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Southland wet sets off keen need for feed
Hauraki Plains is getting dry and while the recent rain has been a blessing, more would be welcome.
CAREFUL pasture management will be needed to replenish Southland feed stores, with the arable industry predicting low yields after the wettest spring in recorded history.
Environment Southland reports September and October rainfall was nearly double the long-term average, making it the wettest spring on record.
The province has started to dry out with a week of warm weather allowing crops to be finally sown and stock to start putting on condition.
Meanwhile parts of North Canterbury are entering their second year of drought.
North Canterbury Federated Farmers president Karl Dean estimates the inland hill country north of Christchurch has had only 20 to 25% of its annual rainfall and faces a deficit of 400 to 500mm.
Many farmers have weaned and sold the lambs as store to focus on the ewes but with the traditional dry season looming, he said, it is going to be a testing few months.
Further north, up to 30mm rain in parts of Hawke’s Bay and Waikato have provided some relief, but the rain has been patchy, with some areas left high and dry.
Waikato Federated Farmers president Keith Holmes said the
“The issue is that the dry is quite deep so the Hauraki Plains might look green on the surface but it’s quite dry underfoot. We need some follow-up rain to kick it on into summer.”
In Hawke’s Bay, Agri HQ senior analyst Mel Croad said parts of the region have dried off considerably, while pockets have received some isolated rain and are looking okay.
“It’s not a blanket spread of dry over the entire region, but you only have to look at some of those soil moisture deficit maps from NIWA and it shows we are considerably drier than this time last year.”
Areas around Hastings, Havelock North and west of Hastings have been dry since the end of October, Croad said, which means crops are struggling.
Livestock values are $1-$1.50/ kg higher than last year, enabling farmers to make early decisions.
Southland farmers face prolonged challenge repairing damaged pasture.
Forage and cropping adviser for H&T consultants in Southland Ken Johnston said farmers will have to decide if they under-sow or reseed.
Stressed grass develops seed heads earlier than usual and paddocks need to be mowed, but muddy conditions limited access until about three weeks ago.
Continued page 3
Rural Riders head for Southland’s trails
Rural Riders Southland organisers Mo Topham and Bart Luitjen say mountain biking is a good way for farmers to get together off farm and relax. The pair have arranged Southland’s first Rural Riders event, which began in Taupō when a group of farmers wanted to host an event similar to the popular Surfing for Farmers. Photo: Gerhard Uys
SECTORFOCUS
Farmers get box seats to choose carbon capture income opportunities.
NEWS 5
Where farming meets health and beauty
Countrymummyof2, also known as Eden Ritchie, pictured here with children Cullen and Lily, is navigating having to uproot her young family and a new beauty business.
DAIRY 11-19
Avian influenza likened to foot and mouth for the poultry industry.
NEWS 7
A self-confessed terrible forecaster looks into his crystal ball for 2025.
OPINION 9
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ISSN 2463-6002 (Print) ISSN 2463-6010 (Online)
SPEED: Gene-editing rule changes are designed to bring us up to speed with the rest of the world and give our scientists the tools they need to produce, in agriculture, better solutions for farmers, says Dr William Rolleston.
News in brief GDT rises again
Whole milk powder prices around US$4000 a tonne in the first Global Dairy Trade auction for December underpin the $10 farmgate milk price forecasts, analysts say.
WMP sales have the biggest influence among reference products to set the Fonterra milk price, currently forecast to be in the range $9.50 to $10.50. The GDT price index rose 1.2% because WMP prices increased by 4.1%.
Water treatment
Alliance Group has installed the world’s largest supercritical ultraviolet water treatment system of its kind at its Mataura beef processing plant in Southland.
General manager safety and processing Wayne Shaw said the UV plant treats E coli in the wastewater. It has improved the E coli being discharged from around 4 million cfu/100ml to less than 1000cfu/100ml.
Funding boost
The government has contributed almost $1 million to the Land for Life remediation programme in Hawke’s Bay to hasten regional farm recovery and resilience to future weather events.
The programme was born in the aftermath of Cyclone Gabrielle as a collaborative initiative between Hawke’s Bay Regional Council, the Ministry for Primary Industries and the New Zealand arm of the global notfor-profit The Nature Conservancy. Funding has come through the government’s Sustainable Food and Fibre Futures fund.
Scales bounces back
Scales Corporation has bounced back from Cyclone Gabrielle damage to its apple orchards in Hawke’s Bay to announce a net profit guidance between $30 million and $35m in the 2024 financial year.
The directors have announced a 7.5 cent interim dividend, payable in mid-January, with a similar final dividend to follow. Managing director Andy Borland said 2024 has been a very positive year with a return to a more normal trading environment.
Kāinga Ora shuns wool in state housing
Annette Scott NEWS Food and fibre
THE explicit exclusion of wool carpet from state homes in favour of synthetic materials by Kāinga Ora sets a damaging precedent, say wool sector advocates.
The current Request for Proposals for the national supply of carpet and underlay specifies nylon carpet only.
It also states, with bold emphasis, “we are not looking to procure wool carpet”.
The exclusion appears in conflict with the National-NZ First coalition agreement that government agencies would be directed, where practical, to prefer use of woollen rather than artificial fibres in government buildings.
Bremworth chief executive Greg Smith said Kāinga Ora is New Zealand’s largest landlord, owning or managing more than 75,000 homes, and a contract to supply this many homes would equate to more than a million lineal metres of carpet.
“It would be transformative to the wool sector.”
In July 2023 Kāinga Ora stated that it was pursuing a more sustainable path for its housing, which meant looking at the fibre being used in its homes after more than 600,000m of synthetic carpet
Continued from page 1
“Coffers have been emptied over the winter. There was a heap of grass available, but by early spring it was all gone”.
Cows still milked well because farmers bought supplementary feed during mating and peak milk, he said.
Hedgehope dairy farmer Dylan Ditchfield said his farm is finally growing more grass than cows are consuming.
had been laid over the previous six years.
“Given we have a large surplus of a high-performing alternative in locally grown strong wool, this decision seems to lack macroeconomic insight and an awareness of the plight of our rural sector and the communities they support,” Smith said.
“If there is some inherent bias against wool that persists within government departments, it is important for the industry to have the opportunity to correct any lingering misconceptions.
“The removal of wool carpet from the Kāinga Ora contract is a lost opportunity to send a message of support for the sector and to set a precedent for residential developers.”
Smith said as a manufacturer, Bremworth is aware of the need to secure key contracts of this nature in order to elicit widespread change.
It appears that Kāinga Ora has concluded that warmer, dryer and healthier homes mean laying petrochemical-based carpets instead of New Zealand wool.
“As a nation, we import around $5.6 billion worth of building materials annually of which carpet and flooring are part of a $333 million subcategory and insulation products make up a further $73m.
“The use of NZ-manufactured wool products would help reduce this volume of imports
However, full farm recovery could take two to three years.
In a normal year he would have already cut grass for bales or silage at least twice by now but has not been able to do so yet as many paddocks still have puddles in them.
DairyNZ Lower South Island regional manager Guy Michaels said the region had missed the usual spring flush and baleage or silage yields are down.
The head of the Foundation for
Research & Insights Forum
18–19 March 2025
Wellington
OPPORTUNITY: Bremworth chief executive Greg Smith says there is no question the carpet manufacturer “would have gone to extraordinary lengths” to secure the contract that would have represented a key turning point for the NZ wool sector.
This is just another blow for sheep farmers, who are struggling to keep wool an export and domestic commodity and a viable part of their businesses.
Toby Williams Federated Farmers
and support regional economic development,” Smith said.
“Farmers just want a level playing field, but we were totally shut out of this process with no
Arable Research grower group in Southland, Steve Wilkins, said Southland and South Otago yields could be down 10 to 15%.
Wet conditions meant the timing of inputs was compromised as winter-sown crops entered their growth period, which will affect crop health and yields, while spring sowing has also been delayed.
Wilkins said this could impact the supply of feed and seeds crops.
There is hope on the horizon,
Beyond the Ordinar y: Navigating Challenges and Redefining Success is the theme for Food and Fibre CoVE’s upcoming Research & Insights Forum, which will showcase crucial projects that help address the challenges our sector faces.
The event will feature presentations and interactive workshops, with plenty of opportunities to leverage our collective voice
clear reason why,” Federated Farmers meat and wool chair Toby Williams said.
“I can’t see why it wouldn’t be appropriate to use woollen carpets in a state house, but we didn’t even get a look in as Kāinga Ora weren’t interested in testing the price wool carpet providers might come up with for such a significant supply contract.”
Williams said for the government to choose a fossil fuel-derived synthetic carpet over a sustainable NZ-grown woollen product, just because it’s cheaper, “is an absolute shocker”.
“This is just another blow for sheep farmers, who are struggling
with NIWA’s seasonal climate outlook for November to January predicting temperatures at or above average, with rainfall totals likely to be below or near normal.
Southland Federated Farmers meat and fibre chair Dean Rabbidge said many farmers weaned two to three weeks early, realising a normal weaning draft was unlikely.
Most were only getting 10-20% of their usual number of lambs away to the works.
Over the course of the forum, you’ll:
to keep wool an export and domestic commodity and a viable part of their businesses.”
Campaign for Wool NZ (CFWNZ) is calling for transparency and for the Request for Proposal to be re-opened to allow wool carpet manufacturers to submit their proposals.
“We think Kāinga Ora should put the effective into cost-effective and ensure New Zealanders’ health and safety is part of the equations when refitting these homes,”
CFWNZ general manager Kara Biggs said.
Visibility of the decision-making criteria would also be helpful.
“We all need to know exactly what boxes need to be ticked in order for wool products to be given the opportunity to be laid in government and public buildings.”
Associate Agriculture Minister responsible for wool Mark Patterson told RNZ it’s beyond disappointing Kāinga Ora isn’t putting wool carpet into new state houses.
Patterson said tweaks to procurement rules are being made and he expects to make an announcement soon.
He said it is frustrating government departments aren’t listening.
“It defies clear intent of the coalition agreement, which does prioritise woollen fibres, and while those procurement rules haven’t been updated yet, the intention is clear from the government.”
“There has been no heat, no quality grass and lambs are competing with their mothers.”
Rural Contractors NZ vicepresident and Southland board member Daryl Thompson said machinery is still getting stuck in paddocks, but warm dry weather means they are making inroads into the backlog of work.
He estimates cultivation is four to five weeks late and other work two weeks behind.
> Gain new perspectives on workforce development and the future of skills in the food and fibre sector
> Discover how emerging technologies are shaping the way we work, and how we can harness these innovations to improve our practices.
> Participate in a workshop and panel discussion focused on navigating the uncertainties arising from upcoming reforms and how we can adapt to the changing landscape of vocational education and training.
Slow-flowing velvet keeps market soft
Annette Scott NEWS Deer
WHILE opportunities are looming for New Zealand frozen velvet, several headwinds in the market are proving a challenge with velvet currently slow to flow.
Despite the slow start to the season, Deer Industry NZ (DINZ) velvet representative and PGG Wrightson national deer and velvet manager Tony Cochrane believes the future is bright.
“It’s just a matter of weathering the storm we have got right now.”
While NZ has secured official access for velvet into China that Cochrane said will present real opportunities going forward, it has created headwinds getting there.
China-led stockpiling and cheaper selling of product by a large-scale importer has eroded values causing a price drop in China’s wholesale market, but while the speed of consumer sales has been impacted, the overall end value is stable.
“It’s a trading issue, not about consumption. There is buyer interest but at what level we are trying to establish.
“Access is no longer the issue, but the initial uncertainty and the lead-in are now creating the headwinds.
“I think a lot of velvet producers are shutting the door on their freezers, waiting to sell until the price improves.
“While we are prepared to make sales, farmers just don’t want to accept that level.
“By holding back stock, we hope to achieve a sale price that creates competition and starts stocks moving freely so we don’t have a stockpile heading into the tail end of the selling season.”
Cochrane acknowledged the current frustration of velvet producers, suggesting the benefits of restored market access, underpinned by defined protocols and procedures, is a huge longer term benefit to the NZ velvet industry.
Provelco Co-operative general manager Ross Chambers said it is a difficult season with no clarity on
A lot of velvet producers are shutting the door on their freezers, waiting to sell until the price improves.
Tony Cochrane Deer Industry NZ
what’s happening.
He said while the access issue was sorted in a technical sense, in reality there’s a way to go, understanding that not all importers have passed their audits for import permits.
“This could be debatable but in reality, we are still looking for strong intent as we haven’t seen it yet.
