3
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Vol 18 No 26, July 8, 2019
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Westland gone Annette Scott
I
annette.scott@globalhq.co.nz
T WAS a sad day but a day that had to be, not just for dairy farmers but the wider West Coast region Grey District Mayor Tony Kokshoorn said of the vote supporting the sale of Westland Milk to Chinese ownership. Westland shareholders voted overwhelmingly in favour of accepting the $588 million offer to sell the 150-year-old co-op to Yili at a meeting in Greymouth on Thursday. The Hongkong Jingang Trade Holding Co (Jingang), a wholly owned subsidiary of Inner Mongolia Yili Industrial Group, offered shareholders $3.41 a share, translating to about $500,000 for an average-sized Westland supply farm. More than 93% of votes cast were in support of the deal. Just 6% of votes went against the proposal. “It’s good and it’s bad. At the end of the day 400 farmers from Karamea to south Westland, like any other business, had to vote the best for their businesses. “Farmers had a fantastic co-operative for 82 years. They resisted Fonterra and it was a great model with great opportunity but sadly the directors went out and got too much debt and ended in big, big trouble this past two years,” Kokshoorn said. “I feel for farmers as for most this vote was not their first choice
but a sensible option after all other options were taken away from them with the debt taken on by the directors. “There will be a lot of relief in this vote for farmers but very sad and sad for the people of the West Coast.” Kokshoorn said he’s a great believer the man with the gold makes the rules. “We have lost that gold and one thing for certain is we have lost the control. We just have to sit back and see where we go now with this new company.” Kokshoorn’s worst fear is operations will move across the divide. “We have the milk factory well established at Hokitika but at some point I expect we will see administration sneaking away to the east coast (Canterbury) where they (Yili) already have other processing interests. “There’s no guarantees after 10 years and when you don’t have the rights to make the decisions you become very vulnerable to market forces. ‘”At the end of the day it’s business in a vicious circle and a decision farmers made with a heavy heart and a long-held company has slipped away from West Coast ownership,” Kokshoorn said. West Coast-Tasman MP Damien O’Connor said it’s a sad day for the region. “I am very disappointed,” O’Connor said after the vote. “Something has gone seriously wrong.” Development West Coast
what has been a whirlwind voting process, we believe there are a number of Westland shareholders who would not have voted yes had there been other options on the table. The board cited confidentiality agreements for not disclosing other interested parties.
When you don’t have the rights to make the decisions you become very vulnerable to market forces. Tony Kokshoorn
SAYS IT ALL: This equation sums up the situation for some coasters. Photo: Greymouth Star
chairwoman Renee Rooney acknowledged it’s been tough for West Coast farmers. “Westland’s owners voted in a direction they believe their co-op should head and we must respect that. “Generally, the primary sector is the backbone of any rural region and if farmers are doing okay then the positive effect rubs off on the wider economic and social wellbeing of the community. “Farmers made their decision
and we move on,” Rooney said. Westport dairy farmer Johno O’Connor voted against the sale to Yili. “But I didn’t have many friends and that’s not surprising as there was no option. “The company has let us down – farmers and their heritage down.” O’Connor said the outcome was based on a flawed, rushed and very opaque process. “While we are a minority of shareholders who voted no in
“But given we are the owners of the co-operative we should know where the other interests came from and what models they put on the table. “I will be taking a close look at my farming system. Just because we are getting a competitive farmgate milk price for 10 years there’s no certainty farming will be sweet after that,” O’Connor said. Westland chairman Pete Morrison said all Westland farming families need a competitive milk payout. While Westland will cease to be a co-operative, the board believes the proposed transaction represents the best available outcome for shareholders,” Morrison said. Morrison expects the sale to be complete by August 1.
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NEWS
WEATHER OVERVIEW We began last week with a sub-tropical northerly, this week it’s a Southern Ocean southerly – welcome to life in New Zealand. This week another big high from Australia is trying to drift our way but it’s not going to have much luck with the centre being nudged northwards over the Tasman Sea to lie just north of Northland on Wednesday. It brings mostly dry and settled weather to the north of the country but further south expect more western showers. Things warm up mid to late week with northwesters from the sub-tropics again briefly possible for some along with more western showers. The westerly theme, sometimes windy, looks set to dominate into next week.
8 Lamb contract rewards loyalty A $9/kg fixed-price lamb contract for August is a reward for customer loyalty, Affco national livestock manager Tom Young says.
Newsmaker ������������������������������������������������������22 New Thinking ��������������������������������������������������23 Opinion ������������������������������������������������������������24
Pasture Growth Index Above normal Near normal Below normal
7-DAY TRENDS
Rain Showers become confined to western NZ while we might get some rain late week or weekend to spill over elsewhere. The general theme for the next several days is for highest rainfall totals in the west, mostly the West Coast.
World �����������������������������������������������������������������30
ON FARM STORY
NZX PASTURE GROWTH INDEX – Next 15 days
Temperature Colder to begin with this week but by mid week many regions are fairly mild again and by late week and into Saturday we’re likely to get a return to warm sub-tropical northerlies before turning to mild westerlies.
Wind Winds turn more south to southwest today then are more westerly into Tuesday and Wednesday but with light winds in the upper North Island thanks to high pressure. Winds tilt more northerly late week, westerlies dominate next week.
Highlights/ Extremes Drier than average in Canterbury for the next couple of weeks. Heavy rain for the West Coast at times. Warmer than average by late week as subtropical winds again return from well north of NZ. Windy westerlies likely to dominate NZ next week.
14-DAY OUTLOOK
We saw rain relief over the dry North Island late last week and with sub-tropical winds coming back later this week pasture growth should see a nice mid-winter bounce. But a drier-thannormal pattern does continue and perhaps now Canterbury, the Far North, eastern Northland, parts of Auckland and to some degree parts of Wairarapa all need some good, soaking rains but they are not in the forecast generally. So it’s positive for pasture growth but perhaps not so positive for overall rainfall totals.
SOIL MOISTURE INDEX – 04/07/2019
28 Keeping the farm in the family Kairuru farmer Amanda Henderson says there’s a whole lot more to farming than picking a paddock and putting some animals in it. The fourth-generation sheep and beef farmer is dedicated to shifting the perception of New Zealand’s primary sector.
REGULARS Real Estate �������������������������������������������������31-32 Employment ����������������������������������������������33-34 Classifieds ��������������������������������������������������������34 Livestock ����������������������������������������������������������35 Markets �������������������������������������������������������36-40 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $760. 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
For more weather information go to farmersweekly.co.nz/weather
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FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
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MPI: We’re very sorry Annette Scott annette.scott@globalhq.co.nz THE Ministry for Primary Industries has apologised to farmers after two reviews pointed the finger at its poor handling of the Mycoplasma bovis crisis. Separate reviews by MPI’s chief science adviser Dr John Roche and disease management expert Roger Paskin for DairyNZ looked into the cause and possible impacts of the backlog of cases as a result of the tracing surge actioned in April. The reviews make 43 recommendations to improve the systems and processes of the M bovis programme, including greater regional decision-making, the importance of farmer involvement and improving structures, systems and resourcing. Director-general of agriculture Ray Smith said the reviews give concrete ways to improve the response. In particular, the backlog of trace animal movements that prompted the surge of activity in the lead-up to winter cattle movements was disappointing, Smith said. “We’re very sorry for the impact that this has had on affected farmers and that we had to take the action we did at a busy time of year for many of them. “I think we let farmers down in the local communities at a point in the year that was very important to them. “I would like to say I’m very, very sorry on behalf of all of us here at MPI,” Smith said. MPI probably underestimated the scale and complexity of the response programme. It remains focused on completing testing for the farms affected by the surge as quickly as it can so farmers can get back to farming.
Roche found the backlog built up because of issues managing the flow of information between functions and in the disease management team’s structure and resourcing. The backlog was smaller than initially thought and while it was primarily trace movements that built up this year, some of the movements dated back to 2018. While the backlog might have allowed some further spread of the disease Roche does not believe it has affected the chances of eradicating M bovis.
We’re very sorry for the impact that this has had on affected farmers and that we had to take the action we did. Ray Smith MPI The independent Technical Advisory Group has also been asked to consider the impact of the backlog and is expected to report back soon. Paskin identified issues related to the programme structure, staffing, training, management and supporting tools that resulted in a backlog of cases dating back, in a number of cases, about seven months. The primary cause was an accumulation of animal movement traces to and from infected properties that had not been followed up. Smith said the programme is working hard to implement the recommendations, starting with enabling more regional decision-
making and rolling out a bespoke data management system. “Eradicating M bovis from New Zealand is a huge challenge. “However, we remain confident that by working in partnership with industry and farmers on the ground we can succeed and make sure NZ can farm free from this disease in the future.” DairyNZ chairman Jim van der Poel said actioning the 43 recommendations from the reviews will have a significant impact. “M bovis has a financial and emotional impact on the lives of affected farmers. “The findings from these reviews will improve processes that will strengthen the programme and help farmers affected by the disease. “We’ll be working with MPI and Beef + Lamb NZ to make sure this happens,” van der Poel said. B+LNZ chairman Andrew Morrison said the improvements to the programme should go a long way to ensuring farmers dealing with the disease are better supported. “The phased eradication of M bovis is complex and challenging and we know affected farmers and rural communities are hurting. “Implementing these recommendations gives us the best possible chance to eradicate the disease,” Morrison said. It was projected that up to 250 Notices of Direction restricting cattle movement might be issued as a result of the surge but that fell short at just 171 NODs with 304 farms put under Active Surveillance. Of those NODs 116 are beef properties, 23 dairy and 32 grazing or lifestyle. “It is positive that there were fewer dairy farms requiring restrictions as beef properties present a much lower risk of spreading the disease,” MPI said.
VERY SORRY: Director-general of agriculture Ray Smith has acknowledged the Primary Industries Ministry might have underestimated the scale and complexity of the Mycoplasma bovis response programme and apologised for letting farmers down. Photo: Bryan Gibson
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News
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Farmers deserve more credit Luke Chivers luke.chivers@globalhq.co.nz FARMERS and growers are hard on themselves over relatively minor weaknesses and lack the credit they deserve for the world-class activities they do every day, Prime Minister Jacinda Ardern says. “Terms of trade are at record highs,” she told 300 people at the Primary Industries Summit in Wellington. “Export performance is up more than $7 billion over the past two years and it is expected to bring in another record of $45.7b this year.” Ardern picked out the KPMG Agribusiness Agenda, saying it too often focused on the challenges facing the sector while underplaying success and that has, unintentionally, contributed to the pressure many in the sector feel they are operating under. “Instead, we should look toward the real and measurable progress that has been made in transforming the industry over the past decade and then look to build on that.” Dairy is looking good and horticulture is expected to be the fastest-growing sector for the year ahead, Ardern said. May exports are up in value, again, led by dairy, fruit and fish. The dollar is expected to fall by 2% this year. “In a country like ours we should be able to invest to save. “We have a relatively high rate of GDP growth, particularly at present. This is supercharged by the primary sector. “A sharp slowdown in China and natural disasters are the two most possible severe shocks that could affect New Zealand. “This highlights why it’s important Government continues to run surpluses and keep debt under control.” So, naturally, the Government’s top priority as an export nation is to pursue high-quality trade agreements. “We’ve got a progressive agenda and that is to ensure
TOP LEVEL: Prime Minister Jacinda Ardern at the Primary Industries Summit in Wellington.
these agreements are modern, enduring, adhere to the rulesbased system and open doors into the types of markets that will ensure our food and fibre fetches the very best premiums of which we should settle for no less.” The Middle East is an exciting area for NZ, Ardern said. “United Arab Emirates trade is worth around $350m – that represents trade mostly in dairy and meat. While diversifying the markets NZ trades with is critical to protecting our economy from vulnerability from relying on a single market, China remains a key trading partner for NZ, Ardern said. “When I was there a couple of months ago the premier spoke to me with quite a level of knowledge of Maori culture, acknowledging that our food and fibre is renowned as safe, nutritious and clean. In his view it was the story and values of indigenous New Zealanders that really set us apart in trade and tourism. “Our environment is a critical part of NZ’s story and brand. “Unless we protect it we won’t
only lose one of our greatest assets we will also diminish our narrative.” Leading into NZ’s free-trade agreement negotiations with the European Union strung a similar chord. “It was clear to me from my visit to France and conversations with President Macron that our environmental position – our goal of swimmable rivers, riparian planting, world-leading research and action on reducing agricultural emissions – is ultimately one of the things that helped get us into the position of achieving that mandate for negotiations with countries like France.” But Ardern insisted the Government doesn’t want to oversimply industry challenges. “I know that for the primary sector it seems the long-term challenges are all on the table at the same time. “And farmers are out in the front tackling some of these challenges. “I want you to know that we, too, are focused on these issues and equally are focused squarely on supporting you as we navigate
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them because the world is demanding that we do. “We don’t want to be left behind, particularly not when we’ve always been toward the front of the pack and have traditionally reaped the rewards of being at the front of that pack. “That’s not to say that transition is easy but it will be less jarring if we start early.” The single-use plastic bag ban is now in force, Ardern said. “We’ve stepped up fisheries management, we have legislation to tackle our greenhouse gas emissions in line with global responsibilities. We’re stepping up predator and pest control. We’re dealing with urban waste.” Ardern said Government has set aside $229m in the Sustainable Land Use Package to protect waterways and wetlands and help farmers and growers use land more sustainably. Meantime, Ardern defended the Billion Trees programme. “Reaching that target in 10 years will see 430,000ha planted across NZ, bringing forestry land up to 2m hectares. Of course, farming covers 12.6m hectares. If it’s all on
unproductive farming land then it’s roughly 3% of all farming. “Keeping in mind that over the past 10 years there was a trend to convert forest to dairy at a rate of around 7000ha a year so there’s been movement in land use back and forth in the past and will be in the future but not at the scale I’ve heard people state.” Arden said forestry does generate jobs. “Plantation forestry currently earns $6.8b a year and employs about 20,000 people. Add to that the contribution to some of the other challenges we face. It’s estimated that 193m tonnes of soil are lost to erosion every year. Overseas Investment Office data shows five forests and three farms for conversion were bought under the special benefits test for forestry since the test came into effect in October last year. The Billion Trees programme provides $118m to support landowners to integrate trees into their properties. “There’s a focus on native trees and an absolute priority to get the right tree in the right place. “No one wants to see our limited, elite, food-producing soils gobbled up in any way, shape or form and that includes houses in Pukekohe. “Yes, we have a housing crisis but we have a soil crisis too,” she said. That’s why Environment Minister David Parker is working on a national policy statement for highly productive land. The Government acknowledges more action is required to prevent the loss of irreplaceable, highly productive land. “Minister Parker has directed officials to start work on a national policy statement that will provide councils with guided, greater clarity on how highly productive land should be considered in resource management and decision making.” Consultation on the statement will begin later this year and Ardern encouraged farmers to engage in the process.
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News
Forget facts and figures FARMERS must collaborate if they are to survive and prosper, Nestle’s corporate head of agriculture Hans Johr says The future isn’t about facts and figures, he told the Primary Industries Summit. It is about perceptions and farmers need to be influencers or they will be influenced. Johr suggested social media will put farmers and consumers closer. Nestle has developed an endto-end initiative with the sole aim of putting farmers and consumers together. Johr said China spends US$8.5 billion a year on alternative milk products. The global demand for alternative proteins was 202 million tonnes in 2017 rising to 263-293m tonnes by 2050. The artificial protein problem is exacerbated by governments wanting to reduce red meat consumption. China has said it will reduce red meat consumption by 50% with France and the Netherlands wanting to reduce the consumption of red meat to 500g an adult a week. Denmark has put animal proteins on the top of the food triangle. Johr said there is a variety of crops farmers can grow to diversify from animal protein. There are 200 readily edible crops that could be produced in a variety of conditions but just nine crops make up 60% of total plant production. Farmers can expect weather anomalies and will need to keep consumers accurately informed on subjects that matter. There is also a need to diversify agricultural production systems and invest in new protein crops. Developing young farmers into the industry will also be critical for the future as will a grasp of new digital technologies. And farmers needed to live up to consumers’ expectations, he said. – Alan Emerson
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
M bovis vet’s tenacity rewarded Luke Chivers luke.chivers@globalhq.co.nz ERADICATING a disease is a complex task but vet Merlyn Hay has been rewarded for her efforts in the battle against Mycoplasma bovis. Hay’s tenacity, which led to the identification of M bovis in New Zealand, won her the Outstanding Contribution to the Primary Industries Award. She told more than 300 people at the Primary Industries Summit in Wellington she was humbled by the recognition. “I believe that any of my colleagues would’ve come to the same conclusions as I did. “Really, it’s the farmers and sharemilkers involved in those initial days who deserve the acknowledgment because they’re the ones who pushed me to find answers when they recognised there was something wrong with their animals.” Two years ago the Oamaru vet was not satisfied she had found the root cause of the unusual and distressing symptoms in cows and calves on a South Canterbury property and left no stone unturned until the cause was diagnosed. “I never could’ve in my wildest dreams imagined what would follow – an exotic disease diagnosis quickly followed by an escalating animal health crisis and the decision to cull the first affected farms. “It was a harrowing time for everyone involved as we tried to find our feet and understand what this diagnosis and disease meant for NZ farming.” More than 104,000 cattle have now been culled as part of the Government’s M bovis eradication programme. The Ministry for Primary Industries’ latest update shows 176 properties confirmed as having the cattle disease, 142 of which have been cleared. Ten of
WINNER: Vetlife’s Dr Merlyn Hay is the winner of the 2019 Outstanding Contribution to Primary Industries Award.
the 34 active properties are in Canterbury. M bovis can cause lameness, mastitis and abortions in cows but is not a health risk to humans. More than a year since the Government decided – in a world-first – to try to eradicate the disease the cost has now passed $200 million. “It’s the trickiest of diseases that hides in plain sight,” Hay said. “It’s so hard to diagnose and seems impossible to treat but we’re trying and I really hope that we’re successful. “In the meantime, as we continue down this path, I feel enormous sympathy and empathy for all the farmers caught up in the positive M bovis diagnosis – they’re the true heroes of the story. I hope their sacrifices continue to be recognised.” Hay’s commitment to the disease has been widely praised. An awards judge said “I’ve always found rural vets willing to go the extra mile but the actions of Dr Hay have given that a
whole new meaning. She didn’t have to do what she did but the country is better for it.” Hay’s nominator said the fact M bovis had previously not been found in NZ and was not among the high-profile diseases vets are expected to keep an eye out for – such as foot and mouth disease – makes Hay’s work even more remarkable. “While it was later discovered that M bovis had entered NZ as much as 18 months earlier there is no doubt that Dr Hay’s detection in July 2017 has meant that we have a good chance of eradicating the disease,” the nominator said. “If Dr Hay had not been so tenuous and vigilant and it had been months or years later before M bovis was first detected it is highly likely we would just have had to live with the disease as farmers in other countries do. “Arguably, Dr Hay has saved the NZ primary sector millions of dollars and potentially enabled our country to achieve something no other country has managed – to rid itself of this disease.”
Other awards presented were: Team Award: Beef + Lamb for the Taste Pure Nature Project B+LNZ’s Taste Pure Nature campaign to better tell the story of NZ-produced red meat in key export markets, particularly the United States, has been hailed as having huge impact despite the team having a fraction of the budget of international competitors. Science and Research Award: Lincoln University for its Cleartech Project Lincoln University’s ClearTech is about helping dairy farmers manage effluent in a more sustainable manner. ClearTech uses a coagulant to bind effluent particles together so they can settle out from water, reducing the risk of phosphorus getting into waterways via runoff or drains. Chief Executive Award: Greg Campbell, Ravensdown Since starting as Ravensdown chief executive in 2013 Greg Campbell has led the cooperative’s transformation from a predominantly fertiliser company to being farm nutrient and environmental experts. He has championed sustainability at every level, has changed the culture on health and safety and under his leadership the company has paid back a third of a billion dollars in debt and now enjoys record-breaking total equity, his nominators said. Innovation and Collaboration Award: Agricom, for its Green Pastures project Agricom’s Ecotain environmental plantain project brought together a diverse group of people from across PGG Wrightson Seeds. The outcome has been the development of Ecotain environmental plantain, a forage for animals that significantly reduces nitrogen leaching from the urine patch.
