Farmers Weekly NZ July 9 2018 by AgriHQ

28 NEW FEATURE On Farm Story Vol 17 No 27, July 9, 2018

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Disrupters are here Annette Scott annettescott@globalhq.co.nz

ED meat farmers are facing the biggest disruption in more than 30 years, Beef + Lamb New Zealand chief executive Sam McIvor told farmers at the annual FarmSmart conference in Christchurch. “We are facing a bigger disruption for our sector than seen in the 1980s when a lamb was $4 and a ewe 50c, if you could get killing space. McIvor outlined seven forces B+LNZ has identified as driving disruption. They include global and government institutions putting the impact of meat consumption on the agenda and while it will move slowly the conversation has started. “They are beginning to take action to reduce the consumption of meat and address environmental concerns and the actions of individual countries will eventually impact global imports and meat consumption.” And the medical sector wants to take meat out of diets with growing support for plant-protein. There’s a steady flow of investment capital growing both the size and speed of investment in alternative protein. “There are some very, very scary investors with deep pockets and they are powerful and influential on a global scale.” The technology to mass produce a consumer-ready alternative protein burger is here. New influencers are creating

a cultural narrative around meat with athletes starting to push the performance benefits of plant proteins. Millennials’ eating patterns are reshaping the food industry. And the market is responding to consumer demand for new products that meet evolving needs and desires. McIvor said managing the risk around disruption is about having a good strategy and acting on it. “Markets we have tested don’t have a good knowledge of what we produce or our farming systems.” That’s where the Red Meat Story – Taste Pure Nature brand kicks in. “It underpins for farmers to grow the long-term returns on what we produce and how we produce it. “So disruption is real and there’s urgency to address it to turn the risk into opportunities, tell the farmer story better to urban and government and win back support and pride in our industry.” But then Air NZ threw up a curve ball last week when it served up Silicon Valley’s food tech startup Impossible Burger, a plantbased meat substitute. The unexpected disruption attracted immediate attention. NZ First agriculturae spokesman Mark Patterson slammed the move. “I’s a slap in the face for NZ’s red meat sector. “The national carrier should be showcasing our premiumquality, grass-fed NZ red meat not promoting a product that has the potential to pose an existential threat to NZ’s second biggest export earner,” Patterson said. Federated Farmers meat and wool chairman Miles Anderson

BIGGER THAN ROGERNOMICS? Disruption now facing red meat farmers is the biggest in more than 30 years, Beef + Lamb New Zealand chief executive Sam McIvor says, as Air NZ starts serving imitation meat burgers.

Disruption is real and there’s urgency to address it to turn the risk into opportunities. Sam McIvor B+LNZ is puzzled why Air NZ is making a song and dance about an overseas-produced plant protein burger but not the Kiwi company that supplies it with world-leading transport fabrics. Air NZ prides itself on being innovative and liking to partner with like-minded enterprises. “Farmers understand that. We do it ourselves. “But why would our national carrier build an advertising

campaign around a foreign product and not a cuttingedge Kiwi firm supplying a key component made from a natural, sustainable NZ product?” Inter-weave is a NZ-owned and operated bespoke wool upholstery and home wares maker combining leading design and technology with luxurious, naturally-grown wool fibres to produce high-quality, clean, antistatic, ethical textiles. The transport fabrics Interweave supplies to Air NZ meet the highest flame retardant criteria, are accredited with the Civil Aviation Authority and have Enviromark NZ diamond accreditation. “It’s a great advertisement for NZ natural products, our farmers and an industry that is the lifeblood of rural communities.”

National’s agriculture spokesman Nathan Guy tweeted “Disappointing to see Air NZ promoting a GE substitute meat burger on its flights to the USA. We produce the most delicious steaks & lamb on the planet - GMO & hormone free. The national carrier should be pushing our premium products and helping sell NZ to the world.” Air NZ made no apology for offering innovative product choices for its customers, saying it is a significant customer and supporter of the NZ meat industry. In the past year it had served about 1.3 million NZ-sourced beef and lamb meals to customers. The plant-based burger will be available as part of its business premier menu on flights between Los Angeles and Auckland until late October.

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NEWS

WEATHER

5 Hundreds

gather for YFC 50th

Hundreds of people have celebrated the 50th anniversary of New Zealand’s longest-running agricultural contest.

Kiwi meat can cut the mustard �� 10 M bovis claims IHC fundraiser �� 12 Basin farm will assist nature �� 17

OVERVIEW This week kicks off with a windy, colder, south to southwest flow. The cold start to the week will be nationwide on Monday, perhaps with the exception of Gisborne and Northland, then the following few days are dominated by strong west to southwest winds strongest and coldest south of Cook Strait. The bulk of the rain will be blown into western areas and the more southerly angle might help push moisture into Southland but also the southwestern corner of the North Island. Generally speaking, it’s drier than usual in the east, especially Canterbury and Marlborough. A question mark remains on the precise track of an incoming Aussie high later this week.

Wind

Rain Wetter than average for many western areas over the week, mainly the West Coast, Nelson Ranges, Taranaki, Whanganui, National Park and maybe Waitomo and perhaps coastal Southland. Drier than average in Canterbury, Marlborough, Hawke’s Bay and Northland.

Temperature

Opinion ��24

A cold change on Monday for many regions as polar air goes almost nationwide, however, with windy westerlies some regions, like the east, might be warmer than average at times. However, a couple of southerly injections this week keep the chaos going.

open and honest farming

Westerly quarter winds dominate this week with a southwest lean to them but there might be a few days where they swing more northwest. Southerlies are also in the mix further south. Winds ease by the weekend for most regions.

Highlights/ Extremes

New Thinking ��23

28 Sharing

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Newsmaker ��22

ON FARM STORY

NZX PASTURE GROWTH INDEX – Next 15 days

For further information on the NZX PGI visit www.agrihq.co.nz/pgi

Snow on the ranges and mountains might lower for a time to a few hundred metres in the lower South Island. Winds might be strong in exposed places, mainly today. Beach conditions in the west of both islands are very dangerous.

14-DAY OUTLOOK

The days are now very slowly getting longer but not enough to tip the balance pasture-wise for at least several weeks. This week kicks off colder than average but the strong winds will keep frosts away from many, which might encourage just a little grass growth. In fact, many eastern regions will have brief surges of warmer than average weather and it’s likely to be drier than average in the east for the next week.

SOIL MOISTURE INDEX – 06/07/2018

Rangitikei sheep and beef farmer William Morrison has connected his hillcountry farm to the world through social media with images of the breathtaking property a hit on Twitter.

REGULARS Real Estate ��30-32 Employment ��33 Classifieds ��34

Source: WeatherWatch.co.nz

Livestock ��35 Markets ��36-40

This product is powered by NIWA Data

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

our pioneering

spirit tells us

nothing’s

Back in 1860, exporting meat to the other side of the world seemed about as easy as nailing gravy to the ceiling. But a few determined kiwis took the bull by the horns and now our grass-fed beef and lamb is sought-after all around the globe. At AFFCO, we see the same pioneering spirit alive and well in farmers today. We’re playing our part too – exploring every opportunity to take New Zealand’s finest farm-raised products to the world.

WAVE23683 NZFW

out of

reach WWW.AFFCO.CO.NZ | 0800 233 2669

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Shaw: Attitudes are changing Neal Wallace neal.wallace@globalhq.co.nz THE endorsement by the Farming Leaders Group of the Government’s goal of net zero emissions of greenhouse gases by 2050 indicates a softening of the sector’s previous reticence on the issue. The group and Prime Minister Jacinda Ardern said they support the goal, a move Climate Change Minister James Shaw hailed as a huge breakthrough. His view that opinions within the sector are changing was supported by other farming leaders and recent events such as Synlait committing to reducing greenhouse gas emissions throughout its supply chain. “Attitudes are changing and for the rural community, this is a huge breakthrough,” Shaw said. He acknowledged industry good groups such as DairyNZ

and Beef +Lamb NZ are already working with farmers on how to reduce their emissions and other companies and sectors are embarking on similar strategies.

Attitudes are changing and for the rural community, this is a huge breakthrough. James Shaw Climate Change Minister “This is really huge on behalf of farmers and landowners to be seen to be at the leading edge of solutions,” he said. He attributed the change to the increased focus of producers adding value to products instead of volume and an awareness

that consumers expect branded produce to be supported by values such as climate change mitigation. It is also helped by the recent collapse in dairy prices which he said prompted farmers to reduce costs and focus on margins rather than production. Shaw said existing technology and best practice already allow a reduction in agricultural emissions and he is confident new technology will let the sector to become a net zero emitter. The Government is consulting on a Ministry for the Environment discussion document Our Climate Your Say, which sets out three long-term emissions reduction targets: net zero carbon dioxide, net zero long-lived gases and stabilised short-lived gases, net zero all emissions. Shaw said feedback from meetings supports different gases being treated differently but he doesn’t want to prejudice

the consultation process by expressing his opinion on the merits of such action. The MFE document said forestry will have a key role offsetting emissions, estimating an extra 10% of the country needs to be planted in trees or native bush to achieve net zero emissions by 2050 More than 35% is covered by forests and bush. Shaw said that will not mean blanket planting of pines but rather appropriate species including natives in appropriate places such as hillside stabilisation. Forestry regulations in the Emissions Trading Scheme are also being rewritten to make it easier for landowners and small woodlot owners. Asked whether agricultural emissions will be added to the ETS Shaw said that is up to the interim Climate Change Committee but if it is, he believes the sector will

have to account for 5% of its emissions. The issue will be consulted on from October to December with policy recommendations made to the full Climate Change Committee to consider in late 2019. Meanwhile, B+LNZ has commissioned research to measure the potential of native woody vegetation to sequester carbon, most of which is not counted under ETS rules. That follows a B+LNZcommissioned study by Canterbury University that found that 1.4 million hectares of native vegetation - 24% of remaining indigenous cover - is on sheep and beef farms. “A great incentive for farmers to retain and enhance native forest on their farms would be to include it in the accounting framework for any enhanced ETS,” the report said.

Green approach produces more DAMIAN and Jane Roper are typical of many farmers who play the long game, choosing to manage their South Taranaki dairy farm for their grandchildren. The Ropers, who farm at Alton, also love trees that not only enhance the environment but help them meet their climate change obligations by offsetting their greenhouse gas emissions. “We’re a little of mind to think further out to say 30 years and think ‘what will our grandchildren want to see’,” Damian said. They recently established a 2ha wetland and bush area and are seeking QEII protection for an historic 3ha block of recovering stormdamaged bush.

The family this winter planted 0.5ha of silver beech and next winter hope to plant 0.5ha of northern rata and 1ha of totara. “Really, it’s there for aesthetic reasons, climate change and improving water quality.” Longer term there are plans to re-establish woodlots of maire, a species once prolific in wetlands. Roper said minor tweaks to managing his property had reduced greenhouse gas emissions. Regular soil testing means he has not had to apply phosphate in 10 years while increasing the area over which effluent is spread to a third of the farm has halved the use of nitrogen

in four years. Cow numbers have progressively been cut from 500 to 440 and the fruits of a long-term genetics programme and better feeding, including growing 25ha of summer chicory, have seen milk production increase by 50,000kg MS a year. “We milk a few less and have them produce more instead of cramming up the stocking rate and doing it tight.” At 2.8 stock units a hectare Roper is producing between 1600 and 1700kg MS a hectare and that includes growing 10ha of maize. Crops are sown using minimum tillage methods to preserve the soil structure.

FAMILY AFFAIR: Damian, Jane and Harriet Roper are managing their Taranaki farm for future generations.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

M bovis worry dents farmers’ confidence FARMERS’ confidence slid in the past quarter amid concern about the impact of Mycoplasma bovis with the number of farmers expecting conditions to improve now only just outweighing those expecting them to worsen, the latest Rabobank rural confidence survey found. “The run of strong commodity prices across virtually all sectors continues to support onfarm profitability and farmer optimism but, despite the positive broad-based returns, the uncertainty in the operating environment means many farmers are wary of what the next 12 months will bring,” Rabobank New Zealand country general manager Hayley Gourley said. The number of farmers expecting the rural economy to improve in the next 12 months fell from 27% to 26% in the last quarter while the number expecting the rural economy to worsen jumped from 12% to 24%. Among farmers expecting the agricultural economy to deteriorate 78% cited

BALANCE: Despite Mycoplasma bovis denting farmer confidence those in dairy have been buoyed by Fonterra’s price prediction for this season, Rabobank New Zealand country manager Hayley Gourley says. Mycoplasma bovis and the consequences of the eradication process as the key reason for holding that view, Gourley said. “Government intervention was the second predominant reason for farmer pessimism, however, this was cited far less frequently than in previous quarters.” Overall, 46% expect similar conditions for the rural economy in the next 12 months, down from 59%.

Confidence in the broader agricultural economy was driven lower by reduced expectations among sheep and beef farmers and horticulturalists. Net confidence dropped sharply among sheep and beef farmers, turning to a negative 6% from a positive 11% while it fell to a negative 9% among horticulturalists, down from a positive 34% previously. Dairy farmer confidence, however, strengthened, in part because of Fonterra’s strong opening forecast of $7 a kilogram of milksolids for the 2018-19 season. “The Fonterra opening forecast was announced just prior to this survey being undertaken and has set a positive tone for the coming year amidst a period of uncertainty as the industry continues to work through the eradication of M bovis,” she said. “Spirits have been further buoyed by a weak kiwi dollar relative to the United States dollar, helping to underpin favourable farmgate milk prices.” – BusinessDesk DOUBLE BENEFIT: Reducing irrigation to 80% of plant-available capacity can save water and reduce run-off while maintaining pasture production.

Irrigation tweaks reduce runoff

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TWEAKING irrigation management practices can significantly reduce nitrogen leaching, new research has found. A desktop study led by Aqualinc Research’s research and development director Dr John Bright and funded by the Fertiliser Association has shown it is possible to achieve an average of 27% reduction in nitrogen loss. The research examined data from 12 case study dairy farms in Canterbury. Using computer models, including Overseer, the researchers looked at the effects of different irrigation management rules on pasture production and nitrogen leaching. The current practice is to irrigate when soil moisture content drops below 50% of plantavailable water but Bright found letting the level drop further has no effect on pasture growth in autumn and spring. He also studied whether leaving capacity in the soil for future rain has any effect. “We found that filling it up to 80% of the plant-available water capacity and leaving 20% for rainfall was probably the best target level from the point of view of reducing the nitrate leaching substantially while avoiding

pasture production losses.” The team also deliberately tested target levels that did cause a reduction in pasture production to gauge the limits for irrigation triggers and targets. Applying the principles of adjusting trigger levels during the season and using an 80% irrigation target requires the appropriate irrigation system. It is essential to have a system that can be adjusted to relatively small application levels, with a short return period. Centre pivots and solid set sprinkler systems were found to be the most suitable irrigation methods. They could most easily be operated using the irrigation rules developed through the research. “About 72% of the irrigated area in Canterbury uses methods that could easily implement these irrigation rules. “The balance of the area would require a range of capital investments to modify them or to replace them to be able to implement these irrigation rules.” Other benefits besides reducing nitrogen loss to water include reducing irrigation water use through improved efficiency and making more effective use of rain when it occurs.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Hundreds gather for Young Farmers 50th

Ready to drone on

HAPPY BIRTHDAY: Nigel Woodhead and Allan Anderson cut the birthday cake at the Young Farmer of the Year 50th anniversary celebration. and part-time farm consultant Denise Clemens (nee Brown) was the first female grand finalist. “I really admire the women who make it through now because the contest has a much larger practical component. “I don’t think it will be long until we have a female grand champion. Women can do anything.” Ashburton arable farmer Tim Porter won in dramatic fashion in 2002 on his second go. “I ended up in a dead heat and they had to do a countback which took five to 10 minutes. “It was a nervous wait for my family but I was just happy to be finished.” Porter always had a desire to follow in the footsteps of Catto twins Warwick and Grant – who both took out the title. “I used to shear with Grant. I remember he’d sit there studying the Lincoln Farm Technical Manual during smoko breaks,” he said. “It’s been a goal of mine since I was a teenager to the win the FMG Young Farmer of the Year contest.” The winner’s prize pool has varied over the years but often included farm machinery and overseas travel. “My prize included a ute, a motorbike and an Air New Zealand travel package,” Porter said. “I won a 21-day trip around Hawaii in the United States and a new tractor,” Kane said. “But most importantly I won the esteem of winning the Young Farmer of the Year, which has been great throughout my whole life.”

CENTRAL Otago farmer Nick Loughnan reckons his new Phantom 4 drone will save a lot of time at his mixed deer, sheep and goat farm. Loughnan won the Farmers Weekly competition for the drone, provided by DJI Ferntech. “It is going to save us a lot of time with a lot of the jobs that can soak up time when we get really busy during milking,” Loughnan said. “Checking on lambing, kidding and fawning progress and problems – we have some steep blocks which a drone could far more quickly cover.” It will also be useful for stud monitoring, pest control, checking for cast sheep and mustering, he said.

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HUNDREDS of people have celebrated the 50th anniversary of New Zealand’s longestrunning agricultural contest. The first FMG Young Farmer of the Year Grand Final was held in Auckland in 1969. Former winners and finalists were among a 400-strong crowd in Invercargill to mark the milestone. “It’s amazing. It’s just like a school reunion isn’t it,” Levin farmer Geoff Kane, 66, who won the national final in 1981, said. There were handshakes, laughter and reminiscing as former contestants and organisers celebrated five decades of winners. “This is the first time we’ve had so many grand finalists in one room,” NZ Young Farmers chief executive Terry Copeland said. Guests entered the venue through a corridor lined with contest memorabilia, including trophies and winners’ cloaks. “It’s been great catching up with people who were involved with the contest at the same time I was,” Dannevirke’s Nolan Williams said. Williams was 27 years old when he took out the national final in 1973 when it was still a radio quiz. “There were no practical elements like there are today,” the retired sheep and beef farmer said. “I think it’s much better having a mix of theory and practical challenges. In 1973 there were only four grand finalists – two from the North Island and two from the South Island. It was quite different to what it is now,” he said. The inaugural television broadcast was in 1981. “We were all pretty green about what was required for television,” Kane said. “We were extremely dressed up and serious. Today, the contest is more entertaining and has a bit more audience appeal.” Kane, who now owns four small dairy farms with his wife Cynthia, recalls the modules finalists had to tackle. “Horticulture was just coming into its own in the 80s so we had to plant and prune a few trees,” he said. “We also had to hang gates, fix a water pump, repair the chain on a motorbike and deal with a tractor that had run out of diesel.” The contest marked another major milestone in 1981. North Otago sheep and cropping farmer

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

NEWS BRIEFS New pest plan THE Canterbury Regional Pest Management Plan took effect on July 1, Environment Canterbury Councillor Tom Lambie said “Environment Canterbury has recognised this by positioning biosecurity alongside water management and biodiversity as priorities for our attention. The previous plan focused mainly on managing legacy pests that affect production land, such as broom, gorse, rabbits, wallaby and nassella tussock. The emphasis in the new plan is therefore on maintaining efforts to prevent existing pests from proliferating while also increasing the focus on stopping new pests entering the region and becoming established.” The plan puts more responsibility on individual landowners to manage pests on their properties themselves with Environment Canterbury’s efforts focusing more on preventing pest spread to neighbouring properties. The regional council will have a leadership role with extra emphasis on advice, education and working with the community. More at www. ecan.govt.nz/pests.

AgResearch in control AGRESEARCH has taken full ownership of agricultural software company Farmax, buying the shares of Brownrigg Agriculture and Phil Tither of AgFirst. Farmax has been operating for 15 years. It is used on more than 5000 farms in New Zealand and overseas. The software is used by farmers and their advisors to analyse, monitor and review farm operations to determine the production and economic outcomes of various managerial options. AgResearch chief executive Tom Richardson said “We are making significant investments into digital agriculture and we know many farmers are already using technologies such as sensors connected to their mobile phones or devices to monitor their farm operations. There is enormous potential for uptake of new tools

alongside digital platforms that can bring together and analyse large amounts of data from different sources across the farm.” AgResearch regards Farmax as a vehicle for taking more of its science to farmers. Software information and case studies on Farmax’s capability are at www.farmax.co.nz.

STRENGTH: Kaharau 632 has a strong head, jaw and hindquarters.

Vote for us HORTICULTURE New Zealand’s board is asking growers to vote to renew its levy funding. Voting papers have been sent out for a levy of 14 cents per $100 of sales of the fruits and vegetables covered in The Commodity Levies (Vegetables and Fruit) Order. It expires in May 2019. Voting must be completed by August 13. Votes will be counted and the result out by August 20. HortNZ’s purpose is to enable, promote and advocate for growers to achieve the industry goal of a $10 billion industry by 2020,” president Julian Raine said. The levy is expected to raise about $4.6 million a year. It is spent on grower representation on biosecurity, access to land, water and people, research and development, education and training, and maintaining quality assurance programmes. Levy orders for Vegetables NZ, Onions NZ, Tomatoes NZ and Process Vegetables NZ are also being voted on. More at hortnz.co.nz/ membership/membership-levy/.

Contractors dig deep AGRICULTURAL contractors raised more than $33,000 for Wellington Free Ambulance at their annual conference in Masterton last month. A charity auction dinner that raises funds for the local ambulance service is held at the conference in a different regional centre each year. This year the charity auction and other fundraising activities at the conference raised $33,345 for Wellington Free Ambulance, which provides emergency care in Wairarapa.