“Business isn’t flowing because the China issue around certification of processing plants isn’t quite sorted. Add to that lower consumption and stocks in the market, it’s difficult.”
Chambers said China is becoming more discerning about the velvet it buys.
“There is an appetite for the
Fonterra milk forecast enters double digits
Gerald Piddock MARKETS Dairy
FONTERRA farmers have received an early Christmas present with the co-operative raising its forecast midpoint by 50 cents to a record $10/kg MS.
The new forecast range of $9.50-$10.50/kg MS reflected the ongoing strength of the global market.
Waikato Federated Farmers vice-president Andrew Reymer described it as “friggin’ amazing”.
“It’s great news and will be a nice Christmas bonus.”
It will take the pressure off a lot of farmers, and provincial towns will be the real winners because it’s their businesses that farmers
use when they do their purchasing, he said.
He expects the lift in income will be used by farmers to pay off debt and prepare their businesses for the next time the forecast falls.
“This is the time to get ready for next year, pay off the overdraft and make sure you have some buffer for the next recession and be prudent – and that’s not putting a damper on the good news.”
The lift also saw Fonterra’s advance rate change to $8.50/kg MS for its December-paid January period. In September, the rate over that period was forecast as $7.60/ kg MS.
Fonterra CEO Miles Hurrell said Fonterra is committed to providing farmers the highest sustainable
PREMIUM: Provelco Co-operative general manager Ross Chambers says there’s an appetite for the larger, heavier stick of velvet but that’s not the premium. Producers, he says, ‘need to cut shorter, quality velvet’.
larger, heavier stick of velvet but that’s not the premium or what the market wants and that’s not a fantasy, it’s a fact.
“Producers need to cut shorter, quality velvet, the breakpoint being 3.5kg well-conformed sticks
milk price and he was pleased to announce another lift in the forecast for the season.
“We’re seeing a recovery of demand in greater China as domestic milk production rebalances and demand from southeast Asia continues to be strong.
“Looking at supply, milk production out of the US and Europe continues to be impacted by local factors, while production out of most regions of New Zealand has increased.
“We’re continuing to monitor factors that may influence global supply and demand dynamics, including any potential impact from heightened geopolitical uncertainty,” Hurrell said.
The forecast lift came after the first GDT auction for December saw whole milk powder prices lift 4.1% to sell for just under US$4000.
Fonterra’s forecast earnings for the 2025 financial year remain unchanged at 40-60 cents per share.
“Our forecast earnings range reflects an expectation our underlying operating profit will be stable as we offset the higher cost of milk in the second half of the financial year through improved sales volumes, product mix and pricing.
“It also reflects the change in Fonterra’s tax status, which is effective from this financial year and will reduce our reported earnings per share.”
as the reality is there is now a limited tolerance for large, nontraditional velvet.
“We have a fair bit yet to play for this season when buying comes through and the sooner the better,” Chambers said.
FORECAST: The lower lamb crop means forecast export lamb numbers for the coming season are 6.5% lower than last year.
Million fewer lambs forecast in 2024 crop
Neal Wallace MARKETS Sheep and beef
A BEEF + Lamb New Zealand report has confirmed earlier forecasts that this year’s lamb crop could be 1.1 million head smaller than last year’s.
The 5.2% drop is due to falling ewe numbers, spring storms and a small drop in the lambing percentage.
The report estimates a 19.2 million lamb crop, although final figures for the South Island will only be known closer to Christmas.
The lower lamb crop means forecast export lamb numbers for the coming season are 6.5% lower than last year.
Beef + Lamb NZ (BLNZ) said Australian lamb production is
also expected to be lower, which will tighten global supply and may lead to stronger prices in international markets.
Spring lambing rates were higher than last year in the North Island but lower in the South Island due to wet weather and snowstorms in Southland and Otago, although BLNZ said losses were less than originally feared.
This season is starting slowly with lamb processing numbers forecast to be down 11% in the three months to Christmas.
South Island numbers for that quarter are back 22% but numbers are 2.4% higher in the North Island.
Adult sheep exports for the season are forecast to be 10.9% lower than last year.
Rules fell forest companies’ pastoral rush
Richard Rennie NEWS Forestry
FARMERS have been given box seat tickets to pick and choose their opportunities to capture carbon income with newly announced changes to the Emissions Trading Scheme forestry regulations.
In a policy shift well-signalled as a pre-election promise, the government has made comprehensive changes to ETS forestry regulations that make it more difficult for larger corporate purchases and afforestation of pastoral land.
Farmers owning the land and companies owning the trees is an old model. The changes give farmers even more power and control.
Ollie Belton Carbon Forest Services
This includes a moratorium on exotic forestry registrations for ETS on Land Use Classification (LUC) 1-5 actively farmed land.
There will also be a registration cap of 15,000 hectares placed on LUC 6 land that can be planted into ETS-eligible forestry.
However, farmers retain flexibility and choice over what they can and can’t do with their land, with the rules allowing up to 25% of LUC 1-6 land to be planted into forestry.
Farm Forestry NZ president Neil Cullen said the announcement is exactly what was promised pre-election.
“We appreciate it gives farmers the opportunity to still plant a quarter of the farm in trees, but that is not the case if a large corporate forestry company bought the land – they could not do it.”
He said questions remain about how exactly the 15,000ha cap would be managed and allocated, but he suspected it may be on a first come, first served basis.
Steeper LUC 7-8 land can continue to be planted in ETS forest, subject to environmental
standards and limitations.
Federated Farmers welcomed the changes, with the announcement bringing NZ into line with the Paris Accord by reducing the impact upon food-producing land.
Forestry spokesperson Toby Williams said the changes also respect property rights, with the ability remaining to still plant forests.
“However, the government simply won’t incentivise this behaviour by allowing these forests to earn carbon credits through the government’s ETS.”
Ollie Belton, director of Carbon Forest Services, said generally he welcomes the changes, although more detail would have been welcome, given the government has signalled them since before the election.
“I see they have allowed for ‘transitional measures’ for landowners who may be in the process of afforestation who can demonstrate intent to afforest prior to December 4 when these rules were announced, which gives me some comfort.”
However, he said landowners currently negotiating deals for
land sales that may involve forestation will face uncertainty about how secure their deals may now be, given the changes.
“And who knows if they will or will not have some sort of retrospective element in their legislation?”
He said the 25% carve-out of a farm’s LUC 1-6 area puts farmers in a strong position.
He sees opportunities for smart investing forestry companies to work on aggregating farmers with land to convert into partnerships with those companies.
“Farmers owning the land and companies owning the trees is an old model. The changes give farmers even more power and control.”
He also welcomed the LUC reassessment promised in the changes at a farm level. Many LUC assessments have been made at a broad level in the past and were not always as granular as they should be.
“I also think the exclusion of specific categories of Māori land from the restrictions is a good one.”
Iwi have argued strongly in the
director of Carbon Forest Services, says the new ETS rules give farmers a good opportunity to partner up with forestry companies keen to participate but now unable to buy pastoral land for wholesale afforestation.
past for the right to be able to plant pine trees for ETS carbon income, given the poor land quality they were often dealt and limited alternative income options that land offers.
Commercial foresters hacked off about changes to regs
Richard Rennie NEWS Forestry
COMMERCIAL forest owners are less than ebullient about the government’s latest moves on emissions trading scheme plantings, describing them as shortsighted and poorly conceived.
New Zealand Forest Owners Association CEO Dr Elizabeth Hegg said the moratorium on ETS forest plantings on land use capability (LUC) types 1-5 will severely limit the number of forests capable of participating in the Emissions Trading Scheme (ETS).
She said this will push forest
establishment to less-productive agricultural land, limiting sequestration capacity and the ability of the sector to offer employment.
“Planting of trees, be that for production purposes, diversification of land, or for carbon sequestration, is arguably the only real tool at New Zealand’s disposal to mitigate emissions besides gross emissions reductions,” she said.
She said farm foresters and small-scale woodlot owners will be most affected, given that the new rules limit the tools they have at hand to diversify land use.
“Landowners, including farmers, [have had] the right to diversify their land through the planting of more trees. Today’s announcement
essentially devalues farms, in that land use will become limited to farming only.”
She said the 25% limitation on planting area appears to be an arbitrary threshold that may not suit all farmers.
“Forest owners are concerned the LUC cut-off was an arbitrary decision, rather than an evidencebased one.”
She said that, while there has been an increase in the planting of carbon forests in recent years, the total forest estate remains smaller than what it was 20 years ago.
Exotic plantings to April 1 last year were 1.79 million hectares, compared to about 1.80 million hectares in 2004.
Flu outbreak industry’s foot and mouth
Gerald Piddock NEWS Biosecurity
THE discovery of H7N6 avian influenza on an egg laying farm in Otago is the poultry industry’s equivalent of a foot and mouth outbreak, Poultry Industry Association executive director Michael Brooks says.
It had come as a shock given the industry had never had the disease in New Zealand, but there was also some relief after testing confirmed it was not the wildlife adapted H5N1 strain that is prevalent among wildlife around the world.
“It’s the major poultry disease around the world and it has those trade implications,” Brooks said.
Further testing on December 3 revealed the disease was in two sheds on the farm, meaning 80,000 chickens will be culled.
The Mainland Poultry-managed property was placed under a restricted place notice on December 1 after results from testing confirmed H7N6 strain in chickens from one shed on the property.
BiosecurityNZ has also placed a precautionary restricted place notice on a second small free-range farm near Dunedin on December 4, stopping the
movement of material on and off the property.
The property has around 6000 birds, with a number of deaths, and testing is underway.
The farm is not owned by Mainland Poultry and investigations are underway to see if there are links between the two properties.
Brooks said it was tough to keep free-range chickens completely safe from avian influenza given the risk that wild birds or waterfowl could interact with these animals, and expose them to this disease – which is how Biosecurity New Zealand believe
the disease spread to this farm.
The farm will have some connections to others run by Mainland Poultry and traceability work will be going on right now.
“It’s also reasonably isolated so there’s not that many other poultry or layer farms around it. Our hope is that it’s something peculiar to this farm.”
There was huge concern among poultry farmers that the disease had been found in NZ. The association has been keeping farmers up to date as much as possible on developments since H7N6 was found.
Prior to that, the association had
been working for months with the MPI preparing for the arrival of the H5N1 strain.
While most of that work centred around the H5 strain, the H7 strain is still avian influenza and from that perspective it allowed them to look at their options, Brooks said.
“It’s certainly a wake-up call. Go back and re-check to see that your biosecurity is as good as it can be.”
Both egg and meat chicken farms undertake biosecurity audits to ensure they are doing everything possible to keep their chickens safe, he said.
“We’re working pretty damn hard to try to get the levels of biosecurity up.”
NZ is unique globally in that it was free of the three main poultry diseases, one of which is avian influenza. It is hoped that full eradication will restore that disease-free status which is so important for the industry’s reputation, he said.
The discovery also meant all exports are now blocked until surveillance and testing shows the industry is disease-free.
“Exports aren’t a huge part of our industry. It total, taking into account meat, eggs and day-old chickens it’s about $180 million, a tiny percentage of agricultural exports, but it’s still important and that will certainly have an impact on those companies that rely on exports.”
Brooks said the industry now has a nervous waiting game ahead as it hopes the disease has been contained.
Officials are examining Mainland Poultry’s internal supply chain as they try to trace any movements made.
“That’s something we have reenforced with our farmers as well – you must have good traceability records – keep a record of who has come onto your farm, where they have come from and where they are going to.”
From the Editor
Craig Page Deputy editor
Ta shock, but there was relief after testing confirmed it was not the wildlife adapted H5N1 strain that is prevalent among wildlife around the world.
“It’s certainly a wake-up call. Go back and re-check to see that your biosecurity is as good as it can be,” Brooks said.
Despite New Zealand’s geographic isolation, authorities here have clearly been preparing, and expecting, some strain of bird flu to arrive.
The H5N1 strain has been spreading around the world since it emerged in 2020, and earlier this year it was detected on the Antarctic Peninsula.
This strain has adapted to wildlife and has infected more than 500 bird species and 60 species of mammals.
Officials and experts seem confident this outbreak can be contained and quickly eradicated, as it already has been overseas.
Letters of the week Update from Ditch
Ditch the dog
HI, ALL you FW readers, it’s me, Ditch. How time flies. It’s been over a year since I swapped my Hawke’s Bay home to join John’s team over at Whanganui, and I’m happy to report I’ve fit in like the proverbial old sock, especially now I’ve got my bearings.
The sheep head north to the yards, not east to Waipukurau, but you could hardly have blamed me back then, same-looking sheep.
