Farmers Weekly NZ June 10 2024

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Early dry-off as Southland weathers wet

Gerhard Uys

WET and cold weather in Southland means farmers have had to implement winter management plans earlier than anticipated.

Hokonui Hills dairy farmer Nigel Johnston said it has been a “rough couple of weeks” and that he had to dry off more than a week earlier than planned.

Johnston said the weather conditions are likely normal for Southland in May, but the region “had been blessed with fantastic autumns” over the past few years.

Adequate rainfall meant there was enough feed around, he said.

The region has been in the spotlight because of grazing practices, which means farmers have been implementing winter grazing plans, and are as a result prepared for wet weather, he said.

Concerns about what the general public thinks and how farms “look from the road” means most farmers have stepped up their winter grazing practices.

Rainfall data supplied by Metservice from four weather stations across Southland showed the total average rainfall between January and the end of May 2024 was 76mm higher compared to last year. It was also 183.7mm more than

the same period in 2022, 147.4mm higher than 2021 and 182mm higher than 2020.

In May, extreme minimum temperatures were as low as -5.7degC in Manapouri, -4.3degC in Lumsden and -3.3degC in Gore.

Woodlands dairy farmer Hannes du Plessis said he had not seen such a wet May in many years.

As a result of wet and cold conditions, and low pasture growth from mid-April, Du Plessis dried off a week earlier than usual.

He had planned to milk into June.

Du Plessis said besides a milk production loss there are other financial implications from an early dry-off.

“Most cows are only sent to grazers on 1 June. You still need to feed them once they’re dried off.

On a 600-cow mob you’d have to feed out an extra 30 to 40 bales a day,” he said.

Du Plessis said there are financial and animal health risks to drying off in these conditions.

His cows were dried off and teatsealed a week ago but then had to spend time in muddy paddocks.

This could not only lead to mastitis, but the teat seal costs money.

“Suddenly there’s water in places where you’d not normally have water. Cow management becomes important.

“Feed utilisation drops

Continued page 3

Winter worries for dry North Canterbury

An autumn drought has North Canterbury farmers offloading stock and searching for feed as winter approaches. Federated Farmers North Canterbury meat and fibre president Sara Black says caring for breeding stock is the focus now.

NEWS 3

SECTORFOCUS

Synlait suppliers who have handed their cessation notices did so to keep their options open.

NEWS 4

Prior commitment pays off for pair

Makuri farmers Mathew and Marilyn Prior have been named Tararua Sheep and Beef Farm Business of the Year.

SHEEP & BEEF 21-28

Fonterra should be wary of narrowing its focus in an uncertain world, says Ben Anderson.

OPINION 16

Rural broadcaster, beekeeper and breeder among those receiving King’s Birthday honours.

PEOPLE 18

Photo: Joseph Johnson

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ISSN 2463-6002 (Print) ISSN 2463-6010 (Online)

Scales Corporation has increased its ownership share from 33% to 50% in a petfood ingredients joint venture in Melbourne called Meateor Australia. The joint venture partner, the Fayman family, has also increased to 50%, thereby buying out a third unnamed partner between them.

Scales said the total cost of its half share will be A$11.5 million ($12.4m).

Scales grows petfood stake Pork board appointments

Experienced industry figures Jason Palmer and Nigel Young have been elected by fellow pork producers to the NZ Pork board of directors.

Palmer, a Mid-Canterbury pig farmer with interests in dairy and forestry, is a current director on the NZ Pork board. Young, currently general manager for PIC/Sunpork NZ, brings to the board 40 years’ experience in the sector in New Zealand, the United Kingdom and Australia.

Ravensdown taps Stuart

Graham Stuart has been appointed to the Ravensdown board, replacing departing director Jason Dale, who stands down after more than nine years with the co-operative. A respected leader in New Zealand’s primary sector, Stuart has over 30 years’ experience driving growth and transformation across multiple industries. He is currently chair of Northwest Healthcare Property Management Limited and Comhla Vet Limited.

Biosecurity levy relief

The Biosecurity (Response – Milksolids) Levy will reduce from 2.4 cents per kilogram of milksolids to 0.8 cents per kilogram of milksolids from July 1.

DairyNZ chair Jim van der Poel said the reduction is down to the national effort from New Zealand dairy farmers in response to Mycoplasma bovis.

“When the sector works well together, we get results,” he said.

Brothers named Freshwater Champions

We chat with the 2024 Cawthron Freshwater Champion Rick Burke. Rick and his twin brother John have spent almost 30 years turning their Kati Kati farm into an environmental exemplar Rick told Bryan about their journey and the importance their catchment group had in helping them

Cawthron Freshwater

Island of extremes

Southland soggy as dry winter

bites N Canty hard

PREDICTED rain is failing to touch the ground, feed is running short with livestock leaving farms as the window closes for North Canterbury farmers battling the lingering dry conditions.

On top of that the bite is getting deeper with rising costs, soaring interest rates and low returns from sheep and wool, North Canterbury Federated Farmers meat and wool chair and Marble Point Station farmer Sara Black said.

Feed stores are fragile, winter crops are not doing well. It looks like summer – winter has arrived but any rain has been touch and go, maybe 2-3ml at a time for months on end, she said.

The region was declared in drought in March.

“We are very familiar with dry summers in this region but autumn has come and gone, now winter and the hills are still

Continued from page 1

significantly. In winter, 80% to 90% feed utilisation would be good; in these conditions it drops to 60%,” he said.

“You have to have a plan B in place for wet and winter management. Depending on slope there are runoff concerns. Some farms in Southland can’t winter cows because of soil conditions and slope,” he said.

summer-dry, winter crops are barely thriving and supplementary feed is running desperately low.

“The challenge now is to get feed to look after the breeding stock but that is a significant cost and transport costs are up there too.”

Black and her husband Matt farm the 2388 hectare mostly steep hill country of Marble Point Station near Culverden in an equity farming partnership running 4100 Corriedale ewes and 430 Angus beef cattle.

For the first time ever they have resorted to putting their 1100 two-tooths on an irrigated block. A further 1200 ewe hoggets have gone out to grazing.

Black acknowledged there are farmers “much worse off than us”.

“We have got rid of anything we could, we are not holding any additional trading stock and we are looking seriously at the R2 cattle.

“Just yesterday we stopped the grain feeding and all the ewes have been kicked up the hill.

“We have been lucky in that we

Du Plessis said DairyNZ’s website will have information that is especially helpful for new producers, and that a Google search for “wet weather management DairyNZ” will take them to the right information.

Environment Southland resource management manager Donna Ferguson said Southland is wet during winter and farmers should have a Plan B. Compliance monitoring began

The challenge now is to get feed to look after the breeding stock but that is a significant cost and transport costs are up there too.

have a small area of irrigation and that has been an extra lever we can pull to hopefully keep our breeding stock.”

But Black said that isn’t the case for most farmers in the wider drought-stricken region, who are faced with exorbitant costs to buy in feed and truck stock out.

“Farmers have quit big numbers of stock and hundreds have been

at the start of the season, which runs from May 1 to September 30, Ferguson said.

“For winter grazing in 2024, there are both local and national rules in play. While the government has indicated it will be repealing the rules around winter grazing, they remain in place for the 2024 season, we are required to ensure they are adhered to.

“While those rules look likely to be removed by the 2025 winter

trucked out, many to Southland, for grazing.

“In general farmers in the region are cutting back stock by 20% to cope with the dry as they balance buying in supplementary feed over winter ... the cost, and the cost of transport, is about the same value as the ewe, and that’s also the case in the cost of trucking the stock to grazing and back.”

Black said farmers having to quit their capital stock are losing some of the best genetics and the most productive animals in their farming systems.

With ewe scanning underway anything with multiples, more than twins, is out the gate.

“Sadly, that is a decision that will impact their farming operations for many years to come,” Black said.

The situation is delicate across

grazing season, rules for winter grazing activities are still in place under the Southland Water and Land Plan.”

Ferguson said in both the local plan and the national regulations, farmers in Southland are required to have winter grazing plans in place that include:

• Using no greater than 50 hectares, or 10% of the area of the farm (whichever is greater) for winter grazing; the slope of

the rugged hill country, with fragile feed stores and the dry still posing an elevated fire risk. Snow is a looming threat that would really escalate the challenge for farmers to feed stock.

The knock-on economic impact is being felt in the surrounding community.

The Hurunui Adverse Event Committee has been meeting fortnightly since March and in conjunction with the Rural Support Trust is keeping a close watch and co-ordinating support where needed.

“They have also been staging events to get farmers off farm and that’s been good for their mental wellbeing. It really is quite dire.

“We just need the predicted weather systems to actually drop rain, and hopefully not snow,” Black said.

land for winter grazing crops needs to be 10 degrees or less over 20 metres.

• Critical source areas must not be cropped in winter forage crops and cannot be grazed during the season.

• Stock must be kept at least 5m away from the bed of any river, lake, wetland or drain.

Environment Southland staff are available to help with understanding the rules, she said.

Annette Scott NEWS Livestock

OUT THE GATE: North Canterbury Federated Farmers meat and wool chair and Marble Point Station farmer Sara Black says farmers in the region are cutting back stock by 20% to cope with the dry.

Photo: Joseph Johnson

Sara Black Marble Point Station

Synlait quit notices ‘an insurance tactic’

TWO Synlait suppliers who have handed their cessation notices to the company did so to keep their options open and to send a message to the Synlait board to lift its financial performance.

One of those farmers, Ōtorohanga supplier Michael Woodward, said doing so keeps his options open in case Synlait sells its Pōkeno factory.

“Our intention is to stay with the company, but if the worst case happens because we are supplying the North Island factory if it changes hands, we just want to make sure we still align with the values of whoever potentially purchases that operation.

“Putting in our notice gives us the chance of a two-year opt-out.”

Synlait announced on June 4 that a large majority of its

suppliers had handed in cessation notices.

If Synlait retains ownership of the factory, Woodward said, he will stay with the company.

He said he had heard that others who have had handed in their notice are similarly doing so as an ‘insurance policy’.

This is being done by suppliers across both islands, he said.

Our intention is to stay with the company, but if the worst case happens ... putting in our notice gives us the chance of a two-year opt-out.

Michael Woodward Ōtorohanga

The company indicated in April that the sale of the factory is a possibility as it looks at options to reduce $300 million in debt.

Woodward backed Bright Dairy’s $130m loan offer, which will require shareholder approval, saying it is the best option unless the money could be raised privately in New Zealand.

“I would like to think that it’s a short-term measure until they do get that balance sheet back into line. It’s nice to know that one of the major investors is there to make sure that business as usual continues.

“From an on-farm point of view, there’s no change in operations, we’re feeling no pressure from them – they have put out a really strong advance [rate] for next season – which they needed to because we have been behind – and we appreciate that and the milk price they have put up this season matches Fonterra’s price.”

Woodward said there is still support for Synlait among its suppliers, and that many of its financial problems are a result of decisions made by the previous management team.

Ashburton supplier and former Federated Farmers board member Willy Leferink said news that many suppliers are leaving was not unexpected. He agreed that many are also handing in their notice to keep their options open.

“It’s a tough going when you’re on the back foot – and when you’re trying to sell stuff when you’re on the back foot, the vultures are out.”

Many suppliers in Mid Canterbury are also considering walking away.

“I don’t know anybody from my circle that hasn’t put in their notice,” Leferink said.

He said suppliers have had hard conversations with both management and the board, where the supplier’s position has been made clear.

CAUTION: Synlait says its opening forecast of $8 for the new dairy season is conservative given the volatile global scene.

Synlait opening forecast matches Fonterra’s

Staff reporter NEWS Dairy

SYNLAIT’S opening forecast for the new dairy season is $8/ kg MS.

It said it is taking a conservative approach at the beginning of the season, given the exposure to volatile future global dairy commodity prices. The price matches Fonterra’s mid-point forecast announced on May 29.

Synlait also maintains its forecast for the 2023-2024 season at $7.80/kg MS, it said

“If they want to get their suppliers back, they need to do better than what they do now.”

Leferink said Synlait burned through a lot of trust and goodwill in its supplier base over the past season due to its payout not matching Fonterra’s and the financial struggles that resulted from that.

in a statement on NZX.

“Synlait farmer suppliers have received, on average, $0.28/ kg MS incentives above the base milk price for the last two seasons.

“The company is forecasting to pay similar incentives for the 2023/2024 and 2024/2025 seasons,” it said.

Synlait’s final milk price for the 2023-2024 season will be confirmed when the company’s full-year result is released in September.

The 2024/2025 season forecast will also be updated at the same time.

There is a lot of disappointment among suppliers.

Asked what went wrong with the company, Leferink said: “They built a factory in the wrong place at the wrong time.”

It also underestimated the decline in birth rates in China, which reduced demand for infant formula, he said.

Gerald Piddock NEWS Dairy

NO SURPRISE: Ashburton supplier Willy Leferink says news that many suppliers are leaving Synlait is not unexpected.

UN report wary of safety of methane mitigators

Richard Rennie TECHNOLOGY Emissions

AUNITED Nations report has found that gaps exist in understanding the impact of methane mitigators – including red seaweed – on animal and human health, with more knowledge vital before many can be adopted with confidence.

The Food and Agriculture Organisation (FAO) report, Food Safety Implications from the Use of Environmental Inhibitors, drills deep into the key methane and nitrogen inhibitors being researched.

It highlights the strengths and weaknesses of compounds, including their possible toxicity.

One synthetic compound that has had a high profile is bromoform, also found naturally in red seaweed asparagopsis.

The report notes variants of bromoform have been linked to cancer, while bromoform itself could not be classified for its carcinogenic risk due to limited evidence at hand.

In analysing red seaweed, the natural source of bromoform, the report notes in studies of up to 147 days there was no detected bromoform in products

from treated animals. However, it also cautions that the use of bromoform-containing seaweeds needs to be thoroughly assessed, given synthetic bromoform was evaluated as a possible human carcinogen.

It also notes signs of inflammation and abnormalities in rumen cell walls of cows fed asparagopsis.

Dr Steve Meller, CEO of red seaweed mitigation company CH4 Global, told Farmers Weekly that, given the amounts in which his product is supplied to animals, there is no risk associated with it.

“There are no residues in the milk, urine or organs etcetera at the levels we feed it at. It is not an issue,” he said.

In March Australian CSIRO head scientist Dr Chris McSweeney told Farmers Weekly he remains cautious about asparagopsis and bromoform, still subject to scrutiny in terms of bromoform’s residue and longer-term implications for sustained feeding.

Other seaweed types have been highlighted in the report for their toxicity and possible residues in food items, depending upon the particular seaweed. The residues include microplastics, persistent pollutants found in the ocean, and bacterial pathogens alongside major concerns about arsenic, cadmium, iodine and salmonella.

Last month NZ Food Safety deputy-director Vincent Arbuckle responded to concerns raised by CH4 Global about its challenges getting approval in NZ to use red seaweed.

Arbuckle noted the FAO report’s concerns about gaps in knowledge, and potential food safety and trade implications.

“That the CH4 product is ‘natural’ is not central to determining its status as an inhibitor because natural products, just like synthetic products, can have risks associated with them,” he said.

He also pointed out that in Australia, methane inhibitor products do not meet the definition in legislation that would subject them to the Australian equivalent of the NZ Food Safety regulator.

“Therefore, even if the Australian regulator felt inhibitors should be regulated, this cannot occur until there is a legislative change.”

The report, which includes input from New Zealand’s Environmental Protection Authority, notes that most research to date on methane inhibitors has focused on productivity improvements, and less on the impact on nontarget organisms and human consumption of treated food products.

UNCERTAIN: An FAO report is cautious about many possible methane inhibitors including red seaweed, given the carcinogenic risks associated with its active compound, bromoform.

NZ’s own questionable experience with inhibitors is highlighted in the report.

The synthetic nitrogen inhibitor DCD was pulled from the market 10 years ago after small traces were unexpectedly detected in some milk products.

Some synthetic compounds’ toxicity risks have been underscored, including the likes of anthraquinones used in cosmetics, food colouring and medicines but still classified as “possibly carcinogenic” to humans.

The other high-profile methane mitigator, 3-NOP, trade name Bovaer, has not reported any safety concerns for consumers and no issues have been observed in rats.

Australian researchers are trialling the essential oil product

Agolin in conjunction with red seaweed in sheep feeding trials. The report notes that little information is available on essential oil safety in livestock diets.

Arbuckle confirmed there are four applications to NZ Food Safety for urease inhibitors used in nitrogen fertilisers, used to minimise nitrogen losses on application.

No applications have been received by the regulator for methane mitigation trademarked products.

MORE:

Want to share your thoughts on this issue? Text us on 027 226 8553 with the keyword SEAWEED followed by your comments.

Funding packages for 11 catchments announced

Neal Wallace NEWS Conservation

ELEVEN catchment groups from South Canterbury to Waikato are to receive a share of $7 million in government funding for land management practices.

The money is part of a $36m

package announced in last week’s Budget for catchment groups.

Agriculture Minister Todd McClay said this funding is in addition to MPI’s current investment in 46 catchment-based projects that support 290 groups and over 9000 farmers.