Stakes high at bull sale Alan Williams alan.williams@globalhq.co.nz THE buyers of a record priced Angus bull at a Gisborne stud sale “just couldn’t let him go by”. Gisborne’s Rangatira Angus Stud and Turiroa Angus Stud, Wairoa, combined to pay $95,000 for the rising two-yearold offered by Kaharau Angus Stud. Turiroa co-owner and manager Andrew Powdrell said the animal ticked a lot of boxes. “It’s hard to find that in the one animal, a strong head and jaw and in the hind-quarters, great feet, good temperament and good on paper as well.” The auction for Lot 2 at Rimunui Station on June 25 was already very competitive when Powdrell and Rangatira’s Charlie Dowding entered the fray. “We hung back and came in near the end,” Powdrell said. “We were lucky to get him. We were a bit surprised how high it went but that’s what happens at auction when you’ve got a few buyers. Who’s to say what they’re worth?” With the record price and a second bull selling for $50,000

the overall average for the 51 bulls sold out of 51 offered was also a record, at $14,970. The auction was a great result for Kaharau stud master Penny Hoogerbrug. “Watching Lot 2 was nervewracking but a terrific thrill for us, very exciting. He was just a beautifully balanced bull. We were overwhelmed and humbled by the support of our clients.” Carrfields auctioneer Neville Clark had set the tone for Lot 2, introducing him as having the quality and power to suggest he could be the bull of the year. He received a $20,000 opening bid followed by rapid $5000 rises. Powdrell said having the bull sired by the very successful Braveheart of Stern and from the well-established Kaharau breeding line was a major attraction. Hoogerbrug took over running the Kaharau Stud in 2012 when her father Colin Williams retired. He’d bred the Kaharau line for 60 years but just missed the record sale, dying in May. “He laid the foundations for us and we added the new genetics,’’ she said.

“It’s hard not having him here. He would have been really delighted. “We were quietly confident of a good sale but never dreamed it would be so successful.” On the dam’s side, Lot 2 traced back to a foundation Kaharau sire, Zodiac 1. The very favourable summer helped the bulls come through to sale in excellent condition and the success of the auction was a team effort led by stud manager Nick Cave. It followed a silver medal in the Steak of Origin contest for best of breed Angus, achieved by a Kaharau-bred heifer from 266 entries. Kaharau Stud has kept a very good Braveheart of Stern rising two-year son, a deep, soft meaty bull like his father. Hoogerbrug is also keeping a son of Whenuapapa Crumble, sire of the $50,000 bull. “He’s very good too and we’re getting good interest from New Zealand and Australia for his semen,” Hoogerbrug said. The Rangatira and Turiroa studs, about an hour apart by road, will have turn-about with their new sire and will sell semen as well, Powdrell said.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Get picky when buying stock Glenys Christian MORE than 150 farmers at a Mycoplasma bovis meeting in Dargaville were told to choose their breeder rather than their bull. “You need to ask some very strong questions,” Chris Biddles, who established Te Atarangi Angus stud on the nearby Pouto Peninsula over 30 years ago, said. Firstly, farmers looking for service bulls for their herds should choose a breeder with a registered herd. “That’s expensive to maintain and breeders won’t take risks.” They should then ask the breeder about how much trading of stock they are doing and if they have a closed herd. “Ask for records to prove that information is accurate,” he said. “If the breeder isn’t registered ask even more questions because you’re safeguarding yourself.” He also urged farmers to make sure they know their stock agent well. They might sell stock at a cheaper price but it can be a very expensive decision. Farmers are sometimes their own worst enemies when it comes to making cash sales. Biddles is speaking to all his

Ask about their stock-trading practices and cow and calf health over the last two years. Joyce Gallaghan Dargaville Veterinary Centre neighbours about their stock. “I am going overboard on risk aversion,” he said. At his sale in September he will have footbaths for farmers attending as well as extra precautions. Special care will be taken in washing out stock trucks before his stock are carried in them. And if farmers require that to happen they should expect to pay transport companies for it. A farmer asked him about how dairy farmers relying on bulk milk test results can be sure their neighbours running beef cattle are clear of M bovis. “You’ve got to rely on their integrity,” he said. If there were cases of mastitis in beef cattle they should be tested.

PICK ME: Northland farmers have been told to buy stock from as few sources as possible.

Caleb King, a dairy cattle vet who works for the Ministry for Primary Industries’ planning and intelligence group, said the first question that should be asked was whether any dairy and beef stock had been brought on to the farm. “If that’s happened the risk is significantly higher,” he said. Joyce Gallaghan, a director

of Dargaville Veterinary Centre, which organised the meeting, said farmers should buy calves or cows from as few sources as possible and deal direct with other farmers. “Ask if they have done M bovis testing, if there’s been any M bovis tracing from MPI,” she said. “Ask about their stock-trading

practices and cow and calf health over the last two years.” They should also ask to see Nait records and movements, make sure they are up to date and buy only stock with Nait tags. They should avoid mixing mobs while they are being transported then quarantine them for seven days once they reach their farm.

LIC is taking all possible disease measures Glenys Christian BREEDING companies are gearing up for the busy spring mating season with extra measures to stop the spread of Mycoplasma bovis between dairy farms. LIC shareholder councillor Mark Meyer, who farms at Tangiteroria, told a farmer meeting in Dargaville AI technicians have already

inspected nearly 5000 dairy farms to make sure they have one major suitable entry point and footbaths were in place. There was 100% compliance with 60 technicians in the field for winter milk inseminations despite some pushback from farmers to start with, he said. Meyer said LIC will take all possible measures to make sure its staff visiting farmers are

trained and properly equipped. It has a clean-on, clean-off policy with all dirty equipment left on the property where the contamination occurred. “Staff are not allowed to arrive unannounced and their vehicles are not to be used onfarm,” he said. Its 1300 staff doing spring mating will all have biosecurity kits including footbaths, scrubbing brushes and

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disinfectant in their vehicles. Plastic sheaths on inseminators, which are always cleaned between farms, will be now be wiped down between each use. With herd testing a set-up vehicle will be used to deliver sampling equipment then a collection vehicle will come take milk samples so nothing moves between farms. And all gear will be washed and sanitised after

coming off one farm before it is used on another. LIC bulls have been tested using the polymerase chain reaction (PCR) test since July when M bovis was discovered. Each batch of semen was tested every day with results coming back before it was sent for use, with routine sampling of all semen onfarm also done. LIC is in constant communication with its rival CRV Ambreed, he said.

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10 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Kiwi meat can cut the mustard Annette Scott annettescott@globalhq.co.nz

CHANGE: Melissa Clark-Reynolds says red meat farming will need to come up with up a different model if it wants to compete with plant-produced and cloned meats. Photo: Annette Scott

THERE are no facts in the future. It’s all just an educated or opinionated guess, agri-futurist and digital strategist Melissa Clark-Reynolds told 250 sheep and beef farmers in Christchurch. In her keynote address to Beef + Lamb New Zealand’s FarmSmart 2018 Clark-Reynolds said the biggest challenges in futureproofing farming

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will come in a changing business farming model. “The future is already here. It’s just not very evenly distributed,” she said. Technology will be a key force driving disruption. “And new technologies that come along are only going to work when we work out how to make money out of them. “Most of the technology is designed by the people who are not going to use it and all new ideas need new infrastructure and whole new systems around it.” For red meat the competition will be at the bottom end so that means moving away from the commodity market, especially the lower end. “I laughed at the idea of lab-grown meat because I thought there was no way it could compete with our beautiful grass-fed beef. “Actually, I was right in one way but completely wrong in another as when I got to eat a lab-grown burger it looks, smells, bleeds, chews, cuts and tastes just like meat. “The burger patty is made from GMO yeast, organic corn and organic soy and is higher in protein and iron than real meat and of course it has fibre as it is made from plants.” So NZ has to figure out what it wants to do. “Do we want to offer the world best, high-value meat, which makes sense to me, or do we dilute our brand and hope like hell we can play at the bottom of the market as well and offer lab-grown meat. “Can we be a commodity market at the same time as a value market?” Clark-Reynolds doesn’t buy that. “We are industrial food producers even if we like to think of ourselves as boutique. “In that case we need to chase the higher margin if we want to survive so we have to find a different model.” In the milk industry there’s been a 61% increase in milk alternatives and whole milk while cow milk has decreased 15%. The same could happen to red meat. “This is a global trend with big implications for us in red meat too.” To be competitive the NZ red meat industry must focus on taking a really premium product to market, rather than volume. “As consumers eat less meat perhaps we can give them better meat and tell a very good story around that.” NZ needs to think differently about its business model, not just about meat but looking outside the square. “What else can we capitalise on?” She cited waste products, such as bone broth in Britain, becoming highly valuable. Packaging and labelling also play a role. “My grandmother called it (bone broth) stock, good old stock – new name, new fancy packaging and it’s a value product.” NZ must capitalise on available data to step out of commodification. “There is a ridiculous amount of data out there about our customers that we are not using. “We need to use the data and mathematical numbers to have that sweet spot and benefit from it.” Clark-Reynolds said cloned meat and plant produced meat will always be cheaper. “If we want to compete we will fail. “If we get it together we can do it but we must be very consistent, be best-tasting with a really premium product that makes eating NZ red meat an incredible experience.” Clark-Reynolds said working together NZ red meat can cut the mustard but the industry must be very conscious of what innovation strategies it’s running and how it manages disruptive technology innovation to capitalise in a changing business farming model.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Farmers feel political pressure Annette Scott annettescott@globalhq.co.nz AS HE talks to farmers around the country Primary Sector Council chairman Lain Jager senses an air of anxiety. “While in a number of farming sectors things are going good on a day-to-day basis, farmers do appear to be feeling under pressure from this relatively new Government. “There’s a sense of anxiety about politicisation, sustainability, carbon neutrality, water quality, synthetic protein and potential impact on meat and dairy,” he said. Labour’s focus was not so much a pushback on National’s emphasis on growth towards a stronger economy but instead encompassed a vision for the primary sector and where it wants to be. The brainchild of Primary Industries Minister Damien O’Connor, the 15-member advisory council, set up in April, had its first meeting late in May with a second scheduled for July 23. The council is tasked with providing independent strategic advice to the Government on issues confronting primary industries. Jager said the group’s role is to provide fresh thinking at a time when the primary sector is facing unprecedented levels of change.

Farmers do appear to be feeling under pressure from this relatively new Government. Lain Jager Primary Sector Council The immediate focus is on developing a sector-wide vision. “Are we doing ourselves justice calling ourselves primary industries or would food and fibre be a better focus to help move up the value chain.” The whole opportunity in the vision space is to work with other sector groups and in the sustainability space the ideas are based around a system that produces food globally under pressure. “The high-level question is how we can produce more protein more sustainably as a global community and where we should be positioning ourselves in New Zealand relative to these sustainability issues.” NZ could be a world leader in plant protein while still being a world leader in ruminant protein. But some change will be required on environmental sustainability with a shift away from a commodity and volume focus that will give the primary sector its social licence to reap opportunities of changing consumer trends.

NOT FATAL: Primary Sector Council chairman Lain Jager is aware of a perceived imbalance of representation on the council but says it will consult widely.

“So how we position, how we produce and where do we need to be investing to capture the opportunities in the next 50 years is by and large about the primary sector fronting up to this with ideas about how and where.” From a policy perspective the council will work with others across the sector to have a highquality dialogue and give quality advice to the Government, Jager said. He acknowledged the criticism around the member appointments that suggests farmers and scientists are not fairly represented. “I am absolutely alive to the perception. “I don’t see it as a fatal flaw as once we have developed a sector-wide vision we certainly will be collaborating with others across all the sectors to develop individual strategic plans,” Jager said. Those plans will include elements such as sustainable development, future value creation, technological opportunities and how a focused and thriving sector can reinvigorate rural communities. But looking at the big picture to provide independent strategic advice to the Government will be done on a shoestring budget. The operating costs for the council’s two year reign are yet unknown. “We have had our first meeting but it is the second meeting that we will work through the detail, determine the work streams and set the timetables and from there we will have an idea of the budget that will be required.” Jager said the council’s funds come from the Ministry for Primary Industries and it is operating on a minimal start-up budget. “It’s not a standalone budget outside MPI and I can tell you we are all cost focus. “We won’t be spending any silly money. “I am not going to spend a cent we don’t need to.” He expects council members will be paid the normal

government meeting rate of $450 a day. The council is set up to run for two years and mandated to meet four times a year so meeting costs will be close to $30,000 a year. Actual operating costs will be

determined and a budget assigned once the workload is known. “But I am thinking with a lot of research and reports already there for us to access – the heavy lifting work is done,” Jager said. The council members are

Nadine Tunley, Puawai Wereta, Tony Egan, Julia Jones, John Brakenridge, Stephanie Howard, Shama Lee, Mark Paine, Julian Raine, Neil Richardson, Mirana Stephens, John Rodwell, Steve Saunders and Steve Smith.

News

12 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

M bovis claims IHC fundraiser Annette Scott annettescott@globalhq.co.nz IHC stands to lose more than $1 million following the decision to can its annual calf sales days this year because of Mycoplasma bovis. The organisation has run its annual Calf and Rural Scheme for 33 years, last year raising $1.45m but the risk of spreading the cattle disease forced a rethink. While IHC looked at every possible way to keep the scheme running it decided, after consulting the Ministry for Primary Industries, it is too great a risk. The decision to suspend crucial aspects of its major fundraising venture has been tough, IHC national manager fundraising Greg Millar said. IHC will not be picking up calves and organising IHC sales simply because it cannot be part of something that puts farmers’ livelihoods at risk, Millar said. “IHC has had a long and important partnership with farmers, which means together we have been able to make a real difference to the lives of people with intellectual disabilities, particularly those people living in rural communities.

NON-STARTER: IHC organised calf sale days such as this one in Mid Canterbury raised over $1 million a year for rural people with intellectual disabilities but have been canned for this year. Photo: Annette Scott

“We’ve spoken to many farmers, many of whom were concerned about the spread of M bovis. “Based on information provided to us we have had to make some very tough decisions. “We also consulted experts in the rural community, including our good and old friends PGG Wrightson.” IHC has tightened its practices over the years, picking up only animals with Nait tags and Animal Status Declaration forms.

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But despite significant improvements in those systems the risk remains too high. “We have determined there should neither be IHC-organised transportation of weaned calves to sales nor IHC calf sale days. “This is a huge decision and one that we have not made lightly. We have a real obligation to do what is right for NZ farmers, their livelihoods and long-term sustainability. “We are keeping up to date with

the latest findings and are working to gather the best data possible to determine how the scheme will operate in the future. “We are in ongoing talks with MPI, PGW and our supporting farmers,” Millar said. IHC is encouraging people to take part in its virtual calf scheme, donating $300 in lieu of a calf, by visiting www.ihc.org.nz/pledge. “We would also like to acknowledge what a tough time this has been for farmers.”

91%

Federated Farmers dairy chairman Chris Lewis said the fundraiser has been willingly supported by farmers. “It’s a shame such a successful and important fundraising scheme has come to this but I suspect IHC may be the leader of more to follow.” Lewis expects similar schemes run by rural communities for schools and sporting clubs will be the next victims. Last year 3568 farmers gave to the IHC scheme with 2863 physical calves pledged and sold, 456 virtual calf donations made and 16 cull cows donated. Lewis encouraged farmers to continue supporting this and other fundraisers. “This could be $300 for a calf or half the proceeds of a cull cow at $800-$1000 is a good donation.” He challenged farmers to look at the problem and create some innovative solutions to get involved, “Farmers are good at solutions. It doesn’t have to be a calf. It could be a bale of silage, a tonne of grain or a lamb or two. “Anyone can now participate so I hope rural communities will get in behind any effort and make this a true rural scheme,” Lewis said.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

New food labelling laws take effect

Synlait and a2 extend contract

Stephen Bell stephen.bell@globalhq.co.nz

the requirement to obtain shareholder approval or shareholder approval being obtained. The agreement reinforces the two companies’ close working relationship as they work to develop a2 Platinum for the Australian, New Zealand and Chinese markets on an exclusive basis to a specified product volume, managing director and chief executive John Penno said. “The success of the a2 Platinum product has exceeded all expectations over the past two years. “This step is about bringing Synlait and The a2 Milk Company closer together in anticipation of continued growth. “It also puts both companies in a great position to further leverage the Chinese Food and Drug Agency (CFDA) registration of a2’s infant formula products, which was achieved in September 2017,” he said.

EXPORTERS sending food to Australia now have to comply with country of origin label laws. The Australian Competition and Consumer Commission is now monitoring 10,000 food products to ensure businesses correctly display the new labels. All businesses including manufacturers, processors and importers offering food for retail sale must comply with the rules specifying how claims can be made about the origins of food products. The rules apply to all fresh or processed foods sold in shops, markets, online and from vending machines but not to food sold in restaurants, cafes, takeaway shops and schools. The labels must tell shoppers where their food is grown, produced, made and packed. “We are now entering the compliance phase where we are making sure businesses are presenting accurate information about country of origin to their customers,” commission deputychairman Mick Keogh said. “Any claim which is likely to mislead consumers will also be a breach of the law.” The rules vary for goods classed as priority, non-priority and imported foods.

INFORMING: Example of Australia’s new country of origin labels.

Non-priority goods include seasonings, confectionary, biscuits, snack foods, bottled water, soft and sports drinks, tea, coffee and alcoholic beverages. All other foods including meat, seafood, fruit, vegetables, most dairy products, cereal, bread, nuts, honey and noncarbonated fruit drinks are priority foods. Priority foods must carry a threepart mark showing the country of origin, a bar chart showing the proportion of Australian ingredients and descriptive text. Imported and non-priority foods must show the country of origin in text but imported goods containing Australian grown or produced ingredients can also use a label with a shaded chart. The Ministry for Primary Industries has information about the new rules on its New Zealand

Food Safety website to help exporters and importers comply with the now different rules in NZ and Australia. It has information about what exporters need to know, what importers of Australian food need to know and what Australian consumers want to see. The ministry also suggests adding a health star rating to the labels. It also provides links to relevant Australian websites and to a tool to help exporters design compliant labels. Food packaged or labelled on or before June 30 does not have to comply. Any other words, logos, symbols or pictures on food packaging must also be clear, truthful and accurate in any representations they make.

mpi.govt.nz or accc.gov.au 13000

SYNLAIT and The a2 Milk Company have extended their long-term infant formula supply agreement. The supply agreement for a2 Platinum infant formula and other nutritional products made on August 23, 2016, provided for a minimum term of five years with a rolling three-year term from August 1 this year. The revised agreement extends the term by twoyears, effectively providing for a new minimum term of five years to July 31, 2023. It increases the volume of infant formula products over which Synlait already has exclusive supply rights and provides increased committed production capacity from Synlait. Pricing terms reflect the commitment on the part of both companies to an ongoing, marketcompetitive pricing regime. The agreed variations are conditional on either NZX granting a waiver from

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News

14 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Trade jitters pushed GDT down Hugh Stringleman hugh.stringleman@globalhq.co.nz A FALL of 5% in the Global Dairy Trade index last week was the largest one-auction fall in 15 months and blamed by dairy market analysts on international trade jitters. Whole milk powder prices fell by 7.3% on average, losing US$284 to finish at $2905/tonne. Prices paid for different contract periods (deliveries spread over the next six months) fell by 6.6% to 11.7% and most of the Fonterra grades offered made about $2900 versus $3100-plus a fortnight ago. Such a fall in WMP prices will have a 30c/kg impact on the farmgate milk price, not including the effects of reductions in butter, cheese and skim milk powder prices. AgriHQ dairy analyst Amy Castleton said the impact of the WMP price movement was softened by depreciation of the New Zealand dollar against the United States dollar since the previous GDT auction on June 20. The NZD was down US2c to 67.5c, which produced a 20c/kg benefit to the milk price forecast. The AgriHQ computer forecast, using the latest GDT results and

the futures market reaction for forward pricing, had lost 8c since the previous GDT event, to now sit at $6.60 while the AgriHQ spot price dropped 42c to $6.66. The spot price is the farmgate milk price calculated if all the season’s production was sold at latest GDT prices. And the NZX milk price futures contract fell 22c to $6.60 during the day after the latest GDT auction and 20 lots or 120,000kg milksolids were traded. Westpac economist Anne Boniface said volatility in dairy prices from fortnightly auctions isn’t unexpected and one set of results doesn’t make a trend. However, Westpac had warned of weaker dairy prices because of slowing growth in China, one of the reasons its forecast was $6.40 in contrast to Fonterra’s $7. In one auction WMP prices had fallen to the lowest level envisioned for the whole season, increasing the downside risk to $6.40. “Fears around the impacts of global trade from escalating trade tensions may also have weighed on prices,” she said. The US had initiated tariffs on imports from some of its biggest trading partners and retaliation had included Mexican tariffs on

Fears around the impacts of global trade from escalating trade tensions may also have weighed on prices. Anne Boniface Westpac US cheese exports up to 25% and Chinese tariffs of 25% on US dairy exports including powder products. “As the auction shows the biggest threat is that we get caught in the downdraft of a slowdown in global trade which puts downward pressure on commodity prices across the board. “It’s certainly this fear that has been weighing on financial markets,” Boniface said. ASB senior rural economist Nathan Penny said NZ stands to benefit from China’s tariffs on US dairy products, making our products cheaper and lifting demand. But dairy buyers are more nervous about the fallout from the increasing trade tensions and the potential impact it could have on dairy demand.

REALLY? Rabobank dairy analyst Emma Higgins is treating Fonterra’s prediction of a milk collection up 1.3% this season with scepticism.