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News
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
7
Bank move risks land values run Nigel Stirling nigel.g.stirling@gmail.com THE dairy industry’s biggest names are warning the Reserve Bank its capital proposals go too far and risk sparking a massive run on land values. The central bank wants lenders to strengthen their balance sheets enough to withstand loan writeoffs associated with a one-in-200 year economic catastrophe. It estimates the impact on borrowing costs will be no more than 20-40 basis points. But trading banks have dismissed those estimates as much too low. They warn shareholders will demand significantly higher returns to compensate for the up to $20b in new capital they will be forced to stump up with under the proposals. Furthermore, the biggest impact will be on farmers given the high amounts of capital the banks already have to hold against rural loans, which are judged to be riskier than residential mortgages. In submissions published last week the country’s biggest private dairy farmer Dairy Holdings called on the Reserve Bank to rethink its proposals. The owner of 75 South Island dairy farms running 50,000 cows said it agreed with the regulator’s objective of bolstering the banking system against future shocks but said the proposals go too far. “Dairy Holdings sees significant risk in the perfect storm materialising where banking margins increase significantly (100+ basis points) due to extra capital costs and customer risk ratings increases, bank sector reduction in appetite stifles appetite for growth and liquidity in the land market and a milk price shock causes massive deterioration in all asset values,” chief operating officer Blair Robinson said. Dairy Holdings rejected Reserve
DON’T BELIEVE IT: Dairy Holdings rejects Reserve Bank governor Adrian Orr’s claim competition will ensure banks keep lending to farmers.
Dairy Holdings’ observation over time is quite the opposite and that banks very much follow each other’s lead. Blair Robinson Dairy Holdings Bank governor Adrian Orr’s claim competition among banks means if one pulls back on lending to farmers another will take its place. “Dairy Holdings’ observation over time is quite the opposite and that banks very much follow each other’s lead.” The corporate farmer also dismissed suggestions interest rate rises will be felt only gradually
over the five years the increases in capital are to be phased in. “Banks have seized the opportunity to increase margin before the submission period has closed and well before any costs are incurred on their behalf. “The increase in margin already being charged is significantly above that signalled by the RBNZ.” Ray Parker the former chief executive of the late Howard Paterson’s Australasian dairy farm empire Tasman Farms warned of a knock-out blow to farmers. They already have to deal with the costs of increased environmental and biosecurity regulation as well as the threat from plant-based protein and global trade tensions. “This reduction in farmer viability could result in an escalation of defaults, perversely resulting in exactly the type of contagion within the rural sector
the Reserve Bank is presumably looking to avoid.” In its submission Fonterra said it is concerned its farmers are being hit with a double-whammy of higher interest margins and demands for principal repayments before the proposals are even confirmed by the Reserve Bank. Research commissioned by the co-operative showed the cost of an increase in interest rates of 125 basis points amounts to 32c a kilogram of milksolids or $50,794 for the average farm. “But where an average farm is transitioned to principal plus interest, as would be increasingly likely under the proposed regime, this could rise to perhaps 98c per kilogram of milksolids, equating to $155,558 per farm.” Increases of that magnitude will force an undefined number of farmers into default. “This not only has a flow-on
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effect to regional economies through reduced level of activity and spending in rural communities but also puts Fonterra at risk due to reduced milk supply and the consequences of underutilised or stranded assets,” it said. Industry-good body Dairy NZ estimated a 100 basis points increase in interest rates costing dairy farmers $347m or about 9% of annual profits. About 4% of farmers could be expected to default on their loans as a result of the proposals. Listed dairy company Synlait said while it does not anticipate any impact on its viability it believes farmers supplying milk to the company will be disproportionately affected. It called on the Reserve Bank to analyse what the proposals mean for each part of the economy before implementing them.
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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Lamb contract rewards loyalty Colin Williscroft colin.williscroft@globalhq.co.nz A $9/KG fixed-price lamb contract for August is a reward for customer loyalty, Affco national livestock manager Tom Young says. So, farmers generally should not raise their hopes it signals prices higher that they might usually expect as the season unfolds. The contract has been the subject of much discussion at sale yards but Young said it is not an offer being made to every farmer. It is only available to loyal clients, farmers who have shown Affco consistent support. It was possible because of demand from a high-value overseas customer and is for a decent amount of volume by Affco’s standards, Young said. The order will take up a fair portion of its August kill. The company wants to share the return with its most loyal farmers. He could not provide further detail, including the number of farmers the offer was open to, citing commercial confidentiality. The contract is available only for lamb packed at North Island plants though very little lamb is killed in the South Island at that time anyway. Young is not concerned if the
market generally does not like the $9 offer and though it will invariably raise farmer expectations of what they can get later in the year it would be wrong to read too much into it. It was not meant to upset the market by taking it up a notch. Silver Fern Farms and Alliance wouldn’t say if they will match it. Anzco general manager for supply chain and livestock Grant Bunting is overseas and unavailable. Young said the contract will outperform the potential top contract level for late winter, which he expects to be about $8.50/ kg – the same as last year – with the schedule likely to bottom out at about $7 in late November and December. It is the bottom of the schedule that is critical to the sheep industry as a whole. If it’s about $7 then it will translate into a good price for store lambs – as long as there’s grass around they will be sold on for between $80 and $100. However, if the bottom is between $5 and $6 then the price for store lambs will be rubbish, he said. The red meat sector is in a good place now with the biggest concern the amount of land going into
Richard & Julie Waughs Three Way Cross Experience. Richard & Julie Waugh run a 330 crossbreed cow herd near Matamata in the Waikato region. The Waughs have been on their current farm for around ten years now and have been working with a Three Way Cross using Viking Red genetics for around seven years. The Waughs are extremly happy with their results. The Waughs used Viking Reds on their first Holstein Jersey Cross to maximise the Hybrid Vigour returned from their crossbreeding.
pine trees, which is happening at a furious rate. As well as properties where pine planting has already begun he is aware of others where deals have been done but planting is yet to get under way.
Any processor will have to be really concerned about the amount of good land going into trees. Tom Young Affco Every 50,000ha of farmland going into pine trees on average carries about eight stock units a hectare, which means about 400,000su wintered. Removing those numbers from the national flock is a big concern, he said. Most of the land being converted into trees is on the east coast of the North Island, which has about 9.25 million lambs. “Any processor will have to be really concerned about the amount of good land going into trees.”
THANKS: Affco’s $9/kg lamb contract is a reward for its most loyal farmers, national livestock manager Tom Young says.
Currently Richards herd is made up of 50% Friesian Jersey Cross and 50% Friesian, Jersey & Viking Red or Ayrshire Cross. Last year Richards Viking Red crosses averaged 3KGMS above his herd average with an average of 506KGMS, his top Viking Red Cross producing 601KGMS. This put his Viking Red Cross animals in the top 5% of his herd. Moving forward Richard will continue to use the Three Way Cross with Viking Reds, Red Factor Holstein and Jerseys. This will uniform the herd in colour and allow Richard to continue recieving the benefits of a Three Way Cross.
- Maximise Hybrid Vigour - Increase Fertility & Health Traits - Increase Production “We use Viking Reds as a Three Way Cross in our crossbred herd. The Viking Reds continue to perform in the top 5 percent of the herd along side the high BW NZ genetics.” For more information or to book a FREE consultation contact us today. p. 0800 220 232 e. info@samen.co.nz
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10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Winter gets dry on big highs Richard Rennie richard.rennie@globalhq.co.nz A WINTER weather pattern dominated by extreme highpressure systems has made farming easier but raises some concerns over low moisture levels’ impact on spring growth despite rain last week. Almost all of New Zealand’s weather has been dominated by high pressure systems that arch across part of Australia and right across the Tasman, Weather Watch forecaster Philip Duncan said. “While we are only on the edges of this influence we are catching the dry bug. “While we are still getting a bit of rain, at least enough to keep things growing, we have certainly not received enough to replenish soil moisture levels in many places.” Rain in the North Island last week while welcome will not address the major annual deficits to date in most districts. Northland, Auckland and Waikato have had only about two-thirds of their average annual rain. Australia is experiencing extremely dry conditions. All of New South Wales was recently
PARCHED: Philip Duncan says winter has been dominated by extreme high pressure systems.
declared in drought and this winter the impact is starting to drift across the Tasman. Water restrictions imposed in NSW in May for the first time in a decade, coming after two years of below-average rainfall. Australia is import grain because of to back to back droughts. Dry conditions are particularly
noticeable in Northland, eastern Waikato, Hawke’s Bay, Wairarapa and South Canterbury. Total Ag farm adviser Aaron Baker said while the dry conditions are welcome in Northland over winter for getting work done there is real concern heading into spring in a region that can be highly variable for rainfall. “We have just had the second driest June in five years, May was also dry and it came after a dry summer and dry autumn.” Kerikeri has had seven consecutive months of belowaverage rainfall. The region has received variable rain over the last week. Northland farmers’ concern was also exacerbated by many dry stock farms relying on surface supply, dammed water for stock supply. Aucklanders are also being urged to cut water use as storage for the city’s water supply sits almost 30% below its historic average. NIWA soil moisture deficit analysis shows heightened moisture anomalies along East Coast, Hawke’s Bay, Wairarapa, Nelson and South CanterburyOtago.
South Canterbury has the most severe moisture deficit, at 25% of field capacity. “And after the rain we have just seen pass through it seems like Canterbury is stuck in something of a rut. It is looking considerably drier now,” Duncan said. The upside of the conditions has been particularly high use of pasture and winter feed crops, with far less loss to usually muddy, wet conditions. Frosts have been welcome in areas like Bay of Plenty to help deal with insect pests. “I think this is the first year when I have never heard farmers complain about the winter weather conditions. Some are saying it’s the best winter they have ever had,” Duncan said. But he notes an underlying wariness about where it might put spring moisture levels. The high-pressure systems arching across the Tasman have been notable not only for the distance they cover but also their intensity. As an ultra-intense 1040hPa high moves away to the east this week another is poised to take its place, intensifying again at over 1030hPa.
“We are being affected right now by weather patterns that are much bigger than our own country. “I am not sure a lot of work has been done to know why these types of pressure systems are happening at this stage of the winter. “You would typically expect these at the end of winter.” Duncan said ironically Australia is reporting greater snowfalls than NZ this winter and that does not bode well for irrigation replenishment here come the thaw. “While there is a good dump of snow on the very tops of the southern mountains, that’s quite a small surface area in terms of snow storage for water supply. That will have an effect come February-March next year.” He expects it could also present problems for electricity generation if there are no major shifts in weather patterns. But Duncan cautioned there is always a degree of chaos about predicting NZ’s weather. Being a small cluster of islands in a big ocean means it takes only one major rainstorm to shift prospects.
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FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Euro trade deal sparks optimism Nigel Stirling nigel.g.stirling@gmail.com THERE is optimism a new trade deal between the European Union and South American countries will strengthen the hand of New Zealand negotiators pushing for improved access to the world’s highest-paying beef market. The heavyweight beef producers of South America’s Mercosur group last week concluded a wide-ranging trade deal with the EU two decades after talks began. The deal will result in tariffs on 99,000 tonnes of Mercosur beef being progressively cut from about 20% to 7.5% within six years. It replaces individual quotas for the EU for Mercosur group members Brazil, Argentina, Uruguay and Paraguay. NZ and the EU are in the middle of their own trade talks and aim to conclude a deal by the end of this year. Improving NZ’s paltry annual quota of 1300 tonnes is a high priority for its negotiators. Beef + Lamb NZ’s representative in Brussels Ben O’Brien says European beef producers are struggling with low returns and are sensitive to any opening of their domestic market to increased imports.
Previously their negotiators were holding the fact that negotiations had not been concluded with Mercosur over our heads.
FOLLOW SUIT: The European Union’s deal to let South American countries export beef to the bloc set a precedent for the trade talks with New Zealand, former Trade Minister Sir Lockwood Smith says.
prepared to move … it would be most unusual for them now to refuse to make some provision (for improved market access) for us.” Trade officials from the EU and NZ will meet again later this month for the fifth round of negotiations. The EU is yet to make an offer of improved market access to either beef or dairy products from NZ in a year of talks.
MORE: WORLD P30
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Ben O’Brien B+LNZ There has been an outcry from European farming groups who feel they have been sacrificed by the European Commission’s negotiators for increased access to the South American market for German car makers. Those groups have called on EU politicians to reject the deal with Mercosur. O’Brien concedes the deal could heap more pressure on EU negotiators to close the door on any further opening of its domestic beef market to imported competition. At the same time, the EU’s negotiators have long held the prospects of a deal with Mercosur over their NZ counterparts’ heads when it came to their demands for better beef market access. The argument from the EU is that it is constrained in the amount of quota it can create without flooding its market with imports and driving its farmers into bankruptcy. The EU has argued that if it allows the creation of the 300,000 tonnes of quota demanded at times by Mercosur it would have left no room to offer NZ producers anything at all. O’Brien says that argument is now no longer relevant. “Previously their negotiators were holding the fact that negotiations had not been concluded with Mercosur over our heads. “To that extent things have changed because it has crystalised a certain number,” he said. Northland beef farmer and former Trade Minister Lockwood Smith agrees there is now one less excuse available to the EU for keeping beef market access off the table in talks with NZ. “It is a valid argument that now that Mercosur is finalised at least they know what that is and they can’t say we do not know much we are going to give to them so we have got to be extra careful with you, NZ.” Smith said the Mercosur deal also set another precedent useful to NZ in its talks with the EU. “It is encouraging that they have shown they are
Lifetime traceability starts at the farmgate. All calves being reared or sold, must be registered in NAIT within 7 days or before moving off-farm. NAIT is an OSPRI programme
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12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Government will discuss GE use Luke Chivers luke.chivers@globalhq.co.nz
TALK ABOUT IT: Agriculture Minister Damien O’Connor says New Zealand needs to have a sensible discussion about GE foods.
Animal Welfare Regulations
on significant surgical procedures on animals. Tell us what you think about proposed regulations for significant surgical procedures on animals under the Animal Welfare Act 1999. We want to hear from people who work with and care for animals, and anyone else who is interested in animal welfare regulations. Make a submission. Go to a public meeting. Find out more.
MPB0121
Go to: www.mpi.govt.nz/animal-consult Phone: 0800 00 83 33 Submissions close on Wednesday 24 July 2019.
THERE is political appetite for changing New Zealand’s genetically engineered-free status for food production. Quizzed by farmers and industry leaders at the Primary Industries Summit in Wellington, Agriculture Minister Damien O’Connor said overseas consumers will ultimately determine whether NZ adopts GE. “The real questions we have to keep asking is, who are the consumers of our products, what are they looking for, does non-GMO give us an advantage now, will it in the future and what are the tradeoffs?” A genetically modified organism (GMO) is one that has had its genetic material altered using genetic engineering techniques. That could include an organism that has been altered by the addition of genetic material from an unrelated organism or altered without the addition of genetic material. For example, genetically modified crops can be engineered to be insect resistant or herbicide tolerant. There are many ways the technologies can be used and if they can be proved to be safe in New Zealand they may be able to help us in the future, O’Connor said. “I think we need to have a discussion on it because it’s a reality out there. “I’ve asked the question of people in the local marketplace – people from major companies across wine, dairy and meat – what they thought about it. They want us to have GMOs because they see the advantage in the marketplace. “I hear people say, ‘oh, it’s going to solve our rat problem, it’ll solve our possum problem and it’s going to give us more grass’. Maybe it will but there’s a lot of work to be done before that’s proven to be true.” A university researcher recently polled 9000 New Zealanders and found GM food is one our most divisive issues with only 66% of respondents agreeing GM food is safe to eat and nearly 30% saying it shouldn’t be sold here at all. NZ has a long history of debating GE food and there has been strong opposition to the release of GM crops despite strong scientific consensus GM foods are as safe to eat as conventional foods. But attitudes aren’t changing. Victoria University doctoral candidate John Kerr found 66.9% of survey participants said their opinion on GM food has not changed in five years. The findings reveal people with lower education or science knowledge are less likely to agree GE food is safe to eat. In NZ no fresh GE
vegetables, fruit or meat can be sold and processed food containing GM ingredients must be labelled. Parts of the farming community say they should have choice over whether to use GMOs. Others, including National Party agriculture spokesman Nathan Guy say the GMO discussion needs to quicken its pace. “When you think about all these challenges that farmers are facing with climate change and unrealistic methane targets they scratch their head and say ‘Well, where are the tools to help us combat it?’”
I’m not dismissing GE technology – and neither would any sensible person – but you have to remember that we’re not just producing animals, we’re producing nutrients for people. Damien O’Connor Agriculture Minister The Government is putting NZ at a disadvantage by not addressing GE technology because it doesn’t fit its ideology, he said. Guy said AgResearch’s genetically modified High Metabolisable Energy ryegrass is not only resistant to drought but can help reduce methane emissions from livestock by 23%, lower urinary nitrate leaching and lower emissions of another greenhouse gas, nitrous oxide. However, prohibitive rules forced AgResearch to take its research to America. National’s latest Primary Sector Discussion Document released last month said the problem that needs addressing is that NZ’s law and regulation on biotechnology is now 20 years old. “Gene technologies have changed rapidly and become much more precise. “The risks are less and better understood making the current approach too restrictive.” Guy said the Government’s approach is blinkered. “They want emissions to be reduced but they’re not allowing any new technologies for farmers to pick up.” He also said the success of the Predator Free 2050 goal to eradicate mammalian pests by 2050 will require new techniques, public support and widespread implementation. An alternative option using biotechnology to produce sterile possums could result in a much reduced effort and
cost in the long run than the current approach. But Associate Environment Minister Eugenie Sage specifically excluded gene editing from funding for research related to the Predator Free 2050 goal, meaning she ruled out some of the most promising options, Guy said. Gene editing also has the potential to protect native trees. “There will some food producers who say ‘We get a premium from being socalled GE-free’ but no one has been able to prove to me as to what that premium is because it often gets wrapped up in animals outdoors, grazed year-round and pasture-based feed,” Guy said. “No one, as far as I’m aware, has done the detailed analysis to inform New Zealanders what that premium is worth.” All applications to release GMOs need to be approved by the Environmental Protection Authority. Since that change was written into law in 1996, coming into force two years later, only three GMOs have been approved – a vaccine for equine flu and two cancer therapies for clinical trial. The law was reviewed in 2015 but no real differences were made for those scientists and industries interested in GM and GE. In June last year the Ministry for the Environment told the Government in a briefing the regulations are becoming quickly outdated and are creating compliance issues. “Leaving a public conversation too long, eg two or three years away could mean that NZ risks missing opportunities, playing catchup on the international stage,” it said. In Europe 64 regional governments have declared themselves genetically modified organism-free. Several countries including the United States, Canada and Argentina have deregulated gene editing if the final organism doesn’t include foreign DNA. There’s a lot of speculation around the topic, O’Connor said. “I’m not dismissing GE technology – and neither would any sensible person – but you have to remember that we’re not just producing animals, we’re producing nutrients for people. “They have a choice as to whether they like it or not. “We need to have a sensible discussion. That hasn’t been developed yet but it is something we need to have in the future.” O’Connor said whether NZ agriculture adopts GE is a matter that is bound to be raised as the Primary Sector Council creates its vision this year.
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14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Fighting farmers left in the dark Neal Wallace neal.wallace@globalhq.co.nz
TAKING CONTROL: Southern farmers spearheading improvements to water catchments in Otago and Southland are, from left, Lloyd McCall, Tapanui, Raewyn van Gool, Mokotua, Ewen Matheson, Riverton, Alister Body, Tapanui and Craig Simpson, Landcare Trust.