New projects include $2m over four years to catchment groups

across Tairāwhiti, $980,000 over four years to 13 catchment groups within the Manawatū River Catchment Collective and $950,000 over four years for the Ashburton Lakes Catchment Group in conjunction with the Mid Canterbury Catchment Collective.

The nine additional funding allocations are to: Puketoi to

BIGGER CALF GAINS

the Pacific, Manawatū-Whanganui, $650,000; Mackenzie Basin, South Canterbury, $625,000; Upper Waikirikiri, Canterbury, $625,000; Farmers across the Marble Aquifer, Tasman, $475,000; Te Arai River Catchment, Tairawhiti, $400,000; Tairāwhiti Whenua Māori Collective, $200,000; Aotearoa NZ Catchment Communities, $100,000; and

Western Firth Catchment, Waikato, $50,000.

The funding is variously for six months to five years.

Aotearoa NZ Catchment Communities has been formed to represent the country’s catchment groups, helping them share resources, identify opportunities for research and have input into government policy.

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Miraka posts strong price for new season

Staff

MIRAKA will pay its farmers a base price of $8.25/kg milk solids for the 20242025 season.

That amount could lift to $8.42/kg MS if farmers earn premiums under Te Ara Miraka, the company’s farming excellence programme.

Miraka CEO Karl Gradon said that following a tough season on farm, it is pleased to get in behind farmers for the season ahead with a strong milk price.

“We’re committed to doing our

part to pay the best milk price to the best people and farms.”

Te Ara Miraka rewards farmers for achieving high standards of sustainability, people development, animal welfare and milk quality.

“Under Te Ara Miraka, our suppliers can earn an additional premium of up to $0.20/ kg MS on top of our milk price. Since our establishment in 2010, Miraka has paid more than $21 million in premiums to our loyal farmer suppliers.”

Miraka GM of on-farm excellence

Chad Hoggard said the company’s 2024/25 milk price will be well received by its dairy farmers and that he is also proud of

We’re committed to doing our part to pay the best milk price to the best people and farms.

Karl Gradon Miraka

farmer performance, which has consistently improved over the past three seasons under Te Ara Miraka.

“Our farmers work hard to achieve high standards and it’s also pleasing when we can deliver a stronger milk price for the new season.

“Our farmers are more than just business relationships to Miraka –they’re people who become part of our whānau and their kaitiakitanga values align with ours.

“We have worked closely together to refine Te Ara Miraka to ensure we’re continuously improving.”

Aus opening prices down the $8 line

MOST of Australia’s 12 dairy companies have announced the new season’s opening milk prices at around $8/kg milksolids except for one specialised cooperative opting to pay about 50% more.

Norco has opened with $12.35, similar to last season, for 280 farmer-suppliers on the north coast of New South Wales and in southern Queensland.

Traditionally Norco leads the way in NSW as Tatua Co-operative does in Waikato, New Zealand, but it is also bouncing back from record-level floods in 2022 that shut its Lismore plant for 18 months.

In the floods of February 2022 it also lost two rural stores and a feed mill, and the head office was inundated.

Norco produces fresh milk and ice cream in Byron Bay and Lismore.

The other Australian national and regional dairy companies that announced opening milk prices to apply from July 1 included Fonterra, Saputo, Bega, ADFC, Bulla, ACM, Kye Valley, Burra and Frestine.

Two-thirds of our milk pool is impacted directly or indirectly by global commodity prices, so we need to understand where they might go over the next 12 months.

Pete Findlay Bega

The range of forecasts has been from $7.20 to $8.70, with a strong resemblance to Fonterra in NZ, which declared $7.25 to $8.25, not allowing for the small currency difference.

There are also regional differences between the major dairy farming zones in Australia, plus some seasonal variation based on historical weather patterns.

SAPUTO: Canadian company Saputo announced a milk price range of $8 to $8.15 across all five Australian regions where it has collections.

Most Australian companies pay on the basis of their domestic dairy products, including home brands, not the export prices.

There are 4000 farms producing around 8.3 billion litres annually, or about 700 million kg milksolids, for an average milk revenue per farm of $1.4 million.

On the south coast of NSW, Bega chief executive Pete Findlay said export conditions are increasingly variable.

“Two-thirds of our milk pool is impacted directly or indirectly by global commodity prices, so we need to understand where they might go over the next 12 months.”

Listed company Bega has strong cheese brands along with liquid

milks, foodservice products and non-dairy foods and annual revenue in excess of $3 billion.

The Chinese-owned Burra Foods company in Victoria’s Gippsland commented on the changing international markets and the need for flexibility.

“Sharing our product mix, markets, strategic focus and ongoing investment programme is important to ensure our milk supply partners feel connected and confident in the future of our business,” chief executive Stewart Carson said.

Canadian company Saputo announced a milk price range of $8 to $8.15 across all five Australian regions where it has collections.

Milk supply and planning director Kate Ryan said the price reflects the softer international milk market.

“Our opening milk price factors in ongoing global market volatility due to subdued demand, as well as greater variability in domestic markets and anticipated market returns,” she said.

Fonterra Oceania managing director Rene Dedoncker said weaker global cheese prices and increasing milk supply in Australia contributed to his opening price average of $8.

A year ago there was a bidding war between processors for supply contracts from farmers but conditions have changed, he said.

GDT prices leap into new dairy season

Staff reporter

GLOBAL Dairy Trade began the New Zealand 2024-25 dairy season with a strong auction for milk powder sales from a wide distribution of buyers.

The GDT index rose 1.7%, which was the third consecutive GDT lift, helped by skim milk powder up 3% and whole milk powder up 1.7%.

Six of the seven commodities offered rose in price, including buttermilk powder, up 10.4%, butter, up 1.7%, anhydrous milk fat, up 0.9% and cheddar, up 0.2%.

Lactose was the only fall, down 1.9%.

The milkfat products continue their recent strength, with AMF now setting a new record at US$7417/tonne and butter $6864, very close to its recent record high of $7000 in early-2022.

AMF is now 58% higher than a year ago and butter is 28% higher.

NZX dairy analyst Rosalind Crickett said the futures market had been expecting higher prices for milk powders and lower for milkfats, so was therefore half right.

“The milkfat group face short-term supply constraints so, all things considered, the GDT results are in line with our expectations.”

WMP buying strength was in southeast Asia and Oceania and the SMP demand was from Europe.

SUPPORT: Miraka CEO Karl Gradon says the company is pleased to get in behind farmers for the season ahead with a strong milk price for the new milking season.

Hugh Stringleman MARKETS Dairy

Pricier Angus bulls add spice to sales

Hugh Stringleman MARKETS Livestock

SOME higher prices were paid for Angus two-year bulls in week three of the 2024 sale season, led by the Sherson family at Shian Angus, Taumarunui, with $75,000.

Shian 22-T635 was bought by Tangihau Angus, under management by Dean McHardy near Gisborne.

T635 was sired by Taimate Mako out of one of Shian’s best breeding cows and has excellent scanning results for eye muscle area, fat cover and intramuscular fat.

Shian stud sold 33 bulls out of 35, including Lot 1 for $18,000 to Ratanui Angus, and the top prices helped boost the average to $11,333, which compared very well to last year’s $7378.

Kayjay Angus at Masterton, owned by the Kjestrup family, had a very good sale with a complete clearance of 40 bulls, a top of $29,000 for Kayjay Bomb Squad T624, followed by $26,000 and $24,000 sales.

Their average was the season-todate high of $11,675, steady on the 2023 achievement.

The Hallmark Angus sale for Max Tweedie, at Tutira, Hawke’s Bay, had a top price of $36,000

paid for Hallmark McPenn T023 by Okaka Angus, Taihape.

Hallmark sold 48 of 49 and had an average price of $8708.

Black Ridge Angus, Taumarunui, sold Lot 3, T046, for $18,000 to a commercial buyer. Black Ridge sold 25 from 32 and averaged $7820.

Wairere Angus at Hāwera had its final bull sale on dispersal of the stud and sold 16 of 18, with a top price of $11,000 paid twice and an average of $7250.

Hingaia Angus, Te Awamutu, had a top price of $16,000 for Hingaia 22169, paid by a commercial buyer, and sold 26 of 29 bulls, averaging $7730.

Dandaloo Angus, Masterton, had a full clearance of 31, averaging $7675, and the top price was $15,500 for Dandaloo Sky 2057.

Near neighbour Tapiri Angus had a top price of $11,000, paid three times, and also had a full clearance of 20, averaging $8170.

Puke-Nui Angus, Taumarunui, sold all 25 bulls and averaged $6880. The top was $13,000, paid for Tyrant T913.

Waikaka Herefords, Southland, for its 50th sale, had a top price of $17,500 paid for Waikaka Redford 2209 and paid by Beechwood Herefords.

The average was $7363 for 11 sold from 21.

Okawa Herefords, Mt Somers,

Shian T635 has excellent scanning results for eye muscle area, fat cover and intramuscular fat.

had a top price of $15,000 paid by Limehills Herefords and there were a further four stud transfers.

The Okawa average was $7665 and it sold 35 of 48 bulls.

Otapawa Heerefords, Eketahuna, sold 33 of 35 bulls offered and averaged $7975.

Two bulls were stud transfers, Lots 5 and 18 to Ashby Herefords.

Top price was $13,500 and another bull made $13,000.

Kairuru Herefords, Reporoa, sold 13 of 25 two-year-olds offered and averaged $6115.

Top price was $9000 paid twice.

The four yearling bulls averaged $7475 and had a top of $10,200.

Ngakouka Herefords, Dannevirke, had a top of $15,000 paid by Monymusk Herefords and the sale average was $7600 for 13 out of 20.

Glenbrae Herefords, Porangahau, had a top price of $8000 for

OUTSTANDING:

Shian T635 sold for $75,000 to Tangihau station, Gisborne, the bull season’s highest price to date.

Glenbrae Tux 22112, and averaged $5700 for 16 sold of 22.

Orari Gorge Hereford, Geraldine, had a top price of $18,500 paid for Orari Winston 220083.

Storth Oaks Angus, Otorohanga had $18,5000 paid twice, once by Lomond Angus for stud transfer on Lot 30 Storth Oaks T 57. The average was $7788 across 60 bulls sold from 85 offered.

Merchiston Angus, Marton, sold 27 out of 28 and averaged $7962, with a top of $14,000 paid for Merchiston Goalkeeper T143, bought by Norbury Farms, a commercial buyer.

Rates, premiums will erode inflation relief

Neal Wallace NEWS Finance

HIGH interest rate costs that pushed farm inflation to a record 16.3% last year are expected to ease slightly this year – but much of that relief will be eroded by rising insurance and local body rates.

At 16.3% in the year to March 2023, onfarm inflation was the highest since 1981, surpassing the previous year’s 10.2%, which was in itself historically high.

Inflation is running at about 4% and the official cash rate at 5.5%. A study for Local Government NZ indicates average local government rate rises of 15% this year.

DairyNZ’s Econ Tracker indicates insurance premiums have increased about a third in five years.

Federated Farmers president Wayne Langford said on top of inflation, many hill country sheep and beef farmers have been battling drought and low product prices.

“Local councils putting their hands out for double digit rate rises is just ridiculous right now,” he said.

“We understand costs have gone up for them too but they need to cut their cloth as every dollar counts on farm right now.”

Like many farmers, Langford has been reviewing his budget looking for savings.

“Planning helps ease the mind, don’t be shy to ask for a bit of help. Sometimes a fresh set of eyes or a good yarn about things may be just what you need.”

Econ Tracker notes that on average 80% of farm term debt is on floating interest rates and these rates have increased markedly in the years up to 2023.

It calculates interest costs for an average dairy farm in 2018-19 were $187,182, peaking at $260,021 in 2023-24 but easing to $246,416 in 2024-25.

Over that same period interest rate costs rose 86.5%, feed and grazing 14.8% and fertiliser, lime and seed 14% – which followed a 23% rise the previous year.

Weighted as a portion of the 16.32% rise in on-farm inflation, rises in interest equated to 9.43%, fertiliser 2.53%, feed and grazing 1.11%, insurance 0.2% and rates 0.12%.

Econ Tracker has calculated insurance costs for an average dairy farm were $13,904 in 2018-19 and $21,481 in 202425, while local government rates for those same years were $16,852 and $20,633.

Beef + Lamb NZ forecasts an average $62,600 profit before tax per farm for 202324, which said would be the lowest farm profit since 2007-08.

DairyNZ calculates the national breakeven farmgate milk price for 2023-24

is $7.75 kg/MS and $7.76 kg/MS for the 2024/25 season.

Fonterra has announced its current season forecast farmgate milk price midpoint of $7.80 kg/MS and an opening forecast milk price for 2024/25 season of $7.25-$8.75 kg/MS with a mid-point of $8 kg/MS.

The Local Government NZ (LGNZ) forecast 15% rate increase this year is based on research of 48 draft long-term plans.

Average rates rose 5.7% a year from 20022022 and 9.8% in 2023.

LGNZ vice-president Campbell Barry said in the past three years the cost of building bridges has increased 38%, sewage systems 30% and roads and water supply systems 27%.

“Councils’ share of overall tax revenue has remained at 2% of GDP for the last 50 years, despite our ever-increasing responsibilities,” said Barry.

He said funding for local government is broken, with rates accounting for more than half council funding.

The impact of the Auckland Anniversary Weekend and Cyclone Gabrielle weather events has seen a reassessment of NZ by reinsurers and had an impact on premiums.

Kris Faafoi Insurance Council of NZ

“We need a range of levers to address the funding and financing challenges in front of us such as an accommodation levy, GST sharing on new builds, congestion charging and tourist levies.”

Insurance Council of NZ chief executive Kris Faafoi acknowledged the impact of a rise in premiums, which is due to inflation and rising global reinsurance costs.

“The impact of the Auckland Anniversary Weekend and Cyclone Gabrielle weather events has seen a reassessment of NZ by reinsurers and had an impact on premiums, which also happened after other large-scale natural disasters such as the Christchurch earthquakes and Kaikoura earthquakes.”

Faafoi said pressure on premiums is starting to ease and the council is working through the Fire and Emergency New Zealand levy process to ensure proposed levy increases do not add unnecessary costs.

Faafoi said the council agrees with the Reserve Bank that central government, councils and others must work together to invest in measures such as flood protection to help reduce risk and ensure insurance is affordable and available in the future.

FIRE: Insurance Council of NZ chief executive

Kris Faafoi says pressure on premiums is starting to ease and the council is working through the Fire and Emergency New Zealand levy process to ensure proposed levy increases do not add unnecessary costs.

Gabrielle bites into apple and pear hectares

THE area planted to apples in 2023/2024 will be substantially lower than before Cyclone Gabrielle, according to a report published this month by the Foreign Agricultural Service of the United States Department of Agriculture based in Wellington.

The report says the floodwaters from Cyclone Gabrielle are to blame for the fact that “New Zealand’s apple planted area in the 2023/2024 market year is forecast to be 9200 hectares, a substantial drop from 11,000ha at the start of the 2022/2023 market year ”.

The report says 510,000 tonnes were harvested in 2021/2022 from commercial orchards, with that dropping to 440,000t in 2022/2023. However, a post-cyclone recovery was predicted, with 10,300ha harvested in 2021/2022, 8900ha harvested in 2022/2023, and a predicted 9200ha to be harvested in 2023/2024.

Recovery is imminent as “New Zealand remains at an advantage by having a counter seasonal production to other countries; as a result, market demand will continue to stay strong”. According to the report, as a

result of the drop in production, more apples will be imported this season, with 300t of apples predicted to be imported, versus 157t of imports at the close of 2022/2023.

“Growers in the Hawke’s Bay and Gisborne regions are undergoing the decision process to salvage or repair damaged orchards. The estimated cost of reinstating apple and pear orchards is significant, between $180,000 to $250,000 per hectare for trees and planting, support structures, irrigation systems, and ground preparation.

“The lead time to obtain apple tree stock can be two to three years, with a further lead time before trees reach maturity.”

The report says to reinstate orchards, growers will have to borrow money, but this is a challenge as debt servicing levels are increasing.

The report cites the Reserve Bank of New Zealand as saying “the nation’s total bank loans to horticulture operations were $7.9 billion as of February 2024.

Since 2017, the total value of loans to horticultural growers has increased at a compounding annual growth rate of 11.5% per year, compared to dairy, livestock, and grain farmer loans combined, which have decreased at a CAGR of -0.6% per year.”

New Zealand Apples and Pears

CEO Karen Morrish said the hectares in the report do not align with the data New Zealand Apples and Pears has.

Morrish put the loss of hectares due to Cyclone Gabrielle at 610ha, almost half of the USDA estimate.

“Export volumes were estimated to be approximately 380,000t in January this year. An estimate review is underway. While the crop this year is excellent in fruit quality and colour, we expect

volumes to be down on this original estimate,” Morrish said.

She also predicted a bounce-back.

“The 2023 spring, which led to the current export crop, consisted of warm dry days and cool nights, growing excellent fruit,” she said.

A spokesperson for the Ministry for Primary Industries said the figures used by the USDA represent both apple and pear plantings.