The Chinese renminbi had weakened 3% against the US over the past fortnight, keeping pace with the NZD weakness. Rabobank dairy analyst Emma Higgins chose to delve into milk price forecasts with some scepticism that Fonterra will collect 1.3% more this season compared with last. Given its shrinking market share and the imminent opening of Open Country Horotiu and

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Mataura Valley in Southland, Fonterra’s aspiration suggested very strong national growth. Higher milk production is possible with higher prices and favourable weather but there are also environmental constraints and rising onfarm costs to be considered. On balance, Higgins thinks 2% growth is possible but favourable weather in the spring will be the main determinant.

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News

16 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

YES, BUT: Fonterra is commited to cutting emissions but New Zealand needs to keep its competitive advantage, chief operations officer Robert Spurway says.

Fonterra calls for the reform of the ETS Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA has taken issue with draft recommendations to the Government concerning the transition to a low-emissions economy formulated by the Productivity Commission. The commission was asked by the previous National-led government to inquire into options to reduce greenhouse gas emissions while at the same time continuing to grow income and wellbeing.

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In its draft report released in April the commission said the recommended strategy for NZ involves replacing fossil-fuels, where feasible, with clean electricity together with substantial land use change in favour of large-scale, new forestry plantation and significant growth in horticulture. The land planted in forests would need to more than double, increasing by 1.3 to 2.8 million hectares, mostly converted from marginally profitable sheep and beef farms, it said. Conversion to forestry and horticulture would need to occur at a rate comparable to the conversion of sheep and beef farms to dairying and forestry over the past 30 years. It said the Emissions Trading Scheme needed reforming and agricultural emissions should be included after a transitional period to protect international competitiveness. In reply Fonterra agreed the objective of the ETS is to transition to a low-emissions economy and it could be an important and useful tool for agriculture but it needs improvements and new settings. It called for policy certainty and transparency to minimise volatility and inform long-term decisionmaking along with detailed changes to the ETS design. Closer to home, it believed a transition away from coal is the only sustainable future for dairy processing but 34% of its operational energy needs are met by coal for which there is no viable alternative. “Security and reliability of the source, installed infrastructure and the significant cost differences mean the transition to lower-emissions energy sources is a long-term strategy requiring significant capital investment.” Wood biomass, miscanthus, solar and wind energy have all been investigated, with mixed results. Coal boilers have a life of 30 to 50 years and therefore few opportunities to replace them will come along. “Because no alternatives are viable right now does not mean we will settle for using fossil fuels for the foreseeable future and we are constantly exploring options to move out of coal.” Fonterra cited its programme of energy efficiencies, totalling 230 projects over the past 10 years. Energy used per tonne of product had reduced by 16.8% since 2003 and the savings last season alone would have been enough to power all Wellington households for two years. It recently said the Brightwater plant will convert to co-fired generation with the addition of wood biomass to the existing coal boiler. With funding support from the Energy Efficiency and Conservation Authority the changes will lead to reduction in carbon dioxide emissions of 25%. “Brightwater’s transition is a tangible step toward achieving our target of reducing our emissions by 30% by 2030 and our longer-term goal of net zero emissions by 2050,” chief operations officer Robert Spurway said. Fonterra had achieved 10% reduction in diesel use by the tanker fleet since 2010 and the new joint venture with Z Energy in biodiesel would reduce the central North Island tanker emissions by a further 4%. Onfarm methane and nitrous oxide emissions per kilogram milksolids had decreased by 21% between 1990 and 2014, largely driven by production efficiency gains though the dairy industry’s total emissions had risen because of farming expansion. NZ is one of the most emissions-efficient milk producers in the world and there are only limited ways to further reduce onfarm greenhouse gas emissions. Fonterra suggested an alternative framework for addressing biological agricultural emissions that prevents emissions leakage to less-efficient producers while also working on mitigation. NZ needs to maintain its competitive advantage, both in farm systems and with international dairy processing competitors, he said.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Basin farm will assist nature Annette Scott annettescott@globalhq.co.nz

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SOUTH Canterbury’s Mackenzie Basin has endured a lot of issues over many years and intensification of farmland might well be the answer to some of the battles, a South Canterbury Federated Farmers president Jason Grant says. It is a fragile wilderness, home to endangered native species and world-renowned landscapes. The region is subject to severe dry, serious erosion and under threat by rabbits and wilding pine infestation. However, proposed development of farmland at Simon’s Pass between Twizel and Tekapo has potential to benefit all the above, Grant said. But Dairy Giant Fonterra is not so sure. Dunedin accountant Murray Valentine has been slammed by conservationists for plans to intensively farm the Crown lease land at Simon’s Pass. He has been pushing for a dairy and drystock makeover on the property for the past 14 years. Consents and regulations have cost him millions of dollars as he’s complied with everything decided by regulators. So far 80 consents have been issued. Valentine accepts there are processes and he understands the need for consents. “I know we need to monitor and have controls and we are making sure we are doing it all properly. His plan is to run totally closed farming systems including beef, dairy, sheep and a small deer unit if space permits. Irrigation development is under way with the first water expected on 1100ha of the farm by the end of October. Consents require the rest of the 4500ha irrigation development to be balanced over the next six years.

A large chunk, almost 4000ha, of the 9600ha Simon’s pass property is set aside for conservation and tagged for control of wilding pines and predators. What Valentine struggles with is some anti Mackenzie farming lobby groups’ unwillingness to debate the issues. He referred to the Greenpeace protest in which 12 people were arrested last week after they chained themselves to contracting equipment on the property. Valentine said he understands the protestors ranged in age from eight to 80 years. “I was in my office in Dunedin so didn’t get to meet them. “But I did organise that the farm manager would have taken them out some food if they were there for dinner and we did supply them a portaloo.” The protesters have never made any contact with Valentine. “I have had others like Forest and Bird and Mackenzie Guardians meet with me and I have taken them and shown them around. “We have the debate at the start, what’s the issues they are opposed to? While we are never going to agree on everything we can agree on a lot.” Valentine said almost all the issues Greenpeace raises have answers but they have never made contact with him. “This is the first contact and they still haven’t talked to me.” Grant is confident the farm’s impact on native birds is going to be slim. “There’s a huge area in that Mackenzie Basin and a lot of the irrigation that’s going in at that new farm is relatively small. “I don’t think it’s going to have a real impact on the bird species. It will benefit biodiversity and help restore control of pests such as rabbits and invasive weeds such as wilding pines to desired levels. “There’s a lot of ground set aside for biodiversity and that’s a real

NET BENEFIT: Federated Farmers South Canterbury president Jason Grant says done right, the intensification of Mackenzie Basin farmland will have more positives than negatives.

big plus as opposed to the way it was probably farmed in the past.” Irrigation in the Mackenzie Basin has potential to protect soil erosion from wind damage and the dry climate is quite an issue. “When you look at the big picture, if it’s all done right there will be more positives than negatives,” Grant said. “The spotlight is on Murray. He understands the need for the regulations so he’s not going to go breaking the rules.” Meanwhile, Fonterra said it preferred not to see dairy expansion in the Mackenzie Basin’s sensitive environment but if the farms are there it is legally required under the Dairy Industry Restructuring Act to collect their milk. But before milk is picked up the farms must have all the required

environmental consents, Fonterra said. Greenpeace is calling for water regulations to be updated to prevent dairy expansion and end the intensification of livestock farming across the country. Environment Minister David Parker is re-writing the regulations around freshwater and agricultural pollution, due to be released later this year. Greenpeace sustainable agriculture campaigner Genevieve Toop said weak rules are precisely the reason why mega-dairy farms like the one planned for Simon’s Pass can still get legal consent. “If the Government is serious about cleaning up our rivers they must ban all new dairy conversions and end the intensification of livestock farming across the country,” Toop said.

PROTEST: A Greenpeace protester locked to machinery on Murray Valentine’s Mackenzie Basin farm.

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18 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Kiwi lamb meat still scares Welsh farmers

CHOP: Hybu Cig Cymru chairman Kevin Roberts wants to limit British imports of New Zealand lamb to 65,000 tonnes a year.

Colin Ley WELSH farm leaders, who recently called for a reduced limit on New Zealand lamb supplies into Britain, have been warned Brexit could result in their industry being exposed to greater competition from lower-cost imports. A detailed analysis of the potential impact of Brexit on Welsh farming said the industry needs to prepare for both risks and opportunities

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following the United Kingdom’s departure from the European Union. “Even though Wales exports proportionately less to the rest of the EU than other parts of the UK the future UK/EU trading relationship will still have a critical, direct and indirect bearing on the industry in Wales,” the report, produced jointly by the UK’s Agricultural and Horticultural Development Board and Hybu Cig Cymru – Meat Promotion Wales (HCC), said. “What‘s more, the UK government’s future trade policy might exploit new opportunities for Welsh food and drink exports whilst at the same time potentially exposing the industry to greater competition from lower-cost imports.” Given that HCC’s chairman Kevin Roberts said in May that future NZ lamb exports to Britain should be pegged at 65,000 tonnes a year, the new report can only heighten Welsh producers’ fears over future UK/EU/NZ trade agreements. “Wales is a net exporter of lamb with 30% of UK sheep but only 5% of the UK population. “Lamb is also an iconic Welsh product, has PGI (protected geographical indication) status and is a well-recognised brand on UK and global markets with up to 35% being exported outside the UK.” It’s estimated that over 90% of the exports go into the EU single market, however, chiefly to France, Italy, Germany, Spain, the Netherlands, Belgium and Scandinavia. Welsh lamb exports outside the EU are comparatively small in volume though they get a premium in non-EU markets such as Switzerland, Canada, United Arab Emirates and Hong Kong. It’s against that trading background exposing Welsh lamb exports to tariffs will have a significant impact on many livestock products and will be likely to mean these exports will no longer be economically viable at current prices, it said. The Farmers’ Union of Wales (FUW) also issued a discussion document highlighting market distortions and other negative impacts linked to Brexit. “The upheaval caused by Brexit coupled with numerous political and practical concerns, agendas and obstacles has left us with a void,” FUW president Glyn Roberts said. “This opens up the risk that gulfs between national (UK) policies will lead to major trade distortions and gross disadvantages for some farmers, regions and sectors, something brought into stark focus by the differences between the stated aspirations of the Welsh, Scottish and English administrations in terms of future agricultural policies.”

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HAWKE’S Bay Regional Council has approved and completed the sale of the Ruataniwha Water Storage Scheme intellectual property and assets. Newly formed company Water Holdings CHB, from Central Hawke’s Bay, has bought the rights to the Ruataniwha scheme for $100,000. The sale follows a process that publically called for expressions of interest. The Ruataniwha Scheme stalled following a Supreme Court decision not to permit the exchange of land needed for the dam footprint. The council then decided not to invest further and wrote down the value of its investment, recognising the impediments to the scheme’s viability. Council chairman Rex Graham said “It’s been a difficult road. “We made a public decision not to invest further in the scheme and to sell the assets and IP.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Carpet sales gain traction Alan Williams alan.williams@globalhq.co.nz

A MORE efficient manufacturing business and favourable wool prices are key factors in carpet manufacturer Cavalier Corporation expecting a near fourfold increase in operating earnings. After completing a major and high-cost restructuring of the yarn and carpet manufacturing arms the company will soon be giving shareholders details of a strategic review aimed at achieving sales growth. “The consolidation is behind us, the cost-base sorted and now we can focus on the top line,” chief executive Paul Alston said. Cavalier has reaffirmed expectations of reporting operating earnings (Ebitda) in the $9.6 million to $10m range for the year-ended June 30, when results are released on August 22. That compares with $2.6m a year earlier. The after-tax profit is expected in the $3.7m to $4m range compared with a loss of $1.8m previously.

Alston said a major milestone for the group was reducing borrowings from $40.2m to $29.5m over the trading year, helped by positive cashflows. That level could go lower. The company has renegotiated its banking facility through to January 2020. The heavy fall in the strong wool price over the last 15 months means the group has now moved through supplies bought earlier at much higher prices, leading to better carpet sales margins. The wool businesses, Elco Direct, and the scour operations are trading positively. Cavalier is moving towards long-term, sustainable and profitable growth, he said. The business has come a long way in the past year. In the 2017 annual report, with the trading loss and negative operating cashflow, the auditors referred to uncertainty about Cavalier meeting its trading forecasts and debt obligations.

132HP-166HP

That followed a difficult several years of trading and, more immediately, the manufacturing consolidation programme taking longer and costing more than expected with an associated impact on sales, especially into Australia. However, as that was completed and the wool price fell, the outlook soon improved. The share price has risen to 63c, up 85% on a year ago (34c) and by 54% from the start of this year when it was 41c, according to NZX research data. On a fiveyear basis it is still down 60% from $1.54 and by 63% over 10-years from $1.70. Cavalier hasn’t paid a dividend since March 2014. In April the company said it was going to put its main Cavalier Bremworth brand and top synthetic materials into the custommade rug market where customers can buy to order. Sales were reasonably slow so far but starting to gain traction, Alston said.

New A2 Milk boss is ready to start A2 MILK Co’s new managing director and chief executive Jayne Hrdlicka will start on July 16, replacing Geoff Babidge who had been in the role since 2010. Babidge announced his plans to retire last year, having overseen the company while its shares jumped from about $1 at the end of 2015 to a then-record of $8.75 on the back of successive strong sales as the company’s infant formula attracted strong demand in China. The shares last closed at $11.40 and have gained 41% this year. Hrdlicka was chief executive of Qantas Airways’ Jetstar Group for the past five years and a non-executive director of Woolworths. Earlier in her career she was a partner at Bain and Co in the United States. When her appointment was announced in December, A2 chairman David Hearn said she will focus on supporting the company’s growth strategy across a broader nutritional products platform in established and new markets. Under the terms of employment released to NZX Hrdlicka will be paid A$1.5 million a year, reviewed annually, with a yearly bonus of up to 100% of her salary based on performance against key indicators though the A2 board can also increase or decrease that by 20% on its

READY: New A2 Milk chief executive and managing director Jayne Hrdlicka will start work on July 16.

own assessment of her performance. Hrdlicka also gets rights to acquire A2 shares based on performance, worth up to 1.75 times her total fixed pay in the first year or A$2.625m. In following years she will be offered performance rights of 150% of her fixed pay. The first performance rights will vest when A2 achieves a certain annual growth rate in its diluted earnings per share, yet to be determined by the board. In exchange for the short and longterm incentives she gave up by leaving Jetstar, A2 is paying Hrdlicka A$586,666 and giving her time-based rights for just under 600,000 A2 shares to vest between August this year and August 2019. Those rights aren’t subject to performance hurdles. – BusinessDesk

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News

20 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Farmer leaders back zero target Hugh Stringleman hugh.stringleman@globalhq.co.nz

at this time,” Petersen said. That is because Agriculture Minister Damien O’Connor has tasked the new Primary Sector THE informal Farming Leaders Council to work on a vision for the Group will not form policy or sector. make submissions or statements “We don’t want to cross over frequently, facilitator Mike what the council is now doing but Petersen says. wait to see what it comes up with.” Previously seen on a riverbank The main purpose of the forum in Hawke’s Bay in August last is to show the agri-food sector year, the group wrote an editorial can have aligned views on major, opinion piece in conjunction with contentious matters, be proactive the Prime Minister Jacinda Ardern in working with the Government on July 1. and ensure it is not left out of It’s two media outings – 10 discussions on social objectives. months apart – emphasised firstly “Aligning views within the sector the primary sector involvement has been very positive and things with and care for water quality have moved a long way in just one and secondly an agreement with year of getting together,” he said. the Government’s zero carbon Perhaps another current topic initiative. could be Mycoplasma bovis More correctly called a forum, and the co-ordinated response the group does not have staff to try to eradicate the disease and the 12 primary sector but the leaders had agreed their organisations represented will organisations were already heavily continue to set policies and speak involved in that matter. on their own views. Members are DairyNZ “We don’t speak for the chairman Jim van der Poel, Beef industries and we don’t speak for + Lamb New Zealand chairman the primary sector either, except Andrew Morrison, Meat Industry where we have a unified view. Association chairman John “And zero net emissions by 2050 Loughlin, Fonterra Shareholders’ is one of those. Council chairman Duncan Coull, “We meet a few times a year Federated Farmers president Katie and we have drafted a working Milne, IrrigationNZ chairwoman document with eight objectives but we won’t develop those further Nicky Hyslop, Horticulture NZ president Julian Raine, Federation of Maori Authorities chairwoman Traci Houpapa, Deer Industry NZ chairman Ian Walker, Foundation for RMPP Action Network – Facilitator training Arable Research chairman David courses Birkett, Apiculture For rural professionals or farmers looking NZ chairman to run an Action Group under RMPP Action Bruce Wills Network. No course fees. Register at www. and LIC chief executive Wayne actionnetwork.co.nz/training McNee with Lead Facilitator workshops Mike Petersen, a · Dunedin 18 & 19 July sheep and beef farmer and the · Hamilton 1 & 2 August Government’s Action Network Fundamentals & special agricultural trade envoy, acting Extension Design workshops as independent · Christchurch 11 & 12 July facilitator. · Dunedin 25 & 26 July The group had met Ardern and · Rotorua 14 & 15 August senior ministers For more info contact in November info@actionnetwork.co.nz and then twice this year as well as at events like Sunday 26/08/2018 the launch of the Silver Secateurs Competition Good Farming Venue: Yealands Estate Vineyard, Rowley Practice Action Plan for Water Crescent, off SH1, Blenheim, Marlborough Quality in June. Time: 8:30am – 8:00pm Climate change Admission: Free matters had now risen to the top of the discussion Saturday 03/11/2018 – Sunday 04/11/2018 list and Ardern Manawatu A&P Show had suggested an editorial statement Venue: Manfield, South Street West, Feilding of common views. Time: 9:00am – 4:00pm The Farming Admission: Door Sales Only Leaders Group’s parked vision statement and Should your important event be listed here? objectives began Ph 0800 85 25 80 or email adcopy@globalhq.co.nz with a declaration:

AGREEMENT: The Farming Leaders Group supports the Goverenments goal of net zero greenhouse gas emissions by 2050 but how to achieve it is yet to be determined, member Jim van der Poel says.

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“Working with nature to create the most valued food in the most beautiful and trusted place on earth.” The eight objectives are headed by the question: “Where do we want to be by 2050?” They are: • Trusted and respected by all New Zealanders for doing the right thing for our land, water, air and animals; • Feeding the most discerning people in the world from the most beautiful place in the world; • Vibrant and thriving rural communities; • Growing the best food and growing NZ; • The most trusted nation on earth; • Feeding the world, our people and our land; • Leading the world in zero net carbon emissions from agrifood production and; • A nation rich in biodiversity. The group’s and Ardern’s statement said shared goals cannot be achieved in isolation. “We all need to work together collaboratively and constructively to achieve an outcome that is in the best interests of the agri-food sector and NZ,” it said. “We will not always agree but we have a shared commitment to growing a sustainable and world-

leading agri-food sector – and that’s a great place to start.” Achieving zero net carbon emissions by 2050 is a very ambitious and challenging target for the agri-food sector. “We have agreed that there is more work required to understand exactly what this means and how we can achieve it.

After decades of debate we’re nearing consensus as a country. James Shaw Climate Change Minister “We have asked the farming sector’s climate change experts to work with the Government’s scientific advisers to better define the scope of the challenge and what actions will be needed from farmers, ensuring the Government knows what it can do to support any changes farmers may face. “The recent decision to attempt a phased eradication of Mycoplasma bovis underscored our willingness to tackle a tough problem together, in the best interests of farmers and the country,” the statement said.

Green Party co-leader and Climate Change Minister James Shaw hailed the joint sentiments though there were no commitments included. “After decades of debate we’re nearing consensus as a country. “There’s a lot of hard yards yet to go but this is a very significant step,” he said. DairyNZ chairman Jim van der Poel said the joint statement was not an endorsement of any of the three zero carbon options now the subject of consultation. “We are supporting the Government in the goal of net zero emissions by 2050 but what does that look like and what is required to get there?” Van der Poel said the public image of farming the leaders want to convey is to do the right thing first, work out what is to be done then bring farmers along through the terms and conditions over milk supply. Morrison said the real value in the group is for industry bodies to front up face-to-face on the big issues the primary sector needs to sort out. “We’re able to discuss what needs to happen to address these issues and go back to our individual organisations, which then turn this into action on the ground.”