WHEN the Southland Regional Council warned in 2011 the coastal Waituna Lagoon was at risk of becoming eutrophic the community knew it had to fight to ensure it was not pushed onto the sidelines. Local dairy farmer Raewyn van Gool told the
South Island Dairy Event farmers did not dispute the state of the lagoon but had to go into battle for the catchment and the community and at the same time understand what effect they were having and how they could solve the problems. “Once farmers knew what they needed to do they embraced the challenge and got on with it,” she says. The lagoon, 40km east of Invercargill, services a catchment covering 20,000ha and is fed by three main rivers. Recent land development contributed to a decline in water quality with elevated levels of ammonium and phosphorous. In the eight years since the council warning the community learned numerous lessons and van Gool says not all were to do with the environment. All farmers and landowners had to unite and fully understand the issues, the science behind them and how they could be addressed. They initially formed the Waituna Farmers United Trust to represent their views and van Gool says the community needed some hard-liners, people prepared to take the fight on their behalf to regulators. DairyNZ, Beef + Lamb NZ and Fonterra worked together to scientifically determine the exact problem and develop a management plan, which was largely embraced by farmers. By 2012 70% of the recommendations had been implemented. Van Gool says they realised the importance of using an independent facilitator to remove personalities from discussions. A contentious issue with the coastal Waituna Lagoon was when and how often the freshwater body was opened to the sea to allow the flushing of toxic algae and planktonic cyanobacteria. The council policy is to open it only when it reaches 2m above sea level but historical records convinced the council to open it in 2017 even though it was below trigger height. The community also realised people and interest groups coming in from outside the region were often impeding progress, having not previously been involved in earlier discussions and decisions but demanding to be heard. Finally, van Gool warned communities not to be railroaded into making quick decisions that might not be the best for the community or the catchment. Particularly in those early years the community felt under siege despite following advice and making management changes to improve water quality such as planting, bridging and better effluent management. In 2015 public attention and scrutiny started to wane allowing farmers to focus on their business and steps to improve the lagoon but that also signalled the need for a change of the community leaders representing them. They had reached a point where they needed to switch from a hard-nosed lobbying approach to representatives who could negotiate conditions the community could live with. The community now has critical mass and made management changes, which has seen phosphorous levels fall and five-year trends for all other measures improve. But the community still feels left in the dark, especially about a $13.3 million, five-year catchment partnership programme involving Ngai Tahu, Te Runanga o Awarua, the council, Conservation Department, Fonterra, Living Water and the Southland District Council, she says. It aims to improve water quality and biodiversity, support cultural aspirations and support sustainable farming in the catchment but van Gool says there has been little discussion with the community about what it will do and how it will affect those living and working around the lagoon.
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FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
15
Group think clears the water The message to those attending the recent South Island Dairy Event in Invercargill was unequivocal: If farmers create an environmental issue they need to take control of the solution. Neal Wallace reports on how farmers are resolving water quality issues in Southland and Otago. FARMERS are the only people who can reverse the declining quality of Otago’s Pomahaka River, farmer Lloyd McCall says. The Pomahaka Water Care Group was formed in 2014 because the Otago Regional Council and the Landcare Trust were not going to improve the river’s water quality. “It’s got to be by farmers,” McCall says. “You couldn’t fix it by rules.” The council had in 2012 identified issues with nitrate and E coli levels, especially in the river’s lower reaches, which prompted the Landcare Trust to get stakeholders together to try to address the problem. The Pomahaka flows from the Old Man Range in the central
Otago mountains into the Clutha River near Balclutha. It has a 2020 square kilometre catchment passing 304 farms. McCall says most farmers were unaware of their impact on the river and the ecological and biodiversity values supported by the river and its tributaries. Conservation Department staff showed him native galaxiid fish in waterways on his farm, something he never knew existed. Concerned about the data showing the declining quality of the river McCall met five other farmers to discuss the water quality problem. They established the group, which, at its peak, had 160 members.
Not costly but big difference Neal Wallace neal.wallace@globalhq.co.nz
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ESTABLISHING a wetland does not need to be costly but the environmental impact can be significant, Landcare Trust Otago co-ordinator Craig Simpson says. As part of a trial in west Otago a wetland was established servicing a 49ha catchment that included water fed by a paddock drain. The wetland was fenced and planted and water sampled every two weeks at the mouth of
the drain and 50m downstream where the water left the wetland. The samples showed a dramatic fall in E coli while nitrogen levels reduced by a third. But ammonia levels remain high, possibly because of a nearby septic tank. Simpson says an unexpected result is increased nitrite level, which they think is linked to ammonia. The trap cost less than $2000 and each year they remove a cubic metre of sediment from it.
DIY: A wetland installed by west Otago farmer Alister Body.
The group aims for the river to have the highest quality water so future generations can enjoy it. That means a whole-ofcatchment approach because all farms can affect water quality but doesn’t preclude profitable and sustainable agriculture. The group’s plan involved testing water samples at various points along the river’s 80km length to define the extent of the issue and the problem spots. Four times a year the council samples water from 28 sites, which McCall says also has the benefit of showing individual farmers the impact of their activities and management. “You haven’t got a problem until you know you have got a problem,” McCall says. The group started raising awareness, has a regular media campaign and field days promoting farm management steps to reduce water degradation, such as preventing sediment runoff. Schools and the wider community are also encouraged to be involved. “It is all about taking ownership.” He says there has been a noticeable change in culture, which he attributes to farmers’ connection to the land and a desire to fix the water quality problem themselves.
It has seen major improvements in water quality in the mid and lower sections but not in the upper reaches because of continued land development. McCall says the group highlights excellent as well as poor farm practice while also showing interested groups such as scientists and academics what landowners are doing. Farmers are encouraged to confront those following poor practice and the group has members prepared to approach those letting others down. Riparian planting has been a significant tool and to ensure it has enough trees and shrubs the group has established its own native nursery with 22,000 plants ready to be planted. Further work includes trials on crop leaching and water infiltration rates and more work on wetland traps. McCall says improvement has not been as desired for phosphorous but monitoring of other nutrients and measures is trending positively. Alister Body farms sheep and deer and grazes dairy cows on 380ha near Tapanui. His farm has six main discharges into the river. The quality of some are fine, others not so. Water testing narrowed his focus to minimising the mobilisation of sediment over his
land during rainfall, which is the main source of phosphorus and E coli. He has fenced all but 100m of his farm’s 3.5km river frontage and takes care managing areas where discharge is potentially greatest. That means refencing his deer unit to reduce or minimise the impact of tracking and wallows and reducing runoff by careful selection of paddocks for winter cropping and the class of stock being run in steep paddocks. Body has also changed his cultivation methods, leaving critical source areas untouched and establishing sediment traps and containment areas. The aim of traps is to slow runoff by channeling it into traps to allow sediment to settle. He has built a network of multiple traps or wetlands in several paddocks into which runoff, including that from tile drains, is channeled to collect sediment. They must be cleaned out and he is soil testing the sediment to see if it has any nutrient value. It has been rewarding addressing the source of water degradation emerging from his farm and finding those issues is quite simple. “If you are to do one thing, do a discharge water test from your farm,” he says.
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ACVM No: A3977. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animalhealth.co.nz NZ/NLX/0518/0003b(1) © 2019 Intervet International B.V. All Rights Reserved.
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16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Log values take slump in China Richard Rennie richard.rennie@globalhq.co.nz A MIX of trade war tension, weaker Chinese currency and burgeoning stockpiles of logs in China have contributed to a sharp and sudden slump in log prices. The US$15 a cubic metre price drop for A-grade export logs means there was more price movement in one week than the in past two and a half years, AgriHQ analyst Reece Brick said. Reports from China indicate the stockpiles of pine are now approaching five million tonnes, well in excess of the usual stocking levels of 3.5-4m tonnes at this time of year. There has been some underlying nervousness among Chinese log buyers over the past few months, partly as a result of pressure coming from the United States on Chinese trade where US markets for Chinese manufactured wood products now have a 25% tax applied, Brick said. There were some indications of a fall starting in May when prices dipped. Chinese processors became increasingly nervous and started to shy from making significant forward purchases. Forest Owners Association
president Peter Weir said there are a number of supply factors playing into the drop. It might take at least six months to work through the system, depending on off-take from Chinese wharves. Seasonally, the Chinese construction market typically starts to slow now for that country’s hot season, before picking up pace again nearer October. A sales slump experienced by higher cost supply countries like Uruguay two months’ ago was a signal things were starting to tighten up. “They have not said no to NZ timber, which they like, but they have dropped the price.” Meantime, NZ has continued to work its way through the wall of wood from 1990s plantings, making exports from the first half of this year the highest volume in history. That came just as alternative supplies have become available from Russia and Europe. There is also greater supply competition from high-quality timber being exported via a new rail system from Russia and Scandinavia to China, already sawn and ready for processing. “That, in turn, makes it tough
SLUMP: Forest Owners Association president Peter Weir believes it might take at least six months for log prices to recover.
for Chinese mills that process logs from NZ,” Weir said. Meantime, at this time of year NZ log quality is affected by a blue fungal stain, the result of longer shipping and holding periods over the hot season. “So, as a wood it simply is not as attractive as the alternatives coming in.” Alternative supply is also being boosted by timber harvested from
a major windstorm last year in Europe, with access for it to China aided by the train network. Weir said it might well take until the end of the year for the stockpile overshoot to reduce to a more manageable level. Meantime, the impact on logging companies here might start to bite sooner. “It will be those operators who harvest smaller woodlots that will
really feel the pain of this. “The big corporate forestry companies are working with their contractors to throttle back on felling work, sometimes by stopping work for one week in four. “This has only really just happened in the past week or so. “So the handbrake is still going on and only time will tell how much.”
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FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Arable sector faces a huge system change Annette Scott annette.scott@globalhq.co.nz
“The global movement of plantbased food is not a fad, it’s a real thing. “This presents opportunities for us on how we can meet new markets, consumer demand, product diversifications and biodiversity within integrated farm systems.” Lawrie questioned new crops or new products from existing crops. “We don’t want to replicate or reinvent the wheel but can we create new markets for them. “Do we need to look at those who can afford or want to afford $14 for a packet of spaghetti?” Capturing the value of local opportunity in eat-NZ initiatives is key going forward. Lawrie said high-quality and speciality grains for the milling industry and high oleic acid sunflower production have emerged as promising options and FAR is working with the industry to increase the area sown in some of these crops. “A series of factors is changing the way we look at farming systems into the future and FAR, along with government and
REAL THING: Foundation for Arable Research general manager Ivan Lawrie says the global movement of plant-based food is not a fad, it’s a real thing. Photo: Annette Scott
private entities, is involved in a series of projects at regional and national level to find new, sustainable and profitable options for land use. “Some of these changes may involve the introduction of new crops, others aim to extract value from existing crops while others involve a whole change of the system to better suit soil types or the development of totally new, locally based industries.” Lawrie said identifying FAR’s role in the changes is challenging. “Previous efforts at developing new markets have had mixed success, often not growing market value, simply replacing
one industry player for another without providing benefits to growers. “A good starting point has been to identify market needs and where there is already a demand for a value-add product that can either be exported or used in the domestic market as a NZ grown component of food products.” Two projects being funded by the Primary Industries Ministry are working at regional and national level. The alternative crops for Wairarapa and the food products for the future projects aim to deliver crops that could be grown to meet those needs, Lawrie said. 13148
THE transition facing the arable sector is a huge challenge, Foundation for Arable Research chief executive Alison Stewart says. External challenges including environmental compliance and the right to farm, postborder and on-farm biosecurity, crop protection and economic sustainability mean the sector must now address how the future looks. “There is a need to join the dots in the arable sector and work as a cohesive unit. “Defining the priorities at the heart of that has to be maximising productivity, value and resilience and tie that in with environmental and social responsibility.” The speed of change has been dramatic with technology the key driver. On-farm innovation will be most important for arable farmers to stay relevant. “Short term fads, just ignore, they’re just a distraction,” she said.
“Trends, keep a careful watch, for example plants for protein. “Can New Zealand be in that space and be competitive and when do you jump into that space.” Global food movements including healthy, natural, sustainably produced, traceable, environmentally and socially responsible issues farmers could ignore at their peril. “But share knowledge, work collaboratively with each other, not against each other, and be prepared to change. “You can’t spend time being defensive on status quo. You’ll be on a hiding to nothing. “Think of yourself as a food producer and you are in the business of delivering food. “Don’t miss opportunities,” Stewart said. FAR general manager Ivan Lawrie said new cropportunities are a minefield. “There’s a lot coming at us so it’s to look at what’s doable in a short period of time with available funds and applicable to our regions.
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18 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Indonesia misses meat deadline Nigel Stirling nigel.g.stirling@gmail.com THE Government is weighing its options after Indonesia again failed to meet a deadline to comply with a ruling by the World Trade Organisation in its billiondollar beef dispute with New Zealand. NZ and the United States in 2016 successfully challenged rules blocking beef and horticultural imports into Indonesia. The decision was appealed to the WTO’s appellate court but the Indonesians lost again and were given till the middle of last year to implement the court’s ruling. While regulations blocking beef imports were scrapped the domestic legislation enabling them remained in place. Indonesia was then given till June 22 to get rid of the enabling legislation but it has again failed to do so. A spokesman for Trade Minister David Parker said NZ officials have since raised the matter with
their Indonesian counterparts in Jakarta and at the WTO’s headquarters in Geneva. “While Indonesia has made progress towards bringing its regulatory measures into conformity with the WTO decision, including removing the ban on secondary beef cuts, there is more that needs to be done. “Officials are currently reviewing the options open to NZ.” Those options include going back to the WTO either for a judgment on whether Indonesia has done enough to comply or to request it to enter into negotiations for compensation for its failure to do so. Meat Industry Association trade and economic manager Sirma Karapeeva urged the Government not to back down and to continue to push for full compliance with the WTO ruling. “The enabling legislation remains as is so there is the possibility that some time in the future it might get triggered again and with that some other type of
barrier that would impact on our exports.” Faced with that uncertainty beef exporters have downgraded Indonesia from their third largest market in 2010 to eighth largest today. “They are still exporting but they are doing it with slightly more caution than in the past,” Karapeeva said. Chapman Tripp trade law consultant Tracey Epps said if negotiations for compensation are unsuccessful the Government can seek WTO permission to suspend tariff concessions NZ had granted to Indonesian imports. Tariff concessions can be withdrawn only equal to the amount of damage that had been done to NZ’s exports to Indonesia. In August the Americans requested permission to impose US$350m of retaliatory tariffs against the Indonesians for their failure to comply with the WTO ruling. However, Epps does not expect NZ will follow the Americans by
CAREFUL: Meat producers are still exporting to Indonesia but doing it with more caution than in the past, Meat Industry Association trade and economic manager Sirma Karapeeva says.
requesting permission to retaliate even though the costs to the meat industry of Indonesia’s import restrictions have previously been estimated to be as high as a billion dollars in lost sales. “For a small country like NZ there is a question of what we could actually do that would impact enough on a country like Indonesia to force them into compliance. “It is hard to imagine that we would want to go down this route unless absolutely necessary.
“There is nothing to stop NZ continuing to talk at a diplomatic level to try to resolve matters.” Karapeeva has seen no indication NZ will use tariffs to retaliate against Indonesia. “We are just wanting to keep dialogue open with the Government to make sure they understand we are still interested and supportive of their work to bring Indonesia into compliance and to start talking about what are the options and what are the risks with each of those options.”
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FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
19
Take time to ensure all are safe perspective around managing wellbeing. “Farming is really hard work but in the long term there are benefits to your business of looking after your own and your workers’ physical and mental wellbeing. You might be able to work yourself to the bone for a few years but that isn’t sustainable for you or your business in the long-term.
This profile is the last in a seven-part series from WorkSafe sharing the health and safety approaches taken by the grand finalists of the 2019 FMG Young Farmer of the Year competition. shearing and I was fortunate to do a five-day shearing school course which covered safety, mainly around machinery,” he says. “I worked for a few shearing gangs of different sizes and there was definitely more of a safety focus in the larger ones. “In one job I was knocked unconscious while working with an old crank wool press. I was loading a bucket and let go and was hit by the spinning handle. I did notice things were starting to get better around the time I left shearing, about four years ago, largely due to awareness about the new regulations coming in. That included replacing old machinery, like wool presses, and better hygiene – you started to get proper washing facilities with running water in the sheds.” Watts says his own awareness around workplace health and safety has developed further as a result of PGG Wrightson’s commitment to building a strong culture among its teams. “The company has created a culture where people are not scared to question things if they are worried about a safety issue,” he says. “During my time in this role I have also seen farmers’ attitudes towards safety change. I spend most of my days on different farms, mainly walking the crops, and I find it’s rare now to find someone who is against good health and safety. Most of the farmers I deal with see it as beneficial and good for business. Things are changing. It’s unusual now to see someone on a farm bike without a helmet, for instance.” However, Watts still feels there’s still some way to go in terms of
I worked for a few shearing gangs of different sizes and there was definitely more of a safety focus in the larger ones. Joseph Watts
UNCOMMON: Technical field representative Joseph Watts rarely finds farmers who are against good health and safety.
recognising the importance of managing health and wellbeing in agriculture. “And health comes in two parts. There’s physical health and there’s mental health. “Like many people I have known someone in the sector who has taken their own life and seen the impact that has on their family and community. It was so unexpected, which shows how people often don’t talk about their distress.
“I do think the industry is making good progress in breaking down the stigma around mental health in rural communities and encouraging people to seek help and that is really important. “Physical health is connected to that. It is really important to manage your wellbeing. I think that, coming in from outside of the industry, I am not as exposed to that work-work-work mentality and I have a bit of a different
“It’s also important to recognise that everyone is different – just because one person might cope with working from 6am-8pm and I do know farmers who do that, it doesn’t mean other people can. I think more people are seeing that they have to take the long-term view – but there’s still a way to go on that.” Watts also sees more farmers simply making safety part and parcel of their business as usual. “People are recognising that it isn’t arduous and that once you have identified your risks and established your processes you might have to put 15 minutes a day into talking or thinking about safety and that is time well spent. “That goes for me too. Recently when I was driving out for the day I realised I didn’t have my folder with my haz notes. Two years ago I would have carried on driving but it took me five minutes to go back and pick them up. It’s about recognising that sometimes you have to take a little more time to make sure everyone is safe.”
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JOSEPH Watts had a slightly unusual journey into agriculture. The FMG Young Farmer of the Year grand finalist grew up in a city and was a professional squash player for several years. Now Watts, from Waipukurau, who will represent East Coast in the national competition, is a technical field representative for PGG Wrightson – having cut his teeth in the sector working on shearing gangs before gaining a graduate diploma in rural studies from Massey University. He has his wife, vet Lucy Dowsett, to thank for his passion for the countryside. The couple live on a 12ha site and also farm a small number of beef cattle – but growing up in Palmerston North, he knew virtually nothing about farming. “My father is a police officer. He did have a beekeeping business until I was about 14 so I had a little bit to do with bees but that was about it. After school I did a sport and exercise degree while also playing squash professionally for five or six years on the world tour. “Then I met Lucy at my local squash club while she was in the final year of vet school. She got a job at Raetihi, near Ohakune. I moved there with her and there wasn’t much work available for me so I took up shearing, did my agriculture post-grad extramurally and decided I wanted to be an agronomist.” Watts’ variety of work and study experiences has influenced his keen interest in health and safety. He also experienced his own near miss in a workplace accident, which could have resulted in more serious injury. “My first rural jobs were in
News
20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Top-down model turned on head Richard Rennie richard.rennie@globalhq.co.nz SOLVING agriculture’s wicked problems has prompted 14 entries to the Rural Innovation Lab’s call for farmers’ ideas. The lab has been founded at Massey University’s Palmerston North campus to engage with forward thinking farmers who might have an industry-changing idea that can be taken to commercial reality. The lab got $400,000 earlier this year from the Primary Growth Fund and $100,000 from groups including Massey, Microsoft, Food HQ and the Factory business incubator. Its concept came from work by Nuffield Scholar and lab chairman Mat Hocken whose scholarship work identifiied what he terms the wicked problems as the pressures of producing more food off less land start to bite. He identified the gap between innovation relevant to farming and how it is developed. The traditional top-down approach to innovation was proving harder to sustain given the rate of change and New Zealand’s tendency to silo research and development groups. By working with farmers and
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innovation companies Hocken formalised the lab as a means to get farmer-sourced innovation developed and commercialised. Lab vice-chairman James Stewart said once entries close three will be selected by an independent committee for further development. The priority areas relating to the wicked problems include technology that helps farmers get closer to consumers, create new business models and enhance farms’ environmental footprints. The other two areas are technology helping source data for better decision-making and getting greater value from regulation and compliance requirements. The successful applicants will have access to $15,000 for further development with support from Massey and The Factory and use of latest Microsoft technology. “The interest we have had from farmers has been fairly broad so far and there are some very entrepreneurial farmers out there who have concepts to put forward,” Stewart said. There is no particular trend in farmer age with plenty of older farmers exhibiting at least the level of innovation their younger peers have.
www.crmcphail.co.nz
INNOVATIVE: James Stewart welcomes the first round of ideas to the Rural Innovation Lab.