The MPI does not forecast these

Updated forecasts for apple and pear plantings will be available in the MPI’s June 2024 Situation and Outlook for Primary Industries report.

Spokesperson Ministry for Primary Industries

separately, the spokesperson said.

The spokesperson said the USDA figures were drawn from the June 2023 Situation and Outlook for Primary Industries report, which was prepared soon after Cyclone Gabrielle based on the best available information and impact assessments at the time.

Updated forecasts for apple and pear plantings will be available in the MPI’s June 2024 SOPI, which will be released on June 13 at Fieldays, he said.

The lower hectares come off the back of concerns in the apple industry that apple sizes were small this season, also as a result of Cyclone Gabrielle and tree root damage.

This is a marketing concern as New Zealand tries to distinguish itself from other apple producing countries that sell smaller apples as commodities, by growing large apples.

Gerhard Uys NEWS Horticulture

DISCREPANCY: Apple and pear hectares are down after Cyclone Gabrielle devastated orchards, but there is no consensus on the exact amount as New Zealand Apples and Pears CEO Karen Morrish says estimates in a USDA report this month do not match their data.

Funding meets only part of rural need

THE mayor of floodravaged Wairoa District, Craig Little, says he is not popping any Champagne corks in light of the Budget’s funding allocation for repairing storm-damaged district road networks.

Alongside $21 billion allocated for roads of national significance, the Budget also included $940 million specifically for repairing roads hit hard by the extreme weather events last year, particularly along the North Island’s east coast.

Little said there are a few disappointments in the Budget’s funding announcements, not least of which is no funding for the Waikare Gorge realignment project.

The project was to see a new 160 metre bridge and a 4km road realignment near Putorino.

Consent for the project was publicly notified in February with an estimated cost of about $250m. It would have included one of the highest road bridges in NZ.

“This will prove very

disappointing to people here, and throughout the greater Hawke’s Bay,” Little said.

He also challenged the $250m estimate for a job that had multiplied many times in a few short years.

But Little said the Budget has failed rural communities in other areas as well, with its lack of funding commitment to baseline services like aged care and mental health, where, he said, problems are out of control.

We want people to live in rural areas like Wairoa, but why would you when it is taking another hour longer to get to the rest of Hawke’s Bay?

Craig Little Wairoa District mayor

“We want people to live in rural areas like Wairoa, but why would you when it is taking another hour longer to get to the rest of Hawke’s Bay? People are asking themselves ‘Why put ourselves through this?’ and moving away.”

He noted that so far, the only

funding for roading repairs has come from the previous government to the tune of $40m, and his district is grappling with a $200m bill it has no way of meeting itself.

Post Gabrielle, the council borrowed $8m to respond to immediate repair needs, but with only 4000 households in its ratepayer catchment Wairoa is unable to raise anywhere near the amount required.

“We already get 75% funding assistance from NZTA but even if we got 95%, we would struggle for the other 5%.”

Central Hawke’s Bay mayor Alex Walker said the unfunded price tag of $700m remaining for local road repairs is a burden the region’s ratepayers cannot face alone. She said restoring vital marketto-gate transport connections to support the region’s primary sector is key to reviving the local economy.

“Specifically, we asked for a combination of enhanced funding rates and bespoke additional funding assistance that would see central government cover the cost of most of the remaining roading repairs, with the balance to be funded through council rates.

“This would see us get our primary sector and overall economy back

LIMITED: Wairoa District mayor Craig Little says funds for roading are welcome, but a major project has been dropped for his district, and other services are crumbling from severe underspending, including aged care and mental health.

on its feet sooner and reposition Hawke’s Bay as a critical player in helping this government with its goal of doubling the value of exports in the next 10 years.”

Both mayors are taking a waitand-see approach on where the funding allocation will fall.

In Gisborne, Federated Farmers meat and wool chair Toby Williams said the roading allocation was welcome, but whatever portion Gisborne received of it would barely restore roads to where they were prior to last year.

“It will not be enough to ensure we are better connected, and as a region are capable of growing and adding wealth to our forest and farming production. Government has said it wants to double our exports over 10 years, but how can you do that when primary production regions are struggling with things like roading and access?”

His fear was Te Tairawhiti would see another generation of young people condemned to living in a

region incapable of attracting high value processing companies that bring good job opportunities.

“We only have a few years before alot of the forestry timber here has to have something done with it before the trees get too big, and shipping it out if raw form is not profitable.”

While the Budget funding is intended for the storm-damaged east coast North Island road network, much also still remains to be done in Marlborough after earlier events.

Marlborough District Council is still picking through a $230m bill for its damaged network, of which half is to be paid by ratepayers. The vital Kenepuru road link up the Sounds is estimated at $90m alone, while French Pass road repairs area further $26m.

Between Wairoa, Gisborne, Hawke’s Bay and Marlborough, the total repair bill to restore district roading networks is estimated to be about $1.4bn.

Science left skint by Budget

Richard Rennie NEWS Research

TOP scientists have been left deflated by a Budget they say only perpetuates decades of scientific under-investment in New Zealand.

in research and development are likely to come true.

In April he highlighted in Farmers Weekly that NZ was already well below the OECD average of 2.73% spend as a percentage of GDP, at 1.47%.

Other than a funding increase for geological hazards, this year’s Budget left the scientific community out in the cold. Cuts of nearly $370 million in operating budgets were made, and over $500m sliced off capital costs from the science, innovation, and tech portfolios over the next five years.

Troy Baisden, co-president of the NZ Association of Scientists, described the Budget as a “nothing-burger” for science, with no bailouts for areas of national importance that had been supported by the National Science Challenges, whose funding is due to end this month.

The primary sector’s research capacity has also been hit.

The loss of funding for the National Science Challenge funds is likely to push this country nearer to 1.37%, in line with the likes of Lithuania and Turkey.

He is hoping for a rollover of funding, at least until the National Science Committee headed up by Sir Peter Gluckman can determine the future funding pathways for NZ scientific research.

“That would at least give the scientists we have a level of stability. There is a risk the ones we have had are made redundant and go elsewhere. You don’t just click your fingers to get new scientists here, it takes 10-15 years for them to be fully trained in areas like ruminant nutrition.”

“Given the composition of the coalition, farmers might have hoped for some new research, but if there is I can’t spot it.

“Instead, the Ministry for Primary Industries is cutting about $4.6m a year from its Sustainable Land Management and Climate Change Research in coming years, a total cut of $13.6m over three years.”

He said there is now a distinct flatlining in scientific spend after a period prior to covid when funding enjoyed a growth rate of 24% between 2012 and 2019.

Professor Jon Hickford of Lincoln University shared Baisden’s dismay at the absence of any funding impetus. He said his fears of New Zealand slipping further down the OECD rankings for investment

He is concerned that some practical, value-added research in the pastural sector may grind to a halt. This includes work being done to better integrate quality beef genetics into the dairy herd, dealing with problematic bobby calves and providing a more sustained source of beef for processing plants.

Baisden said pressure is on Sir Peter to make a case for reform to help science rebuild its mojo.

“The groups will need to provide vision and hope for science and technology to address our biggest challenges with effective strategies in areas such as primary industries, and coping with climate change and hazards. Peer nations are investing more, and we should as well.”

Richard Rennie NEWS Budget

From the Editor

Something’s got to give

Neal Wallace Senior reporter

in the Red Sea causing ships to divert.

This sent prices soaring for herbicides, insecticides, fungicides and fertiliser, where prices have more than doubled.

While prices have since fallen, concerningly they are higher than 2022 with the consensus that these prices are the new normal.

For the past 40 years inflation had largely been under control.

little sign local government is doing the same.

There has been little evidence that functions have been cut or services pruned. In fact, it is business as usual, with Farmers Weekly reporting a Local Government NZ survey showing average rate rises this year of a whopping 15%.

Letters of the week

GE shift is brand suicide

Craig Smith Hawke’s Bay

HAVING lived in our beautiful country for almost 70 years, I’ve seen a huge amount of change, especially in the way of computer technology, but also in the way of human behaviour.

Our kids can ask Google any question and within reason they can find some pretty good information in minutes! We can buy livestock from the other end of the country sitting in front of a computer in our lounge! Amazing!

In hindsight, though, a lot of this “progress” has proven to be a mistake – and unfortunately no one seems to realise until it’s too late. (We didn’t have children ram raiding jewellery stores in the ’70s).

Our bureaucrats and politicians don’t seem to want to face up to the reality of a balls-up and do something about it, though. How is it that in a civil defence emergency where people are looting, police and army are so constrained by regulations that they can’t be armed to control the thugs?

We have so much “health and safety” on our roads now that we won’t be able to afford to build decent highways in the future, due to the increased costs. Now we have a government that is going to open our country to genetically modified plants and organisms. We’ve heard a bit about this with all the spin from the scientists, but I’m positive that this is not

Farmers Weekly is published by GlobalHQ, PO Box 529, Feilding 4740. New Zealand Phone: 0800 85 25 80 Website: www.farmersweekly.co.nz

EDITOR

IT IS not news that several years of rampant farm inflation have been devastating farm businesses.

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As we report this week, farmers are caught in a pincer movement – high and rising costs on one side and, on the other, extremely low prices or, in the case of dairy, prices that are hardly provoking raucous cheering.

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After it peaked at 18.4% in 1980, Roger Douglas, the prime minister David Lange’s finance minister, charged the Reserve Bank governor with maintaining inflation within a 1-3% band.

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But the gate has been opened since covid, with accusations that Reserve Bank Governor Adrian Orr overstimulated the economy, which unleashed a tsunami of price rises.

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Jody Anderson 027 474 6094

At 16.3% in the year to March 2023, onfarm inflation was higher than the 10.2% inflation the previous year, which in itself was a 40-year peak.

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If there is a silver lining, it may actually drive a review of the way rates are set because the current cost-plus formula is no longer fit for purpose.

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Farmers have subsequently been doubly hit by high interest rate costs as the Reserve Bank keeps them elevated to control inflation.

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The 2023 rate was the highest on-farm inflation since 1981, driven mostly by interest rate costs, which rose 86.5% in the year to March 2023.

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While councils face rising costs and costly infrastructure repairs, squeezed ratepayers deserve tangible evidence that our councils are being prudent.

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On average, 80% of farm term debt is on floating interest rates.

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Inflation was more than double the consumer price inflation rate of 6.7%.

Dean Williamson 027 323 9407 dean.williamson@globalhq.co.nz

Forecasts are mixed. Farm inflation is picked at 5-6% in the coming year, but interest rates could remain at close to current levels for the rest of this year and into 2025.

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It also reflects the sector’s exposure to international suppliers and supply chain disruption such as from the military tension

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Farmers are unhappy with the inequities of being charged for services they cannot access, such as public transport, but so too are councils, who rely on half their income from rates.

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Their share of the overall tax revenue has remained at 2% of GDP for the past 50 years despite increasing responsibilities.

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A logical response to these pressures is for businesses to look at all their costs and while the central government is asking its departments to do just that, there is

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In my view ...

Fonterra is out to sell its golden goose

Lloyd Downing

Downing is a dairy farmer and Fonterra shareholder-supplier near Morrinsville

FONTERRA’S decision in its strategic review to divest some or all of its consumer brands is in effect selling its golden goose.

It is short sighted and flies in the face of the work the cooperative has done over the years to build up its social licence.

In many ways, Fonterra has only itself to blame with this decision because it has under-invested in those brands for so long.

While it’s true that Fonterra lacks the scale required for the level of investment needed, the best global brands are long-term projects and selling them off now is short term thinking.

We mined the Tip Top brand for all it was worth and yes, we got a substantial payout with $380 million – but at what cost?

You have to take a long-term, multi-generational vision with brands because their accumulated wealth will always beat any oneoff payment if they are sold.

I don’t blame those farmers who support the strategy change. The prospect of a sizable cash payout if the brands are sold is an

Letters of the week

Continued from previous page

a good thing for our beautiful country. No one advertises the failures within GM development, but they are out there if you’re interested in looking. Once it’s here our clean green image is gone.

I can’t speak for everyone, but I’m certainly not interested in eating GM material, nor anything that has consumed it, and statistically, I’m in the majority. Who actually wants Frankenstein Food in their diet? Isn’t NZ still a democracy, where the majority is listened to?

Currently our food exporters have to sign a document confirming that their products have not come in contact with any GM organisms, before certain countries will take their produce. How’s that going to work when GM is here? Fonterra advertises its milk products overseas as being GMO free. It’s a great point of difference when marketing our food.

The consumer wants GE free food! We are a little country at the bottom of the planet whose carbon footprint, with regard to getting

enormous carrot being dangled in front of you, but the smart ones will look beyond that short-term gain and what it will mean for Fonterra down the track.

Fonterra CEO Miles Hurrell loves to talk about social licence, but what sort of licence do we have if we don’t have any iconic New Zealand brands that farmers worked hard create?

We are always talking about value added – and now we’re getting rid of that.

The rhetoric about wanting to preserve Fonterra for future generations is starting to ring very hollow.

They are changing their strategy to suit their vision of a co-op structure rather than changing the structure to fit their strategy – which includes running these consumer brands.

Like we strive to do on our farms, we need to leave the co-op in a better position than when we started.

I have seen farmers build it, and now in the past few years I have seen farmers pull it down, mainly because they can’t or don’t want to understand what they are doing.

You invest in Fonterra the co-operative to get your milk off the farm, create products for

our product to other countries, is an issue. The best way to market our product is to continually remind our consumers that we are natural, grass fed, GM free, and we want to provide you with excellent nutritious food.

Please can we stop this financial suicide!

This ain’t

Texas (woo)

Paul Davey Canterbury

THANK you for printing Ben Anderson’s column, “Learning to steer the brand, Texas style”, (May 13).

We need to be exposed to this brand of defeatist oligarchism and see it for what it is.

Ben chooses to contrast smaller farms with the corporate or semi-corporate farm operators. Of course there is contrast, but emphasising the dichotomy for Ben’s implicit purpose is an unhelpful antithesis.

The argument seems analogous to the error of concluding that correlation must equal causation.

Some scale is essential for efficiency, and co-operation substituting corporation may

You have to take a long-term, multigenerational vision with brands because their accumulated wealth will always beat any one-off payment if they are sold.

foodservice or remove its water for ingredients, sell it and get some money from your milk every month.

When the divestment takes place – and I think it will because the feeling I get from the board is that it’s a done deal – the co-operative must put the right structure in place.

That structure is to create something similar to the one more recently mooted by Farmers Weekly columnist Keith Woodford and others, but also floated by

sometimes be necessary for competitive survival.

But real challenges lie in our small New Zealand economy relying on a tiny marketplace to self-regulate the monopolies and oligopolies (like the banks, the oil companies, big pharma and machinery manufacturers) and the slowness of we NZ farmers to see what the issues and opportunities are and take the appropriate remedial/initiative steps.

Examples abound, too, of how our regulators, for example, are misdirected and stymie initiative.

The family farm will die, as we know it, if we all roll over and surrender. I, for one, am much more attracted to the reality of wanting our family-like farm to continue as a profitable, welfare-positive (that is, for staff, stock, environment, suppliers and customers), independent operation, and will work harder, and hopefully smarter (with collaborators of course) to do our best to see that it is successful (so help me God, I hasten to add with reverence).

By the way, I like Americans too, and have nothing against the Vollemans of this world, but let’s be assured that theirs is not the only right or successful model. Ben’s portrait of NZ’s rural future chills rather than excites.

some in the industry in the leadup to Fonterra’s creation back in the late 1990s.

It would see Fonterra split into two companies. The first would be 100% owned by farmers and would centre on milk collection and processing into either powders or products for foodservice such as cheese and creams.

For farmers, having a strippeddown co-operative would see them getting profits from the milk price and dividend.

The second company would centre on driving consumer brands with its milk, supplied initially from Fonterra. Its keystone shareholder would be a food company that can bring the expertise to drive value in those brands in the international market. Nestlé, Danone, Friesland Campina and Arla Foods are the type of companies that could be interested in such a role.

A Fonterra option

Chris Kaelin

Te Awamutu

NO DOUBT Fonterra has looked at the option of splitting the company to create a new company for its brands, retaining a 51% or maybe

STILL OURS:

Lloyd Downing says Fonterra’s consumer brands could be split off into a separate company that is still majority owned by New Zealanders.

New Zealanders – either as private citizens or as companies – would make up the rest of the shareholding but would retain a majority. This company would be listed on the stock exchange while shares in the other company would be nominal.

Having such a company structure would achieve two things: it would keep these brands in Kiwi hands and thus retain that social licence, while providing a means of injecting the necessary capital and knowledge from the keystone shareholder to drive value from those brands.

New Zealand farmers may be great at turning grass to milk, but do not have the business sense to run a multibillion-dollar company centred on marketing consumer products.

This structure would allow them to grow these brands without sacrificing the family silver.

40% shareholding and listing it on the stock exchange as a public company.

This company would focus solely on building those brands.

Having been part of the dairy industry through the 1980s, getting paid for not producing milk, and seeing what the industry has become today, it’s a shame to see valuable New Zealand assets sold to an overseas investor.

