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Big tick for farmers Neal Wallace
T
neal.wallace@globalhq.co.nz
HE red meat industry hopes to ramp up its Taste Pure Nature brand campaign on the back of the latest international climate change report. The Intergovernmental Panel on Climate Change (IPCC) report is being welcomed by New Zealand farming leaders as an endorsement of our low impact systems and the importance of maintaining food production. The IPCC says land on which we rely for food, water, energy, health and wellbeing is already under pressure and climate change will exacerbate that through desertification and land degradation potentially affecting food security. The report’s advocacy of a balanced diet including animal protein sourced from resilient, sustainable, low greenhouse gas systems is an endorsement for NZ, Beef + Lamb chief insight officer Jeremy Baker says. “This is the NZ red meat production system. “It is definitely not saying that we all need to become vegetarian or vegan.” It is an opportunity to ramp up promotion of the Taste Pure Nature brand, to tell 40 million global meat eaters about NZ’s lowcarbon footprint, he says. DairyNZ climate change ambassador Trish Rankin is heartened the report says some sectors need to reduce their emissions faster to ensure food
production is not jeopardised. “We need food so other sectors need to do better. “This is a breath of fresh air for someone to finally say that.” Rankin says while previous reports have been scathing of farming, this one is less so. “I felt like this report has helped us turn a corner, that farmers are affected by climate change but we also really need them.” The report found global food systems account for a quarter of greenhouse gas emissions and agricultural emissions of nitrous oxide and methane are increasing. But land also has a role as a carbon sink, absorbing 30% of the planet’s greenhouse gas emissions between 2008 and 2017. Crop production is being affected by higher temperatures, changing rain patterns and greater frequency of extreme events. The report warns consumption patterns, land management and population growth will determine the planet’s future in a changing climate. “Pathways with higher demand for food, feed, and water, more resource-intensive consumption and production and more limited technological improvements in agriculture yields, result in higher risks from water scarcity in drylands, land degradation and food insecurity.” Report contributor Associate Professor Anita Wreford, of Lincoln University’s Agribusiness and Economic Research Unit, says it shows the importance of not implementing contradictory policies. “The report is highly relevant for NZ as we grapple with the trade-offs involved with reducing
Education options vital ON-FARM training courses have an important role to play in agriculture’s future, Feilding High School student Meaghan Reesby says. The year 13 pupil plans study agri-commerce at Massey University next year but said not everyone interested in agriculture wants to go to university. Some people prefer a more handson approach, whether that is through a cadetship or beginning a job and building their knowledge through courses offered by workplace training providers such as Primary ITO. greenhouse gas emissions, adapting to the impacts of climate
She said there should always be an opportunity to do practical training because trained staff have a better understanding of how their workplaces, such as farms, function, which is good for employers and employees. Feilding High School pupils can build their practical farming experience while at school by taking courses offered through Gateway, a programme for young people in their last year of school that allows them to complete training made up of theory and practical unit standards. change, managing the areas we value and maintaining and
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Reesby said the role that form of training plays in increasing the skills of people in agriculture should not be overlooked and any future changes in how training course are delivered needs to remember that. The daughter of Himatangi dairy farmers, Meaghan’s brother works on the family farm, complementing what he learns at work with practical courses, while her sister also is also full time on the farm, fitting her Massey course work around that.
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supporting our communities and societies in this process.
NEWS
WEATHER OVERVIEW This week kicks off on a cold note for southerners as a deep and very large area of low pressure remains out to the southeast and influences New Zealand’s weather pattern. A big high over Australia will also drift our way. On Tuesday the coldest portion of the southerly flow will move in but doesn’t look too brutal for most people but be aware of wind chills for newborn stock, especially until Wednesday morning in some areas. But by Thursday and late week many areas will warm up again. This week starts to dry out with mainly showers here and there. This weekend might see some northern rain on Sunday. Next week might have another colder southerly change for a time.
10 Fonterra will record farm gases Fonterra has committed to provide annual biological greenhouse gas emissions reports for each of its 10,000-plus milk supply farms from the end of this season onwards.
Pasture Growth Index Above normal Near normal Below normal
7-DAY TRENDS
Rain
Wind
Much drier this week with just coastal showers here and there, mainly in the west. This Sunday or next Monday there might be some northern rain.
Newsmaker ������������������������������������������������������24 New Thinking ��������������������������������������������������25 Opinion ������������������������������������������������������������26
Temperature
World �����������������������������������������������������������������34
Average to colder than average for a number of regions to kick off this week but things do warm up as the week goes on and some above-average temperatures are possible, mainly in the east and north.
ON FARM STORY
NZX PASTURE GROWTH INDEX – Next 15 days
Colder southwest winds kick on Tuesday in many areas, easing on Wednesday and Thursday and warming up a little too. Fairly light winds this weekend but westerlies in northern NZ might return on Sunday. Next week looks more south to southwest again.
Highlights/ Extremes Not so many extremes this week but wind chills and some snow flurries or cold rain showers will affect some parts of Southland and Otago early this week. Otherwise no extreme weather or significant highlights this week.
14-DAY OUTLOOK
Heavy rain over the weekend means some now have too much surface water which is why this week should be helpful with drier conditions and more sunshine, a positive for pasture growth. It’s a bit cold to start with but there’s still enough warmth and lack of frosts to see some pasture growth in both islands. Many places are frost-free this week but the lowest overnight temperatures will be in Southland, Otago and parts of Canterbury, stunting pasture growth but not stopping it.
SOIL MOISTURE INDEX – 08/08/2019
32 Kellys keep balance and belief Even if locusts land on their post-earthquake property the Kelly family will be ready.
REGULARS Real Estate �������������������������������������������������35-36 Employment ����������������������������������������������������37 Classifieds ��������������������������������������������������������38 Livestock ����������������������������������������������������39-41 Markets �������������������������������������������������������42-46 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $808. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.
Source: WeatherWatch.co.nz
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For more weather information go to farmersweekly.co.nz/weather
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FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
3
Cash boost starts sector revamp Neal Wallace neal.wallace@globalhq.co.nz A $4.7 million cash injection into Otago’s Telford farm training campus is the start of a total revamp of agricultural vocational training, Education Minister Chris Hipkins says. The Government announced the investment to fund earthquake strengthening and deferred maintenance on the campus and education and training for at least the next two years. Hipkins says polytechnic reforms will put the agriculture sector in charge of the skills and courses the sector wants through the creation of new Workforce Development Councils. “Industry will have influence over the funding the Government pays to providers and will set the training standards they have identified.” The Southland Institute of Technology (SIT) this year began delivering training at Telford and Hipkins says the investment will fund at least the next two years but should enable it to stay open beyond 2021. “This is an investment not just in the local economies but in the future of the country. “It is the first step in a complete revamp of agricultural education.” SIT said it is fantastic news and the certainty will let it plan for next year. Telford has had three education providers in nine years, with Lincoln University offloading the campus to Taratahi Agricultural Training Centre in 2017 then SIT picking up the role in February after Taratahi went into liquidation in December. The disruptive and late start to the year means a smaller than usual roll of 87 effective full-time students (efts) on the campus this year but SIT proposes increasing that to more than 220 students next year and 250 in 2021, a mix
of students on campus and distance teaching. Hipkins says SIT is expanding the curriculum offered at Telford. “As well as core farming skills in agriculture, apiculture and wool technology this will create opportunities within the forestry, engineering and construction industries, which are vital to our ongoing economic success and productivity,” he said. Telford Farm Board chairman Jono Bavin says the investment is positive after several challenging years and will hopefully arrest the steady decline in people doing subdegree training.
The announcement is positive news for Telford but also agricultural training nationwide. Jono Bavin Telford Farm Board “The announcement is positive news for Telford but also agricultural training nationwide. “We need qualified, skilled staff coming onto our farms,” he says. Meanwhile, the Wairarapa community is close to preparing a proposal for the Government to unify and expand primary sector training in the region, which could involve using the Taratahi campus. Federated Farmers Wairarapa president William Beetham says the plan is to create a region-wide structure to deliver a broad range of vocational training. “While it has been frustrating we have had to wait to make sure the liquidators have
completed their process and we need to understand the Government’s approach to restructuring the whole polytechnic sector,” he says. The proposal has the backing of Wairarapa interest groups and training providers and needs to fit the Government’s reforms, which involves merging the country’s 16 polytechnics into one centralised organisation. Hipkins says the reforms, which will happen gradually over four years, are designed to unify the confusing on-thejob and off-the-job training systems. “It puts people off and is unsustainable for many education providers.” It will also accurately reflect the cost of training, recognising, for example, the more labour-intensive training needed for courses such as shearing. But the Meat Industry Association is not convinced, seeking assurance the reforms will allow employers to continue delivering on-the-job training. Chief executive Tim Ritchie says the primary industry training organisations provide an effective training structure. “While we recognise more needs to be done to improve access to training opportunities, the current vocational training model, where the Primary ITO organises and facilitates but employers undertake training on-site, works well for the meat processing industry, “Delivery of on-the-job training is by the employer and not external providers. We seek assurance from the Government that won’t change.” The country’s largest manufacturing industry, it employs about 25,000 people and last year 5300 people did Qualifications Authority accredited training led, delivered and assessed by employers.
SOON: Wairarapa groups are close to putting a case to the Government for primary sector training that might involve the Taratahi campus, Federated Farmers provincial president William Beetham says.
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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Some areas are too wet for cows Neal Wallace neal.wallace@globalhq.co.nz PARTS of some Southland farms are unsuited to wintering stock on crops, Federated Farmers provincial president Geoffrey Young says. He was responding to a social media campaign of photographs of stock being wintered on crops in Southland and Otago to highlight environmental and animal welfare issues. That prompted Agriculture Minister Damien O’Connor to convene a task force to look at the practice. Young says parts of some farms are too wet to winter stock on crops or too close to waterways or estuaries but he warns the campaign is a challenge to all farmers. “We all need to be aware of our environmental impact and animal welfare issues.” Southland farmers have been further chastised with Environment Southland saying it is disappointed at the winter management of stock by some farmers. Compliance manager Simon Mapp says an aerial inspection showed a significant number of farmers are not back-fencing animals on crops, providing portable water troughs or using hay or balage feeders. The council intends making another two inspection flights but it appears too many farmers are ignoring advice on good management practice. Otago Regional Council acting regulatory manager Peter Winder describes this year’s aerial surveillance as largely encouraging. “Our flyovers have been showing year-on-year improvements in winter grazing practices, which is good from an environmental point of view.” Winder says staff visited a Makarora farm shown in an aerial
photograph of stock grazing crop as part of the social media campaign. “The farm in question was operating within the current permitted activity rules. What appeared from the sky to be mud was largely sand.
Between all the industry players we are trying to bring about best management practice and getting the real laggards to change their systems. Geoffrey Young Southland Federated Farmers “One of our compliance officers had a very positive educational conversation with the landowners.” Young says while most farmers are doing their best, some are making little or no effort. “Between all the industry players we are trying to bring about best management practice and getting the real laggards to change their systems.” Blanket regulation requiring back-fencing is impractical because it could prevent stock from accessing dry areas and ignores different terrain and soil types. One option being considered is finding ways to streamline and reduce the cost of building consents for wintering barns or to get favourable terms by buying materials in bulk. He is not fazed by the ministerial taskforce but tempered his support on who is appointed. Waikato environmentalist Angus Robson has been touring
Under the pump?
FIRST HAND: Waikato environmentalist Angus Robson has toured Southland to check on cows and has put proposals to improve their lot to Agriculture Minister Damien O’Connor.
Southland in recent weeks photographing what he considers to be poor conditions for animals. He believes there are too many cows in Southland which he blames on DairyNZ, Beef + Lamb, Fonterra and banks for encouraging expansion to unsustainable levels. “With every bit of mess, B+LNZ, DairyNZ, vets and Fonterra all blame farmers for having done this or that but where is the industry leadership?”
Robson has approached O’Connor with proposals he believes could improve animal welfare. He advocates a standard objective measurement of cow condition backed by fines for minor misdemeanours instead of prosecution, the only option now available to inspectors. He also wants anonymity for staff or neighbours who alert inspectors to stock in poor condition and a requirement that
those properties be inspected within 48 hours. B+LNZ and DairyNZ support the Government’s taskforce saying poor wintering practices are unacceptable and farmers need more education on best practice. The weather bomb that struck the South Island last week brought up to 90mm of rain and 30cm of snow over southern and eastern parts of Southland and Otago, in several instances more rain fell than was recorded all last month.
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‘Big gun’ might shoot kiwi lower Alan Williams alan.williams@globalhq.co.nz THE kiwi dollar could fall to US$0.61 after the sharp and surprising interest rate cut by the Reserve Bank with possibly more to come, ANZ Bank FX/rates strategist Sandeep Parekh says. His forecast was made before Wednesday’s OCR cut and he will review it soon but is comfortable with 0.61, which would boost farm incomes. Parekh has had the lowest dollar forecasts of major currency forecasters and believes there is a downside risk to his view of the kiwi recovering to 0.63 by mid next year then going up to 0.65 later. The Reserve Bank might be low on ammunition but really brought out the big gun, he said. It cut the OCR by 50 basis points to 1% when the market expected just half that. It said it is prepared to go further to boost inflation and investment. “The only other times we’ve seen a 50 point cut in the last 20 years has been for really major events, the September 11 attacks, the global financial crisis and the earthquakes,’’ Parekh said. “People will be wondering if they’ve missed something.” The market is now pricing a terminal OCR rate at 0.65%. BNZ senior economist and agri expert Doug Steel said the 50-point cut is hefty when there are no obvious signs of stress in the economy so its influence will be large. Much of the gains for the economy will come through the lower currency by way of stronger farm returns. Farmers will also benefit from lower borrowing costs. Banks quickly started to pass on the OCR cut to floating rate residential mortgages and though still early, moves can be expected on floating farm debt. The OCR is the biggest influence for floating rates, Steel said. In 2016 the level of fixed mortgages had fallen to 30%, compared to about 80% before the GFC. As interest rates have fallen sharply since 2016 the fixed ratio is probably lower now. A lot of the dairy farm debt sits with a relatively small group of farmers but that does not mean they are in trouble and need interest rate relief because those with a lot of debt also have a lot of assets, he said. If the lower rates improve their cashflows it gives them options, one of which is to repay debt. Sheep and beef farmers getting good export returns and typically having low debt might see opportunities to expand.
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
5
Trade war not hitting Kiwi exports in China Nigel Stirling nigel.g.stirling@gmail.com CHINESE buyers of New Zealand’s major primary exports have avoided hitting the panic button so far despite a seemingly significant escalation in the trade war with the United States. President Donald Trump says he will hit all remaining Chinese imports not already subject to a 25% tariff with at least 10% tariffs next month if trade talks don’t progress. Trump blames China’s failure to buy more American agricultural products. China responded by remaining on the sidelines as its currency fell to a decade low against the US dollar. That made a NZ radiata log US$3 to US$4 dearer, forest owner and exporter Rayonier’s marketing director Chris Rayes said. Logs were already piling up on Chinese wharves because of a slowdown in house-building, meaning less demand for the timber framing that is the ultimate use for 70% of logs imported from NZ. Despite that there was no knee-jerk response from Chinese buyers, Rayes said. “Our Chinese customers do react very quickly usually but in relation to the announcement of new tariffs in September they are taking a wait-andsee approach.” Chinese importers are increasingly nervous Beijing will retaliate with stricter border checks on US softwood logs. “That could create opportunities if logs from the US are hindered,” he said. Wool exporter Segard Masurel’s managing director Peter Whiteman said the slowdown in Chinese construction is also behind its lacklustre demand for NZ carpet wool. But a mid-season lull in the Australian and NZ auction schedule makes it difficult to judge the impact on Chinese demand of the US’s latest tariff threat. “But we would have to presume it has made it a little worse.”
CONNECTED: The slump in Chinese building dampening log demand is also behind a lacklustre demand for carpet wool, Segard Masurel managing director Peter Whiteman says.
The next six months looks good to me. China is showing no sign of letting up in terms of their fundamental desire to buy our meat. Tony Egan Greenlea Premier Meats Fonterra’s global stakeholder affairs director Simon Tucker has seen no specific commentary in the company’s internal memos citing concerns from Chinese customers at the latest ratcheting up of trade tensions. ASB economists noted last week’s 2.6% fall in the Global Dairy Trade was barely more than the average move of 2.2% over the past year and well below its long-term average move of 4% per auction. Tucker said China has hit US whey,
cheese and whole milk powder exports with tariffs of 10% to 25% and volumes to China are down significantly. “There may be new opportunities for other exporters where the US is not playing such a lead role but the US will be competing hard with that product in other markets. “On the whole there are usually very few benefits in such a situation,” he said. Greenlea Premier Meats chief executive Tony Egan said the beef exporter’s Chinese customers have taken the latest tariff threats by the US in their stride. “We are talking daily and the impact of the discussions between the US and China is not affecting our trade with them at this stage.” Local meat shortages caused by the massive swine fever pig cull are shielding NZ meat exporters from fallout from the trade spat, Egan said. “The next six months looks good to me. China is showing no sign of letting up in terms of their fundamental desire to buy our meat.”
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FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
7
Dairy prices are holding firm Hugh Stringleman hugh.stringleman@globalhq.co.nz GLOBAL Dairy Trade prices took two steps back in the first August auction after taking two steps up in July. Prices were down 2.6%, including a 1.7% fall in whole milk powder and 5% falls in butter and anhydrous milk fat. The GDT index is back at its end-June level just under 1000 having lost an accumulated 10% in April and May. Dairy analysts say a farmgate milk price of $6.70 to $7.10/ kg milksolids remains a sound statistical and financial prediction this season. Fonterra’s forecast remains appropriate, they say, in a range of $6.25 to $7.25. ANZ agriculture economist Susan Kilsby said whole milk powder prices are expected to stay about US$3000 a tonne in the near term with rises expected later this season. “It is becoming clear that global milk supply growth is subdued and therefore higher prices will be needed to balance supply and demand. “Milk supply is virtually stagnant in the main dairyexporting countries, meaning there is a high chance that demand will outstrip available supply.”
ANZ revised its forecast down 20c to $7.10, incorporating an assumption the NZ dollar will ease but it was made before the 0.5% reduction in the Official Cash Rate that cut 1c from the NZD/USD crossrate, now US64.5c.
We continue to note that food exports, including dairy, are likely to prove the exception to the trade war rule. Nathan Penny ASB INACTIVE: Global milk supply growth is subdued, ANZ agricultural economist Susan Kilsby says. One cent movement in the cross rate translates into 10c/ kg movement in the milk price if applied across a whole season. Westpac economists took 20c out of their forecast, which is now one of the lowest at $6.70. The China-United States trade war is expected to lower Chinese consumer demand for dairy products, they said. “While growth in milk supply in key exporting regions still looks likely to be modest, recent developments suggest the
outlook for Chinese consumer demand and global growth has deteriorated.” ASB senior rural economist Nathan Penny said the 2.6% fall in GDT prices is relatively modest considering the escalation in the trade war in the past week. The price move is not much different to the average 2.2% auction price movement over the past year. “We continue to note that food exports, including dairy, are likely
to prove the exception to the trade war rule,” Penny said. Chinese household spending is one of the better performing sectors in what is an otherwise softening growth outlook for that economy. Also, Chinese restrictions on US agricultural exports might actually help NZ dairy products. The ASB milk price forecast is steady at $7, with a wide range for error of $6.50 to $7.50. Meanwhile, Rabobank has lifted
Fonterra one place to fourth in the list of world’s biggest dairy companies, behind Nestle of Switzerland and Lactalis and Danone of France. FrieslandCampina, the Netherlands, is also up one place to fifth while Dairy Farmers of America fell two places to sixth. Fonterra’s 2018 turnover, at US$14.3 billion is $4b behind Danone, with which it had a major dispute following the whey protein concentrate recall in 2013.
New Zealand origin at is at heart of Fonterra strategy Hugh Stringleman hugh.stringleman@globalhq.co.nz
Fonterra’s skim milk powders sold on the Global Dairy Trade platform consistently attract US$150 a tonne premium over European products and that is worth $50 million annually. In Japan customers pay higher prices for NZ butter and cheeses because they can make consumer-ready products that attract premium retail prices. “We spent three years on a mature cheddar cheese with added functionality for one Japanese customer that is hard to
copy, attracts a premium and is now contracted long-term.” Fonterra now intends to concentrate on making more from NZ milk, not milk from overseas pools that require extra investment, infrastructure and people, Monaghan has said. NZMP generates 60% of Fonterra’s revenue, transacts more than 20% of all globally traded dairy products and has 1100 customers. Advanced ingredients now account for 40% of all dairy
products with higher values and functionality than the base ingredients, called reference products – milk powders, butter and anhydrous milk fat. In the 2018 financial year NZMP sold non-reference products for an average NZ$786 a tonne more than reference products, a margin of 16.2%. Two of the fastestgrowing advanced ingredients categories are sports and active lifestyle and medical nutrition, both concentrating on milk protein opportunities.
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FONTERRA will make more of its New Zealand provenance and specialist dairy products in its new strategy out next month. “Premiumisation forms the core of our new strategy,” chairman John Monaghan has said. NZ Milk Products division chief operating officer Kelvin Wickham explains the nature of such premium products and prices in a video released to farmer-
shareholders last week. He said it is embedded in all NZMP does in markets built up over many years. “In our surveys of customers we ask what does NZMP mean? “The answers revolve around New Zealandness, consistent quality and our ability to be innovative.” Across all NZMP ingredients and all geographies customers pay more for Fonterra products than those from other countries or companies.
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8
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THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Marketing failure costs producers Annette Scott annette.scott@globalhq.co.nz NEW Zealand farmers are missing the profit of their grass-fed beef farming system, American restaurant chain entrepreneur Michael Berger says. Farmers are missing profit right in front of them that others are capitalising on, he told the Red Meat Sector conference. “The opportunities you are missing and how to take advantage of those opportunities, I am here to tell you.” Berger, a co-founder of Elevation Burger, a restaurant chain specialising in grassfed, certified organic beef, is passionate about expanding consumer access to grass-fed and organic proteins by partnering with farmers. He led the company’s growth from a single restaurant in 2005 to a chain of 45 in the United States and Qatar and one of the largest certified organic beef buying programmes in the US.