“And, in fact, some of those older farmers have had to adapt and innovate a lot over their careers so you would expect them to be in here. “Innovation for them is a mindset not limited by age.” The lab recently ran a digital boot-camp to put innovators and farmers in the same room, something that simply has not happened enough over the years, he said. “We got about 40 people. A lot
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were non-farmers but interested in what farmers are doing. “Something we found at Mystery Creek Fieldays was the number of innovative firms keen to talk and get on-farm more with farmers but did not know how and we aim to change that.” Manawatu appears to be developing stronger links between farmers and food producers, with greater engagement of farmers happening beyond the farm gate, he said.
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“We are also getting interest in some of the environmental innovation with AgResearch working on a project and advancing it.” The lab’s approach is starting to flip traditional top-down research and innovation models on their heads when research interests are approaching farmers to learn what they have come up with and can carry them further. Entries close on July 15.
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TIPS FOR WINTER GRAZING CROPS Soil is our greatest asset. Holding on to more of it makes good economic sense. Furthermore, too much soil and nutrients in waterways impact on water ecology and can kill freshwater species.
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Leave an ungrazed and uncropped buffer zone* around Critical Source Areas Critical Source Areas (CSAs) are parts of the paddock that can channel overland flow directly to waterways (e.g. gullies, swales, very wet areas, spring heads, waterway crossings, stock camps and vehicle access routes).
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On a sloping paddock, fence across the slope and start grazing at the top of the slope. That way, the wettest and riskiest areas are grazed last, minimising soil damage and leaving the ungrazed buffer to reduce soil losses. Or, if there is a waterway in the paddock, start grazing at the far end of the paddock. Make sure to regularly back fence and use portable water troughs when necessary.
Create an ungrazed buffer zone between the livestock and the waterway. About 3-5 metres is a good starting point*, but this should increase with slope and instability of soil. *check your local rules
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Newsmaker
22 FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Deer fascination lasts lifetime Geoff Asher’s passion for deer began when he was a youngster growing up in the Hutt Valley and has led to a 40-year career in deer research now capped with the industry’s highest honour. He talked to Annette Scott.
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ESCRIBED as a true legend who deservedly ranks highly alongside many of the deer industry’s pioneers and stalwarts, Geoff Asher is the 2019 recipient of the Deer Industry Award, the industry’s highest honour. His contribution to the deer industry was recognised with the presentation of the award at Deer Industry New Zealand’s conference in Wellington. Renowned for his passion for deer, his prodigious science output and for providing practical solutions to deer farming problems and opportunities, the leading deer production scientist at AgResearch was caught completely off guard. Feeling humbled but honoured Asher said he was blown away and for probably the first time in his life was lost for words. Asher has worked as a deer scientist for AgResearch and its predecessor organisations all his career, starting at Ruakura in1980 and transferring to Invermay in 1992. His particular interests are deer reproduction physiology and it all stems from growing up in the Hutt Valley. “I never grew up on a farm. My passion started from watching the wild deer across the valley from my house. I have had the passion virtually since I could walk. “As a 12-year-old I was wandering across the Akatarawa Ranges in the Hutt Valley spotting possums and then I saw this fawn looking for its mother. It was such a beautiful thing to see.” An enthusiastic and skilled hunter it was through his hunting experiences he realised his real love for deer.
“Through hunting I became acutely aware that deer are an amazing animal and from a science perspective too.” After completing his doctoral studies at Victoria University and making the call over geology and botany to focus on zoology Asher joined the newly established deer unit as a scientist at the Ruakura Centre in 1980. In his early work, under the guidance of mentor Ken Drew, he did comprehensive surveys of the fallow deer industry herds in the North Island. Later rationalisation of AgResearch work saw the Ruakura deer programme closed and Asher shifted to Otago to work at Invermay in 1993. With his specialist interests in research on reproductive performance Asher has run the Invermay programme since 2002, these days more related to venison. “Today I manage a much wider programme incorporating a broader suite of projects. “The move south was not a bad thing. There are more resources down here for the deer industry.” Asher has not only made a major contribution to the deer industry with his scientific work on reproductive systems in Red, Wapiti and fallow deer, he has also been very practical in sharing his expertise with farmers. “His expertise in basic biology of reproduction and breeding systems covers many fields and he has been very practical in transferring his knowledge to deer farmers,” Drew said. Drew attributed the success of Asher’s special breeding programme with the rare Mesopotamian fallow sub-species
HONOURED: AgResearch scientist Geoff Asher’s expertise and knowledge in deer research is sought after by farmers and fellow scientists with his 40-year contribution to the deer industry recognised with the industry’s highest honour. Photos: Phil Stewart
I have been privileged to work with deer, deer farmers and really great people in science. Geoff Asher AgResearch as an example of his exclusive research contribution to the industry. “This has been done at Invermay and today the species flourishes under an arrangement with AgResearch and a commercial farm in Hawke’s Bay.” Much of the industry’s understanding of the effects of
REWARD: Geoff Asher, left, is presented with his award by Deer Industry New Zealand chairman Ian Walker.
nutrition on reproduction success rate in Red deer has come from Asher’s work. “This work has enabled the industry to focus on achieving prescribed weight range in order to reach good calving rates. “This is a hugely important matter for deer farmers and getting it right has resulted in a spectacular lift in productivity and profitability,” Drew said. “I have no doubt his contribution to the industry in his specialist and general role is unmatched as is his commitment to AgResearch, DEEResearch deer farming and the transfer of knowledge and advice to the NZ deer-farming industry.” DINZ science and policy manager Catharine Sayer said Asher’s unparalleled knowledge in the deer research community has enabled the industry to identify areas of real opportunity where science can make a difference. “His mana has pulled into deer research programmes the leading experts in animal production and allied fields and his focus maintaining capability in core disciplines has ensured that the deer industry can continue to be innovative and demonstrate leadership in evidence-based practice development. “By encouraging the industry to invest in genetic improvement and supporting the development of the Deer Select platform the national herd has made permanent genetic gains in performance that have enabled NZ to increase its efficient and consistent production of premium quality products,” Sayer said. DINZ producer manager Tony Pearse said Asher’s contribution to Focus Farm projects, Advance Parties, Deer Farmers’ Association branches and field days, industry and breed conferences is highly
respected and studded with pertinent, practical analysis and advice. “He also has a record of building exceptionally strong science teams over his years at the leading edge in the study of science and biology of deer and there are many examples,” Pearse said. Asher said the people are one part of his 40 years in the industry that have stood out. “The people, connecting with farmers, I have really enjoyed mixing with farmers at many field days, conferences and more recently Advance Parties workshops.” From a science perspective he is proud of his international contribution to the deer industry, including the publication in international journals of more than 100 papers on reproductive physiology in deer. He has also chaired and coordinated two international symposia for the international fallow deer industries and authored Progressive Fallow Deer Farming, a definitive text for modern fallow deer. “Over the years I have been privileged to do a lot of research in most interesting projects and I am proud of the more than 100 papers I have had published. “I have also been privileged to work with deer, deer farmers and really great people in science,” Asher said. At almost 63 he is phasing in retirement, now working just three days a week while keeping his hand in hunting and fishing and enjoying his interest in geology and a spot of gardening. He’s confident he will leave the industry in capable hands. “When I do leave I will leave knowing there’s a great crop of keen, young, enthusiastic people coming through. They will need more funding but research will always need more funding.”
New thinking
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
23
Ballance goes green with hydrogen plant Nitrogen has always been the fertiliser for helping farmers to keep grass green and growing. But a Ballance-sponsored project aims to turn the nitrogen green and in the process fuel New Zealand’s next generation transport fleet. Ballance chief executive Mark Wynne told Richard Rennie about the proposal to be at the cutting edge of fuel and fertiliser production.
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ALLANCE’S gas to urea plant at Kapuni in Taranaki will become the first commercial venture in New Zealand to take sustainably sourced electricity and turn it into hydrogen gas to fuel vehicles. The farmer co-operative has been one of the country’s largest users of hydrogen for almost 40 years, chief executive Mark Wynne says. The Kapuni plant converts methane gas to hydrogen then ammonium then urea for fertiliser. The company is teaming up in a joint venture with New Plymouth hydrogen company Hiringa Energy for the $50 million project. With gas and oil exploration in the region to cease the gas hungry plant’s future is in the balance if an alternative source of hydrogen is not found. “We are also conscious of our carbon footprint and the need to
find sustainable technologies for the future,” Wynne said. “The Government also has its plan to offset emissions with more tree plantings. “But for us, when it comes to such large-scale industrial use of gas such as in our plant you would need thousands and thousands of trees. It makes more sense to find an alternative source of fuel supply over the methane we use at the moment.” Green hydrogen is produced using renewable electricity to power an electrolysis process, which, in turn, produces hydrogen and water. The technology to achieve that is well established but the challenge for many energy users is having a sustainable electricity source. “It is quite serendipitous that here where our plant is in Taranaki we have plenty of wind to provide that electricity source.” Electricity generated by the
PARTNERS: Ballance AgriNutrients chief executive Mark Wynne, left, and Hiriangi chief executive Andrew Clennett at the Kapuni plant.
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wind can be used to produce hydrogen through electrolysis, to power the plant or to feed back onto the national grid. Three or four wind turbines are proposed. Hiringa’s expertise includes staff with Todd Energy experience who are familiar with Taranaki’s energy opportunities. Chief executive Andrew Clennett said the project creates a foundation for a hydrogen market, helping remove something Wynne describes as the chicken-and-egg scenario that arises with disruptive new fuel technology. “At present we don’t have any hydrogen vehicles in NZ because there is no hydrogen supply but there won’t be hydrogen fuel supply until we have the vehicles. “Ballance effectively provides itself as the base load customer for hydrogen production while Hiringa develops the market,” Wynne said.
GOING GREEN: Ballance Agri-Nutrients chief executive Mark Wynne says the company will be a cornerstone for hydrogen fuel production.
The project is expected to generate enough hydrogen to ultimately power 6000 cars or 300 buses and trucks a year. Clennett said his company aims to develop a hydrogen supply and refuelling network focused on heavy transport fleets. Hydrogen has a high energy content by weight, with a hydrogen car capable of travelling up to 800km and being refuelled in five minutes. Its energy density makes it an ideal fuel for high-demand applications in heavy vehicles where the weight of batteries and charging times render electric engines less viable. Wynne said there is also upside for Ballance in being able to market a nitrogen fertiliser with a lower carbon footprint than imported product. The plant is the only one he is aware of considering such a production approach. Internationally, the alternative energy discussion is breaking roughly into electric in the United
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“It is quite serendipitous that here where our plant is in Taranaki we have plenty of wind to provide that electricity source. Mark Wynne Ballance Agri-Nutrients States and hydrogen in Japan debate. The likes of Elon Musk are in the electric camp while the Japanese government aims to make hydrogen cost-competitive by 2030. But Wynne and Clennett say the technologies could prove complementary for NZ. Hydrogen has the potential to reduce emissions from heavy transport and can be used in industrial processes, as Ballance will demonstrate, Wynne said.
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Opinion
24 FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
EDITORIAL
$9 lamb price is not a signal
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VERYONE, farmers included, likes a bit of extra cash in the back pocket. It’s especially so when you’ve put hours of hard work into making a product or growing an animal. You want to realise as much value as possible for that toil. Sheep and beef farmers often have a bit of choice when it comes to realising that value. They can choose when and where to sell their stock to a certain extent. News last week of a $9/kg lamb contract in the market has certainly grabbed the attention of some farmers, according to our analysts. It’s a limited offer from one processor but we’re already starting to see the flow-on effects of it in the store lamb market. At Stortford Lodge the price for male lambs lifted $15-$20 a head with an anticipation the margin will be there at processors down the track. Lamb prices have been pretty good for some time now but this new enticement is perhaps giving farmers the idea that if some can get $9 now then even more is in the offing later in the season. It’s hard to blame the processor here. It has a contract to fill and needs to pay to fill it. But with processor margins tight in recent years the industry is probably beginning to sweat a little. And farmers need to look at the bigger picture rather than the dollar signs right in front of them. Filling the piggybank now is always the preferred option but we’ve seen these crests crash on the beach in the past. For the industry to sustain itself everyone – farmers and processors – must get a margin that works. History tells us that when prices get unsustainably high the processors suffer and farmers are invariably left to ride out the inevitable trough that follows. Myopia has hurt us in the past. Let’s not let it blur the big picture again.
Bryan Gibson
LETTERS
Carbon farms won’t save world THE Ministry for Primary Industries has put out carbon look-up tables to help calculate the amount of carbon stored in forests. For post-1989 Douglas fir carbon sequestration drops rapidly as trees reach middle age and ceases beyond 140 years. The data reflects what is known as a climax community, where rate of growth of vegetation equals rate of decay/decomposition from dead trees, fallen leaves. The MPI data is thus not only applicable to Douglas fir trees. The same trend is true for all forestry – plantation or native alike. Any forest block reaching climax community stage ceases carbon sequestration. When Shane Jones, James
Shaw et al trumpet the planetsaving efficacy of tree-planting their vision is thus a somewhat limited one. At best planting trees will help mitigate against carbon emissions for just over a century. Beyond that, if the trees still live, their role in carbon sequestration is non-existent. MPI takes a similarly myopic view. Its website says “The Emissions Trading Scheme encourages landowners to establish and manage forests in a way that increases carbon storage.” Aren’t MPI being a bit disingenuous? Isn’t the truth rather that the ETS encourages landowners to establish and manage forests in a way that temporarily increases carbon storage? Are these encouraged landowners aware that carbon
sequestration of their trees will reach zero? If a landowner has planted trees and is making an income from selling carbon credits then the prudent financial thing to do is to fell the trees before carbon sequestration begins to decline. But with the trees being felled there is no longer any carbon sequestration. Plant again? Of course. But think about what has happened to the felled trees. If these felled trees are not preserved in some way and they rot, they return all their carbon back to the atmosphere and all the good of their carbon sequestration is reversed. Maybe the best way to preserve these trees is to shove them down a big hole in the earth and seal the hole
up. Sealed up and away from oxygen, organic material cannot rot aerobically. Given time, maybe these trees will turn into fossil fuels? Those farmers who pat themselves on the back for their far-sightedness in espousing carbon farming are a bit limited in their vision. Carbon farming is not saving the planet and at the same time generating income but is either temporarily storing carbon until tree harvest or, if the trees are not harvested, the term carbon farming becomes an oxymoron, for carbon sequestration will ultimately stop. The carbon farming has become akin to running a livestock farm devoid of animals. Terry Bunn Cable Bay
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Opinion
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
25
Ex-cop gets into farmers’ heads Barbara Stuart
T
HE Rural Support Trust was lucky enough to welcome Lance Burdett to the South Island earlier this year to talk to us about how our brains work. He is an incredible motivational speaker with a fascinating background that has helped to develop his own resilience. Burdett has worked with elite international tactical units across police, the military, emergency services, prisons and the Federal Bureau of Investigation. He specialised in suicide intervention and on predicting violent behaviour in his 13 years as a crisis negotiator and instructor for the New Zealand Police. He gave presentations to farmers and rural professionals at events across the South Island, supported by the trust. He spoke to Nelson, Richmond, Marlborough and Golden Bay audiences with more than 60 people at each event. He talked about the science behind how our brains function and building resilience in our rural communities. With farmers having a lot on their plates, from discussions about climate and carbon to dealing with Mycoplasma bovis it was encouraging to see so many people turn out for these talks. Audiences were engrossed by the practical examples of how the brain responds to stress. He discussed the nature of human reactions over time, from the era of cavemen to a modern setting. This included examining today’s busy daily lifestyle, our constant connection to devices and how we’re always alert. The advice was that we need to switch-off so we can relax and recover and that taking care of
BE HAPPY: Make small changes for a month and melancholy will begin to lift, Barbara Stuart says.
ourselves and valuing our health is important for the modern farming business. I’ve picked out a couple of points Burdett made, which struck a chord with me at the Nelson meeting.
Make positivity a way of life, even when it might feel difficult to do so.
“In this modern world our brains are too busy. They are in overload much of the time. The average person has 70,000 to 90,000 thoughts a day and it exhausts us. “Our brains all function the
same. We suffer from two types of stress. Stress from fear or excitement and stress from worry. Worry happens at night and robs us of good sleep.” Burdett gave tips to control worry and to get a good, restful sleep. He suggested walking for 20 minutes every evening, breathing techniques to relax and strategies to change thinking. There were helpful tips for building resilience to get us through the rough times, which are inevitable. It’s the simple things, such as daily exercise, finding time for enjoyment, having a laugh. Focusing on happy things will change our overall mood. He suggested making small changes for a month and melancholic moods will begin to lift.
We were encouraged to make positivity a way of life, even when it might feel difficult to do so. The Rural Support Trust is very supportive of the messages Burdett spoke about. We want our rural communities to be strong, manage stress well and support each other through difficult times. At some stage you might want to check how you are doing overall. We strongly recommend the Farmstrong Under the Pump checklist. It asks you questions that can help you recognise stress you might not otherwise have picked up. If you need extra support the trust is always available, whether it is just for a conversation over a cuppa or more extensive, ongoing assistance for the tougher times.
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Rural Support Trust 0800 787 254 rural-support.org.nz
Who am I? Barbara Stuart lives with her husband Ian and adult sons near Nelson. She has a background in sustainable land management and worked for the NZ Landcare Trust for many years as regional co-ordinator for the top of the South until her retirement. She now has a part time role with the Nelson-Tasman Rural Support Trust supporting farmers in adverse events and those involved in Mycoplasma bovis process.
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
26 FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Feds conference gets it right Alternative View
Alan Emerson
I’VE been to more Federated Farmers conferences than I care to remember. Somewhere between turgid and torrid would be where I’d put most. It was, therefore, with some pleasure I went to last week’s event. It was interesting, relevant and entertaining.
I felt good being part of the industry, I felt supported and believe the future isn’t going to be easy but it will be achievable. The people were different too. Not a crew of old blokes reminiscing about their school days in a few private schools but young and old, male and female, farmers, bureaucrats and industry. It was impeccably organised and I ended up feeling proud of being part of a vital New Zealand industry. Yes, there are problems as we all know but with a will we can handle them and go on to become bigger and better. We had a dynamic introduction from Feds president Katie Milne and fellow conference chairman Steve Maharey. They did a good
job setting the scene and keeping the conference moving. That was followed by Prime Minister Jacinda Ardern who I hadn’t seen perform in person before. She was most impressive, giving the distinct impression she knows and understands the issues and is capable of working through them. I can remember going to a Feds conference a lifetime ago when Labour’s Colin Moyle was agriculture minister. He was introduced as the right minister in the wrong party. Subsequent Labour agriculture minister Jim Sutton described Feds as the National Party in gumboots. That’s not so today. Ardern was given a warm welcome as was Agriculture Minister Damien O’Connor. NZ First’s Shane Jones spoke at the cocktail party and was highly entertaining. I’m sure many in the audience didn’t or wouldn’t vote Labour or NZ First but Federated Farmers has matured to the point they’ll work with the government of the day regardless of who it might be. That’s the best outcome for both parties. Ardern talked trade and markets and the importance of China. She said the environment is a critical part of NZ’s story and brand. There was the importance of the environment in trade negotiations and the long-term challenges of waterways, emissions, sustainability and trade. Reassuringly, she said change can’t be as rapid or uncaring as has happened and we don’t want jarring changes in NZ. You’ll be pleased to know the Primary Industries Ministry’s Situation and Outlook Report is all
O’Connor told the conference he sees NZ as the Swiss watch of protein products. He talked enduring, sustainable growth, which I support. Hans Johr of Nestle was inspirational, telling us about farming in the future and the changes that need to be made. It was a session not to be missed. There were other sessions on topics including block chain, attracting future farm workers and more options for the future. What impressed me most was the group of more than 300 committed to farming. We had top local and international speakers telling us of the issues, challenges, threats and opportunities. I felt good being part of the industry, I felt supported and believe the future isn’t going to be easy but it will be achievable. The conference was well run, Te Papa was an ideal venue and people mixed and mingled. Federated Farmers is to be congratulated. Talking to fellow geriatric journalists we agreed it was the best agricultural conference we’d attended. I’ll be back next year. Bailey started the reform of Federated Farmers over 20 years ago. He’d be pleased with the effective, committed, modern and strong organisation it has become. The board is young, diversified and dynamic as are the staff. All that tells me if you’re not a member of Feds you’ve rocks in your head.
