

North Island stag slaughter price

11.5 9.88

8.5

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

350

T&G Global Limited

2.750

2.810

2.600

S&P/NZX Primary Sector Equity

15981

17434

15063

S&P/NZX 50 Index

10072

10263

8732

300

S&P/NZX 10 Index

9795

10066

8280

250 200

May-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

S&P/FW PRIMARY SECTOR EQUITY

15981

S&P/NZX 50 INDEX

10072

S&P/NZX 10 INDEX

9795

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

7.25

SI SLAUGHTER STEER ( $/KG)

5.05

NI SLAUGHTER MUTTON ( $/KG)

5.20

GOOD MIXED SEX LAMBS AT TEMUKA ( $/HD)

135

Too many mandarins NORTH ISLAND

farmers have been trying to get shearing completed before temperatures take a dive this weekend. Manawatu has had some steady rain and the farmer we spoke to said he wouldn’t be surprised if his people were outside dancing naked in it, celebrating. Farms need rain before it gets too cold for the grass to grow. There have been high winds in Horowhenua and some trees have come down. Vegetables are almost growing too well. Growers almost need some rubbish weather to push prices up.

AIN was building in Northland on Friday. It’s been unusually dry but rain will help lift the market for stock because there’s now a possibility of grass growth. Lots of cattle have been flowing onto the market – too many for the demand and prices have been trending down. Northland looks green but there’s a shortage of water. Some springs are dry and old timers say there are places where they’ve never seen that happen before. In South Auckland light rain at the start of the week was followed by heavy rain from Friday morning, the heaviest in months. With hail forecast too, winter has finally arrived. It’s been so mild most vegetables are still in heavy supply. Broccoli is probably the cheapest vegetable at the moment and a retail price of $1 a head means it is almost free. If that’s not enough for the poor growers pukeko, rabbits and hares are having a field day destroying crops. Rain in Waikato has been just what the doctor ordered. Pasture is growing but moisture’s really needed to wet up the subsoil. Some farms changed hands over the weekend and sharemilkers or contract milkers moved on to new properties. The trend towards farm owners employing contract milkers or lower order sharemilkers rather than 50:50 sharemilkers is continuing. Owners feel they’re not financially that well off with the traditional agreements. Returns on capital invested historically favoured the sharemilker so now owners want to keep a bit more for themselves. Sheep and beef schedules are still good. Beef is right up there because of African swine fever in China. That country has slaughtered tens of millions of pigs so customers are hunting for alternative sources of protein. Maybe we’d better be ordering our Christmas ham now. When we rang Bay of Plenty the orchardist we speak to was sheltering from the rain. He had two hours of picking to go before all his green kiwifruit was off the vines. He estimates the region’s green crop will all be in bins in the next 10 days. The weather’s been great for the harvest and that has given workers a much better run. Last season it was terribly stop start. He says the initiative this year to attract workers, which has been to pay them a bit more and guarantee minimum hours, seems to have paid off. As for dairy farming, we’re told while the payout for next year seems encouraging now banks are trying to claw back some of the money farmers owe them so things will still be tight cash-wise. Quite a few farmers moved to interestonly loans over the past few years and now banks are expecting some principal to be paid back. Other farmers wanting to do capital work on their farms are being told debt needs to be reduced first. King Country’s been holding its bull sales and there have been some very pleasing results. At some sales 95% to 100% of bulls have sold. Prices are up 5% to 10% on last year and last year wasn’t too bad. One Angus farmer sold 80 out

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

SOUTH ISLAND

WHO’S NEXT? Paul Johnson of Carrfields Livestock sells breeding ewes to a sizable crowd at Stortford Lodge last week.

of 84 bulls for an average $9300 and on another stud the average bull price was $7600. In Taranaki just a handful of herds are still milking, trying to catch a bit of extra money for the season. Milk production for the season across the province is up 8% to 9% on last year but last year was very dry. There are good pasture covers going into winter. At Gisborne we’re told 85% of farmers are in a really good place. Feed-wise winter hasn’t started and the consultant we speak to says they’re in the box seat. The only negative is there’s been a slide in prices for store cattle because of a lack of feed around the rest of the country. He was waiting to hear the result of a farm being sold on Friday and says foresters are starting to up their game because in recent times they’ve been beaten at farm auctions by farmers. He knows of one farmer who turned down a lot of money from a forestry company to ensure the land stayed in sheep and beef. He’s against the blanket planting of farms but says it’s a good idea to put a portion of poorer land into trees. He says that helps with farm succession – the trees are kept for all the non farming beneficiaries and the child who wants to go farming doesn’t have to pay for the land in trees, which makes the farm more affordable. The brakes have been put on Gisborne’s mandarin harvest, everything’s been parked up to get the crop that’s already off the trees sold. There’s an oversupply because the fruit was ready much earlier than expected. Hawke’s Bay farmers are relieved to have had rain. May has been incredibly dry and even dusty. Northwest hills are turning brown but slopes way from the sun and wind have been growing reasonably well. Lamb prices are still strong and cattle are good buying. Our consultant contact there says farmers are talking about trees. He believes smallscale planting will add value but blanket forestry over good land is a poor longterm decision. Wairarapa is looking for rain. It was forecast for the weekend and this week. It’s been very warm and people have been enjoying the chance to get on with fencing in decent weather. Sheep

TEMPERATURES in Nelson and Motueka reached 18C last week. There have been some heavy showers over the last few days too. Orchards are being cleaned up, pruning is under way, trees are being pulled out and the ground is being made ready for planting. A steady flow of packed fruit is coming out of coolstores for local and export markets. The 60 tonnes of feijoas grown by the region’s16 growers this year is a big drop on last year when about 100 tonnes were harvested. Fruit size is bigger this year though and that’s what the market wants. New varieties are growing fruit weighing 65g compared to the usual 45g fruit coming off older trees. Farmers in eastern Marlborough were happy to get the rain last week as it’s restored soil moisture levels going into winter. Farmers in the Rye Valley and Picton recorded good amounts too. Vineyards have been changing hands and on farms ewe scanning is under way on lower hill properties and good results are expected after such a great season. A farmer up the Grey Valley on the West Coast says it’s been wet. Over four days he recorded 150mm in the gauge but he reckons that’s a lot less than what’s fallen in south Westland. His dairy shed’s still working but the cows will be dried off once they’ve eaten the last of milking grass. They’re also getting a top up of silage. Most of his surplus or empty cows have gone to the works. It’s been another stunning week in Canterbury with warm and mostly dry conditions. That was expected to change last weekend with the first real sign of winter on its way. The conditions have been so good some farmers have been able to plant catch crops after early grazed fodder beet last week, which is much earlier than normal. On Central Otago farms everyone’s in winter mode, sheep and cattle are on balage and silage and dairy cows are going onto wintering blocks. It’s muddy underfoot in western Southland after a good dose of rain this week. Most stock are now behind breaks on crops. Tupping has finished but rams are still out with hoggets. Ewe scanning starts in mid July. Dairy-wise everyone’s shut down. Dried-off cows are going onto winter grazing and culls have gone to the freezing works. There are killing delays at the works because of the sudden influx of animals. Our contact says there’s less cow movement in the region than in the past as farmers are trying to keep their herds closer to home.

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

LivestockEye

We create transparency for the industry with these independent, objective reports providing full sale results and informed commentary covering 10 saleyards across NZ that are emailed directly after the sale.

Livestock Insight

Every week, we explain the context of the current market situation, drivers which are impacting the livestock markets and what to expect in the coming week.

Livestock Outlook

For those who want to see and understand forecasting, this monthly report projects farmer operating prices six months ahead and supports these prices with analysis of supply/demand, procurement factors, key export markets and exchange rate effects.

INDEPENDENT • OBJECTIVE TRUSTED • WORTHY Discover how we can help you keep up to date with market conditions.

agrihq.co.nz 0800 85 25 80

2476AGHQ

SI SLAUGHTER LAMB ( $/KG)

DON’T STOP HERE...

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

Record entries of store lambs at Temuka sale Temuka set a new record of just over 10,000 store lambs at the end of April but the last sale for May smashed that with 12,500 store lambs on the books. Very sound and consistent market prices have made the Temuka yards an attractive outlet and about 80% of the yarding was reportedly from the wider Otago area while Chatham Islands lambs also helped to add to the record tally. NORTHLAND Wellsford store cattle • R3 Hereford-Friesian steers were solid at $2.63-$2.74/kg • R2 beef-cross steers, 352-347kg, lifted to $2.51-$2.57/kg • R2 dairy-beef steers, 325-382kg, improved to $2.45-$2.68/kg • Weaner dairy-beef steers, 110-150kg, lifted to $460-$520, as did 200-308kg, $715-$800 • Weaner Hereford-Friesian heifers, 126-183kg, strengthened to $465-$585 A stunning autumn day was enjoyed by those attending WELLSFORD’S store cattle sale last Monday, with improvements throughout reinforced by new faces joining the buying bench and forecasted rain. R2 Hereford-Friesian heifers, 335kg, maintained levels of $2.49/kg, while the balance this section, 295-324kg, varied from $2.07/kg to $2.37/kg. All R2 bulls, 280-331kg, managed steady returns at $2.31-$2.45/kg. Most weaner cattle strengthened and Hereford-Jersey bulls, 217kg, earned $500. Twelve Hereford-cross cows and calves returned $880 per unit.