The 2015 Organic Trade Association’s Rising Star is focused on developing custom protein supply chains for food service distributors, manufactures and retailers through partnerships with ranchers and farmers. Berger said while in the US it’s not feasible to have a solely grassfed system it is trending towards more grass fed, driven largely by consumer demand for free-range proteins. “There is growing consciousness of the consumer driving this market with huge growth in kids and baby food with non genetically modified organisms and the like. “NZ is a nation that needs to export. There’s a big market in the US but a lot of your NZ meat is not marketed as grass-fed. “Both NZ and Australia are big suppliers to McDonalds food chain but NZ is not marketing as grass-fed and so it’s not paying you premiums. “That’s product raised in NZ to those standards. Those standards
MONEY GOES MISSING: Leading United States restaurateur Michael Berger says New Zealand is not marketing its beef as grass-fed so farmers are missing the profit.
There’s some real bad pasture farmers in the United States so we have some very bad US grass-fed beef. Michael Berger Restaurateur in the US spell them out – premium earning.” Berger said there’s a real challenge with where a lot of NZ product is ending up and how it’s being marketed. “Grass-fed NZ product is one of the highest-value, quality taste and flavour profiles in the world. “I am in the market all over the world for the best quality so I can tell you this. “There’s some real bad pasture farmers in the US so we have some very bad US grass-fed beef. “I can also tell you in the US, NZ
is looked at very fondly. “Your lamb is widely acknowledged in the US and considered some of the highest quality that can be accessed. That cannot be said for many other countries.” The market success of NZ lamb in the US should serve as the model for NZ grass-fed beef as well. His message for NZ farmers
is consistent with the red meat sector’s Taste Pure Nature campaign that connects identified consumer groups with the unique attributes of grass-fed beef and sheep meat. “It’s about growing the market, direct partnerships with producers, industry promotion, consumer awareness, government policy and speciality, unique programmes,” Berger said.
Wheat can replace cows on irrigated land Hugh Stringleman hugh.stringleman@globalhq.co.nz GROWING wheat instead of dairying on irrigated land could generate more protein with less energy input and much less water and greenhouse gases, environmental farming consultant Alison Dewes says. Water use could be cut in half with a hybrid farming model on
the Canterbury Plains combining dairy cows, beef cattle and arable. It could be reduced further with precision cropping using drip irrigation to grow high-value seed and protein crops while housing animals. There would be major reductions in nitrogen leaching and nitrate levels in waterways. Dewes, who is also head of environment for Pamu Farming
(Landcorp) gave an address to the Proteintech conference in Auckland. The conference concerned New Zealand’s response to the growing alternative protein market. To feed the world’s population, tackle climate change, reduce nitrogen leaching and improve biodiversity she suggested plant protein could replace half of animal protein consumed by
2035 and provide a complete replacement, if needed, by 2050. That would be part of a global shift from animal to arable after admitting that the world has reached peak livestock. Human health needs require nitrogen losses to water in intensively farmed dairy districts be cut in half, Dewes said. Her recommended plan is to cut the dairy cow population by 40%, make sure all bobby calves
are reared, cut nitrogen leaching from 80kg/ha/year to 40, reduce the use of nitrogen fertiliser and use alternative forages. Farm profitability would remain steady given the longterm average of milk and beef prices, she said. Dairying uses 78% of all NZ’s used water, excluding hydroelectricity, which is equivalent to the water needs of 60 million people.
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10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Fonterra will record farm gases Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA has committed to provide annual biological greenhouse gas emissions reports for each of its 10,000-plus milk supply farms from the end of this season onwards. It made the commitment in its submission to Parliament on the Climate Change Response (Zero Carbon) Amendment Bill. The reports will be generated from farm data such as cow numbers, effective area, milksolids and supplementary feeding using the Overseer farm systems modelling tool. It will be similar to but more complex than the nitrogen-loss reports it has provided its farmers for the past six seasons. The farm emissions profiles will be benchmarked across the industry, giving farmers some incentive to improve their GHG efficiency with the limited toolbox available, on-farm excellence director Charlotte Rutherford said. A two-year pilot with more than 100 farms has worked out a robust method for determining emissions profiles, which can now be rolled out over the whole supply base.
IT WORKS: A pilot scheme on more than 100 farms has produced a robust method for quantifying farm emissions, Fonterra’s on-farm excellence director Charlotte Rutherford says.
A survey by the Biological Emissions Reference Group found 98% of farmers do not know their emissions, leading to uncertainty about how to mitigate them. Feedback from farmers in the pilot trial was overwhelmingly positive because they want to get to grips with their emissions and climate change, Rutherford said. Among the limited tools available are a move to high breeding worth cows with lower stocking rates, reducing cow replacements, urea inhibitors and changes in feeds.
There will be some alarm among farmers at the large numbers that will be revealed in the first reports, due about this time next year. Farmers have little understanding of where the bulk of their on-farm emissions come from and the 25 times multiplier used for the conversion of enteric methane into carbon dioxide equivalents. The average dairy farm generates between 7kg and 13kg of carbon dioxide equivalent per kilogram of milksolids produced.
A whole farm emits 1400 to 1600 tonnes of gases annually. An example provided by Fonterra shows 8800kg/ha of gas divided into 6800kg from methane, nearly 80%, and the balance from nitrous oxide. That example was from a farm with good emissions efficiency, in the lowest 5% of the pilot study numbers. Fonterra’s sustainable dairying advisers will help farmers generate farm environment plans then work on longer-term actions to reduce emissions, team leader Andrew Kempson said. “The production of a report next year won’t flow straight on to farm system changes.” There are gas-efficient and non-efficient farms in all five production systems and it isn’t possible to have a simple recipe for improvement, he said. Nonetheless, Rutherford said, Fonterra is the only primary sector company with gas data on all its suppliers and the adviser network so potentially could mobilise quickly. “If and when our farmers need to respond to what legislation requires, we can be ready to help.” The emissions reports will not be balanced by carbon-sink or sequestration measures on
Till now farms have not been able to include riparian strips, shelter belts and erosion planting and we are pleased to see some recognition being discussed. Andrew Kempson Fonterra farms but Fonterra welcomes the willingness of the Government to discuss including those aspects in the bill. “Till now farms have not been able to include riparian strips, shelter belts and erosion planting and we are pleased to see some recognition being discussed,” Kempson said. The dairy industry macro numbers that will result from the on-farm calculations will be used in Fonterra’s annual sustainability report and might be used in industry-to-government talks.
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FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Fonterra says targets too tough Neal Wallace neal.wallace@globalhq.co.nz CLIMATE change legislation being debated will require all greenhouse gas emissions from dairy farms to fall by up to 62% by 2050, Fonterra says. The co-operative’s submission is supportive of the Climate Change Response (Zero Carbon) Amendment Bill but its methane reduction targets are very ambitious and will be a challenge to achieve. “They will require a range of solutions that are not in the hands of farmers today and it will take time to determine if they are technically and commercially viable.” Fonterra’s submission supports splitting targets for biogenic methane from carbon and nitrous oxide and it also supports a 10% reduction in methane by 2030. However, it says the 2050 methane reduction target should be 24%, at the lower end of the Government’s proposed 24% to 47% range.
Its support for methane reduction targets is dependent on the implementation of a system of thorough and regular reviews. “Regular reviews of this target must be based on scientific and economic analysis.” Fonterra also supports a zero emissions goal for carbon and nitrous oxide but notes that means all on-farm emissions will be required to fall 17% by 2030 and by between 46% and 62% by 2050. The Biological Emissions Reference Group says a 22% to 48% reduction of all greenhouse gases by 2050 will require a comprehensive package of breakthrough mitigation activities, including some that are not yet technically and commercially viable. Fonterra wants the Government to recognise all greenhouse gas offsetting measures, such as riparian and tree planting, farmers use.
11
Beingmate bleeding still hurts co-operative FONTERRA has been unable to sell its 18.8% shareholding in Beingmate Baby and Child and has resorted to a slow exit via the Shenzhen Stock Exchange. Under the stock exchange rules Fonterra had to announce its revised intention. The rules allow sale of up to 1% every 90 days directly on the exchange or up to 2% in a single block every 90 days. Trades greater than 5% can be made to an individual party in an off-market transaction. Beingmate shares are selling for just over 5 yuan, valuing Fonterra’s stake at around $220 million, compared with the $755m paid at 18 yuan a share in March 2015. The book value of the stake was reduced by $405m last year and now sits at $244m, raising the possibility of a further write-down in the 2019 accounts to be released next month. Fonterra chief executive Miles Hurrell said the Beingmate shareholding is now regarded as a financial investment only after various related agreements were cancelled or amended.
GET RID: Fonterra will now try to sell its Beingmate stake bit by bit, chief executive Miles Hurrell says.
“From here, it’s about making pragmatic decisions to get the best outcome from our Beingmate holding. “China will always be one of our most important markets.We have a strong business there and are still very much focused on the areas in China where we can succeed.”
The sale of the Beingmate stake was one plank of a portfolio review and divestment exercise to save $800m after Fonterra’s first-ever financial loss in the 2018 financial year. It remains to be seen if the company achieved that goal in the 2019 year.
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12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
A lively Fonterra election expected STANDING: Sitting Fonterra directors Donna Smit and Andy Macfarlane are seeking re-election.
FONTERRA’S election for two directors this year will be a lively affair with an almost guaranteed contest between sitting directors and hopefuls in a field of three or more. Tweaks to the rules mean the two directors retiring by rotation, Donna Smit and Andy Macfarlane, will make it through the independent assessment process, having declared their intentions to stand. Only farmers now have the power to remove a
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sitting director standing for re-election. There will be no re-run of the blocked pathway for re-election that prevented outspoken director Leonie Guiney from standing in 2017 when she was not approved by either the assessment panel or her fellow directors. After legal arguments Guiney tried again last year as a self-nominated candidate and was successful. But the 2018 election had its own share of controversy when voting farmers failed to approve three of the five candidates for three vacancies. In the first instance only Guiney and Zespri chairman Peter McBride made the 50% threshold and sitting director Ashley Waugh, Taranaki candidate Jamie Tuuta and Canterbury candidate John Nicholls fell short. The Shareholders’ Council, which oversees each election, called a second ballot among the three who were unsuccessful the first time. Waugh withdrew and self-nominated candidate Nicholls won a seat. Waugh’s failure was seen as a farmer backlash against Fonterra’s worst year in financial results and setbacks. Among the rule changes this year is the dropping of the 50% voter approval so the required number of top-polling candidates will be elected to fill the vacancies. Another major change is that the independent panel will be able to shortlist and recommend up to four candidates, two more than the vacancies. An uncontested election means each candidate will still require 50% approval from farmers who vote. If there is a shortfall then the board can appoint a farmer-director for a year but not one of the unsuccessful candidates. Those Fonterra farmers who apply to the panel and are not approved can keep their attempt private. This year the panel comprises Air New Zealand and Fisher & Paykel Healthcare chairman Tony Carter, Mercury and Warehouse chairwoman Joan Withers and Skycity Entertainment, Summerset and Tourism Holdings chairman Rob Campbell. The self-nomination path will be maintained for candidates with the backing of 35 farmershareholders and no limit on the number of candidates. Council chairman Duncan Coull said the changes in the electoral process followed consultation with farmers by a joint committee of the council and the board. Farmers wanted as much simplification as possible, protection of the independence and transparency, information about the skills and attributes required by the board and a choice of independently assessed candidates. The complicated two-path process was first used in 2016 along with the start of downsizing the board from 13 to 11, seven of them to be farmerdirectors. Accompanying illness and resignations meant experienced directors became a minority. Hence the change in rules to ensure a sitting director seeking re-election cannot be vetoed in the assessment and approval process, which augurs well for Smit and Macfarlane. Macfarlane has only served two years after his election along with chairman John Monaghan and director Brent Goldsack in 2017. Because of the constitutional requirement to have two seats vacated and contested this year, Monaghan, Goldsack and Macfarlane came to an agreement that Macfarlane would stand down by rotation. The nomination period to the independent assessment panel closes on August 16, the announcement of approved candidates will be on September 17, followed by the self-nomination window from September 17 to 27.
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FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
15
Tree plan only on marginal land Neal Wallace neal.wallace@globalhq.co.nz
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A COMPANY established by four of the country’s largest carbon emitters is vowing to buy only marginal land on which to plant in trees to offset their greenhouse gas emissions. Drylandcarbon was formed in March by Air NZ, Contact Energy, Genesis Energy and Z Energy to sequester carbon on their behalf but executive director Ant Beverley says they acknowledge the concerns of rural communities that jobs and services are lost when farmland is converted to forestry. The firm could buy 20,000ha to 30,000ha to plant in a mix of permanent and logging forests to generate NZ Units to offset their emissions. What land is used as a permanent sink and what land is logged depends on where it is. It has contracted or made offers to buy farms or to enter into joint ventures with landowners to plant trees but he declined to say where or how much. However, he says they want to plant only marginal land and on several farms that are under contract to buy. The better-quality land has been subdivided to enable livestock farming to continue. The firms are sensitive to the social and economic concerns of rural communities who fear corporates buying livestock farms for forestry resulting in the loss of jobs, people and services. “We wouldn’t come into a region as a big corporate raider. We wouldn’t do it for a second.” But the reality is some land is marginal and costs more to maintain than it generates and that is the land targeted by Drylandcarbon. Pine is the main species initially being planted but Beverley says plans are under way to use other species including indigenous for
GOING GREEN: Air NZ is in a consortium with Contact Energy, Genesis Energy and Z Energy to plant trees to offset greenhouse gas emissions.
We wouldn’t come into a region as a big corporate raider. We wouldn’t do it for a second. Ant Beverley Drylandcarbon permanent forest. “NZ Inc needs carbon sinks out of forestry and that means exotic but long term we are looking at indigenous,” he says. Air NZ is one of the country’s single largest users of fossil fuel, contributing 4% of NZ’s greenhouse gas emissions and it is steadily rising. Its sustainability report says
emissions peaked at nearly 3.6 million tonnes of carbon dioxide equivalent in 2018, an increase of 20% from 2011. But only domestic fuel emissions, about 600,000 tonnes, are accounted for in NZ’s greenhouse gas emissions inventory. Under the international Kyoto Protocol agreement, emissions from international aviation and shipping are excluded from national totals. Statistics NZ says the country produced 80.9m tonnes of carbon dioxide equivalent in 2017, of which 39m tonnes or 48% came from agriculture. Globally, civil aviation accounts for 4-5% of total greenhouse gas emissions and is increasing. Air NZ says it is investing in new aircraft that are 20% more fuel efficient than those they
are replacing and measures introduced since 2009 have reduced fuel use by 20%. “But the reality is there will be a limit to the efficiencies we can make, which makes offsetting hugely important to balance some of the impact of air travel,” it said. Overseas Investment Office data shows international forestry investors have been active this year, with approvals granted for the sale of five livestock properties covering nearly 6000ha from Masterton to Northland. All were given approval under the OIO’s special policy introduced by the Government to encourage foreign-owned forestry investors. The Accident Compensation Corporation (ACC) has also entered the afforestation programme, paying $5.7m for a
1500ha farm at Raes Junction in Otago last October. A spokesman said that is ACC’s only purchase of land to be converted to forestry but it has not ruled out further investments. ACC has contracted Crown Forestry, a commercial entity that manages the Crown’s commercial forests, to manage the property. The Otago buy is consistent with the ACC’s investment policy in which it has $40 billion in assets, with the income generated used to meet the future costs of claims. The NZ Super Fund has two NZ forestry investments, a 42% stake in the 190,000ha Kaingaroa Estate and less than 10% in a 10,000ha forest managed by the Global Forest Partners Fund. It has no investments in farmland to be converted to forestry.
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News
16 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Plan threatens lowland farms Tim Fulton timfulton050@gmail.com A CANTERBURY farmer is quitting a top land and water post, fearing lowland agriculture is being regulated out of existence. Rangiora dairy farmer and farm management consultant Dave Ashby is chairman of the Waimakariri zone committee, which recommended policy to Environment Canterbury for a local land and water plan change. The proposed plan change 7 is now up for public submissions. Ashby is meantime stepping down as zone committee chairman. “I need to concentrate on my farm and business. Over 80 meetings and workshops over two years is a large commitment and it’s now time to stick to the knitting,” he said. He will remain on the zone committee at this stage but is very concerned about the direction the plan is taking. It proposes strengthening stock exclusion rules to include open drains, artificial watercourses and springs in addition to rivers and streams. It will apply to all farmed cattle, deer and pigs in Waimakariri District on land below an altitude of 350m. While the impact on downland intensive land users will be limited, more extensive properties are likely to affected, Ashby said. The big challenges for affected dairy properties are a 15% nitrogen reduction by 2030, beyond existing Good Management Practice (GMP) targets. Ashby said it is critical to get ECan’s nutrient calculator right, particularly the newly-introduced Overseer FM, as well as associated irrigation and fertiliser measurements. Farmers need to have confidence in the numbers generated by the tools. “At the moment we have no
GLUM: Rangiora farmer Dave Ashby, with Rocky, is concerned the direction Environment Canterbury is taking with the Waimakariri zone plan, adding more onerous measures after the zone committee came up with the plan.
This process will mean more money is spent on consultants when it should be doing stuff. Dave Ashby Farmer confidence in the portal.” Other hooks in the proposed Waimakariri plan include a dedicated Ashley coastal estuary zone. The zone committee discussed an Ashley estuary and coastal zone but shelved the concept in its zone implementation programme addendum (Zipa). The coastal zone is predictable
and a no-brainer given the cultural significance and international importance of the Ashley estuary but should have been included in the initial Zipa and tested through numerous community meetings run by the committee rather than being added post-Zipa. Ashby thought the coastal estuary zone was a good idea but there was no need to target properties under 10ha. “As I understand, such land use consents would include a farm environment plan but not a nutrient budget nor baseline. The farm environment plan would then be audited within 12 months, needing to obtain an audit grade of B or better.” That would add further cost to landowners in the zone, particularly small landholders because most farmers in the zone
already have resource consents. “At $2350 deposit per application and cost of preparation of farm environment plans and possibly use of a planning consultant you are still looking at a cost of $5000-$6000 to obtain a resource consent plus $1000 for audit within 12 months. “This process is costing a lot of money on paperwork which may be better directed towards education and riparian management,” Ashby said. He acknowledged the proposed plan change is consistent with other Canterbury land and water zones such as Selwyn Te Waihora but is worried about the future of lowland farming in Waimakariri once the plan is adopted. Regional planning should be more about implementation and working with landowners to achieve environmental
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outcomes rather than rules. Costs are going up and farmers have to be moving forward to stand still, he said. Unfortunately, regulators seem to assume all farmers with an average age over 50 are computer literate. “This process will mean more money is spent on consultants when it should be doing stuff, eg for me riparian management and planting, sediment traps etc.” Ashby said his approach to policy-making has always been “if you are not at the table you’re on the menu”. He predicts heated debate through the public submission process and urges everyone affected to make a submission. If all sides contest the policy strongly it might be that the zone committee got the balance about right, he said.
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FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
19
UNDER CONTROL: Tangaroa Walker makes sure to keep himself sorted so he can enjoy what he does and set the right environment for others to thrive.
Maintaining fun is the secret Tangaroa Walker was the inaugural winner of the Ahuwhenua Young Maori Farmer Award in 2012 and has gone on to a successful career as a contract milker. Now he’s helping Farmstrong raise awareness of the importance of living well to farm well.
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TANGAROA Walker remembers the moment he decided to go farming. “I was 11 years old and this guy drove up the driveway of our school in this flash car with his beautiful wife and hopped out. “He was there to help set up a cross country course. I said ‘Hey man, what do you do?’ He said ‘I’m a farmer’. That was it. I ended up helping him out on his dairy farm when I was 13 and just cracked into it from there.” Nowadays, Walker manages a dairy operation on a 180-hectare, 500-cow dairy farm at Mabel Bush on the outskirts of Invercargill. As much as he loves the job, he admits being a contract milker has its challenges. There are targets to meet, staff to manage and he’s on call 24/7. “When you go contract milking you leave the farm you’re currently on and take over running another one on the first of June. And there’s nobody there to tell you which way the power runs or where the water taps are or anything. So you could have a leak in a trough down the back of the farm and it’s really stressful because the cows are thirsty and you don’t know where anything is. You’ve got to literally start again from scratch.”
Sometimes the pressure of running it all gets to him. So he’s put in place strategies to relieve stress and achieve a decent work-life balance no matter what the farm or the weather sends his way. He owns and runs a fitness gym in town with his partner, plays competitive rugby in winter, goes free-diving at every chance and makes videos for his own Facebook page, Farm 4 Life, which aims to educate people about life on dairy farms and how awesome it is. The page has 12,000 followers. His best cure for stress is hanging out with mates and helping others. “I really enjoy free-diving and being able to drop off some crays or kina to families and friends. I come back to the farm thinking, ‘Hey, I helped someone today’. It feels rewarding and you start work again feeling great. “Because I’m on call 24 hours here, we always plan a proper three-week break every year but while I’m here I make sure I have a good lifestyle too. I like to start my day really early in the morning and get all my work done by 10am. That frees me up to go to my gym or message one of the boys to see if they want to go out diving.” Walker’s also learnt to recognise the warning signs of burnout. “Once or twice a year, when things are really hard on farm, I’ll
realise I’m struggling and go to my wife and cry. “It just happens naturally. I try not to have it happen but sometimes things just get on top of you.”
It’s funny isn’t it? We do farming courses and learn about all these things but nowhere do you learn about how to look after yourself by eating properly or making sure you call a friend when you’re stressed.