News

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Lincoln dairy to take more risks FARMERS can expect to see the Lincoln University Dairy Farm (LUDF) take a few more risks as it refocuses its activities on next practice as well as best practice. The highly successful farm is operated under the direction of the South Island Dairying Development Centre (SIDDC), a partnership of seven organisations with a mix of industry good bodies, commercial companies and Lincoln University. Its executive director of close to 10 years, Ron Pellow, is moving to AgResearch and so, together with a refresh of SIDDC’s strategy, the organisation is also looking for a general manager. The refresh has seen SIDDC refine its focus from a wider South Island strategy to one more closely centred on LUDF. SIDDC was originally set up in 2001 to help support the fledgling but rapidly growing dairy industry in the South Island because much of the dairy research and industry infrastructure at the time was North Island-centric. Since 2000 South Island dairying has gone from contributing 23% of the nation’s milk supply to 43% of a now much greater national total. It’s now well supported by South Island based research and extension services and commercial interests. Pellow said the SIDDC model of partnership between commercial and industry-good bodies has been immensely advantageous and together, with the help of the small but effective management team, they’ve achieved more than any one entity would have on its own. The SIDDC partnership includes Lincoln University, DairyNZ, Ravensdown, LIC, Plant and Food Research, AgResearch and the South Island Dairy Event. Golden Bay dairy farmer and SIDDC chairman Corrigan Sowman agrees the model has worked extremely well and says Pellow’s contribution, too, has been huge not only in the more obvious places of LUDF and the Southland Demonstration Farm, now the Southern Dairy Hub, but also in the wider community. Its success at achieving both environmental and economic outcomes has caught the attention of environmental groups more recently, shining a more positive light on dairying. Sowman said with SIDDC entering its next phase the board sees the opportunity with the partnership and LUDF to look ahead to where the next challenges are coming from then demonstrate possible solutions. “The university and the SIDDC partners are willing to accept the risk that comes with trying new approaches and technologies and to do that on farmers’ behalf,” Sowman said. “That willingness allows us to ask ourselves where we want to be in 10 years when it comes to things like greenhouse gases, nutrient loss, nutrient use efficiency, animal welfare, wellbeing of our staff, how NZ Inc views practices onfarm, iwi and cultural values. “Not all of the activities or technologies we try will necessarily be successful so in some cases we may be asking farmers to watch but don’t follow us quite yet. “There will be valuable lessons, though, in both successes and failures.” Answers to the next practice questions must maintain an economic aspect to them so farmers can maintain or increase profitability. Sowman said farmers will have a chance to engage with SIDDC and LUDF management about the next practice questions and solutions. In terms of Pellow’s replacement, the change in title from SIDDC executive director to general manager reflects the need for SIDDC’s new

LESSONS: The Lincoln University Dairy Farm and the South Island Dairying Development Centre will learn from both successes and failures, chairman Corrigan Sowman says.

leader to take responsibility for the physical and financial performance of LUDF and the connection between the farm and local farmers, agribusinesses and local and central government. It’s a strategic role that combines a need for operational excellence onfarm. Sowman said applications close on July 30 and it’s hoped an appointment will be made by the end of August.

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Newsmaker

22 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Edge: Nait criticisms are unfair After three and a half years Michelle Edge leaves her role as OSPRI chief executive. She talked to Neal Wallace about her time in the role and addresses some of the criticisms of Nait.

ICHELLE Edge is unflinching in her view it is unfair and unreasonable to claim Nait has

failed. As a legislative process Nait is relatively young, being introduced five years ago, but it is not fully appreciated how successful the system has been at providing product integrity and mitigating the risk of products that are not traceable and could pose a risk to human health entering the food chain. Nait is working well at saleyards and meat plants but relies on farmers fulfilling their obligations for the collection of traceability data for stock sales between farms. Edge said the exact level of non-compliance is unknown because there are significant gaps in knowledge and data, such as the exact number of farms in New Zealand and how many animals are on those properties.

It is a logical step to take to measure the overall uptake and adherence. Michelle Edge OSPRI National data inside or outside the Nait database on the number of stock held is crucial for biosecurity and especially for managing transmitable diseases. Those gaps and some farmers not providing information limit the availability of data. Nait does not know what it does not know. There has been criticism Nait has performed poorly at tracing livestock in response to the Mycoplasma bovis outbreak but Edge disagrees. She said it had performed well and a biosecurity outbreak such as M bovis will always challenge any traceability system. Nait handles a million movements a month and has prepared 3500 reports for the Primary Industries Ministry as part of its M bovis response. If the disease had arrived in 2014, a year after Nait was formed, Nait would not have had sufficient history of stock movements to help MPI. Now the time was right to do a national audit. Edge suggested one be held next year. It could be based on the Australian national livestock standstill exercise, in which a statistically significant number of premises were audited to determine the exact number of animals and animal movements that were then compared with Nait data to determine how well

the traceability system functioned. “It is a logical step to take to measure the overall uptake and adherence. NZ should conduct a nationwide distribution exercise to test that.” It would identify gaps and ways to fill them and be part of the natural evolution of any legislative programme to implement, evaluate and improve. To source data missing from Nait or expand it to include sheep would be a major exercise, requiring significant change and compliance, which was counter to the simplified system sought by the industry. Edge is not advocating a new system or dramatic changes, saying the Nait review highlighted improvements to the system and found NZ traceability has performed well when compared internationally. But an option to improve the information gathered is to align animal status declaration forms (ASD) with Nait through a documentation trail from farmer, transporter and receiver. The specific numbering of the form and the addition of slaughter surveillance data would provide animal identification for any diseases and the ability to trace them back to the source. The consignment declaration would also help verify records of Nait movements. She is confident technology will eventually find a simple, workable solution. Britain has introduced animal passports that accompany livestock transactions but Edge said physically monitoring every transaction in the field in NZ is not feasible, making regular national audits coupled with the presence in the field of inspectors a key. NZ is no different to any other country learning and refining its traceability system following a biosecurity breach. Despite the relative muted international reaction to NZ’s M bovis outbreak, Edge hopes it will be a wake-up call to farmers to be more diligent in fulfilling Nait’s requirements. An independent review of the Nait programme made 37 recommendations of which 23 are being implemented operationally. The rest are regulatory and being considered by MPI. They broadly focus on retaining accurate animal location and tracing information while making it easier for users, clarifying roles, responsibilities and standards for users and agencies, improving the design and other aspects of Nait and improving farmer and industry uptake, use and compliance. The review process is now entering the consultation and implementation stage. In addition, MPI and Nait have begun strengthening compliance

DEDICATED: Outgoing OSPRI chief executive Michelle Edge wants to help develop crucial industries for New Zealand and Australia.

by doing joint operations of more than 200 farms and saleyards to check adherence to Nait. In March MPI also did a further 19 proactive operations including checking stock crossing Cook Strait. MPI’s compliance investigations manager Gary Orr last month said while M bovis improved knowledge of Nait, some farmers are still ignoring their legal obligations. Because of those operations, infringement notices were issued, warning letters written and eight investigations could result in further infringement notices. Edge said her joining OSPRI coincided with the National Pest Management Plan review for TB, which resulted in a $20 million cut in income. Her first job was to restructure

OSPRI and implement a changemanagement process. The Nait review is in a similar position, with a likely period of change following the implementation of the recommendations to set a course for the company for the future. While at OSPRI she also implemented the TB programme, an unusual project in the sense NZ is the only country in the world addressing wildlife vectors and livestock spreading the disease. Edge, who was born and raised in Melbourne, said her love of science developed into a fascination with food production systems. She studied agricultural science at Melbourne University then had stints that included working for the Victorian government as an animal welfare scientist where she

wrote standards and legislation for animal welfare. For four years before joining OSPRI Edge was chief executive of the Australian Meat Processor Corporation, similar to the NZ Meat Industry Association. “I am interested in helping to develop what are crucial industries for NZ and Australia.” Edge and her daughter then moved to NZ when she took up the OSPRI position but with her daughter starting school next year the time is right to rethink her career and reset her priorities. She said she enjoyed working with staff and farmers, who she described as earthy, genuine and realists. Edge and OSPRI are still to confirm when her tenure will end and she will ensure a smooth transition.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Lepto gets closer look with funding Leptospirosis is an insidious disease that has weaved its way like the corkscrew bacteria it is into the health statistics for rural New Zealand. But behind those numbers are faces of the people whose lives it has a debilitating effect on. Richard Rennie reports on new research poised to better understand those effects and how they can be avoided.

ASSEY University researchers are celebrating receiving over $1 million in funding from the Health Research Council to look harder at shifts and increases in rates of infection for the country’s most common livestock related disease, leptospirosis. Their work will involve research collaboration between Massey and Otago Universities and Environmental Science and Research (ESR). “The beauty of the funding is that it not only involves some of the country’s top epidemiologists, genomic experts, environmental scientists and general practitioners it also enables us to engage with social sciences for the first time,” Massey principal investigator Associate Professor Jackie Benschop said. “We already know a lot about the what when it comes to lepto but this engagement enables us to better understand the why behind infection rates.” The funding comes as professional concern about the disease grows for Benschop and her colleagues. Last year marked a major surge in infection rates, with the 150 reported cases 2.5 times greater than the four year average before it. This year is also on track to confirm that high rate was not a blip with ESR data indicating it will be at least as high again. Typically, two-thirds of patients are hospitalised with many suffering from the infection long after it has passed. The high rate is particularly disturbing given the relatively high profile the disease

has always had in the rural community and the availability of effective vaccines and knowledge about wearing protective clothing around livestock. The research funding comes as the disease appears to be shifting in terms of what sort of people are infected, where infections are happening and even what strains are blighting certain parts of the country.

The pathways for the disease appear to be changing and we are hoping to learn more about why. Jackie Benschop Massey University “The pathways for the disease appear to be changing and we are hoping to learn more about why. “The incidence rate is still within farm workers but we have seen a particular increase in Waikato in the past year and also in women. Typically lepto has been a working man’s disease with less than 5% women getting infected but last year that was much higher at 14%.” Researchers suspect flooding, which spread the disease in contaminated water, might explain Waikato’s higher infection rates, accounting for almost a third of last year’s infections with an elevation over autumn when cyclones were experienced there. Researchers are also starting to recognise shifts in strain location

because of water pooling, with the strain that is more water tolerant becoming more prevalent in wetter areas. The longer-term implications of climate change and disease spread are of particular interest to Benschop and directly reflect the concerns raised last year in a Royal Society report on climate change’s health impacts. Regional variations are also being noticed, with specific strains of the disease becoming more prominent in Northland and Hawke’s Bay. Beyond the spread and pattern changes Benschop is looking forward to a better understanding of behavioural shifts that might be contributing to disease outbreaks. When the research starts next year the soft sciences of social research intend to kick in, with researchers intending to talk individually to about a fifth of those infected. “We want to go much, much deeper than the usual tick-box approach, which is where the likes of my veterinary, biological sciences and statistics training goes. “We may know people have ways to protect themselves but still get infected. We need to go much deeper to understand why that is.” Benschop has some experience working with social science techniques that can be applied here. She and Massey social science colleagues used such a qualitative approach when interviewing Tanzanian butchers about their attitudes to red meat safety. “The most interesting thing about that research was finding how gendered the businesses

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TRACKING: The longer-term implications of climate change and disease spread are of particular interest to Associate Professor Jackie Benschop in her work on leptospirosis.

were and how you approach males versus females can make a lot of difference. That is the type of nuance that social science techniques can play a part in working out. “In this case we have a lot of the

data here but we have not looked yet. “We want to look closer at the demographic, health and morbidity data around all aspects of the patients’ lives,” Benschop said.

Opinion

24 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

EDITORIAL

Like buying back the family farm

WNERSHIP of Farmers Weekly is now with GlobalHQ, in Feilding. We couldn’t let the opportunity pass. It’s like buying back the family farm. In 2002 at Country-Wide Publications, discussion of the need for a weekly farming newspaper began. Three main points were noted: Farming is the single biggest industry in New Zealand, farmers are among the most innovative and progressive business people and need timely, credible and relevant information. The concept has had to change very little. We launched Farmers Weekly on September 3, 2003. We underestimated how hard it would be to get advertisers to support us and we lost a lot of money at first. But we worked our butts off, turned it around, grew it to number one and sold it to NZX in 2009. The break from publishing and deadlines was good for a while but media is too exciting, fast and dynamic for us to be spectators. After a two year break, I returned to the game, heading the Fairfax (Stuff) agrimedia team. The last few months have been a rollercoaster. First the news Stuff’s agri division was being sold or closed. Then news of the opportunity to buy the Farmers Weekly from NZX. One door closed and another opened. So here we are, under the GlobalHQ banner, still in Feilding with the same commitment to the Farmers Weekly’s core values we identified in 2002. NZ farmers are well served by the media. You’re inundated. You have to filter, not find information. Our role is delivering wellpackaged, easy-to-consume and relevant news worth reading. There was no immediate need to change anything but we have. A new section, On Farm Story, takes you behind the farmgate every week in print and video. Go to farmersweekly.co.nz to view then subscribe to our free email newsletter to get the link so you never miss one. We also relaunch Dairy Farmer magazine, free to every dairy farmer, every month starting August. We’re proud to be back – this time forever. From day one 1% of the Farmers Weekly and Dairy Farmer revenue will be donated to the Rural Support Trust. Call them on 0800 787 254 – for a confidential chat. Thank you for your support. This week $681. Dean and Cushla Williamson

LETTERS

Wool price not shearers’ fault IN REPLY to Tracey Neal’s letter to Farmers Weekly, June 10, regarding a 25% increase in shearing costs. I am a 62-year-old, have spent all my life involved in the shearing and farming industries. When we were farming my wife always went out of her way to feed the shearers exceptionally well – in turn the shearers and shed hands always looked forward to coming to our shed and this also helped to create a good working atmosphere. As for supplying beer (and soft drink) after work, this also helps to create a better working relationship between the farmer and the shearing gang. For far too long shearers have had to put up with substandard working

conditions – draughty sheds, no toilet facilities, no running water, badly presented sheep covered in dags and not emptied out and sheds that are nearly impossible for the shed hands to pen up because the sheep won’t run. Come on Tracey, we are living in the 21st century not the 18th century. I bet they don’t send daggy sheep and full-in-the-gut sheep to the freezing works because if they did they would be sent back. She should also go through the freezing works and see their facilities regarding washing, showering and general work conditions. It is like a five-star hotel so why should shearers be treated any differently. Also, the price the farmer receives for wool is nothing to do with the shearers. It is

totally out of their control and not their fault that it is at a low level. When lamb prices have been low did she go to the freezing industry and ask for a reduction in her killing costs? I don’t think so – so why try it on the shearing industry. It is not the shearing contractors’ fault that the shearing rate is going up 25%. It is the fact that the employment law has caught up with the shearing industry and they are having to abide by the law just as other industries are. NZ is faced with a shortage of shearers due to changes in shearing patterns, shearers having to go overseas to get continual, year-round work, better pay rates and working conditions overseas and a lack of training courses and fewer

young people entering the industry. There is one point I do agree with Tracey on – it is up to the contractor to provide quality workers who are competent at their job as in some cases the job quality has not been what is expected in the way of clean shearers and competent shedhands. Ken Ballantyne Hamilton

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Trade stance a worry for farmers Charles Finny

HILE New Zealand farmers should be pleased the Government has finally achieved lift off for a free-trade negotiation with the European Union they should be worried by some of the comments by Trade Commissioner Cecilia Malmstrom about the existing quota commitments by the EU for some NZ meat and dairy exports to the EU. In one interview I listened to Malmstrom suggested the UK and EU would simply split the quotas according to average trade flows over three recent years. That is sub-optimal for NZ exporters because it reduces the flexibility to choose where one exports to in Europe and it was also arrogant and therefore a concern for the forthcoming negotiation. These tariff rate quotas (TRQs) are legally binding commitments that were entered into by the EU in the Uruguay round of world trade talks. They need to be changed through a negotiation in the World Trade Organisation using procedures set out in Article XXVIII. Essentially, these provisions say, in this context, that NZ should be no worse off accesswise as a result of changes to the membership of the EU. By splitting the TRQs in the way proposed NZ will be worse off because we will have less flexibility. Article XXVIII is not perfect. It does allow the EU to make unilateral changes but it also gives NZ the right to be compensated by increasing tariffs against EU imports. Hopefully, things won’t come to retaliation. The point is that the EU needs to negotiate with NZ and

The

Pulpit

other affected parties. It cannot act unilaterally. I hope that message is being delivered forcefully by the Government. My firm view is that NZ should be seeking, as part of the negotiation in the WTO, not only the maintenance of the TRQ levels into the EU but compensation because the value of these commitments is being diminished. The United Kingdom is a big hunk of the EU economy. Having an economy of that size and with so many consumers leave the EU must affect the demand for our product. I suspect strongly that the United States and others will be adopting a similar negotiation position in product areas where their interests are affected. By reaching agreement in the WTO on these terms we will be in a good position to begin the freetrade negotiations on the products in question. Products such as butter and sheep meat will almost certainly be deemed sensitive by the EU. The prospects of achieving full free trade in these products, at least in the short term, are poor.

EXPERT: Charles Finny is a government relations consultant at Saunders Unsworth and has had a career as a diplomat and trade negotiator.

It is likely the EU will seek a staged liberalisation and might well seek to use a tariff quota with increasing levels of access as the mechanism to stage the expansion in our exports.

Products such as butter and sheep meat will almost certainly be deemed sensitive by the EU.

The splitting of our existing quota arrangement between the EU and UK will potentially disadvantage NZ considerably in the negotiation. We would be starting the

NOT ON: European Union trade commissioner Cecilia Malmstrom’s suggesting New Zealand quotas for exports to Europe be split between it and Britain is arrogant, former trade negotiator Charles Finny says.

negotiation with a much lower, smaller level of quota access to the EU than we enjoy now. Current trade levels should be the starting point for any negotiation on quota expansion, not an artificially reduced level. The splitting of the quota with the UK post-Brexit causes further problems. It assumes NZ will be content with the UK operating an EUstyle protectionist regime for agriculture. That is not my expectation and I hope all farmers agree with me. We want complete, free access to the UK market for our key agricultural products. While full free trade in all of agriculture might take several years to achieve with the EU I hope the negotiating dynamic will be different. It is clear full, free trade in all of

agriculture might take many years with the EU. But for the NZ-UK free-trade agreement I hope full, free trade will be achievable after only a very short transition period – if not on day one. No one expects the free-trade negotiations between NZ and the EU and NZ and the UK to be easy. But let’s not hamper ourselves by agreeing to this EU proposal to split the tarrif rate quotas. We need a strong message to the EU at the WTO that this proposal is unacceptable.

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

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Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

One brand for all exports necessary Alternative View

Alan Emerson

AS I wrote last week I didn’t believe how busy Federated Farmers are advocating on our behalf and I was concerned over the limited resources it has to do it. I also mentioned I was mightily impressed by Brian Richards who pointed out we’d spent 120 years producing more for a lesser return but we need to produce less for a greater return and our target market is just 2% of 1.2 billion people. He also said the agribusiness industry is a disparate collection of tribes and we’re playing at marketing our products. His presentation was considerably broader than that and I’ll revisit it sometime in future but it did question most of what we do. As far as our sector being a bunch of disparate tribes is concerned I totally agree. For a start, we have Federated Farmers, Beef + Lamb NZ, DairyNZ, Forest Owners, Farm Forestry, Horticulture NZ, Pork Industry

Association, Wine Growers and Wools of NZ to name a few. Add to that the Meat Industry Association, the Dairy Companies Association, the dairy cooperatives, the meat co-operatives and groups like Merino NZ and kiwifruit and avocado producers and you have, as Richards described, a collection of tribes all doing their own thing at great expense to the farmers and producers. The costs are prohibitive. We’re severely diluting our efforts and, with the exception of Feds, we’re largely ineffective.

The issue is we don’t just need a brand for meat. We need a brand for everything we export.

The issue for me is that we need one group representing and advocating for our primary industries, not a collection Add to that creating a NZ brand aimed at the top end of the market – the 2% of 2b people who live in big cities. For a start, we have everyone running in different directions doing their own thing. I did note in the B+LNZ consultancy document the Taste

Pure Nature initiative. I visited the website and it seemed to be a lot more sizzle than sausage. For the record, I thought the accompanying DVD was a waste of money. The issue is we don’t just need a brand for meat. We need a brand for everything we export and that won’t be achieved by everyone doing their own thing and creating confusion in the marketplace. It is a prime example of the collection of tribes and silo mentality. Those silos are costing farmers a fortune. For example, Feds raises $6 million from farmers while B+LNZ taxes us at four times that amount and wants a considerable increase. We’re not actually short of resources. We’re just not doing it right. For example, DairyNZ has a budget of almost $90m. The Red Meat Profit Partnership raked in $64m, albeit one-off and B+LNZ gets $24.5m. So, NZ farming organisations aren’t actually short of money. By my maths we contribute $120m a year plus a one-off into the RMPP of $20m, the total cost of the latter being $64m. To ask a simple question, how much does our annual $120m contribution add to our bottom line?

FLAGSHIP CAMPAIGN: Alan Emerson is not impressed with the Taste Pure Nature effort.

Where is the blueprint for the future? I would respectfully suggest we can do considerably better than we are. Concentrating behind the farmgate as the RMPP does won’t to cut it. That’s not where the problem lies and we’ve spent 120 years doing just that. We need to develop one, single NZ story and use it incredibly selectively. We need leadership capable of kicking butts and taking names to pull everything together. Demolishing the silos of the tribes won’t be either easy or popular. I’d like to see Agriculture Minister Damien O’Connor involve Richards in his think tank. It also needs to be broadened to include strategists and scientists, certainly in the field of nutrition and cosmetics. We’ve got to get rid of our gravy trains as B+LNZ is becoming. I find it iniquitous it is now looking to farmers for a levy increase. Unlike Feds, a voluntary

organisation, if most farmers who vote want to increase levies we have to pay them. While I support the RMPP’s farm assurance programme there isn’t a lot else that spins my wheels. As I’ve said, we need to look forward, not back. We need to produce less for more. I also note that Stephen Bell’s excellent editorial in Farmers Weekly about the Taste Pure Nature brand for NZ meat raised the ire of both MIA chairman John Loughlin and B+LNZ supremo Andrew Morrison who wrote a Pulpit for Farmers Weekly. It was pure flummery, puff and self-congratulatory PR in my view, totally ignoring the very real challenges of the future. To survive we need a revolution and now.