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Budget scythe cuts too sweeping a path

Alternative view

Semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com

LAST week’s Budget was an interesting document. Predictably, there are issues I agree with and some I don’t.

Starting with cuts to the government sector: while I totally support cuts and rationalisation, I don’t support a one-size-fits-all approach.

Asking for a 6.5% to 7.5% across the board doesn’t spin my wheels.

For example, I would have absolutely no doubt that in three organisations, the Ministry of Business, Innovation and Employment, (MBIE), the New Zealand Transport Agency, (NZTA), and the Ministry for the Environment, (MfE), the cuts could be considerably greater.

The staff numbers at the MfE rose 39% from June 30 2021 to December last year, taking

the figure from 648 full-time equivalents to 1068.

As a lot of the projects started under the previous Labour administration have since been canned, there is obviously fat in the system that can be cut.

I believe a 7.5% staff cut at the NZTA would be essentially meaningless. They have a team of spin doctors that are in my view unnecessary.

They come across to me as a hide-bound bureaucracy with lots of sound and fury signifying little.

The same could be said for the MBIE. I believe the cuts for all three could be well above the 7.5% guideline.

In other organisations, such as the Police and Ministry for Primary Industries, I believe any cuts need to be carefully considered. The MPI has been able to cut staff by 10% while assuring me all key services will be maintained. I’ll watch it with interest.

The Police are another story. They tell me they have cut 200 backroom staff but the police union tells me the frontline can’t perform without them and that frontline officers will have to take up backroom roles.

There’s not a lot of future in that approach.

I look forward to further rationalisation of the public sector but would prefer it to be on a caseby-case basis.

Another large part of the Budget was tax relief, and on that I believe the government greatly over-promised and massively under-delivered.

The much-promised $250 a week

Fonterra

–

Eating the elephant

Ben Anderson

Ben Anderson lives in central Hawke’s Bay and farms deer, cows and trees. eating.the.elephant.nz@gmail.com

IN NEW Zealand Fonterra is a big dog. In a good way. In fact, even in the global context it’s big, coming in as the sixth largest dairy company in the world.

I was quite proud of this, so I was a bit taken aback when it recently said it wanted to get smaller.

will go to just 3000 families while the 9000 poorest families will lose one dollar a week. For the minister to then tell me she didn’t know speaks volumes. A superannuant friend of mine claimed his tax relief would allow him to buy two bottles of gin a year, whether he needed them or not.

The issue going forward according to independent economist Cameron Bagrie is that things are going to get a lot worse.

I believe they will as the economic base of our economy is in strife.

Federated Farmers president Wayne Langford put the issue succinctly.

“Just like the average farmer’s budget this season, the government doesn’t have a lot of spare cash laying round to spend on nice-to-haves and optional issues.”

The MPI has been able to cut staff by 10% while assuring me all key services will be maintained. I’ll watch it with interest.

He was pleased that there was continued funding for things like frontline biosecurity, catchment groups and cyclone recovery. So am I.

I respect the opinions of economist Shamubeel Eaqub. His view of the Budget was “borrowing in the Budget to fund tax cuts and operating expenditure is like earning less and living off the overdraft”. I agree with him.

He added that “what we need is a non-political approach to ring-fencing stable maintenance funding”. He added that “for future generations a dollar spent on maintenance today may well be worth more than a dollar spent on a vanity project”. While I totally agree I think the chance of political consensus on anything is precisely zip.

His conclusion was that “this Budget, like many before it, has lived up to a dispirited tradition of short termism”. He added that “our spending is too lavish for our taxes”.

I’d wholeheartedly agree, which is one reason I didn’t want the massively over-sold tax cuts.

On the short-termism I believe that reducing expenditure on science and research is extremely short sighted and will cost us dearly.

On the positive side I agree with the extra resources for the Police and the Regional Infrastructure Fund while maintaining the Apprenticeship Boost scheme.

I also agree with the extra cash into roading, infrastructure and KiwiRail.

On the negative side the cancellation of the first home buyer scheme despite the prime minister’s promise to keep it, combined with canning free prescriptions, could negate any benefits from tax cuts.

I also thought the non-funding of the promised cancer drugs was callous.

As I’ve written previously, I think the agriculture ministers in the government have done a superb job with their cutting of red tape, simplifying regulation and cutting compliance costs.

The efforts in trade are also to be applauded.

That will all help New Zealand pull itself out of our current economic malaise. The ministers concerned are to be congratulated. A healthy and profitable primary sector means a healthy and profitable economy.

On the finance side, the jury is out.

selling up or selling out?

Around $3.4 billion smaller, to be exact.

Brands like Anchor, Mainland and Fresh’n Fruity will all be on the block, allowing Fonterra to focus on core business such as collecting milk and flicking it on in simplified formats such as powder or other foodservice ingredients.

As a Fonterra shareholder my first thought was great! Times are tight and wouldn’t a nice little cash injection be handy about now. Clearly, I wasn’t the only one to think so as the airwaves became chocka with financial commentators and opportunists lining up for a piece of the action. My second thought was why? After all, if its brands are going to be so attractive and valuable to potential purchasers such as Nestlé or Danone, why would we not keep that value for our own long-term benefit?

There are some big brains in the Fonterra team, and you would expect that such a complete aboutturn in strategy must be supported by some fairly deep and analytical thinking.

But if such a major change is required, you could also wonder

how they got it all so wrong in the first place.

Now I know this topic has been beaten to death in the media already, and as a new entrant to the dairy industry my opinion should be taken with a big pinch of salt. But perhaps a bit of “other

industry” perspective may be helpful right now.

After all, wouldn’t NZ’s wool industry like a couple of globally recognised and valued consumer brands in its portfolio right now?

How about NZ’s velvet industry?

Wouldn’t those farmers love to

own a consumer brand that is internationally recognised and valued?

These industries have been selling raw, undifferentiated commodity products for quite some time now, and I suspect their farmers would be more than happy to discuss with Fonterra how that’s currently going for them.

Commodity dependency is a real and well recognised issue for both NZ’s farmers and the country’s economy as a whole. It’s hard to reconcile that fact with Fonterra’s desire to sell off the only things that make it recognisable in its consumers’ eyes.

Of course Fonterra could respond with the fact that selling consumer brands is hard work. It’s not always profitable and there is a logic train that suggests that focusing on a “business to business” model is currently more profitable, which surely is what its farmer owners want?

Equally, I am sure that there are a number of Fonterra farmers who will quite rightly point out that some of the company’s overseas

SERVICE: Time will tell if the government’s approach to the public service will have farming on the right track, Alan Emerson says.

Alan Emerson

HARD

CHEESE: Not having any consumer brands within its business removes Fonterra’s ability to connect with its consumers and ensure that its milk is not substituted for something or someone else’s.

Dairy industry needs strategic A2 policy

The braided trail

Keith Woodford MD at AgriFood Systems

kbwoodford@gmail.com

IN RECENT years, the level of A2 beta-casein in New Zealand milk has been increasing rapidly and the level of A1 beta-casein has been correspondingly decreasing.

LIC data, unpublished but supplied to me on request, indicates that once the 2023-born dairy calves join the milking herd in 2025, these two-year-olds will produce beta-casein that is approximately 84% A2. In contrast, only 16% of their beta-casein will be A1.

This is a remarkable difference from the early to mid-1990s, when the proportion of A2 betacasein in NZ milk was reported in various medical papers, using data from the NZ Dairy Research Institute, now part of Fonterra, as approximately 50%.

The 2024-born calves will produce milk that will almost certainly be even higher in the A2 variant of the relevant gene, probably about 86% and with A1 down to about 14%.

This high A2 beta-casein and low A1 beta-casein status that is now coming through into the next generation of NZ milking cows is unique in major dairy-exporting countries. However, the native cattle of Asia and Africa are all A2, except where the indigenous cattle have been crossed with Europeantype cattle.

The huge increase in NZ A2 betacasein has occurred in the absence of any formal industry policy, partly by purposeful breeding by farmers and partly by breedingcompany policy.

These breeding-policy decisions were linked to Fonterra’s statement in February 2018 that “Fonterra and The a2 Milk Company (a2MC) have today entered into a comprehensive strategic relationship that links

Continued previous page

adventures have not always played out well. This could fairly help draw the conclusion that sticking to one’s knitting is the more sensible strategy.

No doubt there are many other good and valid points that Fonterra’s leadership team could add to the case to sell, but there is one key principle that I know for fact, and that is one should always hedge one’s bets.

Fonterra’s global milk pool and supply chain, manufacturing capability and in-market sales and distribution capacity with a2MC’s brand strength and capabilities”.

It seemed clear that a2Milk and Fonterra were going to take on the world together.

Six years later it, has not worked out that way, although Fonterra does sell A2 milk here in NZ under the a2Milk brand. So, why does NZ dairy still need a strategic A2 policy?

An important insight comes from the announcement on April 15 this year by Seoul Dairy, which is South Korea’s market-dominant dairy company, that it plans to be 100% A2 by 2030. Its reasoning is that 60% of South Koreans are supposedly lactose-intolerant, but the real intolerance of many of these people is now known to be to A1 beta-casein.

The other Korean companies will now have to give much thought as to whether they need to follow the market leader, which already has over 50% market share.

Of course, Korea is just one country. But Japan also has an A2 Milk Association, to whom I have given multiple presentations. Similarly, I have given A2 presentations to Indonesian audiences.

Vinamilk, which is the biggest dairy company in Vietnam, also produces A2 milk. And so on.

Across much of Asia, the benefits of A2 become immediately apparent to many of the consumers who try it. This is because with native Asian cattle all being A2, and milk consumption traditionally low, there has been no natural selection in human populations toward A1 tolerance.

A considerable amount of the infant formula consumed in Asian countries is now A2, with this infant formula providing a spearhead into the broader dairy market. Human breast milk is also of the A2 type.

A 2015 scientific paper that I coauthored in the journal Nutrients on the issue of A1 intolerance being misdiagnosed as lactose intolerance, together with the interaction between intolerances to A1 and lactose, has been cited 149 times in papers by other scientists. If we were rewriting the paper now, we would have further important evidence to strongly support what we then wrote.

The question now for NZ is how it should respond to this dairy disruption while it is still at a relatively early stage. NZ can still be in the right side of the

I remember talking to a director of a well-known NZ food company shortly after the worst of covid. His business had survived the pandemic remarkably well and his reason for it was simple: multiple distribution channels and multiple markets.

In short, his business sold food ingredients as well as finished products into a range of countries. While it was tempting to double down on a singular business model, it was his company’s

disruption, but only if it completes the conversion to A2.

NZ could now get to 100% A2 within about eight years, but only with an explicit policy.

Readers may well say, so what? Why would NZ want to do that given the recent meltdown at Synlait?

In response, the evidence is clear that a2Milk, the company, continues to do very well from A2 milk supplied by Synlait. It is now back within the biggest 10 companies of any type on the NZX. However, neither Synlait nor its A2 farmers have made ongoing fortunes from it.

seemed obvious to me that farmers were getting the rough end of the agreement, but that reflected the reality of the power relationships.

Nevertheless, for quite some years everybody seemed happy. It took tough times to show that both Synlait and its farmers were getting the rough end of the deal.

Right now, it is Synlait’s farmers who produce the milk, it is Synlait that processes the milk, and it is Synlait that holds the highly valuable factory accreditation to supply Chinese-label a2 Platinum infant formula into China. Yet it is a2Milk as the marketer that makes all the money from this as it passes

NEXT GENERATION: Jerseys have the highest proportion of 2023-born pure A2 calves, at 86%.

The question now for NZ is how it should respond to this dairy disruption while it is still at a relatively early stage. NZ can still be in the right side of the disruption, but only if it completes the conversion to A2.

There is a lesson there. It is all about who makes profits along the value chain.

The Synlait partnership with a2Milk went well for close on 10 years, but now it is in big trouble. Problems have been brewing for several years but it is in the last year that the “problem pot” has boiled over.

It should always have been evident to anyone who did a detailed analysis, that a2Milk had managed to structure its agreement with Synlait so that a2Milk came first, Synlait came second, and the A2 farmers came third. Right from the start it

diversification that underpinned its resilience.

The global trading environment is not going to become any more stable. We will have more pandemics. We will have more conflicts. Perhaps most worryingly to dairy farmers, we will have alternative proteins.

To successfully operate in this environment, Fonterra’s farmers need a co-operative that can sell its milk consistently and at the best possible price. Not having

if a three-way agreement might be possible. But there was no chance of getting that agreement, given that a2Milk saw its existing agreement with Fonterra as effectively taking their biggest potential competitor out of the market.

To understand the opportunity that NZ now faces, the first point is to recognise that a2Milk has trademarks but no blocking patents. Accordingly, there must be renewal and exit clauses within the current licence that lead to an exit strategy with due notice. It would be remarkable if that were not the case.

The second key point is that some of the A2 beta-casein in NZ milk comes from cows that carry one copy of the A2 gene variant and one copy of the A1 gene variant. These cows produce both A1 and A2 beta casein in equal quantities. To produce pure A2 milk, all cows have to carry double copies of the A2 variant.

About 70% of the 2023-born calves carry double copies of the A2 gene variant. These percentage proportions vary between breeds, with Jerseys having the highest proportion of 2023-born pure A2 calves (86%), then KiwiCross (72%), then Friesians (59%).

Without getting into too much detail here, the big message is that farmers of all breeds could get to pure A2 herds within one cow generation, but only by explicit breeding policies.

it on to Chinese distributors.

However, the current failure of Synlait is not only related to the nature of its agreement with a2Milk; many things have gone wrong.

More importantly, the problems of Synlait have nothing at all to do with the overall importance of A2 beta-casein as a global dairy disruptor. Quite simply, Synlait lost the plot as it got carried away with debt-funded expansion.

Part of the agreements that a2Milk managed to stitch up with both Synlait and Fonterra were that these companies would supply A2 milk only to The a2 Milk Company. I introduced CEOs from two European dairy companies to Synlait and Fonterra, with both seeking long-term agreements to purchase A2 milk powder, but in both cases the NZ companies were tied to their agreement with a2Milk.

In the case of Fonterra, we were told that we would have to get three-way agreement that included a2Milk and so we headed across to Australia to see

any consumer brands within its business removes Fonterra’s ability to both connect with its consumers, to explain the value of its products, and ensure that its milk is not substituted for something or someone else’s.

If such a major change is required, you could also wonder how they got it all so wrong in the first place.

These breeding policies include only using bulls that are A2A2 and genetic testing of all calves. Using sex-selected A2 semen over 15-month heifers for the first round of mating can be a big help in pushing the programme along, particularly for Friesian herds that are lagging behind.

Inevitably, there will be a transition and there will continue to be some laggards. Hence, separating A1 from A2 milk at the factory gate will be necessary for quite some years, just as companies like Synlait and Mataura Valley Milk already have to do. During the transition, the amount of pure A2 milk would increase each year.

What is needed now is for a mature debate as to how the industry should develop an A2 future. That discussion needs to span the continuum of breeding, logistics, processing, health issues and marketing. Marketing is the big one.

There is a lot more that needs to be said and debated. I intend to write more about these issues.

This must be a key factor in any dairy company’s strategy going forward.

Just because doing something is hard, doesn’t mean it’s not the right thing to do. Building a competitive capability in any endeavour requires taking a few knocks. Fonterra has clearly taken the odd one as it has built up its consumer brands, but now is not the time to quit them. They are far too valuable to its farmers, both now and for the future.

Rural honorees on King’s Birthday list

Broadcaster, beekeeper and breeder among those honoured this year.

BROADCASTER Jamie Mackay was awarded an Officer of the New Zealand Order of Merit for his services to broadcasting and the rural community in this year’s King’s Birthday Honours.

Mackay is the founder and host of rural radio show The Country with Jamie Mackay, which recently celebrated its 30-year anniversary.

The King’s Birthday citation described him as a “pioneer of rural radio, driving the broadcasting of rural content nationally in mainstream media through New Zealand’s leading rural network show The Country.”

Also recognised in the primary sector were a pioneering farm consultant, dairy and drystock farmers, a scientist and a beekeeper.

Vincent Ashworth was named Companions of the New Zealand Order of Merit for services to agriculture. As a senior agriculturalist with the World Bank, Ashworth led missions to help farmers with food production in more than 30 developing countries. Recognising the lack of support for farmers on best practice farming, he established Ashworth and Associates in 1960, a farm management consultancy practice, the first of its kind in New Zealand.

Gordon Glentworth was named as an Officer of the New Zealand Order of Merit for services to the livestock and dairy industries.

Glentworth has been involved with artificial breeding and genetics with the Livestock Improvement Association and Livestock Improvement Corporation (LIC) for more than 35 years.

Glentworth has helped shape different breeding agreements, particularly for the Ayrshire breed to ensure this relatively minor breed within the New Zealand dairy cow population has survived and prospered.

Murray King was made a Member of the New Zealand Order of Merit for services to the dairy industry.

King has helped promote and develop New Zealand’s dairy sector through multiple directorships, particularly in the Nelson/Tasman district.

King has championed innovation

Zespri gives Te Brake the nod for CEO slot

ZESPRI has appointed Jason Te Brake chief executive officer.