He’s got a plan for that too. “If I’m feeling down I’ll ring my mates straight away and have a yarn. That’ll always lead to us going diving that week or playing rugby. Then, all of a sudden, the little dramas I had on-farm that were really getting to me feel like bugger all and I’m good to go again.” Walker has also got better at trusting staff and delegating. “One of the main challenges in farming is getting all the staff on board with what you’re trying to do. I’ve only been in dairy farming
for 11 or 12 years but I already find myself getting caught in my own ways. So I’ve learnt to step back more and let people have a crack. If their way fails, I’ll explain why my way would’ve worked better or if their way works I’ll adopt it and give them the credit they deserve. “I also make sure our team spends time together that isn’t based around work so we can have a laugh and create a good work environment. I’ve learnt to work with my staff at their level and not just sit on the carriage above and give orders. I don’t rate the person that I was 10 years ago as an employer but I definitely rate the person I am now.” Staying on top of the game physically and mentally is essential for keeping people safe too. “We’re operating five-tonne machinery and working around livestock. There are hazards everywhere. You’ve got to be on the ball every minute of every day on a dairy farm and make sure that you’re rested, fit, your nutrition’s up there and you’re not stressed out and losing focus.” Sleep is something he’s had to work at. “I used to really struggle to sleep if it was pouring down outside. I’d be worried about my cows getting hammered by the weather. Being organised is the answer. If we’re going to get a southerly now, I
put the cows in the best paddock to protect them and then I can go home and sleep because I’ve literally done the best I can do for them and it’s out of my control from then on.” Looking after himself has definitely paid dividends for the business. “I see the farm, the investors and the people who work on it as a bit like a trailer. I’m providing the pulling power to move it forward. So, I’ve got to make sure my head space is good, I’m fit and healthy and that I turn up for work every day with yesterday’s stresses gone. If I don’t, it’s going to slow down the vehicle. “It’s funny isn’t it, we go to school and do farming courses and learn about all these things but nowhere do you learn about how to look after yourself by eating properly or making sure you call a friend when you’re stressed. No one teaches you that. That’s why I think Farmstrong’s the best thing since sliced bacon. “I know I’m in an awesome industry and I’m passionate about it but in order to do it for the rest of my life I need to make sure every single day I do something that’s exciting, that’s fun, that I’m gonna get a laugh out of, otherwise why do it?” is the official media partner of Farmstrong
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20 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Alt protein good for NZ meat Hugh Stringleman hugh.stringleman@globalhq.co.nz THE trend towards alternative proteins contains many positives for New Zealand’s red meat sector, Beef + Lamb New Zealand global market innovation manager LeeAnn Marsh says. The social drivers towards alternative proteins are also applicable to grass-fed NZ meats and their co-products, Marsh told the 2019 Proteintech conference called Win-Win Outcomes for People and the Planet. The subtitle was How the Red Meat Sector is Transforming to meet Market Needs. Grass-fed NZ red meat has a winning proposition for being both natural and sustainable and the disruption of protein markets is good for the red meat sector, she said. Consumers do not have the time or inclination to delve deeply into their choices and are prone to grab hold of simple narratives on sustainability. Marsh used the results of survey of 2000 New Zealanders last year done by Colmar Brunton for B+LNZ. It showed plant-based protein and cultured meat products are seen as less natural
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MOTIVATION: New Zealand thinking is moving to growing the right food in the right place, Beef + Lamb NZ innovation manager Lee-Ann Marsh says.
than conventional meats. But the alternatives are more environmentally friendly and sustainable. On the positives side for farmed meats were consumer trust and low-risk perceptions, more versatility, better value for money and more delicious. “The survey results showed that in terms of naturalness our clear advantage is not only over alternative proteins but other
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farming systems and other animal proteins like pork, chicken and fish. “Our sector’s opportunity, therefore, is to combine this natural strength with a progressive sustainability narrative with demonstrable, positive outcomes.” NZ thinking is moving towards growing the right food in the right place with the right motivation. Most sheep and beef farmland is
enquiries@crmcphail.co.nz
unlikely to be suitable for growing alternative proteins because of slope, soils and temperature. Our unsuitable land is estimated to be 93% of farmland and most of the suitable 7% is already being cropped. Sheep and cattle farms already have diversified incomes from wool, dairy grazing, deer and cash cropping. “Alongside sheep and beef cattle, other activities are also occurring which may include cropping, honey, horticulture, forestry and tourism alongside significant tracks of regenerating native bush. “Farmers need to be growing a range of pastures in order to improve carbon and biology in soils. “We need to look for more opportunities to bring grazing and arable together to replenish nutrients in soil and minimise the use of fertilisers. “The land also needs time to recuperate and animals play a key role in that.” By contrast, monocropping is not generally good for the soil and conferred susceptibility to disease and is therefore not particularly sustainable. Marsh said the NZ sheep and beef sector has already made
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significant progress to carbon neutrality because sheep numbers have been halved and greenhouse gas emissions are down 40%. “While we are currently undertaking research to formally assess this we believe we are already close to being carbon neutral because of the 1.4 million hectares of native forest and 180,000ha of pines on our farms. “It should be possible to achieve carbon neutrality through a combination of further productivity improvements and more tree planting on farms.” The disruption caused by alternative proteins is also bringing about the decommoditisation of meat, she said. People who want to eat less meat will seek out the more nutritious and environmentally sustainable options. Our red meat sector has to tell the grass-fed stories, emphasising the differences from the mainly United States statistics on feedlotting, grain-feeding, hormone injection and water consumption. B+LNZ has begun a Taste Pure Nature origin brand campaign in California to cut through the noise and emphasise NZ meat is grassfed, non-GMO and raised without antibiotics.
News
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
21
Cadet scheme gets started in Northland Hugh Stringleman hugh.stringleman@globalhq.co.nz NORTHLAND livestock farmers have been challenged to offer farm cadetships to address what they say is a persistent problem of unfilled farming vacancies. Whangarei A&P Society has devised a modern live-in, onfarm training course called a farm intern programme and 50 farmers have responded, 20 of them willing to start next year. “Northland farmers say they can’t find trained farm staff so this is their opportunity to do something about it,” society manager Chris Mason said. The new course was conceived by the A&P Society with input from former Federated Farmers field officer and agricultural tutor Malcolm Fuller and the resources of NZ Land-Based Training, an established private education provider in Whanganui. The two-year training programme will consist of levels 2, 3 and 4 NZ Certificate in Agriculture with practical experience and life skills.
The organisers have no doubt of the numbers of young people wanting to get a start in farming in the north but gauging the willingness of farmers to take on cadets was the first step.
Northland farmers say they can’t find trained farm staff so this is their opportunity to do something about it. Chris Mason Whangarei A&P Society Mason said a range of farmers with different businesses have put up their hands, some because they were once farm cadets themselves or have employed them in the past. The course will consist of a two-week orientation in February in health and safety, livestock and chemical handling followed by levels 2 and 3 study in the first
year and level 4 in the second. Cadets will live on-farm and work on-farm four days of the working week, with one day together in the classroom. Encouragement of membership of Young Farmers and participating in group activities like attending field days, shows and adverse-event responses will help them become functional members of rural society. The student training allowance of about $200 plus board and keep should be paid during the first year, followed by the second year on a starting wage, Mason said. Whangarei A&P is not seeking a commercial interest, only providing co-ordination, she said. The certificates will be issued in the name of Land-Based Training. Support has been received from Northland and Auckland Federated Farmers and Regional Development Minister Shane Jones has been approached. The employing farmers will also form a group for support and advice, particularly on coordination of farm diaries and big
INITIATIVE: Whangarei A&P Society manager Chris Mason and farm intern coordinator Malcolm Fuller.
events like shearing and calving. “Participating farmers will need strong systems and each placement will have to be the right fit. “We are looking for win-win – the young people to get properly
Balancing the extremes
started in agriculture and the farmer to have a useful staff member with practical skills,” Mason said. The plan is to have 12 interns starting in 2020 and 12 the following year. Advertisement Advertisement
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News
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
23
Time for farmers to measure gases In the last in a series of four articles about climate change and agriculture in New Zealand Dr Harry Clark of the Agricultural Greenhouse Gas Research Centre considers some of the ways farmers can measure and assess their greenhouse gas emissions-reduction performance in the future.
R
IGHT now New Zealand farmers compare very well with their counterparts in other developed countries in terms of greenhouse gases emitted per unit of production. But best practice is a moving target and overseas farmers are working hard to improve their performance. Many overseas farmers are advantaged because they operate housed production systems. They make it easier to adopt some of the new greenhouse gas mitigation technologies such as administering methane inhibitors through feed or capturing methane for energy. New Zealand’s pasture systems make adoption of such initiatives very challenging. Whatever reduction strategies farmers adopt, knowing how well the strategies are working is critical to ongoing success. A crucial starting point for farmers is to quantify the level of greenhouse gas emissions on their farm. Only a few NZ farmers have done this so far but it’s likely more will follow suit soon, driven in part by the requirements of regional councils and processors. An example is the way Fonterra benchmarks nitrogen loss and milk production at the farm level. It lets individual farmers compare their performance against regional and national averages. And by tracking performance year on year they can create a picture of improvements in their production systems. Calculators for estimating agricultural greenhouse gas emissions, developed here for NZ farming systems, are readily available. Overseer calculates greenhouse gas emissions and rural
All farmers could therefore be asked to do more in future. Some efficient and earlyadopter farmers have raised concerns about this, believing they’ll be penalised by being asked to do even more.
Calculators for estimating agricultural greenhouse gas emissions, developed here for NZ farming systems, are readily available.
GET CRACKING: Greenhouse gas emissions reduction targets will become increasingly ambitious and all farmers could be asked to do more, Dr Harry Clark says.
professionals are schooling up so they can operate and interpret that component of the tool in tandem with its nitrateleaching calculations. Overseer’s greenhouse gas calculation routines are supported by scientific understanding and consistent with the national greenhouse gas inventory. The calculator can be used for different farming systems and management practices. Lincoln University has also developed a simple calculator that can provide initial greenhouse gas emissions for beef, sheep and dairy farms. More and more data are available to compare emissions from different farm types and regions. To enable these comparisons
the different greenhouse gases are converted into a common currency for accounting purposes. Carbon dioxide has a value of 1, methane a value of 25 and nitrous oxide a value of 298. The currency is known as CO2 equivalent or CO2e. The national average for dairy farms is 9.6t per hectare CO2e. In Waikato, the average is 12.3t per hectare CO2e with a range from about 11t/ha CO2e for lowinput farms to 18t/ha CO2e for high-input farms. Farmax estimates the national average for sheep and beef farms is 3.1t/ha CO2e. Emissions can also be expressed on a per-unit-of-product basis. The average for dairy is 8.8kg CO2e/kg of milksolids, with a range of 4.3-17.2kg, while for
sheep and beef it’s 16kg CO2e/ kg of meat, with a range of 3.833.7kg. These are considered good by international standards, reflecting the efficiency of NZ’s farmers and farming systems. The wide ranges indicate there’s an opportunity to improve. Specific targets and policies to encourage emissions reductions in the agricultural sector are under active development. While details and time frames are unknown because the Zero Carbon Bill legislation is unlikely to be agreed until later this year, we can be quite sure targets for reducing emissions won’t remain static. The Paris Agreement, to which NZ is a signatory, explicitly calls for increasingly ambitious reduction targets to be adopted.
While there have been some examples of that in the past, early adopters have recently been rewarded as an encouragement for others to follow suit. Anything that we can do to reduce greenhouse gas emissions helps the climate. By adopting reduction practices and technologies as they become available, NZ farmers will be at the forefront of sustainable food production. It’s true that NZ, on its own, will have little impact on reducing global greenhouse gas emissions. We contribute less than 0.2% of the global total. But by developing productions systems that both lower emissions and make us more resilient to the impacts of a changing climate, NZ farmers will maintain their enviable reputation for producing high-quality products in an economically sustainable way. The sooner we act, the sooner the beneficial effects will be felt.
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Our On Farm Story this month features Golden Bay farmers Ben and Renee Riley who are dedicated to improving the wellbeing of their farm, family and their community. Herd Health Effects on Productivity With the milking season gearing up, now is a good time to check that herd health is on track and for farmers to refresh what to watch out for and look at prevention.
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24 FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Newsmaker
Neighbours should share agricultural knowledge Agriculture in New Zealand and Australia can benefit by sharing knowledge and experience, Victorian Agriculture Minister Jaclyn Symes told Colin Williscroft during her recent visit to New Zealand.
F
ARMERS in Victoria and New Zealand face a variety of challenges and it makes sense for them to work together, Victorian Agriculture Minister Jaclyn Symes says. Symes, the Victorian government’s deputy leader, Regional Development and Resources Minister, spent three days in NZ. Symes said the Zero Carbon Bill has put NZ at the forefront of work to address the impact of greenhouse gas emissions on climate change so a key part of her visit was to find out more about what NZ is doing. Victoria is leading the call in Australia for a national response to address climate change and agriculture. It is working a proposal for state agriculture ministers when they meet later this year.
We have a similar approach to you guys on climate change but we’re just behind you. Jaclyn Symes Agriculture Minister, Victoria If that is to be effective it is important to find out what other countries are doing to support their agriculture sectors, Symes said. “We have a similar approach to you guys on climate change but we’re just behind you. “As agriculture minister I’m always looking to learn more about how our vital agricultural sector can keep growing and supporting more local jobs.” How agriculture can address climate change concerns was a key part of her meeting with Agriculture Minister Damien O’Connor. It was invaluable to hear how the NZ Government and farmers are working together on ways to reduce emissions, she said. Symes visited the Agricultural Greenhouse Gas Research Centre in Palmerston North to find out more about its agriculture-focused climate change research.
She now has a better idea of the sort of ideas and research being explored on this side of the Tasman, which could help inform Victoria’s research priorities. Symes also visited Tracy and Wynn Brown’s Tiroroa farm near Matamata. There she learned a lot about how the property operates and how dairy farming can be done in an environmentally friendly way, reducing gas emissions while remaining profitable. Dairy farming is an important part of Victorian farming though some farmers are under increasing pressure, she said. Like NZ, a lot of that is to do with water though the issue in NZ is water quality while in Victoria it is access. In some areas, especially northern Victoria, water shortages because of drought are forcing some dairy farmers to consider a change. In some parts of the state the cost of inputs has become crippling for some, with water and feed costs leading some farmers to question the economics of milk production. Symes has been involved in making sure those farmers are given good business advice to help them make decisions about their future. However, some have decided they are better off not dairying. “It’s awful. “There are some areas where it’s really difficult and some people are moving from the industry,” she said. Fonterra is a significant player in the Australian dairy industry and the pressure on farmer suppliers has flowed through to its processing operations. It plans to close its Dennington plant, which employs about 100 people, by the end of November. Symes met Fonterra senior staff here to seek assurances about its Victorian operations. The people she spoke to were up front, telling her the Victorian milk pool is down and that’s unlikely to change significantly in the near future so it makes sense to consolidate its operations in the state and shut the 100-yearold Dennington plant, which is less than an hour away from its Cobden factory. Fonterra committed to use Dennington milk at Cobden while making every effort to find jobs for its Dennington staff at the Cobden
KNOWLEDGE SHARING: Victoria’s Agriculture Minister Jaclyn Symes, right, spoke to Matamata farmers Tracy and Wynn Brown at their Tiroroa farm during her recent visit to New Zealand.
plant, its biggest in Australia. Symes, a lawyer, has been an MP for Northern Victoria since 2014. She has strong ties to regional Victoria. After growing up in the northeast Victoria town of Benalla she moved to Melbourne to study at Deakin University and began law practice in 2006. A passion for social justice led her to working as a carer
for people with disabilities, which made her aware of the daily struggles they face and the importance of the right policies. So she became an industrial officer with the Australian Services Union. She soon realised that to make a real difference she would need to influence policy, which led to a role as an adviser to the former Bracks/Brumby Labor Government, working for the then
Deputy Premier and AttorneyGeneral Rob Hulls. She has maintained her connection with rural Victoria, these days living with her husband Gerard, their two children and dog in the central Victoria town of Broadford. She wants to help rural areas find a future that is both economically and environmentally sustainable.
New thinking
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
25
Stop pigeonholing farm systems Support for regenerative agriculture is building across New Zealand and Australia. As Crown-run Landcare Research seeks state funding to test the principles and practice Tim Fulton spoke to Australian soil science leader Professor John Bennett for an assessment of the movement.
A
T HOME with a newborn in southeast Queensland Associate Professor John Bennett recently read a an article on regenerative agriculture in the special Fieldays issue of Farmers Weekly. Bennett is a principal research fellow at the university’s Centre for Sustainable Agricultural Systems and the immediate past president of Soil Science Australia. He knows agricultural science well, from published papers to working with farmers and industry and living on a tough, 21,000ha station. He’s not convinced it helps to define any type of farming as regenerative agriculture. The label doesn’t fit with his personal or professional experience of the primary industry, where people are suspicious about being boxed into a certain type of farming. “I have read through the article with interest but do not see it doing anything much to close the scepticism gap,” he said. A key feature missing from the usual discussion about regenerative agriculture, including the Farmers Weekly article, is a cost-benefit calculation and a look at the saleability of the regenerative approach. Regenerative ag certainly has merit, like an area of semi-arid rangeland around Brewarrina, New South Wales. “I lived at Coolaburra Station with my mum and dad east of Brewarrina in the last 10-year drought. “We carried stock through the whole thing, breaking even on the other side when some others in the region had gone into significant debt and/or destocked completely. “We owe this in part to the bloke we bought it from, Garry Turnbull, whose family had numerous generations of experience in the region. “He showed us how to manage the land the in the good times, to be set-up to survive the bad times, the differences across the 21,000ha property in terms of its response to flood and subsequent
NO LABELS: Scientist and farmer Professor John Bennett isn’t comfortable with labels, believing people are suspicious about being boxed into a certain type of farming.
management into drought. We did not refer to this as regenerative agriculture but rather just good management that was sensitive to the landscape and its behaviour.” A problem with the regenerative agriculture approach, particularly in drought, is that people are suspicious of the label itself. It might work well at Coolaburra Station and be suited the Brewarrina region but getting people to adopt something labelled regenerative agriculture there was an uphill battle. It was much easier to encourage landowners to share practices of good land management without using a label, Bennett said.
We need to come up with mechanisms that reward good stewardship.
“We need to refocus the conversation around good land management that is sensitive to how the land functions, rather than subject it to brands and labels of agriculture. “Let the individual selfcategorise themselves into whatever brand they like but educate them on best management practices that sustain production in hard times and remain profitable with potentially less intensive management and we achieve the same end state.” Bennett finds any discussion on jargon and identification always reduces people to sides. He agrees with recent comment that, unfortunately, the term regenerative agriculture now carries a holier-than-thou stigma. “Let’s walk away from labelling and focus on management. “This is our point around soil security and the ability to create markets that reward sustainable practices and resilient landscapes.” The debate is whether unsustainable farming is contributing to the woes of drought-stricken Australian
farmers and whether regenerative agriculture could help. In terms of the latest drought, the answer is a resounding no, Bennett said. “The tenets of the regenerative agricultural movement generally come back to changing management to suit the local landscape and its function, which takes time. “So, the current drought would not benefit from immediate change in practice but immediate change in practice can commence the process of greater landscape resilience.” There is no agreed definition of regenerative agriculture but it was essentially about best management practices for land sensitive to the nuances of the way it responds to the continuum of rainfall in the given local climate, he said. The soil science community refers to that as soil security, meaning the land becomes secure to change and external intervention – its resilience increases. Practices that enhance it are worth looking into, particularly a look at why they work. That should include the existing broad range of regenerative agricultural approaches, Bennett said. “There is no doubt that the general mindset surrounding this regenerative agricultural movement will have an enduring effect on soil resilience into future droughts. However, the credibility lies in understanding why certain practices are better than others and this is where all stakeholders in agriculture must take an interest.” Under a pre-election plan announced by the Scott Morrison government in March, the federal government will set up a biodiversity credits scheme similar to a carbon credits scheme. Farmers who pass strict conditions will be paid for the amount of forest and endangered species on their land, it has been reported. And $3 million will be spent on a certification scheme to be developed by the Australian National University in consult-
DO IT WELL: Professor John Bennett, with doctoral student Stirling Roberton, says regenerative farming has merit but it doesn’t help to define it. Instead the focus should be on good land management.
ation with the National Farmers’ Federation. Bennett says the public should never ask a landholder to use practices that prop up and enhance the environment at the expense of their livelihood. “This is unfair. “Therefore, we need to come up with mechanisms that reward good stewardship. If you eat and wear clothes you are a stakeholder in agriculture; you are a part of the agricultural industry. “Therefore, it’s a shared problem. If we in society want to see land managed in such a way that it improves carbon sequestration, maintains and improves biodiversity, amongst other ecosystem services such as food and fibre production, then we must value this.” By value Bennett means all stakeholders must be prepared to pay for it. There are emerging markets for biodiversity credits, carbon offsets and credits and
other markets will follow, he said. These mechanisms, in essence, put a value on good management. It is not money for doing nothing, locking up parcels of land or payments for not clearing land that would not have been cleared anyway – all those approaches have failed before, Bennett said. “Rather, this would need to be an ongoing payment. We would have some farmers ending up potentially farming environment rather than conventional agriculture as we know it now – probably a harder job than managing a monoculture and with as much value to society as food and fibre.” Bennett does have a caveat on support for the payments. They should not be at the expense of broad acre cropping and grazing. “There is no reason that a unit of land cannot provide both agricultural production and natural capital value,” he said.
Opinion
26 FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
EDITORIAL Time for some old-time values
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LOBAL events in the past week show farmers need some oldfashioned values to take them into a radically and rapidly changing future. The trade and now currency war between the United States and China has escalated and Brexit is daily thrown into more confusion. Then there’s the Germans. They have a value-added tax, similar to our goods and services tax, set at 19%. But most foodstuffs get a partial exemption and pay only 7%. It has been seriously suggested there meat should face the full 19% because it’s not environmentally friendly. We can expect more of the same with international brinkmanship hampering progress on resolving such issues. But they have the potential to throw our markets into disarray. Those selling food to China should be okay in the near future but anyone selling to the construction industry, think logs and strong wool, is less comfortable. And while Germany is not our biggest customer it will cause problems for sheep meat and venison, already near the price resistance level, and is a sign of things to come. These events and others again show the value of having good trade agreements, free or otherwise, locked in with big customers. The British are being told the US is ready to sign a trade deal the minute they leave the European Union but, despite fears of post Brexit food shortages, might find the items on the US menu unpalatable. Meanwhile our free-trade talks with Europe are not going well. Their negotiators are digging in on agriculture and political pressure is mounting to give no more concessions to third countries. Irish beef farms are holding mass protests against low prices caused by Brexit and what they call substandard beef from South America. The EU has allocated €100 million to placate them but they want €1 billion. These are the reasons farmers need strong, forthright leadership. They are already feeling got at by a misinformed and misguided public, by new regulation and by banks. That’s where the old-fashioned values come in. They need honesty, integrity and, to use a buzzword, transparency from everyone dealing with them. And some certainty, where possible, wouldn’t go amiss.