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

Golf, beer, trees and travel beckon From the Lip

Jamie Mackay

IT’S goodbye from me. A chance conversation at Fieldays with the new owner of Farmers Weekly, my old mate Dean Williamson (actually he’s the old owner who bought his baby back from NZX) was the catalyst for a change of heart about writing this column. Dean, who took over the reins again last week, and I were discussing some of the regular columnists in this fine publication. The words male, pale and stale were uttered (by me, not Dean) along with the recognition that every dog has his day and it’s important to recognise when your day is done. Therefore, I’m going to sign off by finishing with some of the standouts from my tenure in this publication. But before I do, I want to get in a shameless plug. After all, getting in some

shameless plugs was one of the key attractions of writing a column in New Zealand’s leading rural publication when the former editor (and co-founder of the publication alongside Williamson) Tony Leggett offered me the opportunity. Incidentally Dean, Tony and I all set out as eager young 30-somethings in the rural media in the 1990s with a view to global domination. While we didn’t quite get Rupert Murdoch status I’m proud to look back and say we’ve collectively had a reasonable crack at influencing what you’ve read and heard for past 25 years. But enough nostalgia, here goes for the shameless plug. Mycoplasma bovis and strong wool aside, farming has never been better. Most of us baby boomers are at a stage in our lives where, from here on in, we’re really only working for our kids’ future wealth. Part of my motivation for stepping down from this column is to spend more time doing the stuff I want to do. Golf, fitness, craft beer drinking, planting native trees, charity work and travel readily spring to mind. With the latter in mind I’d like you to consider joining me on a 17-day southern United States

farming and sightseeing tour departing November 7. Highlights include visits to the NASA Space Centre in Houston, Elvis Presley’s Graceland home in Memphis, the Country Music Hall of Fame and Grand Ole Opry in Nashville, the Muhammad Ali Centre and Churchill Downs, home to the Kentucky Derby, in Louisville, the Jim Beam Distillery and the leading thoroughbred breeding studs in Lexington, a steamboat river cruise on the mighty Mississippi and three wonderful days in New Orleans taking in the historic French Quarter, the Louisiana cuisine and all that jazz. Throw in an NBA basketball game, six farm visits along the way, plus the associated taxdeductibility, and you have the trip of a lifetime. Do it. Spend the money while you can. If you don’t, your kids will, once you’re gone. That’s me, I’m also almost gone but not before I sign off as promised: Standout farming story: There’s been so many. The dairy downturn of 2014 and 2015, Psa in kiwifruit, the botulism botch-up, Beingmate, Shanghai Maling and Silver Fern Farms, Crafar Farms and the foreign farm ownership controversies, climate change, ETS, the environment debate, dirty dairying and the demise of

strong wool. You can take your pick from that lot but the mother of all farming stories is M bovis and it hasn’t finished playing out yet. We all love a happy ending. I hope we’re not reaching for the tissues come spring.

The memory of being there when the mighty Pinetree went to his grave is one I’ll take to mine.

Standout world story: The horror of 9-11 happened before I appeared on these pages. For most of us it will be the biggest event of our lives unless Trump gets trigger happy. The Don still amazes me. He’s broken every rule in the president’s handbook. He’s a sad reflection of the times we live in where the instant gratification of mindless reality television and social media rule. Love him or loathe him, he’s the most fascinating president since JFK. Standout politician: In my time in radio and print I’ve had the privilege of weekly contact with our four most-recent prime ministers. Helen Clarke, John Key,

Bill English and Jacinda Ardern, though she’s still in her political infancy, are all outstanding in their own right. I’ve always rated Damien O’Connor and Winston’s a lot of fun but the standout is Key. Like Trump, he was not a career politician. Time will tell if Trump can do a Key and leave with dignity on his own terms and leave the place in better shape than he found it. Standout sportsperson: Richie McCaw, Lydia Ko and, more recently, the Barrett and Whitelock farming and footy clans come to mind. But for me there can only be one. Sir Colin Meads. Getting to meet and know your absolute boyhood hero is one thing. Being given the honour of officiating at his funeral is next level. The memory of being there when the mighty Pinetree went to his grave is one I’ll take to mine. Thanks for having me on these pages. It’s been an honour and a privilege. I wish Dean and Cushla all the best for their new venture. This paper’s in good hands.

Your View Jamie Mackay is the host of The Country that airs on Newstalk ZB and Radio Sport, 12-1pm, weekdays. jamie@thecountry.co.nz

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Meat sector needs good pilot Meaty Matters

Allan Barber

FOR all the noise around the threat posed to the red meat industry by alternative proteins it is only one of the challenges the sector has to confront over the next few years. Other key disruptive issues identified by Government and industry leader groups include climate change requiring the reduction of greenhouse gases and progress towards net zero emissions by 2050, significant improvement in water quality and the need to move agrifood production up the value chain. All these issues signal the need for a major refocus of the New Zealand red meat sector’s approach to all aspects of its business. A number of global forces – environmental, technological, generational, sociological and economic – have conspired to exert pressure on agriculture to reduce its environmental footprint while at the same time meeting the expectations of different groups of consumers. Potential disruption by meat alternatives like Impossible Burgers and Beyond Meat should be viewed in the context of all the other challenges rather than being seen as an isolated competitor for a share of consumers’ wallets. Disruption will not be restricted to alternatives to meat but also to co-products such as laboratorygrown leather so it is important for overall profitability to look

at competitors for the whole animal carcase, not just the meat component. The positive from this confluence of critical challenges is the availability of time to research, plan and take appropriate action. Work Beef + Lamb NZ has already done developing the Red Meat Story, Taste Pure Nature origin brand, Farm Assurance Programme and environment strategy as well as research into alternative proteins combined with the work of the Farming Leaders Group provides a good foundation for the future of the meat industry. What is certain is farming in the next 30 years will be nothing like the last 30, which have, in turn, been massively different from the period before that. Technological disruption in the form of alternative proteins has been around for a number of years but the difference now is the extensive capital being invested in trying to produce products that can genuinely replicate the taste and textural properties of red meat. The research by San Francisco consultancy Antedote demonstrates the particular threat and also opportunity presented by the move of alternative meat products into heavily branded consumer foods. Building production scale will not happen overnight while at the same time the world’s population and demand for protein continue to grow. But the pressure is increasing on the meat industry, led by B+LNZ, to communicate the benefits of natural, grass-fed red meat while developing effective responses to the health and environmental claims of much better funded alternative protein products.

NOT ALONE: The threat from synthetic meats is just one of the challenges facing the red meat sector.

The Future of Meat report identifies seven underlying trends, particularly a generational change in attitudes to life and diet, a consumer backlash against factory farming, typified by feedlot-raised, grain-fed beef in the United States and factory-farmed chicken, and health concerns as the main inspirations for the move towards vegetarian alternatives. This, in turn, presents an ideal opportunity for NZ grass-fed, naturally raised beef and lamb to take the high ground and move upmarket to assume a premium position. The report said “It is a wakeup call to ensure we understand what is important to premium customers, that we protect our natural food production systems and products and do more to ensure that our consumers and customers recognise that NZ’s red meat farmers are in the natural foods business.” Antedote presents four

potential scenarios to challenge the thinking of the sheep and beef sector on how it responds to the alternative proteins threat but they can equally be used to consider the response to the other environmental and economic challenges. In summary, the four scenarios are red meat becomes a niche product, red meat moves upmarket, red meat is a reluctant choice and lastly it remains an everyday preference. Each scenario demands a quite different industry response though, realistically, the probability is none of them will eventuate to the total exclusion of the other three. However, the most likely outcome, at least in the initial phase, will be a gradual move towards the premium position proposed in the second upmarket option. It will be important to identify the direction that makes most sense, avoiding expenditure of

scarce money and resources on trying to compete in every scenario. B+LNZ market innovation manager Lee-Ann Marsh says it is necessary to remain agile, using the foundation of the Red Meat Story to create a strong value proposition while moving steadily towards the premium space. There are two separate pieces of work to be done following the Future of Meat alternative proteins report: firstly, an industry visit to China in August to investigate new paths to market that would allow the sector to capture greater premiums, involving testing a number of scenarios in market with target customers and consumers, at least one looking beyond red meat, and, secondly, looking at how to maximise the entire carcase, better understand the parts of the animal that might be prone to disruption and consequently maintain or create more value in those parts. A big challenge for the sector is to ensure buy-in from all industry participants at the same time so no single segment either lags behind or gets too far ahead of the exercise. Getting the Government on side with plans to mitigate climate change and creating a positive public perception of farming practice will be just as important as gaining support from farmers and processors for valueenhancing market initiatives. Plotting the course that satisfies all four of these very different but important stakeholders will require very skilful leadership.

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

Sheep breeder recalls lessons of old monk’s peas From the Ridge

Steve Wyn-Harris

I’VE just spent a happy two days in Dunedin at Beef + Lamb Genetics’ annual conference. This is a gathering of many of the country’s stud sheep ram breeders. Usually competitors for ram sales, we meet up each year to swap knowledge and learn from each other, the scientists and boffins with the aim of lifting the performance in our own stud flocks, that of our ram clients and consequently the whole of the New Zealand sheep industry. To my shame I’d forgotten much about the Austrian monk Gregor Mendel who published his new theory on inheritance in the 1860s. We forget that before Mendel

anyone who bothered to consider just how we and everything else came into existence believed the age-old theory we were a mixing of parental essences, much like mixing blue and yellow to get green. Then Mendel did his pea breeding experiments and proved discrete units of inheritance, which we now call genes. determine the traits we observe in an individual. He believed it was single genes but we now know that for many characteristics it is often many genes that are involved. We heard from Dr Steve Miller who used to run Agresearch’s beef genomics programme and is now based in the United States running the Angus Genetics research programme. Instead of showing us pictures of the progeny, great and great great progeny of crosses between wrinkled and round peas he had slides showing DNA strands and how once split the influence of a grandparent can be quite different. Steve reminded us though

we have four grandparents the common misunderstanding that we inherit 25% of our DNA from each grandparent is wrong. It is on average but who among us is or admits to being average.

Mendel proved discrete units of inheritance determine the traits we observe in an individual.

So, when you consider one of your children and think she is a lot like your own mother it is quite possible she has acquired far more than a quarter of your mum’s genome. We stud breeders were dealing with these matters, which I’ve simplified as best I can, because we now have a tool about to go live that will greatly assist our selection decisions. Those of us using Sheep Improvement’s breeding

programme (and frankly it should be every stud breeder if their clients want quantifiable genetic improvement leading to improved sheep performance) will soon be using and talking to clients about Single Step. It is a genetic evaluation method that incorporates genomic information from the DNA samples many of us take from our stud sheep and incorporates it with all the pedigree, performance and progeny data simultaneously. Now the model is informed by actual genetic data as part of the inputs the programme will know what percentage a grandparent’s actual genetic contribution is without estimating at the average of 25% based on pedigree. The selection lists will reflect that. Just as importantly, Single Step enables the genetic potential of younger breeding animals to be identified much earlier and therefore speeds up genetic gain by years. Mendel was unrecognised in his lifetime. He presented a couple of papers with his rules

on inheritance but none of the scientists present recognised their importance. If they had, Darwin wouldn’t have spent decades struggling to explain his own theories on evolution and being puzzled at the mechanism that allowed successive generations to acquire then pass on genetic benefits. Mendel told one of his friends “My time will come”. And come it did. Sixteen years after his death in 1900, three independent researching biologists rediscovered his work on inheritance and it quickly became the foundation of inheritance and genetics as we know it. Mendel would have been tickled pink if he’d been sitting with us in Dunedin listening to some complex work that has resulted from his pea breeding experiments 160 years earlier.

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

On Farm Story

28 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

Sharing open and honest farming Rangitikei sheep and beef farmer William Morrison has connected his hill-country farm to the world through social media with images of the breathtaking property a hit on Twitter. By looking to the future he’s building on his family’s 150 years on the land, as Bryan Gibson found.

TOP one of the majestic peaks on Mangara Station William Morrison snaps a picture on his smart phone and sends it out to the world on Twitter. Like many of his posts, it will be liked and retweeted by people around the globe. “It never ceases to amaze me how much positive interaction I get from people all around the world and in all walks of life,” Morrison says. “And that’s incredibly powerful and I think it’s something as Kiwi farmers that we do take for granted and can maybe leverage and use a bit more in the future.” Being the sixth generation of the family to farm in the region, Morrison and his brother Richard, along with father John and cousin Graham, have built up their farming operation from the original home farm on the flats to include Mangara. Bought in 2013, the 994ha hill country property brings their breeding and finishing operation to 1394ha effective. In the hills Morrison looks after the breeding stock with farm manager Daniel Clayton. When he’s not showcasing the farm to the world through his phone Morrison is often away from the farm in his role as national farmer council chairman with Beef + Lamb New Zealand. “That’s why Daniel’s so important and why I’m the shepherd here now,” he says. Morrison Farming has grown in land size, staff and scale with the acquisition of Mangara,

SCALE: Adding Mangara to the mix has given the Morrisons options in their farming business.

something Morrison says was important for the family business to prosper. “You always look at your business model and the members of your family and you’ve just got to figure out what’s economically viable for now and for the future. It always helps to have a bit of scale and independence within a family business.” Mangara has provided that scale but it has been hard work to develop the block, which has no mains power supply, and the work

isn’t finished. The first task was to build a bridge to gain access to the whole property. “Then you think fencing and fertiliser but you need water to do all of those things so we put in a water reticulation scheme. We’re still building that as we continue to do the development.” A two-stage pumping system draws water from beneath a stream bed. It is pumped up to storage tanks. A diesel generator

MANAGEMENT: Mangara owner William Morrison, left, with manager Daniel Clayton.

then pumps the water to four more tanks for gravity feeding around the farm. Fencing’s also been a priority with the original 22 paddocks being turned into 44 at a rate of about 3-4km a year. “It’s a battle because you spend a whole lot of money buying a place and then you need to spend more to make the place work.” It hasn’t been without obstacles, either. A storm in 2015 left them unable to access parts of the farm. “It was a big wake-up call. “We probably lost about half of our paddocks. They became not stockproof and we couldn’t get around half of the farm for a month until it dried out and we could get a digger in,” Clayton says “There was a lot of slipping.” Yet Morrison credits Clayton with getting stuck in and getting the farm back on track. “It was tough,” Morrison says. “Daniel said we’ve just got to fix this so he started the next day just plodding through the mud carrying posts and netting and waratahs and wire and bits and pieces and you just start plugging up holes. “How do you eat an elephant? One bite at a time. “And we got on top of it. We had a functioning farm in two months and you never look back.” Water is one thing but a lack of it is something else again and last spring is remembered as the one that passed them by. “We didn’t get spring. What that looked like is that we got 38mm of rain. So there’s no massive damage, it’s not spectacular like a

Photos: Aaron Davies

It’s an unspectacular, quiet battle that you have. William Morrison Morrison Farming flood but we’re just coming out of it now and doing our monitoring and for the last 12 months we grew 20% less feed than any other year. “So if you think about our raw resource that you’ve got to work with, that’s what’s really been challenging. “It’s an unspectacular, quiet battle that you have.” But through these battles the Morrisons have stuck to their plan to use best-practice farming methods and superior genetics to create a profitable farming business. Each year the business calves 420 mixed-age cows and 220 two-year heifers while 250 Ezicalve bulls are sold as yearlings, primarily to the dairy industry. Developing a branded Hereford bull aimed specifically at the dairy-beef industry was commonsense to Morrison back in 2007. “We were looking at large growth in the dairy industry and saw huge opportunity for dairybeef production. “We saw that as a great opportunity but we needed a brand to differentiate our bulls and our genetics from all the other bulls. We wanted to add value to

On Farm Story

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

TWEETER: William Morrison keeps the world in touch with what is happening on his farms.

our bulls but also for the dairy farmers that buy them,” he says. The brand is co-owned with the Cranston family, who breed Herefords nearby. The similarly-named Ezicare sheep breed is based on Texel, Wiltshire and Coopworth genetics. They aim to produce ewes with high reproductive performance that bear fast-growing lambs that reach 18kg in 100 days. They lamb 4500-5000 ewes and 1000-1500 hoggets each year. With the growing business

comes the need for more staff. The two at Mangara are joined by Richard and the three staff from Fern Flats when the big jobs come and Morrison says getting the best out of people is is an exciting challenge as the nation’s demographics change. “If you start to compare the difference between my father, who’s 70, and grew up on a small family farm, to now being part of a family corporate and having to work with millenials who are our junior staff who haven’t grown up

on farms, they have quite different mindsets and values,” he says. “So there’s just a lot of change around the demands of working with people and having a good, high-functioning team.” Being away from the farm so much with his industry roles Morrison leaves Clayton alone at times but while he’s yet to reach 30 he has 10 years’ experience at Morrison Farming so it’s in good hands. A farming intern has been brought on board as well to give

VISTA: It’s scenes like these that make William Morrison’s social media posts such so popular.

Photo: William Morrison

someone a taste of farming and to bring on the next potential staff member. “An intern is sort of part of that process of helping young people in the industry,” Morrison says. “And it’s working towards getting our next full time junior. It ticks a bunch of boxes.” Armed with a smart phone and working alongside millennials, Twitter is far from the only bit of technology used at Mangara. Morrison and the team use Farmax tools to help inform their decisions, CashManager make sure every dollar is where it should be and various other apps and online tools to help things tick along. These tools are helping to build a farming business Morrison hopes will deliver not only profit but a sustainable and environmentally-sound operation that won’t compromise future generations. As for Twitter, the posts have become a little less frequent in the past year or so. Industry governance and his recent marriage to farm consultant and Morrison farming director Erica van Reenen has seen him off the farm a couple of days a week. Van Reenen runs the Feilding office of Agfirst and has been influential in identifying areas of Mangara that are suitable for planting and wetlands. Morrison says sustainability is important economically, environmentally and socially. “That means having a healthy farm and healthy landscapes.

“It means having a business model that is positive and generating growth for future generations to be able to be successful. “And it means having people, family members and staff and all the service people that are involved in our farming business enjoying their involvement and being positive about the opportunities for the days, weeks and years to come.” As for the future, Morrison sees both challenges and opportunities for the sheep and beef sector. “I think the best strategy to combat future issues is just to continue to improve your farming system in a way that is open and transparent, which just means being really honest with the people around you and with the markets and actually working hard to have good-quality science that validates what it is you’re doing. “And then share that with everyone around the world and use things such as social media and be able to say ‘Hey, this is the real story’.”

>> Watch the video: bit.ly/OFSMorrison

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – July 9, 2018

New Zealand’s leading rural real estate company

FINAL NOTICE

Coastal Trophy Cattle Country

Te Akau

165 Rothery Road This 790ha (approx) property presents an opportunity that rarely comes along! Currently a beef finishing farm subdivided into 130 paddocks with excellent infrastructure. The farm features four homes. Located just 60km from Hamilton and 40km to Raglan. Strong cattle farm land and the recreational activities on offer are exciting too. I recommend viewing this property to really appreciate the unique opportunity on offer here.

TENDER (Unless Sold By Private Treaty) Closes 3.00pm, Friday 20 July PGGWRE 11 Vialou St, Hamitlon VIEW 11.00-1.00pm, Tuesday 10 & 17 July

Richard Thomson M 027 294 8625

pggwre.co.nz/HAM28362

richard.thomson@pggwrightson.co.nz

pggwre.co.nz

PGG Wrightson Real Estate Limited, licensed under REAA 2008

JUST LOOKING?

HUNTERS DELIGHT

TOP QUALITY

• Well laid out 185 acre dairy farm situated in the heart of Manawatu. • Lovely art deco homestead with great views over the property. • Modern 18 aside herringbone dairy with in bale feed system. Very nice feed pad along with good calf and milking sheds. • Effluent and water systems have been upgraded and are consented for intensive agriculture. • In retirement mode for the last few seasons our Vendors currently milk up to 160 cows and carry all replacements on farm. • Priced to sell at $2,200,000 plus GST. Call Les to inspect.

• Opportunity for the part time hunter gatherer to shoot deer on your own door step, just outside Pahiatua and a short drive to Tui Brewery. • Featuring some pruned open pine forest for your investment along with native and regenerating bush. • Three bedroom home or hunting lodge on a flat terrace with great views overlooking the stream below and deer in the bush. • Good array of out buildings along with some holding paddocks near the woolshed. • Great for the adventure minded and future investment. Call Les.

• Situated in Konini, Pahiatua is this quality 74 hectare dairy farm with excellent soils. • Very nice four bedroom family home set in lovely grounds. • Current dairy infrastructure includes a modern herringbone dairy with a 300 cow yard. • Currently supplies Open Country, has produced up to 1220 kgs/ms/ ha consented for dairy farming. • Shedding includes machinery shed and calf rearing facilities. • Your opportunity to own this outstanding dairy farm. Call Les.

Sallan Realty

Google ‘Sallan Realty’ Your Farm Sales Specialist

THE DESTINATION FOR RURAL REAL ESTATE

Land is the biggest asset to any farming business - so it pays to stay up-to-date with the market.