WITH IT: Prime Minister Jacinda Ardern was most impressive talking to the Federated Farmers conference about trade and markets.
positive going forward. Farming’s looking good. What I found fascinating was the growth in high-value exports with infant formula now worth $1 billion. Kiwifruit, blood products, honey, cherries and whole milk have also large increases in value. There was a panel discussion that included Dairy Companies Association chairman Malcolm Bailey and former politician and diplomat Sir Lockwood Smith. They told us farming could be even better with gene editing and reform of the Resource Management Act. I agree on both counts. Another panel included Forest Owners Association chief Peter Weir who said trees will be planted on flat and rolling land and fertilised in future. He
predicted an earthquake would devastate Wellington so it can be rebuilt in wood. I don’t think he impressed many. Dr Catherine Duthie from MPI biosecurity was highly convincing. With 770,000 containers and seven million passengers entering the country she certainly has a job to do. The dinner was great, the awards well deserved, especially the Outstanding Contributor to Primary Industries Award which was won by Oamaru Vet Dr Merlyn Hay. Hay is the young, committed vet who persevered to identify Mycoplasma bovis. The job she did was amazing and vital to farming in NZ. She spoke both humbly and well.
Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz
How to make $700 a day from trees From the Ridge
Steve Wyn-Harris
GET RICH QUICK: There’s good money to be made planting trees.
LET us talk about planting trees. It is, after all, the season for doing just that. I’m not planting the big numbers I once did, mainly because I’ve filled in all the places where trees were a better option but partly because I’m slowing down. I’ve planted something like 60,000 trees myself, which sounds reasonably impressive until I mention 30,000 were pine trees. I decided to start planting pine tree blocks in the early 1990s for several reasons. The high prices being paid for logs had caught my attention just like many others. I believed they would complement my farming
system and provide another income stream even though it’s a lumpy one. And, at the time, given the poor product prices we had been experiencing I couldn’t see any other way of getting out of debt without a capital injection at the end of my farming career. Over a few years I would order about 4000 seedings each year and cart them up into my little hills and start planting up and down hillsides that I’d cheaply fenced off. I’d do a few hundred a day and leave their mates in a nice, cool, shady spot and go off and tend to my flock and do some farm chores. I’d plant over the subsequent days until they were finally all in the ground. I must have planted them well because hardly any toppled. I followed my planting years by going through each block doing the low prune but by the time I was halfway through the medium prune I realised I was getting behind so got a contractor to finish that and do the high pruning as well.
But I did my own thinning and with the subsequent slightly highdensity harvest have concluded the chap who plants shouldn’t be the one making the thinning decisions. This year I had a 14-hectare replant where we had last year’s harvest. I didn’t even consider doing it myself this time. The contractor brought his gang of 15 fellows and they started in the frost at 7.30am and had planted 14,000 trees by 3.30pm. I ferried a few bags and got them water but mainly watched and chatted to them as they went about their business. There were two young fellows doing their first day. They had answered an advertisement. I watched them get some instruction on how to plant a seedling and reminded them a little later to give the trees a small pull up so the roots faced downwards. They battled away and both did four boxes or 400 trees. At 35 cents
Continued next page
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
27
Anzco confident horror year gone
ANZCO’s 2018 pretax loss of $38 million was the worst result in the company’s history. The exporter has traditionally posted a profit, even in difficult years for the meat industry, which has always had a chequered history, so it is critical to assess what went wrong and, more important, how to make sure it doesn’t happen again. None of the largest meat companies that publish their annual results, Silver Fern Farms, Alliance and Anzco, enjoyed a great year but, contrary to its previous performances relative to its competitors, Anzco had the worst of it by a considerable margin. Analysis of the figures shows record income more than offset by expenses and finance costs. The obvious questions for chief executive Peter Conley are what is going to change and how is 2019 tracking? At Conley’s invitation I visited Anzco at its new Christchurch head office where I met chairman Sam Misonou and the senior management team for a frank discussion, providing context for the 2018 performance and explaining the changes that will turn performance around this financial year. The first point Conley acknowledged up front is last year’s loss was totally unacceptable but was caused by a perfect storm of unfavourable circumstances, which Anzco is confident won’t be repeated. The first and most obvious
each they grossed $140 and I’m not sure they were considering returning for another day or that the quality control guy was going to let them.
And yet, all around the country contractors are struggling to get workers to turn up and keep coming back day after day. A couple of Fijian lads had been planting for two weeks and did 900 trees to gross $300 for the day and could make $1500 for the week. Typical Fijians, they were happy, friendly, polite and worked steadily at their task.
it will save as much as twice last year’s loss. To some extent supplier pressure and the competitive tension between processors will determine whether Anzco can achieve that but more attention to the single biggest expense item will go a long way towards getting the company back into profit. Other key factors are plant efficiency, overhead reduction, market returns and inventory management. Conley is confident the ovine plants are very efficient with $12m invested in automation last year in Rangitikei while the beef plants are generally in line with the rest of the industry. The two North Island plants at Bulls and Eltham have hot boning while the South Island plants still use cold boning because of the traditionally high proportion of prime. The consultants tasked with identifying efficiency improvements judged the plant configuration to be costcompetitive and told the company there doesn’t appear to be any low-hanging fruit. However, two specific measures implemented recently are expected to deliver considerable cost savings – following Costco’s decision to buy direct the closure of the Chicago office will save $2m a year while the change from divisional to functional business structure and consolidation of management and administration at the new head office will reduce overheads. Anzco’s owner Itoham, which has Mitsubishi as a major shareholder, not only provides financial strength but also opens many doors throughout Asia and the Middle East, ensuring the company has huge supply chain and distribution options. It has market influence in chilled beef and lamb, particularly in Japan where Itoham has a major retail presence,
A young Maori lad did 1000 and was in his off season from the meat works and was using the tree planting opportunity to get some money in. He told me he’d got off the dope in recent years, was working hard and saving money and had bought himself a house. I was very pleased for him and suggested he should knock the fags on the head as well but he reckoned that was helping him keep off the weed. Then there were a couple of fellows who have been planting for several years and they did 1400 trees to gross $500 for the day and $2000 for the week if they ended up with a full week. Finally, the rock star of the gang planted 20 boxes or 2000 trees. He’d grossed $700 for that day but told me it was a clean site for a replant so he had gone hard out.
All the same, it was a terrific effort and shows what a fit, keen and hard-working fellow can do and make if they set their mind to it. And yet, all around the country contractors are struggling to get workers to turn up and keep coming back day after day. The nursery released me the trees only when I reassured them I had the planters available to get them into the ground. Next job is to have a cull of the hares before they start vandalising my newly planted trees.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
IN THE PAST: Anzco chief executive Peter Conley is confident the horror year will not be repeated.
supported by restaurant sales that have a large role in educating retailers and end consumers. The main focus of Anzco’s business is on chilled and valueadded products where the largest margins can be made while frozen product must be handled very efficiently to ensure fast throughput. Last year’s record turnover proves the logic of the focus on maximising sales value though high livestock costs squeezed the contribution from the addedvalue part of the business, which now makes up 10% of turnover. Another profit improvement initiative will be shortening the supply chain and reducing inventories, which Conley admits haven’t been managed very well. For example, Japan has
historically held three months inventory and taken three months to collect debts. However, he is adamant the investment in the Lamb Company is totally justified by the margins and returns Anzco gets from its North American business. The commitment and support of its owner and the improvements to its business structure and operations give Conley confidence Anzco has already put last year’s loss behind it and is well on the way to a good profit for 2019.
Your View Allan Barber is a meat industry commentator: allan@barberstrategic. co.nz, http://allanbarber.wordpress. com
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factor was the cost of livestock procurement, which remained obstinately high throughout the year, swallowing an unsustainable percentage of the historically elevated market prices. While Anzco remains committed to paying its suppliers a fair price for their livestock, this year has seen a considerable improvement in the proportion of the final sale price retained by the company. However, there is still some nervousness about the opening price for lamb when the new season starts in October and how long this level will persist. Livestock manager Grant Bunting said livestock prices were set to guarantee maximum procurement numbers to satisfy a double-shift processing configuration, planned to capture a peak kill that lasts only a couple of weeks. Heavy competition also resulted in all weights and grades stock purchases, as distinct from schedule, causing an excess of incorrect specification lambs without a profitable destination. Anzco has since changed its focus to matching procurement to customer orders instead of procuring livestock to generate a contribution to overheads, which always used to be the industry’s justification for pursuing market share at any cost. Much greater emphasis is now being applied to optimisation of the three key factors of market, customer and product specification. Bunting also referred to livestock headage and commission payments for third party supply which Anzco no longer pays but livestock price creep as a result of other processors still using this system affects procurement prices as a whole. By my calculation, if Anzco can reduce its livestock cost by 5% as a percentage of revenue for the year
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On Farm Story
28 FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
FAMILY AFFAIR: Amanda Henderson with mother and father Wendy and David, and husband Jarred Sircombe, at Kairuru Farm, Takaka Hill, Nelson.
Photos: Tim Cuff
Keeping the farm in the family Kairuru farmer Amanda Henderson says there’s a whole lot more to farming than picking a paddock and putting some animals in it. The fourthgeneration sheep and beef farmer is dedicated to shifting the perception of New Zealand’s primary sector. She spoke to Luke Chivers.
W
HEN people think of agriculture, not all think of science, innovation and technology. But, thankfully, one South Islander is set on changing that. “I believe education is critical in the agricultural sector,” 33-yearold Amanda Henderson says. “Any way I can promote it, the better.”
There’s no office quite like it. Amanda Henderson Farmer Henderson has long been passionate about rural New Zealand, having grown up on her family’s 1400-hectare, 700ha effective, sheep and beef farm on the Takaka Hill near Motueka. “There’s no office quite like it. “I love my dogs, my sheep and my cows. They’ve always been my happy place.” But Henderson hasn’t always been on the farm.
She left home in 2004 aged 17 to study for an agriculture degree at Lincoln University. Not long after graduating Henderson moved to Southland to work on a dairy farm for a season. She then tried her hand as a technical field representative with PGG Wrightston in Culverdon for three years before moving to Otorohanga. That was in 2011 and it was when she met Jarred Sircombe, her now husband. He was a local working as a diesel mechanic on tractors. They met through a mutual friend from Lincoln University who was also living in Otorohanga. Returning home was always on the cards and so, too, was the goal of running her own farm. “Coercing Jarred to move didn’t take much. I don’t think my life would be complete if I wasn’t back here. “It’s just something very special that’s always ingrained in you when you’ve grown up on a property like this and you’ve got that sort of family history. It’s something that always draws you back.” So, naturally, in 2013, the couple moved to the Takaka Hill to help
run the Henderson family farm, Kairuru. The property is home to 1650 Perendale ewes and about 450 replacement ewe hoggets. The flock is mainly Perendales
but the couple do make the most of Suftex rams as terminal sires. They also have about 105 Angus-Hereford cows, two Red Devon bulls, one Hereford bull and 27 replacement heifers to give
them better selection criteria and increase cattle numbers. Kairuru is mostly made up of steep hill country, an ideal fit for the animals. “It’s really important to match
VIEWS: Amanda Henderson and her mum Wendy enjoy the views on the farm on rugged country with 300ha of bush feeding into the Abel Tasman National Park.
On Farm Story
what the breed can do and how well-suited that is for the country,” Henderson says. “Perendales handle the hard country well while Red Devons are really good converters of poorquality feed to meat, hold their fat throughout the winter as well as having good foraging ability and temperament. “When you’ve got quite an extensive block that’s really important.” The farm spans from State Highway 60 and includes about 300ha of virgin native bush, which feeds into the Abel Tasman National Park. “It’s a really amazing asset,”she says. “When we’re doing the big musters out the back we head up through the bush and come in behind. There’s just nothing like it.” Now, only six years in, they lease the farm. “Over those years, we’ve slowly taken on more and more responsibility and, as of the past two years, we’ve been leasing the farm off my parents, David and Wendy Henderson. “We’ve bought all the sheep and cows.” Kairuru was bought in 1910 and it’s been in the Henderson family since. “My dad has had a lifetime here, not to mention my granddad and my great granddad. “It’s great that we can carry that legacy on.” They run an extensive farming system focused on improving grass growth and the land by using the Four-S programme. “So, spreading fertiliser, particularly lime as the fertility on this place is relatively low.” PH can be as low as 5.4. It is a costly task requiring a plane to spread the lime. “That’s as finances allow.” Stocking is another focus.
“We’re trying to graze paddocks a lot better and increase our stocking rate. “Subdivision is a big one for us. We have a goal of building a new fenceline every year and, thankfully, we’re still on track with that so far.” Seed is another area. “Whenever we do put on fertiliser we throw out a bit of clover.” And stock water is an important development tool. “That helps with the grazing because if you can put a trough at the top of a paddock the animals are more likely to be walking and, therefore, grazing up there.” Kairuru’s pasture management is having a flow-on effect on the stock performance. “We’re trying to build stock numbers by increasing fertility. “We’re trying to follow those key things of subdivision, fertility, seed, stocking, stock water. We’re trying to get all the basics right to increase grass growth and reduce our reliance on that winter feed.” Winters are cold on the property that goes from 400 metres to 1000m above sea level. “So, even though we’re in the sunny Nelson province, it’s long, hard winters here. “Feeding out is a big part of our operation. In fact, we do it all winter, which is obviously due to the terrain of our place. We can’t grow any supplement on-farm so we have to buy everything in.” For the past 18 months they have leased a 27ha flat-to-rolling block at Upper Moutere, 38km southeast of Kairuru. It includes about 5ha of lucerne. “We can grow a lot of supplement there,” Henderson says. “What’s really driven us to get that leased block is just trying to reduce our reliance on other people and having to worry each year about how much supplement we’re going to get. “We’re trying to keep everything more in-house so we can have more ownership of everything that’s happening. “It means we can feel more in control and don’t have to be at the whim of the season. It also means we can say we’ll fatten a few lambs for ourselves and don’t have to just
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
29
FEEDING OUT: David Henderson and son-in-law Jarred Sircombe make sure the stock don’t go hungry.
offload all at once. And it saves us time and money.” It’s diversifying their cashflow. “Now we can make supplement throughout the year and fatten a few calves ourselves and fatten lambs. “We’re now bringing about half our requirements in from that leased block. It gives us options.” But in recent years with the returns on crossbred wool being so poor they have selected 100 of their two-tooth Perendales this season, based on their wool type, and put them to a Merino ram. “We like everything about the Perendale apart from its wool,” she says. “So, we’re seeing if we can create a tough, halfbred that will produce a good mid-micron wool. “It’s nice to have a mix of wool going across your wool table.” Despite rain of up to 2.5m on the Takaka Hill the halfbred wool is holding up well, keeping its colour. Whether they continue will depend on the quality of the wool and health of their sheep. But they
TAILOR MADE: Amanda Henderson and Jarred Sircombe like everything about Perendale sheep except for the wool so are trying to develop a halfbreed to get a better fleece.
always want to continue breeding a Perendale flock due to the breed’s suitability for the country, which might mean running a split flock down the track. They already supply the New Zealand Merino Company under its ZQ accredited ethical wool brand.
So, we’re seeing if we can create a tough, halfbred that will produce a good midmicron wool. Amanda Henderson Farmer “Obviously the finer we get, the more markets that will be available to us but it will be the 26 to 27 micron bracket that these halfbreds will fall into. “We do minimal treatments. Less air movement and less humidity than other areas mean we get less flies and we have quite a low stocking rate. “This season we had about 4.2 stock units per hectare. “But feet are going to be very important when we select our Merino rams so that they have good feet given we have a fair amount of rain. “Perendales have good maternal attributes, less health worries and are easy care so we don’t want to compromise on that by putting the Merino over them. We’ll be watching that as the 100 come through.” Henderson says seeing the farm through Sircombe’s eyes has been particularly helpful. “He’ll look at things in a different way and we both have our different strengths. “He’ll ask all those questions that get you thinking why have we always done it like that and are there are better ways? “For instance, we used to have quite a large calving spread but Jarred has really focused on that and cut our spread down by using
multiple bulls and rotating them,” Henderson says. “We’re now running fewer cows per bull, using smaller paddocks over mating and brought the calving date forward by seven weeks. Plus, pregnancy testing the cows has helped to identify empty cows to cull and identify late calvers.” But it is still a late calving farm. “We typically start around October and we’re weaning in May. “Normally everything would go straight off mum but this year we sent 14 of the steer calves down to the leased block to finish them off. That’s purely because it’s quite nice to see some stock until the end. We always see our replacement heifer calves coming through but we don’t usually get to see our steers.” Everything else is sold as calves come weaning. Last time they pregnancy tested their cattle had 98% in-calf. Lambing is in late September. “We sell them straight off mum at the end of January. “What can go to the works goes otherwise everything else goes store. We retain about 200 lambs for the lease block.” Their sheep tend to scan at 150% and tail at about 127%. They often get about half singles, half twins, which the couple are pleased with. In recent years Henderson has looked for ways to give back, particularly to her local farming community. In 2013 she started serving in a part-time role as a tutor in the industry. “I work for a company called AgriLearn. “They’re based out of Timaru and have tutors scattered around the South Island. We get contracted out to Primary ITO to teach.” Henderson teaches Primary ITO levels three and four as well as production management. “At the moment, I’m mainly running the dairy courses but I also teach sheep and beef. >> Video link: bit.ly/OFShenderson
World
30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Mercosur deal upsets farmers EUROPEAN Union officials have been accused of selling out agriculture after striking a trade deal with the Mercosur bloc of South American countries that opens the European market up to greater imports of cheap beef. The agreement, which will cover Argentina, Brazil, Paraguay and Uruguay, comes after two decades of negotiation. EU president Jean-Claude Junker described the pact as an historic moment that will boost EU exports of cars, machinery, chemicals, pharmaceuticals, clothing and footwear. But EU farm leaders have reacted with alarm, highlighting the effect it will have on the beef, poultry and sugar sectors, in particular. Under the terms of the agreement the Mercosur bloc will be able to import 99,000t of beef into the EU at preferential rates. Though the EU already imports almost 270,000t of beef from South America, that is at higher tariff rates than will have to be paid in future. The EU has also agreed to improved conditions for a quota of 180,000 tonnes of sugar. EU farmers’ lobby group CopaCogeca said it deeply regrets the substantial concessions made on the agricultural side to facilitate gains in other sectors. “Considering the huge difference in production standards, the imports of Mercosur’s agricultural goods will de facto establish double standards and unfair competition for some key European production sectors, putting their viability at stake,” it said. Irish Farmers Association president Joe Healy said EU negotiators have colluded in a deal that sells out Irish and European farmers. As big exporters of beef the Irish will be particularly affected by the deal because, combined with Brexit, it could see the EU’s
“Even though the quota is for hormone-free beef it will not be produced to our much higher quality, welfare and environmental standards. “We are calling on the EU Commission to grant beef, sugar and poultry meat sensitive status to allow us to trade on equal terms.”