Te Brake is currently Zespri’s chief operating officer and will succeed outgoing chief executive Daniel Mathieson who is leaving Zespri to join Driscoll’s, effective July 1.

Zespri chair Nathan Flowerday said Te Brake is an outstanding executive with strong commercial and stakeholder management experience.

“ He has a clear strategic vision to help Zespri and the industry achieve its immense potential and the operational expertise to ensure we do so.

“He has done an outstanding job of leading our global supply chain and the New Zealand supply business as our chief operating officer. He has also delivered

and collaboration through his directorships in several organisations, including chairing LIC from 2009-2023, Cawthron Institute and as Chairman of Waimea Irrigators Limited since 2016.

Allan McCaw received the same award for services to the apiculture industry

McCaw and his wife Maria have co-owned their Otago beekeeping and honey packing business since 1977. He has worked to support and promote the marketing of New Zealand honey, including the growth of the fledgling mānuka honey industry in the 1980s and 1990s.

He helped foster collaboration and formalise the apiary industry’s planning through a variety of leadership roles, including in the New Zealand Honey Packers and Exporters Association, Honey Industry Trusts, and Executive of the National Beekeepers

Association, of which he was made a Life Member in 2007.

As a member of the Bee Products Standards Council between 2005 and 2016, he assisted in developing agreed industry procedures for food safety and exporting standards, including monofloral mānuka.

[Mackay is] a pioneer of rural radio, driving the broadcasting of rural content nationally in mainstream media through New Zealand’s leading rural network show The Country.

Te Awamutu drystock farmer Sam Lewis was also made a Member of the New Zealand Order of Merit for services to business and the community

Lewis has been involved with farming and various community organisations in the Waikato/King Country since the 1970s. He was treasurer of Waikato Federated Framers for nine years, has chaired Affco New Zealand Ltd since 1999, is a director of Open Country New Zealand and is a former director of FMG Insurance.

Callaghan Innovation scientist Keith Jones also became a Member of the New Zealand Order of Merit for services to metrology.

The science of measurement, metrology ensures accurate and consistent measurements that support Kiwi exporters and consumers by underpinning regulatory compliance.

It also supports technological innovation, helps to enhance product quality, and underpins scientific research, and in doing so drives economic growth and improves quality of life.

exceptional results based off detailed planning and execution as the industry responded to the recent quality challenges and then reset to deliver a record crop this year.”

He has done an outstanding job of leading our global supply chain and the New Zealand supply business as our chief operating officer.

Nathan Flowerday Zespri chair

Te Brake said the opportunity to lead Zespri is an honour.

“I am hugely passionate and energised about the opportunities for the industry and it’s a real honour and privilege to be able to lead Zespri.

“The kiwifruit industry has an outstanding track record of

success, off the back of quality people, a world-class product and strategy and a commitment to innovating and tackling challenges together. It is one of New Zealand’s great success stories and I am incredibly fortunate to be

following in the footsteps of, and working alongside, some of the industry’s outstanding leaders.”

Flowerday acknowledged Mathieson’s contribution to Zespri.

“Dan has been a world class leader

at Zespri and has led the industry through both strong growth and considerable challenges. He’s someone who has a genuine care for people and our industry and we wish him every success in his new role at Driscoll’s,” he said.

RURAL RECOGNITION: Jamie Mackay, Sam Lewis, Gordon Glenworth and Murray King were among the King’s Honours recipients this year.

TOP PICK: Zespri chair Nathan Flowerday says Jason Te Brake, pictured, is an outstanding executive with the strong commercial and stakeholder management experience needed.

Room to grow at Bluff red seaweed facility

Seaweed production at the Bluff is going from strength to strength, despite challenges in marketing the end product locally. Gerhard Uys reports.

THE co-founder of the red seaweed growing facility in the Bluff says they are not trying to mimic the ocean but are trying to create conditions that optimise growing of the methane-reducing bioactives that live in seaweed.

Farmer’s Weekly reported Dr Steve Meller, co-founder of CH4 Global, visited NZ last week to give a presentation to a Parliamentary select committee tasked with receiving submissions on the Regulatory Systems (primary industries) Amendment Bill.

Meller is challenging government authorities on the irony of growing tonnes of the NZ native Asparagopsis armata seaweed in NZ, while being unable to sell it here as a methanereducing feed supplement.

Meller says CH4 Global chose the Bluff site as it had access to seawater and was already consented for extraction.

Seawater is piped to the site

and cleaned of airborne and waterborne pathogens before it is fit to grow seaweed.

The process of growing and commercially selling seaweed has four sequential stages, three of which are supported at the Bluff facility.

The hard part of business is turning something into a product that fits the purpose of the market, at the right price.

Steve Meller CH4 Global

There is a hatchery where young seaweed is kept free of contaminants and grown in small tanks as feedstock.

A portion of the feedstock is transferred to larger, 3000 litre vessels in a second growing out phase.

In this second phase the feedstock is grown to a certain level of maturity, where the biomass has achieved a certain size and the bioactives are at an appropriate level.

The seaweed can double in size every week.

This has to be managed as too much biomass can block the light, negatively affecting growth.

“When they are at the right stage ... we harvest them daily at the same rate as the growth rate, and have a sustained production cycle,” Meller says.

At the third stage the seaweed is processed with the goal to preserve the integrity and bioactivity of the active compounds.

The facility has a commercial freeze drier to process seaweed, but Meller says this process changes the integrity of material and up to half of the bioactives can be lost.

CH4 Global has filed IP on another process that preserves the

integrity of compounds. The other process is followed at a South Australian site.

The fourth stage is formulation and packaging, with the goal of putting a stable product in farmer’s hands.

Formulation and packaging is done in Australia.

“The hard part of business is turning something into a product that fits the purpose of the market, at the right price,” Meller says.

Report highlights NZ’s GE options

Richard Rennie TECHNOLOGY Genetics

OPTIONS for New Zealand to use genetic technology in response to climate change and restoring nature have been highlighted in a report from The Aotearoa Circle.

The Circle is a public private partnership established to examine New Zealand’s options and opportunities to restore natural environmental capital, working on new and emerging technologies and solutions across land and water.

The report, published by PwC NZ and the group, does not provide specific recommendations on the pathway NZ should take with respect to gene tech, but does compare and contrast NZ’s current position on the technology to that of the rest of the world.

It notes the difficulty NZ researchers face to meet this country’s current criteria for trialling and releasing genetically modified organisms.

However, there are also nine genetically modified food sources that are available in NZ, including GM potatoes soy, wheat, corn and rice.

NZ tends to sit at the extreme end of process approval in terms of caution, alongside the European Union.

Other trading partners, including Australia, the United Kingdom and the United States, tend towards a more moderated, tiered approach to gene tech approval.

Only Canada sits at the most liberal end of the approval spectrum, taking a “traits based” approach to the organism, regardless of the process use or change made.

Examples highlighted in the report on the tech that NZ could

use include rapid-flowering apple trees, high condensed tannin clovers and sterile Douglas fir trees.

A shift in other countries’ regulatory environment could see the EU move towards more of a tiered risk system.

The report’s scenarios highlight some of the risks facing NZ as other countries start to adopt GE. Alignment with a more tiered risk approach could mean NZ retains its competitive advantage as a food producer, while non-GE products may also meet a specific market niche.

It also paints a scenario where NZ producers cannot meet some environmental standards by 2035 while other global suppliers can, because they have had the advantage of genetic technology to help them achieve that while NZ has not.

Aotearoa Circle CEO Vicki Watson said the intent

He says they need to sell methane-reducing products to farmers at a price that allows farmers to still make money, likely by getting a modest premium for the protein they sell.

A reasonable feed savings and the value of carbon on top of this should “add up to put money in farmer’s pockets”.

The Bluff facility has been in production for two and half years and has 10 staff members.

Some have aquaculture backgrounds, with others doing more manual labour.

CH4 global wants to add “analytical capability” to staff soon, as samples are currently sent overseas for specific types of analysis.

The site has a 300,000 litre capacity, with room to expand.

Meller says the Bluff site will never be a large-scale facility as it will not have large ponds to grow seaweed.

This is mainly because the water in Southland is too cold.

Heating water is also one of the site’s biggest challenges.

The site is there to provide products to commercial partners and will in all likelihood always operate, he says.

of the report is to inform recommendations, looking at what NZ could do with the biotechnology options emerging, rather than recommend what should be done.

She said the report’s questions came up in the course of other

work the Circle was doing in 2023 looking at NZ’s climate vulnerabilities to its food and agricultural sector. She said it was younger people who had raised questions about what options were available to the country in the course of that work.

JOBS: Site manager Tim Pope with NZ native Asparagopsis armata seaweed at its pompom stage. The site used to be a freezing works where many Bluff residents worked. The repurposing of the site is good for the community and job creation, Pope says.

Photos: Gerhard Uys

OPTIONS: The Aotearoa Circle report highlights some of the scenarios facing NZ when it comes to GE technology.

CHAIN: Dr Steve Meller, co-founder of CH4 Global, says the Bluff site will likely always be operational as it serves a specific purpose in the production and research chain.

TANKS A LOT: Young seaweed is grown in small vessels before being transferred to 3000 litre tanks. Besides light seaweed needs CO2. Some of this comes from seawater, but additional CO2 and other inorganic nutrients are added for optimal growth.

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Prior gains as young couple take award

MATHEW and Marilyn

Prior of Aorangi Farm in Makuri have been crowned the 2024 Property Brokers Tararua Sheep and Beef Farm Business of the Year as part of the Tararua Excellence in Farming awards.

The Tararua Excellence in Farming awards showcase people and businesses who work hard to make the region a great place to farm, work and live.

At a recent field day the couple welcomed 130 farmers to celebrate their achievement.

The Priors’ sheep and beef station, Aorangi Farm, covers 740 hectares, (640ha effective) of mostly hill country, with just 10ha of cultivatable land.

As a self-built business, their hard work, perseverance and innovation has resulted in a less traditional farm system.

A key element of their win is the driving success Mathew and Marilyn have implemented through shared hard work and intelligent development decisions.

“The competition was a great experience for us both.

“We were able to take a lot from the judges and some very constructive ideas were given,” Marilyn said.

“We think winning the competition will open opportunities for our future.”

The field day gave fellow farmers the opportunity to see the farm in action, exchange ideas and celebrate the enterprising couple’s achievements.

The Priors discussed how they have strived to build equity in their farming business.

Through setting strict saving goals and sticking to them, they have paid off a large sum of their borrowings over the past seven years.

They shared their sheep policy, which is based on buying replacement ewes, mating all terminal ewes and selling a mixture of store and fat lambs.

This enables more ewes to be lambed and reduces workload, rather than breeding replacements.

Cattle numbers are made up of a mix of bulls, steers and heifers, with the policy for the cattle based on a trading margin of about 380 weaners to 18-month cattle.

We worked all around the country gathering experience and saving money to go toward our goal.

The traditional approach on their class of land being steep hill country would have been breeding replacement sheep and running cows.

Mathew and Marilyn’s journey to Aorangi Farm was well planned.

They have been together for 25 years and always had the ultimate goal of farm ownership. “We worked all around the country gathering experience and saving money to go toward our goal.”

They started looking for farms

in 2013 when Mathew’s parents, Tony and Lynley, decided to sell their orchard and another property in Northland and implement their succession plan.

“After several years of looking at over 40 properties we found Aorangi, which suited our needs and was also an opportunity for Tony and Lynley to invest extra money.”

Limited by budget at initially $1.1 million cash to go forward, they were looking at 3000-3500 stock units, fertiliser history; basic figures like lamb percentages, how stock was marketed and the quality of them.

“We looked at 40-50 farms, were serious about six farms and put offers in on five of them.

“We are very proud and grateful for Tony and Lynley’s hard work and plan to successfully set up their three children with successful businesses and three amazing properties.”

Gary Massicks from BakerAg facilitated the event.

“It was a fantastic turnout, and farmers were really engaged throughout, even the 15mm of overnight rain couldn’t dampen the day,” he said.

“It’s brilliant to see outside the box thinking when it comes to farm policy.

“The couple has proven that if you want something hard enough and set clear goals, you can achieve it.”

Beef + Lamb NZ is a sponsor of the Tararua Excellence in Farming awards. BLNZ Eastern North Island extension manager Angus Irvine described the Priors as a “fantastic example of a hard-working young couple leveraging all opportunities

available with a strong focus on teamwork and intelligent financial decisions”.

The judges highlighted their work ethic as evident, driving the success of the business, with the couple enthusiastic and passionate about what they do.

“It is evident that teamwork is very strong between them, and roles are defined to lessen keyman risk.

“They think outside of the box and are focused on future cashflow performance utilising farm focus well with intelligent development decisions returning a good bottom line.”

The cost structure is extremely low, underpinned by their

hard work and doing all labour themselves with clear goals and objectives that are connected to their wider family vision.

The judges also applauded their community involvement, which includes strong involvement in catchment group and school fundraising ventures.

“Proactive management of balance sheets and notably some good decision making around interest rate risk has seen production and financial performance stable and consistent over the past five years.

“And they have managed to achieve work life balance; good family life with a big workload,” the judges concluded.

In an industry dominated by foreign drench companies, Alleva stands proud. Since opening the doors over a decade ago, our kiwi owned business has thrived thanks to innovative products and the support of kiwi farmers like you.

Annette Scott PEOPLE Awards

TEAM: The award-winning team, Mathew and Marilyn Prior, with their two children Jed, 9, and Taylor, 7.

Marilyn Prior Makuri

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Dansy and Greg Coppell won the Gallagher Innovative Farming Award at the 2023 B+LNZ Awards.

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Colorado, Lincoln link up on genetics

Annette Scott NEWS Genetics

LEVERAGING genetics to reduce environmental impact while exploring opportunities for research collaboration is the focus for a group of visiting academics and students from Colorado State University.

Agricultural academics Mark and Kellie Enns are on a six-month visit to New Zealand to unearth opportunities for collaborative research that includes improving profitability for farmers through providing new genetic tools.

The couple have been linking closely with innovative tools being developed through the Informing New Zealand Beef (INZB) programme and looking into how genetics could support selection of lower-methane-emitting animals.

Societal focus on the environmental impacts of livestock production has expanded research and development designed to improve sustainability.

“While changes in animal management are often indicated, genetic improvement may provide an additional route towards improving the environmental footprint of livestock production,” Mark said.

The Ennses are in NZ with a group of Colorado State University (CSU) students who are spending a semester studying at Lincoln University.

They have also been visiting NZ farms and attending breed organisation events with Beef + Lamb NZ’s genetics specialist livestock, Jason Archer.

“I’m an animal breeding geneticist, mostly focusing on

beef cattle,” Mark said.

“My focus is on giving breeders tools to make selection decisions which hopefully help make the next generation of progeny better.”

He said genetics programmes such as INZB are important because there’s opportunity in genetics to improve profitability for farmers in NZ and the United States.

“There are a lot of things we still don’t know about livestock, but we can potentially leverage genetics to reduce environmental impact.

“We have a lot going on back home around things like nitrogen excretion rates, from urine and faecal matter.”

There are a lot of things we still don’t know about livestock, but we can potentially leverage genetics to reduce environmental impact.

Mark Enns CSU

CSU has a research programme looking at methane production in cattle.

NZ researchers are also doing a great job around methane production in sheep.

“We are seeing there are opportunities to improve profitability in performance and give consumers something they want while also changing the way animals impact the environment.”

Enns was raised on his family’s wheat and cattle operation in Oklahoma and has a doctorate in animal breeding and genetics.

During the 1990s, he spent several years working in NZ for

what is now Pāmu’s genetics unit.

At CSU, he is a professor in the faculty of animal sciences and teaches courses in animal genetics and genetic improvement.

His primary research focus is on beef cattle adaptability, longevity, sustainability and genetic improvement in susceptibility to disease.

Last year, he was among the CSU academics who met with members of the INZB’s beef breeders study tour delegation that spent a day touring CSU’s research ranch in Wyoming.

He also serves on the board of the Beef Improvement Federation.

Kellie Enns is an associate professor at CSU, focused on training high school teachers in agriculture.

For the past 24 years, a cohort of CSU students has spent the US spring semester studying at Lincoln, accompanied by an academic mentor.

Kellie took on that role in 2016 and Mark was selected to be mentor for this year. They arrived in January with the 23 students and will head back to the US in June.

The Enns have been taking the opportunity to visit farms and attend field days.

“Visiting farms has been one of the highlights for us and people have been very welcoming.

“We joined the Angus tour, presented at Gore, attended a Hereford field day at Alexandra and visited a station in Mossburn.

“We are getting around and talking with people and hopefully facilitating some collaboration between CSU and BLNZ and some of the breeding organisations in NZ.

“We have some ideas of things

we might do that would benefit both NZ and US farmers especially in the area of sustainability,” the couple said.

Mark is keen on expanding student potential as he bridges the unique overlap between critical industry challenges and utilising robust data and analytic tools to help solve problems.

COLLABORATION:

Animal breeding geneticist

Mark Enns has some ideas that through research collaboration would benefit both NZ and US farmers.