Connect with the right audience at farmersweekly.co.nz/realestate

LES CAIN 0274 420 582

Licensed Agent REAA 2008

LK0000000©

Contributor to realestate.co.nz

WE WORK THE LAND AS HARD AS YOU DO Colliers International is an industry leading brand in the rural sector. As the only truly global rural real estate company, we offer a distinct competitive advantage. We work closely alongside our national and global colleagues and to widen the pool of qualified buyers and investors. But we’ll never lose sight of our roots. Our local experts are proven in the Rotorua market and will work to find the right property solution for you. From farmgate to boardroom, we understand your business. Contact the team today on 07 346 0060 colliers.co.nz

COLLIERS RURAL AND AGRIBUSINESS SELLING FARMS • HORTICULTURE • VITICULTURE • LIFESTYLE CRHB Limited, Licensed under the REAA 2008

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – July 9, 2018

Connections

NICKY REID Results with integrity

Real Estate

Boundary lines are approximate only

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ϮϮϳ dĂƉƵ ƵƐŚ ZŽĂĚ͕ dŽŵĂƌĂƚĂ

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Ăůů ŵĞ ŶŽǁ ƚŽ ƌĞĐĞŝǀĞ Ă ĐŽŵƉƌĞŚĞŶƐŝǀĞ ƉƌŽƉĞƌƚǇ ďƌŽĐŚƵƌĞ͘

RURAL rural@pb.co.nz Office 0800 FOR LAND

Property Brokers Limited Licensed under the Real Estate Agents Act 2008

Often sought, seldom found

WEB ID MOR01961

TAUPIRI 281 Tenfoot Road Located approximately 20km north east of Hamilton, this flat, fertile 158 ha property is in 4 titles. The well appointed 41 ASHB is equipped with a meal feeding system and Protrac drafting. Excellent water and racing, recently installed Kliptank, production to 196,000 kg/ms from 480 cows calved. The 3 dwellings include a 2 storey, four bedroom main home with inground pool, a managers home with four bedrooms and sleepout and a

BY NEGOTIATION + GST (IF ANY)

three bedroom home with sleepout. Having farmed this VIEW By Appointment property for over 20 years, my retiring Vendors have made a decision to sell. Seldom do farms of this scale, in such a sought after location come to the market. Contact the sole agent today to avoid disappointment.

www.propertybrokers.co.nz

4 Peter Lissington

Mobile 027 430 8770 peterl@pb.co.nz

Employment

FARMERS WEEKLY – July 9, 2018

classifieds@nzx.com – 0800 85 25 80

Shepherd

FIDC Director of Wool Innovation – Falkland Islands

You’ll be responsible for developing client relationships in the Manawatu/Wanganui/Rangitikei region and continuing to build a strong client base with regular travel within the area. The Company: CR Grace Ltd has been a leading livestock procurement business for over 30 years, specialising in stock buying, transport and logistics for Taylor Preston Ltd a thriving quality meat processing and export company, situated in Wellington. Both CR Grace Ltd and Taylor Preston Ltd are renowned for their service, delivery and integrity. They have built their reputations on looking after their farming clients.

Take a leading role in the development of the Falkland Island’s vibrant wool industry. Working with the new Wool Innovation Group, the Director of Wool Innovation will be a skilled and motivated individual with international credibility.

The Position: The company’s principal, Christopher Grace, is seeking a full-time Livestock Agent to play a vital role within his team, with key strengths in reliability, respectfulness and honesty and with a focus on providing top customer service. He is looking for an individual with a keen interest in the agricultural sector, with good practical skills, excellent oral and written communication skills and a friendly down to earth manner.

Initially on a two-year contract, the director will shape innovation through strategic and creative thinking – adding value and a

Shepherd General

lasting legacy programme including: • Securing international recognition for revised standards in

Trigham Station is a family owned and operated 1600 hectare hill country Sheep and Beef breeding property. We are located 30 minutes west of Napier situated in the Patoka area. We are seeking applicants for a Shepherd General position becoming available. The right candidate must be: • Mature • Honest • Reliable • Motivated Have: • Excellent communication skills • Possess a full range of farming skills • 3-4 good dogs • Commitment to Health and Safety • Current and full NZ driver’s licence Excellent family home with mature gardens provided Please contact Gary or Gaylene Peddle 06-839 5878 • Gary 027 485 2301 Or email your CV to trighamstation@gmail.com

preparation, classing and description of our wool, via a Quality Falklands Wool (QFW) scheme

• Advising on and encouraging benchmarking activity

• A high-level communicator and decision maker with credibility across the industry

with a minimum of seven-years experience in high-level wool

LK0093355©

advisory, marketing and project management and they should have a well-developed professional network in primary and

• Be self-directed and flexible in order to meet the changing demands of the role

secondary sectors.

Why should you apply: If you are looking to further your already promising career in Agri-business, enjoy communicating and visiting clients, then this may be the role for you. Remuneration package is structured with a highly competitive salary plus add-on commission income opportunities. Car, smartphone and laptop will be provided. Flexible working hours.

This is a full time position starting with a two-year contract offering a generous salary package including flights, relocation grant and an end of contract bonus of up to 25%. Sue Faria on sfaria@fidc.co.fk Closing date for applications is 31st July 2018 Candidates should make themselves available for an interview

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For a full job description and application details, please contact

during the week commencing 6th August 2018, should they be

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A full, current and clean New Zealand driver’s licence is essential. Applications to office@crgrace.co.nz or if you would like to discuss this role further, please contact Greg Parkes, Livestock Manager on 021 276 9772.

shortlisted for this position.

Applications close on Friday, 3rd August 2018.

Classifieds ANIMAL HANDLING CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com FLY OR LICE problem? Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

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

ANIMAL SUPPLEMENTS

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

• Excellent organisational skills are a necessity

Candidates will have significant wool industry knowledge ideally

Company: Annandale Trust Location: Banks Peninsula Type: Full-time, permanent Annandale is a 14,000 stock unit sheep and beef property on Banks Peninsula. Due to the expansion of the property we are looking to add a full-time fencer general to our team. Duties would be: • New and maintenance fencing as well as yard building • Stock water supply maintenance and extension • Tractor driving skills are an essential part of the position i.e. ground work, drilling, mowing, baling and post driving • Ability to work efficiently unsupervised and as part of a team • Accommodation is a 3-bedroom brick home with heat pump and log fire • School bus stop is 8km away and services both primary and secondary schools. Remuneration package is subject to experience. For further information regarding the role, please contact Farm Manager, Andrew Humm on 027 304 6882 Please apply with CV and a covering letter before 20 July 2018 to jahumm@xtra.co.nz

Advertise your vacancy in Farmers Weekly Plus receive added value of online free of charge*

• Extensive experience in livestock procurement either as a Stock Agent or a Fat Stock Buyer

index

Fencer General

RUN OFF YOUR FEET?

Critical to the role are the following attributes:

• Developing a market reporting portal and appropriate price

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We require a shepherd on our 1300ha, 16,000su beef, sheep and deer farm. The farm is in three blocks, located 17km north west of Taihape. The farm is intensive, and is a great learning ground for someone wishing to upskill in grass management and optimising production. Enterprises include a breeding hind herd, venison finishing, high performance ewe flock, hogget lambing, beef cow herd, and beef finishing. You must be enthusiastic, hardworking, honest and reliable. You must also have a positive attitude and an excellent work ethic, with a good sense of humour. 2/3 capable dogs would also be necessary. Generous remuneration package including a three bedroom cottage, electricity, phone and internet included. School bus at gate. Contact Miles and Ruth Abernethy Abernethy863@xtra.co.nz • Ph 06 388 7863 We will require two verbal referees.

APPLE CIDER VINEGAR, GARLIC & HONEY. 200L - $450 or 1000L - $2000 excl. with FREE DELIVERY from Black Type Minerals Ltd www.blacktypeminerals. co.nz

ATTENTION FARMERS www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 07 571 0336 brianmace@xtra.co.nz

BUSINESS FOR SALE

DOGS WANTED

WINDMILL WATER PUMP manufacturing business for sale. Contact: ross@ windmills.co.nz

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

DOGS FOR SALE

FARM MAPPING

12-MONTH HEADING dog and bitch. Fast, firm, flank commands. A trial potential. Nolan Timmins 06 862 7543.

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

2 YOUNG HUNTAWAYS ready to start. 1 young heading dog ready. Phone 06 388 8212 or 027 243 8541. 8-MONTH-OLD b&w Heading dog. 6-YEAR-OLD Huntaway. Phone 07 877 7716.

DOLOMITE, NZ’s finest Magnesium fertiliser. Bio-Gro certified, bulk or bagged. 0800 436 566.

WEANED HUNTAWAY pups, well bred. Phone 06 863 9815. NO AUCTION CAN COMPETE WITH ME! 4080 dogs available 365 days a year $1000-$2500. View online working sheep/cattle. Deliver South/North Islands 30 day trial, guaranteed, trade in wanted, buy back dogs we sell. www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

DOGS WANTED QUICK EASY SALE! Buying 350 dogs annually South & North Islands. No trial or breeding required. No one buys or pays more! 07 315 5553 mikehughesworkingdogs@ farmside.co.nz

FERTILISER

FARM SERVICES/ SUPPLIES TARPAULINS PVC TARPS. All sizes. Top quality Ripstop PVC.NZ Made. Phone for quote Westlorne Ohakune 06 385 8487. Free delivery North Island. BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80 to book in or email classifieds@globalhq. co.nz

FOR SALE DOG/PET FOOD. Lamb/ Beef and chicken products. All natural - raw - no preservatives or additives. NOSLOC PRODUCTS. Ex-freezer Te Kuiti. For information and prices www.nosloc.com or phone 07 878 6868.

GOATS WANTED

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

GRAZING WANTED WANTED WEANER DAIRY grazers. For M-Bovis free block of new grass at Awhitu Peninsula, looking for approx 70 head. Phone Karl 09 292 5835.

HORTICULTURE

MANUKA SITES WANTED CENTRAL NORTH ISLAND. Whanganui, Taranaki, Wairarapa. Excellent site rental paid on quality honey. Contact 027 372 0842. Email: zerbywerby@gmail.com

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

WEED SPRAYING BOOM SPRAY. Broad acre, brush weed control, total vegetation. Hilux gun and hose units x 2 and mist blowers for gorse, broome, blackberry control. Covering Lower North Island. Phone 06 375 8660 or 021 396 447, email kingbilly718@ gmail.com

FOR SALE

SELLING

SOMETHING?

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 6116 or info@nzkelp.co.nz

Have something to sell? Advertise in Farmers Weekly

HERITAGE APPLE TREES. Farm pack specials. www.tastytrees. co.nz – Phone 09 408 5443 or text 027 346 7645.

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

Classifieds

Rural Ladies Searching For Love!

PURCHASING FERAL DEER

WINTER GRAZING

Whether you are in town or on the land, we can help you ﬁnd that special Lady to enjoy your life with. Call for a FREE compatibility match to start meeting genuine singles in your area seeking companionship & love today. Seniors Welcome.

(from private blocks)

Please call 0800 446 332

McNicholas Aviation Limited is a helicopter deer recovery operator based in Opotiki. The aerial operation can selectively cull your feral deer population and pay a royalty. If required we can also seek and destroy any resident feral goat population.

WANTED in central/ lower North Island for lambs, 1 to 2-year-old cattle or cows. Mark Grace 021 222 8470 mark@rathmoy.co.nz

The feral deer population has increased to levels seen in the 1950’s resulting in reduced winter feed for farmer’s stock, and damage to juvenile trees for forest owners. Contact Lance McNicholas 027 294 7504

FARMERS WEEKLY – July 9, 2018

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classifieds@nzx.com – 0800 85 25 80

www.countrycompanionship.co.nz

EARMARKERS

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T HI NK P R E B U I L T

BIRDSCARER DE HORNER HOOF TRIMMER

NEW HOMES SOLID – PRACTICAL

EQUITY OPPORTUNITY

WELL INSULATED – AFFORDABLE

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

• Approximately 7000 stock units • Sheep, beef & deer • South Canterbury region

• • • •

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

100% New Zealand Made Quality Stockfeeders

0 $ 85 +GST

OVAL FEEDER (S2 Pinned) • • • • •

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

MOA MASTER

$ 120+G0 ST

TOWABLE FLAIL MOWER $3910 + GST

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

FOR SALE CLASSIFIEDS ADVERTISING

Combi Clamp Sheep Handler

The most versatile Sheep Handler on the market • No power • No air • No breakdowns • Hands free operation • Good flow • Complete control • Portable • Weigh, dag, draft, feet, vaccinate – all in one pass!

• Do you need new farm tracks or upgrade existing ones? • Or have you metal that could be used for crushing? We do: • On site metal crushing • Metal supply and cartage • Upgrade existing tracks and drainage • Retaining wall construction • River protection and stream maintenance • All types of earthworks and metal contracting

TOWABLE TOPPING MOWER $3570 + GST

Do you have something to sell?

“WOOD SPLITTER” 50 TON

12 HP DIESEL MOTOR “ELECTRIC START”

Tim McColl Contracting Ltd Tim McColl, Owner / Operator

$3990 + GST

The Combi Clamp …

Known for good sheep flow, has been tested and proven to be the fastest and most popular Sheep Handler sold in Australia, replacing many Automated Sheep Handler units on properties throughout Australia and New Zealand.

FARMERS

Quality you can rely on – GUARANTEED

0800 104 404 | www.stockfeeders.co.nz

Ltd

To find out more visit

Call Debbie

0800 85 25 80 classifieds@globalhq.co.nz

All types of earthwoks and metal contacting

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

FOR SALE

Cattle Handling Equipment

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

SCOTTY’S CONTRACTORS

SELLING

Now working Gisborne and Wairoa areas

SOMETHING?

LK0093290©

FROM THIS

To date over 600 woolsheds. Big or small – give us a call.

Reliable Strong, ffi cient E and

Kiwitea, Feilding

Mobile: 027 446 3383 | A/hrs: 06 328 9851 Email: timmccollcontractingld@xtra.co.nz

www.moamaster.co.nz

Standard Crush, Vet Crush, Weight Crate, Auto Head Yoke, Sliding Gates • Heavy Duty • Hot dipped galvanized • Efficient • One-man operation • Sure catch – never miss • Self-catching with auto reset • No weight limit • Easily adjustable width • Built to last • Full range of options available

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

Have something to sell? Advertise in Farmers Weekly

TO THAT

www.combiclamp.co.nz

Videos on website – On-farm demonstrations available SI Stuart 027 435 3062

Phone Scott Newman Freephone 0800 2SCOTTY (0800 27 26 88) Mobile 027 26 26 27 2 New Zealand’s Number 1 service provider for under woolshed cleaning for more than a decade

LK0091995©

We haven’t been beaten yet!

0800 227 228

LK0092882©

STANDARD FEEDER (C6 Pinned)

Phone: Michael Richardson 027 228 7027 Email: michael@propertybrokers.co.nz

LK0093237©

LK0093267©

• Good housing & infrastructure

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

Livestock

THE NEW ZEALAND FARMERS WEEKLY – July 9, 2018

livestock@nzx.com – 0800 85 25 80

STOCK REQUIRED 2 TOOTH EWES SIL

(Terminal Ram Late March) Phone Guy Strang – 021 472 958

M/AGE ANGUS COWS Due Sep/Oct

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

Phone John Stephens - 0279 392 369

STORE LAMBS 28-35kgs R2 & R3 STEERS 480kgs +

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

Aaron Clapperton 027 496 7410 Richard Seavill 021 169 8276 / 07 825 4984 Chris Smith 027 496 7413 / 06 756 8968 Chris Kyle 027 496 7412 / 07 883 7412 Bryce Young 027 496 7411

SALE TALK

All Ewes SIL to Suffolk Rams Due from 10th August onwards

For further details contact: Ben Lill Ph 027 462 0130

Office 07 823 4559 BYLLIVESTOCK.CO.NZ byllivestock

Breeding the difference

35TH ANNUAL ELITE HIND & WEANER SALE WEDNESDAY 1ST AUGUST 2018 @ 1PM OFFERING TO INCLUDE MATINGS TO AND PROGENY OF:

Your source for PGG Wrightson livestock and farming listings CANE 641 IOA 15.5kg HA @ 3yrs

FITZROY 691 IOA 23.28kg HA 44 pts @ 6yrs

ORLANDO 713 IOA HA 22.3kg 44 pts @ 5yrs

Also featuring: MCCAW (692 IOA), GREGOR (684 IOA), ADIDAS (640 IOA @ 5yrs), HUNTER (802 IOA @ 5yrs),

FOR SALE

Wednesday 11th July,

53 Frsn/Frsn X R1 Heifers BW106, PW126

A/C Central Dairies

MALSON (630 IOA @ 4yrs), RIGBY (706 IOA @ 4yrs)

120 Frsn/Frsn X Jsy Inmilk Cows

Catalogues will be posted out in July ALL ENQUIRIES: Barry Gard 021 222 8964, a/h 03 431 2803 bgard@foverandeerpark.co.nz | foverandeerpark.co.nz

DAIRY COWS & HEIFERS FOR SALE

Nice line of calves, hard to come by. Well worth inspection

BW106, RW160, RA91%

$775 ONO AgOnline Ref 01-000717

Autumn calved inmilk cows, production 2.36 m/s per cow avg

30 Frsn R1 Heifers BW 87, PW87

SCC 204 (tested 26/4/18) with top cow 4.43 m/s per cow.

Heifers in good order, get in quick before they’re sold. Worth inspection.

BW’s up to 199, PW’s to 343, LW to 778

$750 ONO AgOnline Ref 01-000718

Mated back to Autumn calving, RWB Hereford bull from 5/7/18.

Matt Hughes 0274 052824

Young herd 86 cows 4yr & 5yr. Outstanding herd for udder and dairy type.

• Q 1173 – small herd of 86 Fsn cows, BW 59, PW 82, R/a 82%, 360ms/cow, 15/7 calving, long established herd, grade free for years, very good cows, $1920. Stewart 027 270 5288

TB C1O, BVD Neg, EBL Free, H/Bone Shed, Mycoplasma bulk milk not detected (27/3/18). Catalogues available.

• Q1172 – 32 XB in-calf hfrs, BW 79, PW 78, CRL, 01/08 calv, well grown, $1400. Monty 027 807 0522 • Q 1170 – 38 XB in-calf hfrs, BW 94, PW 107, well grown from a top herd, calv 02/08, $1300. Bunter 027 444 1169 • Q 1168 – 144 Fsn/FsnX herd, BW 77, PW 102, heavily culled herd, 400ms/cow, 20/07 calv, good young cows, $1820. Colin 027 646 8908

Secure your bull team with no upfront cost

Jason Roberts 0272 431 429 Dean Evans 0272 431 092 LK0092982©

• 400 cow Fsn/FsnX herd on market next week, HB shed, established herd, index to follow 420ms/cow, 20/07 calv, will sell smaller number on equal split, cows will shift, price and index not available before advert. Enquiries to Matt 027 601 3787 0800 548 339 | nzfarmsource.co.nz/livestock

AUTUMN CALVED INMILK SALE

11.30am Start

KALLIS (575 IOA 28kg HA), APEX (708 IOA @ 5yrs),

The first old guy says, “Really! Like a newborn baby?” The second old guy says, “Yeah – no hair, no teeth, and I think I just wet my pants.”

Hilvue Farming Partnership Sandy Knolls 20th July 2018 at 1pm • 262 2 Shear Romney Ewes – SIL 180% • 555 Mixed Age Romney Ewes – SIL 172% • 110 Annual Draft Corriedale Ewes – SIL 161%

R1 Angus steers – RS R1 Angus/Friesian heifers – RS

Ross Dyer 0274 333 381

ON FARM BREEDING EWE SALE

LK0092208©

To advertise

The second old guy replies, “You know, I feel just like a newborn baby.”

Autumn born weaners, Friesian bulls, Whiteface bulls, heifers, steers – RS R1 Hereford/Friesian steers 200kg – 300kg – RS R1 Friesian bulls 200kg – RS R1 & R2 Hereford/Friesian heifers – RS

STOCK WANTED www.dyerlivestock.co.nz

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

These two old guys from a retirement home were sitting on a bench under a tree when one turns to the other and says: “You know, I’m 85 years old now and I’m just full of aches and pains all the time. I feel like I’m falling apart.. I know you’re about my age. How do you feel?”

STOCK FOR SALE

Upcoming Bull Sales Please see below correct dates for two upcoming bull sales:

EARN FARM SOURCE REWARD DOLLARS ON ALL FARM SOURCE LIVESTOCK PURCHASES & SALES* T&Cs apply. See nzfarmsource.co.nz/rewards

Argyle Angus, 12pm 30th July – Kaikohe and Arahou Hereford, 1pm 31st July – Tangiteroria

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

Helping grow the country

Bobby Calf Processing Made Easy • Ethical • Same day processing • Local For further information please contact Alliance Group directly on 0800 100 144 or talk to your Alliance Group livestock representative

www.alliance.co.nz

LK0093354©

LIVESTOCK ADVERTISING

MARKET SNAPSHOT Grain & Feed

FONTERRA 2018-19

AGRIHQ 2018-19

7.00

6.60

AS OF 24/05/2018

AS OF 05/07/2018

MILK PRICE COMPARISON

$/kgMS

Last week

Prior week

Last year

Canterbury (NZ$/t)

6.0 5.5 Jan 18

Mar 18 AgriHQ Spot Fonterra forecast

May 18 Jul 18 AgriHQ Seasonal

What are the AgriHQ Milk Prices? The AgriHQ Seasonal milk price is calculated using GDT results and NZX Dairy Futures to give a full season price. The AgriHQ Spot milk price is an indicative price based solely on the prices from the most recent GDT event. To try this using your own figures go to www.agrihq.co.nz/toolbox

WMP GDT PRICES AND NZX FUTURES

335

NI mutton (20kg)

5.10

4.10

391

331

SI lamb (17kg)

7.75

7.65

6.55

Feed Barley

393

389

339

SI mutton (20kg)

5.25

5.15

4.15

222

Export markets (NZ$/kg) 8.69

8.63

8.20

283

UK CKT lamb leg

Maize Grain

424

421

410

PKE

281

221

* Domestic grain prices are grower bids delivered to the nearest store or mill. PKE and fertiliser prices are ex-store. Australian prices are landed in Auckland.