AUCKLAND Pukekohe sale • Best prime steers made $2.70-$2.80.kg • Boner cows strengthened for $1.72-$1.95/kg • Prime heifers sold for $2.60-$2.74/kg • Bulls earned $2.42-$2.93/kg The market at PUKEKOHE lifted last week with out of town buyers and local buyers competitive. The prime market improved with good demand, and boner cows sold particularly well. Better lines of weaners also lifted; beef steers made $475-$665 while beef heifers were $420-$550.

COUNTIES Tuakau sales • Prime Simmental heifers, 590kg, made $2.88/kg • Store lambs firm at $91-$134 • Heavy prime ewes sold to $221 Sheep prices strengthened at TUAKAU last Monday, with top prime lambs selling to $188, Karl Chitham of Carrfields Livestock reported. Good-mediums earned $152-$157 and lighter primes, $128-$141. Top prime ewes reached $221 and other good ewes fetched $145-$177. Light-medium made $88-$114. Last Wednesday’s prime cattle market was firm. Heavy prime steers traded at $2.78-$2.84/kg, with medium making $2.68-$2.76/kg. Good-medium heifers earned $2.64-$2.79/kg and heavy Friesian cows sold up to $1.93/kg. Medium cows returned $1.67-$1.74/kg and lighter boners, $1.20-$1.54/kg. Thursday’s store cattle sale drew a very small yarding and quality was patchy. Steers in the 400-450kg range held value, making $2.76-$2.94/kg, but there was little of note in the yearling and weaner sections. Hereford-Friesian heifers at 212kg made $625.

WAIKATO Frankton dairy beef weaner fair • Hereford-Friesian steers, 110kg, lifted to $422 • Red Hereford-Friesian steers, 150-198kg, held at $402-$530 • Hereford-Friesian heifers, 145-171kg, lifted to $435-$502 • Red Hereford-Friesian heifers, 109-159kg, improved to $360-$470 • Hereford-Friesian bulls, 141-180kg, strengthened to $500-$580 Throughput dropped slightly at the FRANKTON dairy-beef weaner fair last Tuesday. The market was steady to lifting for most and heifers enjoyed the largest improvements. Hereford-Friesian heifers, 92-123kg, traded at $350-$412, while red Hereford-Friesian, 218kg, held at $540. In the bull pens Hereford-Friesian, 188-210kg, held at $535-$595, as did red Hereford-Friesian, 123-159kg, $400$430. Friesian bulls had mixed results with 187kg returning $405, while lesser types could only muster $275.

Frankton cattle • R3 Hereford Friesian steers, 475-557kg, lifted to $2.62-$2.81/kg • R3 Hereford-Friesian heifers, 476-530kg, improved to $2.72-$2.80/ kg • R2 Hereford-Friesian steers, 335-426kg, lifted to $2.63-$2.68/kg • R2 Hereford-Friesian heifers, 332-456kg, strengthened to $2.61$2.75/kg • Prime Angus steers, 572-715kg, held at $2.74-$2.78/kg A reduced yarding was well supported by local buyers, and the market improved for quality cattle at FRANKTON last Wednesday. R2 traditional steers, 420-467kg, traded at $2.67-$2.68/kg, with Angus heifers, 342-387kg, strengthening to $2.52-$2.66/kg. R1 Traditional and beefcross heifers, 187-220kg, returned $410-$540, while three purebred Hereford bulls, 163kg, managed $465. Prime Hereford-Friesian steers, 562-660kg, improved to $2.72$2.77/kg. Boner cows sold in two bands, with heavier Friesian earning $1.60-$1.79/kg, though lighter types could only muster $1.48-$1.54/kg. A handful of in-calf dairy and dairy beef cows, 467-507kg, managed $765-$865, $1.66$1.71/kg.

BAY OF PLENTY Rangiuru cattle and sheep sale • Prime Hereford-Friesian steers, 700-766kg, sold to $2.94/kg • In-calf boner Friesian cows, 392-426kg, fetched $2.18-$2.27/kg • R3 Hereford-Friesian steers and heifers, 484-527kg, returned $2.73-$2.79/kg • Weaner Angus-cross heifers, 131-216kg, earned $425-$445 • Heavy prime lambs were $154–$158 A last smattering of boner cows came to market at RANGIURU last Tuesday, and most traded at $1.73-$1.83/ kg. Sale results were flat for store cattle, with winter weather on the horizon. A mixed bag of weaners was on offer and 196kg Angus steers sold to $582, and 230kg Hereford-Friesian heifers, $620. Sheep volume was similar to the previous week with 426 sold, although there were more store lambs available than prime. Prime lamb prices dropped across all classes, with the best price at $158.

TARANAKI Taranaki cattle sale • R2 Angus-cross steers, 258kg, sold for $3.06/kg • R2 Hereford-Friesian steers, 406-433kg, made $2.96-$2.97/kg • Shorthorn-cross weaner steers, 200kg, earned $650 • Mixed age vetted-in-calf Hereford cows, 634-697kg, fetched $1345-$1450 Last week’s TARANAKI cattle sale had a small yarding of 348 head. R3 cattle sold reasonably well with Angus bulls making $2.67-$2.87/kg, while Hereford-Friesian steers, 425459kg, fetched $2.90-$3.01/kg. R2 steers were mostly beefcross and quality lines strengthened, while the balance traded at $2.73-$2.86/kg for better types and $2.48-$2.58/kg at the tail end. Heifers were steady to softening with better types at $2.55-$2.64/kg. Prime steers held, while Friesian boner cows lifted to $1.78-$1.83/kg for 506-541kg.

POVERTY BAY Matawhero cattle fair • R2 Angus heifers, 350-385kg, sold for $2.57-$2.65/kg • R2 Hereford bulls, 285kg, made $2.77/kg • Angus weaner steers, 245-255kg, sold well at $900-$920 • Mixed age Angus and Angus-Hereford vetted-in-calf cows, 470kg, were bought for $960 A reasonably small yarding of just over 500 head were penned at last week’s MATAWHERO cattle fair, made up of mostly weaners and cows. Quality weaner steers sold well with exotic, 260-320kg, earning $920-$1000, while lighter, 140-210kg, struggled more at $590-$650. Angus and Simmental-cross heifers, 260-265kg, made decent money at $680-$700. Lesser quality in-calf heifers meant demand was soft in this market.

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Prime Angus steers, 568-624kg, earned $3.03-$3.04/kg • Top lambs all returned $195-$201 • Heavy lambs traded at $144-$169 • Very heavy ewes earned $160-$176.50 • Heavy ewes eased to $148.50-$156 Cattle throughput lifted at STORTFORD LODGE last Monday, with the market solid. Prime steers, 525-674kg, traded at $2.81-$2.90/kg, with prime cows steady at $1.81-$1.86/kg. Sheep numbers declined slightly, with lambs trading at steady to lifting levels. Very heavy ram lambs improved to $165.50-$179, as did good mixed sex to $133-$140. Good ewe lambs held at $137.50-$151. Ewes came back from the highs of last sale, though good to very good lines held at $126-$145.50. Medium types softened to $113-$120, as did light-medium back to $81-$110, with the tail-end returning $65-$76.

MANAWATU Feilding prime cattle and sheep sale • Boner Friesian cows, 544-622kg, eased to $1.75-$1.82/kg • Boner Friesian cows, 451-530kg, also eased to $1.63-$1.74/kg • Prime lambs total tally reached 3970 • Very heavy ewe lambs earned $161-$170 • Very heavy male and mixed sex traded at $160-$187 A range of cattle breeds were present at FEILDING last Monday, as off-type animals made their way to the sale rather than being trucked on Gypsy Day. Low numbers of prime cows were available, with all selling for $1.80-$1.90/ kg. Despite a reduction of 1000 sheep versus the previous week, strong results were posted as the regular buyers competed to a top level of $180-$187 for lambs. 1300 lambs managed prices higher than $170, while a small yarding of ewes varied from $71 to $146. Feilding store • R3 Angus steers, 505-560kg, lifted to $3.13/kg • R2 straight-beef steers, 390-450kg, eased to $2.70-$2.85/kg • R2 straight-beef heifers, 330-360kg, held at $2.50-$2.56/kg • Scanned-in-lamb four-tooth Romney ewes were $191-$214 • Store lambs averaged $132 Mixed quality and a small yarding was reflected in the store cattle market at FEILDING. Quality types still sold well, sometimes strengthening, but lesser, longer-term options were stickier to move. Good R2 steers were mainly $2.85-$2.95/kg, with $2.55-$2.70/kg covering equivalent R2 heifers. A few 240-260kg beef heifers were $630-$690. Nine thousand store lambs went for an average of $132. Early pens of male lambs were mainly $141-$151, though went up to $161. Four pens of ewe lambs went up to $140$146.50, but otherwise $120-$131 was common, excluding the lighter types. There was solid interest in four large pens of in-lamb ewes, though only one pen of SIL four-tooth’s went above $200, the others $171-$191. Smaller, mixed quality pens were often passed in at $110-$135 however. Rongotea • Two-year Hereford-Friesian heifers, 510kg, sold for $2.59/kg • R2 Angus bulls, 397kg, made $2.49/kg • Crossbred boner cows, 532-533kg, earned $1.58-$1.72/kg • Hereford-Friesian bull calves made $100-$210 • Angus-cross heifer calves sold for $155 The main feature at RONGOTEA last week was a large number of in-calf cows and heifers, NZ Farmers Livestock agent Darryl Harwood reported. In-calf Friesian cows made $1075-$1500, while cross bred returned $600-$870, and incalf Friesian heifers, $670-$790. Two-year Hereford-Friesian heifers sold well while Angus-cross and Charolais-cross, 357-405kg, were not as popular. Weaner Friesian bulls, 165216kg, made $410-$520, with Hereford-Friesian, 118-228kg, at $350-$550, and their sisters, 126-231kg, earned $370$550.