I still like my morning run, and the feedup time run, too. If an eye isn’t kept on me – incorrigible John calls it – I can put 2km in before anyone knows I’m missing.
I upset John a bit at lambing time. He fixed a broken rail in the yard fence and it had me foxed for a while, till I worked out I could jump over. Then the cunning bugger hot-wired the yard …
All the other dogs here couldn’t give a rat’s. More interested in their biscuit. Anyway, with lambing done, the yard’s getting overgrown so John’s opened the gates for the sheep to come in. Wheee, I’m off. Well, I was for a while, but now I get the 25m cord setting my range limit.
No sweat, there’s still my biscuit to think about. There is shearing and stuff on now, plenty going on for some barf-barfing and legitimate exercise.
There was talk in FW last week about the sheep industry needing to be re-purposed, but you’ll never re-purpose us working dogs! Have a good one …
Farmers Weekly is published by GlobalHQ, PO Box 529, Feilding 4740. New Zealand Phone: 0800 85 25 80 Website: www.farmersweekly.co.nz
EDITOR
Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz
EDITORIAL
HE arrival of a bird flu strain in New Zealand should come as no real surprise, the challenge is how we deal with it to ensure there is no long term impact on the poultry industry.
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About 80,000 hens at Mainland Poultry’s Hillgrove Egg Farm, near Moeraki in Otago, have been destroyed after the avian influenza outbreak was discovered. It is suspected the strain has developed from interactions with local waterfowl and wild birds.
The strain of bird flu, H7N6, is not the same as the virulent H5N1 strain, which is now widespread in farms across the United States and other countries.
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Poultry Industry Association executive director Michael Brooks says the discovery is the poultry industry’s equivalent of a foot and mouth outbreak. It had come as
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Only last month Biosecurity Minister Andrew Hoggard encouraged New Zealanders to take steps to be ready for its possible arrival. The fact H5N1 is spread by wild birds means it’s unlikely it can be kept out of the country, and it’s unlikely to be eradicated once it establishes in the wild bird population.
New Zealand has a fine reputation for tackling disease head on. You only have to look at the outbreak of Mycoplasma bovis in July 2017 as an example.
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and experts seem confident this outbreak can be contained and
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The country had a choice to try and eradicate it or allow the disease to spread. The former was chosen and earlier this year it was revealed the eradication programme has cost around $722 million to date but no active cases exist. Since arriving on our shores, the disease has been identified at 282 properties and almost 190,000 cattle have been culled.
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It was estimated the cost of letting it spread would have been $1.3 billion in lost productivity in the first 10 years alone.
The Ministry for Primary Industries and the Department of Conservation (DOC) also raised awareness of bird flu – targeting people on lifestyle blocks, city-dwellers with backyard poultry, bird fanciers, rare breed keepers and people with pet birds.
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This bird flu outbreak clearly illustrates the importance of vigilant biosecurity measures in the agriculture sector. Organisations such as the Ministry for Primary Industries need to be funded and supported appropriately to ensure a tight grip is maintained on this country’s borders.
A prediction from a terrible predictor
Eating the elephant
David Eade
David Eade is a Whanganui sheep and beef farmer with a finance background, specialising in investments within the primary sector. eating.the.elephant.nz@gmail.com
AH, THE early days of summer. The paddocks are lush (hopefully).
The stock are thriving (mostly). There’s the faintest hint of optimism in the air.
It’s a busy time, of course, but even farmers need a moment to pause. Whether it’s stealing away to the beach, watching a game of cricket, or fiddling with
the resolutions we’ll forget by February, there’s a certain magic to this season.
Personally, I dislike resolutions. They’re just promises you’ll break later. So this year, I decided to try something different. Predictions.
Before I stare into my crystal ball and read our fortune for 2025, let me recap my two big predictions of 2024 – and how I got them both spectacularly wrong. First, my boldest contrarian take: that the Reserve Bank wouldn’t cut rates until 2025. Second, the year’s big political winner: Trump.
At this time last year, interest rates were close to their peak, lamb prices were scraping the bottom of the barrel, and everyone was wondering how long the pain would last.
You’d see it everywhere. On every monthly invoice and every grim expression on the face of fellow farmers at the saleyards. Come February 2024, the markets started chanting for central banks to cut rates. “Any day now,” the analysts said, which was a bit like waiting for rain that never comes. Every delay added to the frustration, and frustration as we know, is fertile ground for political change.
Over in the US this time last year, the Republicans were gearing up for their primary circus, while Biden had just started stumbling
Even the capital markets, those jittery creatures, seem to be relaxing as consumers cautiously open their wallets again and global conflicts simmer down.
over words that weren’t even complicated.
In November, that economic tillage made for perfect conditions for political change to flourish.
Trump is back in, and the world seems less panicked than before. Perhaps the shock factor of his first rise to power has worn off, or maybe his supporters—many of whom kept their preferences quiet last time around—are now emboldened to make their case openly. Closer to home, the secondary outcomes of this result are that we’re all potentially in the firing line for US tariffs. Something my crystal ball didn’t pick up either.
But here we are, and politics aside, things are finally starting
to look up. Both local and global interest rates have begun to fall, which is music to the ears of anyone with a mortgage, or a tractor on finance.
Lamb and beef prices are climbing back, giving some breathing room to those of us who’ve been watching margins like a hawk. Even the capital markets, those jittery creatures, seem to be relaxing as consumers cautiously open their wallets again and global conflicts simmer down.
Looking back, my 2024 predictions were a case of balancing hope with realism. On the one hand, I wanted to believe the best. Like that the economic fallout wouldn’t be bad enough for the Reserve Bank to send interest rates off the cliff. But in reality, my 2024 looked much the same as everyone else’s – tightening and retightening budgets and preparing for inevitable curveballs. So, what does my highly unreliable crystal ball say about 2025? While no journey is without it’s bumps, 2025 does feel like it will come with a tailwind, not a headwind. It will take a few months for the belts to start loosening and for my focus to switch from resilience back to growth, but here’s to the promise of brighter days and, dare I say, a little more comfort in the year to come.
Genetic tech – economic choice is for farmers
In my view ...
Dr William Rolleston
Rolleston is the chairman of the Life Sciences Network Inc and Genomics Aotearoa and is a past president of Federated Farmers
THERE have been claims by Organics Aotearoa New Zealand and other groups that the change in the regulation of genetic technologies will cost the country billions of dollars.
Here is what they don’t tell you. Genetic technologies are already a part of our lives in New Zealand.
Insulin, used by hundreds of thousands of diabetics, has been genetically modified since the 1980s, the COVID vaccine we all took (while not genetically modified itself or genetically modifying us) used GM in its production, many of our cheeses are made with GM rennet, GM feed is used in the production of our chicken, eggs, milk and meat and we have had GM petunias growing in our environment since 2014.
New cancer therapies use GM drugs or directly genetically modify the cells in our bodies to fight the worst of all diseases. People will be surprised to know that there have been nine releases of genetically modified organisms (GMOs) approved by the Environmental Protection Authority.
It is a myth or a lie to contend that New Zealand is GM-free.
The rule changes are designed to bring us up to speed with the rest of the world and give our scientists the tools they need to produce, in agriculture, better solutions for farmers.
In particular gene editing, a form of precision breeding with outcomes indistinguishable to conventional breeding, is being deregulated around the world, including by our main trading partners.
These technologies will come to our shores even if we continue to ban them.
The economic argument against genetic technologies, including precision breeding, is that its use in the environment will irreparably and significantly damage our reputation.
SPEED: The genetic rule changes are designed to bring us up to speed with the rest of the world and give our scientists the tools they need to produce, in agriculture, better solutions for farmers, says Dr William Rolleston.
The “evidence” is based on consumer opinion or taking GM free premiums for particular products and extrapolating them to our entire food exports.
This argument fails on many counts and is contrary to what we see in reality.
Studies looking at actual consumer and buyer behaviour show that purchasing decisions are largely based on look, performance and price.
Secondary attributes such as production method and environmental impact have a lesser influence.
In other words, opinion surveys elicit what people think as citizens, not what they do as consumers.
If we look around the world there are, however, both discounts and premiums for GM food.
Bangladesh farmers, for example, receive a 30% price premium for GM eggplant because they use less spray and the fruit has fewer blemishes.
The famous Impossible Burger sold for a 30-40% premium in Western markets while touting itself as proudly genetically modified because it is perceived as being better for the planet.
The difference between “GM country freedom” and “GM product freedom” is often confused or deliberately conflated.
They are not the same.
A 2019 report, commissioned by the South Australia government before they lifted their GM food moratorium, showed that, while GM-free canola sold at a premium, the premium was no more than GM-free canola from New South Wales where GM canola is grown.
The report went on to say that the cost of the GM moratorium to South Australian canola farmers was $33 million.
Last year was a record for Australian grain sales to Europe and a recent Beef and Lamb report states that New Zealand’s lamb premium over Australia has eroded to nothing in the Chinese market.
All this while Australia grows more than 500,000 hectares of GM crop under the very same GM regulations New Zealand is planning to adopt.
New Zealand receives a premium for some of its products and we can be proud of that, but given the Australian experience
it is unlikely that the premium is attributable to a perceived GM free country status.
New Zealand is not proposing a free for all and even if it did, not all products would become genetically modified.
If you run the argument that any further release of GM organisms will cost us billions, you have to make that argument for the release of a sterile pine to address the wilding pine problem, for gene drive in our quest for predator free as much as you would for a transgenic (GM) kiwifruit.
And while the latter is extremely unlikely, even the perceived effect on the kiwifruit market, for example, would be very different.
Everywhere farmers have had the choice, they have rapidly taken up GM technologies, seeing them as beneficial for their farms, their families and their businesses.
Uptake has been over 90% in many cases.
This has not stopped farmers remaining in the GM-free market if they have wanted to. Coexistence is functioning in those countries which use GM.
Generalisations at the national level are not helpful and farmers are in the best position to make the choice just as they do in Australia.
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More certain than our advertising income every week, is that print advertising revenues overall are declining, and have been for some time. Print advertising budgets have largely migrated to the digital platforms, with most of that captured by the offshore giants. All print media has suffered.
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Jason Herrick, sharemilking 1000 cows at Mossburn, Northern Southland.
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Sector Focus
AI tech a game-changer for dairy farmer
Gerald Piddock TECHNOLOGY Dairy
EMBRACING artificial intelligence as an onfarm decision-making tool has given Matthew Zonderop what he calls “a PhD in my pocket”.
The 50:50 sharemilker has been using the technology this season to help guide his decision making for the 370 cows he farms at Te Poi near Matamata.
His interest in AI began after he started experimenting with ChatGPT and AI technology earlier this year, he said, speaking at a field day on his farm organised by the Smaller Milk and Supply Herds group.
A couple of years ago he started developing spreadsheets on his herd and, coming into this season, he made an error in his coding.
On a whim, he copied and pasted the bad coding into ChatGPT. It fixed the coding and he was able to re-enter it into his spreadsheet, saving him significant time.
“I thought, that’s pretty cool and then I thought, hang on a minute, if I load up my spreadsheet and all of my data, what will it do?”
He did that, and it was a lightbulb moment for him.
“The floodgate opened to the world of AI and there was no stopping me.”
It led him to establish Perfect Cow Breeding Solutions, where he uses the technology to help farmers achieve the best genetic improvements in their herd.
Through LIC and its MINDA software, Zonderop genomically tests his herd and uses that data to pick a bull team based on the traits he wants to correct or enhance in the herd.
“I can go to anything from leg or front teat placement, rump width to somatic cell counts – you name it. Anything you can think of on a trait on a cow, I can pinpoint and target a bull to match that cow.”
Using the list of all LIC bulls available, he ranked them by the traits he wanted to focus on, and reduced the list to 16.
The majority of his younger
herd has been nominated to a bull whose semen will correct or enhance these traits. He has also selected the semen for a few of his older cows the same way.
FIXED: On a whim, Matthew Zonderop copied and pasted error coding into ChatGPT. It fixed the coding and he was able to re-enter it into his spreadsheet, saving him significant time.
The expected calf progeny from the herd this season will be a BW lift of up to 444. For the younger herd that BW lift is expected to be 488.
The technology still requires a human touch, with Zonderop having a system in place to validate the data.
He can provide the same selections for other farmers as long as the bulls are in New Zealand.
He has also integrated the technology into the data he receives from smaXtec boluses, which attach to a cow’s rumen and monitor the cow’s health, updating the information every hour.
He is using the boluses for the first time this season. So far, he has put the boluses into his younger cow mob and was so impressed with the results that he
will bolus the entire herd once his mob of older cows have had their pregnancy diagnosis.