Before returning home he will present an overview of the current state of beef production in the US, while also covering an overview of traits currently being investigated and of results indicating the potential for genetic improvement in beef production systems, in a forum session at Lincoln University.

How ‘ovis storm’ can devastate production

Neal Wallace TECHNOLOGY Pests

THE devastation being wrought on a sheep farm from an outbreak of sheep measles is a graphic reminder to farmers of the need to

keep managing the ovis tapeworm. Ovis management project manager Michelle Simpson said the farmer brought store lambs onto his property but when they were killed more than 20 were infected with sheep measles and condemned.

The farmer has encountered what she called an ovis storm.

An investigation concluded an infected dog brought the ovis tapeworm onto the farm. Testing has found the pasture is infected and will need to be quarantined from sheep grazing for 300 days.

“His long-term plans are having to change, he can’t winter lambs and is having to look at other options,” she said.

His infection rate within his flock is 41.9%. The national infection target rate is 0.5% and is currently at 0.45%.

Simpson said this case is a dramatic reminder of the need to maintain dog dosing and reduce other risks such as freezing offal or meat prior to feeding it to dogs and removing dead carcases.

An infected dog carries three to four tape worms and each tapeworm can drop 250,000 ovis eggs a day.

When ingested these worms infect sheep, which grow cysts that contaminate the carcase.

Often, only a few lambs in a flock become infected after eating a clump of worms.

Simpson said maintaining

regular dog dosing is crucial, even more so during duck-hunting season when off-farm dogs visit properties.

They can be dosed 24 hours prior to visiting a farm, which clears them of tapeworms.

A tapeworm has a 35-day life cycle, so if a dog is on a 30-day dosing cycle, she said, dosing with a pill must become routine and done on time.

“This can be big a big deal if they don’t add dog dosing to their to-do list.”

Auditing of dog dosing is to be included in Farm Assurance Plans.

The fact the national infection rate is so low indicates farmers are playing their part, but Simpson said the impact on the farm battling the current ovis storm indicates the risk and the scale of damage that could happen.

She said the risk of infected meat reaching markets is low because of rigorous inspection systems in meat plants.

Ovis Management is wholly owned by the Meat Industry Association and funded by meat processors who also provide the entity with infection data.

His long-term plans are having to change, he can’t winter lambs and is having to look at other options.

NOT WANTED: An ovis cyst is a reminder of the need to dose dogs for ovis tapeworms.

CONCERNED: Ovis Management project manager, Michelle Simpson.

Michelle Simpson Ovis Management

Hawke’s Bay needs help, and

The region’s sheep and beef farmers are still battling to get their heads above water after Gabrielle.

Sector perspective

Marcus Buddo

Buddo, a sheep and beef farmer in Poukawa, is chair of the Hawke’s Bay Rural Advisory Group, HB District rural councillor for Kahuranaki Ward and a Hastings Rural Community board member

YOU don’t have to go far to find a sheep and beef farmer doing it tough in Hawke’s Bay right now.

Nearly 18 months down the track, many are still in the thick of

rebuilding from the devastation of Cyclone Gabrielle and the costs they face to do this are, in many cases, proving untenable.

As a region we must find ways to financially back our farmers who are at risk of being left behind on their damaged farms.

I know of a summer dry hill country couple in the Mangaone River Catchment who face a price tag of in excess of $400k to reinstate their 370 hectare property. This includes over $130k alone in repairing fences, $50k replacing one half of the farm stock drinking water supply and over $52k to date reinstating tracks and culverts, rebuilding dams, and removing slips.

Insurance cover for this farm totalled around $100k.

These people were proactive from the outset in seeking external funding opportunities, a pursuit that culminated in $30k or a mere 10% of their total uninsurable losses.

This leaves close to $300k of repair work they need to fund, which means they are only doing what is critical, such as temporary fencing repairs (because not doing so leads to more financial losses).

Serious consideration is being given to the long-term viability of their farming model, and partially or even fully planting the land in

pine trees is being investigated as an option.

The issues facing the region’s farmers extend beyond Cyclone Gabrielle; the pressures are all around them. Take predominantly sheep farms, for example. Last year lambs were fetching $100-$120/ head, this year prices have dropped to $60-$70/head, which represents a 40-50% decrease.

It continues to cost farmers more to shear sheep than they could ever make back from the wool, but not doing so poses an animal health issue so it is not a cost they can cut.

Worm resistance is rife, and the ground moisture has been severely

low, albeit helped somewhat by the recent rain. The Hawke’s Bay Farming for Resilience Report released by the Ministry for Primary Industries indicates pasture growth for April was down 10% on average as farms approached winter.

The same report points out the predicted weighted average farm loss in Hawke’s Bay is sitting at $23.70/ha.

While revenue is down in almost every area, inflation continues to hit the sector hard with prices on inputs like interest rates, fertiliser, fuel and wages continuously soaring.

The region’s pastoral sector

is more productive than ever before, yet is going backwards. Profitability outlook for many is grim.

The farmers I am talking to are doing all the right things.

They aren’t new to challenges of weather, nor are they new to the uphill battle of rising costs and weak farmgate prices. But it’s the unexpected burden of costs brought about by Cyclone Gabrielle, on top of these factors, that is really pushing farms to their limit.

It is rough out there and these farmers need support. They are trying to do the right thing by adapting their business models wherever they can but in more cases than I can count this is simply not enough. There are issues at play that only money can solve, such as paying for digger drivers and fencers.

If there is any financial assistance available, be it from local or central government, now is the time to direct this to our sheep and beef farmers. We are talking about hardworking Kiwi farmers – important contributors to our Hawke’s Bay export-driven economy.

Right now, the future outlook of our region’s pastural farms is at stake and the bottom line is that financial support is critical to turning this around.

LONG LASTING: Nearly 18 months down the track, many Hawke’s Bay farmers are still in the thick of rebuilding from the devastation of Cyclone Gabrielle.

Black Hawk: The pet food backing New Zealand’s future farmers

Sweeping across 70,000 hectares of highcountry Southland, Glenaray Station is one of our country’s most significant sheep and cattle farms

It’s a vast landscape and no coincidence that farm manager Simon Lee chose premium dog food brand Black Hawk to fuel the 82 working dogs on the farm.

They’re also keen supporters of Growing Future Farmers (GFF), an immersive NZQA-accredited two-year programme for school leavers to kickstart their farming careers

Through the programme young farmers are placed with a knowledgeable and passionate farmer where they learn first-hand what it takes to run a working farm. They also participate in regular, hands-on group training sessions to learn key skills such as shearing and pup training.

Here’s how Black Hawk, Glenaray Station and Growing Future Farmers (GFF) are working together to empower the next generation of farmers - and their dogs

Pup training just the beginning

The great value of raising and training multiple dogs early in a farmer’s career is why GFF students are allocated a pup at the beginning of the programme

“Pup training days are great to attend. It’s the foundational work that forms one of the most important working relationships on a farm,” says Black Hawk Southern Farm Manager Andrew Harman.

GFF student Philippa (Phil) is settling into her placement at Glenaray Station. She says it was hard to “know where to start” with training her pup and still has lots of work to go

As well as pup training, Philippa has also participated in hands-on farm learning including chain sawing, first aid, butchery, cooking, and shearing.

Simon says Phil is doing well and taking farming in her stride.

“GFF is a fantastic programme that’s giving Phil a solid foundation of skill and knowledge to get her farming career going. We’re proud to be sharing what we know and do here at Glenaray to support her and the future of farming in New Zealand.”

The importance of nutrition

Black Hawk is a staunch supporter of the GFF programme and is proud to play a crucial role in fueling every pup’s growth and development. Every student receives a bag of Black Hawk food and other essential items to get them started, plus additional food during their programme

“At Black Hawk, we believe in giving working dogs the best possible nutrition. By supporting Growing Future Farmers we hope our contribution helps farming students choose the dog food that gives their pups the best start,” says Andrew

As part of their dedication to supporting the farmers of the future and fostering a thriving rural community, Black Hawk also visits regularly to discuss feeding guidelines and monitors the pups’ progress through regular weigh-ins and their transition to adult food.

Given that many of the students are experiencing farm-dog ownership for the first time, Black Hawk also passes on fundamental advice on responsible dog ownership such as worming, flea control and appropriate bedding

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The protein is derived from high-quality lamb and beef, rich in zinc and vitamin B12 which may help dog’s heart health and boost vitality. Black Hawk Working Dog also contains supplementary L-Carnitine to maintain lean muscles.

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Proudly supporting

Growing Future Farmers student Philippa Stratford, with Glenaray farm manager Simon Lee & Nicky Thompson

Philippa Stratford & Simon Lee, Glenaray Station

Cool customers dive into sheep genetics

Staff reporter

TECHNOLOGY

Sheep and beef

HEEP and beef farmers

SRussell and Mavis Proffit have a strong interest in research and development and were one of the first North Island farms to sign up for Beef + Lamb New Zealand’s Cool Sheep programme.

The world-first project, funded by BLNZ, the Ministry for Primary Industries (MPI) and supported by AgResearch, aims to give every sheep farmer in New Zealand the opportunity to use genetic selection to reduce greenhouse gas emissions in their flock.

The Cool Sheep programme’s environmental selection index will allow farmers to select for lowmethane-producing sheep as part of a balanced breeding programme with other important production traits.

The Proffits’ highly successful Raupuha sheep stud at Mahoenui in the King Country produces rams and bulls for commercial sheep and beef farmers around NZ.

The family have been breeding Perendales since 1977 and also run Romdales, SufTex and Suffolk. They have invested significantly in their breeding programme to produce elite facial eczema (FE) tolerant rams. The farm is also part of BLNZ’s Informing New Zealand Beef (INZB) genetics programme.

“I enjoy research and being able to help with that,” Russell said.

“I like to be able to give our clients options, so if someone is looking for a lower methane ram – for instance, if they are doing measuring for their meat company – then it’s good to be able to tick that box for them.

“I’m also interested to see if there was any link between methane production and facial eczema. So, in the first year we took rumen samples and FE tested before we ran the sheep through the chambers. It’s about building

up data until you have enough to analyse and that takes a few years.”

There has been significant interest in the voluntary programme among farmers. BLNZ is oversubscribed with farmers who want to use the portable accumulation chambers (PACS) to measure the methane emissions from their stud animals.

More than 20,000 rams have already been tested and interest has been expressed in testing a further 5600 rams during 2024.

The chambers are transparent polycarbonate boxes. Air samples are taken during the time the animals are in the chamber and the methane concentration is analysed.

“BLNZ bring the chambers to the farm and we put the sheep through in groups of 12 at a time,” Russell said. “For the first two to three years, they did it twice a year and now it’s once a year.

“It takes a couple of days. We weigh the sheep first and I try to get a good mix of range of sizes in each group. Then they go into the boxes for about 40 to 50 minutes and it picks up what gas they are putting out.

“In terms of outcomes from the programme, I would like to see us breeding sheep that produce lower methane but are efficient in healthy traits, with no compromise around growth and performance. Ideally an animal that eats less grass and still performs well.”

Dan Brier, general manager farming excellence at BLNZ, said the programme is progressing well.

“It is really pleasing to see the level of interest from breeders and there are lots of sheep out there now with a methane breeding value. We have provided guidance for farmers that want to select for low methane today, and in the future that will be easier with an environmental index.”

However, he advises that farmers should be cautious about selecting for low methane alone.

I like to be able to give our clients options, so if someone is looking for a lower methane ram, it’s good to be able to tick that box for them.

Russell Proffit Mahoenui

“Beef + Lamb New Zealand Genetics and most geneticists do not recommend that.” The ‘low methane’ trait will not be included in the NZ Maternal Worth (NZMW) index in the foreseeable future and the index is not affected by lowmethane sheep.

The programme builds on learnings from a 12-year programme funded by the Pastoral Greenhouse Gas Research Consortium and NZ Agricultural Greenhouse Gas Research Centre. Metrics from AgResearch’s Woodlands breeding flock also demonstrated in practice how

genetic gain is affected by adding methane emissions to the selection index.

“We learnt that low-methane sheep are leaner and have a slightly different fatty acid profile in their milk and fat. They have less carcase fat and an improved dressing out per cent. Highmethane sheep have slightly higher body condition scores.

“Low-methane sheep were also shown to have larger intakes than high-methane animals, despite high-methane animals having larger rumens than either the low-methane flock or the control animals.

“Sheep bred for low methane emissions as part of selection lines are also proving to perform economically better than sheep bred for high methane emissions. When using the NZMW index, the low selection line is around $12 more profitable than the high selection line, excluding any value on the actual methane.”

The NZ-designed chambers to measure sheep methane are

EARLY

increasingly being rolled out in other sheep-meat producing countries, such as the United Kingdom, Ireland and Australia.

Russell said that during an international trip with the INZB programme last year, including attending the 2023 Beef Improvement Federation Research Symposium and Convention in Canada, he found that methane was a hot topic of conversation.

“I was surprised by the amount of talk about methane at the symposium. We tend to think it’s just New Zealand that is worrying about it but the rest of the world is too.”

The project brings significant cobenefits for BLNZ’s wider genetics programme and will include setting up a system that can deal with hard-to-measure traits like meat quality and immunity more effectively.

As more breeding flocks are measured for methane, BLNZ Genetics and AgResearch will continue to monitor the impacts on commercial breeding flocks.

ADOPTERS: Russell and Mavis Proffit were among the first North Island farmers to sign up for Beef + Lamb New Zealand’s Cool Sheep programme.

LET’S GROW TOGETHER

WE’RE GROWING.

We’ve extended our tractor line-up with all-new models handpicked for the conditions here in New Zealand. We’ve expanded our dealer network to offer you more purchase opportunities and aftersales care. And we’re only just beginning. Ask us how we can help you achieve your farming goals and let’s grow together.

Work on facial eczema test continues

Annette Scott TECHNOLOGY Disease

ECONOMIC losses of more than $300 million annually across the sheep, beef, dairy and deer sectors could be significantly reduced with the development of a new facial eczema tolerance test.

Beef + Lamb New Zealand, in collaboration with AgResearch and dnature, shared findings with farmers on an online seminar, providing valuable insights into the Facial Eczema Tolerance Test currently in development as part of the broader Eliminating Facial Eczema Impacts (EFEI) programme.

The aim of the programme is to develop an affordable, accurate and animal welfare-friendly FE tolerance test.

The goal is to tell the difference between animals that are susceptible to FE and those that are not, using a blood or tissue sample.

FE is associated with a toxinproducing fungus, resulting in liver damage and in some cases severe sensitivity to sunlight.

Data shows economic losses to the sheep, beef, dairy and deer sectors are estimated at $332m annually.

BLNZ sector science strategy

manager Suzi Keeling said the webinar served as an update for farmers, particularly breeders, on the progress toward the new test.

A key impact of FE is due to its sub-clinical effects. That’s where farmers can’t see any damage occurring but the disease is present and can cause substantial harm.

“We are eager for its implementation, but thorough and proper research and validation is necessary, as any new test could impact current FE tolerance methods and outcomes.

We are eager for its implementation, but thorough and proper research and validation is necessary.

Suzi Keeling BLNZ

“We want to get this right,” Keeling said.

Currently, the in-vivo (inside the animal) methods for determining FE tolerance are unsustainable, prompting the search for alternative, more accessible approaches that minimise animal welfare impacts.

“While uncertainties remain, the commitment to a farm systems

approach ensures continued progress in managing FE in New Zealand,” Keeling said.

AgResearch principal scientist Axel Heiser discussed the challenging scientific work involved in developing the tolerance test for sheep, noting that success with sheep could pave the way for effective tests for other ruminants, such as cattle.

Despite the complexities of developing an affordable and accurate test, progress has been made, with two candidate biomarkers identified that could potentially distinguish between tolerant and susceptible sheep.

The next steps, being led by John Mackay at dnature, involve transitioning the markers to a test that a commercial laboratory could run, followed by large-scale validation testing.

If transitioning the test is unsuccessful, alternative options will be explored.

BLNZ’s farmer research advisory group (FRAG) member Warwick Lissaman said FE has typically been a North Island and northern Marlborough problem.

“However, what we know is that outbreaks can occur when conditions are right in a much wider geographical area.

“An outbreak in a naive flock could be a disaster, so it makes sense to be prepared and have

PROGRESS: While uncertainties remain, scientists say the commitment to a farm systems approach will ensure continued progress in managing facial eczema in NZ.

tools at the ready.

“The concept that a low-cost test could be developed to identify the most susceptible animals and remove them from our breeding flocks is something worth chasing.

“Ultimately, we know that forage science will be critical in minimising and/or eliminating the presence of fungal spores, but this is a long game.

“Genetic progress, being cumulative, is always worth pursuing,” Lissaman said.

BLNZ principal adviser animal health research Cara Brosnahan said the broader EFEI programme

tolerance test development is one part of the initiative to tackle FE in NZ.

Key milestones for the EFEI programme include efforts to differentiate between toxic and non-toxic species of the fungus to better determine risk to livestock, and studying the social impacts of FE on farmers and veterinarians to ensure support for them is in place.