CANTERBURY Canterbury Park store cattle sale • R2 Angus steers made up to $3.14/kg • R2 traditional heifers, 393kg, lifted to $2.71/kg • Weaner Angus heifers, 197-227kg, made $590-$700 Last week’s store cattle sale at CANTERBURY PARK had a good number of cattle which was matched by a decent bench of buyers. Good quality traditional cattle sold well, although the rest varied in quality with poorer quality types struggling. It was a similar story in the weaner pens, top quality traditional steers earned $800-$875, while the remainder mostly Hereford-Friesian which sold for $605$760. Bulls were a hard sell with few making it over $500. Canterbury park cattle and sheep • Good store lambs lifted to $116 • Heavy traditional prime steers lifted to $2.70-$2.82/kg • Prime Charolais heifers, 600-610kg, earned $2.73-$2.87/kg

SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019

SOLD: These four-tooth Texel ewes, SIL 146%, made $217 at Stortford Lodge last week. • Boner cows, 503-614kg, made $1.41-$1.53/kg There was a small yarding of prime cattle last week at CANTERBURY PARK. Heavy traditional and exotic steers and heifers sold well although other types were mixed. Tight processing space was reflected in a softening boner cow market. Store lamb numbers dropped to 1480 head, with the market generally holding onto the previous week’s rise in prices. A larger yarding of prime lambs was on site and the market lifted as supply eases heading into winter. The better lambs mostly sold for $170-$216, with mid-range lambs at $140-$169. Coalgate cattle and sheep • Most prime ewes made $110-$164 • Prime steers, 495-515kg, fetched $2.49-$2.58/kg • R2 Angus steers, 439kg, were $2.73/kg • Weaner Hereford-Friesian heifers, 120-174kg, made $215-$310 A small tally of sheep and cattle was available at COALGATE last Thursday, with the regular prime buyers attending but comparatively few store purchasers. Top store lambs made $120-$132, with the balance at $80-$116. Prime lamb prices were steady, with the top line fetching $213. Heavy prime lambs were mainly $165–$189, with the mid-range at $130–$159. Prime ewe numbers were down with the top end earning $180-$190. Weaner heifers dominated the cattle yarding with 69 Hereford-Friesian on sale. Bidding across the yarding was selective with a wide range of per kilogram prices recorded. In the prime cattle pens good quality steers and heifers managed $2.58–$2.66/ kg.

SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • Good beef and exotic-cross steers, 505-550kg, firmed to $2.62$2.75/kg • Boner Friesian cows, 420-785kg, firmed to $1.42-$1.52/kg • A record 12,500 store lambs were penned

• Good to heavy mixed sex lambs improved to $123-$142 • Medium to medium-good mixed sex lambs came back to $105$125 Store lamb throughput records were smashed at TEMUKA last Monday, and around 80% of those offered had travelled from Otago or Chatham Islands. Plenty of buyers were there and short-term lambs sold well, though selective bidding for longer term types meant a market adjustment. Most lambs were mixed sex, and light lines sold for $85-$108. Ewe lamb pricing was consistent with the bulk at $105-$127. Prime lambs firmed to $130-$186, with a few small pens over $200. Top ewes also hit that level, but overall prices eased, varying from $70 to $210. Boner Friesian and Friesian & Friesian-cross cows flooded in as Gypsy Day approaches. Price ranges were very tight with the majority varying from $1.39/kg to $1.52/kg, and lesser types, $1.20/kg. Temuka store cattle sale • R2 traditional steers lifted to $2.73-$2.75/kg • R2 Friesian heifers, 395-401kg, strengthened to $1.90-$1.95/kg • Weaner Charolais-cross and Limousin-cross steers, sold well at $820-$910 Numbers were low at the TEMUKA store cattle sale last week. In general quality cattle had good demand, although lesser types struggled. Good quality R2 Hereford-Friesian steers lifted to $2.62-$2.70/kg. In the heifer pens, traditional lines firmed to $2.50-$2.59/kg, and good beef-cross lifted to $2.42-$2.50/kg. Demand was solid for quality weaners, Hereford-Friesian steers made $610-$630, and heifers above 225kg fetched $600-$705 regardless of breed.

OTAGO Balclutha • Heavy prime lambs made $140-$170 • Medium prime lambs made $120-$130 • Top store lambs made $110-$118

• Medium store lambs sold for $90-$105 At last week’s BALCLUTHA sale there was a reasonable yarding of prime lambs. Including plenty of heavy types which lifted the market and even light lambs exceeded $110. Prime ewes were on par with the previous week, with heavy at $150-$170. Over 2000 store lambs sold well with some new buyers in the market.

SOUTHLAND Lorneville • Prime heifers above 500kg made $2.45/kg • R2 Angus-cross steers, 380kg made $2.74/kg • Prime two-tooth ewes earned $171 • Top store lambs sold for $120-$128 A medium yarding of prime cattle at LORNEVILLE last week was mostly cows which sold on a firm market, with those above 500kg earning $1.45-$1.58/kg, and 450-500kg at $1.40-$1.50/kg. There was a small volume of store cattle, and Angus-cross steers sold reasonably well. Hereford-cross heifers, 375-420kg earned $2.33-$2.45/kg, while Friesian bulls, 502kg, made $2.15/kg. Prime lambs ranged from $130-$163, while the top end of prime ewes sold for $150$191. Charlton sheep sale • Heavy prime lambs made $160 • Heavy prime ewes earned $150 • Local trade rams sold for $100 • Top store lambs fetched $130 • Mixed age breeding ewes returned $184 Heavy prime lambs softened slightly at CHARLTON last week, although mediums and lights strengthened to $130$140 and $115-$125, respectively. Prime ewes also softened for the top end, with the balance steady. There was a large yarding of good quality store lambs that sold to strong demand, lifting the market a few dollars with even light lambs exceeding $100.

Markets

56 FARMERS WEEKLY – farmersweekly.co.nz – June 3, 2019 NI SLAUGHTER LAMB

NI SLAUGHTER COW

SI SLAUGHTER MUTTON

($/KG)

BONER FRIESIAN COWS, 420-615KG, AT TEMUKA

($/KG)

7.60

4.10

5.05

1.43

high $139-$157 lights Good to heavy

Focus on calving ease

NSURING his clients get good quality live calves on the ground is the name of the game for Rangitikei bull breeder Ed Sherriff. Sherriff, who operates Pine Park Angus stud near Marton, is holding the stud’s 18th annual on-farm sale on Thursday. He is pleased with the quality of the 34 bulls for sale this year. They are looking good, especially considering the last two summers have been pretty tough with conditions in Rangitikei very dry. At Pine Park the focus is on breeding moderate framed, meaty, compact bulls. Sherriff is a big believer in calving ease and does not try to breed a big cow. “It’s a very important economic trait, getting a live calf on the ground.” The aim is for good 200 to 400-day growth EBVs while getting as much intramuscular fat into the herd as possible without compromising other traits. “We try to be at the high end of the market.” At last year’s sale 33 bulls sold for an average of about $7500. That was a good result and Sherriff hopes for something similar this year. Pine Park sales are well supported by a fairly regular clientele from around the lower North Island, which he views as an endorsement of the stud’s approach. Angus is a proven dual-purpose animal, he said. They are good hill country foragers and very fertile. They have it over exotics in that respect, especially during tough years. “At the end of the day they produce a high-quality product.” His cattle have to compete with sheep on-farm for feed so they are proven foragers. Pine Park is one of 62 studs around the country that has partnered with AngusPure and Sherriff is pleased with the arrangement. He believes in what the programme is doing, given it’s based around the consumer and the eating quality of the meat. Recently Pine Park paid $30,000 for

GOAL: Ed Sherriff wants to get as much intramuscular fat into his herd as he can without compromising other traits.

a Waitangi Angus bull at the national Angus bull sale in Palmerston North. Sherriff is happy with the purchase because it’s the type of bull that suits his operation, one showing good growth, calving ease and carcase data with plenty of IMF. The Pine Park sale is on June 6 at 312 Tutaenui Road, Marton, at 11.30am.