Stephen Bell
LETTERS
We need friends, not more trees PINE tree disaster? Confused New Zealand government? Lolly scramble? Misfocused? NZ log price starts collapsing unbeknown to our head of state as her offsider throws hard-earned taxpayers’ money to the wealthy multimillionaire sector of our communities so they can buy good, fertile farmland and plant, at little cost to themselves, ugly pine trees that under-perform environmentally. Vladimir Putin and Xi Jinping meanwhile have just connected the Amur River rail bridge, 2.2km long, both working together connecting their two countries, including 20km of track said to have cost US$355 million. The aim is to increase trade from US$108b to US$200b a year, moving 3m cubic metres
of cargo and 1.5m passengers a year between Europe, Russia and China. The bridge opens and NZ log prices plummeted. Join the dots. Finland’s trees were being railed to China. Meanwhile, the NZ government stops the motorway network development to Northland’s Marsden Point in its tracks, which should be servicing our biggest city, Auckland, opting instead to pour a couple of billion into a an almost dead rail system. The 4km of line dissecting my property has rotten sleepers, tunnels too small for normal sized containers and 30kmh corners. It might have been okay in 1920 but only a dreamer would see any value in 2019. Meanwhile, Putin and Jinping are going to Tianjin,
China, at a speed of 301kmh by train and the tea in the cups in front of them doesn’t even move. Our anti-China, xenophobic stance regarding Huawei’s 5G network being installed in NZ was very damaging to relations. Russia jumped at the opportunity and signed a 30year gas contract with Russia. Our head of state slags Donald Trump as improper, wanting to tax his country’s providers of internet services in NZ. Donald doesn’t need us dumb Kiwis. He’ll slam us with an import tax should we proceed, as he’s planning on doing to France. Russia can plant pine forests the size of NZ every year. We can’t even build motorways north as our families nervously drive our third-world roads. Food – that’s what we do in NZ.
We don’t want a government that brings in more taxes, making farmers poorer. Foreigners will own our forests. Who is doing the numbers on our biggest carbon pump in NZ, pasture and fertile soils that store tonnes of carbon? The surface area of a good pasture exceeds that of a spindly pine tree. NZ needs friends and motorways, not pine trees. Owen Clements Paparoa
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Opinion
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
27
Good dairy story must be told Hans Nelis
W
ITH so much noise in the agricultural industry about greenhouse gas mitigation I feel it becomes relevant that our urban brothers and sisters are properly informed. Articles about methane emissions land mainly in the farming papers and generally it is like preaching to the converted. I believe it is the duty of our levy bodies, DairyNZ and Beef + Lamb, to advocate on our behalf in public magazines and papers on a regular basis. These articles can appear in any newspapers and magazines. A well-versed and science-based publication will give the New Zealand farmer more credibility and respect. Our dairy and meat products have one of the lowest water footprints, methane footprints and antibiotic footprints in the world. NZ’s rivers and water bodies are among the cleanest in the world. To create a policy to drive food production away to other countries with worse standards is hypocritical. It is already happening in our country in the pork industry where we can boast about one of the globe’s best animal welfare standards for pigs yet consumers do not want to pay extra for provenance and so they buy cheaper pork products from China and Canada that don’t have similar NZ regulatory animal welfare standards. The British government is contemplating whether to accept chicken from the United States where the poultry welfare standards are much lower. Before US chicken is exported it is washed in a chlorine solution. British farmers believe their farming practices and profits get eroded by cheap imports. Their farming practices were
The
Pulpit
built on public demand followed by law intervention. Years ago this same thing occurred in the Netherlands as well and for most local poultry farmers the cost was too great and the premium returns were not visible so they retired or sold up.
To create a policy to drive food production away to other countries with worse standards is hypocritical.
In the meantime, the Dutch public is buying cheap chicken meat from Thailand or Brazil where chickens are raised in different conditions. The chicken cages from the Dutch farmers were sold overseas to expand the lucrative poultry industry unbound by any regulatory constraints and public demands. The NZ dairy industry should not bend to these unfair practices. The NZ public needs to be educated about our high international production standards before the Government
decides our dairy and meat industry is uncomfortable with our emissions profile. A report on the water footprint of animal products, published for UNESCO, concluded the total water footprint of an animal product is generally larger when obtained from a grazing system than when produced from an industrial system because of a larger green (natural rainfall) water footprint component. The blue and grey (pumped and recycled water sources) water footprints of animal products are largest for industrial systems, with an exception for chicken products. From a freshwater perspective, animal products from grazing systems are therefore to be preferred above products from industrial systems. NZ grazing systems are more sustainable from a water foot print perspective. The NZ Agricultural Greenhouse Gas Research Centre found the average emission from 1kg of milksolids is 8.8kg of carbon dioxide equivalent. In the US it is 12.5kg, 40% higher than our grazing system. The carbon footprint of British milksolids is a third higher than in NZ. According to Professor Caroline Saunders research in 2007 showed Britain produced 34% more greenhouse gases per kilogram of milksolids and 30% more per hectare of dairy farm. The figures included methane and nitrous oxide emissions from the cows and the British farmers had a higher level of reliance on concentrated feed and forage. NZ appears to have very low use of antimicrobials in dairy cattle by international standards, a study has shown. The study was reported to the recent Veterinary Association conference by Scott McDougall, Khaled Gohary, Andrew Bates and Chris Compton. The calculated average daily use is about 1.7 cow days of antibody use a year from a study of 78
PUBLIC RELATIONS: Farmers’ levy bodies must advocate to improve the public image of farming, Hans Nelis says.
farms. This compares to 5.4 days for the US and 5.3 days in Canada and the Netherlands. The NZ agricultural industry has evolved into a sophisticated and very efficient production system that can compete with the best in the world and so much so that everybody, including our city mates, can justifiably be proud of it. This should be promoted by our levy bodies. Our Government, including Climate Change Minister James Shaw, realised this when it introduced the recent carbon levy of 5% farmers have to pay for their
contribution to greenhouse gas emission reduction and not the whopping 100%.
Who am I? Hans Nelis is a dairy farmer in the Tirau-Putaruru area in south Waikato. He is involved with community work and sits on two DairyNZ committees.
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Opinion
28 FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Fonterra reset must have honesty Alternative View
Alan Emerson
I’VE been following the excellent articles on Fonterra in Farmers Weekly. It would be safe to assume the future of our largest company and the cornerstone of our dairy industry is somewhat precarious if the share price is anything to go by. It launched on the NZX at $5.50 and went to $8. At the time of writing it was $3.76 down from $5.15 a year ago. In a period when the NZX had considerable growth Fonterra shares dropped more than 25% and that reflects the capital value of the company. It isn’t a good signal, especially as the malaise is occurring at a time when it is unlikely to be farmers selling their shares, more corporate NZ. That tells me the corporate sector isn’t convinced about the direction of Fonterra, can’t see a future for the dairy industry or a combination of the two. Forsyth Barr analysis says it is difficult to gain confidence in the near-term outlook for Fonterra. Fonterra earnings have been downgraded, again, from $20,109
million to $18,761m. Next year the earnings downgrade goes from $20,508m to $19,969m. The reality for Fonterra’s farmer shareholders is they are an average of $300,000 worse off because of the share price decline over the last two years. In addition, when Fonterra was launched it had 95% of the milk supply. It is now just 81% and falling. There has been considerable commentary on the state of Fonterra including from economist Peter Fraser that Westland Milk sale overseas is a dress rehearsal for the main act of selling Fonterra to foreigners. I sincerely hope not. We’ve heard Fonterra needs to chop the milk price to provide the co-operative with capital. I think that’s sensible. That has been totally rejected by the co-op, which I found slightly bizarre. For the record I’m not wildly pessimistic about Fonterra’s future though I am concerned. Yes, it needs to reduce debt and considerably so and the international dairy market is a volatile, highly competitive place. My view of Fonterra and its problems sits firmly with previous board and management decisions. It has been all the bad decisions made in the past along with a cavalier approach by the board. The issue is with the co-op’s super massive, gold-plated spin machine that lets it gild the lily while hiding the truth. I’d accuse it of being dishonest
CHANGE ATTITUDE: Fonterra has to be honest with farmers, give them the facts and let them make their own decisions.
to its farmer shareholders and why it was supported at management and board level is surprising. So that’s in the past. My belief is anyone who made decisions to invest in Venezuela, establish China Farms and the ridiculously stupid investment in Beingmate has absolutely no place in the organisation. Considering the board there are directors, appointed and elected, who were part of the organisation back then. There are quite a few of the Shareholders Council who were presumably overseeing the Fonterra board when the decisions on China Farms and Beingmate were being made. Fonterra threw $750m at Beingmate in one of the biggest, most lavish and dishonest public relations campaigns seen outside of politics. Farmers were told Beingmate
had 80,000 flagship stores, which didn’t exist. Then after the Sanlu debacle Fonterra spent $1 billion on China Farms, which aren’t worth anything like that now. So Fonterra needs to change. It was with some disappointment that I read a letter to shareholders dated July 8 talking about forthcoming Fonterra board elections. It was not completed by an independent organisation but the board and the Shareholders Council, both interested parties. I’d further argue the descriptions Independently Assessed Candidates and Nonassessed Candidates are aimed at stacking the deck. It obviously hasn’t got through the heads of those at Fonterra Towers; including the Shareholders Council, that two of the three who were elected
last election did not play the silly game of the selection process. I’d further suggest that if Peter McBride didn’t go through the process he would still have been elected onto the board. So my thoughts on Fonterra’s future. Get out of all offshore investments and partnerships, except possibly Australia. Why is Fonterra in South America? Close all offices around the world. Employ locals in Asia. Get rid of the army of consultants and analysts. Lower the milk price and hold capital. Focus on manufacturing. Leave it to farmer shareholders to make the decision regarding the suitability of board candidates. Get rid of the millstone that is the Fonterra Shareholders Council. I’d like to see a cost-benefit analysis of that organisation and can’t see how it has added a cent to farmer returns. Finally, be honest with farmer shareholders and tell it like it is without all the expensive and over the top bluff, bluster and spin. Dairy farmers are intelligent people. If they’re given solid, factual information they are more than capable of making their own decisions.
Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath-emerson@wizbiz.net.nz
Keeping a close eye on recidivist sheep From the Ridge
Steve Wyn-Harris
THE huhu beetle, as you no doubt know, gets on its back and can’t right itself. As a boy I would rescue them and quietly position them onto my two sisters’ pillows. The only other species I deal with that get on their backs and can’t sort it out are my sheep. For the first half of my career checking for cast sheep wasn’t such a big deal because they were an occasional occurrence, a minor irritation. But for the last 15 to 20 years at this time of year, heading into and during lambing, their prevalence dictates my days. Why the difference I hear you ask? I didn’t used to feed my in-lamb ewes very well in an attempt to reduce bearings. Then, when they started to get a bit of sleepy and milk feverish, I’d open them up and the metabolic diseases stopped and the bearings would appear.
One evening over dinner I sat next to Peter Gluckman of the Liggins Institute and we had a very interesting discussion about feeding levels of pregnant females, the impacts of poor feeding and epigenetics. I resolved to feed my in-lamb ewes properly and see what happened. This flock scans well over 200% including triplets so should be fed well anyway. Four to five weeks out from due date their residual drymatter never got below 1200kg/ha DM. Almost ad lib feeding. There were no metabolic diseases and, surprisingly, no extra bearings, fewer if anything. It made me wonder if the sudden change in feeding levels is a trigger. I see from my records that in recent years I’ve averaged just seven bearing deaths from 1400 ewes or 0.5%. And it’s reducing. Presumably, any vulnerable ones are given every opportunity. I have barely any sleepy or milk fever ewes now, either. Improved lamb birth weights and decent udder development are also great benefits. But in life, you never get something for nothing. They can eat a surprisingly large amount of feed in that month so it needs to be well planned and on hand in the first place. And cast sheep. Lots of cast sheep.
I often muse whether sheep feel regret over their own actions. Our farm has a bit of flat but is mostly easy rolling so those of you on steep hill country won’t have this problem. I’m forced to check all in lamb ewes twice a day for two to three weeks before and throughout lambing. To make it easier, I keep them in big mobs until they start lambing then quickly spread them out to reduce mismothering. And I have to shed after two weeks to quickly reduce lambing paddocks and sheep that need checking. I can get 10-12 cast a day at peak. Because they are eating so much, they will quickly gas up and being unable to belch will suffocate if I don’t roll them over. However, when I do roll them over at current prices, I reckon it’s the easiest $500 I’ll ever make being the $200 ewe and two $150 lambs. A high proportion of cast ewes have triplets on board. Some seasons they can die quickly after being cast and I’m not sure why this is, possibly the type of feed. But usually they hang on until I go to the rescue. When I do get a dead one I hold a court of inquiry and an inquest and determine if I should have been out of bed quicker or checked that farm before the other one. Such an unnecessary death. Four years ago I started to
record any stud ewes that got cast and decided I wouldn’t use any of their progeny as stud rams. I have no idea if it’s a heritable trait or even a personality fault but am now starting to see some interesting patterns. Most ewes don’t get cast at all and quite a few of those that do get cast only once. But there are a bunch of repeat offenders and if I wasn’t being so diligent they would be quickly removed from the gene pool. These repeat offenders can often do it again the following year. Let us consider the plight of 466/16, pictured. I moved the stud ewes into the last paddock of the rotation so it had a lot of grass even for my liking. It had rained during the night and the sun was out that morning so a perfect storm for cast ewes right on the drop. Three hours later I put a mob of bulls in with the ewes to help knock down the feed and checked for the inevitable cast ewes. Four were on their backs and one of them was 466/16. Her second time cast this lambing so far and once last year. There’s an older ewe that gets cast several times each year. All these ewes are chock full of twins and triplets but, as I said, most of them don’t get cast at all. It might be the shape, inclination to have a scratch, an
REPEAT OFFENDER: It’s happened before and 466/16 has done it twice this season. unknown factor or probably a combination of factors that cause casting. I’m now going to boot these miscreants out of the stud. You never know, one day we might get sheep that don’t die from anything at lambing time. But then it would be too easy.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
29
STUCK WITH IT: Land will be locked up in forests long after the first rotation has been mined for profit by foreigners who then walk away.
Forestry decisions needed now The Braided Trail
Keith Woodford
THE Government must rethink its forestry policies to favour all New Zealanders of present and future generations and to constrain the narrow-based behaviour of international investors. NZ’s forestry policy is in a mess. We have drifted into a situation where the big decisions are made outside NZ. The Government’s forestry policy is like steering a dog by the tail. And this particular dog has a mind of its own. Let there be no doubt forestry has been and will be of great importance to NZ. The problem is key decisions affecting forestry and hence land use are being made outside NZ. The key decisions are being made by international investors who are figuring ways of making money in a new global environment where there is lots of capital looking for a home. If we go back to the forestry boom times of late in the 20th century, forestry investments were only for those prepared to wait a long time for a cash return. Even then, investors had to be satisfied with returns on capital of something around 6% or less, net of inflation. It was also a highly risky investment requiring 30-year foresight of timber demand.
All of that has now changed and here is why. Risk-free rates of return in the broader economy, for example from Government bonds, are now less than 2%. That is before any allowance for inflation. To get more an investor must take on considerable risk. If an investor buys shares in Apple they will cost more than 200 times earnings. Shares in Amazon cost nearly 80 times earnings. Shares in Microsoft, which the market believes has more modest growth from herein, can be bought for 30 times earnings. In this environment it is not hard to see why large-scale investors would eye up an investment in NZ forestry. It’s not just the value of the timber that catches the eye. Indeed, that is no longer the main attraction. It is all about carbon trading. In most cases the investors are not actually thinking about offsetting their own emissions. Rather, it is all about making money. They plan to do that by selling the credits to others who do need to offset their emissions. In most cases the buyers will be New Zealanders like me and you or at least those of us who are still around. The beauty with growing trees for carbon trading is that there is a cashflow throughout the growth cycle. At current prices of a little below $25 a tonne of carbon dioxide it looks very much like a risk-free investment. However, there are also very good prospects for windfall returns through escalating carbon prices. As to what carbon prices will rise to in coming years, that is
anyone’s guess. There are realistic scenarios of $40, $100 and even $200. The reason the future price of carbon is a guess is that it is a virtual market controlled by government policies, both here and overseas. Trying to outguess long-term government policy is always somewhat of a fool’s game. Nevertheless, there is no doubt which way the tide is flowing.
The problem is key decisions affecting forestry and hence land use are being made outside New Zealand.
Given the simplicity of planting trees and the need for minimal tending thereafter, combined with a near-to-guaranteed cashflow from carbon trading, it all looks very attractive as one component of a diversified international portfolio of investments. And that is the way the big international investors are now thinking. In NZ we have made it highly attractive for those international investors. Unlike other NZ investments, such as buying assets for farming or even investing in post farmgate infrastructure, there is no need for investors to demonstrate a net benefit to NZ. As long as investors can show they have some history of integrity they can come in. This preferential-investment consideration for forestry arises
from the embedded belief we must plant large areas of trees to offset the carbon emissions from our 21st century lifestyles. That might well be a worthy objective. However, some might also see it as a cop-out by the urbandominant population. It is something others can do for the sake of our lifestyles. Under current policies there is likely to be a stampede. We have already seen the first stages of this up and down the East Coast of the North Island. It is ironic this is occurring at a time when returns from sheep and beef have never looked better. For better or worse, forestry based on carbon trading will have the power to elbow all of that aside. It is also ironic that planting trees for carbon trading is a shortterm activity tied to the length of the first rotation. The financial benefits are sucked up in the first rotation. The international investors can then walk away having mined the financial benefits of carbon sequestration. The carbon benefits are meant to last for ever but the economic value of that has been assigned to the first-rotation owners. As to the future land-use, that will be locked into forestry unless the sequestered carbon is repaid. Second and subsequent rotations of trees can gain no further monetary credits because there is no longer a net gain in sequestered carbon. There is a political focus on the Zero Carbon Bill and how NZ will offset its carbon emissions. In contrast, real life and long-term thinking also needs to be about
unintended consequences. If NZ is to plant large areas of trees, beyond the 10 to 20 hectare woodlots that farmers might plant on lower-quality land in their pastoral farming enterprises then that planting needs to happen in a considered way using land where forestry is indeed the most appropriate long-term use. Those areas of suitability need to be officially designated as such, using ecological and socioeconomic criteria. The assignment process needs to be led by central government. This then leads to the question as to who should be making the consequent forestry investments. Forestry investments are too big for individual New Zealanders to take on. It has to be corporate-led. Given the future needs for NZ superannuation, the investor could well be a forestry equivalent of Landcorp, including investment from the Superannuation Fund. Given the technical simplicity of forestry management it would be much simpler than for corporatestyle agriculture. Regardless of the specifics, the bottom line should surely be that large-scale forestry development should be for the benefit of all New Zealanders, both now and in the future. We do not need overseas capital to make that happen.
Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com
Opinion
30 FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Beware overseas experts’ advice Jacqueline Rowarth NEW Zealand is unique. The islands are thin and small, they are a long way from any above-ground continental mass, the topography is steep, soils are recent, rain is heavy in some places and virtually absent in others, population is sparse and the bio-economy is significant. Almost a third of NZ is managed by the Conservation Department and half is managed by the primary sector. A small area of that is suitable for vines, orchards, cropping and market gardening but most is under pasture grazed by ruminants. The bulk of what is produced from the land is exported, underpinning the export economy and providing the new money for circulation in the domestic economy. None of this information is difficult to find yet overseas experts continue to comment on what or how we should operate, without apparently having checked the realities of why we do what we do. Sometimes they don’t appear to have considered why they do what they do in their home country. Subsidies are often part of the answer. In Canada, producer support estimates (subsidies) are 8.8% of gross farm receipts. Canada’s greenhouse gas production for milk is similar to NZ’s. Most milk is produced in barns and total mixed rations include oils such as linseed to help with production while reducing gases. The cost of production of milk in Canada is almost twice that of NZ.
Supply management controls the production of dairy, poultry and eggs for the domestic market and tariffs prevent imports from other countries. The system has been promoted to NZ, rather overlooking the fact we export to markets that are not guaranteed in the same way the Canadian domestic market is guaranteed.
Despite all the visits, reports and statements from highranking overseas officials, no other country has followed suit in removing subsidies and developing countries have brought them in.
In addition, Canadian consumers pay more for milk, poultry and eggs than they would do if a free market operated and Canadian producers can’t expand and take advantage of growing export markets. Even if supply management could be adopted in NZ, the benefits are hard to see. In the European Union, subsidies are 20% of gross farm incomes but, again, that doesn’t stop advice being given to NZ farmers. Comments on water quality are common, sometimes primed by people in NZ. An article in the Guardian in Britain earlier this year opened
with the delight of a kiwi classic summer – the hot days and barbecues – but continued with dozens of beaches, rivers and lakes being closed to the public because of pollution from farming. New Zealanders will recall the beaches and lakes were closed because of human effluent. The concern about the Waikato River is also about human effluent after the spill into Lake Taupo. But the big question is why the Guardian featured NZ at all, given the state of the Europe’s water quality. European rivers do support some of the best fishing in the world and 95% of rivers are swimmable but they are not as pure as those in NZ. The reality of EU river quality was made clear by Ireland’s Environmental Protection Agency senior catchment scientist Dr Jenny Deakin, an invited speaker at the Fertilizer and Lime Research Centre conference in February. She said Ireland’s water quality is comparatively good in the EU but over 40% of rivers don’t meet ecological water quality objectives, mostly because of sediment and phosphorus. Most rivers in Ireland do meet the concentration of about six parts per million of nitrogen as nitrate deemed satisfactory. That is at least 10 times higher than rivers in NZ. Ireland has invested over €8 billion in the last six years cleaning up waterways with little effect. In contrast, increased awareness in NZ, certainly helped by environmentalists, processing companies and the sector levy bodies, has had a positive effect – the changes farmers have made on-farm have resulted in
THEY DON’T KNOW: Advice from overseas experts is often given in ignorance of what is already happening in New Zealand, agricultural commentator Jacqueline Rowarth says.
improving water quality. Overseas experts can play a part in setting global context and stimulating New Zealanders to think about problems in a different way. Deakin did that for water quality but others have simply offered their own practices as solutions, without noticing that NZ is already doing better than they can achieve in most areas. NZ ranks highly in efficiency of production – conversion of grass into milk and meat with low gas emissions and nitrogen loss to the environment. And farmers have achieved the efficiencies without subsidies. Despite all the visits, reports and statements from highranking overseas officials, no other country has followed
suit in removing subsidies and developing countries have brought them in. Track record suggests the same will happen with greenhouse gas schemes, whatever promises are being made at government level. NZ will continue to be unique. Words from overseas experts, including those saying they will follow NZ’s lead on greenhouse gases, should be taken with a pinch of salt.