It is a disgraceful and feeble sellout of a large part of our most valuable beef market to Latin American ranchers and factory farm units. Joe Healy Irish Farmers Association
BIG MONEY: The European Commission will make a ¤1 billion support package available to farmers in the event of market disturbance from the Mercosur deal, agriculture commissioner Phil Hogan says.
self-sufficiency in beef increase to 116%. The Mercosur countries can also produce beef more cheaply than EU producers, meaning they will be able to undercut European production. “This is a bad deal for Ireland and for Irish farmers, it’s a bad deal for the environment and it’s a bad deal for EU standards and consumers,” Healy said. “It represents a back room deal with big business and kowtows to the likes of Mercedes and BMW in their drive to get cars into South America. “It is a disgraceful and feeble sellout of a large part of our most valuable beef market to Latin American ranchers and factory farm units,” he said. EU agriculture commissioner
Phil Hogan admitted the agreement will bring challenges to European farmers but argued that overall it is fair and balanced, with opportunities on both sides. The commission has promised it will make a €1 billion support package available to farmers in the event of market disturbance. The agreement will also provide the EU duty-free access, subject to quotas, to the Mercosur bloc for cheese and other dairy products. Additionally, the Mercosur countries have agreed to put in place legal guarantees they will not imitate 357 high-quality European food and drink products that have geographic protected status. Britain’s National Farmers Union said before being implemented, the agreement
will need to pass through all the national and regional parliaments of each member state, which could take a significant time. If the Mercosur deal is agreed and ratified by all 28 members of the EU, including the United Kingdom, before Brexit the UK will potentially look to roll the agreement over. However, if the UK leaves before ratification it is likely it will not seek to roll the agreement over and the UK and Mercosur members would therefore need to renegotiate their own trading relationship in the future. NFU international trade adviser Tori Morgan said the deal will expose high-quality British beef to unfair competition from meat produced to lower standards and with lower costs.
Morgan said the impact on both the EU and Britain could be even more pronounced after Brexit. She suggested that without the inclusion of the relatively strong demand for beef from British consumers Europe will be oversupplied – even without the Mercosur deal. “Self-sufficiency in beef across the remaining EU member states would rise to 116% if the UK left as planned,” she said. Industry commentators have suggested that Britain after Brexit will face a much more difficult task in exporting beef to European countries. If the UK is outside the EU customs union by the time the South American deal comes into effect, additional beef imports from Mercosur members could end up displacing some of the roughly 90,000t of beef the UK exports annually to the EU. UK Farmers Weekly
1
July 2019
Spring Calving Incl $8.95 GST
HAVE YOU READ DAIRY FARMER YET?
Thinking outsi the square de Greenhouse ga reduction will ses cost
Dairy Business the Year winnersof
The latest Dairy Farmer hit letterboxes on July 1, have you read yours?
A ray of light
Spring Calving It is not long until spring calving is under way. We take a look into calf rearing and general calf health.
Golden Bay far mer no
Get the full story at farmersweekly.co.nz
longer in a fog of depression
2460DF-12x7
Our On Farm Story this month features Golden Bay farmer Wayne Langford known as the man behind the You Only Live Once (YOLO) Farmer blog.
Real Estate
FARMERS WEEKLY – July 8, 2019
farmersweekly.co.nz/realestate 0800 85 25 80
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Ngatapa 136 Smith Road
First class production capability
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In the desirable Ngatapa farming community, roughly 15 minutes to Gisborne city, is this coveted 275ha (more or less) finishing farm. Incredibly well positioned with a very favourable mix of contour and production capability this farm is poised to drive performance and capitalise on a range of income streams. Comprising of 65ha of fertile flat land, with capacity for intensive finishing, cropping and further horticulture development of which 35ha are on separate titles. The flats are complemented by strong, clean hill country, equipped with a robust reticulated water system supporting thriving stock performance. The farming profitability is further enhanced by the 8ha citrus orchard. Boasting a secluded, elevated four bedroom home and supported by quality farm infrastructure including the 3+1 stand woolshed. This is a profitable, high performing farm not to be missed.
Tender (unless sold prior) Closing 4pm, Wed 31 Jul 2019 10 Reads Quay, Gisborne View by appointment Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz James Bolton-Riley 06 868 5188
bayleys.co.nz/2751384
MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Boundaries Indicative Only
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FOR SALE WAINGARO QUARRY NGARUAWAHIA, Waikato
PRODUCTIVE PRIMARY SECTOR OPPORTUNITY
Waterfront Avocado Orchard KATIKATI 252G KAURI POINT ROAD
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3 ca/ha of 23+ yr old avos dripping with fruit, sit right on the harbour front, with plenty more room to plant. There are several beach spots on this property and many other spectacular natural features. The modest three bedroom home has sensational sea views, detached studio, shedding galore, grazing, wood lot and so many other unique features - it’s all here! Being sold plus GST if any. View at the open days - 7, 14, 21 and 28 July.
Durrelle Green P 07 549 3769 M 027 949 3725
E durrelle.green@eves.co.nz Web durrellegreen.eves.co.nz
Located in the North Waikato and known as the supplier of choice for long-standing customers including farmers, forestry contractors and civil construction companies, this easy to manage ‘one-man operation’ provides a cost effective and attractive opportunity for a wide range of purchasers.
+ 12.6926 ha freehold*
This sale includes the freehold title and the transfer of current consents.
+ Surplus to vendor’s requirements - will be sold
Call today for more information or data room access.
ASKING PRICE $800,000 + GST
+ 23,453m³ annual production* + 18 years of resource remaining* + “Preferred provider” for the Waikato District Alliance
JEREMY KEATING 021 461 210
1 August, From 1pm (unless sold prior)
HELD 247 Cameron Road, Tauranga WEB www.eves.co.nz/ektc2088 VIEW Sunday 10.30-11.30am
+ Waikato District consents in place
WYATT JOHNSTON 027 815 1303
*Approximate www.cbre.co.nz/180149Q39 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
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farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
FARMERS WEEKLY – July 8, 2019
RURAL | LIFESTYLE | RESIDENTIAL
OPEN DAY
OPOTIKI, BOP 1677 Takaputahi Road Queen Sells 300 Acres 123.5 hectares of pine trees and wilderness. Carbon credits, forestry, hunting, off grid getaway, motorbike or horse riding heaven. Around 30ha of 25 year old Radiata (mostly unmanaged) on flat to easy contour (pre 1990 was mostly grazed farmland). Balance is regenerating manuka scrub and natives. Remnants of fences and tracks mostly blocked by windfalls. Bring your boots. To access 4WD is essential to get through four stream fords. One and a half hours drive from Opotiki. Great neighbourhood. Be a pioneer and live your dreams.
TENDER
(Unless Sold By Private Treaty) Closes 4.00pm, Tuesday 30 July
VIEW
11.00am-1.00pm, Sunday 14 July
Andrew Fowler M 027 275 2244 E afowler@pggwrightson.co.nz Amanda Edwards M 027 463 3502 E amanda.edwards@pggwrightson.co.nz
pggwre.co.nz/TAR30593 PGG Wrightson Real Estate Limited, licensed under REAA 2008
REPUTABLE RIVER RD
Waione
206 HECTARES
For Sale by Tender Call now to view
206 hectares (509 acres) that range from river flats to medium hill country located in the reputable farming district of River Road, Waione. With approximately 100 hectares cultivatable, the property comes with a good fertiliser history, 4 stand woolshed and yards as well as additional ancillary buildings, finished off by the four bedroom homestead. Tender closing 4pm, 14th August 2019 (if not sold prior).
Jerome Pitt M: 027 242 2199 O: 06 374 4107 E: @jeromep@forfarms.co.nz
Connect with the right audience at
farmersweekly.co.nz/realestate
LK0068450©
www.forfarms.co.nz - FF2854 Property ID FF1299
Land is the biggest asset to any farming business so it pays to stay up to date with the market.
LK0098461©
Contour + Soil Types
www.forfarms.co.nz
THE DESTINATION FOR RURAL REAL ESTATE
Helping grow the country
NZ’s #1 Agri Job Board
Orari Gorge Station Orari Gorge Station is a progressive 4300ha property ranging from river flats to rolling downs to steep tussock Country. It is a breeding, finishing and stud property totalling 25,000su. It is located in the South Canterbury foothills just 10 minutes from Geraldine which provides a choice of schooling and other amenities.
2IC
3700ha North Waikato Sheep and Beef Station. The property is running 40,000-45,000su, finishing all stock. The person we require will have: • A passion for sheep and beef farming • Experience in a team environment and staff management • Excellent stockmanship • A good team of dogs • Attention to detail and accurate record keeping • Good animal health knowledge and be technology savvy • Environmental awareness • Integrity
Southern Waikato
Kauri Station – Northland
Stockland Trading Ltd is a stunning, family owned property located just 30 minutes from Te Awamutu. With a structured approach to their business the owners have simplified their systems and developed this 1420ha (810ha grazed) operation into three areas; dairy grazing, bull techno system (two 70ha areas) and the filler block which supports the ewes and other prime beef stock.
Kauri Station is a stunning 1200ha coastal property situated in the magnificent Matauri Bay (30 minutes north of Kerikeri). The farming system includes Sheep and Beef breeding and finishing, Bull finishing and Lamb finishing. The cattle enterprise is made up of 300 breeding cows with all progeny finished along with an additional 500 bulls and steers finished. The sheep enterprise consists of 1800 ewes and 600 hoggets with additional lamb finishing.
This is an outstanding opportunity for a Stock Manager to work alongside supportive owners who place strong emphasis on employee well-being. The appointee will be responsible for the day-to-day running of the stock including rotations, pasture management and animal health and will have involvement in the overall farm stocking policy, resulting in an interesting and varied workload.
This Station Manager role presents a unique opportunity to run a commercially focused farming unit that has interaction with a wider hospitality business including the Kauri Cliffs exclusive lodge & international golf course. The Station Manager will be responsible for running all farming operations including stock management, farm maintenance, health & safety, management of key external relationships and leading a team of valued farm staff. The appointee will work with the Farm Supervisor to set strategy and farm budgets, design and implement a development programme and monitor farm performance with computer software such as Farmax.
Excellent stockmanship and pasture management skills, strong communication skills and the ability to embrace the use of modern farming software such as FarmIQ and Farmax will ensure your success in this role.
Proven farm management and farm business skills, strong communication skills and a genuine desire to be part of a business looking to go to the next stage are all desirable attributes of the successful applicant.
On offer is an excellent remuneration package and a warm, tidy three bedroom bungalow. There is a school bus at the end of Duncan Road to Korakanui Primary School and Te Awamutu High School. To view a Job Information Pack or to apply, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 06 871 0450 (Reference #6077). Applications close 5pm Monday, 22nd July 2019 LK0098470©
Farmers Weekly
Station Manager
If you are a forward planner, driven by measured results and have a demonstrated passion for turning out animals that have reached their full potential then this is a role that you must consider. Furthermore, there is a genuine opportunity for the right applicant to be retained long term in this business with farm management and equity prospects both as future possibilities.
LOCHIEL FARMLANDS LTD
The position is a key role and would suit a person seeking to further their ambition on an intensive fattening property.
Stock Manager
Written applications and CV to: Kim Robinson – kim.robinson@xtra.co.nz or Lochiel Farmlands Limited, Private Bag Tuakau 2342 Phone 09 233 3155
Accommodation is a spacious family home on the station with world-class recreational activities including fishing, surfing and bush walks at your doorstep!
LK0098440©
Applicants can email robert@orarigorge.co.nz for more details and a full job description.
LK0098385©
The position requires excellent grazing management of both intensive and extensive systems for sheep, cattle and deer. Good team management, record keeping and communication skills are essential. The successful applicant will be responsible for the day to day running of the property as well as being involved in all strategy planning and development.
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Applications close 5pm Monday, 15th July 2019.
RECRUITMENT & HR
RECRUITMENT & HR
Register to receive job alerts on www.ruraldirections.co.nz
Register to receive job alerts on www.ruraldirections.co.nz
Senior Production Agronomist Pioneer brand Seeds is the world’s leading developer and supplier of advanced plant genetics and related solutions that improve the productivity, profitability and sustainability of farmers around the world.
WE ARE THE SOLUTION
Pioneer is represented in New Zealand by Genetic Technologies Limited (GTL) - a Yates family business which holds all the traditional values that have been developed and preserved during the family’s 230-year involvement in the seed industry. The Pioneer Long Look Philosophy as adopted by GTL in New Zealand has four principles, which guide how the Company operates its business. 1. We strive to produce the best products in the market. 2. We deal honestly and fairly with customers, employees and business associates. 3. We vigorously market our products without misrepresentation. 4. We provide helpful management information to assist customers in making optimum profits from our products. The GTL staff is a very close, united, passionate team. Over the years those who have joined the Company share and embrace the family’s values and commitment to supporting and growing the New Zealand maize and associated industries.
You’re reading the Farmers Weekly and so are the people you want to employ.
The Company is committed to continually developing and upskilling its employees to meet the changing needs of growers and the industry. GTL is looking for a Senior Production Agronomist to further strengthen its passionate Gisborne-based Seed Production team. In this role you will support and work closely alongside the Field Operations Manager to oversee and deliver the Company’s annual seed maize production programme. Senior level agronomy experience and a demonstrable infield crop management track record will be your base competency. We are keen to speak with people who possess the following core attributes: • Uncompromising values around work ethic and integrity • A commitment and passion to always maintain best-practice crop management and seed quality standards • The desire to expand your own knowledge, experience and abilities as technology and business needs change To learn more about this exciting career opportunity, please phone Deb Francis at AgRecruit on +64 21 224 5000. If you prefer, please send your CV with covering letter via www.agrecruit.co.nz by Thursday 25 July 2019.
To view a Job Information Pack or to apply, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 06 871 0450 (Reference #7025).
LK0098410©
Farm Manager
classifieds@globalhq.co.nz – 0800 85 25 80
GET IN TOUCH For all your employment ads Debbie 06 323 0765
classifieds@globalhq.co.nz
SEE PAGE 34
You’re different. You don’t just work hard. You work to win. Are you ready to be part of a global team that’s driving one of the most successful Super Premium wine companies on Earth?
Grower Liaison Officer Marlborough Delegat has earned a reputation as one of New Zealand’s leading winemakers achieving global success with our Oyster Bay brand. The foundation of our success is world class viticulture practices delivering Super Premium quality wine. We are investing in substantial future growth and we continue to invest in our established industry-leading grower programme which is integral to our long-term success. An exciting opportunity exists to represent our Grower Programme providing operational and technical advice on viticulture matters to our grower partners. Reporting to the Grower Business Development Manager, this position is responsible for building collaborative, enduring business relationships to assist growers in maximising their potential to produce quality fruit with varietal intensity and character. Our successful applicant will be tertiary qualified with a thorough understanding of horticulture or viticulture gained from experience in a structured environment. Previous experience in an agri-business development or sales orientated role would be advantageous. If you are looking to develop your career within a high performance team environment then please apply – www.delegat.com\careers
MORE JOB ADVERTISEMENTS • Hill Stock Manager • Operations Manager
LK0098409©
FARMERS WEEKLY – July 8, 2019
Agri Job Board
Noticeboard
Key attributes required: • A team player who leads by example • Organised and a good planner • Observant with stock and pasture management • A good team of dogs • Fit and active • Experience with horses would be an advantage
Do you have something to sell?
An excellent remuneration package is offered and a very comfortable 3-bedroom house with primary school bus at gate.
Advertise in Farmers Weekly
For more information please contact Mike O’Donoghue, Manager Ph 03 202 7720 evenings LK00/8491©
To apply please email CV to: office@glenaray.co.nz Applications close Friday 2nd August
CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com
Operations Manager Central Plateau
0800 85 25 80
classifieds@globalhq.co.nz
Tuatahi Farming Partnership is a progressive and growing farming business formed in 2010 by two Maori Incorporations. The Partnership engages professional management and is governed by a Board of Directors.
www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).
12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.
ATTENTION FARMERS
QUICK SALE! No one buys or pays more! 07 315 5553. Mike Hughes.
HORTICULTURE NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz
PROPERTY WANTED HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654.
FARM MAPPING FOCUS ON YOUR strengths with a farm map showing paddock sizes. Contact us for a free quote at farmmapping.co.nz or call us on 0800 433 855.
FORESTRY WANTED
NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide. We can arrange permits and plans. Also after milled timber to purchase. NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.
EnviroMate100™
The smart feeder that outsmarts pests – possums, rats & mice, stoats and more. www.ecoland.co.nz – 021 326 563 –
Whether you are in town or on the land, CCN can help you find that special Lady to enjoy your life with. Call for a FREE compatibility match to start meeting genuine ladies in your area seeking Companionship & Love today. Seniors Welcome. Please call 0800 446 332 www.countrycompanionship.co.nz
Brown Glassford & Co Ltd PO Box 39195 Harewood Christchurch 8545 Phone: 03 365 0881 Fax: 03 377 2991 Email: info@uwg.co.nz
PURCHASING FERAL DEER EARMARKERS
(FROM PRIVATE BLOCKS)
Our aerial operation can selectively cull your feral deer population and pay a royalty.
CEO BIRDSCARER
Farm Manager
DE HORNER
Operations and Logistics Manager
HOOF TRIMMER
Operations Manager Shepherd
WANTED FORESTRY/ WOODLOTS
Shepherd General Station Manager
(All volumes – big or small)
Stock Manager
We purchase standing trees, land and trees or harvest and market on your behalf. Working the Waikato area 2019/2020.
Tractor/Truck/Machinery Operator
*FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz
All paper work is done for you around health and safety, resource consent application and management.
*conditions apply
WE ARE THE SOLUTION You’re reading the Farmers Weekly and so are the people you want to employ.
GET IN TOUCH
For all your employment ads Debbie 06 323 0765 classifieds@globalhq.co.nz
Contact Lance McNicholas PHONE 027 294 7504 EMAIL mcnicholas@xtra.co.nz
50 TON WOOD SPLITTER 12HP, Diesel, Electric Start
Heavy duty construction for serious wood splitting. Towable.
LK0098228©
GUARANTEED PAYMENTS LK0096815©
Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz
LK0098365©
8kg ctn direct ex-grower
www.fromthefarm.co.nz
COUNTRY LADY LOOKING FOR LOVE!
If you have not already voted, we urge you to vote before the expiry date of 11 July 2019. If you have misplaced your voting form and require a replacement, please contact:
Agronomy
Applications should be made in writing including a cover letter, CV and at least three employment referees directly to Rob Holland.
Tamarillos
0800 436 566
This is a reminder to all growers of the importance of this referendum – maximum voter response is vital to decisions on the future of the Wheat Insurance Scheme.
Agribusiness
The position offers the successful candidates the prospects of significant career and skill development.
STOCK FEED HAY 12 EQUIVALENT squares $70. 15 equivalent rounds $75. STRAW 12 equivalent squares $55. BALEAGE at $80. Unit loads available. Phone 021 455 787.
NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....
On Saturday 15th June 2019 voting papers were sent to all Wheatgrowers to be returned by Thursday 11th July 2019.
2IC
The applicants need to have demonstrated: • Leadership skills working in a team environment, • The ability to develop people including themselves • Experience in, and understanding of, big station management – this is a large multi enterprise operation • High levels of competency in all technical and financial aspects of pastoral farming with a high level of industry knowledge
WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.
Referendum – Commodity Levies (Wheat Grain) Order 2014 Reminder to Vote
JOBS BOARD
Responsibilities – this is a working manager’s position with the following key areas of responsibility: • Operational Management – covering all areas including budgeting, targets, resource requirements and reporting • Planning, executing, reviewing and reporting against farm targets • Financial management and control • HR – management, recruiting, training, mentoring • Asset management • Identify opportunities, analyse and implement • Development of Strategy directly associated with the farm unit in conjunction with the Executive Team and Board
The closing date for applications is 19 July 2019
DAGS .25c PER KG. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.
farmersweeklyjobs.co.nz
Moerangi/Oraukura Station is a large sheep, beef and deer breeding operation with a bull finishing unit, wintering 25,350su on 2,572 eff ha. Winter numbers are 1,458 cattle, 13,700 sheep and 3,750 deer. The property is staffed by the Farm Manager, a head shepherd, three shepherds, a general hand, a part time fencer and a tractor driver. This property is farmed under a nitrogen cap being predominantly located in the Lake Taupo Catchment.
Email: projects@tuatahi.co.nz or phone 027 565 6661
BOOK A WORD only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80.
DOGS WANTED
Agri Job Board
Tuatahi is seeking a high level Operations/Farm Manager for one of its four stations located in the Central North Island. The Operations/ Farm Manager will report directly to the General Manager.