It’s a very important economic trait, getting a live calf on the ground.

700 Ed Sherriff Farmer

cryptorchid and ram lambs at Stortford Lodge

$2.65-$2.74/kg R2 Hereford-Friesian heifers, 365-450kg, at Frankton

ACROSS THE RAILS SUZ BREMNER

Farm to forest conversion bring out more breeding ewes A REALLY pressing issue emerging in the last few months centres on Government incentives to plant trees – the Billion Trees plan as politicians like to call it. At the farming front we are seeing a rush of mainly high-country sheep and beef farms in the North Island snapped up for conversion now rule changes have made it easier for foreigners to invest in land for forestry. I won’t delve too deep into the politics but at the stock selling end we have seen a spike in breeding ewes hitting the market as they make way for trees. Some of these breeding ewes are generations worth of breeding and it can’t be easy for farmers to see their ewes heading out their farm gate but the Government’s decision to support forestry planting means those looking to farm the land are being priced out of the market. Even for places that were not on the market the opportunity is just too attractive to turn down. Good volumes of breeding ewes for sale have become a rarity in recent years as national flock numbers fall but the farm sales mean there has been a resurgence this year, with quite literally thousands being sold in the paddocks on the big hill-country properties and more entries heading to the yards. Luckily, that increase has come at a time when sheep farming is in a good place and buyers are confidently going to market with good budgets. Strong prices for cull ewe and a good outlook for lambs mean a few extra players have entered the market. That means most of the extra ewes are being bought for breeding, which does come with a sigh of relief because there won’t be a significant fall in breeding ewe numbers. I do, however, think if the sheep meat industry was not so positive we would be looking at a very different scenario. Across both the paddock and auction sales it appears $190 a head is a comfortable level. At auction five-year Romney ewes to terminal sires, with scanning percentages commonly at 160%200%, are easily making $180-$205 while reports of paddock sales for three to five-year ewes have hovered around $190. suz.bremner@globalhq.co.nz

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YOUR GO -TO GUIDE FOR REGULAR, INFORMATIVE COMMENTARY ON KEY MATTERS AFFECTING THOSE LIVING AND WORKING IN RURAL NEW ZEALAND. Rural Insight

p g e n i o u p l l a e V AND

As a full-service real estate company founded on family values – and with members of the Bayley family still at the helm – Bayleys knows the wider value of surrounding yourselves with good people.

sheep farming sector which is elevating pastoral farming in the eyes of the nation. It also looks at the primary sector’s contribution to New Zealand’s wealth creation as global demand for quality, high-end food products grows, and investigates New Zealand’s trade relationship with China.

People who share ideals, appreciate the importance of hard work and fair reward, and understand that teamwork makes almost anything achievable.

Rural Insight also hones in on the changing lending environment in the rural sector and the implications this has for farm debt levels, peels back New Zealand’s potential to grow bananas and takes a wider look at the burgeoning horticultural sector – along with other insightful topics.

New Zealand’s rural sector in all of its guises can be demanding, often frustrating, sometimes unpredictable – yet ultimately, rewarding when there’s a solid team batting for success. In recognition of the importance of good people in the rural sector, Bayleys is sponsoring the “People in the Primary Sector” award in The Ballance Farm Environment Awards.

Bayleys’ rural sales team welcomes the conversations that Rural Insight opens up. The team is highly-invested in New Zealand’s rural communities and the rural blood runs deep. All of our country sales agents and managers have strong connections with the land.

It’s important to help identify and develop future leaders in the farming sector while acknowledging those that came before them and those who continue to back their endeavours.

Receiving regular Rural Insight updates direct to your inbox is easy. Head to bayleys.co.nz/rural-insight and sign up. We’ll keep you in the loop with trends and happenings in the dairy, sheep and beef, forestry, viticulture, horticulture and lifestyle property sectors.

Having the right people is the path to sustainability and Bayleys is right onboard with that.

Bayleys is committed to championing the rural sector and we look forward to talking with you.

All sectors of the rural market are experiencing positive growth and revenue returns. The future looks bright, although banking headwinds may be a barrier for some and succession planning is still a huge determinant of wealth creation and farm continuity down the line. Lifestyle property is still a growing market and one that Bayleys is proactive in right around the country.

Duncan Ross Bayleys National Director Rural

Bayleys Rural Insight brings to the forefront topics and issues that are close to our rural clients’ hearts. As well as highlighting Bayleys’ commitment to the Ballance Farm Awards, this latest compilation features an overview of the revitalised

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106

1,257

$1,712,659,743 *For the period 1st April 2018 - 31st March 2019.

Rural Insight

SOLD

4283 State Highway 12 and Hood Road, Aranga, Northland

SOLD

Woodleigh Road, Naike, Waikato

SOLD

414F Dalbeth Road, Hamurana, Bay of Plenty

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680 Whitford Maraetai Road, Whitford, Auckland

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34 Te Poi Road, Matamata, Waikato

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166 Airstrip Road, Pikowai, Bay of Plenty

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86 Milford Park Drive, Paengaroa, Bay of Plenty

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110 Horoi Road, Eltham, Taranaki

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1001 Tunanui Road, Opoutama, Mahia, Hawke’s Bay

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Boundary lines are indicative only

1096 Ngapaeruru Road, Te Uri, Hawke’s Bay

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91 Loop Line, Masterton, Wairarapa

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545 Main Drain Road, Ohoka, Canterbury

386 and 397 Makirikiri Valley Road, Upokongaro, Whanganui

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82 Bell Road West, Feilding, Manawatu

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354 Bridge Valley Road, Wakefield, Tasman

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263 State Highway 63, Renwick, Marlborough

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272 Orchards Road, Ashburton, Canterbury

100 Collis Road, Wyndham, Southland

CONTENTS Sheep meat hitting record returns......................................................................4,5

New Zealand food repositions as China grows wealthier ..... 14,15

Organics get big tick for standards .....................................................................6,7

People's role recognised in sustainable journeys......................... 16,17

Orchard development brings options ...............................................................8,9

Sunny side up for rural sector's real value .......................................... 18,19

Tropical fruit options bring exciting opportunities........................ 10,11

Forestry partnership provides growth opportunities ................. 20,21

Farm finacing gets tougher................................................................................. 12,13

Farm environment awards open networks for farmers ......... 22,23 Rural Insight

SHEEP MEAT HITTING

10 years ago the sheep farming sector in New Zealand was facing some tough assaults upon its claim as one of the country’s most important export sectors. The strong growth in dairying was knocking sheep farms out from some of the country’s most traditional sheep farming areas like King Country and Southland, while exceptionally low returns were threatening the viability of many smaller dry stock units struggling to stay afloat.

ast forward 10 years and the sector can claim to be one of the most sustainably profitable contributors to the pastoral sector. Sale yards around the country are testimony to the level of optimism the sector is experiencing. Buoyed by almost universally good grass growth throughout the country and a good run through lambing, store lambs flew out of sale yard gates at record price levels after last spring, boosted by good prospects for grass supplies into summer. Heading into winter lambs are averaging $7.50 a kg, well up on last year’s $7.20/kg and with prospects this will stay firm heading into spring. This is in part because at a consumer market level supplies remain tight through all New Zealand’s key markets, thanks in part to the consistent decline in sheep numbers this country has experienced over the past 10 years. Sheep numbers peaked in 1982 with a total of 70 million sheep,

Rural Insight

but the national flock has been in decline ever since, with today’s numbers at 27.3 million. Productivity gains have been impressive, with the sector generating almost the same tonnage of sheep meat today off that drastically reduced number, thanks to farmers’ efforts to lift lambing rates to average 129% last season.

Productivity gains have been impressive, with the sector generating almost the same tonnage of sheep meat today with 27.3 million compared to 70 million in 1982.

has been in the North Island, down 3.2%, while the South Island actually rose by 1.7% Federated Farmers meat and fibre chairman Miles Anderson said the returns had been a long time coming, but are now where they need to be, and it is a good time to be a sheep farmer.

Federated Farmers meat and fibre chairman Miles Anderson said the returns had been a long time coming, but are now where they need to be, and it is a good time to be a sheep farmer. Confidence is the strongest since 2011 and his one caution is that prices remain sustainable. “I just hope we don’t gouge prices and put people off buying lamb,” he said. Bayleys Southland agent Hayden McCallum reports solid interest in high quality established sheep operations in Southland, with buyer expectations around the $1,000 a stock unit price range. He settled a property at $950 a stock unit, leaving sufficient in the buyer’s pocket to reinvest back into some upgrades needed around the property.