In the short time the boluses have been active, he has picked up temperature alerts for mastitis and gut rumination, calving alerts and issues that otherwise would have gone by unnoticed.
The floodgate opened to the world of AI and there was no stopping me.
Matthew Zonderop Te Poi
It has also been a game changer for “silent heat” detection (ovulating cows that show no visible signs of being in heat).
“In the first week of AB we picked up three silent heats that there’s no way we would have picked up.
“It will change the way we farm going forward, particularly going into mating next season,” he said.
GAME-CHANGER: Te Poi sharemilker
Matthew Zonderop uses ChatGPT as an on-farm decisionmaking tool.
He also experimented by putting his soil test results into ChatGPT, asking it for a fertiliser recommendation. The results were identical to what he had been told by one of the fertiliser co-operatives.
“You can use it to question what they are supplying you as a service,” he said.
Looking ahead, Zonderop will keep using AI.
“I can do everything now in AI. All of our grazing plans and feed budgeting is done through AI, the mating plan for next year will be done by AI.”
He sees it having big implications for the farm service industries as more farmers adopt the technology.
These industries will have to work harder to compete with the knowledge he has available on his phone.
“I’ve got a PhD in my pocket. There’s nothing stopping me from doing what you can do with the right prompt.”
Leonie Guiney applauds Fonterra direction
Gerald Piddock PEOPLE Fonterra
FONTERRA is in a good position both from a financial and governance perspective, having learnt from its previous failures, retiring Fonterra director Leonie Guiney says.
“I’ll miss the privilege of contributing to steering something that was so important to outcomes for New Zealand farmers,” Guiney said.
“I’ve only had that privilege because you the farmers ... have backed me and trusted my intent all the way, so thank you from the bottom of my heart.”
The Fairlie farmer has served the maximum nine-year term allowable on Fonterra’s board and stepped down along with
independent director Clinton Dines at the co-operative’s annual meeting in New Plymouth.
They are not being replaced as Fonterra’s board reduces from 11 to nine people.
Chair Peter McBride thanked Guiney, saying the board “deeply” valued her contribution.
Guiney told the co-operative’s annual meeting that “it’s imperative that Fonterra has learnt where we went wrong in the past”.
“A focus on the appearance of value at the expense of actual value was at the root of a lot of our poor past outcomes.”
Added to that was a strategy that was misaligned to Fonterra’s core advantage, and the absence of risk-adjusted thinking in a lot of its investments made for some extremely expensive errors.
“Most businesses will make some poor decisions; good governance
owns its own errors in a timely manner and that’s what minimises further damage to shareholders’ equity. Fonterra did not do that in the past. It was a governance failure we cannot repeat.”
She said the language CEO Miles Hurrell is using reassures her that he has a mature understanding of where Fonterra can extract value.
The balance sheet is better aligned to the exposure it will always have, and its risk appetite and strategy are better aligned with Fonterra’s strengths.
“The combination of listening while leading, financial discipline and strategic clarity has changed Fonterra.”
Guiney flagged one risk to the board and management – while recent performance has been very good, success is often the hardest thing to manage and Fonterra
Leonie Guiney has retired from Fonterra’s board after nine years as a director.
risks running aground if it starts considering itself individually responsible for good outcomes. She encouraged the next generation of farmers to step up to lead in the future. Fonterra depends on business-savvy suppliers with skin in the game who are prepared to determine their own future.
New Zealand’s climate along with its sharemilking system and a co-operative that gives it an advantage in food service and ingredients innovation mean that Guiney is not worried about Fonterra’s future.
“I’m personally so very happy to be a New Zealand dairy farmer,” she said.
Milk chillers save money, reduce emissions
Neal Wallace TECHNOLOGY Dairy
A YEAR after launching, about 50 Fonterra suppliers have installed Coolcare milk chilling units, avoiding the use of about 5800 tonnes of carbon equivalent cooling gas.
New Zealand-owned and operated milk refrigeration company Coolcare has collaborated with Fonterra, Purpose Capital, the New Zealand Green Investment Finance and Cool-Safe in what is known as the pay as you save (PAUS) programme.
This enables Fonterra farmers to lease new milk chilling systems that are cost-effective to run and use fourth generation refrigerant gases that have about 80% less
carbon dioxide equivalent than older systems.
Joe and Becky Laming from Altavady Group near Oamaru were among the first farmers to sign up to the PAUS Programme and recommend it to others.
“Over 30 days in September
PLEASED: Becky and Joe Laming of Altavady Group near Oamaru say the milk chilling unit is saving them money.
2024, it saved us $972 in dairy shed electricity and hot water generation compared to our previous system,” Joe Laming said.
Timaru-based Bruce Murphy of Murphy Farms is another early adopter saying one of his old units was dated and Coolcare has
proven an excellent replacement.
“What really appealed to me was the fact that the lease is seven years. Technology is moving at a fast rate and in the end, we will have the ability to replace that unit with current technology.”
Murphy Farms is planning to convert all six of its farms to the PAUS Programme.
Fonterra and Nestle’s Net Zero Pilot Dairy Farm in Taranaki also has one of the units.
Anne Douglas, group director for Fonterra Farm Source, says the programme offers farmers a quality milk chilling option that’s not only cost effective and offers hassle free maintenance, but it reduces emissions and provides electricity savings.
“As more farmers take part, the positive impact on both the industry and the environment
What really appealed to me was the fact that the lease is seven years. Technology is moving at a fast rate and in the end, we will have the ability to replace that unit with current technology.
Bruce Murphy Murphy Farms
will continue to grow,” she says. Coolcare Chief Executive Allan Steele says the first year of the partnership has been laying foundations such as support for participating farmers.
The company is now starting to scale up production of units from its Hamilton facility.
Where farming meets health and beauty
EDEN Ritchie, or “countrymummyof2” as she’s known online, is no stranger to a challenge. After navigating an often difficult childhood and being unsure about what career path might be for her, she eventually found her footing in the dairy industry and hasn’t looked back since – and now she’s tackling a whole new challenge.
“When I was younger I thought university might have been my path, but I quickly deduced that the classroom environment just didn’t work for me. I didn’t have a lot of stability in my life, and at 17 years old farming to me seemed like the epitome of stability and security.”
When she landed her first farming job, in 2014, as a calf rearer and farm assistant, she threw herself into the learning process, completing a year-long agricultural course, and soaked up everything the industry had to offer.
In 2016 she entered the Dairy
Industry Awards for Northland in the dairy trainee category and took out first place. It was a huge accomplishment early on in her career. It’s also where she met her husband, Salem.
Today, the couple have two children, Cullen, 5, and Lily, 4, and Eden has been growing her own beauty business Lashes and Beauty by Eden, which she ran out of the sleepout on the farm. This season they made the big move from their contract-milking job in Culverden all the way down to Southland to take up a new contract-milking position in Southland
“I’ve found the move a mixture of exciting and challenging. We’ve been so fortunate to be welcomed into the community. Salem plays rugby, Cullen has got into ripper rugby and both kids do swim lessons, so that has helped with meeting people.”
Eden has also been forging a growing online community. A creator on both Instagram and TikTok, she shares her day-to-day life as a mum, farmer, business owner and fitness enthusiast.
“I started social media as a bit of a way to connect with people. It’s
made making friends a lot easier because I’m shy and that side of things doesn’t always come easy to me. There are some negative sides to it as well which can be hard at times, but for the most part, it’s been amazing.”
The move meant Eden had to uproot her well-supported business, establish a new client base and juggle work and children now that they don’t have many childcare options.
“I’ve been blessed to have had a whole bunch of lovely ladies visit and get beauty treatments and
support my business down here. The biggest struggle has been managing my time. In Culverden we had pre-school five days a week but now the kids are home with me, so it’s a juggle fitting in doing my calves, the gym and my business without stressing. Like many families, we don’t have any family support but we do have some amazing friends who pitch in.”
Despite the challenges of getting established in a new region, Eden loves rural life and the freedom it brings.
“I love that we can spend a whole day together as a family. I love tinkering around the house and garden and just having the time and space to diversify and create new ideas.
“We’re in the early stages of launching a pre-workout supplement, which is exciting because fitness is a huge part of my life. Farming gave me the stability in life that I needed and really gave me a leg up.
“I love that our children can grow up on the land, surrounded by animals and enjoy all this too.”
In Normandy, a helping hand over the farm gate
THE foresight of their milk processor, Danone, gave Sébastien and Aline Catoir a head start on improving their carbon footprint on their dairy farm in Conteville, France.
By pulling a few levers, they have improved from 0.84kg of carbon dioxide equivalent per litre of milk (kgCO2/L) to 0.78 kgCO2/L.
“Danone have been a forerunner of this theme. They started the process with us in 2017 to do a stocktake of where our carbon footprint was and how to improve it,” Sébastien said.
“There were three areas we identified we could improve initially and others we have also worked on that have helped us reduce our emissions.”
With support from Danone and others in their network, they tackled things like reducing the
age that their heifers first calve. It had been up to 32 months and is currently 27 months heading closer to 24 eventually.
Another area they improved was installing a pre-cooling unit, which has reduced their energy consumption. The milk enters the system at 37degC and the precooler brings it down to 27degC, which saves activating the cooling unit that would use more energy to cool the 10 degrees.
The third key area they focused on was their race system to allow easier grazing.
The farm is 120 hectares with 33ha of pasture and only 10ha of it dedicated to the dairy cows for grazing.
The cows have year-round access to the barn, but during the warmer months, they graze on pasture, usually from mid-April to the end of October, extending to midNovember if weather permits.
“Grazing has reduced our carbon footprint as we buy less feed and we don’t have to harvest the grass
as the cows are eating it directly,” Sébastien said.
“We also have less effluent in the barn to deal with when they’re on the pasture.”
They are milking 60 Prim’Holstein cows, which produce 610,000 litres of milk per year, roughly 10,000l per cow. They are working to reduce inputs and strive for greater self-sufficiency by using milk to feed the calves and growing a variety of crops.
Given the limited 10ha of pasture, they continue to receive supplementary feed throughout the year.
“The system we’ve implemented allows us to have higher production despite buying less feed.”
Their management plan from Danone also suggested they plant more hedges, to provide shade and a windbreak and build biodiversity.
“We planted 630 meters of additional hedges over the 6km that the farm already had, which saves us 12 tonnes of carbon dioxide equivalent.”
Alongside their carbon footprint, the farm is heavily focused on animal health and biosecurity. Blue tongue is becoming a big problem in Europe as, with changes to the climate impacting the lifespan of the midges that transmit the disease, more farmers are battling it.
The Catoirs have started vaccinating for blue tongue and respiratory diseases in their calves, prompted by the humid and cold weather in their region that heightens the risk of illness.
They have also made a big effort with mastitis as they were experiencing a clinical case per cow on average each year. This has dropped 50% since beginning a vaccination programme. A recent purchase of a Mastatest machine helps determine whether
There were three areas we identified we could improve initially and others we have also worked on.
Sébastien Catoir Conteville, Normandy
antibiotics are needed and what type could be effective when a cow does get mastitis.
Blanket dry cow therapy is under the spotlight in France so they are trying to reduce their usage and using more internal teat sealant.
“Our somatic cell count is usually around 100-150,000 and we try to maintain it at that level.”
The farmers around Sébastien’s farm typically work around 70 hours per week and their income fluctuates.
Some seasons the farm barely makes a profit; in others they may only make €40,000 (roughly NZ$80,0000) with €30,000 to €35,000 being government subsidies.
Most of the farms in France have diverse business models, deriving income from more than just milk production. For example, arable farming, solar panel power production and more recently carbon credits.
Despite the challenges, Sébastien and Aline enjoy their lifestyle and working with animals. And they’ll continue to streamline their system and improve efficiencies.
DEFENCE: Preparing cows for the risks of facial eczema through effective mineral supplementation is one of the best defences before spore counts rise.
Photo: Supplied
Using minerals to manage facial eczema in dairy cow herds
Sector perspective
AS SUMMER approaches, Kiwi dairy farmers face the challenge of managing facial eczema, which severely impacts cow health and production.
FE affects more than just the skin, and if left untreated can lead to serious liver damage, reduced milk yield, poor reproductive performance, or even death. Preparing cows for the risks of FE through effective mineral supplementation is one of the best defences farmers can mount before spore counts rise.
Effects of facial eczema on cows
• Facial eczema is triggered by a toxin (sporidesmin) produced by spores on pasture during warm, humid conditions. Once ingested, the toxin damages liver tissue and impairs the cows’ ability to process chlorophyll from grass.