Who am I? Dr Jacqueline Rowarth has a PhD in soil science and has been analysing the interaction between agriculture, the environment and society for several decades.
Kiwi entrepreneurs need support Sam Lockwood-Geck
HOPEFUL: Aspiring entrepreneur Sam Lockwood-Geck wishes New Zealand offered the same support for innovation that he found in the Netherlands.
IF I mention rainbows and the Netherlands one might assume I am somewhere in Amsterdam. But this pot of gold sits wrapped in honeycomb architecture at the heart of Wageningen University. It’s the place to be. StartHub is an incubator of start-up companies that provides a seamless interface between entrepreneurs, students and professionals. As part of the International Horticultural Immersion Programme I was given the chance to visit this facility. As I dragged my jaw across the polished floors and through open doors I was met each time with open minds and innovation. StartHub provides a highpressure pipeline for emerging professionals and students to realise their ambitions while fortifying the Netherlands as a
As I dragged my jaw across the polished floors and through open doors I was met each time with open minds and innovation.
leader in horticultural innovation. Companies from food and beverage to drone technology and artificial intelligence coalesce to create a symbiosis of ideas and knowledge. The process allows people to access cross-disciplinary knowledge and solve complex problems in a timely manner. While all this might sound lovely, you might be wondering what it has to do with the
Continued next page
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
31
Fighting for a farming future Off the Cuff
Andrew Stewart
AN OPEN letter to our Government and the farming leaders of New Zealand. For the first time in my farming career, which spans 16 years as an owner and a lifetime on the same farm, I find myself doubting whether I would consider encouraging my two daughters into the agricultural profession. This negativity has been created by proposed regulations regarding climate change and how we as farmers will have to cope with it and ultimately pay for it. Luckily, my children are still young, at seven and four, and I can only hope I still have the time to help rectify this situation before it is too late. I am writing this as a response to the bombardment of information that has spewed forth in the past couple of weeks regarding climate change obligations in agriculture. As a sheep and beef farmer this was supposed to be a year in which we enjoyed long overdue record high prices. Instead, I find myself struggling to comprehend why I would consider carrying on in an industry with such massive uncertainty about the future with little control over my own destiny. I admit I am no climate change expert but if you can show me someone who professes to be one I would say they are either delusional or just flat out lying. It’s my belief that in the area of climate change in agriculture we know so little about the hard facts that it is impossible to make educated decisions, let alone create long-reaching legislation. I have had an active interest in this subject for 15 years and still struggle with the science. So, now we are told that we must make a choice between two options regarding our future farming operations. The proposed Government plan, which is the least palatable, is a processor levy or tax. The industry collaboration, Primary Sector Climate Change Commitment, is only slightly less repulsive for the average farmer. Either way we would be signing up for generational obligations
Continued from previous page New Zealand agriculture and horticulture sector or perhaps what a mechatronics student could have to say. Well, as I was leaving StartHub I had a peculiar feeling, as though I had just prepared pancakes and as the smell of maple syrup wafted through the air I flipped my perfect pancake only for it to miss the pan and land on the
LOTS OF TREES: One of the views on Andrew Stewart’s farm.
and taxes based on guesswork and not hard science. How can anyone claim to know how much methane a farm animal can produce over a year? And, conversely, how do you accurately measure sequestration from native bush, pine trees, manuka and grass, let alone the carbon in the soil? Well, how about option three? How about taking a breath and taking stock of what is happening in this beautiful country of ours without any overriding fear of legislation.
By Beef + Lamb’s own admission our greenhouse gas profile in agriculture is well on track with our international obligations. “While the sheep and beef sector has already exceeded the 11% below 1990 goal with its 19% below 1990 emissions it will need to maintain emissions reductions if the Government’s wider goal of reducing New Zealand’s emissions to 50% of 1990 levels by 2050 is to be achieved. Emissions reductions for sheep and beef will need to continue at about the same rate as currently to meet the 2050 target,” the B+LNZ website says. So, it seems that without any threat of obligations or legislation we already have proof that we are on the right track. Not only that but with the sale of large farms to forestry in recent months we could probably accurately predict some more reductions in the national sheep and beef flock with little difficulty. Add to that the incredible amount of riparian planting of waterways, space planting of specimen trees and afforestation
that is going on and I would strongly argue that our industry is in no need of further contributions to NZ’s climate change obligations. There is a wealth of information about this subject available to those interested in learning more and I encourage all of us to learn as much as we can. But in terms of this letter I am talking about something that does not stem from the brain, it is from the gut and the heart. In terms of the gut, I know my farm like no other person. I see daily the 118 years of care, devotion and respect that has been poured into this slice of Aotearoa by four generations of my family. It is indeed 50 shades of green and covered with a kaleidoscope of trees and plants that accentuate the landscape. To suggest to me, as a sheep and beef farmer, that this farm and therefore my family are polluters makes me sick to the stomach. And if anyone doesn’t believe me I would be happy to show you for myself. In terms of the heart, I never
cold, hard, wood floor. I was so lost in the culture of Starthub I felt I could do anything. No problem was too big, no wall too high. Therein lies my point. In three weeks I will be sitting in a lecture theatre praying my education is enough to secure the lifestyle I strive for. There remains no clear path or place that cultivates this ethos in New Zealand.
Instead, we, as New Zealanders, rely on our kiwi ingenuity to compete in agriculture and horticulture around the world. But it is that very mentality that prevents innovation on a large scale. We are constantly waiting on a miracle solution that we fail to invest in the innovative process. If NZ wants a chance to remain competitive in the future we must facilitate these kinds of systems
and processes to bring unpolished ideas into an environment that allows them to flourish. It is not so simple as to erect four sheds and label it an innovation park but, rather, requires the work of industry, education and Government across all levels of the sector. This trip is sign enough that industry is meeting this challenge head-on and the university is not far behind.
In the area of climate change in agriculture we know so little about the hard facts that it is impossible to make educated decisions, let alone create long-reaching legislation.
thought I would feel like I could not willingly pass on our farm to the next generation. That is not something that sits well with me and is the reason for this letter. As leaders, sometimes it is forgotten what it means to lead. In this instance our country faces the very real prospect of imploding if we do not tread carefully. The level of division between rural and urban is at an all-time high and anti-farming sentiment is a very real concern. It takes courage to take pause and sometimes go against popular opinion. I can only hope that you all, as leaders, listen to pleas such as this and take into consideration the effects your actions will have. As farmers, we are not only fighting for our own futures but for the futures of our children. And that is one fight I am more than willing to take on.
Your View Andrew Stewart is a sheep and beef farmer and tourism operator in Rangitikei.
All I ask is what it would take for aspiring entrepreneurs like myself to get this kind of support in New Zealand?
Who am I? Sam Lockwoood-Geck is a third year mechatronics innovation student at Massey University who is passionate about horticulture. He was inspired by the entrepreneurial opportunity he discovered in the Netherlands on an international study tour.
32 FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
On Farm Story
BOUNCING BACK: Rebekah and Dave Kelly are taking their family farm into its second century after recovering from a long drought followed by a devastating earthquake.
Kellys keep balance and belief Even if locusts land on their post-earthquake property the Kelly family will be ready. Tim Fulton reports.
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EBEKAH and Dave Kelly have an eye for the upside. In November 2016 the hill country farmers lost most of the infrastructure on their 2000ha North Canterbury property to the 7.8 magnitude Kaikoura earthquake. Half a hillside slipped into the Leader River, creating a dam the family christened Lake Rebekah. Now, as the family celebrates 100 years on the property the Kellys are backing the wonder of grass to take them into a second century. Rebekah says her family’s connection to Woodchester means everything. “This is my turangawaewae. Most of what I know about myself is based on where I live and what it is that we do. “And Dave has only ever wanted to farm so the challenge was before us and we just decided that we’re going to carry on. “This place is too valuable. What we’re doing here is too special to us.” The stock numbers on the Waiau farm are 2800 ewes, 2800 hoggets, 400 breeding cows, 300odd calves and 200 beehives. But the asset register doesn’t show Rebekah’s and Dave’s other
big engine – their ability to accept loss, recognise frailty and stand up to knocks. Nearing the end of 2016 Rebekah was starting to see relief at the end of a three-year drought. “But in November of that year we had a massive earthquake and woke up in the middle of the night to bedroom furniture flying across the room. “Dave and I gathered up all our children and went outside. Once things calmed down we heard massive rumbling, another rumbling noise, which wasn’t an earthquake noise. It turns out in the morning, when we could see, that half the hillside had slipped down into the Leader River, blocking it.” The huge quake destroyed the farm’s water system and most of the fences and farm buildings. The family has been fixing stuff up ever since. “We still haven’t got our houses finalised with insurance so that’s a big process which is ongoing and it puts a bit of strain on us. But, yeah, we’re working through it,” she says. Dave sometimes has a Biblical sort of premonition about what could possibly be next for Woodchester. “We’ve got a drought badge and we’ve got our earthquake badge,
READY: The idea behind Dave and Rebekah Kelly’s thinking is to bombproof the farm, as much as anyone can, against future natural disasters and buy time when they do experience those events.
sort of waiting for a plague of locusts. “But it’s just part of the job really, it’s your ability to respond. “We’ve put a lot of emphasis on ourselves and how we respond together and the children are watching us and how we’re coping and what we’re doing and hopefully when all the dust settles that’ll be the biggest win for us, kids that are resilient. They’ve seen it all before and it’s nothing new.” There is plenty going on, though.
The Kellys have adopted extensive farming, finishing hoggets in the spring and supplying halfbred wool for Smartwool apparel. A five-year supply contract for that next-toskin fibre gives a lot of certainty, Dave says. On the beef side Woodchester sends store steers to Five Star Beef or to farmers who want them on for a final phase. “The farm’s transitioning to more finishing. We’ve traditionally been a store stock property. It’s been exposed to the rise and falls
of climate, droughts and that sort of thing and we’re just trying to be a bit more in control of what we’re doing.” Clearly, much that has happened to the Kellys in the past six years or so has been decidedly outside their control. Rebekah briefly considered quitting the farm after the quake. In hindsight, as she turns a page on 100 years on the place, it was only a fleeting thought. Braced by experience, the couple are finding balance between business and home life. Dave, a lover of debate about farming philosophy, is enjoying one about carbon sequestration. They have enthusiastically signed parts of the farm into QEII covenant but Dave says they’re not about to lock it up in trees. “We do operate in the circle of nature, you know. And I think that’s probably where a lot of the chat in farming is based at the minute. “There’s a massive amount of sequestration and it’s the circle of life really. We need carbon dioxide to grow grass. It doesn’t grow without it. And then those animals harvest that grass and the carbon dioxide goes back into the atmosphere.” To keep nature cranking the Kellys have spent countless hours reviewing their approach to soil and stock management and their vision of more extensive agriculture.
On Farm Story
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
33
Pasture a champion in the carbon game
SCRUTINY: Every day’s an open day now on Dave and Rebekah Kelly’s farm. They are prepared to have people come in and look at their animals and identify their condition and be transparent about their management systems and inputs.
We’ve got to be prepared to have people come in and look at our animals and identify their condition and just be transparent. Dave Kelly Farmer The idea is to bombproof the farm, as much as anyone can, against future natural disasters and buy time when they do experience those events. They have had a big heads-up on the need for that since the drought and the quake, Dave says. “It’s just realising you can’t overdo it because you can actually make a rod for your own back. From a workload perspective and an infrastructure perspective, we’re saying ‘look, the paddocks probably need to be big and the fence lines need to be in the right place and you’ve got to be very careful of overdoing it on this land’.” Rebekah says while there’s a lot of talk about right tree, right place, for them it’s also about the right animal in the right place. “We’ve dropped stock numbers since the drought and through the earthquake and we’re quite happy with that number. “We’re able to finish more stock. “We can look at diversifying with bees and then we can look at leaving pockets of native bush which all our forebears have done and enhancing that bush, adding species that perhaps struggle to come up on their own and making it a really balanced property where we can be super proud of the way that we’re looking after it.” Some of the improvements have edged toward micromanagement, like paying attention to rainfall penetration. “We don’t want our rain running off down the gully onto someone else’s place or taking the soil with it out to sea. That’s probably one of the things that we came to after three years of drought. It’s not how much rain you get, it’s actually how much it goes into the ground.” Dave says they’ve also turned to bees for help. The hives create ready, non-
obtrusive cashflow on parts of the farm that might otherwise have been useless. “We do feel really optimistic about grass-fed protein and natural fibres and bees have probably been the game-changer for the landscape in that parts of the farm that were looked upon as being unproductive and are now becoming really good assets, not only from an aesthetic and a biological sense but they’re generating an income.” For all the damage, Dave’s confident they’ve made the right decision to re-invest. “The earthquake obviously compromised our infrastructure and really a farm stands on its infrastructure because, depending on what type of structure you have, that dictates the system you can run. If we didn’t believe that we were doing the right thing and involved in an exciting industry we wouldn’t be spending all the money trying to put it back. We would actually be planting it in pines and walking out the gate.” The Kellys’ next big job is to make sure they can keep up the effort. Dave says they’re energised by contact with professional advisers, neighbours, friends and the public. “I think every day’s an open day now. “We’ve got to be prepared to have people come in and look at our animals and identify their condition and just be transparent about our management systems and our inputs.” Making the farm more
accessible also means opening it up to recreation from hunting or mountain biking to kayaking on the new lake. “And having those people come in gives us really good feedback. It just means that we’re not sort of tunnel-visioned and only surrounding ourselves with people who think like we do. We’re getting fresh perspectives and that’s all good stuff.” Rebekah says the turmoil they’ve withstood in the past few years has changed the way they interact with people. “I think those conversations with friends and family have taught us to not be defensive about what it is that we’re doing and actually really engage in those difficult conversations and to be sure that what we’re doing is the right thing and then have the words to explain why it is the right thing.” In a spirit of give and take, Woodchester interacts with the public on a dedicated Facebook page. “Part of the reason for that is to engage with the general population and say ‘hey, we are sure that what we’re doing is the right thing to be doing on this land’ and if we’re proven wrong at any point then we’re happy to change. But until that point comes, yeah, we’ll stick with what we’re doing, keeping our minds open to opportunities and different ways of thinking.” That doesn’t always mean accepting any old criticism of farming that might come their
SMILING: Rebekah and Dave Kelly have put a lot of emphasis on themselves and their ability to respond to adversity in keeping their farm going.
GRASSLAND should be a mainstay of carbon sequestration but it’s given no credit, Dave and Rebekah Kelly say. “You know, 30% of New Zealand’s landmass is already covered in trees. “Our grass does the same thing that trees do. “They take carbon dioxide out of the atmosphere in order to grow. And I just can’t believe there haven’t been more measurements done around pasture. The backbone of our country is actually based on absorbing carbon dioxide,” Dave says. He reckons NZ should make more of that fact to market product and lift agriculture out of the commodity basket. The other option, farming more intensively, feels like a deadend street. “Our pasture-based farming system is amazing. “It’s world-leading. “Our whole economy is based on grass pasture and we need to be really careful that we don’t cross over into more intensive, industrialised farming so that what we’re doing becomes a grey area. “I think we really need to look at the value of our products as opposed to pumping out volume through commodities.”
way. Since media first ran the story of Lake Rebekah the Kellys have used their elevated profile to speak for and defend the industry. “Me and Rebekah, we’ve lived in Auckland and we felt no great urban-rural divide within our friendship circles and I think sometimes you’ve just got to be in a position to say ‘well that’s not true’.” At times, when the slog of farm recovery has got them down, they’ve had to consciously work out whether it’s worth devoting mental and emotional energy to criticism of their farming sector. “That’s part of your coping strategies, really. You’ve just got to decipher, is this true? Is this fair and reasonable? Is this actually what’s going on? And then you’ve just got to move on.” As a kid Dave always wanted to be running around outside. “Even from a young age, pounding on the windows in a classroom I just wanted to be outside in New Zealand. “Couldn’t think of living anywhere else.” Coming to Woodchester has been a growing-up process for him. He arrived there aged 26, having completed a Smedley cadetship and having played first class cricket with some of the country’s finest. He still loves the game and has passed it on to his children. As a farmer he counts it as a gift to have had the chance to run a place of such scale from a fairly young age.
The Kellys are worried about more trees being planted on farms. “We don’t actually need to plant our country in pine trees. We don’t need to shut down small rural communities and take the life out of them because pastoral farming creates activity in our villages, it creates a lot of work and employment and just the flow and rhythm of life.” There can’t be anything much worse than putting a chain on a farm gate and locking it up for 30 years, he says. Rebekah is adamant grassbased agriculture is a better bet, not least because agri has a fast cycle for carbon sequestration. If you’ve got trees you can claim carbon for 20 or 30 years of their life but that stops once you cut them down. “Planting trees actually ends up being a short-term solution, whereas if we’re putting carbon into the soil with grass then that can continue happening. It’s a cycle.” At the heart of it, a farm like Woodchester isn’t adding carbon dioxide to the atmosphere. “If you look at a property like this we’re probably in a situation where we’re actually carbon positive.”
“Farming’s such a physical occupation and that’s probably been the great inheritance we’ve had in the best years of our farming lives – to have had a hand on the rudder. So, when these things happened we were running a pretty short chain of command.” The early experience probably helped them stay afloat, he says. “We knew what we needed to do. And on top of that we’ve always carried a vision of how we’d like things to be. So we had a great opportunity to change things because they were so stuffed after the quake that we actually had to start again. But having that vision made it very easy to transition into putting things where I wanted them and redesigning the system.” Rebekah says because they already felt so connected to the farm the rebuild didn’t feel like the thankless, Herculean task it might have otherwise. “We love farming. We love farming this place. We love being part of rural communities and raising our children here.” Dave says their aim is to wear themselves out and leave the farm in good shape for others. Rebekah is determined to make a difference in farming and their community in the meantime. “We’re a small country and every one of us can have a huge influence in a small country and that’s a great thing about living here.” >> Video link: bit.ly/OFSkelly
World
34 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Irish farmers’ beef with prices Lords won’t back bid IRISH farmers have picketed at more than 20 meat processing plants across the country in a bid to get a better price for their beef. The protests, led by the Beef Plan Movement group, have been going two weeks, with farmers demanding a price that offers them a margin over the cost of production. Farmers in Ireland have been suffering heavy losses since last autumn as a result of a decline in the value of sterling and market disturbance arising from Brexit uncertainty. In May the European Commission announced a €100m aid package for the Irish beef sector to offset some of the losses. But the Beef Plan group argues that for every €10 spent on beef the farmers get only €2 so processors need to act to get prices to a more sustainable level. Companies that have been targeted by the protesters include ABP, Dawn Meats, Liffey Meats and Kepak. Irish Agriculture Minister Michael Creed, who is under pressure to intervene in the crisis, has indicated he is not legally able to get involved in determining what the price should be for beef. Meat Industry Ireland, which represents meat processors, has said it will engage in discussions with protesters but only once the
to limit ‘meat’ use
GIVE US MORE: Protesting Irish beef farmers want the European Union to pay them ¤1 billion compensation for Brexit losses and competition from substandard South American imports.
pickets have been called off. The Irish Farmers Association organised a separate protest outside the European Union Veterinary Office in County Meath, campaigning against the importation of substandard beef from Brazil, which farmers argue is compounding the problems they face. The association said it is concentrating its efforts on lobbying EU institutions and the Irish government for assistance. For example, it is seeking an immediate ban on all substandard South American beef imports, a fund to compensate AWDT Understanding Your Farming Business
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to prohibit certain commercial practices that are misleading for consumers. In a letter to the EU Parliament the Lords’ committee said “We contest that without evidence of a problem, legislative action by the EU is unnecessary and would undermine EU policy objectives on climate change, the environment and public health.” The proposal will be considered by the full European Parliament later this year, after which it could become part of the next round of Common Agricultural Policy negotiations. If the proposal became law it would follow a similar move already seen in the United States where states can opt to ban phrases such as veggie burgers or soy milk. A growing number of states have already taken up the option with the law set to go into effect this week. Anyone found breaking the rules could face a $1000 fine for each violation. However, a group of civil liberty, animal welfare and food bodies has filed a lawsuit against the US government. The group claims the law is an attempt to stifle competition, alleging it is specifically designed to disadvantage plant and cell-based meat companies. UK Farmers Weekly
Rich wild land fans buy farms
Red Meat Profit Partnership (RMPP) – facilitation training workshops For rural professionals looking to facilitate an RMPP Action Network Action Group. Lead Facilitator 2019 workshop dates: Alexandra 13-14 August Palmerston North 4-5 September Action Network Fundamentals and Extension Design 2019 workshop dates: Havelock North 24-25 July Christchurch 20-21 August For more information or to register go to www.rmpp.co.nz or email training@rmpp.co.nz
Mix and mingle and finger food from 5.30pm to 6.00pm, prior to the speaker commencing. Venue: Barge Showgrounds Events Centre. Attendance to the meetings FREE to members of the Whangarei A&P Society and any TeenAg members. Join today to attend two meetings and get the third FREE! Ph: 09 438 3109 or email events@wap.org.nz to RSVP
farmers who have sold cattle at a loss since mid May, an EU campaign to promote environmentally sustainable EU beef production and a €1 billion Brexit fund of market supports and direct aid for farmers. Association president Joe Healy said “As individuals IFA members are free to make their own decisions regarding the current factory protests or to withhold their cattle and sheep. “However, farmers who need to sell their cattle or sheep should be allowed to do so.” The Irish Cattle and Sheep Farmers Association has protested at Ballyhaunis where its president Patrick Kent attended said the sector can no longer sustain the current prices. UK Farmers Weekly
BRITAIN’S House of Lords has challenged a European Union proposal to ban the use of the words sausage, burger and steak on meat-free foods. The proposal was drafted by an EU Parliament committee in April after it agreed to seek to remove the words from vegetarian and vegan alternatives. But lords on the energy and environment sub-committee have said the move would: Reduce consumer clarity; Be a barrier to growth for a burgeoning sector of the food industry and; Make it more challenging for people to reduce the amount of meat in their diet when the government should be seeking to encourage the opposite. A statement by the committee said evidence sessions had not heard any indication consumers are being misled by meat-free products. “Less than 4% of people had ever unintentionally bought a vegetarian product instead of a meat version. “Further, witnesses were unanimous in the view that current naming conventions around vegetarian burgers and sausages, in particular, are clear and easy to understand,” it added. The Lords committee said it has challenged the stated justification of the EU proposal
FEAR is growing that rural areas across Britain have become a magnet for people with money who are buying into the rewilding dream. Farming groups raised the alarm as Rewilding Britain launched a £3.4 million project, Summit to Sea, to claim at least 10,000 hectares of land in Mid Wales for rewilding in the next five years. Vast areas of Mid Wales have already been bought by charities and individuals connected to Rewilding Britain. The group has claimed a new subsidy system, based on rewilding, could financially support farmers to increase carbon sequestration on their land and restore damaged and degraded ecosystems. Farmers Union of Wales president Glyn Roberts suggested the earmarking of rural Wales is symptomatic of the sort of attitude that led to entire communities being flooded or planted with forestry half-a-century ago. “The people who live in Rewilding Britain’s vast Summit to Sea area are particularly angry people hundreds of miles away in
SAVE ME: Salt marshes on the Gower peninsular are the kind of habitat rewilders want to see protected.