Last year market analysts AgriHQ reported it had been many years since supply and demand were so closely pitched, despite the exchange rate remaining a thorn in exporters’ side. It also came as New Zealand’s largest competitor Australia was battling to supply markets, with drought and feed issues continuing to plague key supply regions. The Rabobank May report on sheep meat returns and their prospects revealed solid growth for exports for New Zealand lamb exports from October through to March, up 6% year on year. The ongoing strong returns are expected to maintain healthy farm gate pricing for the remainder of the season.

Hayden also finalised a sale in Southland on a 211ha sheep and beef property for $2.7 million which included 16ha of forestry on the property. “We have farmers reporting earnings after interest and tax, in the best cases they are earning 10%, a very good cash return.” The greatest risk facing the sheepmeat sector at present may be that its numbers continue to fall too far. A recent Beef + Lamb NZ report points out this year’s lamb slaughter is the lowest since 2011, and despite exception productivity gains increase in breeding numbers are now needed to maintain the sector’s critical mass.

Rabobank animal proteins analyst Blake Holgate said despite some consumer resistance to higher prices and the possible disruption of Brexit in the traditional markets of United Kingdom and Europe, China and the United States are likely to underpin continuing strong prices. New Zealand’s success in securing high sheepmeat prices has also been boosted by a growth in demand for traditionally lower value cuts, including flaps and bellies. Chinese demand for these items has them used in traditional hot pot dishes moving the items well up beyond traditional commodity price levels. New Zealand also experienced its lowest lamb kill on record, despite a record high lambing season. The average lambing percent was up 1.7 percentage points at 129%, well above the 10 year average of 121.4%. The greatest decline in lamb numbers Rural Insight

ORGANICS GETS BIG TICK FOR STANDARDS

The New Zealand organic farming sector received a welcome validation late last year, thanks to the recent agreement to set a national standard for the sector. While it comes several years after most of the rest of the world, a leading organic supporter says the move is better late than never.

rendan Hoare, the past chief executive of Organics Aotearoa has been campaigning for New Zealand to set a national standard for defining organic products for many years. He said the move is reassuring, finally bringing New Zealand up to the same level as the rest of the world.

The move to set a national standard for the organic farming sector is reassuring, bringing New Zealand up to the same level as the rest of the world. “New Zealand was one of only two top 25 organic markets in the world to have a voluntary rather than compulsory standards, this represents a stick in the ground for the industry, but it should not be where we stop.” The move to catch up with the rest of the world comes as the organic food market experiences one of the fastest growth rates of any food sector internationally. What was once the domain of wealthy European and US consumers is now part of the food experience for Chinese and Asian consumers concerned over their food health safety, and with the finances to shop accordingly.

Rural Insight

The Organics Aotearoa New Zealand bi-annual market report released in the middle of 2018-identified consumers now seeking ethical, sustainable and authentic natural products that are not only good for them, but good for the planet. Chairman of Organics Aotearoa NZ Doug Voss said New Zealand was well placed to ride this wave and has the reputation, production and export capabilities to meet demand domestically and internationally for organic food. “It is up to producers, marketers, retailers and policy makers to act on the market signals.” The 2018 report revealed the organics sector had grown twice as fast as conventional food products, up 8.8% to $245 million in New Zealand, with eight out of 10 New Zealand consumers buying organic fresh, frozen or packaged food and beauty products at least once a fortnight. Exports now exceed domestic sales, up at $355 million or a 42% increase since 2015. The good news for New Zealand producers is the demand increase is in areas New Zealand is particularly good at – fruit and vegetable production and dairy in a Chinese market that has experienced 45% compounded annual organic growth over the past five years. But Brendan Hoare had a caution for the sector, and as much as he welcomed the standards, he equated them to New Zealand getting its “L” plates while the rest of the world was racing ahead.

“This is really just a standard for production and for retail.” He said many main markets have expected this standard for years as an entry base point, and were now wanting even higher standards of organic accreditation. To be simply accredited as “organic” was often not enough, with expectations around recycling, sustainability and even worker welfare standards becoming more common. There is also a call for more full cost food accounting by customers wanting to better understand where the full cost of food production falls. Hoare says such moves mean New Zealand organics, with its frequent reliance upon pasture based, free range systems is even better positioned than many to take advantage of these developing trends. Organic farmland has increased 15% between 2015 and 2016, with 58 million hectares under organic systems. New Zealand accounts for a tiny portion of this, covering almost 90,000ha, up 50% and driven mainly by an increase in organic dairy farms.

Exports of organic fresh fruit and vegetables has increased 26% over the past two years, with dairy, meat and wool up 45%. Brendan Hoare said the challenge for New Zealand’s organic farmers and producers would be to make the next broad step to a more holistic approach to food production, where organics is part of the formula, but it also includes a strong provenance story and combines other sustainability aspects like recyclable packaging into the product’s marketing.

As farmers grapple with the challenges of ever tightening nutrient loss limits, organics represents a sound option to consider. “The challenge is for New Zealand to now develop a common strategy as a country and it’s time to now have that conversation.” Bayleys national rural director Duncan Ross said as farmers grapple with the challenges of ever tightening nutrient loss limits, organics represented a sound option to consider, with premiums that reflected the additional work and lowered production that often accompanied the practice. “Our agents report more buyers spending time doing due diligence on a farm’s nutrient footprint, and looking at their options. “Realistically organics is one of those now possible across the entire pastoral and cropping spectrum. All farmers want to leave the land in a better state than they found it- for some organics offers a way to achieve that, and make an economic return in a sustainable fashion.” Rural Insight

ORCHARD DEVELOPMENT

BRINGS OPTIONS The horticultural sector has touched on golden times over the past five years as the value of the sector’s exports has surged by over 40% in five short years to 2017 - prospects are that growth will continue for years yet as the world clamours for quality fresh produce.

he increase in value makes horticulture the fourth leg of New Zealand’s primary sector, totalling $5.6 billion in exports for 2017 and chasing down the meat-wool sector which earns $8.7 billion. The key crops driving the sector’s growth have been kiwifruit and more recently avocados, with kiwifruit accounting for over $1.6 billion of that value, similar to wine exports and leaping ahead in the past four years post-Psa. However the sector is also experiencing valuable additional growth from the likes of apples, cherries and berry fruit which as a crop have surged 60% in the same period. Even flower and seed exports are now worth over $135 million a year in export earnings, greater than total vegetable export value. Along with the growth in export volume and value has come greater

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interest from banks, equity partners and existing orchardists in expanding or investing in the sector, with strong land prices in regions like Bay of Plenty reflecting that interest.

Along with the 40% growth in export volume and value over the past 5 years, there is greater interest from banks, equity partners and existing orchardists in expanding or investing in the sector.

A Bayleys auction for a prime orchard near Te Puke late last year set a new record of just over a million dollars a hectare for a SunGold kiwifruit orchard. With this lift in land values investors have started seeking out opportunities beyond the traditional growing areas where prices are particularly buoyant. This has also been prompted by the increasing variety of horticultural crops showing a capacity for good growth and crop quality beyond those traditional areas. SunGold kiwifruit is opening up land use options for landowners well beyond the traditional Te Puke golden zone, with iwi and farmers finding opportunity to grow the fruit in the eastern Bay of Plenty, Northland and even Hawke’s Bay regions. Similarly an intensive breed development programme means cherries are now finding niche growing spots through a far broader catchment in the Otago region, with cheaper land options in those non-traditional growing areas making them a viable investment choice. At the other end of the country Northland is experiencing heightened attention from potential investors both within the region and beyond, drawn to the region’s appealing sub-tropical climate, varied volcanic and sandy soil types, and realistic land prices that make orchard conversion a realistic option. Vinni Bhula, Bayleys Whangarei rural agent has noticed a surge of interest in the area beyond the traditional pastoral uses for rural properties he has been marketing. “We have seen a number of families look at options where they are considering quitting the family farm, and having the parents invest into a smaller, manageable horticultural block that continues to give a semi-retired couple some responsibilities and income, but is significantly smaller scale.” As a commercial orchard owner, Vinni has helped advise a number of investors and orchard operators into quality blocks within the region, and he is excited by the opportunities still untapped through the Northland region. “Avocados are very much on people’s minds at present as a very viable land use option in this part of the country, and for good reason. “The marketing efforts by Avocado NZ to get the fruit into China will start to pay off in coming years, along with efforts through the rest

of Asia which is showing steady growth. This will only be reinforced by the research that is showing New Zealand avocados actually have higher nutritional value than those from competing countries.”

The marketing efforts by Avocado NZ to get the fruit into China will start to pay off in coming years.

The fruit’s ability to now be sold into China provides a valuable buffer to the Australian market’s varying demand, in turn influenced by what crop performance has been like in that country. The relatively lower bare land value of properties in Northland has drawn interest from orchardists committed in more expensive areas. “Values can be $70,000-$100,000 a hectare, which offers real potential to invest into the infrastructure and planted crops, keeping in mind there is usually a few years before that land will start to give you a return, post development.” His portfolio has included a 23ha bare land property near Maungatapere split off from a traditional family farm that highlights the type of potential in Northland. “With its consistently fertile well drained soil, access to water and good flat contour, it’s the sort of block that investors, syndicates and individual growers can realistically take to their bank and prove what a viable return it is capable of delivering.” The region is starting to develop a critical mass of growers and expertise, with a number of larger corporate orchard investors anchoring the Northland volumes around the Houhora district in particular. “There is a lot of confidence up here about where horticulture can take the region, and we are seeing some serious investment putting skin in the game, which is a great thing for Northland.”