Additionally, the Sheep Poo study, involving more than 200 farmers, has been invaluable in understanding the occurrence of FE nationwide, Brosnahan said.

FEDERATED FARMERS

Fears grow for drought-hit Hurunui

Adrought, poor returns and high transport costs have compounded to leave Hurunui farmers scraping the barrel for feed, with animal welfare becoming a major concern.

North Canterbury Federated Farmers president Karl Dean says farmers in the district are doing it tough and morale is low – but tougher times could be ahead.

“I’m really concerned about what’s happening with farmers right now, but my biggest worry is that, if we get an adverse event on top of this current adverse event, we’re going to see major animal welfare issues.

“A lot of farmers are just on the borderline of getting through with their feed levels, which means they’ll be in serious trouble if we get six inches to a foot of snow.

“I don’t want to see an animal welfare disaster if there’s a big snowstorm.”

Dean says, apart from the lack of rain, the biggest challenge for farmers is the cost of bringing in supplementary feed.

“They can find feed to bring in, but the cost of getting it to farm is more than the stock are worth.

“If you’re going to spend more than the animals are worth, you might as well put them on the truck to the works, and even that is costly.

“Nobody has any money because of the economic conditions and low prices, and paying through the teeth for transport is just not an option for many farmers.”

Dean says some of the older farmers in the district are telling

THE WORST: Hawarden sheep and beef farmer

Dan Hodgen is reluctant to complain but says the current conditions are as challenging as he’s seen in his 20 years’ farming.

him this autumn feels very similar to autumn in 1973 and 1992, which saw some of the South Island’s largest record snowfalls.

“Those older guys who went through those events lost half their flock. They just got hammered.”

Hawarden sheep and beef farmer

Dan Hodgen is reluctant to complain – pointing to farmers doing it tough in other parts of the country – but he admits the current conditions are as challenging as he’s seen in his 20 years’ farming.

He’s had only about 40mm of rain this year, including 17mm in March and 8mm in April.

“If it was just this dry, most people around here would handle it pretty well because we’re used to it,” he says.

“But an autumn drought running this long creates a few problems, and it’s those other factors like low lamb

prices, high interest rates and rapidly rising expenses that take a lot of our options out.”

Hodgen says no one is doing it easy, but it’s particularly the local dryland farmers who are battling.

“In a normal drought like this, we’d potentially look to kill the bottom 10% of our ewes – and that will probably come in time – but whereas we might be getting $130140 for them three years ago, now we’re looking at $65-70.”

The lack of rainfall means winter crops haven’t taken off, meaning Hodgen is yielding only three to four tonnes of fodder beet crops versus the usual 18 to 20 tonnes. Many grass and cereal crops are hardly even visible, he says.

Like other farmers in the district, he’s having to make some hard decisions.

“The writing was on the wall pretty

A lot of farmers are just on the borderline of getting through with their feed levels, which means they’ll be in serious trouble if we get six inches to a foot of snow.

Karl Dean North Canterbury Federated Farmers president

early, so we sold store lambs instead of finishing them, and a lot of people here have done that, which is a big hit to income.

“I sold some steers and heifers the other day and, if I’d finished those like I do normally, I’d have got roughly another $20,000.”

He says he’s bought in barley, and other farmers are bringing in

baleage, but it’s “bloody expensive” to get feed in.

“And as that supply gets further and further away, it gets more and more expensive.”

Hodgen says the situation is taking a toll on farmers’ mental health.

“It’s hard when you’re doing the mundane stuff – the same thing day in and day out – when the outlook for a positive economic return is dubious at best.

“Different people handle it differently. You’ve got to make sure you have good people around you and carry on with a bit of outside life, just for some clarity and balance.”

Ben Moore, who coordinates Federated Farmers’ Feed Coordination Service, has been fielding calls from a number of farmers in North Canterbury.

“That’s a mix of people needing feed and looking for grazing.

“From those calls, I’ve had five people ask to be contacted by the Rural Support Trust for help and advice.”

Moore is also concerned for farmers and animals in the district.

“They’re starting to scan ewes and when they find ewes with triplets, they’ll cull those ewes because they won’t be able to feed those triplets through winter.

“It’s getting to that stage where people are having to make very hard decisions.”

Feds: Budget brings no frills or surprises

Federated Farmers president Wayne Langford says this year’s budget, released May 30, brought no frills or surprises.

“Just like the average farmer’s budget, the Government doesn’t have a lot of spare cash laying around to spend on nice-to-haves and optional extras,” Langford says.

“Money has been really tight for farming families and rural communities for a while now, and

The road to New Zealand’s economic success isn’t paved with more red tape, regulation, and compliance costs – it’s paved with milk, meat, fruit and grain.

it looks like that economic reality is starting to hit home for the rest of the country.

“When our farmers are doing well, the New Zealand economy seems to do pretty well too, but unfortunately, farmers have been doing it really tough this season.”

Langford says farmers have been struggling with reduced incomes, rampant inflation and out-of-control compliance costs.

“We’re pleased to see all of the non-negotiables are still there, with continued funding for frontline biosecurity, catchment groups, and the cyclone recovery,” Langford says.

“Unfortunately, that’s as far as the money stretched.”

Langford says the Government is also continuing to invest in research to help farmers manage their environmental footprint.

“The road to New Zealand’s economic success isn’t paved with more red tape, regulation, and compliance costs – it’s paved with

milk, meat, fruit and grain.

“We need to be unshackling the potential of our productive sectors, the people who get out of bed each morning to milk cows, shift cattle, harvest crops and pick fruit.

“Those are the people who create jobs and earn an income for our country, which pays for all those other things like schools, roads, and hospitals.”

Farmers have never been looking

PRIORITIES: Farmers are looking to the Government to cut red tape and compliance costs, not give handouts, Wayne Langford says.

for a handout, Langford says.

“We just want to see the Government continue to cut unnecessary red tape and compliance costs that have been bogging us down.”

Going to Fieldays? Don’t miss the Rural Advocacy Hub

Farmers attending this week’s National Fieldays at Mystery Creek should make sure a visit to the new Rural Advocacy Hub is near the top of their to-do list.

“This is where all the big conversations about the future of farming are going to be happening,” says Federated Farmers president Wayne Langford.

“We’re constantly hearing from farmers that they want to see our different sector groups working more closely together, so we’ve taken that feedback on board.

“We’ve pulled together all the different organisations advocating for farmers and championing their interests as one team, under one roof, for the first time.”

Langford says farmers will be able to discuss the issues of greatest concern to the sector: rural banking, emissions pricing, methane targets, and freshwater rules.

The Rural Advocacy Hub, located on site D70 in the Gallagher Building, is a collaboration between Fieldays and Federated Farmers.

This is where all the big conversations about the future of farming are going to be happening.

Wayne Langford Federated Farmers president

Other exhibitors include Groundswell, Young Farmers, Rural Women, Future Farmers NZ, Food & Fibre Youth Network, Farmers Weekly, Ethical Employers, and Fencing Contractors Association NZ. New Zealand National Fieldays Society chief executive Peter Nation says it’s great to be able to work alongside Federated Farmers to

deliver a dedicated advocacy space like this.

“Federated Farmers are New Zealand’s leading rural advocacy organisation, so they were a natural fit for us to partner with to bring the Hub to life,” Nation says.

The Hub will be formally opened at 11am on Wednesday June 12 by Agriculture Minister Todd McClay – but there will be a range of speakers appearing throughout the week.

“Associate Ministers for Agriculture Andrew Hoggard and Mark Patterson, who will be no strangers to farmers, are both set to address the crowd,” Langford says.

“We’re also expecting appearances from Minister of Transport Simeon Brown, Minister responsible for firearms Nicole McKee, former Prime Minister Chris Hipkins, and Labour Party agriculture spokesperson Jo Luxton.”

Wayne Langford Federated Farmers president

LET’S TALK: The Advocacy Hub will be formally opened at 11am on Wednesday June 12 by Agriculture Minister Todd McClay

Survey shows broad support for repealing freshwater rules

Most New Zealanders agree that our national freshwater regulations are overly restrictive and should be repealed, a new survey shows.

The poll of 1000 randomly selected New Zealanders found half of those surveyed backed a repeal of the previous Labour Government’s rules for winter grazing and stock exclusion.

“Federated Farmers have led the charge against these heavy-handed, one-size-fits-none regulations from day one,” the organisation’s vice president and freshwater spokesperson Colin Hurst says.

“Farmers care a lot about freshwater quality and the environment, and we want to see improvements, but these rules were never going to work.

“The Government needs to work with farmers to ensure rules are practical, cost-effective, and will actually achieve the result we all want to see.”

That means taking a localised approach where rules are put in place to address the unique challenges of each catchment and the priorities of the local community, Hurst says.

“Federated Farmers has undertaken a number of polls over the last few years using an independent market research firm. This allows us to get a much better understanding of what the public think on agricultural issues.

“Time and again we have found that, rather than a so-called ruralurban divide, most Kiwis actually

Federated Farmers have led the charge against these heavy-handed, one-size-fitsnone regulations from day one.

agree with Federated Farmers’ policy positions on things like water, climate and over-regulation of farming.

“It is good for farmers to know the public is on their side, but this data also provides confidence for politicians to realise most Kiwis support what they are doing in unwinding these rules,” Hurst says.

The poll, conducted by Curia Market Research from 5-7 May, asked if the new Government should repeal the freshwater rules.

Half of all respondents agreed with repealing the rules, while 29% opposed and 22% were unsure.

People who party-voted National, ACT and NZ First were most supportive, but even among Labour voters support for repeal was at 32%, and among Greens at 24%.

The survey also probed whether New Zealanders believed the concept of Te Mana o te Wai, and a requirement to involve tangata whenua in managing freshwater, should be withdrawn.

Of those surveyed 46% supported removing these requirements, 31% opposed, and 24% were unsure.

Hurst says the results don’t surprise him and he believes there are a number of factors driving public sentiment.

“In these challenging economic times, I think there is a real recognition from the public of the importance of agriculture to New Zealand,” Hurst says.

“At $57 billion of export earnings, farming is the economic powerhouse and earns us the income our country needs to pay our way in the world.

“When farmers are doing well, the rest of the country seem to do pretty well too – but farmers have been struggling lately.

“A big part of that is the needless red tape and compliance costs that have sucked the confidence out of the sector and dried up investment in the sector.

“Those chickens are now coming home to roost as farmers produce less and can’t afford to spend any money. It flows through to the rest of the economy.”

Hurst says most farmers care deeply about the land and waterways.

“I’ve never met a farmer who didn’t care about the environment and making improvements over time. We want to do the right thing.

“Sure, there will be some bad apples or laggards, and we need rules to push them along – but don’t use that as an excuse to punish the vast majority.

“We need to make sure we’re taking a balanced and measured approach that protects the environment while still allowing farmers to farm.

“The environment is important but so is creating jobs and growing our economy. Families need to be able to put food on the table.”

He says the poll results may also reflect a general feeling of frustration with Government overreach in many aspects of New Zealanders lives.

“You need to move at a pace that people can keep up with and afford,” Hurst says.

“It’s not like farmers haven’t been investing huge amounts of money to improve environmental outcomes on their properties.

“We’re seeing similar costs pushed down on councils who are being forced to accelerate infrastructure investment. That cost is showing up in peoples rates bills.”

Hurst says the poll results show the coalition Government has the support of most New Zealanders as they look to wind back some of the Labour Government’s poorlythought-through regulation.

“My message to farmers struggling with huge compliance costs, drought, and inflation is to hang in there.

“Federated Farmers have got your back and we’re working hard to cut through some of the red tape that has sucked the joy, and profits, out of farming.”

VOICES HEARD: Colin Hurst says findings from a survey on freshwater will give politicians confidence they’re doing the right thing by unwinding the previous government’s heavy-handed regulations.

Colin Hurst Federated Farmers vice president

NURTURING: Colin Hurst says most farmers care deeply about the land and waterways.

Council accused of fleecing farmers

Charging rural property owners six to eight times more in general rates than people in towns is nothing less than daylight robbery, a Wairarapa farmer and rates campaigner says.

Jim Hedley claims the way South Wairarapa District Council (SWDC) is apportioning its costs is grossly unfair.

“A farming family is not using six times more council services than a family in a town in the same district.

“So why is the rural property owner paying six times more in general rates than the urban property owner?

“We’re being fleeced, and it’s downright unfair,” Hedley says.

Using SWDC’s own rates examples, the owner of an average-value property in the town of Featherston will pay $703 in property valuebased general rates.

Meanwhile, the owner of an average-value pastoral grazing property will pay $4608 in general rates, and an average dairy farmer more than $5700.

“It’s abominable that most district councils in New Zealand are dividing

costs between rural and urban landowners in the same way,” says Hedley, who has for years tackled SWDC over its revenue-raising approach and rates increases.

SWDC’s proposed rates increase for 2024/25 of nearly 15% comes on the heels of a 19.8% hike last year.

As well as the cost escalations, Hedley’s argument is that land valuebased (LV) rating – and the capital value (CV) system SWDC intends moving to – is an outdated and unfair mechanism for apportioning costs.

“There are other methods councils could employ to better align costs of services to those who benefit from them. Those methods are underutilised or rejected outright.”

Hedley says most council services –

Why

is the rural property owner paying six times more in general rates than the urban property owner?

Jim Hedley Wairarapa

farmer

Flo ck House

pipes, libraries, parks and all the rest – benefit people, not property.

Just on 66% of the South Wairarapa district’s population is urban, while 34% is rural.

“But in terms of the capital value of property (land + buildings), it’s pretty much the reverse,” Hedley says.

SWDC hasn’t proposed using differentials (a different rate per dollar of property value) on their capital value general rate to alter the proportion of general rates levied on various land uses (residential, rural, commercial, lifestyle, etc).

“The nature of a farm is that it has a lot of land so, under our land or capital value-based rating system, farmers are walloped by council rates.”

SWDC has taken some steps to spread its costs more evenly across all ratepayers. It has a uniform annual general charge (UAGC) of $428, though this is a reduction from $1005 last year, Hedley notes.

It’s also bringing in a roading targeted rate of $177 per property. The rest of roading rates are on capital value.

There are also targeted rates for water, wastewater, footpaths, refuse and recycling, stormwater and 80% of economic development, levied only on property owners who receive those services.

Legislation allows the UAGC and targeted rates to cover 30% of a local authority’s costs, but SWDC has set them at only 21%, putting the rest on property value-based general rates.

The council uses a $555 refuse and recycling annual charge (a service not available to many rural properties), so the effective percentage is down to 9%, Hedley says.

“All the other council’s services and costs – governance, communications, district planning, health and noise control, libraries, senior housing, swimming pools and so on – are covered by the general rate.

“Farming families don’t use those services six to eight times more than town residents but that’s the quantum they’re charged for.”

Hedley was irritated by one councillor’s comment that a farm could simply increase its production to cover the higher rates bill.

“Clearly that councillor isn’t aware of the financial pressure many farmers, especially sheep farmers, are under right now.

“And that comment would be akin to me saying, ‘well, an urban resident could just go out and get a higher paying job to cover his rates’,” Hedley says.

Hedley, and Federated Farmers Wairarapa, argued in their submissions on SWDC’s Enhanced Annual Plan that there is a fairer rating method.

Councils in any district could have a differential on population, Federated Farmers says.

They can take the population of a given area of property use or zone – say farmland or rural, urban residential – and base a differential factor on the proportion of population within it.

Properties with a rural or farming land use would have a lower population than urban areas, and so lower use of council services, and a lower differential on property-value based rates is justified, Federated Farmers says.

“Councillors don’t like it, because most of their voter base is in the towns, but sharing out council costs should be about fairness,” Hedley says.

“A uniform annual general charge and targeted rates up to the 30% maximum, and the rest on general rates or a uniform annual charge, with a differential based on population, would achieve that fairness.”

Come and celebrate 100 years with us.

We will be gathering on 20-21 July 2024 to commemorate the 100th anniversar y of Flock House opening For anyone with a passion or link to its histor y we would love you to join us.

Photo

CHANGE THE SYSTEM: Councils are under-utilising fairer ways of apportioning their costs across ratepayers, Wairarapa farmer Jim Hedley says.

WHAT’S FAIR? Jim Hedley says most council services benefit people, not property.