• Symptoms include photosensitivity, skin lesions and ultimately total liver failure. FE significantly stresses cows, affecting feed intake, milk production and fertility. Preventing FE with mineral support is crucial, as damaged livers and weakened immunity make cows more susceptible to further health issues.
Key minerals for managing facial eczema
• Maintaining an adequate mineral balance can help cows cope with the stress of facial eczema and improve their resilience to environmental challenges.
• Zinc is one of the most essential minerals in managing FE, as it protects cows against sporidesmin toxicity. Supplementing zinc, either through water or feed, reduces liver damage and minimises the
impact of toxins. To be effective, zinc supplementation should start before spore counts rise, allowing cows to build up protective levels.
• Selenium protects cows from cellular damage, supports immune health, and reduces oxidative stress. Selenium deficiency exacerbates FE symptoms, as a healthy liver is essential for cows to process and clear sporidesmin. Because New Zealand soils are generally low in selenium, supplementation is key. Administering selenium well ahead of high-risk months helps cows build up liver reserves and bolsters their resilience against FE.
• Magnesium is key to overall cow health, aiding muscle and nerve function, and is especially important under stress. While magnesium does not directly reduce the effects of FE, adequate levels support liver health and help cows recover from the impact of toxins. Pasture alone may not provide sufficient magnesium, so supplementing before the FE season gives cows the support they need.
• Other beneficial additives in addition to minerals can help reduce the impact of FE and support overall cow health. They include:
Toxin binders: Using a toxin binder can limit the absorption of harmful toxins in pasture. While toxin binders do not replace zinc supplementation, they add an extra layer of protection, especially under high spore loads.
Seaweed extract and live yeast: These additives support gut health and immune function, helping cows maintain optimal rumen function under stress. Live yeast aids in stabilising rumen pH and improving digestion, which is particularly valuable as cows struggle to maintain regular feed intake during the FE season.
Chromium propionate: Chromium can help reduce stress responses in cows, supporting immune function and energy balance. Including it in mineral mixes can improve resilience during the FE challenges. Managing facial eczema is an ongoing challenge for New Zealand dairy farmers, and success lies in preparation. Mineral supplementation ahead of the risk period strengthens cows’ defences against sporidesmin and supports overall health, milk production, and reproduction. Starting early with the right mix of minerals and additives gives dairy herds the best chance to withstand the season, minimising production losses and keeping cows healthy and productive.
Holiday cheer on the cards for farmers
Sector perspective
NOVEMBER delivered promising results for farmers in the dairy industry.
Milk production in New Zealand has continued to grow year-onyear (YoY), and with demand holding steady, prices have strengthened. This has been reflected in both the Global Dairy Trade (GDT) auction and the SGXNZX futures market, where the milk price crossed the significant $10 mark.
For October 2024, New Zealand
milk production increased by 2.1% YoY on a tonnage basis and 2.8% on a milksolids basis. Seasonto-date figures now show gains of 4.2% and 5.0% on tonnage and milksolids, respectively.
Our NZX Milk Production Predictor anticipates continued growth, though at a slowing rate, with midpoint YoY increases of 1.4% for November, 1.5% for December, and 0.4% for January. Growth is expected to ease further and eventually decline gradually as the season progresses.
Looking at other key regions, only Australia and the United States recorded YoY growth in October milk production, at 1.4% and 0.2%, respectively.
Meanwhile, Argentina and Uruguay saw YoY declines of 0.4% and 1.0%, respectively. Europe reported a 0.8% YoY decrease in September milk production, and China experienced a more substantial drop of 6.9%. These supply constraints in several key regions have played a role in supporting higher prices for New Zealand dairy products.
Demand at GDT auctions remained robust in November, driving the Price Index higher. Both whole milk powder (WMP) and skim milk powder (SMP) saw gains across Events and Pulse auctions in the month. Event 367 delivered a 4.8% Price Index
WHAT IS MILK FEVER
COSTING YOUR FARM?
increase, while Event 368 followed with a 1.9% rise.
Fat groups also performed strongly, though cheese prices softened in Event 368. The first GDT event of December (Event 369) showed mixed results, with WMP and lactose recording strong gains of 4.1% and 7.7%, respectively, lifting the overall GDT Index by 1.2% to an average price of $4193 USD/MT, while all of the other products saw decreases in their respective index. Encouragingly, demand from North Asia remains firm, underpinning these results.
This steady demand, coupled with tight supply in other regions, has driven prices for New Zealand products higher. The SGX-NZX market reflects this, with futures milk prices for MKP25 contracts surpassing $10 to reach $10.10 as of November 29.
These stronger prices are translating into higher export volumes and values for New Zealand. October export data shows total dairy volumes increased by 6.3% YoY to 331,866 MT, bringing the year-to-date (YTD) volume figure up by 1.0%.
From a value perspective, October dairy exports surged 16.7% YoY, although the YTD value remains down by 2.0%.
The increase in commodity prices has been a key driver of higher export values, and we
DRIVER: The increase in commodity prices has been a key driver of higher export values, and it is anticipated that total dairy exports will finish the year ahead of last year’s figures despite a slower start.
anticipate that total dairy exports will finish the year ahead of last year’s figures despite a slower start. Most other key regions have also seen growth in dairy exports, with Australia and the United States reporting YoY increases of 22.9% and 9.8%, respectively, in September. Argentina posted a 25.0% YoY increase in October exports, while Europe reported a decline of 6.6% YoY for its September figures.
recent tender secured 30,000 MT of WMP (primarily from New Zealand) and 15,000 MT of SMP (from Poland) for delivery between February and May.
New Zealand is well-positioned to meet this sustained demand as the peak of the season winds down.
Looking ahead, demand for dairy products from Asia, the Middle East, and Africa remains a crucial factor. For example, Algeria’s
Milk production remains solid, and higher milk prices are offering better margins for farmers. With a breakeven price estimated at $8.15, the current average farmgate price is providing muchneeded relief after a challenging start to the year.
Key dairy conferences agree to delegate swap
AN EXCHANGE of delegates has been arranged between two key annual dairy conferences held in New Zealand and Australia.
In return a delegate from the Australian event will attend the annual SIDE event, being held in Timaru next April.
The all-expenses paid exchange will become an annual feature of the two events, says Glenn Jones, the chair of the SIDE governance group.
“This partnership isn’t just about exchanging delegates, it’s about sharing ideas that will shape the future of dairy farming across both nations,” he says.
Someone who has attended a South Island Dairy Event (SIDE) conference in the last three years, can apply for an allexpenses paid trip to attend the Australian Dairy Conference (ADC) on the Gold Coast next February.
The ADC attracts thousands of people each February and rotates between Victoria and other Australian states.
The SIDE governance group will pick the successful delegate.
The initiative has been instigated by past chairman Andrew Slater, alongside Jones.
Jones says the initiative aligns with SIDE’s overarching mission of equipping farmers with tools to adapt and thrive amidst evolving challenges.
Latest dairy data shows nominal lift in cow numbers
Staff reporter NEWS Markets
TOTAL cow numbers across New Zealand have had a marginal 0.5% lift from 4.67 million to 4.7m for the 202223 season, according to the latest annual New Zealand Dairy Statistics.
The annual report, which is collated by DairyNZ and LIC, showed that milksolids per cow has also lifted 6kg, up to 400kg MS/cow from the five-year average of 394kg MS/cow.
Until 2021, the average herd size had increased consistently, but in the past three years appears to have plateaued around a midpoint of 445 cows per herd.
Total milk production across all companies was 20.5 billion litres, containing 1.88b kg MS, a 0.5% increase in kilograms of milksolids.
DairyNZ chief executive Campbell Parker said the dairy sector has undergone significant structural change in the past decade but throughout this period production levels have remained stable, bringing much needed export revenue into the New Zealand economy.
“We have seen our dairy herd numbers reduce by 12% over the last decade, and a 5% decrease in total number of milking cows.
“Despite this, total milksolids processed have remained relatively stable, emphasising the resilience of our farmers, and their focus on ongoing productivity improvement.”
The increase in total milksolids production in the 2023-24 season was driven by a combination of
the slight increase in cow numbers and favourable weather conditions, he said.
“Milksolids per cow are once again near record levels, which is a result of farmers dedication, technology uptake, and the application of science and insights driving better on-farm decisions and outcomes.”
Owner-operators remain the largest type of dairy farm operating structures, comprising 55% of the country’s 10,485 dairy herds.
Sharemilking is the second largest operating structure, accounting for 29% of herds across all types of sharemilkers with 16.9% of those sharemilkers being 50:50.
Contract milkers are third, comprising 14.5% of operating structures.
The report showed a slight decrease in the percentage of cows herd tested on the previous season, at 77.1% (3.62 million cows), while artificial breeding remained relatively stable, with a slight decrease to 81.1% of cows (3.81 million cows).
LIC chief executive David Chin said these were not unexpected, following a year of tight financial conditions on farm. As the economic outlook improves, he was optimistic these numbers will rebound in the coming season.
The average dairy cooperative payout (including dividends) from Fonterra and Tatua was $8.90/kg MS, an increase from $8.76/kg MS in the previous season.
When adjusted for inflation, the 2023-24 payout was $0.35 below the five-year inflation-adjusted average of $9.25/kg MS.
big emissions reductions for
farmers as well as an attractive end use for nonreplacement dairybeef cattle, a new AgResearch study has found.
Dairy-beef offers potential for notable emissions savings
Gerald Piddock NEWS Emissions
ANEW study from AgResearch has found that farming dairy-beef cattle could provide reductions in greenhouse gas emissions of up to 48%.
The Life Cycle Assessment analysis showed using fast-finishing systems with dairy-beef animals results in a carbon footprint that is 32-48% lower than the average for traditional beef systems in New Zealand.
The work by AgResearch scientists was supported by the Bioresource Processing Alliance and in partnership with organisations such as Fonterra and Alps 2 Ocean Foods.
Farm data from the beef and dairy industries was used in the analysis, which was based on kilograms of carbon dioxide equivalent emissions per kilogram of finished liveweight of the animals.
Scenarios were analysed for dairybeef steers processed between 10 and 18 months of age and include emissions from animal production, input generation, transportation, and background processes.
“There are many issues at play in determining those emissions and the differences between the dairy and beef animals,” AgResearch senior scientist Andre Mazzetto said.
“These include how emissions
are allocated between milk and liveweight, and issues such as growth rates, feed efficiency and the finishing period/time to slaughter of the animals.”
It pointed to tangible ways that farmers can reduce the carbon footprint of their beef herds.
“Emissions reductions can be achieved simply by integrating dairy-beef animals into the herd, but the scope of this reduction can be significantly increased with fast-finishing beef systems. There would be few tools or management strategies available which can have such significant climate impact.”
Emissions reductions can be achieved simply by integrating dairy-beef animals into the herd, but the scope of this reduction can be significantly increased with fast-finishing beef systems.
Andre Mazzetto AgResearch
Dairy farm emissions data used in the study were sourced from the International Dairy Federation and 85% of these emissions are allocated to milk production and the remainder to meat production.
That 15% gives dairy beef cattle one advantage, the other advantage
is that after 18 months, the animal’s growth slows and more of its energy goes to maintenance, he said.
“There’s a point in the animal where it grows more slowly so there’s more emissions from maintaining it and they’re not growing too much weight.
“What the study is saying is that there is a sweet spot where you can finish the animal where the growth rate is still high and you can save emissions as well, instead of keeping the animal for a long time and it’s not growing too much.”
The faster the animal is finished, the lower the footprint, he said.
Sourcing calves from the dairy industry presents an opportunity for the beef industry to significantly reduce its emissions, as well as a providing an alternative use for calves from the dairy industry, he said.
Fonterra’s director of sustainability Charlotte Rutherford said Fonterra’s focus in this space is on creating more options for dairy-beef calves.
“We see the opportunity to integrate these calves into the red meat sector as a major opportunity for NZ ag.
“These results show that with the right genetics, care and farming systems, dairy-beef animals offer the opportunity to reduce carbon emissions, contributing to the long-term sustainability of our industry.”
What’s new f NZ Animal Ev
or aluation?