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Tropical Fruit OPTIONS BRING EXCITING OPPORTUNITES

Bananas, so often associated with warm tropical climates on the equator may prove to be another cropping opportunity for enterprising horticulturalists from Northland to Gisborne.

ew Zealanders have an appetite for the yellow fruit, chomping through a whopping 18kg per capita a year, about $140 million worth that puts this country at top of the global list for banana consumption. But the worldâ&#x20AC;&#x2122;s annual 145 million tonne banana crops are also under siege. After years of staving off various diseases and pests with an assortment of chemical controls, crops around the world are succumbing to a Fusarium disease, known as Tropical race 4. The fungal infection roots the cropâ&#x20AC;&#x2122;s roots, spreading up through the leaf tissue causing it to wilt and die. Its spores linger in the plantation soil and it brings the risk of killing 80% of bananas grown every year.

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But just as global warming is being identified as the biggest threat facing the planet, it is also bringing some unexpected opportunities in terms of what crops can be grown where. In the case of New Zealand, bananas are one of those opportunities.

Global warming is bringing some unexpected opportunities in terms of what crops can be grown in New Zealand - bananas are one of those opportunities.

The semi-tropical climate of Northland is proving an excellent hub for a band of enthusiastic and increasingly commercially focused banana growers, headed up through the Tropical Fruit Growers of NZ group.

“We have growers producing bananas in Invercargill, admittedly under tunnel shelter, but there are growers throughout Northland, Bay of Plenty, down to Gisborne all producing good crops.”

Farming on a 40ha property near Parua Bay on Northland’s east coast near Whangarei Hugh Rose, the head of Tropical Fruit Growers of NZ has a veritable fruit bowl of tropical produce growing. Varied varieties of exotic fruit compete for visitors’ tastebuds, ranging from pineapples to bananas, dragon fruit, pawpaw and even sugar cane.

As a highly water efficient, funnel shaped plant they do not require much irrigation, grow well on most soil types and are tolerant to many pests and diseases.

He classes bananas as the easiest crop in the world to grow, benefitting from New Zealand’s low disease and pest levels compared to the tropics, and capable of producing fruit almost constantly through the year once temperatures exceed 14C. With 17 varieties of the popular fruit growing, there is increasing consumer interest in the New Zealand sourced bananas that have a ready market at about $8 a kg through Whangarei’s farmers’ market. “And with the number of enthusiasts we now have on board, there should be enough bananas growing now for Northland to be selfsufficient in a couple of years.” His calculations on potential earnings would make most horticulturalists sit up and take notice. His calculations per hectare with 1,500 plants a hectare in the ground could easily result in over 15,000kg of bananas a year. Even at $2 a kg this returns $30,000 a hectare.

Potential earnings would make most horticulturists sit up and take notice. With 1,500 plans a hectare in the ground, it could easily result in over 15,000kg of bananas a year. Even at $2 a kg this returns $30,000 a hectare.

And the crop is not necessarily dependent upon traditional views of what sort of climate the fruit usually grows in.

The fruit also sits well alongside traditional pastoral activities like dairying. “Dairy effluent is high in nitrogen and phosphate, exactly what bananas love, and the plant just sucks up those nutrients, making it an ideal crop alongside a dairy operation.” And a source of cattle feed, with all of the plant edible to stock. Pineapples, coffee and a little known Peruvian fruit called lucuma all have potential in the sub-tropical regions throughout New Zealand. Rose is excited by the growing level of experimentation by enthusiasts and the knowledge that is being acquired by them. “Globally consumers’ tastes are changing, and we have the ability to grow many of these products, saving on imports and food miles, generating new high value horticultural sectors along the way” Rose bought his property through Bayleys after looking for the ideal lifestyle block, and has found over the past two years it has proven highly suited to his intensive fruit growing trials. “It was a bit run down when we took it over, but had good under ground springs that were important for my wife Pauline who has been developing Lotus water gardens.” He anticipates the opportunities that exist in coastal areas around New Zealand for such niche crops, capable of earning good returns of small scale land titles. Bayleys Whangarei horticulture and lifestyle specialist Vinni Bhula said the appealing climate and supply of smaller scale lifestyle blocks available throughout Northland set the region up well to develop some exciting new produce sectors. “I often get people asking me what else they could do with a small block, other than avocados or kiwifruit. The returns from bananas mean a block has the potential to deliver similar income to a Green kiwifruit, so it’s an appealing option to consider.” He said there was a growing demand for niche crops coming from farmers markets and restaurants that made such options more viable than ever.

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FARM FINACING GETS

Pressure is on farmers who have significant farm debt to start paying it down, while those seeking debt to purchase a new farm or expand their existing one are facing greater budget scrutiny and equity requirements from their bankers.

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he shift in tone for farm lending has been a gradual one in recent years, coming in part from the greater capital requirements placed on banks after the 2008 financial crisis, and the heightened volatility experienced in rural commodity returns since then. Many conversations between farmers and bank managers now kick off with closer scrutiny over that farm business’s ability to repay not only interest, but also debt, and over how long that will be taking place. Part of the greater scrutiny has come from ongoing concern at the Reserve Bank about the exposure of some parts of the rural sector to debt, with dairy in particular being repeatedly highlighted by the bank. Of particular concern has been the 20% of dairy farmers identified by DairyNZ, or about 2,000 who have 70% debt over their assets. This compares to the industry average of 49% debt to asset ratio, with the average industry bank debt being $22 a kg milksolids. Lincoln University professor Keith Woodford has been following the sector’s debt level with some concern. He traces the surge in dairy debt back to the period of rapid expansion in the industry from 2003 to 2009, leading to an overall industry debt level of $20.81 a kg milk solids. Some tough years between then and 2016 has meant some farms have also had to accrue even more debt to get through those periods, and are now under pressure to repay what was effectively short term lending. On an industry level there is concern accessing capital, and being able to pay it back, are major constraints to the sector’s ability to meet the burgeoning global demand for high value protein products.

On an industry level there is concern accessing capital, and being able to pay it back, are major constraints to the sector’s ability to meet the burgeoning global demand for high value protein products. ANZ’s “Greener Pastures” report in 2014 estimated the shortfall in capital may be as great as $110 billion by 2050. Bayleys national rural director Duncan Ross said the sector is facing a combination of challenges that will prompt farming businesses to look further afield at their funding options. Average farmer age is growing, while family expectations for

But he says it is not entirely all doom and gloom when it comes to financing options. Banks are still lending in a competitive banking environment, subject to greater scrutiny and equity expectations, and the cost of that finance remains historically low. “Equity partnerships are one option, but there are also opportunities for investors to buy into farms through agricultural investment companies that employ skilled management on the properties.” Enabling management to be part of the investment in the farm is also proving a more popular option for farming enterprises seeking succession solutions, or wishing to exit day to day operations. Rural accountant and practice manager Christine Craig of Rural Accountants said in some regions alternative land uses has helped keep or even lift farm values, providing some useful head room in equity valuations, and provide potential buyers with alternative land uses. She confirmed there remains strong competition among banks for good farming clients, and interest is there in clients able to prove strong cashflow, lower existing debt levels and sound equity.

There remains strong competition among banks for good farming clients, and interest is there in clients able to prove strong cashflow, lower existing debt levels and sound equity.

equitable settling on the family farm are making succession transition more challenging than it was for the last generation. And the next generation of farmers face higher operating costs through environmental compliance and standards well beyond what the last generation dealt with.

Vendor financing was also proving an increasingly popular option, with farmers selling out enjoying peace of mind leaving some money in the property knowing the manager also has funds invested in the business. Rural Insight

NEW ZEALAND FOOD REPOSITIONS AS CHINA GROWS WEALTHIER When New Zealand signed its free trade agreement (FTA) with China in 2008 exports to that country totalled $2.1 billion and by year end September last year were worth $16.6 billion, almost twice what is sold to the United States.

he huge surge in exports post FTA to China represents one of the largest shifts in trade focus New Zealand has ever witnessed, and shows little sign of abating as the Chinese government lifts almost 10 million people a year out of poverty.

Dairying in particular is witnessing a major effort to push small scale operators out of production consolidating into large 5,000 cow-plus operations running United States style operations, milking three times a day with complete ration controlled indoor systems.

New Zealand’s primary sector has undoubtedly been one of the biggest winners from this concerted effort to improve the lives of Chinese people as the nation rockets towards claiming a middle class totalling almost 500 million.

Processor ownership of dairy farms, by companies including Yili and Mengniu has assured a “two step” integration from cow to final consumer, as the government aims to minimise food safety risks after crises including the melamine disaster in 2008.