another country have drawn a line around their communities and decided the area should be a rewilding area. “It certainly does not look like a coincidence these are the same communities that were so unfairly attacked and earmarked for wilding in George Monbiot’s rewilding book, Feral.” National Sheep Association chief executive Phil Stocker said he has confidence that with the right policies and market drivers, British farming could become carbon neutral in no more than a few decades. “To suggest releasing a few
high-level predator species, such as lynx and eagles is going to be the answer to our problems – when we are told most of our prey species are at crisis point – is contradictory to say the least.” Meanwhile, Scottish researchers have suggested farmers should not fear wolves as livestock predators because they can help control the spread of TB. Experts at Heriot-Watt University, Edinburgh, collaborating with Spanish researchers at the University of Leon, found TB prevalence in wild boars was lower when wolves were present and TB
in cattle increased when they were absent. The findings came from mathematical models and field data from 2000-2014 in the province of Asturias, Spain, where the wolf population occupies twothirds of the region. Professor Andy White from Heriot-Watt University said “A key finding from the mathematical model showed wild boar density may be regulated by infection with high TB prevalence or by predation at low disease prevalence. “Therefore, predation, by removing infectious individuals, improves the health of wild boar populations and so the loss of individuals from wolf attacks is balanced by the reduction in death due to disease.” Jaime Marcos, of the Hunting Service of the Government of the Principality of Asturias, said the annual cost of compensation paid to farmers for wolf damage is about €1 million, a quarter of the annual expense of the TB eradication plan, which exceeds €4.1m. UK Farmers Guardian
PULLING OUT ALL THE
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Rural
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Pukekohe/Patumahoe 131 Kingseat Road Chicken broiler farm - Good income Chicken meat farming is a proven business model that offers: a rural lifestyle, good income opportunities and a modest work week, so that you can enjoy a balanced lifestyle. Located near Patumahoe, in rural south Auckland, this 6.975ha lifestyle farm features a 220sqm approx. brick and tile home, land and an excellent income from three, well maintained, chicken rearing sheds with a supply contract to Brinks NZ Limited. Training and support will be provided for the new owners.
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A versatile 18.56ha property located in the sought after Te Awamutu/Puahue area. The three bedroom plus office Branderson home is modern and tidy with a rural outlook towards Mt Maungatautari. With bore water for house and farm plus excellent shedding, 22 well fenced paddocks, a central race, two haybarns, horse stables and a great set of cattle yards, this property is a dream to run and maintain perfect for a retiring farmer.
For Sale $1.62m + GST (if any) View by appointment Neville Kemp
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LINTON FARM • Situated on Millricks line in Linton is this exceptional 72 hectare approx dairy farm. • Currently milking 280 cows in conjunction with a neighbouring 38 hectares and fully consented. • Has produced up to 1050 kgs/ms/ha with the herd wintered off. • Very good Tokomaru silt loam soils that have been regularly fertilised. • Improvements include a very good three bedroom family home along with 30 aside dairy. • Water is supplied by bore to stock troughs and dairy, and by tank to the home. • Farm is well laid out with good track access to all paddocks. • Includes a large machinery shed and good storage, two silage bunkers. • Great opportunity to secure your first farm. What is your offer? • Call Les on 0274 420 582.
• Situated south of Whanganui is this 82ha approx farming opportunity. • 20 aside herringbone dairy and 300 cow yard with adjacent feed pad. • Herd is split calved, milked all year round, supplying Open Country. • Very good bore water supplies water to stock troughs, dairy and houses. • Large machinery shed, large silage bunker. • Three bedroom family home overlooking the countryside and out to the ocean. • Your chance to buy this farm with a flexible takeover date and take advantage of the coming season. • Priced to sell at $2,665,000 plus GST if any. • Call Les on 0274 420 582 to discuss your options.
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We have a motivated young family who have sold their farm and are looking for their next challenge. • Either a 5,000 SU sheep and beef farm; or • A joint venture into a large scale sheep and beef unit. This couple are highly motivated and efficient farmers who set high standards and goals which they consistently achieve. They come with my personal recommendation. Hargest House, Level One WAYNE CLARKE 62 Deveron Street, Invercargill 9810 m 0274 325 768 p 03 218 2975 f 03 214 0872 e wayne.clarke@swre.co.nz e southland@swre.co.nz
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WE ARE LOOKING FOR A FRIEND OF THE SUBMITTER
(Advertised for a skilled and practical agricultural worker)
Rangiatea Station, Turangi
We are looking for an experienced Shepherd for Rangiatea Station, a 1833 hectare property situated 20 minutes from Turangi. Rangiatea Station is a breeding and finishing farm running 960 cattle, 9000 sheep and 1600 deer .
The role This is a contract role which involves supporting the community in the RMA process. Ideally you will be an independent, impartial expert who is able to assist potential submitters to navigate the RMA submission process, without commenting or expressing a view on the context/content of submissions.
The successful applicant must: • Be self-motivated with an excellent work ethic • Be a good stockperson • Have a good team of working dogs • Be keen to work in a team situation A recently renovated three bedroom house is available.
We have a vacancy in our AgriHQ team for a smart-thinking candidate with a genuine interest and knowledge of the business of farming.
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You will be working alongside our team of six analysts to produce in-demand red meat, livestock and forestry sector reports and analysis.
The successful appointee will ideally have:
Your week will be spent creating quality analysis and commentary relied on by primary sector business at all levels of the value chain.
• Credibility within the community; • A personable approach to working with potential submitters;
You will build professional relationships from a wide range of industry sources.
• Excellent knowledge of the Resource Management Act 1991 (RMA), and strong understanding and experience of Schedule 1 plan change processes;
SHEPHERD GENERAL
To register your interest and request a job description, please email: steph.holloway@globalhq.co.nz Applications close: August 23, 2019
Expressions of interest close at 5pm Friday 16 August 2019.
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If you have any questions contact Kate Proctor on 06 952 2889 or kate.proctor@horizons.govt.nz. To express your interest please send a brief introductory letter and credentials (short form CV) to vacancies@horizons.govt.nz
Key responsibilities • General stock work • General farm maintenance • Good knowledge of farm health and safety
Experienced Shepherd Hawke’s Bay
horizons.govt.nz
farmersweeklyjobs.co.nz
JOBS BOARD
Applicants for this position should have NZ residency and be living in NZ.
Analyst Expression of Interest
For an informal discussion about the position phone Cam in the evenings 09 232 9867 or email: cam@limestonedowns.org
Manager
There is an excellent remuneration package on offer including a warm and tidy four bedroom home. The school bus is available from the front gate to the very well-resourced country school and kindergarten at Patoka. Come and be part of this well-established farming community!
WE ARE THE SOLUTION
Shepherd
You’re reading the Farmers Weekly and so are the people you want to employ.
Various opportunities
Stockperson
To view a Job Information Pack or to apply, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 06 871 0450 (Reference #2493). Applications will be reviewed as they are received.
*FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz *conditions apply
Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz
RECRUITMENT & HR LK0096815©
For all your employment ads Debbie 06 323 0765 classifieds@globalhq.co.nz
Shepherd / General
The property is carrying 10,500su, comprising 5500 Romney ewes and 285 Angus breeding cows along with replacements. This is a high performance operation with winter cropping programs in place to maximise outputs and achieve outstanding overall breeding/ finishing results. The property utilises quality genetics to support their efficient systems. This role sits under the guidance of a supportive Farm Manager who endorses career development and will involve you in the dayto-day decision making of the property. The role encompasses 85% stock work, requiring a minimum of four dogs and a good understanding and practical ability in all areas of farming.
Grower Liaison Officer Horizons Regional Council
GET IN TOUCH
Arohiwi Station is a magnificent 1000ha property set within the strong farming community of Puketitiri, 45 minutes west of Hastings. Due to the career progression of the incumbent, Arohiwi have an Experienced Shepherd position available. This role will suit someone wishing to consolidate their skill base and spring-board their career towards Farm Management.
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Experience is required with at least 4-5 working dogs. Pay package will be based on experience.
Single accommodation available.
This position would ideally be based in our Feilding office, although location and hours are open for discussion.
The role is expected to continue through until the end of October 2019 covering the current submission period.
Modern machinery and implements with a good variety of work. This is an exciting opportunity to work along different trials that happen regularly on farm.
• A good attitude is a must • Able to work in a team environment and as an individual • Commonsense and being able to use your initiative • Honest and reliable • Good with machinery • Clean and tidy
GlobalHQ is an agile multi-media enterprise with plenty of scope to grow, delivering exciting opportunities for the right candidate.
• Ability to provide quality, timely advice on process and role of the submitter.
Limestone Downs is currently on the lookout for a shepherd/general to help out on its 3241ha (1700 ha eff) sheep and beef unit. The farm is located 13km from Port Waikato and one hour from Pukekohe. There is good fishing and hunting right on the back doorstep of the farm.
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farmersweeklyjobs.co.nz
AgriHQ market analyst
This contract role is best suited for applicants who reside in the Manawatū-Whanganui Region, have extensive local knowledge and relate well to people of all walks of life.
School bus at the gate.
RUN OFF YOUR FEET?
The position will suit someone with: • A good team of 3-4 working dogs • Capable of crutching and fencing maintenance • Good communication skills • A team player with a positive attitude. A good three bedroom house is available with primary school bus at gate. Applicants should apply with CV and referees to: Tim and Janet Cullwick tjcullwick@gmail.com
Horizons Regional Council is looking to appoint a ‘Friend of the Submitter’ for their recently notified plan change. Horizons is evolving the One Plan (the combined regional policy statement and regional plan for the Horizons region), and this is your opportunity to support the people in your community to engage in the plan-making process for the region.
SHEPHERD
For more information contact Andrew Bolton-Riley – Farm Manager 027 247 7320
We require a shepherd general for this sheep and beef farming business situated 10km east of Waipawa.
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The Farmers Weekly advertisement attracted agriculturalists. The successful applicant and all those shortlisted were from the Farmers Weekly response pool. Jennifer Chesterman, Koanui Poll Hereford
Applications close August 22, 2019
37
SHEPHERD GENERAL
“ We advertised our employment vacancy across multi-media,
Please e-mail CV and cover letter to: rangiatea.station@xtra.co.nz
classifieds@globalhq.co.nz – 0800 85 25 80
Register to receive job alerts on www.ruraldirections.co.nz
classifieds@globalhq.co.nz – 0800 85 25 80
Noticeboard
LAMB DOCKING / TAILING CHUTE
With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)
DOLOMITE NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....
Wings over the Outback 2020
0800 436 566
(Private aircraft tour) Visiting remote outback locations, cattle stations and saleyards.
NZ Vintage Machinery Club Annual Auction
SEE how today’s stockmen/women are coping with drought conditions and adapting. LEARN how vital aviation is to them and visit unique airstrips and museums. INCLUDES Wings over Illawarra Airshow.
Sat 7th Sept, 10am
The Spitfire Trail 2020
Christchurch Tractors, Machinery,
021 441 180 (JC) frigidair@xtra.co.nz
FOR FARMERS & HUNTERS
Cars, Trucks. Further entries invited: Phone Stuart Sanders 03 312 6861
When only the best will do! LK0098864©
LK0098873©
Find out more about our escorted tours at Commodore Hotel Christchurch Thursday 22nd August, 6pm, RSVP essential. melanie@travelmanagers.co.nz or ring for itinerary 021 076 8308
www.nzvintageclub.co.nz
Become a highly funct ioning board... Board Training, Development & Policies Incorporated Societies and Charitable Trusts gailmunro@governancestrategies.co.nz | Ph 027 340 8186 www.governancestrategies.co.nz Online governance training: www.govern.co.nz
ANIMAL HANDLING
ATTENTION FARMERS
FLY OR LICE problem? Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m
FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz
CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80.
CALF TRAILER MATS SOFT, DURABLE, FREE draining rubber mats. Easy to clean. Call to order on 0800 686 287 – www. numat.co.nz
DOGS FOR SALE
ANIMAL HEALTH www.drench.co.nz farmer owned, very competitive prices. Phone 0800 4 DRENCH (437 362).
T H IN K PRE BU IL T
$500-$2500 CLEARANCE sale! Numerous dogs at or below cost! 30 day trial. Ends August 23rd. Deliver North Island 24/8/19. South Island 25/8/19 www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553. WHATATUTU DOG SALE. Saturday 24th August at Otara Station, 319 Whatatutu Road. Te Karaka, Gisborne. Sale starts 12 noon. Entries close 18th August. Dosing clearance required. Enquiries to Allen Irwin. Phone 06 862 3618. Email: toromirostation@gmail. com
NEW HOMES
SOLID – PRACTICAL WELL INSULATED – AFFORDABLE Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach
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Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz
www.nzcowshedgroovers.co.nz
12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. NORTH ISLAND BUYING trip 24/8/19. South Island buying trip 25/8/19. No one buys or pays more! 07 315 5553. Mike Hughes.
FARM MAPPING FOCUS ON YOUR strengths with a farm map showing paddock sizes. Contact us for a free quote at farmmapping.co.nz or call us on 0800 433 855.
FO SALR E
GOATS WANTED
NOTICEBOARD ADVERTISING
FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916. GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.
HORTICULTURE
$2.10 + GST per word - Please print clearly
- DairyNZ Board of Directors - DairyNZ Directors Remuneration Committee
Name:
Invitation for 2019 candidate nominations – three positions available
Email:
In October, two elections will take place for DairyNZ Incorporated – one election for two farmer-elected directors for the Board of DairyNZ Incorporated and a second election for one member of the Directors Remuneration Committee.
Heading:
Address:
Advert to read:
Phone:
Call Debbie
0800 85 25 80
classifieds@globalhq.co.nz
MANUKA SITES WANTED CENTRAL NORTH ISLAND. Whanganui, Taranaki, Wairarapa. Excellent site rental paid on quality honey. We are looking for long term relationships. We are experienced and honest. Contact 027 372 0842. Email: zerbywerby@ gmail.com
LIVESTOCK FOR SALE
PROPERTY WANTED
WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80. 60+ R1 RED DEVON bulls for sale. TB tested, and 5-in1 and 7-in-1 treatments. BVD tested negative. All bulls raised on hill country. Good temperament,Good growth rate. Easy calving. $1950 + GST. Call John Cameron 027 644 1143. HEREFORD BULLS, purebred yearlings. BDV negative and vaccinated. Phone 027 4944 262.
REACH EVERY FARMER IN NZ FROM MONDAY Advertise in the Farmers Weekly
Do you have something to sell?
NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz
NOTICEBOARD
Notice of Election
HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654.
PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts. Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz
SITUATIONS VACANT C L AY T O N - G R E E N E & Welch Shearing Ltd. Looking for experienced shearers for the 2019/2020 main shear. Job starts early November to the end of January. Need to be a clean shearer who averages 300 a day. Full clean drivers license a must. Your job will include driving vans to work and also ganging responsibilities. Must get on with others. Contact Emily Welch 09 233 3104 Emilywelch648@gmail. com BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@globalhq.co.nz
STOCK FEED HAY 12 EQUIVALENT squares $70. STRAW 12 equivalent squares $55. BALEAGE at $80. Unit loads available. Phone 021 455 787.
Registered levy-paying dairy farmers are invited to nominate candidates to fill these three positions. All farmers paying a levy on milksolids to DairyNZ are eligible to stand for either election. An information pack outlining desired criteria and nomination requirements for the positions can be obtained from the Returning Officer.
TRACTOR PARTS
Nominations must be received by the Returning Officer by 12noon on Thursday 5 September 2019.
JD 60330, 60320, 6534, 6800, dismantling Andquiparts. Phone 027 524 3356.
Elections If more candidates than the required nominations are received, elections will be carried out by postal and internet voting using the STV (single transferable vote) voting method. Votes will be weighted by annual milksolids production. Voter packs will be posted on 23 September 2019 to all registered DairyNZ levy payers, with voting closing at 12noon on Monday 21 October 2019.
WAITUNA WEST SCHOOL JUBILEE
The DairyNZ Annual General Meeting will be held in Hamilton on Tuesday 22 October 2019. Election results will be announced at the meeting. For further details contact the Returning Officer as below. Anthony Morton Returning Officer – DairyNZ Incorporated 0800 666 045 iro@electionz.com
DAGS .25c PER KG. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.
DOGS WANTED
100% Lifetime Guarantee
Phone Neil 0274 747 775
udly NZ Madew Pro Since 1975
723 McLeans Island Road
UK tour including Flying Legends, the greatest Warbirds event in Europe.
www.aviationtoursnz.com
CHILLERS & FREEZERS
LK0094587©
VETMARKER
FARMERS WEEKLY – August 12, 2019
LK0098118©
38
Return this form either by fax to 06 323 7101 attention Debbie Brown Post to Farmers Weekly Classifieds, PO Box 529, Feilding 4740 - by 12pm Wednesday or Freephone 0800 85 25 80
125 YEAR JUBILEE. Including: Dunolly, Rewa, Pakihikura and Tapuae. 28, 29 Feb & 1 March 2020. To express interest and receive information; Like our Facebook Page ‘Waituna West Jubilee.’ Or email us waitunawest125@gmail. com
Livestock
FARMERS WEEKLY – August 12, 2019
TURANGANUI ROMNEYS
livestock@globalhq.co.nz – 0800 85 25 80
39
MEAT-MAKERS Second Annual Sale
Clients Owen and Tim Evans, Longridge North, Southland
September 12, 2019 at 2pm 216 Wiltons Road Carterton
“The Turanganui team has done all the work so we don’t have to!”
8393 calf weaned at 77.8% of cows body weight
8259 calf weaned at 65% of cows body weight
06 307 7841 0274 465 312
06 307 7802
For more information or a catalogue contact us: John McFadzean 06 372 7045 Johnie McFadzean 06 379 7401 / 027 429 5777 Andrew Jennings PGG Wrightson 027 594 6820
Jarred Pead
Holmes Warren
027 363 0899
www.mcfadzeancattlecompany.co.nz
LK0098886©
Michael Warren
RD 2 FEATHERSTON 5772
7% rebate for non participating agents
LK0097450©
40 Years of Proven Performance 45 Top Quality Simmental Angus Bulls
HAVE YOUR BULLS GOT GREAT PACKAGES? Take a look at ours to promote them . . .
Deliver your bull sale messaging to every farm letterbox nationwide with publications that farmers choose first for news, opinion, market updates and even their own advertising.
Spring 2019 Bull Combo
Book two advertisements in Farmers Weekly and one advertisement in Dairy Farmer over spring and receive a complimentary Dairy Farmer Bull Directory advertisement over the same period.
Dairy Farmer spring publications: • September 2 – Better Bulls Better Calves Feature • October 7 Bull Directory publishes August, September and October. Terms and conditions apply.
1
8 1
Awards and website – Voyager Media Best trade/specialist publication farmersweekly.co.nz
2019
Emptiness worries meat man $3.95
August 2019
Herd Health Effects
Incl GST
Vol 18 No 23, June 17, 2019
on Productivity Incl $8.95 GST
Outlook is rosy those commodity prices will continue to stay up unless we coordinate and collaborate our sales N A global environment efforts. characterised by increasing “And farmers must still work uncertainty the primary hard to make sure they get a good sectors are continuing to profit.” deliver, Agriculture Minister Despite economic and political says. O’Connor Damien uncertainty affecting world Joined by 100 farmers and markets, New Zealand’s returns industry leaders at the National have remained solid and though Fieldays O’Connor launched there is continuing risk it is offset the latest Situation and Outlook to some extent by the weak report for Primary Industries dollar. (SOPI) produced by MPI. “This export performance by sector the “It’s great news across NZ’s primary sector producers with headline figures showing is all the more impressive continued growth.” considering the weakening global Agricultural exports have risen economic environment and $7.5 billion in the last two years the high degree of uncertainty but returns are expected to soften creating tensions across his year before growing again, international markets,” MPI O’Connor said. director-general Ray Smith Export returns for primary said. produce in the year to June 30 are However, given the uncertain expected to be $45.7b. international backdrop The report also predicts a slight and despite strong export fall in the coming year before performance the downside risks returns start climbing again, to to the forecast are heightened reach $48.5b in 2023. over the next few years. “Horticulture has continued Production and returns are to be the star performer with its the in expected to fall slightly in focus on the customer resulting year before resuming next its success,” O’Connor said. moderate momentum in the “The meat sector is solid and is medium term in meat, dairy and likely to continue that way given horticulture. the challenges in China with their Sustained Chinese and pork production. southeast Asian demand is “We’re also seeing aquaculture supporting strong prices and grow which is a real positive. to expected is dollar the weak “But farmers can’t assume
Luke Chivers and Stephen Bell
I
than 7% this year to $45.6 billion, Agriculture revenue is expected to jump by more CHALLENGING: Primary industry export he attended with Prime Minister Jacinda leaders at the National Fieldays when Minister Damien O’Connor told industry Ardern.