Gardening and farming - five titles with options

Located only five kilometres from Raetihi and within close proximity to Ohakune, this 107 7 hectare (more or less) flat farm features free draining Ohakune silt loam soils ideal for gardening or stock finishing The property is suitable for a range of farming activities including root and fodder cropping and intensive livestock operations As well as supply from the Raethi Water Scheme, the Makotuku River runs through the farm providing a clean and reliable water source for any future developments Access off both Mangarewa Road and State Highway 4 leads to a large four-bay facility with attached three-bay implement shed, a separate office building and a large round barn plus cattle handling facilities Add a four-bedroom home with attached carports and a single garage bayleys co nz/2900692

7349 ha

(will not be sold prior)

2pm, Tue 2 Jul 2024 Bayleys 16 Goldfinch Street Ohakune View by appointment Pete Stratton 027 484 7078 peter stratton@bayleys co nz

R O P E R T Y F O R 2 5 Y E A R S

Raetihi 7313 Makotuku Valley Road (SH4)

A s w i n te r l o o m s fo r m a ny i n t h e r u ra l

s e c to r h i t t i n g a re s e t b u t to n to t a ke

t i m e to re c a l i b rate p ro b a b l y i s n ’ t a n

o p t i o n g i ve n t h e i n ev i t a b l e l i st o f t a s k s

to g e t t h ro u g h

Wh i l e i t i s i m p o r t a n t to co n f ro n t t h e

c h a l l e n g e s o f w i n te r h e a d o n , i t i s a l s o

a g o o d t i m e to p u l l t h e fa r m b u s i n e ss ’s

l o n g te r m st rate g i c p l a n o u t o f t h e b o t to m d rawe r

Rural landowners who take time to consider their options over the next few months are likely to be better prepared for the opportunities that appear throughout the coming spring

Balancing the current day realities with the past performance of the rural sector, and utilising the crystal ball, will all be important considerations for the longer-term strategic planning. After all, investment in rural land is never for one season but is often an intergenerational investment that weathers many cycles.

Th e r u ra l m a r ke t a c ro ss t h e b o a rd ex p e r i e n ce d a s l ow d ow n i n a c t i v i t y fo l l ow i n g t h e s p r i n g o f 2 02 2 , a n d a c t i v i t y l eve l s t h ro u g h a l l t h e s u b s e c to r s (d a i r y, p a sto ra l , h o r t i c u l t u re, a n d v i t i c

This is not surprising given the more challenging macro environment that has surrounded those operating behind the farm and orchard gates in the past 12

months But while it is the reality of today, at some point, it will become a cycle of the past.

As we reflect on the transactions in the rural market over the past 12 months there are common themes that continue to come through and there are also what would appear to be, some more recent considerations underpinning values. Scarcity of available land use

The national dairy milking platform is arguably at its peak, and this appears to be an underlying driver of holding value as activity reduces In this regard, there has been little movement in the upper end of the mid-range average value per hectare for dairy farms in the key dairying regions

Quality always appeals

Buyers are paying closer attention to the quality of location, infrastructure, and future proofed nature of the assets overall where the infrastructure is nearing the end of its economic life The variability of value will often be driven by location first and then the overall quality of the assets

Timing matters

The market dynamics in play are presenting challenges for many rural

landowners and operators behind the farm and orchard gates. As the market tightens, those with the energy, a succession plan, age, health, and financial capacity are likely able to strategically capitalise on opportunities

The environment is here to stay

It could seem the incumbent government has provided breathing space to consider the regulatory operating environment impacting rural landowners But fundamentally, the environmental considerations are often high on the priority list for buyers

Having consents, water access rights or other requirements to operate removes uncertainty, and generally having certainty, removes the opportunity for discounting

Taking time to put our Bayleys Rural Insight report together is all part of our underlying commitment to provide rural landowners with the best outcome, so you are better informed about the decisions you make today and in the future Afterall, the farm or orchard is often the biggest asset, so it deserves the best.

This 232.72 ha has a rare ability to produce high levels of feed and ideal ground conditions in both the summer and winter. The property has the infrastructure and scale to be a stand alone operation or continue to add

to your existing business. The contour of the property is predominantly flat with approximately 180 ha mowable 10 ha of grazable dune and an additional 42 ha of maturing pines with history of excellent silviculture The property has undergone extensive development in the past 10 years including refencing, metal central races, new bore, development of feed pad areas, and a regrassing/cropping program Improvements include a three bedroom home with an array of support buildings, a large four bay shed (192 m2), a three stand woolshed, and new sheep and cattle yards. Opportunities of a farm this tidy seldomly present themselves to the market.

TE AWAMUTU, WAIKATO 1972 Te Rahu Rd

Flays Berry Farm - Berryfresh

Founded in 1984 by Murray & Anne Flay this 29.5ha of premium flat free-draining horticultural land produces fresh and frozen raspberries, blackberries and boysenberries for local and international markets. The business is well known and supported both locally and across the country. The recognized brand has established distribution lines and a reputation for quality. A retail shop provides fresh and frozen berries, ice creams, a range of Pepler's products and a 'pick your own berries' experience. This lifestyle/family business is primed for

and increased profitability.

Auction 1.00pm, Thu 4th Jul, 2024, 54

(will not be sold prior)

View By appointment Web pb.co.nz/FR184441

Ted Shannon M 021 833 536 E ted.shannon@pb.co.nz

Stuart Sutherland M 027 452 1155 E stuarts@pb.co.nz

Blair Cottrill M 027 354 5419 E blair@pb.co.nz

Kimbolton Road, Feilding

Auckland based Partnership Manager

We’re looking for a great communicator with excellent customer service skills who loves sales to super serve our clients in Auckland and Northland.

In this ‘best of both worlds’ role you’ll represent rural New Zealand’s most innovative agri-media and insights business, but live in the city!

The leading candidate will be highly energised by a weekly sales cycle full of sales opportunities across print, digital, podcast, video and our sought-after subscriptions.

You’ll work from home but will be highly involved with the rest of the sales team on a daily basis via remote messaging and meetings, so you must be both self-motivated and a great team player.

We’ll set you up with a vehicle and fuel card, laptop and phone, so nothing can hold you back from visiting clients to sell the AgriHQ dream and fly the Farmers Weekly flag.

At least three years sales experience is required to apply. For more information about the role contact hr@agrihq.co.nz, visit agrihq.co.nz/careers or call our National Sales and Marketing Manager Andy Whitson (027 626 2269).

Livestock

SALE TALK

• I tell dad jokes but I have no kids. I’m a faux pa. I’m afraid of speed bumps, but I am slowly getting over it.

• I’m so good at sleeping I can do it with my eyes closed!

• Some people think prison is one word, but to robbers, it’s the whole sentence.

• I used to be addicted to soap, but I’m clean now. Are people born with photographic memories, or does it take time to develop?

Spring is here! I got so excited I wet my plants!

• I was at the park wondering why this frisbee kept getting bigger, and then it hit me.

• I had a dream about being a muffler. I woke up exhausted.

• My ex-wife still misses me, but her aim is improving. Where there’s a will, there’s relatives.

Sure I drink brake fluid, but I can stop anytime I want.

• Some moms let you lick the beaters. Good moms turn them off first.

• I used to be addicted to salt, but now I’m cured. Silence is golden, unless you have kids... then it’s suspicious.

She has looks that kill, and she cooks the same way.

WOODBANK BULL SALE

COMBINED BREEDERS HIGH BW SALE

Friday 14 June | 12.00pm

Vendors:

• Murray & Julie Dickson

• Bruce Rowe & Family

Les Gale & Family

BW’s up to 517, PW’s up to 790.

Comprising:

Te Awamutu Saleyards, Paterangi Road, Te Awamutu

• 17 Incalf Spring Calving Cows

• 4 Inmilk Autumn Calved Cows 23 Incalf Spring Calving Heifers

• 4 Rising One Heifers

This offering of high genetic merit animals includes 25 that carr y AI contracts for either their current pregnanc y or they have contract interest for upcoming season’s mating

Numerous bulls have been selected by AI companies from the cow families represented within this catalogue

The Dicksons have sold animals the last two years that have generally per formed at a high level around the countr y

This sale gives you a unique oppor tunity to purchase females with highly sought after genetics that will give your breeding program a boost

Online bidding available via bidr Full lot information and Catalogues available on Agonline and bidr.

Andrew Reyland 027 233 7092

Jamie Cunningham 027 583 3533

Wednesday 19 June | 11.30am

Morrinsville Saleyards

A/C Stella Holsteins

• 40 Predominantly Friesian Incalf Cows, BW 149, PW 230

• 40 Predominantly Friesian Incalf Heifers, BW 185, PW 202

Cows calving from 13 July to AB Tailed with Hereford bulls

Heifers calving from 20 July to Jersey bulls

A/C Client

• 30 Predominantly Friesian Incalf Heifers (Sold as unrecorded). Complete replacement line of Samen Bred heifers from vendors herd that was sold last year 11 years Samen breeding

• 70 Predominantly Friesian Incalf Heifers, BW 217 PW 241. Purchased last year as R1yr replacements

Calving from 10 July to Jersey Bulls, Bulls out 20 December

All heifers are extremely well grown and show great type and come for ward in ver y good condition, with many been 500kg plus

If you are wanting top quality cows and heifers we recommend you attend this sale Online bidding

Wednesday 19 June | 11.00am

Master ton Saleyards

Comprising approx. 1200 Ewes

Followed by On Farm Sale at Tarewa Farm

On A/C of R & S Hay 1470 Master ton Castlepoint Road, RD 9, Master ton Capital Stock, proper ty sold

Lifetime of breeding, only available due to farm sale Wai iti genetics Robust genuine hill countr y ewes 1130 2th Romney ewes SIL

Key: Dair y Cattle Sheep O ther

China still hauling on the handbrake

Reece Brick MARKETS Export

IT’S been a year to forget for the industry. Everyone’s squeezed between rising costs and less money coming in, with Mother Nature putting the boot into parts of the country that haven’t seen enough rain this year.

wouldn’t be surprising if we’re in the same position six months from now.

If anything, sentiment towards the Chinese market has worsened following a recent major food expo. Key buyers have reaffirmed that consumers are reluctant to spend while confidence in the economy is low and the property development sector keeps folding in on itself.

The industry is well aware that we need to get a lot more cash into schedules, especially lamb and mutton, or the sector will continue to struggle and shrink. The question is whether that’s realistic before we reach next year.

The No 1 handbrake in terms of overseas markets is China. It’s a problem for the sheep industry since it takes the bulk of our lower-value cuts, and few viable alternative markets will take these cuts, at least in the volumes we need.

For beef, we rely on China to pick up a lot of prime and secondary cuts, which are key for driving revenue on steer and heifer carcases. The United States beef market can be just as big in terms of pure volume, but it mainly takes grinding beef and trimmings, which mostly support bull and cow values.

Unfortunately, we’re yet to see any sign of improvement from China, to the point where it

There were already signs of this beforehand as lamb exporters reported slightly weaker prices on key cuts, even though our lamb kill is winding down. The lifting exchange rate hasn’t helped anyone’s cause, chewing 5% out of NZ dollar returns over the past six weeks.

The supply side of the equation doesn’t help the outlook into China either. South America shipped a record 643,000 tonnes of beef to China through JanuaryApril. To give an idea of the scale, our exports to China over that time were only 63,500t.

Although South American beef doesn’t directly compete with us,

its presence does have flow-on effects for lower-value cuts.

Brazilian beef production is forecast to decrease going forward, but it’s unlikely the flow of beef to China will slow.

With the vast economy in the doldrums, everyone is being squeezed between high costs and low returns, and there doesn’t seem much light on the horizon. If anything, sentiment towards the Chinese market has worsened following a recent major food expo.

In March, 24 Brazilian beef processing plants gained approval for export to China, and plans have been announced to fast-track the approval of others that didn’t make the cut in the first round.

All of this is in addition to five key Australian meat plants also regaining access, which had been blocked in 2020 following a spat between the Chinese and Australian governments.

The torrent of lamb coming out of Australia doesn’t help the forward outlook, although New Zealand exporters have reported lifting prices in the European Union and United Kingdom, where we are partially sheltered from Australia due to either a better free trade agreement (the EU) or because the smaller size of our lamb suits buyers better (the UK).

Since data has been available, Australia’s weekly lamb kill (excluding Western Australia) had only broken 420,000 six times before this year.

It’s gone over that in seven of the past eight weeks.

While this could mean this season’s lamb kill is burnt through quicker than expected, it’s reported that scanning results

have been very high in key sheepproducing areas, so next season will likely see more of the same. Obviously pulling in more money from overseas would help New Zealand farmers, but higher operating costs and general inefficiencies in our processing sector are keeping cash from flowing to the farmgate too.

For example, through the first half of 2018, lamb was selling overseas for a little less than what it’s made this year, yet schedules were around $1/kg better back then. Admittedly that season was a poor year for meat company profits, but it gives a rough indication of how value is being lost along the supply chain.

NO MOVEMENT: We’re yet to see any sign of improvement from China, says Reece Brick, ‘to the point where it wouldn’t be surprising if we’re in the same position six months from now’.

Weekly saleyards

Another good roundup of 200-head of mixed-age in-calf cows accounted for almost half of the yarding at Stortford Lodge on Wednesday. It was a nervous wait as the last of the drafting and yarding took place and the benches in the rostrum remained largely empty but good competition from online and the few in-house bidders gave returns a lift by 10c/kg. Most cows were put to an Angus bull, calving early October, and stayed local but there was demand from Waikato, too. The heavier girls, 637-684kg, returned $1610-$1840 and the rest, 494-625kg, made $1265-$1630.

R2 traditional, dairy-beef heifers, 292-344kg 3.00-3.17

Aut-born yearling dairy-beef steers, 349-391kg 1020-1200

R1 beef-cross steers, 173-175kg 760-770

R1 Hereford-Friesian, Red Devon-cross steers, 246-271kg 800-890

R1 Hereford-Friesian heifers, 140-170kg 550-680

Prime beef-Friesian steers, 531-568kg 3.10-3.13

Prime Hereford-Friesian heifers, 465-526kg 3.08-3.15

Boner Friesian-cross cows, 433-488kg 2.06-2.28

Frankton | June 5 | 355 cattle

R2 beef-cross, Hereford-Friesian steers, 363-483kg 2.87-3.13

R2 Speckle Park-beef bulls, 361-420kg 3.06-3.18

R2 beef-Friesian heifers, 361-435kg 2.91-3.02

R1 beef-Friesian, Friesian bulls, 173-190kg

R1 Hereford-Friesian heifers, 159-194kg

R1 Hereford-Friesian, Murray Grey-Friesian heifers, 147-165kg

Angus cows,

SOLID FOR THE CREAM: Following the trend of previous weeks, well-bred and -presented store lambs at Canterbury Park had a solid sale but anything in lighter condition was tough going. Medium shorn Romney cryptorchid from Lands End collected $89 and the top draft of ewe lambs realised $81.

Photo: www.bidr.co.nz

ONWARDS AND UPWARDS: These mixed-age Angus were the opening pen at Stortford Lodge on Wednesday, in calf to Angus bulls from November 1 to January 30. At 684kg they were big girls and they collected $1840 on a stronger market, $2.69/kg.

THE RIGHT LAMB AT THE RIGHT TIME: These ewe lambs ticked the boxes for number, good weight and type. Even their wool length was manageable. This meant that they collected $97, with just one other pen of ewe lambs exceeding this, at $98.

AgriHQ market trends

Cattle Sheep Deer

NZX market trends

Waikato

Normality is dripping back

Philip Duncan NEWS Weather

IF MAY was defined by mountainous high pressure, June is defined by much more variety. If you need rain, this is better news. We’re seeing more chances

for rain this week as high pressure is replaced by low pressure.

Across 2024 we’ve seen a lot of high pressure and much of this has been connected like a chain-link fence. From the Indian Ocean to Australia/New Zealand to South America these powerful highs, connected to El Niño, stopped

rainmakers from properly entering NZ.

El Niño has gone but the hangover remains. By that I mean just because the El Niño party has come to an end it doesn’t mean the house is clean from the party ... so it takes time to see those powerful highs break apart.

That’s why the rainmakers now developing are a sign of more than just winter arriving. They are also a sign of the heavy high pressure zones of El Niño finally breaking apart too.

In fact, this is the main reason WeatherWatch pushed back so hard two months ago against mainstream news outlets who immediately switched from squawking breathlessly about El Niño to flapping incessantly about the incoming La Niña.

Like turning a giant cargo ship around, this isn’t a quick and instant procedure. In fact, there’s a real possibility it could take the rest of this year.

In our recent June ClimateWatch update (where we look at monthly and seasonal weather trends) the Bureau of Meteorology (BoM) out of Australia isn’t even expecting La Niña by as late as October.

However, NOAA in the United States is, along with the United Kingdom Met Office.

June 15 may not look exactly like

But Europe, Japan, France, and Aussie aren’t in agreement. The mean result?

By the middle of spring we’re leaning towards La Niña but still not officially there. In fact, longrange computer models flatline in the “neutral” zone for months ahead.

What does this all mean for NZ? It means we can forget about El Niño and La Niña for now! It means we’re in a neutral period of weather creating chaos and variety.

It means rather than a “normal winter” we probably have a slightly drier and milder one – but the chaos factor is the biggest change

we’ve seen this year to our weather patterns and means that regions that are dry do have some better chances of wet weather.

Over the next 15 days we see rain coming back. It’s messy but between our mountains and ranges and the broken rain bands we expect between 30 and 150mm across the nation.

The lowest totals look to be in Bay of Islands, Hawke’s Bay, Wairarapa and North Canterbury. Rainwise, think of NZ as a white canvas and someone is flicking dripping paint brushes repeatedly at it. At first it doesn’t colour it in – but over time it starts to change.

MODEL: BoM’s ‘model of all models’ shows which nations are leaning towards La Niña and El Niño this coming October.

HIGH:

this, but the point is that NZ is expected to be dominated by low pressure more than high pressure over the next week or so.