At NZ Animal Evaluation, a Dair yNZ subsidiar y, our aim is to su or t the sec tor to im rove New h e
pp p
Zealand’s rate of genetic gain in dair y so we can remain internationally competitive and increase farm profitabilit y and sustainabilit y
Genetic gain has been a key driver of success in the New Zealand dair y sec tor to date, and we want to see that continue with a focus on working together with our industr y groups to benefit the sec tor
Par t of our work is providing Animal Evaluation updates, and this week saw three impor tant updates that may lead to some re -ranking of bull s and cows
Economic Values update:
Fir stly, the Economic Values (E Vs) that form a key par t of the BW calculation have been updated This is a routine, annual event, that
elps to ensure the E Vs reflec t the latest farm conomic fac tor s We believe that up -to - date information and data is a key par t of ensuring that, as a sec tor, we continue to improve our rate of genetic gain
This year we have seen some modest changes in the E Vs, largely due to methodology changes which were introduced last year to reduce unnecessar y volatilit y for annual E V updates year on year
Breeding Value
This month sees the l Difficult (CD) and Ge Andrew Fear NZ Animal Evaluation manager
The most significant E V change is due to the reintroduc tion of the capacit y charge by Fonterra resulting in the E V for milk volume increasing by 16% The other E Vs experienced similar adjustments to last year with changes var ying bet ween 0 -9%
Even with these changes, we expec t lit tle to no re -ranking of bull s due to the updates to E Vs this year
NEXT GENERATION IMPROVEMENTS.
g o NZ Animal Evaluation, ently run through Company All other traits 1 officially transferred t and will be independ provider, The Helical were migrated in 202 changes: ast t wo traits, Calving station Len th (GL),
With this final migrat with key research pa Helical Company, ha
ion, NZ Animal Evaluation, r tner s AbacusBio and The ve made updates to the evaluation for both BVs The evaluations take a stric ter approach to data filtering, including more precise classifications of breeds into shor t, medium, and long GL categories
While improvements were not a goal of this work , they are a welcome result for the CD BVs Impor tantly, the GL model maintains its accurac y
What do these updates mean for farmers?
These updates, now all independently managed by NZ Animal Evaluation, mean you can have greater confidence in your breeding decisions going for ward, to suppor t a more profitable herd
O verall, the new E Vs reflec t the latest farm economic fac tor s, the BV updates maintain accurac y in GL and improved CD predic tions
O n average, across all breeds, BW has increased by $8 40, so you may notice a small increase in your herd’s BW, depending on the breeds you are currently milking
However, the changes to CD won’t impac t your herd’s BW as CD is not one of the traits that make up BW, but you are likely to notice significant changes to the CD BVs of current bull s
You can read more detail about these changes, what they mean, and any fur ther ac tions you should consider at dair ynz .co.nz/animalevaluation
Lincoln prof gonged for animal research
DEDICATION to minimising the environmental impact of dairy farming has earned Te Whare Wānaka o Aoraki Lincoln University’s Associate Professor Racheal Bryant a top New Zealand Society of Animal Production award.
The McMeekan Memorial Award is in honour of Dr Campbell McMeekan, past president of the New Zealand Society of Animal Production (NZSAP) and a leader in animal production research in NZ and the world.
Bryant teaches ruminant nutrition and pasture agronomy. Through her research, she contributes to the body of work from Lincoln University focusing on practical solutions for improving sustainable practices on farms, particularly in reducing nitrate leaching.
“Modelling estimates the impact of technology adoption and management changes on nitrate leaching in pastoral systems, while field research builds confidence in model predictions,” said Bryant.
“By conducting farm systems research and demonstration we can support farmers to adopt changes. Lincoln provides these opportunities, allowing industry stakeholders to be involved through collaborations. By doing so, we can make real change to our farming community.”
Reflecting on her career to date, Bryant said she is most proud of the collaborative relationships she has built throughout her career
FOCUS: Through her research, Racheal Bryant contributes to the body of work from Lincoln University focusing on practical solutions for improving sustainable practices on farms, particularly in reducing nitrate leaching.
environmental impact is closely watched by society.
“My team’s research on cow nutrition and the development of monitoring tools such as the PEETER urine sensor can provide information which supports the future sustainability of farming. Through this research, we are finding ways to reduce nitrate leaching into the soil.”
committee for the Australasian Dairy Science Symposium, which provides a platform to showcase novel research in dairy science.
and of the students she supervises and mentors, without whom, she said, the achievements would not be possible.
To discover new ways of mitigating nitrate losses in dairy systems, Bryant’s research formed nutritional management strategies focusing on forages and herbs.
“Our agriculture sector in New Zealand is vital for our economy, communities and livelihoods. For intensive farming like dairy, its
Alongside PhD student Christopher Mangwe and developers Dr Craig Bunt, Neil Smith and Nigel Beale, Bryant developed the PEETER dairy cow urine sensor. One of only three sensors of this type in New Zealand, it measures the urination behaviour of dairy cows, providing important information on the role of forages in urinary nitrogen excretion.
The latest findings were published in October 2024 in the journal article “Validation of a remote sampling sensor for measuring urine volume and nitrogen concentration in grazing dairy cattle” published in Animals. Bryant is engaged in numerous extension activities that contribute to the impact of research in dairy science. She is a long-standing member of the organising
By conducting farm systems research and demonstration we can support farmers to adopt changes.
Racheal Bryant Lincoln University
In 2018, Bryant established the Dairy Futures Living Laboratory at Lincoln University’s Research Dairy Farm to encourage collaboration with industry and allow students to see science being implemented on a working farm first-hand.
“The Dairy Futures Living Laboratory research projects include efficient fertiliser use, calf rearing and low nitrogen input farm systems. With the support from various industry stakeholders, we have had huge success. We have shown that farmers can reduce nitrogen losses while minimising the impact on production and profit.”
Class of 2024 dairy management trainees celebrated
Annette Scott NEWS Education
AYEAR of hard work and dedication has been celebrated for eight graduates of the 2024 Grassroots Dairy Management programme.
The graduates were recognised by their employers, programme presenters, supporters and sponsors at the graduation celebration in Ashburton.
The graduates also presented a couple of awards acknowledging Henry and Ashlea Norris of Grovan Pastures as Best Employers and Mark Grenside as the Best Presenter of the year, as chosen by the graduates.
Graduate Thomas Coates spoke
of the learnings and connections he will take away from his time during the programme and the attendees also heard from Sam and Jo Spencer-Bower about balancing the demands running a family farming business while opening their farm gates to the community.
Grassroots dairy management chair Kim Grayling said in just its third year, the programme has grown a further eight university graduates and is set to mentor another eight graduates to progress through the dairy industry in 2025.
“This is achieved by recruiting ambitious and talented graduates and matching them to on-farm jobs with supportive farmers.”
From February to November the graduates attend 30 modules
presented by up to 70 topic experts covering areas such as people leadership, individual financial growth, strategy, spring pasture
management, reproduction and irrigation. Grayling said the biggest benefit of the programme is the wealth
of relationships and a networking community that the graduates, employers and presenters alike can utilise throughout their career.
“With the support of gold sponsor Rabobank and partner DairyNZ, the organising committee of seven farmers has enjoyed rising to the challenge of keeping the programme engaging and fresh whilst witnessing the personal growth of participants over the course of the year.”
The NZ dairy industry needs young, motivated individuals to lead farms and the Canterburybased committee hopes the Grassroots Dairy Management Graduate Programme will play a key role in achieving this, and further ensure the longevity and success of the industry, Grayling said.
FEDERATED FARMERS
Govt stops march of pines across farmland
The Government’s move to stop carbon credits being earned on productive farmland is welcome news, but changes must also be made to the way we set our international emissions targets, Federated Farmers says.
“This is great news from the Government that it will be taking steps to stop the relentless march of pine trees across our productive farmland,” says forestry spokesperson Toby Williams.
“Federated Farmers made rethinking News Zealand’s Emissions Trading Scheme (ETS) Forestry rules and climate targets one of our 12 key policy priorities in the lead-up to the last election.
“We’re really pleased – and farmers across the country will be too – that the Government is taking action today to address those concerns.
“Federated Farmers also welcome the cap on carbon farming on Class 6 land as a further step to safeguard against large-scale carbon farming.”
Agriculture and Forestry Minister Todd McClay and Climate Change Minister Simon Watts have announced clear rules to limit farm to forestry conversions entering the ETS.
“These changes deliver on a key election commitment to protect food production for farmers while providing ETS certainty for foresters,” McClay says.
“They also address the previous Government’s failed ETS policies that incentivised large-scale conversions, created ETS complexity, and undermined our world-best primary producers.”
Williams says New Zealand’s rural communities are bearing the brunt of misguided climate change targets, as over 200,000 hectares of productive sheep and beef land have been planted in carbon farming in the last five years alone.
Past governments have set targets that can be achieved only with huge levels of forestry planting, and that has put New Zealand in our current situation.
Toby Williams Federated Farmers forestry spokesperson
“Alarmingly, we’ve seen sheep numbers in New Zealand fall 4.3% in just the last 12 months, and this comes on the back of decades of reductions.
“We’re seeing schools close, rural bus runs stop, and local clubs fail as jobs are lost from communities across rural New Zealand.
“Planting our rural communities in pine trees simply doesn’t align with the Paris Agreement requirement
of achieving low-emission development in a way that doesn’t threaten food production.
“Today’s announcement brings New Zealand’s emissions trading policy more in line with the Paris Agreement, by removing the incentive to take high-quality land out of farming.”
Williams says, importantly, people can still plant forest on their lands if they wish, so there is no impact on property rights.
“However, the Government simply won’t incentivise this behaviour by allowing these forests to earn carbon credits through the Government’s ETS.
“We understand these changes are also not retrospective, so won’t affect existing forests.”
While today’s announcement addresses current ETS settings, the underlying issue remains the way our international climate targets continue to rely on huge levels of carbon farming to be achieved, Williams says.
“While it is a great announcement today, it’s also the case that the Government is currently doing a three-week consultation on what New Zealand’s next target should be under the Paris Agreement.
“Past governments have set targets that can be achieved only with huge levels of forestry planting, and that has put New Zealand in our current situation.”
Modelling released by the Climate Change Commission suggested that, to achieve a new proposed 2035 Paris Target, New Zealand would plant up to 850,000 more hectares of forestry, reduce dairy cows by up to 15%, and reduce sheep and beef stock by up to 24%.
“I think most people would agree that’s a recipe for total ruin for a huge number of rural communities,” Williams says.
“The numbers may add up on a spreadsheet in Wellington, but they make no sense to rural communities already suffering from falling stock numbers and encroaching carbon farming.
“To truly address the drivers of carbon farming, the Government
needs to distance itself from such plans and make sure the new Paris Target it’s set to announce can be achieved without swamping rural communities in carbon farming and threatening food production in the process.”
McClay says the Government’s announced farm to forestry changes will help to protect our most productive farmland while allowing room for sustainable forestry growth.
“Landowners will retain the ability to make smart land use decisions, enhancing both profitability and environmental outcomes,” he says. Legislation will be introduced in 2025 and is intended to enter into force from October 2025.
Farmers pondering succession, selling
If you’re thinking your children might take over the farm one day, start talking to them about that when they’re aged 13-15, Nuffield scholar Peter Templeton says.
That might seem early, but the fifth-generation Southland dairy farmer says that’s the consensus of farm succession advisors he’s talked to here and overseas.
“Conversations with sons and daughters when they’re in their early teens about what makes the family farm tick can help as they start to form their own thoughts about their future,” Templeton says.
“They might then choose school and university courses that are farming-complementary, and take up holiday jobs on the family farm, or allied to the farm’s system.”
The Federated Farmers member spent 160 days touring the USA and a dozen European nations exploring questions around farm ownership structures.
A recent Federated Farmers survey shows succession or selling is on many Kiwi farmers’ minds.
Of 1000 farmers surveyed, 28% said they had given serious consideration to selling their farm in the previous 24 months. Of these, 19% were aged 18-39, 32% were 40-59, and 27% 60-plus.
About 63% thought they would still be farming in five years.
Asked if they were to have to stop farming in the next five years, 38% said they had a succession plan; 28% would sell on the open market; 21% were not expecting to sell in five years; 13% were unsure.
Finally, the survey asked if they were concerned their farmland would go into forestry if they sold.
Nearly 24% said yes, and that would influence their decision; while 18% said they’d be concerned, but it wouldn’t influence their decision.
“
Federated Farmers meat and wool chair Toby Williams says the number of respondents 60-plus who hadn’t considered selling was a bit higher than he’d thought.
He wonders if high land/ capital values, driven recently by carbon forestry, have limited their succession options and they’re “hanging in there” hoping values will ease, making it easier for the next generation to buy in.
“It was also a little bit alarming to see how many 18-39-year-olds had considered selling.
It was also a little bit alarming see how many 18-39-year-olds had considered selling. The worry is they’re not really seeing a future in it.
Toby Williams Federated Farmers meat and wool chair
“The worry is they’re not really seeing a future in it,” Williams says. Templeton, like Williams, believes succession is tougher now than in previous decades.