INTERNATIONAL

Nearby contract

Prior week

7.5 7.0 6.5 5.5

Last year

5.0

CBOT futures (NZ$/t) Wheat - Nearest

276

219

Corn - Nearest

211

221

204

444

437

ASW Wheat

458

448

367

Feed Wheat

327

322

255

Feed Barley

401

394

311

112

113

Ex-Malaysia

4.5

South Island 1 7kg lamb

8.0 7.5

373

PKE (US$/t)

NZX DAIRY FUTURES (US$/T)

North Island 17kg lamb

8.0

6.0 Last week

APW Wheat

Jun 18 Sep 18 NZX WMP Futures

6.65

403

3500

2000 Sep 17 Dec 17 Mar 18 C2 Fonterra WMP

7.80

394

Australia (NZ$/t)

2500

NZ venison 60kg stag

7.0

600

6.5

500

6.0

4005.5

3005.0 Oct 4.5

Oct

Dec

Prior week

vs 4 weeks ago

WMP

2930

3150

3195

SMP

1945

1990

AMF

6000

Butter

5400

Dec

5‐yr ave

Last week

Prior week

Last year

Aug

This yr

Last week

Prior week

Last year

2145

Urea

483

507

3.41

3.75

6050

6270

Super

302

317

Nth Isl 37m

3.60

3.80

5375

5500

DAP

739

Sth Isl 35m

4.55

3.90

750

Oct

Latest price

Nov

Dec

Jan

Sharemarket Briefing IT WAS a mixed week for global markets as trade tensions continued to weigh on investor sentiment. The NXZ 50 reached a record high on Tuesday but fell later in the week, following global peers, ahead of President Donald Trump triggering US$34 billion worth of tariffs on Chinese goods. China said it will absolutely not fire the first shot in the trade war and will not be the first to levy tariffs. The trade spat between the world’s largest economies has been in the spotlight for about three months and has riled global markets. The European Union is reportedly considering holding international talks to cut a deal on car tariffs. The EU imposes a 10% tariff on imports of passenger cars, compared to the 2.5% duty imposed by the US. Trump called that unfair and has threatened to impose a 20% tariff on all cars from the EU. Investors in the region breathed a sigh of relief after German Chancellor Angela Merkel reached a deal on migration. The euro area unemployment rate held steady at its lowest level since 2008. It was unchanged at 8.4% in May; the expected rate was 8.5%. Market commentary provided by Craigs Investment Partners

S&P/NZX 50 INDEX

9063

S&P/NZX 10 INDEX

8818

$/kg

350 250 150 Jul 14

Jul 15

Jul 16

Jul 17

Feed barley

4 weeks ago

NZ venison 60kg stag

4.5

600

c/k kg (net)

3000

Coarse xbred wool indicator

5.5

CANTERBURY FEED PRICES

NZ$/t

US$/t

Jun

Coarse xbred ind.

450

16921

Apr

Last yr

Aug

(NZ$/kg)

3200

S&P/FW PRIMARY SECTOR EQUITY

Feb

Jun

NZ average (NZ$/t)

WMP FUTURES - VS FOUR WEEKS AGO

Sep

Apr

WOOL

* price as at close of business on Thursday

Aug

Feb

FERTILISER

Last price*

2800

Last year

7.85

402

4000

3000

Last week Prior week

NI lamb (17kg)

Feed Wheat

Waikato (NZ$/t)

6.5

Slaughter price (NZ$/kg)

Milling Wheat

PKE

7.0

US$/t

SHEEP MEAT

DOMESTIC

$/kg

MILK PRICE FORECAST ($/KGMS) 2018-19

Sheep

$/kg

Dairy

c/kkg (net)

3.5

400 300

2.5

Oct Jul

Dec

Sep

5‐yr ave

PKE spot

Feb

Nov

Apr

Jan

Last yr

Jun

Mar

Aug

May

Jul

This yr

Dollar Watch

Top 10 by Market Cap Company

YTD High

YTD Low

Fisher & Paykel Healthcare Corporation Ltd

15.26

15.50

11.92

The a2 Milk Company Limited

11.55

14.62

7.66

Auckland International Airport Limited Meridian Energy Limited Spark New Zealand Limited Ryman Healthcare Limited Fletcher Building Limited Mercury NZ Limited (NS) Contact Energy Limited Air New Zealand Limited (NS)

6.93 3.17 3.87 11.98 6.85 3.35 5.95 3.18

6.99 3.19 3.89 12.25 7.96 3.45 5.96 3.43

6.11 2.75 3.28 10.27 5.74 3.08 5.15 2.86

Listed Agri Shares

500

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

11.550

14.620

7.660

Comvita Limited

5.970

9.210

5.600

Delegat Group Limited

8.800

8.900

7.510

Foley Family Wines Limited

1.480

1.610

1.400

Fonterra Shareholders' Fund (NS)

5.230

6.660

5.000

Livestock Improvement Corporation Ltd (NS) New Zealand King Salmon Investments Limited PGG Wrightson Limited

2.750

3.000

2.250

2.480

2.500

1.840

0.650

0.720

0.560

Sanford Limited (NS)

7.700

8.500

7.350

Scales Corporation Limited

4.800

5.000

4.350

Seeka Limited

6.650

7.010

5.800

Synlait Milk Limited (NS)

11.500

11.650

6.260 3.100

T&G Global Limited

3.150

3.300

Tegel Group Holdings Limited

1.160

1.240

0.810

S&P/NZX Primary Sector Equity

16921

17332

14417

S&P/NZX 50 Index

9063

8059

S&P/NZX 10 Index

8818

8831

7640

THE kiwi dollar stabilised This Prior Last NZD vs slightly late in the week week week year but further weakness USD 0.6794 0.6741 0.7275 is expected, ANZ Bank EUR 0.5811 0.5827 0.6399 senior economist Phil Borkin says. AUD 0.9192 0.9182 0.9557 New Zealand’s GBP 0.5141 0.5156 0.5621 economic growth is Correct as of 9am last Friday looking tired with low business confidence and interest rate yield comparisons are moving against the dollar. There’s been a solid fall, especially against the Unitaed States dollar in recent weeks and the rate of decline from here on is expected to be more modest, Borkin said. The market is dominated by short-trading positions in the kiwi, giving potential for a turnaround as profits are taken, but it is hard to get upbeat. Most of the adjustment is expected against the euro and Japanese yen. ANZ expects the euro to strengthen despite short-term pressure from political volatility in Italy and now Germany. Borkin said the bank’s base case is that NZ businesses will raise prices eventually to offset margin pressures, leading to a gradual rise in inflation which will lead to a rise in the Official Cash Rate. However, the RBNZ was dovish in its latest report and if conditions deteriorate significantly then a cut in the OCR could happen quite rapidly. ANZ forecasts are for the kiwi at year-end to be at US$0.67, A$0.93, €0.57, £0.49 and ¥69. The risk is that the kiwi could go lower, Borkin said, and for March next year forecasts include the kiwi at US$0.66, €0.54, and £0.47.

Alan Williams

Markets

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018

WAIKATO MAIZE GRAIN

NI SLAUGHTER LAMB

SI SLAUGHTER MUTTON

($/T)

($/KG)

R2 HEREFORD-FRIESIAN HEIFERS, 345-425KG, AT WELLSFORD

($/KG)

($/KG LW)

7.85

424

5.25

2.61

high lights

$2.74-$2.76/kg $161-$189 R3 Friesian bulls, 490-600kg, at Stortford Lodge

Very heavy prime mixed sex lambs at Feilding

Cattle & Deer BEEF Slaughter price (NZ$/kg)

Last week

Prior week

Last year

NI Steer (300kg)

5.40

5.70

NI Bull (300kg)

5.30

5.65

NI Cow (200kg)

4.35

4.55

SI Steer (300kg)

5.35

5.30

5.70

SI Bull (300kg)

5.15

5.05

5.25

SI Cow (200kg)

4.05

3.95

4.30

US imported 95CL bull

6.66

6.58

7.18

US domestic 90CL cow

7.10

7.03

6.99

Export markets (NZ$/kg)

North Island steer (300kg)

$/kg

6.0 5.5 5.0 4.5 4.0

South Island steer (300kg)

Breeding ewes just there

NZ venison 60kg stag

5.5

600

c/k kg (net)$/kg

ODD ONE OUT: A scene from the Frankton sale yards in 2014.

5.0

500 4.5 400

300 4.0

Oct Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr

Jun Jun

Aug Aug

Last yr

This yr

VENISON Slaughter price (NZ$/kg)

Last week Prior week

Last year

NI Stag (60kg)

10.80

9.10

NI Hind (50kg)

10.70

9.00

SI Stag (60kg)

11.15

11.10

9.10

SI Hind (50kg)

11.05

11.00

9.00

New Zealand venison (60kg Stag)

$/kg

11 10

NZ venison 60kg stag

c/k kg (net)

600 9 500 8

400 7

300

6 Oct

Oct

Dec Dec

Feb Feb

5‐yr ave

Apr Apr Last yr

Jun Jun

Aug Aug This yr

XPECTATIONS for in-lamb breeding ewes are only just being met, with the market underpinned by high processor values. Top quality Romney 2-tooths, scanned 165%, made $223 per head at Stortford Lodge last week, while a line of nearly 380 Romney mixed age were scanned triplets and fetched $182. NORTHLAND NORTHLAND There was a notable increase in demand for R2 cattle around the 400-450kg mark at WELLSFORD last Monday. Fatteners re-entered the market and both steers and heifers sold to increased demand. In the steer pens heavier AngusFriesian made a premium over lighter lines, but that was reversed for Hereford-Friesian. That balanced out at an average of $2.67/kg for an average weight of 430kg, and Hereford-Friesian, 397-428kg, and

heavier Angus-Friesian did manage to push to $2.70-$2.71/kg. One standout line of Devon-Hereford, 419kg, sold for $2.88/kg. Heifer pricing was very consistent and Hereford-Friesian, 346-424kg, made $2.54-$2.65/kg, to make up the lion’s share of the section. As expected given the time of year R1 numbers were low, and the main feature was two larger lines of Hereford-Friesian heifers, 164-179kg, $565-$595. A few small lines of steers reached $905$910, with most other lines of beefcross and Hereford-Friesian making $610-$700. AUCKLAND AUCKLAND The KAIKOHE sale last Wednesday had a bit more of a spark to it, as schedules improve on the back of limited numbers, and very few cattle came forward to auction also, PGG Wrightson agent Vaughan Vujcich reported.

It is expected throughput will be low for a number of weeks yet, and that should keep the competition in the marketplace. Good beef R2 steers improved to $2.70-$2.75/kg, while good dairy-beef mainly traded at $2.65/kg. Third cuts sold for $2.55-$2.60/kg. Heifers have been the biggest movers over the past few weeks and last Wednesday’s offering mainly sold for $2.50-$2.60/ kg. Friesian and Friesian-cross bulls fetched $2.40-$2.50/kg. R1 beef and exotic steer prices held, with most ranging from 230-250kg and coming in at $3.10-$3.20/kg. Values were similar for a nice line-up of Hereford and Angus-Hereford bulls, while this heifer market still needs to play catch up, with most dairy-beef and trading at $2.75-$2.85/kg. A small yarding of cows showed promise and better beef-cross earned

Continued page 38

29, 2017

NOVEMBER

EYE LIVESTOCK TTLE TARANAKI CA

WHAT’S HAPPENING AT YOUR SALEYARD?

2.47

2.96

2.86

2.73

Store cattle

not enough475n good but while Angus-Friesian, Localisededrai $2.82/kg, $2.74-$2.77/ off the pace at on a quiet note VIEWPOINT

Suz Bremner

225 - 245KG

310KG

350 - 415KG

400 - 505KG

1-YEA R HEIFE BEEF/ DAIRY

1-YEA R STEER BEEF/ DAIRY

2-YEA R STEER BEEF/ DAIRY

tallies

Weaner 13

Steer Heifer

1-year 112

2-year+ 34 9

Total 159

2-YEAR STEER Dev x Ang/Fr Ang/Fr Ang/Jer Ang/Jer Here/Fr

Jer

1400

540 475 - 506 401 - 445 366

M/G M

546 492 377

2 R

2-YEAR HEIFE Ang/Fr

Here/Jer Fr & Fr x

M/G

Jer x

Ang/Fr Here/Fr

M/G

L/M

530 370 467 315 451 320

4.0

$/kg

$/hd 1140

452

Fr x

Weight

Cond.

Tally

1300 - 1400 1090 - 1200 940 1542 1220 600 1455 910 1285 800 1060 400

3.5

2.52

3.0

2.59

2.5

2.74 - 2.77 2.70 - 2.72

2.0 100kg

200kg

300kg Steers

500kg 400kg Heifers

2.82 2.48 1.59 2.75 2.46 2.75 2.54 2.35 1.25

ph 0800 85

info@agrihq.co.nz

600kg

2.57

SUBSCRIBE TODAY AT AGRIHQ.CO.NZ/FARMER

agriHQ.co.nz

Beef/Dairy

STORE CATT

Receive comprehensive liveweight-based results from the entire sale even when you can’t make it there yourself. Sign up to LivestockEye reports and keep your head in the game.

0800 85 25 80

3 Bull ed , were November finish apart from a doozy 506kg s-Jersey, 401-445kg, return 297 Cow 62 Angu sale, 169 upted the kg. -$2.77/kg. at the Taranaki 19 m that interr Total and two $2.74 of a thunderstor a mixed bunch cattle were Heifers were reached A total of 340 auctioning. cons isted beef-Friesian gh main ly small lines of other lines well below tallies Total penn ed, thou three over Prime cattle all Cow just with /kg 15kg, with Bull Heifer 40 of smal l lines localised $2.75 Ex-service Red bulls, 688-7 Steer 20 ite the odd /kg. 1 getting that. 10 head. Desp 19 ged $2.94-$3.00 and some areas hit and itions on mana had to be quite light to thunderstorm Lines yesterday, cond steer pens, up to 25mls drying out in the 1-year n tallies rties are still old effect pass $3.00/kg Hereford-Friesia Store cattle most prope ever-popular causing a two-f g to but the a few occasions. 1500 on fast, which is comin that cattle ge 10kg, quality did mana h were 308-3 them. of more mixed offered thoug buyers to greet at $2.92- 1200 sale and fewer sold over a very tight Mostsold on a steady market 900 sian, and er Angus-Frie Prime steers what was a /kg, with heavi s. -$2.88/kg on 600 is tight. $2.97 g similar value range of $2.83 as processor space/kg. 335-381kg, makin1-year heifers could 300 softer market $1.75-$1.82 20-Dec The best the 6/kg for 6-Dec -$2.5 0 Boner cows made pens included some $2.52 22-Nov This year age was 8-Nov this was Last year The 2-year steer albeit in very small man n, but again 5-yr ave riesia y, ord-F nice lines of qualit best of the bunch Heref tion of the quality. the reflec a and at , ers, 546kg numb ($/kg) ord-Friesian, steers and heifers was three Heref

25 80

grihq.co.nz

web agrihq.co.nz

email info@a

2398HQV2

6.0

Markets

38 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018 medium $90-$130. Lighter ewes $30-$80.

COUNTIES COUNTIES About 450 store cattle were presented at TUAKAU last Thursday, Chris Elliott of PGG Wrightson reported. The steer section included some nice Hereford-Friesian lines at 440-540kg, which traded at $2.62-$2.80/kg, selling up to $1275. Steers in the 350-440kg range made similar rates, and R1 Hereford-Friesian, 270-300kg, fetched $3.03-$3.07/kg, $850-$930. Lesser quality R1 sold down to $670. The weaner section featured some very good Charolais-Angus steers, with the top pen at 188kg making $870, and the lightest pen, 153kg, $765. Hereford-Friesian weaners, 153-183kg, returned $560-$650, and a line of beef-cross bulls, 230-360kg, $500-$785. A small entry of heifers in the 400-450kg range traded at $2.60/ kg, and R1 Hereford-Friesian, 200-300kg, made $2.60-$2.98/kg, $600-$750. Good Charolais-Angus weaner heifers, 169kg, earned $660, and a lighter pen at 127kg, $565. Hereford-Friesian weaners, 160kg, made $590. About 430 cattle were on offer at last Wednesday’s prime sale and the market was firm. Steer prices lifted by 5c/kg on the previous sale, with a good Angus lot, 720kg, making the top rate of $2.90/kg. Other heavy steers, 680-770kg, sold from $2.76/kg, and medium $2.65-$2.75/kg. Lighter and lesserbred steers earned $2.30-$2.60/ kg. Steady demand also led to a 5-10c/kg lift in heifer prices. Heavy prime heifers traded at $2.72-$2.84/kg, with good exotic taking top honours. Medium heifers made $2.64-$2.70/kg, and lighter types $2.45-$2.60/kg. Beef cows also sold well at $2.00-$2.68/ kg, with the top rate paid for a lone 735kg Angus cow. The best of the Friesian cows fetched $1.85$2.30/kg, although demand was a bit softer for medium-weight cows, which earned $1.60-$1.85/ kg. Lighter boners returned $1.20$1.55/kg. Around 1350 ewes and lambs were yarded at last Monday’s sheep sale and prices remained strong. Heavy prime lambs traded at $140-$180, with light-medium earning $120-$140, and stores $80-$120. The best of the prime ewes fetched $130-$160, and

WAIKATO Buyers at FRANKTON enjoyed a yarding that more than doubled in size on the previous week. Throughput was up for all store cattle, but particularly heifer numbers increased significantly. The majority of the yarding was sold in lots that did not reach double figures which stretched out the day. A big feature was an annual draft line of quality Angus steers, 495kg, which were well sought after and earned $3.15/kg, which was off the pace of last year’s $3.40/kg for a similar weight. Angus-Friesian, 386-477kg, sold well at $2.58-$2.71/kg, with Hereford-Friesian, 381-539kg, trading at similar levels as they lifted to $2.66-$2.74/kg. The majority of the R2 heifers traded at very similar levels as Angus-cross, 340-434kg, returned $2.52-$2.71/ kg, Hereford cross, 348-475kg, $2.57-$2.73/kg, and HerefordFriesian, 356-465kg, $2.59-$2.70/ kg. The market was steady in the R1 pens, where the majority of steers were of beef origin and 148238kg lines traded at $400-$700. Three Charolais-cross, 271kg, fetched $780. Heifers were solid and an annual line of Hereford, 245-273kg featured, earning $730$805. Hereford-cross, 173-212kg, fetched $460-$590, and HerefordFriesian, 170-239kg, $560-$680. A quality consignment of Hereford bulls, originated from the same vendor as the earlier heifers and outclassed them, with the top line making $1080, $3.60/kg, and 222-300kg, $700-$900. Friesian bulls, 227-278kg, were solid at $580-$730. Autumn-born R1 throughput increased but this did not diminish the market. In the heifer pens anything with Hereford blood, 97-167kg, traded at $390$472. The majority of beef-cross bulls, 103-145kg, returned $420$530, whilst Hereford-Friesian lines, 105-113kg, were well received at $500-$572. There was little difference between vetted-in-calf R2 heifers and run-with-bull lines, with all 418-430kg and trading at $990$1100. The market was steady for the limited number of prime cattle

available, six Angus steers, 595kg, managed solid returns at $2.89/ kg, and beef-cross, 550-880kg, maintained levels of $2.71-$2.77/ kg. Hereford-Friesian heifers, 476-498kg, lifted to $2.67/kg, with Friesian boner cows, 458-522kg, steady at $1.78-$1.89/kg. BAY OF PLENTY BAY OF PLENTY There was plenty of talking points at RANGIURU last Tuesday, despite a typically small winter sale. Two lines of good quality R1 Hereford-Friesian steers caught the eye of a couple of buyers and they did not back down. The heavier line of eight, 183kg, reached $915, $5.00/kg, and the second eight, 175kg, sold up to $795, $4.54/kg. Motiti Island again featured in the form of very heavy HerefordFriesian bullocks in the prime pens. These made a premium on other cattle as 674-748kg sold for $2.85-$2.88/kg. A further line of 10 were too heavy at 791kg and only managed $2.65/kg, but that still gave them a $2100 price tag. All other steers traded at $2.71$2.73/kg. Two small lines of prime heifers made $2.72/kg, and eight Hereford-Friesian cows, 487kg, sold well at $1.89/kg. Demand was very solid across all lines of quality store cattle, which made for a short and sweet sale. All R3 steers were HerefordFriesian and at 477-546kg sold for $2.77-$2.81/kg. Quality was mixed in the R2 steer pens with most 415-457kg Hereford-cross which returned $2.63-$2.73/kg. The R2 heifer section had the numbers and increased demand lifted prices. All Hereford-Friesian weighed 390-465kg and averaged $2.61/kg, with a premium paid for the heavier lines. Hereford, 306kg, sold for $2.76/kg, while Angus, 342kg, lacked quality and made $2.34/kg. R1 Friesian bulls also showed improvement, with 176-193kg earning $580-$630. The one section to be tougher going was the autumn-born weaner’s, and heifers could be picked up for $370-$455, and beefcross bulls, $405-$490. A slightly smaller sheep sale still had plenty going for it and a number of lines of prime lambs exceeded $150. Featuring in the store lamb pens was a line of 114 which sold for $116.50, while shorn, in-lamb ewes in lighter condition made $108.

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$1.90-$2.00/kg, while Friesian lines were also solid at $1.80/kg.