2½-YEAR HEADING dog. $2000. Phone 07 838 8709. Taupo. MALE CHIHUAHUA PUPPIES. Three months. Micro-chipped, inoculated, wormed, well handled, healthy and playful. Several colours. Phone 03 366 6256. VIEW SIXTY DOGS. Deliver NZ wide, trial, guaranteed. www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.
ANIMAL HEALTH
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
Call Debbie
DOGS FOR SALE
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.
LK0098484©
CLASSIFIEDS ADVERTISING
This is an outstanding opportunity to work in a supportive management environment with a strong emphasis on employee well-being.
ANIMAL AND HUMAN healer, also manipulation on horses and dogs. 8th-13th July, Kaikoura, Blenheim, Nelson, Murchison. 14th-20th July, Canterbury. 21st July - 1st August, South Canterbury, Otago, Southland. For more information phone Ron Wilson 027 435 3089.
SOFT, DURABLE, FREE draining rubber mats. Easy to clean. Call to order on 0800 686 287 – www. numat.co.nz
DOLOMITE
LK0098233©
The hill area is 12,000ha (4500 intensive and 7500 extensive) and the successful applicant will be responsible for day-to-day management of 13,000 Perendale ewes and replacements plus 1600 cows. Leading up to four shepherds is an important aspect of the job. The paddock area and the deer farm are under separate management.
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
LIVESTOCK FOR SALE
Call or email Aaron West 027 562 3832 aaron@westtreenz.co.nz for a no obligation appraisal
GST Special Price $4200 INCLUSIVE Very limited stock
To find out more visit
LK0098490©
FOR SALE
This rare opportunity is available at Glenaray Station, Northern Southland. Glenaray is in the stunning Waikaia Valley, where there is a strong local community. There are 12 permanent staff.
GOATS WANTED
CALF TRAILER MATS
ANIMAL HANDLING
HILL STOCK MANAGER
www.moamaster.co.nz Phone 027 367 6247 Email: info@moamaster.co.nz
Livestock
FARMERS WEEKLY – July 8, 2019
livestock@globalhq.co.nz – 0800 85 25 80
SALE TALK
AUSTREX NZ LTD
BUYING NOW
As she ran, she would flip up the hem of her nightgown and say “Super-sex.”
HOLSTEIN FRIESIAN Yearling Heifers FOR CHINA EXPORT
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
She ran up to an elderly man in a wheelchair, flipping her gown at him, she said, “Supersex.”
Enquiries to: Paul Tippett 027 438 1623 Colin Jordan 027 667 0903 David Kelk 027 644 1285 or contact your Agent www.austrex.com
S
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!
A little old lady who had lost her marbles was running up and down the halls in a nursing home.
L IV E TOCK EXPO RT E R S
He sat silently for a moment or two and finally answered, “I’ll take the soup.”
credit it to you.
Supplied by Lindsey Thompson
35
STOCK FOR SALE 214 ROM 2TH SIL SUFTEX 05.03 171%
400 SIL ROM FE TOL 2 TOOTH TEXEL RAM 06.03 (Singles) WAIHORA BRED
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R1YR Friesian BULLS 160-250kg R1YR STEERS or HEIFERS 220-250kg R2YR Friesian BULLS 400-480kg
STORE LAMBS 30-40kg
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8 1
Awards and website – Voyager Media Best trade/specialist publication farmersweekly.co.nz Vol 18 No 23, June 17, 2019
2019
Emptiness worries meat man $3.95
Incl GST
April 2019
Outlook is rosy those commodity prices will continue to stay up unless we coordinate and collaborate our sales N A global environment efforts. characterised by increasing “And farmers must still work uncertainty the primary hard to make sure they get a good sectors are continuing to profit.” deliver, Agriculture Minister Despite economic and political Damien O’Connor says. uncertainty affecting world Joined by 100 farmers and markets, New Zealand’s returns industry leaders at the National have remained solid and though Fieldays O’Connor launched there is continuing risk it is offset the latest Situation and Outlook to some extent by the weak report for Primary Industries dollar. (SOPI) produced by MPI. “This export performance by sector the across news great “It’s NZ’s primary sector producers with headline figures showing is all the more impressive continued growth.” the weakening global considering risen have Agricultural exports economic environment and $7.5 billion in the last two years the high degree of uncertainty but returns are expected to soften creating tensions across his year before growing again, international markets,” MPI O’Connor said. director-general Ray Smith Export returns for primary said. produce in the year to June 30 are However, given the uncertain expected to be $45.7b. international backdrop The report also predicts a slight and despite strong export fall in the coming year before performance the downside risks returns start climbing again, to to the forecast are heightened reach $48.5b in 2023. over the next few years. “Horticulture has continued Production and returns are to be the star performer with its the in expected to fall slightly in focus on the customer resulting next year before resuming its success,” O’Connor said. moderate momentum in the “The meat sector is solid and is medium term in meat, dairy and likely to continue that way given horticulture. the challenges in China with their Sustained Chinese and pork production. southeast Asian demand is aquaculture seeing also “We’re supporting strong prices and grow which is a real positive. the weak dollar is expected to “But farmers can’t assume
THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME$8.95 THEME Bree THEME THEMEdingTHEME & THEME THEME THEME THEME gene THEME THEME THEME ticsTHEME THEME THEME THEME THEME THEME THEME THEME Gyp THEME THEME sy Day THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME
Incl GST
Luke Chivers and Stephen Bell
I
than 7% this year to $45.6 billion, Agriculture revenue is expected to jump by more CHALLENGING: Primary industry export he attended with Prime Minister Jacinda leaders at the National Fieldays when Minister Damien O’Connor told industry Ardern.
We are moving into challenging economic environments and trade is being kicked around like a football. Damien O’Connor Agriculture Minister continue supporting export returns. “Strength in prices supported by an increasing proportion of higher-value products is expected
to sustain growth in dairy export revenue despite constraints on milk production growth,” Smith said. “NZ’s current run of export success over the past two years has occurred despite a rising sense of uncertainty in global markets. “This is in part because the products we trade in haven’t been directly affected so are and in part because the NZ dollar has fallen over the past two years. “However, these issues do provide an increasingly uncertain backdrop to the otherwise positive outlook.”
global economic growth expectations, rising protectionist sentiment and uncertainty caused by Brexit, United States-China trade tensions and outbreaks of African swine fever. But the bigger concern for NZ is their potential impact on consumer demand in Britain, America and China. “We are moving into challenging economic environments and trade is being kicked around like a football,” O’Connor said. “Our sector shouldn’t assume anything and will need to
Breeding top bulls for NZ
Still going strong after 50 years
Continued page 5
Moving on and up
Our New Brand Is Coming Soon while now we’ve
to But we’re changing our name DTS.
farmersweekly.co.nz
2516FW
For further information contact Nigel Ramsden 06 323 0761, 027 602 4925 or livestock@globalhq.co.nz
MARKET SNAPSHOT
36
Market Snapshot brought to you by the AgriHQ analysts.
Suz Bremner
Mel Croad
Nicola Dennis
Cattle
Reece Brick
Caitlin Pemberton
Sheep
BEEF
William Hickson
Deer
SHEEP MEAT
VENISON
Last week
Prior week
Last year
NI Steer (300kg)
5.65
5.65
5.40
NI lamb (17kg)
7.85
7.80
7.85
NI Stag (60kg)
9.00
9.00
11.20
NI Bull (300kg)
5.35
5.35
5.30
NI mutton (20kg)
5.40
5.35
5.10
SI Stag (60kg)
8.95
8.95
11.20
NI Cow (200kg)
4.30
4.30
4.40
SI lamb (17kg)
7.65
7.60
7.75
SI Steer (300kg)
5.45
5.30
5.35
SI mutton (20kg)
5.40
5.25
5.25
SI Bull (300kg)
5.10
5.05
5.15
Export markets (NZ$/kg)
SI Cow (200kg)
3.95
3.85
4.05
UK CKT lamb leg
10.00
9.75
9.17
US imported 95CL bull
7.94
7.99
6.78
US domestic 90CL cow
7.36
7.46
7.19
Slaughter price (NZ$/kg)
Export markets (NZ$/kg)
Last year
$/kg CW
South Island steer slaughter price
6.5
7.5
6.5
$/kg CW
5-yr ave
Jun
2017-18
Oct
Dec 5-yr ave
Feb
Feb
Apr
Jun
Aug 2018-19
Apr 2017-18
Jun
Last week
Prior week
Last year
Coarse xbred ind.
-
-
3.26
37 micron ewe
-
-
-
-
NZ average (NZ$/t)
Last week
Prior week
Last year
Urea
625
625
483
3.35
Super
321
321
302
4.75
DAP
833
833
750
Top 10 by Market Cap
CANTERBURY FEED WHEAT
Company
Close
YTD High
4.7
5.03
3.38
Auckland International Airport Limited
9.545
9.85
7.065
The a2 Milk Company Limited
14.95
16.98
10.42
Fisher & Paykel Healthcare Corporation Ltd
16.2
16.69
12.3
Spark New Zealand Limited
3.95
4.18
3.54
Meridian Energy Limited (NS)
480 440
6.75
$/tonne
$/kg MS
7.25
6.25
400 360
Jul-18
Sep-18 Nov-18 Sept. 2019
Jan-19
Last price*
320
Mar-19 May-19 Sept. 2020
DAIRY FUTURES (US$/T) Nearby contract
May-18
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
vs 4 weeks ago
440
YTD Low
Mercury NZ Limited (NS)
4.505
4.65
3.51
Ryman Healthcare Limited
12.27
12.5
10.4
Contact Energy Limited
CANTERBURY FEED BARLEY Prior week
2018-19
Fertiliser
Aug 2018-19
Grain
Data provided by
MILK PRICE FUTURES
5.75
Aug
2017-18
FERTILISER
30 micron lamb
Dairy
Dec 5-yr ave
(NZ$/kg) Apr
Oct
6.5
WOOL
Feb
8.5
5.5
5.0
Dec
9.5
7.5
4.5
Oct
South Island stag slaughter price
10.5
8.5
5.5
4.5
8.5
11.5
$/kg CW
$/kg CW
6.0
9.5
6.5
South Island lamb slaughter price
4.5
Last year
North Island stag slaughter price
11.5
7.5
4.5
5.0
Last week Prior week
7.5
5.5 5.5
Slaughter price (NZ$/kg)
10.5
North Island lamb slaughter price
8.5 $/kg CW
North Island steer slaughter price
6.0
Last week Prior week
$/kg CW
Slaughter price (NZ$/kg)
Ingrid Usherwood
8
8.08
5.82
Fletcher Building Limited
5.1
5.55
4.57
Port of Tauranga Limited (NS)
6.23
6.4
4.9
Listed Agri Shares
5pm, close of market, Thursday
Company
Close
YTD High
YTD Low
The a2 Milk Company Limited
14.950
16.980
10.420
Comvita Limited
3.210
5.420
2.920
11.930
12.000
9.400
2910
2915
3130
420
Delegat Group Limited
SMP
2425
2455
2530
400
Fonterra Shareholders' Fund (NS)
3.550
4.850
3.450
Foley Wines Limited
1.900
2.000
1.470
AMF
5620
5830
5900
Livestock Improvement Corporation Ltd (NS)
0.880
1.050
0.750
New Zealand King Salmon Investments Ltd
1.960
2.980
1.760
PGG Wrightson Limited
0.540
0.580
0.470
Sanford Limited (NS)
6.900
7.060
6.350
Scales Corporation Limited
4.710
5.130
4.340
SeaDragon Limited
0.002
0.003
0.001
Seeka Limited
4.850
5.350
4.200
Synlait Milk Limited (NS)
9.250
11.350
8.450
Butter
4750
4955
5100
Milk Price
6.40
6.40
6.40
$/tonne
WMP
380 360 340 320
* price as at close of business on Thursday
May-18
WMP FUTURES - VS FOUR WEEKS AGO
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
WAIKATO PALM KERNEL
3200
350
3000
$/tonne
US$/t
3100
2900 2800 2700
Au g
Sep Oct Latest price
Nov
Dec 4 weeks ago
Jan
300
T&G Global Limited
2.800
2.810
2.600
S&P/NZX Primary Sector Equity
15938
17434
15063
S&P/NZX 50 Index
10558
10558
8732
S&P/NZX 10 Index
10245
10245
8280
250 200
May-18
S&P/FW PRIMARY SECTOR EQUITY
Jul-18
Sep-18
Nov-18
Jan-19
Mar-19
May-19
15938
S&P/NZX 50 INDEX
10558
S&P/NZX 10 INDEX
10245
37
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
5.65
NI SLAUGHTER COW ( $/KG)
4.30
SI SLAUGHTER LAMB ( $/KG)
7.55
R2 HEREFORD-FRIESIAN STEERS, 340-385KG, AT WELLSFORD ( $/KG LW)
3.08
Rain is mostly welcome NORTH ISLAND
N
ORTHLAND has had some good rain but conditions under foot are still firm, which means pasture can be eaten rather than trampled into the ground. Farmers are in good spirits because they’ve hardly had to put on their wet weather gear. In the Far North calving started on June 20 and it’s gaining momentum further down the region. Around Pukekohe temperatures rose mid week and were followed by a rainladen front on Thursday. Suddenly the landscape was transformed from very dry to swampy in 24 hours with at least 60mm of rain. Soil moisture levels have been restored but drying out will be necessary for some machinery to start operating again. Rain in Waikato has been welcomed. Wells have been near record low levels and the region’s had less than 50% of its usual rainfall year-to-date. Calving will start in earnest next week on many farms but there are a few cows that have been quick off the mark and farmers are in the nuisance part of the season where they’re having to milk just one or two cows. There’ve been quite a few cases of nitrate poisoning. Some farmers have lost up to a dozen cows. Cows can be poisoned when they graze on new pastures that are in a rapid growth phase. The farmer we rang in Bay of Plenty was driving on the Matata straight when we called. The surf was looking impressive and the sun was out – quite a contrast to earlier in the week when 160mm of rain fell in two days. Rivers are up and there are puddles about. He says he’s as well set up for calving as he’s ever been in 25 years. Cows are in great condition and there’s oodles of feed. He’s also a kiwifruit grower and says when it’s been fine workers have been cracking through pruning gold kiwifruit vines. Our contact in King Country was just back from eight days away and reckons there’s more grass on the farm now than when he left. He’s spoken to another farmer who has finished scanning 3000 ewes and has a scanning rate of 162% – back a bit on usual. Taranaki had a good dump of rain mid week. The rain washed away much of what little snow there was on the mountain. Gisborne’s been mild and dryish. Lamb prices are going through the roof and are expected to rise. It’s not too hard to get $150 a head right now but that could lift to $160 to $180. There’s lots of evidence of changing land use around the region. Grapes are being removed and a lot of kiwifruit is being planted by investors from Bay of Plenty. Hawke’s Bay’s had good rain and that will put the brakes on doing much in orchards. A lot of apple trees are being planted though planting programmes won’t be able to get going again until the soil dries out a bit. A new variety called Dazzle is being planted in big numbers – it’s similar to Pacific Queen but is ready a couple of weeks earlier. Also, the little snack food apple Rocket is popular. Red strains of the Gala group are still going
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NOT ENOUGH: Buyers at the Broadwood Hereford sale in Northland have had some rain but it’s still firm underfoot.
in too. Hort consultant John Wilton says the average New Zealand apple grower has made more money out of Gala than any other variety – it’s a consistent earner, a high yielder and very popular in our major markets. Granny Smiths are also making a comeback. Fuji, Braeburn and older blocks of standard Royal Gala are bottom of the pops and blocks are being pulled out to make way for the new varieties. The first lambs are appearing on the flats. Manawatu had a run of seven or eight frosts and great days to follow but mid week brought rain. Soils are now muddy on the surface but not too wet. The moisture will freshen pastures. The low country’s having a great run and has grown a lot more grass than usual for the time of year. Wairarapa farmers have knuckled down for winter and are trying to make the grass they have last. The region’s had a string of frosts that, in sheltered places, didn’t melt during the day nor did ice on puddles. Soil temperatures have dropped. The farmer we spoke to says his scanning percentage for his mixed age ewes is back 20% on usual. The ewes had a touch of facial eczema so weren’t in optimum health at mating. SOUTH ISLAND A farmer at Upper Takaka in Golden Bay says he’s had an amazing winter so far. There’s plenty of feed, it’s mild and not too wet underfoot despite 78mm of rain on Wednesday. Dairy stock are transitioning from fodder beet and hay to grass and silage. Ewes on hill rotation are due to come in for scanning in 10 days while deer scanning’s done and the farmer says results are good with only 2% empty. In Marlborough a grape grower we
talked to at Renwick says vine pruning’s been stop-start this week. She doesn’t like pruning in the rain because of disease risks so when it’s wet she works in the winery where blending’s under way on the 2019 wines. Bottling’s due to start in mid July and first up are the Rieslings. West Coast dairy farmers, whether they voted for or against the sale to Yili, are having to move on now and do what they love and that’s working on the land. People are feeding out silage, break feeding and are getting milking machines serviced. Heifer calving is fast approaching on some farms so the new season is just around the corner. Canterbury’s had another amazing weather week with the temperature gauge nudging 20C on Wednesday. Ground conditions are dry, which is great for wintering stock as use is very high. There’s some concern about the lack of snow on the mountains and what that might mean for spring/summer river flows from snow melt. The first spring lambs are appearing nearer the coast. Sheep scanning’s under way in south Otago and our contact at Balclutha says so far results are 10% down on last year – very disappointing. He puts it down to the dry autumn. On the other hand, there have been only two frosts so far this winter and with 10mm of rain in the gauge for the week, pasture use has been excellent and stock are in good order. A dairy farmer near Mataura in Southland says calving’s due to start on August 1. His cows are on fodder beet, balage and grass. It’s been very wet with no frosts so grass growth is through the roof. In June alone he had more growth that what’s normally expected for the whole of winter. Mood-wise in the far south he says farmers should be in good spirits but everyone’s feeling under pressure and a bit down in the mouth.
Courtesy of Radio New Zealand Country Life You can listen to Country Life on RNZ at 9pm every Friday and 7am on Saturday or on podcast at rnz.co.nz/countrylife
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38
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
Grass growth to boost the market Rain was a welcome addition to last week’s forecast, keeping moisture levels up in some areas, while it is the first significant fall for winter for areas such as the east coast of the North Island. While it came too late in the week to have a direct impact on most sales, expectations will be for buoyant markets once grass responds. Store lambs continued to ride the wave of strong demand and high prices, with male lambs mostly holding at the previous week’s newfound levels while the ewe lamb market had a firm tone. NORTHLAND Kaikohe • 2-year beef-cross steers made $2.80-$2.86kg • R1 beef-cross heifers made $2.60-$2.70/kg • Vetted-in-calf beef cows lifted to $2.10-$2.20/kg There was around 500 head of cattle at last week’s KAIKOHE sale, PGG Wrightson agent Vaughan Vujcich reported. It was a similar story to last week where twoyear heifers struggled with better lines at $2.55/kg, while lesser types were below this at $2.30-$2.40/kg. Two-year steers were steady to lifting at the top end with dairy-beef at $2.75-$2.80/kg and Friesian at $2.50-$2.60/kg. There seemed to be more interest in yearling steers, which lifted these to $3.50/kg, while beef-cross bulls were steady at $2.60/kg. Vetted-in-calf cows strengthened this week, and Friesian earned $1.90-$2.00/kg. Wellsford store cattle • R2 Hereford and Charolais-cross steers, 366kg, returned $3.03$3.06/kg • R2 Hereford-Friesian heifers, 357-362kg, improved to $2.73-$2.82/ kg • R1 Angus steers, 214kg, lifted to $810 • R1 Angus heifers, 145-219kg, strengthened to $520-$675 • R1 Friesian bulls, 187kg, lifted to $570 A strong sale was helped by a solid bench of buyers at WELLSFORD last Monday. Results were positive across the board with most trading on a steady to improving market. R2 Angus-Friesian steers, 349kg, returned $3.01/kg, with similar Hereford-Friesian, 341-385kg, at $3.04-$3.12/kg. Heifers were strong, with all 342-411kg trading at $2.69$2.88/kg regardless of breed. R2 Friesian bulls, 375-393kg, eased to $2.58-$2.62/kg. R1 beef-cross and exotic-cross steers, 160-210kg, earned $505-$620, while beef-dairy, 136192kg, traded at $455-$490. Most dairy-beef heifers, 174255kg, improved to $450-$685. Ten mixed-age Hereforddairy cows, 488-565kg, vetted-in-calf to a Charolais bull, fetched $875-$1060.