We are moving into challenging economic environments and trade is being kicked around like a football. Damien O’Connor Agriculture Minister continue supporting export returns. “Strength in prices supported by an increasing proportion of higher-value products is expected
Health & happiness
global economic growth expectations, rising protectionist sentiment and uncertainty caused by Brexit, United States-China trade tensions and outbreaks of African swine fever. But the bigger concern for NZ is their potential impact on consumer demand in Britain, markets. America and China. “This is in part because the “We are moving into been haven’t in trade products we challenging economic directly affected so are and in part environments and trade is being because the NZ dollar has fallen kicked around like a football,” over the past two years. O’Connor said. “However, these issues do “Our sector shouldn’t assume provide an increasingly uncertain anything and will need to backdrop to the otherwise positive outlook.” Continued page 5 The clouds include slowing
to sustain growth in dairy export revenue despite constraints on milk production growth,” Smith said. “NZ’s current run of export success over the past two years has occurred despite a rising sense of uncertainty in global
Our New Brand Is Coming Soon For a while now we’ve been known as DTS can also stand for such words As one of our valued customers, Trustworthy, Service dable and Durable, Terrific and
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farmersweekly.co.nz
2516FW
For further information contact: Nigel Ramsden 06 323 0761, 027 602 4925 or livestock@globalhq.co.nz
40
livestock@globalhq.co.nz – 0800 85 25 80
Livestock
FARMERS WEEKLY – August 12, 2019
ONLINE DAIRY BREEDS
S
STOCK FOR SALE
7 R2YR HEREFORD BULLS $1900
BONANZA BULL SALE
(Ph Guy Strang 021 472 958)
100 R2YR FRSN BULLS 520kg
Monday 16 September 2019 7pm on bidr
115 EWE LAMBS 27kg
(Ph John Stephens 0279 392 369)
STOCK REQUIRED
350 SIL EWES April/May RAM
YOUR INVITATION Open to all dairy breeds and crosses.
(Ph Guy Strang 021 472 958)
_______________________________
ID and photo or video of all entries.
www.dyerlivestock.co.nz
ENTRIES CLOSE 23 AUGUST 2019
info@dyerlivestock.co.nz A Financing Solution For Your Farm E info@rdlfinance.co.nz
byllivestock.co.nz
07 823 4559
For conditions of entry and sale contact Ross Riddell 0272 111 112 rriddell@linklivestock.co.nz
byllivestock
Advertise your stock sales in Farmers Weekly
farmersweekly.co.nz
Linking buyers and sellers
RANUI
Breeding the difference
YEARLING BULL & HEIFER SALE
36TH ANNUAL ELITE HIND & WEANER SALE MONDAY 19TH AUGUST 2019 @ 1PM OFFERING TO INCLUDE:
Late January delivery 2020
FRIESIAN HEIFERS 18 Born In Calf – $1550 19 Born Autumn – $1100
4yr Master Sire. 753 IOA 2nd Rising Stars 4yr Hard Antler 2019
CANE
ALSO: FITZROY, ORLANDO, MUNRO, BRUSNIS, COGNAC, HUDROCK, ARDLEIGH MCCAW, MALSON, APEX, HUNTER, RIGBY AND ABSALOOT Catalogues will be posted out in July LK0098859©
North Island Luke McBride 027 304 0533 Wayne Doran 027 493 8957 Harry Van De Ven 027 486 9866 South Island Richard Harley 021 765 430 Greg Collins 027 481 9772
ANGUS
Matings to and progeny of Cane
12 noon Tuesday, 10th September, 2019 Karamu, 662 Rangitatau East Rd, Wanganui
YEARLING BULL & HEIFER SALE
ON OFFER: 30 yearling bulls • 35 yearling heifers Karamu, 662 Rangitatau East Rd, 12 noon Tuesday, September 25, 2007 Wanganui
ENQUIRIES TO:
On offer: 25 yearling bulls Johnstone Lindsay 30 yearling heifers, which will be sold in lots
027 445 3211
Lin Johnstone 027 445 3213
ALL ENQUIRIES: Barry Gard 021 222 8964, a/h 03 431 2803 bgard@foverandeerpark.co.nz www.foverandeerpark.co.nz
All cattle BVD & EBL tested All cattle electric fencePGG trained WRIGHTSON
AGENTS:
TB status C10 inspected Callum Stewart 027 280 2688 Vet Quiet temperament Ken Roberts 027 591 8042 INQUIRIES TO: Ryan Shannon Lin Johnstone Lindsay Johnstone 06 342 9833 06 342 9795 W & K AGENTS Blair Robinson Don Newland 027 491 9974 027 242 4878
annual angus bull sale Tuesday 20th August 2019 – 12.30pm 341b Matauri Bay Road, RD1, Kaeo, Northland
027 565 0979
80 Lots - Comprising 66 R2 Bulls & 14 Autumn Born Yearlings The stud herd is run under commercial conditions on hill country. Matauri has established itself as a leading provider of NZ based genetics in the Australasian industry. Matauri genetics have had phenomenal success in a wide variety of environments having been used in 212 stud herds. Matauri Reality 839 now has over 5000 progeny analysed on Breedplan. The Matauri AI team and sons used in other stud herds have continued to top sales on both sides of the Tasman this season. One highlight was a Matauri Reality 839 grandson selling for $85,000 in a South Island sale.
Kokonga Ironside 5005 Boehringer Ingelheim Dairy Sire
In the Wairarapa 8 sons of Matauri Smokin’ Joe averaged $18,437 with a top price of $45,000. CONTACTS Cam Heggie Bruce Orr Neil Miller
027 501 8182 027 492 2122 027 497 8691
Tom Bayly Colin Maxwell
027 415 4125 09 405 0357
For more info please email colin@matauriangus.com or visit www.matauriangus.com
Kokonga East Road (end of road by woolshed) off the Port Waikato - Waikaretu Valley Road, RD5 Tuakau
LK0098773©
EXPORT WANTED
LK0098865©
LIVESTOCK ADVERTISING
Livestock
FARMERS WEEKLY – August 12, 2019
livestock@globalhq.co.nz – 0800 85 25 80
41
SALE TALK Two guys were out one day Here at Farmers Weekly we get Duck hunting, sitting in their some pretty funny contributions to our Sale Talk joke from you mai mais patiently waiting for the ducks to fly by when a avid readers, and we’ve keen to hear more! hang glider appeared in the sky above them. If you’ve got a joke you want to share One of the guys took a shot at with the Farming community (it must it and his mate shouted out, be something you’d share with your grandmother...) then email us at: “What’s that you’ve just shot saletalk@globalhq.co.nz at?”
PROCESSORS OF LAMB, MUTTON, GOATS & BOBBY CALVES SOME REAL BENEFITS TO YOU THE FARMER IN SUPPLYING CRUSADER MEATS:
Have you got a sale coming up? Advertise in Farmers Weekly To advertise Phone Nigel 0800 85 25 80 or email livestock@globalhq.co.nz
with Sale Talk in the subject line and we’ll print it and credit it to you.
His mate replied “I dunno, but it’s just let go of that man” Supplied by Bill Davey
• Same day kill where possible
GOING GOING GONE!
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Wednesday night - North Island Thursday night – South Island LK0098888©
• Just a bunch of really good buggers For all livestock enquiries contact our livestock coordinator: Danny O’Leary Mob: 027 467 6251 Office: 06 363 7237 Email: danny@crusadermeats.co.nz
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For more information go to bidr.co.nz or contact the team on 0800 TO BIDR
LIVESTOCK ADVERTISING
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with Farmers Weekly
pggwrightson.co.nz/ deferabull
Wiltshires for sale
PHONE NIGEL RAMSDEN 0800 85 25 80
Farmed easy-care on steep hill country.
Phone Stu 06 862 7534
LK0095304©
Ewes, rams, ewe hoggets. No shearing, crutching, docking. Minimal dagging. Scanned 164% ewes, 103% hoggets.
Key: Dairy
Beef
Sheep
WILLIAMS JERSEYS HIGH BW JERSEY BULL SALE
MACHINERY & PLANT CLEARING SALE
Monday 2nd September, 11.30 AM On Farm: 1013 Wiroa Road, Okaihau Northland
Friday 23rd August, 1.00 PM Hawksbury Village, Waikouaiti
Comprising: 7 2yr Jersey Bulls BWs 144-198 weights up to 354kg 6
A2A2 Bulls including 1 Cross Bred 2yr Bull
42 Yearling Jersey Bulls 9
Bulls over 200 BW up to 233.
Sires include: Kaino, Bastian, Goldie Index, Integrity, Conrad, P.C.G. Favour, Desi, Terrific, Kingpin, 5 Star Sultan, Thor, Limerick, & Frankie. Please note: ‘Up-to-date’ weights available on sale day. Yearlings include 31 A2A2 bulls & 3 A1A2 bulls.
?
Need an Angus bull CONSIDER THIS . . . Fully Registered 300 cow herd Specialising in ease of calving and heifer mating All our best bulls offered at our annual yearling sale Full EBVs on all animals Excellent Temperament
Good selection of bulls with growth and carcass attributes without compromising ease of calving FERTILITY Calve as 2 yr old Only 43 day mating Cull everything that doesn’t rear a calf
WHO ELSE IN NZ TICKS ALL THOSE BOXES?
Our complete program (all 300 cows) is focused on ease of calving and heifer mating
Chris & Karren Biddles, RD1, Te Kopuru, Northland P: 09 439 1589 m: 021 795 929 e: chris@teatarangi.co.nz
Other
The high genetic Williams herd of 230 cows is milked at Puhi Puhi under Mary Williams guidance. Bull calves, when 4 days old go to Okaihau to be reared/cared for by Brian & Gillian.
A/C Clive Contracting Ltd Full range of well maintained plant suitable for farmers or contractors, major items include: John Deere 6195M 4WD Tractor (1300hrs), John Deere 7430 Premium 4WD Tractor (5670hrs), John Deere 7810 4WD Tractor (11,000hrs), Duncan Renovator AS3500 Air Seeder, 1968 Chevrolet Impala Car 307 V8 (original) To view photos and full list of plant and machinery go to www.agonline.co.nz and click on upcoming sales. Contact Gerard Shea 027 442 5379
The Williams stud has bred 148 bulls for the industry with 25 premier sires. The herds BW is currently making it one of the top in the country. Mary also sells females annually. Williams Jerseys are still in the business of selling top bulls. • Delivery to suit up to end of October, trucks go south regularly. • A2 tested. • Tested negative & vaccinated twice for BVD. • 7n1 & Lepto Vaccinated. • Bulls are very quiet - moved daily with electric fence.
Secure your bull team with no upfront cost Dairy service bulls. Buy now. Pay later.
Weights available & in catalogue - weights up to 293kgs 10/7/19 on 1YR old bulls. Vendor Contact: Brian Williams 027 447 5491 or 09 401 9086 PGG Wrightson Agents: Vaughan Vujcich 027 496 8706
106 Yearling Angus bulls at our Annual sale, on farm
4th Sept 2019, 12.30pm
Andrew Reyland 027 223 7092 Bernie McGahan 027 590 2210
Freephone 0800 10 22 76 | www.pggwrightson.co.nz
pggwrightson.co.nz/deferabull
Helping grow the country
MARKET SNAPSHOT
42
Market Snapshot brought to you by the AgriHQ analysts.
Suz Bremner
Mel Croad
Nicola Dennis
Cattle
Reece Brick
Caitlin Pemberton
Sheep
BEEF
William Hickson
Deer
SHEEP MEAT
VENISON
Last week
Prior week
Last year
NI Steer (300kg)
6.00
5.90
5.60
NI lamb (17kg)
8.30
8.20
8.20
NI Stag (60kg)
9.00
9.00
11.40
NI Bull (300kg)
5.50
5.50
5.40
NI mutton (20kg)
5.50
5.50
5.15
SI Stag (60kg)
8.85
8.85
11.40
NI Cow (200kg)
4.40
4.40
4.50
SI lamb (17kg)
7.90
7.90
8.05
SI Steer (300kg)
5.70
5.65
5.55
SI mutton (20kg)
5.40
5.45
5.40
SI Bull (300kg)
5.30
5.20
5.30
Export markets (NZ$/kg)
SI Cow (200kg)
4.25
4.25
4.50
UK CKT lamb leg
9.82
9.71
8.68
US imported 95CL bull
8.11
7.99
6.68
US domestic 90CL cow
7.54
7.40
7.00
Slaughter price (NZ$/kg)
Export markets (NZ$/kg)
$/kg CW Jun
2017-18
Aug 2018-19
Oct
Dec 5-yr ave
Feb
Apr 2017-18
Jun
Mar-19
May-19 Sept. 2020
Last price*
Last year
-
-
3.12
Top 10 by Market Cap 3.38
480
Auckland International Airport Limited
9.81
9.9
7.065
The a2 Milk Company Limited
16.13
18.04
10.42
440
Fisher & Paykel Healthcare Corporation Ltd
16.05
16.82
12.3
Spark New Zealand Limited
4.14
4.185
3.54
400
Mercury NZ Limited (NS)
5.05
5.05
3.51
Ryman Healthcare Limited
13.45
13.45
10.4
360
Contact Energy Limited
8.13
8.14
5.82
Port of Tauranga Limited (NS)
6.15
6.4
4.9
Mainfreight Limited
41.2
43
29.95
320
Jul-18
Sep-18
Nov-18
Company
Jan-19
Mar-19
May-19
Jul-19
440
5620
5830
5900
$/tonne
AMF
6.40
* price as at close of business on Thursday
$/tonne Dec 4 weeks ago
Jan
Close
YTD High
YTD Low
The a2 Milk Company Limited
16.130
18.040
10.420
Comvita Limited
3.000
5.420
2.920
Delegat Group Limited
11.900
12.500
9.400
3.740
4.850
3.450
2.000
1.470
Livestock Improvement Corporation Ltd (NS)
0.900
1.080
0.750
360
Marlborough Wine Estates Group Limited
0.230
0.240
0.192
340
New Zealand King Salmon Investments Ltd
1.920
2.980
1.760
PGG Wrightson Limited
0.240
0.580
0.470
Sanford Limited (NS)
6.890
7.060
6.350
Scales Corporation Limited
4.580
5.130
4.340
SeaDragon Limited
0.002
0.003
0.001
Seeka Limited
5.150
5.350
4.200
Synlait Milk Limited (NS)
9.630
11.350
8.450
380
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
350
2950
Company
1.900
WAIKATO PALM KERNEL
3000
5pm, close of market, Thursday
Foley Wines Limited
Jul-18
3050
Listed Agri Shares
YTD Low
Fonterra Shareholders' Fund (NS)
320
WMP FUTURES - VS FOUR WEEKS AGO
750
5.03
400
6.41
783
YTD High
2530
6.41
787
4.88
2455
Milk Price
304
Close
2425
5100
503
313
Meridian Energy Limited (NS)
SMP
4955
616
314
DAP
420
4750
616
-
vs 4 weeks ago
Butter
Urea
-
2940
Nov
Aug 2018-19
Last year
-
3050
Sep Oct Latest price
Jun
Prior week
30 micron lamb
3005
Aug
Apr 2017-18
Last week
3.42
CANTERBURY FEED BARLEY Prior week
NZ average (NZ$/t)
-
WMP
2900
Prior week
-
Jul-19
DAIRY FUTURES (US$/T) Nearby contract
Last week
37 micron ewe
$/tonne
6.25
Nov-18 Jan-19 Sept. 2019
Feb
FERTILISER
CANTERBURY FEED WHEAT
6.75
Sep-18
Dec
Fertiliser
Aug 2018-19
Super
7.25
5.75
Oct
5-yr ave
Grain
Data provided by
MILK PRICE FUTURES
$/kg MS
$/kg CW
$/kg CW $/kg CW
Dairy
8.5
6.5
Coarse xbred ind. 5-yr ave
9.5
6.5
(NZ$/kg)
Apr
South Island stag slaughter price
7.5
7.5
WOOL
5.0
Feb
8.5
10.5
5.5
Dec
9.5
11.5
4.5
Oct
10.5
5.5
South Island steer slaughter price
4.5
North Island stag slaughter price
11.5
6.5
8.5
6.0
Last year
6.5
South Island lamb slaughter price
4.5
Last week Prior week
7.5
4.5
5.5
Slaughter price (NZ$/kg)
7.5
5.5
5.0
US$/t
Last year
North Island lamb slaughter price
8.5 $/kg CW
North Island steer slaughter price 6.0
Last week Prior week
$/kg CW
Slaughter price (NZ$/kg)
Ingrid Usherwood
300
T&G Global Limited
2.600
2.810
2.590
S&P/NZX Primary Sector Equity
16329
17434
15063
S&P/NZX 50 Index
10874
10898
8732
S&P/NZX 10 Index
10584
10696
8280
250 200
Jul-18
S&P/FW PRIMARY SECTOR EQUITY
Sep-18
Nov-18
Jan-19
Mar-19
May-19
Jul-19
16329
S&P/NZX 50 INDEX
10874
S&P/NZX 10 INDEX
10584
43
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
5.50
SI SLAUGHTER STEER ( $/KG)
5.70
SI SLAUGHTER LAMB ( $/KG)
7.90
R2 ANGUS STEERS, 400KG, AT MATAWHERO ( $/KG)
3.22
A patchy winter arrives NORTH ISLAND
T
HE Far North’s been cloudy and there was fog in low spots on Friday morning. It’s been mild with the temperature hovering around 16C or 17C. Grass growth through late July was very slow but it’s picking up again. Wet areas are a wee bit slushy for the first time this year but soils below the surface are generally still firm. The spread of the rain’s been good. Pukekohe and its veggie growing area have had brief fine periods and squally, heavy showers with scattered hail. The outlook remains similar, which means the existing surface water might not dry up quickly. Volumes of some green vegetables have dropped. It’s been hosing down on and off in Waikato where farmers are heads down, tails up with calving. It’s about half to two-thirds through. Rain in Bay of Plenty has been interrupting pruning on kiwifruit orchards. On our contact’s 750-cow dairy farm 35 calves were born on Thursday, 45 the day before and 35 the day before that so they are coming thick and fast. There’s lots of grass in front of their mums. Grass is bolting in the southern King Country, which is unusual for this time of year and a bit unnerving. It’s turning a bit muddy. Like elsewhere dairy farmers are working long hours with calving. Sheep farmers are vaccinating and set stocking sheep. That’s when they assess how much feed there is in a paddock and stock it accordingly for lambing. The farmer we speak to says even though interest rates are at record lows and prices at a high, farmers are really down. She’s been involved with farming politics for 20 years and says third generation farmers are telling her they don’t want their grandkids to go into farming because of the changes they see coming with climate change. They fear the future will require them to significantly reduce stock numbers and they’re also worried about the push against animal proteins. It’s been a bit wet underfoot in Taranaki where calving is in full swing. Most farmers have good pasture cover and calving is going pretty well with cows coming in quicker than normal. Despite everything on the farm being good, our contact says farmers are feeling under attack from all angles and that’s adding to stress levels. It’s been a kind winter with reasonably mild weather so far on the East Coast. It’s unseasonably dry but not dangerously so. Lambing’s under way in great conditions in the middle country. Lamb prices are getting up to the peak of last year. There’s still concern about good pastoral farms being planted in pine trees, whereas before it was more marginal land that was planted. A farmer we speak to says the harvest of trees planted 30 years ago to control erosion has caused wear and tear on the roads and whole communities have shut up shop and it’s a worry lessons haven’t been learned from that. Farmers in the Wairoa area have been basking in the sunshine and it feels like spring has arrived. Maize farmers are cultivating as fast as they can to take
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NICE PRICE: These 146 prime lambs sold for $207 a head at Coalgate last week. Photo: Nicolle Hughes
advantage of the weather. The dropping maize price is concerning though. It’s fetching $20 to $30 a tonne less than normal. It’s been a smooth winter so far for sheep and beef farmers in Hawke’s Bay but last week’s cooler temperatures have had the farmers sitting up a bit, starting to notice feed is becoming a little short with crops coming to an end. Farmers want a little rain. Lambing is under way in nice, dry conditions. Everyone’s happy with store lamb prices and there have been record-breaking prices of $4.30 to $4.50 a kilo. The down country in Manawatu and Rangitikei has had a dream run despite a little bit of wet and cold recently. But it’s a different story in the hill country where colder weather has seen the feed situation go from comfortable to a little concerning. Lambing in the hill country starts at the beginning of September. Wairarapa sheep and beef farmers are pretty happy and the farmer we spoke to says they have more grass than they normally have in August and the feed is as good as it’s ever been. Ewes are just about to be set stocked and lambing begins in about 10 days. SOUTH ISLAND There’s a skiff of snow on the tops of western and eastern hills in the Nelson and Motueka areas. Some light frosts on the plains have firmed the ground, making it easier for planting and pruning. A grower near Rabbit Island says now that he’s packed this year’s fruit for the local market he can get back into the orchard to finish pear and apple pruning. He’s also got work to do on his commercial peony crop including weed spraying, planting new variety bulbs and dividing existing plants. Hill country farmers in Marlborough are set stocking for lambing. Our contact near Blenheim has seven singles to a
hectare and half that for the twin-bearing ewes. The land was closed off for eight weeks and groomed by cattle. Even though soil temperatures have dropped to 4.5C this week feed covers are the best he’s ever seen. In vineyards the end of pruning and wrapping is in sight. On the West Coast 50mm of snow blanketed a farm at Rotomanu Sunday week ago. It hadn’t snowed there since 2012. The farmer says it didn’t affect his dairy herd too much because the cows have barns to go into to keep warm and dry. Since then calving has kicked off and the first of the colostrum was heading off on Friday. Colostrum has anti-bacterial, anti-viral and anti-fungal properties and can be used in products that support immune and gastrointestinal systems as well as in nutritional and sports formulations. It’s been a great week weather-wise in Canterbury with some northwesterlies to dry things out after being very wet. Lambs are appearing around the district and calving is in full swing on dairy farms. With improved ground conditions, cultivation and sowing of spring crops such as barley and wheat has begun. Half-bred shearing is under way in Central Otago. Crossbreds have already been shorn while the Merinos are keeping their coats for a wee while longer. Scanning-wise, pregnancy percentages are good for mixed-age ewes but results for two-tooths are back a bit on last year. There’s a good cover of snow on mountains and more is expected to fall this weekend. A snow storm in Southland a week ago was tough on animals. A dairy farmer at Edendale says he lost 12 calves in the cold and there are reports of ewe losses on nearby sheep farms as well. The snow was followed by 75mm of rain so conditions are muddy underfoot. The farmer is about 25% through calving and he’s out every two hours night and day checking on cows and calves.