“We’re talking much bigger sums of money with farm values, and much bigger as a proportion to incomes,” Templeton says.
“In the 1950s you could do a couple of years of shearing and buy your first small piece of land. That same path is not so linear now.”
Both men also agree it’s a sound move to get a valuation done when any offspring come back on farm, or a farm is split into separate businesses for succession.
“You can’t have a moving target,” Williams says.
“It can’t be, ‘well, succession starts today and if the land values go up, that’s tough cheese to you guys’.
Because when you finally do the transaction, your business might not be as viable at the new values.”
Templeton says a valuation also means if one sibling comes back to work on-farm, from then there’s some evidential basis for what value that sibling has brought to the business by their efforts.
“For a sibling working on-farm, there’s nothing wrong with paying wages rather than a salary.
“They still may get given an equal share later on, but the person who’s working the big, long hours feels rewarded for the effort and time they’re putting in over their siblings.
“That can nullify a lot of angst and argument that often happens about who’s put effort in over the years.”
Bringing in an advisor early offers all sorts of dividends, he says.
“They’re independent, can assess the family dynamic and recognise when specialist advice is needed, and may well be aware of options the family hadn’t thought of.
“One of the biggest things they bring is they stop the family hierarchical system taking over. It’s often subconscious but people fall back into family roles,” Templeton says.
A neutral venue for succession discussions is best, he says.
“Around the farmhouse table may be the worst place. Advisors told me people go back into their family roles when they’re at that table.”
There are always exceptions to the rule but, of the 103 farmers Templeton spoke to on his Nuffield travels, all but about five of those who’d used an advisor had a positive, tenable outcome.
“On the other hand, those who didn’t bring in an advisor, and it ended up a bad outcome in some way, numbered probably 50.”
Taranaki
dairy farmer
Federated Farmers sharefarmer chair
No need to rush new climate target
Rushing out a new climate target that would just see more rural communities planted in pine trees, or billions spent on international carbon credits, would be grossly irresponsible, says Federated Farmers.
“The Ministry for the Environment has just launched a three-week consultation on a potential new 2035 climate target,” says Federated Farmers president Wayne Langford.
“They want to be able to announce it in February, but that’s nowhere near enough time to be able to make a multi-billion-dollar decision of this magnitude.
“Whatever target we set will have huge implications for rural communities and the New Zealand economy. It would be crazy to rush that through with a three-week consultation.”
Langford says the Ministry should be spending months visiting towns like Gore and Gisborne, hearing from real people about how damaging these targets have been in the past.
“Instead, they’ve launched a fivequestion survey from their desks in Wellington.”
New Zealand is required to set ‘nationally determined’ targets under the Paris Agreement every five years.
Our current target is for a 50% reduction in greenhouse gas emissions by 2030, which was tabled by the last Government.
“They are saying we need to announce this target by February next year, but we know the EU won’t hit this deadline, and it appears the US now won’t be in a hurry either,” Langford says.
“Rather than rush this target out and then regret it when the bill comes, we should take our time,
review our methane targets, and get our international setting right.”
Despite our split-gas domestic targets, New Zealand’s current approach to the Paris target continues to use the flawed ‘Global Warming Potential’ (GWP-100) metric for all gases.
The Intergovernmental Panel on Climate Change has noted GWP-100 overstates the effect of a constant level of methane emissions on global surface temperatures by a factor of three to four.
“New Zealand needs science-based climate policy that’s based on what’s actually achievable without huge areas of carbon forestry,” Langford says.
“We take a split-gas approach domestically, so why on earth don’t we take that same approach to our international commitments under the Paris Agreement.
“Our current target would require us to half our emissions in the next few years, which just isn’t going to happen – it’s totally unrealistic.
“If we were to buy international offsets, Treasury says it would cost up to $9.9 billion. Is anyone willing to pay that at the expense of schools, hospitals or roads?
“The other option would be to plant trees, but planting 850,000
hectares of new forests would be just as unpalatable.”
In a recent Q+A interview with Jack Tame, Prime Minister Chris Luxon wouldn’t commit to achieving the previous Government’s Paris Target at all.
Langford says that will be a relief to many.
“New Zealand needs to have a serious conversation about how realistic these targets are.
“It might feel good turning up at UN climate meetings with big ambitious targets, but it doesn’t feel so good when the rubber starts to hit the road and the bill arrives in the mail.
“That’s the exact situation the current Government has inherited from James Shaw, but they now face a choice on if they want to repeat mistakes of the past.”
Federated Farmers says the most sensible way forward would be to set a split-gas international target that’s grounded in science and won’t threaten food production – or our economy.
The organisation argues we should align our international commitments with our domestic targets, so we can achieve them without spending billions on international credits.
“New Zealand has taken the sensible approach of adopting a
RIGHT:
GET IT
Wayne Langford says the Ministry for the Environment needs to take its time setting a new 2035 climate target – or the country could regret it.
‘split-gas’ target for our domestic policy that recognised methane doesn’t need to reduce to zero,” Langford says.
Whatever target we set will have huge implications for rural communities and the New Zealand economy. It would be crazy to rush that through with a three-week consultation.
Wayne Langford
Federated Farmers national president
Aligning our international and domestic targets would ensure a consistent approach that acknowledges the short-lived nature of methane compared to long-lived carbon dioxide.
“If we don’t get this policy right, we’re going to continue to see our rural communities planted in pine trees,” Langford says.
“I have written to Climate Change Minister Simon Watts expressing this view and requested an urgent meeting to discuss this critical issue.
“We have also made this point abundantly clear in our submission to the Ministry.”
8 0 0 3 2 7 6 4 6
Waikato road reopening a victory
Asmall rural community in the Waikato has won a major victory over
“bureaucratic BS and bluster”, says Federated Farmers Waikato president Keith Holmes.
Telephone Road, a section of State Highway 1B just east of Hamilton, has been closed for almost three years, causing huge disruption for local families and businesses.
The road closed in April 2022 after repeated instances of low vehicles damaging the railway tracks at the level crossing.
With the apparent risk of a train being derailed, NZTA and KiwiRail closed the crossing while it discussed the future of the intersection – but it has never reopened.
SUCCESS: Keith Holmes says the reopening of Telephone Rd will be down to the local community campaigning hard, and the Minister stepping in.
locals have had to live with the inconvenient consequences of their inaction.
“Thankfully, that needless bureaucratic time-wasting and duck-shoving has now come to an end, the Minister has stepped in, and common sense has finally prevailed.”
Last week Transport Minister Simeon Brown confirmed Telephone Road will reopen in 2025, following agreement by KiwiRail and NZTA on a package of improvements.
The proposed improvements will see the road level raised, new escape lanes built and improved signage and road marking.
this victory belongs squarely to the local community who campaigned so hard to have the road re-opened,” Holmes says.
For the road to be closed that long is nothing short of incompetence and a total lack of accountability from the New Zealand Transport Agency.
Keith Holmes Federated
Farmers Waikato president
“For the road to be closed that long is nothing short of incompetence and a total lack of accountability from the New Zealand Transport Agency (NZTA),” Holmes says. “While they’ve mindlessly shuffled paper around on their desks looking for any excuse not to open the road,
Fish & Game Southland caught orange-handed
FISH & Game Southland officers
have been spotted pulling down orange flags hung up in protest by local farmers – and Jason Herrick is fuming.
The president of Federated Farmers Southland says it’s unbelievable that Fish & Game officers have been going onto farmers’ land and removing them.
“Back in October, Federated Farmers Southland called for local farmers to boycott Fish & Game and remove fishing access across our land.
“We didn’t take this step lightly at all, but felt we needed to send a strong message about Fish & Game Southland’s persistent, belligerent anti-farming rhetoric, and their opposition to everything we do.” Herrick also encouraged farmers to replace access signs with orange ribbons or flags to show their
frustration with Fish & Game.
“Some farmers chose to leave up the access signs but still hang a flag on the sign in protest.
“Now we have a local farmer who’s witnessed a Fish & Game officer removing orange flags from those access points.
“It’s complete arrogance and another example of Fish & Game Southland’s total disrespect for farmers.”
Herrick says he had an “enlightening” meeting with Fish & Game Southland’s council on November 28.
“It became very apparent to me in that meeting that the Southland councillors don’t know half of what’s happening within their organisation.
“Most of them had no idea officers have been taking down these orange flags.
It’s complete arrogance and another example of Fish & Game Southland’s total disrespect for farmers.
Jason Herrick Federated Farmers Southland president
“One of the councillors did and he said the Fish & Game officers were pulling the flags down off their Fish & Game access signs – which he said is their property.
“That’s a bit odd considering their so-called ‘property’ is on farmers’ private land.
“Farmers have been very accommodating in allowing fishing access across our private property for several years.
NZTA expects to have a confirmed contractor for the works on board before the end January 2025, with construction expected to be completed before mid-2025.
“Federated Farmers have supported in the background, but
“They’ll no doubt be relieved that the disruption to their lives is finally coming to an end.
“It’s amazing how quickly things can be done when there is a will –and when a Minister steps in!”
“It’s almost like Fish & Game are treating it like a right, rather than a gesture of goodwill.”
Herrick says one outcome of the November 28 meeting was for he and Lindsay Withington, chair of Fish & Game Southland, to stay in better communication.
“We agreed to stay in contact which each other, but that doesn’t mean I’m going to stop doing what we’re doing – calling these guys out.
“I want to see change in the way Fish & Game down here operate, and I want to see their anti-farming rhetoric and bad behaviour end.”
Owhango 2646 State Highway 4
Deadline Sale
Reliable dairy opportunity
This easy contoured 86.82 ha dairy farm is in prime Owhango dairy country in the central North Island. The land is of a very rolling contour with Owhango Loam soil types that are fertile and drain well. This farm is milking 250 cows through a 22 ASHB shed, with an in-shed feed system and automatic cup removers producing approx. 85,000 kgMS per year with the support of a neighbouring 20 ha lease. There is good support infrastructure here, with a 4 bay pole shed at the cow shed, underpass under State Highway 4, pumice for lanes and a very good spring water system from the top end of the farm that is gravity feed to all paddocks and buildings.
Eketahuna 454 Parkville Road
Intensive
grazing/finishing with dairy history
A large scale and well developed grazing/finishing property situated at Waipahi northeast of Gore. In the five years of the Vendors ownership, they have completed a significant amount of capital development renewing all the pastures, lifting fertility across the property, extending the track infrastructure and further subdividing the paddocks and erecting new fencing. Contour ranges from easy paddock country to rolling ridges with some medium hill & red tussock / bush. Buildings comprise a seven year old four stand R/B woolshed, implement sheds, workshop, cattle yards and two primary homes. Added recreational benefits of fishing / hunting with the Pomahaka and Waipahi River on your boundary
Spring Grove - 231 ha
This 231 ha dairy operation is located in the very reliable rainfall (1,800 mm p.a.) district of Parkville, just west of Eketahuna.
Over the past 10 years Spring Grove has had a range of farming systems, ranging between system 2 and system 5. The property has milked a peak of 580 cows on a system 5 model during this time but is currently milking 450 cows on a low cost system. Production has averaged 173,633 kgMS over the past five years while the operation is targeting 180,000 kgMS this season. This well apportioned dairy unit includes a 40 ASHB cowshed suitably supported by an adjacent 400 cow feed pad and numerous calf shedding Accommodation is provided by way of a four bedroom main home, with expansive views over the farm and a tidy three bedroom second home Both houses also feature adjacent self contained sleepouts.
The property sits on five separate titles. providing multiple purchase options.
Tender closes 2.00pm, Mon 16th Dec, 2024, Property Brokers Pahiatua, 129 Main Street Pahiatua View By appointment
Web pb.co.nz/MR194199
Jamie Smith M 027 220 8311 E jamie.smith@pb.co.nz
Jared Brock M 027 449 5496 E jared@pb.co.nz
John Arends M 027 444 7380 E johna@pb.co.nz
Feilding 158 Finnis Road
Picturesque paradise - Incredible views!
This picturesque 6.25 acre (more or less) property offers the benefits of a top location, breath taking views, and a beautifully presented brick three bedroom family home Welcome to your own rural retreat! Lovingly maintained, this tidy 174m2 (approx.) home perfectly captures the restful lifestyle on offer in this beautiful pocket of the Manawatu Entertaining and family living are enjoyed with an abundance of space where relaxation knows no bounds The lightfilled kitchen with breakfast bar, an open plan dining and living area makes for easy hosting and the seamlessness between the home and landscape makes this a perfect lifestyle block. Curl up for family movie nights in front of the projector in the lounge, what a spot! The three bedrooms are serene sanctuaries supported by a family bathroom and an ensuite and walk in wardrobe off the master bedroom - every room is well-appointed with a cosy feel. Its ample dimensions are complemented by a large sun-soaked deck and expansive lawn.