AUCKLAND Pukekohe • Best prime steers lifted to $2.85-$2.94/kg • Boner cows earned $1.98-$2.03/kg • Good R1 store steers sold for $760-$950, $2.95-$3.10/kg Last week’s PUKEKOHE sale had solid prices for prime cattle despite varied quality, with some more forward store types than prime. Prime steers strengthened at the top end, with even medium steers earning $2.80-$2.93/kg. Prime heifers also made good money at $2.80-$2.87/kg and lesser types at $2.55-$2.73/kg. Younger store cattle varied, with quality types selling well and lesser types struggling. Medium R2 crossbred heifers made $2.70-$2.74/kg. Medium weaner crossbred heifers were bought for $365$580, while small weaner steers were $495-$505.
COUNTIES Tuakau sale • Weaner Charolais steers, 203kg, made $870 • Heavy prime steers sold up to $3.08/kg • Exotic prime heifers, 547kg, returned $2.92/kg • Good-medium store lambs fetched $95-$135 About 580 store cattle were yarded at TUAKAU last Thursday, Chris Elliott of PGG Wrightson reported. Heavier store steers sold well, with 500-560kg making $2.84-$2.91/ kg and 400-500kg, $2.72-$2.97/kg. Most 280-400kg steers fetched $2.70-$3.22/kg and good Charolais weaners, 162203kg, earned $760-$870. Hereford-Friesian, 128-175kg,
returned $590-$730. A small entry of Friesian bulls, 440kg, made $2.55/kg, with 410-440kg heifers selling at $2.70$2.82/kg. Most heifers in the 350-400kg range traded at $2.65-$2.85/kg, and 280-350kg earned $2.70-$2.85/kg. Charolais weaners, 150-190kg, made $640-$715 and 130kg Hereford-Friesian, $450. Heavy prime steers returned $2.95-$3.08/kg on Wednesday, with medium making $2.85$2.95/kg and light, $2.72-$2.85/kg. Heavy heifers earned $2.80-$2.92/kg and medium, $2.72-$2.80/kg. Boner prices eased. Good paddock cows traded at $1.88-$2.20/kg, with medium fetching $1.70-$1.85/kg and light, $1.50-$1.65/kg. Heavy prime lambs returned $155-$203 on Monday and heavy ewes made $130-$175.
WAIKATO Frankton cattle • R2 beef-dairy steers, 372-408kg, returned $2.82-$2.95/kg • R2 Hereford-Friesian heifers, 302-411kg, eased to $2.74-$2.89/kg • R1 Hereford-Friesian steers, 159kg, lifted to $645 • Prime South Devon and South Devon-cross steers, 535-582kg, managed $2.89-$2.91/kg • Prime Hereford-Friesian heifers, 415-491kg, improved to $2.86$2.89/kg A more moderate 700 cattle were penned at FRANKTON last Wednesday. R2 Shorthorn heifers, 346kg, were well received at $2.83/kg, while Friesian bulls, 450-498kg, held at $2.63-$2.65/kg. R1 beef-dairy steers, 210-271kg, were firm at $720-$850, while heifers of the same breeding softened, with 141-293kg back to $480-$760. R1 Hereford bulls, 150232kg, eased to $610-$720, while Friesian 187kg, improved to $570. All autumn-born R1 heifers, 101-136kg, traded at $390-$490, with beef-cross and beef-dairy bulls, 100-135kg, at $495-$500. The prime market lifted for most. Beef-dairy steers, 572677kg, strengthened to $2.89-$2.94/kg, as did South Devon and Red Devon-cross cows, 520-555kg, up to $2.01-$2.12/ kg.
BAY OF PLENTY Rangiuru sale • R2 Hereford-Friesian heifers, 300kg, made $3.07/kg • R1 Hereford bulls, 360kg, sold well at $970 • Prime steers varied at $2.90-$3.08/kg • Top boner cows made $2.12/kg • Top store lambs lifted to $128.50-$130 Last week’s RANGIURU sale was strong, with the mild start to winter helping demand for store cattle. R3 steers and heifers were mostly dairy-beef, 404-535kg, and held at $2.86-$2.90/kg. R2 steers were predominantly Angus, 469kg, which earned $3.13/kg, with the balance at $2.91- $2.98/kg for better quality and $2.60-$2.69/kg for lesser-types. There was good demand for R2 heifers with traditional and heavier Hereford-Friesian typically well sought at $2.88-$2.98/kg, with Friesian, 261-298kg, also lifting to $2.11-$2.18/kg. R1 Angus steers, 174kg, lifted to $730, with the balance of steers and better quality R1 heifers earning $625-$660. The market also strengthened for prime lambs, which made up to $186, and prime ewes returned $170.
TARANAKI Taranaki cattle • R3 Angus-cross steers, 507-547kg, made $2.94-$3.02/kg • R1 Hereford-Friesian steers, 298kg, sold well at $970 • R1 Hereford-Friesian heifers, 285kg, earned $815 • Mixed age Hereford vetted-in-calf cows fetched $1250 It was a wet day at last week’s TARANAKI cattle sale, and
the market generally held with volumes up year-on-year at 384 head. The top end of the steers held at $2.93-$3.01/kg, although per head values ranged from $680-$1545 due to some light cattle. It was a similar story for R2 heifers with most being bought for $2.67-$2.77/kg, although a large range of per head prices of $740-$1275. R1 cattle varied, most steers were 172-199kg and made $710-$810, and heifers were mainly 172-225kg which made $600-$670. Prime volume was limited although steers lifted to $2.98/ kg, and boner heifers and better boner cows made $1.97$2.00/kg.
POVERTY BAY Matawhero • Very heavy ewe lambs earned $140 • Medium store lambs mostly made around 127-$128 • Mixed age Wiltshire ewes varied at $117-$149 • Prime lambs sold for $150-$171 There was a good number of lambs at MATAWHERO last week with a lift in numbers to 2131 store lambs. This increase in volume seemed to cool the market with some lines easing, although there were some heavy lambs on offer, which meant the average price still lifted slightly to $137.70. The majority of male lambs were very heavy and sold for $152-$169. Mixed sex lambs mostly fetched an average of $128, while ewe lambs varied.
HAWKE’S BAY Stortford Lodge prime sale • Angus heifers, 486kg, lifted to $2.96/kg • Very heavy male lambs improved to $182-$209 • Heavy ewe lambs strengthened to $155.50-$179 • Good two-tooth ewes softened to $140-$143 • Very heavy mixed age ewes eased to $164.50-$175 Cattle numbers increased to 120 head at STORTFORD LODGE last Monday, and most traded at improved levels. Heifers outnumbered the boys and sold very well, and cows were also strong with Angus, 575kg, improving to $2.35/ kg. Both lamb and ewe throughput increased. Very heavy ram lambs held at $175-$191, and heavy to very heavy mixed sex, $157-$193. Two huge ewe lambs fetched $206, while other very heavy types lifted to $173-$188.50. Heavy mixed age ewes eased to $150-$151, though very good types improved to $140-$147, with good steady at $135.50-$136. Medium and medium-good ewes eased for the top end, returning $120-$131, while light-medium held at $95.50$119. Stortford Lodge store cattle and sheep • R3 beef-cross heifers with calves-at-foot made $1380-$1430 per unit • R2 Hereford-Friesian steers, 469-555kg, sold for $2.88-$2.92/kg • Six-year Romney ewes, scanned 160% to Poll Dorset, sold for $194 • Heavy male lambs held at $155-$165.50 • Good to heavy ewe lambs firmed to $140-$159.50 The STORTFORD LODGE sale last Wednesday was one of two extremes, with very low cattle volume but continued higher than usual lamb throughput. Just 66 cattle were penned, with only a few lines featuring. Three R1 HerefordFriesian steers, 330kg, made $1015, and heifers, 305kg, $900. Lambs took top priority in the sheep pens and male prices held the previous week’s strong levels, while ewe lambs improved. Quality was good across both classes and very few lines sold for less than $135. Most males made $140-$165, and ewe lambs, $135-$159. One big line of medium mixed sex made $136.50, while heavy wethers traded at $159.50.
MANAWATU Rongotea cattle • Two-year beef-cross steers, 415-547kg, made $2.67-$2.70/kg • R2 Hereford-Friesian steers, 355kg, earned $2.64/kg • Friesian boner cows, 566kg, made $1.94/kg • In calf cross-bred heifers made $830-$850 Prices remained buoyant across all sections, with the first of the spring feeder calves arriving at Rongotea, NZ Farmers Livestock agent Darryl Harwood reported. Friesian bull calves made $185- $255, Hereford-Friesian and Anguscross were $150-$300. While heifers earned $245-$305 for Hereford-Friesian and Angus-cross, and $300 for Speckle Park. Two-year Friesian steers, 430kg, made $2.40/kg, while Hereford-Friesian heifers, 330-502kg, strengthened to $2.53-$2.71/kg. Yearling Friesian steers, 203-225kg, made $1.77-$2.22/kg. R1 Charolais-cross steers, 275kg, topped their class at $745, while all bulls, 231-235kg made $590- $625, and heifers ranged from $410-$696. Weaner Hereford-Friesian and Angus-cross steers returned $440-$650, while bulls and heifers both earned $400-$560. In calf cows and heifers varied and cross-bred cows managed $715-$755, with Jersey cows $500-$600, and heifers $650-$800.
SALE YARD WRAP
FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019
39
The first run of male lambs were mostly $153-$168, though three pens went as high as $174-$178. Lighter male lambs offered in the second half of the sale were mainly $137-$147. For the ewe lambs, the early set of better lines were mostly $137-$149, though did get up to $153.50, while $118-$138 was the norm for the rest. In-lamb ewes were mainly sold in medium-to-small line sizes, with the better and/or high scanning ewes at $195-$211, and a few other decent pens at $174-$181. The rest were $132-$153.
CANTERBURY Canterbury Park • Top prime steers, 550-670kg, earned $2.80-$2.85/kg • Prime Hereford-Friesian heifers, 413kg, made $2.84/kg • Top prime lambs mostly fetched $180-$222 • Top store lambs sold for $130-$140 A small yarding of prime cattle at last week’s CANTERBURY PARK sale was met by an equally small bench of buyers, however the market strengthened. Heifers in particular lifted, with most of the better-quality types making $2.71-$2.78/kg. Prime cows strengthened, with the heaviest at 685- 710kg earning $2.22-$2.26/kg. Prime lambs held at the top end, and even light lambs made $120-$150. Prime ewes firmed and made similar money to the lambs with the top cut at $180-$220, and light to mediums made $100-$170. There was a smaller offering of store lambs and these held, while a line of mixed age scanned- in-lamb ewes to Romney earned $181. Coalgate prime and store cattle; all sheep • 12 scanned-in-lamb ewes returned $151 • Prime steers and heifers, 470-590kg, were $2.71-$2.79/kg • Prime steers and heifers, 445-453kg sold $2.58-$2.62/kg The cattle tally totalled only fifty at COALGATE last Thursday, barely half the yarding of the previous week. With only 12 store cattle yarded, the 11 331kg R2 Angus steers almost had the pens to themselves, trading well at $990, $2.99/kg. Better prime lambs sold for $207-$220 with medium-good fetching $180-$198. Half the yarding was mid-range, trading at $170-$198, while light lambs made $130-$169. In the mixed-age ewes, the ten best sold at $207, but the next highest priced were $172-$175. Good condition lines made $150-$164, with medium types at $131-$149.
SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • Hereford-Friesian heifers, 485-555kg, made $2.57-$2.68/kg • Very-good boner cows, 500-705kg, were $1.61-$1.73/kg • Half the prime lamb tally were lighter lines at $140-$158 A very chilly Monday morning started the TEMUKA sale last Monday. More cattle were yarded with the tally rising to 241, while 6600 sheep presented. Most 500-635kg beef or beef-cross steers traded at $2.66-$2.79/kg, and 628kg Charolais, $2.65/kg. Friesian steers, 545-600kg, all made $2.50 -$2.75/kg. Buyers were selective on Friesian heifers and while a line of 630kg made $2.64/kg, 540kg sold at $2.50/kg. 17 prime cows were sold, with the best being Angus, 635-653kg, at $1.98$1.99/kg. The sheep yarding was well supported with sheep travelling from both the Chatham Islands and Otago. The average store lamb price rose $6 to $131.50, only $2 behind the same time last year. Prime lambs sold well with top pens at $222-$227 and the next cut down $180-$219, with medium lines earning $160-$176.
SOUTHLAND
A GOOD BALANCE: Greg Uren and Richard Ashworth from PGG Wrightson sell pen 177 for $219 at Temuka last week. Feilding prime cattle and sheep • Most prime ewe lambs sold for $174-$179.50 • Boner Friesian cows, 465-520kg, lifted 26c to $2.30/kg • Boner Friesian cows, 525-575kg, rose 36c to $2.50/kg While a high throughput of prime lambs often occurs at FEILDING at this time of year, the tally was 1000 head above the five-year average last Monday. Demand was high, and prices were up across the board. More than a few vendors joined the $200 lamb club, with 537 very-heavy male lambs at $200-$218, and the balance of these types, $180-$199. Mixed-sex sold to similar levels with the top at $201, and the next cut down, $195-$199. The bulk of the mixed-sex pens were very-heavy lines at $180-$188. Only one pen of prime ewes sold for $199, with very-good types firm at $158-$178, and good, $136-$159. Prime cow prices varied depending on quality. Hereford-Friesian and Anguscross, 510-538kg, traded at $2.25-$2.27/kg. Angus, 392461kg, sold for $2.04-$2.11/kg, and Angus 365kg, $1.92/kg.
Feilding store cattle and sheep • R3 Angus steers, 445-515kg, were $3.21-$3.22/kg • Big lines of R1 traditional steers, 200-275kg, made $3.89-$4.13/kg • Big lines of R1 traditional heifers, 195-240kg, made $3.17-$3.27/ kg • Average store lamb price lifted to $146 • Good in-lamb ewes made $195-$211 It was another good store cattle sale for the 1150 head offered. R2 and R3 steers were quite strong as 445-515kg R3 Angus made $3.21-$3.22/kg and 385-495kg traditional R2’s were mainly $3.20-$3.27/kg. Few R2 beef-Friesian steers sold below $2.80/kg. Traditional R2 heifers, 385-445kg, went well at $2.87$3.12/kg. A few large consignments of straight-beef R1 steers and heifers found very good interest, the steers mainly $890-$1025, and the heifers $640-$840. The store lamb market was still as hot as ever for the 12,500 out under the hammer.
Lorneville • Heavy prime lambs lifted to $163-$178 • Heavy prime ewes sold for $157-$186 • Prime steers, 415kg, returned $2.70/kg At LORNEVILLE last week prime lambs held at the top end, though lighter to medium lines lifted slightly to $136$147, while two-tooths earned $140-$157. Prime ewes strengthened at the top end, though light lines varied at $90-$130. Store lambs all sold above the $100 mark with the top end lifting to $135-$145. There was a very small yarding of prime cattle, with 410kg heifers at $2.12/kg, while 350kg bulls earned $1.90/kg. Store numbers were also low, with R2 Hereford-Friesian heifers fetching $2.58-$2.62/kg. Charlton sheep sale • Heavy store lambs made $120-$135 • Heavy prime ewes earned $150-$170 • Heavy local trade rams sold for $80-$100 There was a medium sized yarding of store lambs at CHARLTON last week and prices strengthened for light lambs at $90-$100, with mediums and heavies steady. Prime lambs all sold above $120, with the top lambs making $155-$170. Prime ewes softened a little at the top end, although lights and mediums were steady to lifting at $100$148.
Markets
40 FARMERS WEEKLY – farmersweekly.co.nz – July 8, 2019 NI SLAUGHTER LAMB
SI SLAUGHTER STEER
SI SLAUGHTER MUTTON
($/KG)
($/KG)
TRADITIONAL R2 STEERS, 425-495KG, AT FEILDING
($/KG)
($/KG)
7.65
5.45
5.40
3.18-3.27
$140-$157 high $160-$195 to heavy ewe lights Heavy prime ewes at Good lambs at Stortford
Trees replace top cattle Annette Scott annette.scott@globalhq.co.nz
A
S FAR north as sale yards get in New Zealand the Broadwood selling centre in Northland hosted one of the country’s more notable capital stock clearing sales last week. On behalf of Mark and Michelle Hammond of Herekino, Carrfields Livestock held the sale of a Hereford beef herd that put 50 years of topquality genetics under the hammer, the animals’ grazing land destined for pine trees. “It was a boomer, a pump sale with quality to burn,” Carrfields livestock agent Reubin Wright said. It exceeded all expectations. “It was Hereford buzz without a doubt and it drew the buyers from Hawke’s Bay, Taranaki, Bay of Plenty – everywhere,” Wright said. “The car park was full and it took just 92 minutes to sell $1 million worth of cattle. “Interest was strong and bidding was brisk, that’s for sure.” In-calf cows fetched an average $1445 while in-calf heifers averaged $1385. Rising three-year calvers averaged $1496 and rising four-year calvers $1540. Mixed age cows sold at an average $790 and R1 steers $922. While the sale brought top quality Northland farmed stock with 50 years of breeding off steep west coast hill country to the marketplace it was the reason for the sale that triggered concern. “Six hundred and forty hectares will now go into pine trees. “We understand it’s local investment but it’s all smoke and mirrors and you can’t get to the bottom of it but trees will take over,” Wright said. The Hammonds’ property is not the only pastoral land being lost to the Government’s Billion Trees programme. Several other productive farms in the region totalling more than 2000ha are also being converted into trees as part of the programme. “In southern Hokianga good sheep
KEEN BUYERS: Carrfields agent Reubin Wright, left, and auctioneer Tim Williamson had no trouble selling 50 years worth of Hereford genetics from a farm going into trees.
TOP DOLLAR: More than a million dollars worth of cattle were stold in 92 minutes at Herekino.
and beef properties are being bought up for forestry all over the place. “What does that mean? “It means small country settlements are going to struggle and disappear. “For the sheep and beef industry we will really see it come to roost in a few years when livestock numbers are
too low to supply NZ export demand,” Wright said. “It’s time someone explained to the general public and the Government what this carbon farming means in terms of the real hit on rural economies, the NZ agriculture sector and wider economic climate.”
Canterbury Park
Lodge
ACROSS THE RAILS SUZ BREMNER
Mild June brings early spark to store cattle market JULY has snuck up on us and while it is still very early days a little bit of life has sprung back into the store cattle market as a relatively mild June brings farmers closer to the promise of spring despite few regions having any significant rain till recently. But, as the very cold temperatures and wet paddocks have been kept at bay, full use of supplementary feed and crops has given farmers a bit of breathing room. Like the grass, sales typically get a spring flush in August and sellers tend to target selling around that time. But promising outlooks and early improvements in store cattle markets have seen many choose to offload earlier. One of the reasons there has been a recent lift in competition was that buying through the autumn was thwarted because of low rainfall, meaning some delayed entering the market till recently. Sales on the western side of the North Island, such as Frankton and Taranaki, have been noted for both larger-than-usual entries for the time of year and improved markets. Frankton was a good example as volume blossomed to 800 store cattle in the last week of June. That was, in part, driven by the end of the financial year but the attraction of a firming market noted over the weeks before made it an easy decision. The boost in volume attracted more outside buyers, making it a successful day at the office for vendors. That week the better quality R2 Hereford-Friesian steers sold at $3-$3.05/kg with the odd top line up to $3.25/kg. Top quality heifers of same breed also reached $3-$3.01/kg. While last week’s market was more subdued as the best of the steers made $2.84-$2.95/kg and heifers, $2.80-$2.90/kg there is still promise of prices to come if those levels can be reached this early in the season. As is always the case, though, bidding at all yards is still selective and there are always those cattle that are attractive to a very limited audience. Horns on the dairy-beef lines, in particular, are a big issue and can be responsible for a big discount. suz.bremner@globalhq.co.nz
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