In the early days of the FTA dairy was one of the biggest winners for export demand as Chinese strove to secure safe, high volume supply of the protein source vital for products including infant formula. It provided New Zealand with a valuable high volume foothold in the market, backed by its reputation as a safe food source.

The result is a surge in the number of quality domestic brands for consumers to choose from, packaged and presented to easily rival any overseas brand for choice and quality.

Today the Chinese market is more sophisticated and Chinese authorities have made efforts to lift the standard of their own domestic supply through greater regulations on food safety, and consolidation of farming operations into larger scaled high volume operations.

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Rising choices and quality products are linked through purchasing apps to a population of one billion smartphone users. The food industry is now a rapidly changing market where 40% of purchases are made on line, well ahead of New Zealand at under 10%. But despite the choice and intensity of the market, New Zealand food exporters remain optimistic about the opportunities this increasingly sophisticated market offers.

SunGold was proving a favourite with Chinese consumers who identify with the fruit, are familiar with it, know it is healthy for them and enjoy the taste profile it has. Meantime the Green variety has a strong following among the growing band of urban fitness seekers buying it for its high vitamin C level, health benefits and lower price. Horticulture continues to establish a place in high end Chinese supermarkets, with Rockit apples packaged in their trademark rocket pack recently gaining space in supermarkets. The apples hold strong appeal to Chinese mums seeking snack sized fruit that meet their expectation of high quality, nutritive and convenient food source. The range of horticultural products offered in China from New Zealand continues to expand, with avocados making their debut this season, and New Zealand cherries finding a foothold in the high-end market.

The range of horticultural products offered in China from New Zealand continues to expand, with avocados making their debut this season, and New Zealand cherries finding a foothold in the high-end market.

New Zealand food exporters remain optimistic about the opportunities this increasingly sophisticated market offers. Zespri is anticipating another strong year of sales in the country as this year’s harvest kicks off, with China now accounting for 15% of its sales. As more SunGold orchards come on stream at the rate of 700ha of additional orchards a year, much of the expected growth will come from the SunGold variety and exported to China. Ivan Kinsella, Zespri China’s corporate affairs manager said the marketing company now had integrated control over importation of the fruit, ensuing rapid transit across Chinese wharves on arrival, and closer relationships with key account clients.

As infrastructure has improved, along with consumers’ expectation of same day, or in some cases one hour delivery, so too has demand for fresh products over the traditional frozen or dried. New Zealand based Chinese owned companies Oravida and Theland have established valuable shelf space in high end supermarkets including Alibaba’s new supermarket Hema and Ole’ with air freighted New Zealand milk. Selling for up to NZ$15 a litre, a regular air freight service has Theland selling 40,000 litres a week into the large urban markets, with plans to expand that to 100,000 litres. Bayleys national rural director Duncan Ross said New Zealand’s primary sector is starting to establish itself as a high-end food bowl for China, meeting the needs of a population that has become more discerning and wealthy in a relatively short time. “This should give confidence to anyone seeking to invest in the primary sector, and particularly in pastoral or horticultural land that the investment is underpinned with strong market prospects. “It is something we are seeing reflected in the good prices being paid for well-located pastoral land and productive, well managed orchard operations.”

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' e s l R p o o le e P SUS TAINABLE JOURNE YS RECOGNISED IN

The Ballance Farm Environment Awards have long been a respected, exciting highlight in the rural calendar, with each yearâ&#x20AC;&#x2122;s award winners doing much to showcase the best this country has to offer in farming talent that recognises and respects the environment they depend upon.

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his year the awards have a welcome addition with national realtor Bayleys sponsoring a “People in the Primary Sector” award. Bayleys national rural director Duncan Ross said the company’s move to sponsor the people category in the awards is a timely one, given the focus within the agri-sector on recruiting, keeping and advancing young talent.

Sponsoring the people category in the awards is a timely one, given the focus within the agrisector on recruiting, keeping and advancing young talent.

The award aims to recognise those employers who are taking as much care with their staff as their environment, fostering talent and encouraging young people to engage with farming and the environment.

this year’s competition highlights the diversity of farming and orcharding operations qualifying for judging. “The interest we have seen in this year’s competition in particular highlights the diversity of farmers and growers keen to get feedback to improve the sustainability of their business.” The contrast in entrants this year is highlighted with the likes of Featherston sheep and beef farm Palliser Ridge claiming the regional and Bayleys People award for Wellington. At the other end of the island a Whangarei family claimed that region’s top prize and also the Bayleys People award from their 20ha berry and kiwifruit operation. “There is a remarkable contrast between all the operations who have won to date, but in many cases the thing that ties them together is this ability to combine people into their environmental focus, taking them along on the journey is the true proof of sustainability," says Ryan. Duncan Ross said environmental awareness is also becoming a draw card for attracting young staff to work on the land.

Bayleys made an initial step last year by sponsoring this category in the Canterbury section of the awards. David Hislop and his wife Brenda claimed the top prize with their success on their 440ha North Canterbury dairy unit. They also ultimately claimed the regional winner title for the competition. “The decision to expand from there to offer an award across the entire country is a natural one for Bayleys, given our national coverage, and the importance we believe needs to be placed on fostering talent in the New Zealand primary sector,” says Duncan Ross, Bayleys national rural director. This year’s Ballance Farm Environment Award announcements are well underway, with the most talented farmers gaining recognition for their sensitivity and sustainable approach to managing the environment they are so dependent upon. “Given the average size of almost all categories of farms and orchards are increasing, we could see the importance of being able to engage staff on the sustainable vision the owners may have for that farm.”

We want to be part of encouraging young people to work on the land, all the while recognising those who are walking the walk for the environment and their staff.

“Anything we can do to encourage that, and to recognise those who are walking the walk for the environment and their staff, is something we want to be part of,” says Ross.

By early April of the seven regional winners announced five had also claimed the Bayleys People award. Duncan Ross said given the scale of the provincial winners’ operations, it was understandable those winners should be recognised for the efforts they have made to promote a good working environment for their staff. “If you can’t take the people on your farm business along with you, then all the vision in the world will not come to much when you try to make it real and those people are not on board with it,” says Ross. Similarly the farmers have also proven themselves highly capable business people, managing their environmental constraints and delivering a sustainable profit from their operations. James Ryan, general manager the New Zealand Farm Environment Trust, the body overseeing the competition, said Rural Insight

Sunny side up for rural sector's

REAL VA The primary sector’s contribution to New Zealand’s wealth creation has continued to remain strong as global demand for quality, high end food products keeps growing.

hether it is lamb loins for China, Manuka honey for the United Kingdom or chilled grass-fed Wagyu to California, New Zealand producers continue to punch above their weight on the world stage as another farming season approaches its close. Running an eye over MPI’s definitive Situation and Outlook for Primary Industries report for March is a good reminder about how healthy the primary sector is. Expectations are for dairy revenue to lift by 5.5% on last year’s healthy returns, to total a near record $17.7 billion for the year ended June. That has been helped by a sustained period of relatively consistent weather aiding grass growth, and helping keep production levels up. But there has also been a welcome turnaround in key dairy commodity prices at the end of last year. Similarly, meat and wool income is expected to be 6% up on last year, topping $10 billion in export earnings this year, driven largely by the higher prices being paid for sheep-meat. China is exhibiting an almost insatiable demand for New Zealand

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lamb and mutton, with prices holding firm even through peak supply periods. Horticultural revenue also continues to grow, this year up a massive 16% on last year as it pushes over $6 billion in export earnings, with anticipated increases in apple, kiwifruit and wine exports. It is a result not only of higher prices but also increased plantings in both apples and kiwifruit. Meantime forestry has become the quiet performer, gaining an additional 7% in earnings this year to head off horticulture with $6.8 billion in earnings. The innovative, emerging area of other primary sector foods is also starting to be recognised as products like Manuka honey, craft beer, health products and confectionary all contributed to the “other” sector now totaling $2.8 billion, up 3.5% from last year. Collectively the primary sector is contributing an additional $3 billion to the economy this year, on average up 6% on last year, a figure that only a couple of years ago would have equated to the entire horticultural sector’s exports.

Collectively the primary sector is contributing an additional $3 billion to the economy this year, on average up 6% on last year. Figures that do much to dispel any uncertainty about New Zealand’s future as a high quality food source. A weakening NZ dollar has also helped deliver an added fillip to returns, falling throughout the year, with an average trade weighted index for the June year end forecast to be 2% lower than last year. The report’s authors also note the primary sector’s performance is even more impressive given the trade tensions swirling around key markets of United States and China. Bayleys national rural director Duncan Ross says these figures do much to dispel any uncertainty about New Zealand’s future as a high quality food source for the increasingly wealthy, health conscious middle classes emerging through China and Asia in general.