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TARANAKI TARANAKI While there was little to report on from a small cattle sale at TARANAKI last Wednesday, the market movements were favorable for the upcoming fair. R2 price ranges were tight, with steers all beef-Friesian, 377-492kg, and trading at $2.68-$2.77/kg. Heifers sold at a 6-8c/kg discount to that with all ranging from $2.60$2.71/kg. R1 numbers were low, with only the steers exceeding 20 head. Good breeding equated to good prices and Charolais-cross, 237kg, made $880 and Hereford-Friesian, 211kg, fetched $810, while all other lines made $525-$590. Just two lines of heifers were

offered and Hereford-Friesian, 154kg, returned $545. Two lines of autumn-born Hereford-cross bulls, 100-101kg sold for $300$380, while a lone line of heifers, 99kg, also made $300. POVERTY BAY POVERTY BAY It was a drawn out day at MATAWHERO, where just under 3000 store went under the hammer, mainly split across various small pens. The numbers attracted enough buyers to give the sale a bit of a kick after the softer sale the previous week. Heavy male lambs were bought at $141-$153, down to $130-$136 for good types. Those a cut below the good male lambs were $121$127, and some other medium lambs rounded out these types at $90.50-$116. Buyers were more selective across the ewe lambs, especially the lighter half. One heavy pen made $144, while other good lines were $119-$131. Medium types where anywhere in the $100.50$125 range, while anything lesser quality pens were mainly $90$95.50. A few lines of mixed sex lambs sold to the same level as the ewe lambs. Two nice pens of 5-6 year Romdale ewes sold quite well. A smaller pen of scanned twins were $191, while the other line, scanned singles, made $170. The highlight of the prime offerings was a pen of very heavy male lambs which sold at $200. Other very heavy lambs were $171-$180, while the remainder were $120-$153. The better prime ewes were $121-$144. HAWKE’S BAY HAWKE’S BAY A run of wet weather followed by hard frosts meant a busy start to July at STORTFORD LODGE, as both sales lifted in volume and prime sheep numbers were not far behind stores. On Monday the $200 mark was exceeded in all sections bar ewe lambs as the top males and mixed sex made $175-$214 with a line of 20 ram lambs taking top honors. From there prices for male lambs were mainly steady, and buyers were hard pressed to get any under $140, with most trading at $165-$190. A line of 314 mixed sex lifted to $160.50 while two lines of wethers returned $145.50-$149.50. Ewe lambs sold up to $192 with most $147-$164. Top mixed age ewes were a two-way game with one run of very heavy types up $6 to $174$176.50 while another of the same condition eased $6 to $161.50. Heavy types were steady to lifting at $145-$157 and good to very good solid at $127-$142. Lightmedium to medium lifted to $107$124, and the tail end managed $58-$100. A bigger yarding of quality prime cattle sold freely. Nice Angus steers, 546-602kg, lifted to $3-$3.01/kg with a smaller line of Angus and Angus-Hereford, 596kg, at $2.93/kg. Good quality beefbred cows were strong as 493705kg Angus lifted to $2-$2.18/ kg and all other lines 542-717kg made $2.12-$2.20/kg. Buyers were spoilt with an excellent quality line-up of both breeding ewes and lambs last Wednesday. Some passed $200. A line of well-bred Romney 2-tooths, scanned 165% to a Sufftex ram on

March 29 sold for $223. All other lines, from 4-year and 6-year, had been to terminal sires between March 2 and 15. A standout line of 376 5-6 year ewes from Wairoa, all scanned triplets, sold for $182. Most other lines made $180-$181 though a line of 5-year, 177%, reached $202. From the first pen to the last there was a significant improvement in the quality of the lambs with $162 and $163 achieved for both cryptorchid and males. The remainder of the cryptorchid lambs were good shopping at $127-$136 for good to heavy and similar weighted males made $118-$136. Heavy ram lambs sold for $129-$145. Very heavy ewe lambs made $151-$160. Most were good types at $123$134 while medium types firmed to $119-$129. Store cattle throughput was unseasonably high because of the weather. A feature was a big run of R3 and R2 Friesian bulls. A Manawatu buyer took all the R3 lines. At 492-599kg they sold over at $2.74-$2.76/kg. Ranges were equally tight for the lighter R2 bulls as 390-405kg at $2.70-$2.77/ kg. A line of 552kg Angus steers fetched $2.95/kg and a special entry of R2 Angus, 435-461kg, headed to Manawatu for $2.99-$3/ kg. Angus-Hereford, 479-520kg returned $2.82-$2.87/kg. Angus also featured in the R2 heifer pens and though the three lines had a wide variance in weight from 353kg to 542kg they all sold for $2.61-$2.72/kg. Angus & AngusHereford, 414-448kg, returned $2.56-$2.59/kg. R1 numbers were low and local buyers dominated. Angus steers, 251kg, sold for $880, while the same number of heifers, 224kg, made $740. Simmental-cross heifers had more weight than the boys at 292kg and topped the section at $940. A small entry of VIC cows held the interest of a northern buyer and the two better lines sold for $1230-$1280. MANAWATU MANAWATU Typical winter yardings continued at RONGOTEA last Wednesday, with small numbers. The only heavier cattle to speak of were Friesian bulls, 840kg, at $2.18/kg, and boner Friesian cows, 540-550kg, $1.59-$1.71/kg. Crossbred boners, 402kg, made $1.51/kg, and in-milk Friesian cows, $710. A standout line of Angus store steers, 434kg, managed $2.61/kg, though lesser quality HerefordFriesian, 377kg, reached only $2.39/kg. Heifers of same breed and 307-487kg varied significantly at $1.59/kg up to $2.58/kg for the heavier end while bulls, 440kg, made $2.48/kg. Crossbred bulls, 470-655kg, at $2.29-$2.45/kg. The R1 section had a few more head, mostly dairy heifers, which sold to limited interest. Friesian, 185-248kg, returned $375-$400, and crossbred, 162-184kg, $325$370. Hereford-Friesian, 185kg, earned $510, with steers, 225252kg, making $650-$730, and bulls, 213kg, $600. Autumn-born weaner Angus-cross bulls, 102kg, returned $395, and their sisters, 97kg, $350. Hereford-Friesian heifers, 98kg, fetched $350. Calves were hard work and Friesian bulls went for $110 and HerefordFriesian, $180-$250. Angus-cross

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bulls made $155, and heifers $130 while Hereford-Friesian heifers returned $190-$235. A line of run-with-ram ewes sold for $112 and mixed sex lambs $80-$110. All eyes were on the sheep pens at FEILDING last Monday where a high volume of lambs and ewes attracted a good buying bench. A slight lift in prime lamb numbers to just over 5000 head was made up of fewer ewe lambs but more forward store mixed sex. Just over 200 very heavy mixed sex managed $181-$189 with a line of rams up to $180. Trading at $134$178 was much more common in the mixed sex pens. Male lambs generally sold for $154-$169. Scanning swelled ewe numbers and the market continued its consistently strong run. Good and very good mixed age made $126$155, while medium and mediumgood types fetched $93-$123. The better end of the two-tooths sold for $132-$159. The July prime cattle market started with very low numbers. Most of the yarding were part of a line of 12 in-calf Friesian heifers, which at 519kg made the same value of $2.48/kg as their empty sisters. Empty pens at Friday’s store cattle sale weren’t that common, but the numbers yarded was only down at 1000 head due to the increase in smaller lines. Much like previous weeks there was a reasonable mix of better quality straight beef cattle and other lesser types. The larger lines were found in the older steers. R3 steers only came in two pens, putting 495585kg traditionals at $3.06-$3.14/ kg. Traditional R2 steers, 400570kg, went for essentially the same level, mainly at $3.01-$3.15/ kg, whereas 400-485kg HerefordFriesians were more like $2.74$2.91/kg. The core of the 355-440kg R2 traditional heifers were knocking on the same heights as the steers, making $2.95-$3.06/kg. Other Hereford-Friesian and beef-cross heifers, 390-480kg, were at $2.66$2.76/kg. Two decent sized lines of 420-480kg Friesian bulls were $2.78-$2.86/kg. Reasonable numbers of R1 steers and heifers were available. The talking point through these were some 195-235kg Angus at $3.91-$3.97/kg. Angus-Friesian steers, 235-265kg, were $3.50$3.59/kg, while other 135-190kg Hereford-Friesian and Murray Grey-cross were $550-$660. Per head budgets meant for very consistent pricing on the beef heifers. Traditional and Charolaiscross heifers, 165-240kg, were all $600-$710, meaning $2.86-$2.91/ kg for the heavier lines and $3.56$3.79/kg for anything sub-200kg. Many of the R1 Friesian bulls were 175-180kg, all making $450$550, while three pens of 205285kg were $700-$750. A large pen of autumn-born Angus-cross bulls, 100kg, were $505. Around 16,000 store lambs sold to a steady market overall, however the heavier types firmed a little while the back-end softened. The quality was a little better than the previous sales, but lines were smaller on average. There were plenty of very heavy male-type lambs, nearly all selling

FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018 at $148-$165.50, with the cut just below at $140-$157. Other good and medium sized male-type lambs both made $128-$150. Heavy ewe lambs were sold for $136-$141, while any other good lines were mainly at $125-$138. It got slower selling and more varied through the lighter cuts. Generally medium ewe lambs were $106$131, while light pens floated around the $96-$116 range. The two earliest sold pens were the strongest through the in-lamb ewes, with 5-year Romney’s, SIL twins, at $198-$207. It was varied beyond these, but good quality lines with reasonable scanning percentages were roughly steady at $167-$186. CANTERBURY CANTERBURY Both sections of the Canterbury Park sale took very little time last Tuesday. A mixed quality yarding of store lambs did not quite have the punch of the week prior and prices softened. Good mixed sex firmed to $129-$138 and lighter lines were strong at $99-$120. Medium to medium-good types came back to $109-$125. Two better lines from a special entry of Merino-cross wethers from Omihi sold at $110-$123. Prime lamb prices maintained the previous week’s level and nearly 680 of the 1114 offered sold for $170-$196, with one line of 66 hitting $200. No decent lines sold below $125. Prime ewe prices climbed as high as $252$278. Buyers were hard pressed to pick up many for less than $125. Medium ewes traded at $127$150, with medium-good and good types making $156-$180. Only prime cattle greeted sale goers and the sale was a quiet affair at just 63 head. The best of the steers was one Charolais, 580kg, reaching $3/kg while $2.87$2.91/kg was the range for highyielding beef and beef-Friesian. Other lines with yield sold for $2.77-$2.84/kg. Heifers gained 10c/kg and Murray Grey and Angus-Friesian, 435-485kg, traded at $2.74-$2.83/kg, while one local trade Angus pushed to $2.87/kg. Dairy heifer prices were mixed with a better yielding Friesiancross up to $2.74/kg, while three Friesian, 443kg, made $2.36/kg. Fewer cows hit the $2/kg mark. One heavy Hereford, 655kg, managed $2.18/kg, and traditional, 453-513kg, returned $1.83-$1.84/kg. Such was the strength shown in the sheep pens at COALGATE last Thursday that $200 was exceeded in three sections of the sale – the prime lambs and ewes as well as the breeding ewes. Specially advertised breeding ewes drew extra interest and a line of halfbred, 2-shear scanned 170% pushed to $218. Scanned-in-lamb mixed age ewes made $191, while a line of Romney-cross 2-tooth ewes were run-with-ram and the preference for scanned ewes was obvious in the price tag difference of $188. Demand was strong for store lambs with prices up $3-$5. The top lines sold to $130-$140 and a reasonable second cut earnt $120-$129. The lighter end sold for $96-$106. A few small prime lines reached $204-$208, and other very heavy types made $170-$192. A good portion sold for $162-$169, while

the bottom price was $120. Twotooth ewes made $140-$152 and most of the mixed age, $155-$186, with a small portion selling to $191-$205. Lighter ewes made $111-$146. A line of 11 prime beef steers, 582-612kg, topped the section at $2.76-$2.81/kg. All other steers returned $2.60-$2.72/kg. The heaviest heifer lines at 565-608kg made similar values to the steers at $2.70-$2.76/kg. Dairy cross, 420-443kg, fetched $2.35-$2.40/kg. Beef cows sold to $2.10-$2.22/kg, and most dairy, $1.80-$1.90/kg. The main store feature was a consignment of R2 beef steers and heifers, with the two better lines of steers making $2.90-$2.94/kg, though the heifers were well off that pace at $2.61/kg. R1 Angus steers from the same place made $710 for 265kg. The only other line of note was 11 Angus-cross heifers, run-with-bull since November 1. At 442kg, they sold for $1125, $2.55/kg. SOUTH CANTERBURY SOUTH CANTERBURY Both sections of the sale at TEMUKA last Monday were at winter low levels, and there was plenty of strength in all markets. The $200 dollar mark was not only hit in the prime ewe pens but also in the lamb pens as 46 head sold for $200-$205. From there 40% of the section made $180$198, with most of the balance earning $150-$179. The ewe market was consistent with recent weeks and in fact much of the year. Prices were firm and the majority sold for $130$178, while a further 260 head reached $180-$238. Store lamb prices continued their upwards trend as volume heads in the other direction. A feature consignment of heavy ewes and mixed sex from one property sold for $150 and $153 respectively, with another small line of mixed sex also in that range. Most mixed sex sold on a firm market at $137-$147, with lighter lines well sold also at $116-$134. Two lines of light to medium ewe lambs made $121-$127, and a small line of scanned-in-lamb crossbred ewes sold for $184. A lack of cattle heading to the processors played into vendor’s hands, and coupled with the smallest yarding in well over a year, buyers had to work hard to secure any at all. High yielding prime steers easily made $2.83-$2.86/ kg and were represented by a handful of Hereford and Murray Grey, as well as a few Hereford-Friesian. Most other Hereford-Friesian made $2.67-$2.76/kg. Levels of $2.73-$2.80/kg were achieved in the heifer pens as this market firmed, with Hereford-Friesian and a few beef breeds right up there. Friesian heifers were not afforded the same luxury however and prices eased for those 443-447kg to $2.24-$2.30/kg, though better yielding types made a respectable $2.49-$2.58/kg. The bulk of the cows were Friesian, though only 40 were offered. Prices were very buoyant and while most traded at $1.80-$1.90/kg for 500-605kg, two heavier cows

did manage $1.95-$2.04/kg, while two 800kg plus sold for $2.20$2.30/kg. R2 heifers were the talking point of a store cattle sale that had little more to yarn about last Thursday. Prices for a small consignment of Hereford-Friesian, 415-436kg, took a significant lift to $2.72$2.75/kg, though other sections were more lackluster and the steer equivalents, 365-420kg, sold at a lesser rate of $2.70-$2.71/kg. There were a few beef lines to be found in the R1 pens, consisting of Angus-Hereford heifers, 207270kg, at $530-$620, and bulls from the same camp and 184282kg, which sold for $490-$650. Another vendor offered up nearly all of the R1 beef-Friesian heifers and steers, and the steers were outclassed by the more attractive Hereford-Friesian heifers. There was a notable premium paid for these over both the steers and also the AngusFriesian heifers. At 161-191kg they sold for $545-$580, $3.04$3.36/kg, while the steers of same breeding and of very similar weight made $460-565, $2.83$2.88/kg. The Angus-Friesian also tipped the scales at a similar level though made $440-$530, $2.61$2.70/kg. Dairy dominant lines struggled, and Friesian-cross steers, 127129kg, made just $310-$370, while Friesian bulls, 192-197kg, were also very buy able at $405-$410. OTAGO OTAGO The sale was back to just the sheep at BALCLUTHA last Wednesday, and vendors were once again well rewarded, PGG Wrightson agent Alex Horn reported. A medium sized yarding of store lambs sold exceptionally well as top lines firmed to $120-$142, with medium and lighter lines holding value at $100-$120 and $80-$100 respectively. A handful of tail-end lambs made $60-$80. The prime lamb market was a carbon copy of the previous week as heavy types went under the hammer for $170-$199, medium $140-$170 and lighter, $120-$140. Ewe numbers were on the increase as more properties scan, but the market was resilient despite the extras. While the $200 mark was not cracked this week heavy ewes still sold on a steady market at

$160-$186, which was repeated for medium lines at $130-$160 and light, $80-$130. Rams sold for $50-$90. SOUTHLAND SOUTHLAND Sheep markets continued to strengthen at LORNEVILLE, and prime ewes pushed past the $200 mark last Tuesday. Store lambs had a good day at the office as the top lines made $120-$130, medium $106-$110, and light, $85-$95. A lone line of mixed age ewes, scanned-in-lamb singles, were medium types and sold for $145. Plenty of competition for prime sheep meant heavy lambs sold to $152-$181, medium $130-$151 and lighter, $110-$128. The top line of heavy ewes made $206, with medium types ranging from $137-$159. Light ewes sold for $80-$136. The cattle sale is tracking at winter low levels and limited numbers meant that buyers had to up their game for prime and boner. Beef heifers, 460-480kg, sold for $2.56/kg, and 420-500kg plus cows traded at $1.65-$1.85/ kg, with the heavier types making the premium. Numbers were very limited in the store pens and the yarding included R2 Murray Grey steers, 400kg, $2.63/kg, and Friesian, 400kg, $2.35/kg. R1 HerefordFriesian steers, 240kg, returned $600, though heifers made better per kilogram values as 220kg sold for $590. Vendors were again rewarded at CHARLTON last Thursday, with solid demand across all classes of sheep, PGG Wrightson agent David Morrison reported. A small yarding of store lambs made positive movements. Top lines were steady at $125, though medium types firmed to $110-$120, with a steady market returning for lighter types at $90$100. It was all firm through the prime lamb pens though, with heavy types gaining $5 to $185, though medium types moved significantly, lifting $20-$25 to finish at $160-$170. Lighter lines also improved by a similar margin to $140-$150. Ewes held the previous week’s values, which meant heavy lines traded at $170$175, medium $130-$150 and light, $95-$110. Rams returned $90-$100.

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40 FARMERS WEEKLY – farmersweekly.co.nz – July 9, 2018 NI SLAUGHTER STEER

SI SLAUGHTER LAMB

SI SLAUGHTER STAG

($/KG)

R2 FRIESIAN BULLS, 375-450KG, AT STORTFORD LODGE

($/KG)

($/KG LW)

5.40

7.75

11.15

$3.15/kg high $170-$200 R2 Angus steers, heavy prime lights Very 495kg, at Frankton lambs at Canterbury

2.72

Park

Good times are here It’s taken seven years to return to here. I just hope we are not gouging prices and putting people off buying our lamb again.

Annette Scott

annettescott@globalhq.co.nz

T’S been a long time coming but sheep farming is where it should be, Federated Farmers meat and fibre chairman Miles Anderson says. With winter schedules knocking on the door of $8, global markets largely continuing to track along at the solid pace of recent months and global inventories remaining low it’s a good time to be a sheep farmer, he said. Confidence at the farmgate in sheep is strongest since 2011. But Anderson cautions the last time prices reached these heights they weren’t sustainable. “The arse fell out of the market and it’s taken seven years to return to here,” he said. “We don’t want a repeat of that when lamb priced itself off many menus and ultimately damaged demand. “I just hope as a country we are not gouging prices and putting people off buying our lamb again. “We want to see these prices but we need them to be sustainable. If they are, then sheep farming will be looking to good, ongoing positivity.” Anderson said New Zealand flock numbers are at a critical mass for the sheep industry so good positive indicators will hopefully stall sheep farm conversions to other livestock. “If ewe numbers drop dramatically we will find

Miles Anderson Federated Farmers

KEEP IT UP: Farmers like the prices but also want them to be sustainable, Federated Farmers meat and fibre chairman Miles Anderson says.

ourselves going through another whole restructure of the industry and we have had enough of that.” While meat companies are confident short-term, the cloud on the horizon is the ramifications of tariff wars and globally related trade if Europe, America and China enter into major tariff and protection like policies, Anderson said. AgriHQ analysts forecast positive prospects for the next three or so months. Contracts this week are peaking at $8/kg from at least one North Island processor for lambs over a two-week July period.

Sitting

Contracts in the South Island top at $7.90 with the spot market at $7.80-$7.90 in the north and the south trailing about 10c behind. “The spot market is very strong and we expect will continue to follow closely to the contracts,” Rachel Agnew said. She said uptake of contracts is slow because of the high spot market pricing. “That’s typical in a good season.” Processor are reporting stability in the pricing with good market demand and global inventories remaining low. Mutton is flying high too

FENCE? ON THE

with slaughter numbers in the South Island 60% or 34,000 head above a year ago, an indication farmers are optimising the current good returns for sheep. The overall mutton kill is 19%, 298,000 head above last season. While there is some weakness in the UK frozen leg market, the bulk of NZ production is already sold posing less of a problem than it would have otherwise been in peak production season. China again has been the superstar of the markets. In May this market took 43% of NZ’s total lamb production with the average export price for the month up by 6% on April and up by 20%, the equivalent of $1/kg, on May last year. Reports from exporters suggest there will be further upside for prices in this market as NZ supply declines in the coming months. High export volumes of sheepmeat from Australia have not adversely impacted demand for NZ lamb to date.

Resurgence for store lamb prices THE store lamb season is marching on and already there are some of the next crop on the ground in early areas. The sale yards are starting to trade in reduced numbers, especially Suz Bremner in the male lamb department AgriHQ Analyst where a large number have now been finished. Processors are also seeing a big reduction in numbers so the procurement battle is very healthy, pushing schedules up and in some cases over the $8/kg CW mark in the North Island, with some speculation of it climbing even higher. We also have to bear in mind that while we are well through the year at July now, any new season lambs to kill will not be ready until late October/early November and so you can clearly see there is potentially a looming gap, given that the North Island lamb kill is ahead of last year though the South Island is slightly behind. So, what has all that meant for prices for our dear little ovine friends at the sale yards? Prices did wane a bit a few weeks back with reports that most of the bigger finishers were full up. That was about the time I decided to take two weeks off and came back to see a resurgence in prices in my absence. This can mainly be attributed to a few factors – lambs onfarm have popped out the top end to the processors and so those finishers have then re-entered the market, filling up from the bottom. What they have found on their return is a reducing trend in volume and so have had to work harder to secure lines. That coupled with the good schedule outlooks means buyers are prepared to roll up their sleeves though and get stuck in. Now that most lambs have a fair amount of size on them and coupled with a strong market, it is not uncommon to hear successful bids at $120-$140, with minimal numbers trading below that level and a good number going even higher. suz.bremner@nzx.com

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