3 2 1 6 For Sale Buyers $1,149,000+ View By appointment Web pb.co.nz/BL185092
Nitschke M 021 262 3836 E kay@pb.co.nz
+ 460ha* combined freehold area;
+ 411ha* combined planted (or plantable) area (including 2024 planting);
+ Mixed age class providing future woodflow flexibility;
+ Previous harvest records available;
+ Stands of indigenous forest and streams;
+ Post-89 land could be considered for ETS registration
Deadline Offers: Friday 14 February 2025 at 4pm (NZST)
*Approximately
Jaiden Drought NEWS Machinery
HILE the green shoots of spring have well and truly sprung around the majority of the nation – albeit with a slight delay to those unfortunate enough to be caught up in what has been described as the ‘great southern soaking’ – this has yet to translate to an upswing in tractor sales.
End of month numbers to October 31 show that despite a large bump in milk price, the promise of falling interest rates and some of the best store prices the beef community have historically received, this has not flowed through into big ticket spending just yet.
Many in the industry have called the last winter the toughest in recent memory – much worse than the global financial crisis of 2008.
It was compounded by a sharp turning off of the sales tap, as well as longer than usual shipping times, meaning it was too late to cancel orders.
The machines kept coming despite soft demand.
This resulted in high floorplan interest bills and yards overflowing with stock, a perfect storm in many ways.
While this was certainly a buyer’s market, there was certainly no need for security to tell the punters with open cheque books to form an orderly line.
Many in the industry have called the last winter the toughest in recent memory – much worse than the global financial crisis of 2008.
Latest figures show a 26% decrease in sales for the month of October. Given that one of the largest importers has their financial year end on October 31, which often sees a somewhat falsely inflated spike in the trend, there were only 299 total sales versus 404 last year.
Further broken down, the North Island slumped 23.3% versus this time last year, while the South Island suffered a larger
decline than their northern relatives. Cumulatively the south ended the month with 30.2% lower sales than last year and despite the challenging spring in Southland and Otago, it was South Canterbury, the West Coast and Nelson which all saw a 65% drop or more compared with this time a year ago.
This follows a similar trend to the first 10 months of the year, with overall machine demand down just over 20% overall.
With my crystal ball prediction for a year end number, I’m estimating just shy of 2800 units. This is significantly down on 4459 total sales from the 2022 year which could be considered the ‘glory days’ now looking back.
It is not all doom and gloom however, as these numbers are what is considered a lag indicator and as such may not paint the picture in front of the dealers right now.
With the A&P Shows and summer field days season almost upon us, the turnaround in rural confidence is palpable.
With the upswing in dairy commodities combined with softening overdraft rates already
making a positive impact on dairy farmers cashflow, dealers and importers are already reporting actually selling stuff which for many, has been a rarity for the past 12 months.
There are also credible reports of solid indent order books into next spring which shows this
confidence is flowing through into the contracting community, with the bright outlook injecting much needed confidence into their operations also.
The next six months looks very positive, a sentiment shared by many in the ag industry, plus who doesn’t like shiny new stuff?
FORESTRY
Facebook: Waterton
Mataro
Wiltshire’s have been breeding for eczema tolerance since 1989. On the eczema prone hills of Taranaki these Rams are breed tough and ready for any climate.
For more information contact: Curtis Lockley 022 412 0660, 06 752 3084
SALE TALK
In the great days of the British Empire, a new commanding officer was sent to an African bush outpost to relieve the retiring colonel. After welcoming his replacement and showing the usual courtesies which protocol decrees, the retiring colonel said, “You must meet my Adjutant, Captain Smithers, he’s my right-hand man, his talent is simply boundless.” Smithers was summoned and introduced to the new CO, who was surprised to meet a hunchback, one eyed, toothless, hairless, scabbed and pockmarked specimen, a particularly unattractive man less than three feet tall.
“Smithers, old man, tell your new CO about yourself.”
“Well, sir, I played cricket for England, won the Military Cross and Bar, represented Great Britain in equestrian events and won a Silver Medal in the middleweight boxing division of the Olympics. I served with the Bengal Lancers in the siege of Cawnpore as First Secretary to Colonel SmytheCarruthers Brigade Commander. I have researched the history of . . .” At that point, the colonel interrupted. “Yes, yes, never mind all that, Smithers, he can find all that in your file. Tell him about the day you told the Witch Doctor where to go.”
FOR SALE
700 1YR Red Hinds 86 kgs (Sell Now)
1400 MA Red Hinds Focus Genetic bred (120kg – Sell March)
STOCK REQUIRED
Heavy 40kg+ lambs
150 X Frsn/Here Bull Calves
150 15 mth Frsn Here Steers 300kg approx Cull/Dry Cows
info@dyerlivestock co nz www dyerlivestock co nz Ross Dyer 0274 333 381
CRAIGNEUK
A Financing Solution For Your Farm
YARDLINK
Join us for this 100% Online SALEYARD sale
Wednesday, 11th December, starting 11am
ENTRIES TO DATE
• 12 x Autumn born Fsn/FsnX R2 steers, approx. 450kg
• 10 x Autumn born Purebred Speckle Park weaner steers, approx. 250kg
• Approx. 40x WF weaner heifers, 100kg+
• Approx. 20x Speckle Park/Fsn weaner heifers, 100kg+
Confirmed tallies, weights and photos for all lines will be available on BIDR by 10/12/2024
ENTRIES STILL BEING TAKEN CONTACT
STEWART CRUICKSHANK 027 2705288
For a full list of services & current listings check out our website at www.linklivestock.co.nz
PERIA SALE
12th December 2024 12.30 start
TOTAL 1200 YARDED STOCK CONSISTS OF:
• 120 2yr Ang, Wf, Santa & Frsn Steers
• 150 1yr Wf, Ang, Santa, Shorthorn & Beef steers
• 60 TQ A/B Char steers
• 10 A/B Santa steers
• 140 A/B Angus steers
• 25 15mth TQ Ang Frsn bulls
• 10 A/B Ang bulls
• 120 Nr Frsn bulls
• 50 Weaner Wf, Ang, Char x bulls
• 40 2yr Ang, Wf Heifers
• 45 18mth Char, Spec, Sim, Wf, Heifers
• 120 1 yr Wf, Ang, Santa x Heifers
• 140 Weaner Wf, Ang, Char Heifers
• 60 TQ A/B Char Heifers
• 10 A/B Santa x Heifers
• 10 A/B Ang Heifers CONTACT:
LIVESTOCK
Wright – 027 284 6384
Demand tapers as store lambs flow
A lack of rain is also starting to have an impact, and values are likely to continue to lose momentum going into January.
THE North Island store
lamb market is playing out very differently from last year. Store lamb prices managed to get off to a strong start at $3.70-$3.90/kg in the paddock from early November but since then, prices have been declining rapidly despite a firm schedule.
Last month, most of the lambs on the market were forward store lambs being offloaded from Hawke’s Bay.
Strong demand for these types of lambs came from neighboring regions with good feed levels. This pushed prices significantly higher compared to the start of last season but bang on where they should be relative to the schedule.
The shift from $2.70-$2.95/ kg in the space of a year seems like a large increase. However, 12 months ago there was a lot less confidence in the lamb job with slaughter prices falling weekly
ending November at $6.35/kg.
At this time last year, a serious lack of demand pushed the store price to 40% of the schedule before any significant interest from traders emerged. This was a major blow to sheep breeders.
When traders began to show interest at such a low price, the value corrected to 42% in January. However, finished lambs at that time were returning $6.00-$6.05/ kg, while heavy males were only worth around $2.50-$2.60/kg.
This year, breeders are seeing a significantly better return for store lambs, and the elevated lamb schedule has created an attractive margin for buyers. Not to mention the return on mutton is still $1.55/ kg above this time last year at $4.15/kg in the North Island.
Although lamb slaughter prices have been unseasonally firm from November to December this year, the value of store lambs has been declining due to weakening demand as buyers fill their requirements but numbers selling remain high.
In the Feilding and Stortford
Lodge saleyards last month combined throughput was close to 34,000 head, accounting for an extra 7600 lambs sold above the five-year average for November.
Saturation in the market and capped capacity saw prices for 28-32kg terminal store lambs fall quickly to around $3.30-$3.40/kg this week, shifting the store lamb percentage of the schedule from 48% at the start of November to 41% of an $8.10/kg schedule.
Forward lambs have become good buying for those with the capacity to hold them.
The five-year average for December has been closer to 45% of a much lower return. Buyers have been hesitant to show interest in the growing supply of either longer term or maternal store lambs leading to a further discount in the prices achieved for these types.
With store lamb values declining against a stable schedule, forward lambs have become good buying for those with the capacity to hold them.
The supply of finished lambs is increasing but slaughter prices continue to defy their usual seasonal trends on the back of limited supply and firm export markets. This has provided some confidence in how prices might look at the start of next year. However, considering the volume of lambs that left Hawke’s Bay store in November, it is possible slaughter rates could
peak early next year leading to some backlogs. This will be a key determinant in how quickly processors manage to chip away at schedules.
From here, the supply of store lambs is expected to continue growing while demand is likely to weaken.
Store lambs got off to a flying
start this season although it seems there is still a fair amount of downward pressure ahead.
With Hawke’s Bay no longer in the picture and a lack of rain in other regions starting to slow demand, it is likely that store lamb values will continue to lose momentum from December to January.
Cattle Sheep Deer
Weekly saleyard results
These weekly saleyard results are collated by the AgriHQ LivestockEye team. Cattle weights and prices are averages and sheep prices are ranges. For more detailed results and analysis subscribe
Mixed-age Romney ewes, most
Store
Feilding | December 2 | 101 cattle,
Boner Friesian cows, 560kg
Prime mixed-sex hoggets, most
Prime mixed-sex lambs, most
Coalgate | November 28 |
Southern Ocean still rules as tropics stir
THE South Pacific cyclone season, which runs from November 1 to April 30, is upon us.
North of New Zealand, in places like Queensland and the Northern Territory, the monsoon season sees low-pressure zones increasing over Java/Sumatra and Papua New Guinea. Low pressure has been forming there over the past few weeks and in the week or two ahead it may finally kick off Australia’s tropical wet season – it certainly hasn’t started already. Why does it matter to NZ? Well, if they aren’t getting the tropical rain first, we can’t get it after them.
Directly north of NZ it’s a similar story with a fairly large pool of low pressure near Vanuatu, Fiji and Samoa. Put simply, imagine the weather map I stand in front of showing NZ, Australia and the tropical islands.
The top quarter of that map (the tropical part) is seeing a big increase in rain over the next week or two.
Let’s connect this to New Zealand now. Seeing more rain across northern Australia and the tropical islands north of NZchanges the formula of our surrounding weather pattern –even if no immediate rain relief is coming to dry NZ, sorry.
Since April this year we’ve been in a “neutral” weather pattern, which saw a traditional spring (yes, too wet and too dry for some, but overall the classic south-west flow was normal for NZ) and back in winter we had what I called “The Winter of Big”. We had recordbreaking high pressure recorded in NZ from mountainous highs – but we balanced that with huge lowpressure zones that engulfed our country.
This is what “neutral” can look like – a weather pattern that can “swing both ways”, so to speak!
Over spring the usual change of seasons (from winter to summer) saw an uptick in westerlies over NZ but across the past several months it has been huge storms south of NZ, hugging Antarctica, which have been fuelling most of NZ’s weather.
With life now forming in the tropics, it’s time to now also
MESSY: The next 10 days show rain in the tropics, storms south of New Zealand and a messy pattern in between.
monitor what is happening north of us too.
So here’s what is driving our weather over and around NZ for the next week or two.
There is much more “spring-like” weather coming, especially to the South Island. Strong westerlies at times, more West Coast rain and drier in the east of both islands. But big highs from the Tasman Sea are also in the mix and, for now, continue to block tropical rain from reaching NZ. Northeast of NZ we see a couple
of large sub-tropical lows forming and dropping southwards over the next 10 days. One near the Cook Islands may have the possibility of reaching NZ but modelling has been suggesting it stays offshore to our east.
For now the storms south of NZ will continue to be the main driver of our weather, and sometimes dragging heat out of Australia too (as a hot nor’wester). Here’s hoping a summer with “weather variety” translates to giving you what you need.
OUTLOOK: Scan the QR code to view Phil’s December/Summer outlook.