LUE

“It seems the greater challenge for the primary sector lies very

“Green-house gases are a good example. There are 12 demonstration farms running around the country that are all collecting and compiling data to provide farmers with tools to manage emissions – we have already seen one example in Cambridge on Owl Farm at St Peters school where emissions are down 14%, the same amount as the reduction in nitrogen losses, while profit is up 14%.” The farm has developed a matrix of parameters including nitrogen losses, gas emissions, animal welfare, staff welfare and profitability to monitor its performance, and is starting to meet its goals across all those parameters. The move to try and better manage green-house gas losses is also being matched by one of the most advanced research programmes in the world, with the Pastoral Greenhouse Gas Research centre working on developing a vaccine or bolus suitable for New Zealand’s pastoral animal system. Centre head Dr Harry Clark has pointed out that had farming made no progress on gases it would be emitting 30% more per kg of production than it currently is. The sheepmeat sector in particular has made huge strides, producing almost the same amount of red meat from half the number of sheep run 20 years ago.

The primary sector’s success in addressing issues relating to GHGs and nitrogen losses should be applauded - the sector has made huge strides in addressing them, in very short time.

much here at home. On farms and orchards many in the primary sector may feel somewhat under siege by compliance demands, calls for nutrient reductions and green-house gas issues.” But when the attention-grabbing headlines are pushed aside it is possible to see some highly constructive, progressive work being done to address all these issues, often at a level well beyond any other sector in the economy.

“The primary sector’s success in addressing those issues of GHGs and nitrogen losses should be applauded- we are talking issues that have only become really topical in the past 8-10 years, and the sector has made huge strides in addressing them, in very short time. There’s still a way to go, but critics may do well to look harder before throwing rocks at farmers’ efforts,” says Ross.

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ES D I V O IP PR

ER N T R PA Y R T S ORE

H T W ES RO

G PORTUNITI OP

Carbon storage, government development incentives and a global appetite for timber all mean forestry is a more appealing investment option than ever, but also one that can be complicated by those same factors.

ayleys has partnered up with IFS Growth, a national forestry management company that offers expertise through the entire forestry process, from sourcing capital for forestry investment to final harvest and timber marketing. With offices in Southland, Nelson-Marlborough, Wairarapa, Bay of Plenty and Northland, IFS has a network of national expertise and experience to ensure clients receive the best advice for the region they are investing in. The company can deliver end to end management to investors, while also offering specialist one off advice around investment opportunities. IFS Growth director Dan Minehan says working with Bayleys has highlighted the strong parallels between the companies, with both being family owned, and both companies aiming to provide advice backed with integrity and experience. â&#x20AC;&#x153;The decision to invest in forestry can require quite a sophisticated

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process to determine the best value of a property, more so than a typical pastoral property. Between the two companies there is a strong pool of expertise to draw on.â&#x20AC;?

The decision to invest in forestry can require quite a sophisticated process to determine the best value of a property, more so than a typical pastoral property. Between IFS Growth and Bayleys, there is a strong pool of expertise to draw on.

reinforced by the strong prices New Zealand foresters are receiving for timber, with an almost insatiable demand in China. “The government’s commitment to a more transparent Emissions Trading Scheme, and the need for greater forest plantings to offset emissions has also added another dimension to forestry investment that has not been as definitive in recent years. Bayleys national rural director Duncan Ross said the alignment with IFS is timely as Bayleys’ agents encounter a significant increase in the level of interest in land suitable for forestry planting. “Given the government has come out with a clear mandate on forestry with a focus on regional development that has forestry within it there is a very attractive pathway there for both local and overseas buyers to invest into the sector.” “Government recognition that foreign investment will play a critical part in forestry’s expansion provides a good level of confidence to prospective investors, both locally and globally.” Bayleys is well positioned to offer a variety of transactional options that engage the skills of both IFS and Bayleys’ staff, from land purchase for planting to matching investors with existing wood lot operations. The appeal for overseas buyers is particularly strong not only based on the sector’s promising future, but also because investment into pastoral land has become more challenging under overseas investment regulations recently. The government’s forestry policy to increase carbon sinks and increase regional development has provided a greater level of certainty in a sector with such long term horizons. This has been

“There are also a lot more options around for farmers or forest investors that have not always been around.”

There are also a lot more options around for farmers or forest investors that have not always been around – they can lease the land, opt for full management by an external company or have a level of hands on involvement. They can lease the land, they can opt for full management by another company such as IFS, or they can have a level of hands on involvement if they wish. It’s a very flexible sector nowadays and IFS plays a key role in opening up those options.” With the level of wealth generated by today’s baby boomers poised to be transferred through succession and divestment, he says forestry promises to offer another option for establishing a diverse investment portfolio with that wealth. Rural Insight

FARM ENVIRONMENT

AWARDS

OPEN NETWORKS FOR FARMERS

The growth in numbers of farmers entering the Ballance Farm Environment Awards is testimony to increasing awareness the environment sits firmly at front and centre for the primary sector, with this year’s winners exhibiting some class leading skills.

ames Ryan, general manager for the New Zealand Farm Environment Trust says this year’s entrants and winners highlight the variety of farmers becoming typical recipients for the awards.

James says the BFEAs are better viewed for the awards they are, rather than a competition, and provide the entrants with huge opportunities to build a network of like-minded peers to share ideas with.

“They encompass all aspects of land use in the primary sector, from pastoral dairying, sheep and beef farmers to orchardists. What they all share, despite their different businesses, is a passion to preserve the environment they depend upon so much while still operating a profitable, sustainable business.”

“And of course the judging process gives them positive, constructive feedback about their operation and where, if necessary, they can do more work on.”

What all entrants share, despite their different businesses, is a passion to preserve the environment they depend upon so much while still operating a profitable, sustainable business.

Rural Insight

The awards champion sustainable, profitable farming by selecting 11 regional award winners from around the country. Each have the opportunity to have their farm businesses showcased through the award’s national sustainability seminar, and to go into the running for the national award, the Gordon Stephenson Trophy. Long-time Tirau dairying couple Adrian and Pauline Ball were this year’s Waikato supreme winners with their dairy farm that lies alongside the Waihou River near Tirau. Adrian says the awards have proven invaluable for getting an insight to what other farmers are doing. “We have been involved with the industry for a while now and it’s good to be positive and share our story. You never feel like you are

particularly with the independent, free feedback they receive from a diverse judging team.” That team can include a fellow previous award winning farmer and agri-professionals with soil, water and fertiliser expertise. “Despite people being time pressured, there is a real willingness there to help out with the awards – they are regarded very highly as something of an industry standard.” The standards of environmental management those judges are encountering has also lifted markedly over the awards’ lifetime. “We are seeing greater use of technology by farmers, including precision agriculture and irrigation, and proof of placement technology for fertilisers and effluent applications.” For the first time this year Bayleys is sponsoring the People award in each region, helping recognise those entrants who are successfully taking their staff members with them on their sustainable journey. Bayleys national rural director Duncan Ross says the decision to sponsor the regional award reflects the importance that needs to be placed on fostering talent in the New Zealand primary sector that can continue the strong environmental capabilities established by the leading farmers. “Given the average size of almost all categories of farms and orchards are increasing, we are seeing the importance of being able to engage staff on the sustainable vision the owners may have for that farm.”

‘ready’ but having an understanding of the issues and options is important, and the awards offer that opportunity,” he says.

We have been involved with the industry for a while now and it’s good to be positive and share our story. The awards offer the opportunity to understand the issues faced and the options available.

Given the average size of almost all categories of farms and orchards are increasing, we are seeing the importance of being able to engage staff on the sustainable vision the owners may have for that farm. He said it was implicit that if farm owners could not take the people on their farm business along with them, all the vision in the world will not come to much when trying to make it real. He is confident the sponsorship will further help cement what is becoming an iconic event in the New Zealand farming calendar. “What once used to be regarded as a bit of a ‘fringe’ award is now very much in the mainstream for all types of farmers,” says James Ryan.

The Balls’ operation highlights some of the smart environmental management that can be picked up by other farmers in the sector. The Ball farm’s dry stock unit is 100% off the grid, using solar power, while all fences on the dairy unit are set back 20m from the river’s banks. Pond areas on the farm are biodiversity hotspots, providing an ideal habitat for frogs and waterfowl. James Ryan says typically farmers are not by nature accustomed to receiving positive feedback on what they do. “They are often humble and do not recognise the uniqueness of what they are doing. The awards provide a forum for them to receive some positive feedback and encourages them to do more,

Rural Insight

ALL OVER

Bayleys is the market leader in rural property sales across the country.

Altogether Bayleys and IFS are specialists in:

In conjunction with IFS Growth, New Zealand’s leading innovative forestry management consultancy, we are about to grow the capability in the ever-expanding forestry sector.

• Forest feasibility and investment analysis

The strength of the Bayleys nationwide network of leading rural, commercial and corporate agents will be complemented with the sector expertise of IFS.

• Valuation services

• Marketing and promoting NZ’s best agricultural assets across a national and global platform • Providing real estate opportunities to our clients in the agricultural sector through the relationships our agents have imbedded in their local communities and through Bayleys’ international reach

• Forest management • Harvest and marketing • Emission Trading Scheme consulting and carbon credit management

Talk to one of our specialist team today 0800 BAYLEYS | forestry@bayleys.co.nz | bayleys.co.nz/rural LICENSED UNDER THE REA ACT 2008.

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