Courtesy of Radio New Zealand Country Life You can listen to Country Life on RNZ at 9pm every Friday and 7am on Saturday or on podcast at rnz.co.nz/countrylife
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44
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
Spring cattle fairs are now under way
175kg, improved to $600-$790. Most heifers, 163-194kg, earned $550-$700 regardless of breed, while HerefordFriesian, 262-268kg, strengthened to $800-$860. All bulls, 220-329kg, traded at $700-$905. Autumn-born Hereforddairy weaner steers, 146-155kg, earned $460-$560, and Hereford-Friesian heifers, 125-151kg, $608-$700. The prime market was solid, and Hereford-Friesian heifers, 465-522kg, improved to $3.01-$3.02/kg. Just over 1400 feeder calves were yarded. Top Friesian bulls lifted to $170-$265, and good Hereford-Friesian up to $370. Medium Hereford-Friesian heifers traded at $120-$150.
BAY OF PLENTY
Momentum has been building towards the spring cattle market and Wellsford joined the action last Monday by holding its annual Grown Steer Fair. There was a clear preference for traditional steers, which sold 20c/kg above similar weighted beef-dairy lines. However, both breed categories were well up on 2018 levels, with traditional steers gaining on average 30c/kg to $3.17/kg while beef-dairy lifted 14c/kg to $2.99/kg. NORTHLAND Wellsford grown steer fair • R2 Angus steers, 412-497kg, earned $3.23-$3.29/kg • R2 Hereford-Friesian steers, 323-535kg, improved to $2.93-$3.11/ kg • Most R2 Angus-Friesian steers, 421-525kg, returned $2.94-$3.10/ kg • R2 Hereford-dairy and Hereford-Jersey steers, 414-513kg, varied from $2.82/kg to $3.04/kg Hereford-Friesian cows with Speckle Park calves-at-foot earned $1310 per unit. Although weather conditions were far from pleasant at WELLSFORD last Monday, a good size yarding of 690 cattle were penned, with a reasonable bench of buyers present. Quality was high for the mainly traditional and dairy-beef offering, and the market was well up on 2018 levels. R2 Hereford steers, 306-485kg, returned $2.98-$3.04/kg, and Simmental-Friesian steers, 428-506kg, sold well at $2.92-$3.03/kg. A small entry of mainly beefdairy heifers was on offer and Hereford-Friesian, 367-428kg, held at $2.75-$2.83/kg, with Hereford-Jersey, 282-345kg, at similar levels.
AUCKLAND Pukekohe cattle • Top prime steers lifted to $3.06-$3.18/kg • Boner cows made $1.90-$2.43/kg • Light R2 steers made $3.24/kg • Medium crossbred weaner steers sold for $420-$450 There was strong competition for prime cattle at last Saturday’s PUKEKOHE sale. The market strengthened with top prime heifers making $3.05-$3.14/kg and bulls at $2.88/ kg. The store section had mixed quality and small lines which softened the market. Very small off-bred R1 steers fetched $470-$690, with medium crossbred heifers at $545$680.
COUNTIES Tuakau sales • Angus-Friesian steers, 311kg, made $2.94/kg • Angus cows at 630kg earned $2.47/kg, $1556 • Charolais heifers, 560kg, fetched $3.14/kg, $1755 • Heavy male lambs made $191-$217 Short supply is keeping the TUAKAU store cattle market firm, Carrfields Livestock agent Karl Chitham reported. Last Thursday’s yarding included 455kg red-whiteface steers which made $3.03/kg, with most heifers, 330-450kg, at $2.90-$3.10/kg. Weaner steers, 110-170kg, made $480-$670 with weaner heifers making $435-$600. Last Wednesday’s prime market was strong. Hereford-Friesian steers at 720kg made $3.20/kg, with others at 550kg-plus fetching $3.08$3.17/kg. Most heifers, 420-465kg, earned $2.97-$3.04/kg. Friesian cows, 520kg, returned $2.24/kg, and 487kg, $2.02/ kg. Good-medium prime lambs traded at $160-$174 on Monday. Lighter primes made $143-$149 and good store lambs, $107-$134. Prime ewes sold up to $183, with most good-mediums earning $147-$165.
WAIKATO Frankton cattle and feeder calf sale • R2 Hereford-Friesian steers, 326-470kg, lifted to $3.26-$3.30/kg • R2 Angus heifers, 435kg, and Hereford-Friesian, 443kg, both earned $3.06/kg • Seventeen R1 Hereford-Friesian steers, 239kg, sold for $910 • R1 Hereford bulls, 198kg, sold well at $840 • Most prime steers, 630-696kg, traded at $3.00-$3.06/kg A larger yarding of store cattle was penned at FRANKTON last Wednesday, and good demand improved the market for most. R2 Hereford-dairy steers, 383-452kg, earned $3.01$3.05/kg, while Angus-Friesian, 377-379kg, were strong but variable at $3.13/kg to $3.36/kg. Friesian heifers, 381-437kg, lifted to $2.72-$2.80/kg. R1 Hereford-dairy steers, 135-
Rangiuru cattle and sheep • R2 Angus steers, 376-402kg, made $2.96-$3.01/kg • R2 Hereford-dairy steers, 300-482kg, sold for $2.92-$3.01/kg • In-calf Red Devon cows, 512kg, made $1390 • Boner Friesian cows, 550-595kg, firmed to $2.33-$2.39/kg • Top prime ewes made $150.50, with medium lines $116-$125 It was a very colourful yarding at RANGIURU last Tuesday with the pens full of crossbred cattle. Prime supply was limited to 26 head, and Angus-Friesian steers, 683kg, were the best at $3.28/kg. At the previous store sale all R3 lines traded over $3.00/ kg, but only Hereford and Hereford-Friesian heifers, 424467kg, were at this level, making $2.98-$3.01/kg. R2 steer prices were down slightly, though Angus, 455kg, managed $3.16/kg. R1 steers over 200kg all sold for $640-$690, with Simmental bulls, 252kg, slightly higher at $740. Prices for lambs and ewes dropped, with the top price for prime lambs $183, and store lambs $128.
POVERTY BAY Matawhero store cattle sale • R3 Angus and Angus-Hereford steers, 555kg, sold very well at $3.39/kg • Good quality R2 traditional steers, 320-400kg, made up to $3.39$3.44/kg • R1 Angus-cross steers, 275kg, returned $970 • Autumn-born weaner heifers, Angus and Angus-cross, 140160kg, traded at $400-$500 Last Tuesday’s store cattle sale at MATAWHERO had mixed results, with selective bidding from buyers. R2 steers made up a large portion of the yarding and sold in a wide range, although the average value was $1285, $3.22/kg. R2 heifers were mostly Angus and Angus-cross, 275-385kg, which earned $2.84-$2.95/kg. There was a good number of R1 heifers which sold according to weight and type with the top end fetching $860-$955. Matawhero sheep • Medium store ewe lambs made $120-$135 • Mixed age Wiltshire-cross ewes sold for $132 • Top prime lambs made up to $210 Store lamb tallies were low at just 689 head at MATAWHERO last Friday. Very heavy cryptorchid and male lambs made up to $181-$183, while medium types were around $140-$147. Medium ewe lambs were bought for an average of $121-$124. Prime lambs mostly earned $150$185 with very heavy lambs above this, while mixed age prime ewes were mostly bought for $16.
TARANAKI
TOP BUY: This pen of 15 R2 purebred Angus steers, 497kg, sold for $1605, $3.23/ kg, at Wellsford last week.
Taranaki cattle • R2 Hereford-Friesian and Murray Grey-Friesian steers, 348-363kg, made $3.25-$3.29/kg • R2 Hereford-Friesian heifers, 276kg, sold for $3.04/kg • R1 Hereford-Friesian steers, 275kg, earned $980 • R1 Hereford-Friesian heifers, 268kg, fetched $760 • R1 Hereford-Friesian bulls, 246kg, traded at $820 Last Wednesday’s TARANAKI cattle sale was generally firm, considering the lesser quality and lighter weights on offer. R3 Hereford-Friesian steers, 430kg, were steady at $3.15/kg, with same breed heifers, 475kg, at $2.96/kg. Most R2 steers sold on par with the previous week, although lesser- types softened to $2.95-$3.06/kg. While heifers were mixed and in general this market softened. R1 steers also struggled to match the high prices of the previous sale with lesser-types making $600-$790.
HAWKE’S BAY Stortford Lodge prime cattle and sheep • Angus steers, 582-612kg, improved to $3.23-$3.29/kg • Beef and exotic heifers, 457-680kg, held at $3.00-$3.08/kg • Top end male lambs improved to $208.50-$224 • Very heavy ram lambs held at $200-$215 • Very good ewes lifted to $155-$173.50 Just under 50 cattle were yarded at STORTFORD LODGE last Monday and all sold on a steady to firm market. A small
SALE YARD WRAP
FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019
45
• Medium wether store lambs fetched $152 • Top prime lambs made $225-$242 Competition for store lambs remained strong at last Tuesday’s CANTERBURY PARK sale. A good quality offering lifted the average price to $138.57. Prime lambs softened with most making $150-$207, while heavy prime ewes returned $150-$190. Quality was mixed through the combined store and prime sale. Lighter R2 traditional and dairy-beef steers made $2.84-$2.95/kg, while R2 traditional heifers, 407-425kg, managed $2.86/kg. Prime volume was limited, and straight beef steers mostly made $3.00$3.08/kg, with lesser types below this. Prime heifers were commonly bought in a range of $2.81-$2.93/kg. Boner cows sold well with Friesian, 738-835kg, earning above $2.00/kg. Coalgate cattle and sheep • One-shear crossbred ewes, scanned-in-lamb, made $175-$200 • R2 Angus and Angus-Hereford heifers, 435-444kg, earned $2.83$2.86/kg • R2 Hereford-Friesian heifers, 337-428kg, sold for $2.80-$2.85/kg • Prime steers, 590-700kg, sold up to $3.00-$3.06/kg • Prime cows, 620-745kg, held at $2.08-$2.15/kg The prime lamb market was the highlight at COALGATE last Thursday. The top lines made $219-$250, while a quarter of the yarding was $200-$209. The few top end prime ewes achieved $191-$200, with medium through to good at $150-$185. Good store lambs made $151-$158, with the next cut down at $130-$141. A hint of spring helped R2 Hereford-Friesian lines as the top steers, 381kg, made $3.18/kg and 369-382kg, $2.93-$2.98/kg. Prime heifers varied as top lines reached $2.88-$2.97/kg, and 470-475kg, $2.78-$2.86/kg.
SOUTH-CANTERBURY
RUGGED UP: This line of 149 male lambs sold for $210 at a very chilly Stortford Lodge last week.
consignment of ex-service Hereford bulls, 540-557kg, were purchased for $3.15/kg. Out in the sheep section lamb throughput increased to 1950, with solid demand from the rails. Heavy to very heavy male lambs eased slightly to $165-$204.50, as did mixed-sex to $160-$183, while heavy to very heavy ewe lambs held at $173.50-$190. A smaller ewe yarding sold in smaller lines to strong demand, with improvements across the board. Heavy mixed-age ewes lifted to $184-$188, as did medium to good at $115.50-$152. Stortford Lodge store cattle and sheep • Heavy cryptorchid lambs eased to $175-$188, though one line reached $190 • Heavy ewe lambs held at $167-$181 • Good ewe lambs came back to $129-$165 • R2 Hereford-Friesian and Angus heifers, 372kg, sold for $2.80$2.81/kg • Ten R2 Angus steers, 397kg, made $3.25/kg The cattle pens were quiet at STORTFORD LODGE last Wednesday, but in contrast just over 8500 lambs were penned. Ewe lambs made up 67% and, while most types eased medium lambs bucked the trend, selling on a lifting market at $143-$148. Fewer male lambs were offered but most were very heavy types. Only a handful sold below $155, though good to heavy males eased to $155-$173. Mixed sex varied from $117 to $156. Two small lines of good ewes with forward lambs-at-foot sold for $128-$131 all counted. Just over 100 cattle were penned and R1 Angus and Angus-Hereford steers, 305kg, sold for $910, while heifers, 295kg, returned $810. Beef-dairy bulls, 208-253kg, made $625-$630.
MANAWATU Feilding prime cattle and sheep; feeder calves • Very heavy male lambs firmed to $203-$233 • Ewe lambs rose with very heavy lines at $196.50-$211 • Boner Friesian cows, 475-525kg, firmed to $2.34/kg • Charolais-cross bull calves fetched $350-$400 The usual sheep buyers worked hard against each other at FEILDING last Monday, to push the market up another $11 per head to a $198.70 average. Heavy mixed-sex lambs rose $10 to $196-$230, with heavy lines firm at $181-$191. Only one line of lambs sold below $158. Ewe quality overall was down but prices rose with very good lines at $175-$179, and good $139-$158. The boner cow pens featured a high proportion of in-calf lines, with the top Friesian, 564-700kg, selling at a premium of $2.62-$2.72/kg, and the balance mostly $2.54-$2.62/kg. Medium and good Friesian bull calves eased slightly to $100-$185, while good beef-Friesian bulls earned $190$260. Good beef-Friesian heifers made $160-$235, and medium, $115-$135. Feilding store sale
• Capital stock VIC traditional cows, 420-425kg, were $1420-$1450 • Traditional R2 steers, 405-435kg, made $3.19-$3.13/kg • Two large lines of R1 Angus steers, 265-315kg, were $4.01-$4.17/ kg • Average store lamb price fell to $141 • Top cuts of in-lamb ewes were $216-$242 Positive selling continued on the 1200 store cattle. Some traditional R3 steers, 535-570kg, were very strong at $3.36$3.49/kg, but the other 400-450kg straight beef R2 steers were centred on $3.20-$3.25/kg. Quality was up-and-down on the R2 bulls - one big line of 450kg Friesians were $3.15/ kg, but $2.90-$3.05/kg was common on the rest. Top-quality R1 steers were hotly contested with 245280kg traditional and Simmental-cross at $3.77-$3.91/kg, however $3.30-$3.60/kg was standard on mixed quality options. R1 Friesian bulls, 200-240kg, were $3.38-$3.51/kg and traditional 200-240kg R1 heifers made $3.32-$3.47/kg. Everything was more muted down on the lambs. The 13,000 available began back on last week and only eased further as the sale progressed. The Marton Hogget Fair falling on the following Wednesday likely kept some buyers away. Good male lambs mainly sold for $160-$181, but the more medium lines were nearer to $136-$154 and all but the tail-enders made $120$134. The better end of the ewe lambs were mainly at $145$168, a narrow mid-range selection making $130-$141, and basically everything else only $109-$126.50. Nine hundred in-lamb ewes had another good sale. Good two-tooth and mixed age ewes, SIL 157-161%, were $216-$223, with another two pens with better percentages up at $230-$242. Rongotea • R3 Hereford bulls, 590kg, traded at $2.84/kg • R2 Hereford-Friesian steers, 475kg, earned $2.84/kg • R2 Friesian heifers, 277kg, varied from $2.09 to $2.39/kg • Friesian boner cows, 545-570kg, lifted to $1.93-$2.14/kg • Yearling crossbred steers, 392kg, made $970 There was a smaller cattle sale last Wednesday at RONGOTEA, New Zealand Farmers Livestock agent Darryl Harwood reported. A large portion of the yards were calves and Friesian bulls made $125-$150, with Hereford-Friesian at $180-$245, and Angus-cross, $100-$115. HerefordFriesian heifer calves fetched up to $150-$185, with Angus-cross at $90-$200. Weaners varied, beef-cross steers and bulls, 110kg, made $300-$390, with Angus-cross bulls, 111kg, above this at $545, and same breed heifers, 106kg, managed $490.
CANTERBURY Canterbury Park cattle and sheep • R2 traditional and exotic steers, 410-491kg, earned $3.02-$3.07/kg • R1 Friesian steers, 380kg, sold for $810 • Prime Charolais steer, 640kg, sold well at $3.26/kg
Temuka prime and boner cattle; all sheep • Medium to good mixed sex store lambs eased to $120-$142 • Light mixed sex store lambs sold for $106-$124 • Prime Angus and Hereford bulls, 640-733kg, all sold for $2.65$2.78/kg. • Boner Friesian cows, 525-575kg, held at $1.90/kg • Boner Friesian cows, 475-525kg, eased 2c/kg to $1.84/kg Store lamb pricing faltered at TEMUKA last Monday, with the average price and weight down as quality was mixed. In the prime lamb pens triple the previous weeks tally was presented, with the top pens rising to $210-$229 and the next cut down $180-$208. A third of the yarding were medium lines at $160-$175. Prime steers provided a third of the cattle yarding and prices were up. Traditional steers averaged 565kg, $3.04/kg, while beef-dairy averaged 570kg and $2.97/kg. High-yield heifers were in demand, with four Hereford-Friesian, 585kg, the best at $3.01/kg with a good portion of the class at $2.90-$3.00/kg.
OTAGO Balclutha sheep • Heavy prime lambs made $170-$190 • Heavy prime ewes sold for $160-$180 • Heavy prime rams earned $100 • Top quality Romdale ewe lambs fetched $149 At BALCLUTHA last Wednesday, prime ewes sold on a steady to strengthening market with light to medium types earning $100-$150, while prime lambs varied with out of spec types softening. Store lambs continued to sell well, with most top lambs trading at $130-$135 and light to medium types lifting to $100-$125.
SOUTHLAND Lorneville sale • Heavy prime lambs made $170-$180 • Heavy prime ewes strengthened to $180-$190 • Prime cows, 400-450kg, sold for $1.80/kg At LORNEVILLE last Tuesday snow across Southland meant a very small yarding of store and prime lambs and sheep. Light to medium prime lambs lifted to $140-$168, while light to medium ewes earned $130-$178. Mixed-age Texel-cross scanned-in-lamb ewes, in very good condition sold for $242. A small number of R2 beef-cross cattle were on offer, with 350kg steers trading at $2.86/kg, and 344kg heifers, $2.88/kg. Charlton sheep sale • Heavy prime lambs made $180-$200 • Heavy prime ewes earned $150-$180 • Heavy local trade rams sold for $80 • Top store lambs made $130 There was a good-sized yarding of prime lambs at CHARLTON last Thursday, with light to medium earning $140-$175. Prime ewes were mostly steady, although the bottom end softened to $80-$100. Breeding ewes were on offer and annual draft, SIL 195%, made $241, with fiveshear, SIL 175%, at $236. Four-five shear, SIL 187%, fetched $208, while two-tooths SIL with singles fetched $200.
Markets
46 FARMERS WEEKLY – farmersweekly.co.nz – August 12, 2019 NI SLAUGHTER STEER
NI SLAUGHTER LAMB
SI SLAUGHTER BULL
($/KG)
($/KG)
GOOD EWE LAMBS AT STORTFORD LODGE
($/KG)
($/HD)
8.30
6.00
5.30
high $3.23-$3.29/kg $160-$209 prime lambs at lights R2 Angus steers, 410- Most Coalgate
155
495kg, at Wellsford Grown Steer Fair
ACROSS THE RAILS SUZ BREMNER
NZ meat industry exports to China – rolling 12 month FOB Value – by product type
NZ Meat Industry Exports to China - Rolling 12 Month FOB Value - by Product Type
$1,500,000,000
$1,250,000,000
$1,000,000,000
There’s a silver lining in the dark cloud over farming
Beef Beef Beef Beefoffals offals Sheepmeat Sheepmeat
Sheep Sheepoffals offals Tripe Tripeand andcasings casings Tallow
Tallow
$750,000,000
Hides and skins
Hides and skins
MBM
MBM
$500,000,000
$250,000,000
$0
Source: Compiled by MIA from Statistics New Zealand overseas merchandise trade data
12 Month period to
Source: Compiled by MIA from Statistics New Zealand overseas merchandise trade data
NZ Meat Industry Exports to China - Rolling 12 Month FOB Value - Combined Value
3,000,000,000
Value (NZD)
China boosts beef buy 2,750,000,000
Beef
2,500,000,000
Beef offals
2,250,000,000
Sheepmeat
2,000,000,000
Sheep offals
1,750,000,000
Tripe and casings
1,500,000,000
Tallow
share with 2571/t, up 190%, ahead of Japan 1751/t or 19% share. Next in line were the US, UAE and Taiwan. 1,250,000,000 Alan Williams Hides and skins By value, Japan was just above $24m alan.williams@globalhq.co.nz 1,000,000,000 MBM and China just below that figure for a 750,000,000 225% increase over the year before. HINA’S new status as the leading destination for beef 500,000,000 exports now covers a bulky 250,000,000 lift in chilled products. The expensive cuts 0 expensive cuts But the going into Japan make it the high-value going into Japan make it the market. high-value market. China hadCompiled the largest volumes Source: by MIA chilled from Statistics New 12 Month period to Zealand overseas merchandise trade data for the year ended June 30, the three months to the end of June and for the month of June. The pattern was similar for June with It took 7070 tonnes for a 21% share China first at 815/t or 27%, a 189% New Zealand’s annual exports, a 273% increase, and Japan up slightly at 613/t increase over the previous year, edging and the same three countries at third to Japan which took 6756/t, a 20% share. fifth on the list. Again, Japan was tops on Japan’s imports were worth $91.1 value with $8.6m or 22% of receipts and million, 21% of chilled export value, China $7.6m, up 223%, ahead of the US while China’s $63m worth was 15%. at $4.6m. The next biggest chilled markets were Though China tops the list for chilled the United States, United Arab Emirates, imports, they make up a small portion Taiwan and French Polynesia. of its New Zealand beef, just 3.2% of the In the June quarter China had a 27%
C
total 25,596/t in June and about 4% of both the 64,771/t for the quarter and 171,173/t for the year. The exponential growth in the monthly exports by value of beef and edible offal to China this year, compared to the previous five years, is highlighted on the graph. Total Japanese imports for the six months to June, covering the start of the Comprehensive and Progressive Trans Pacific Partnership trade agreement, were 29% higher than the corresponding time in 2018, Meat Industry Association chief executive Tim Ritchie said. The Netherlands, Germany and Switzerland were the main European markets but not major destinations. Australia was eighth on the list for chilled NZ beef in June, taking 93/t, a 73% lift on the previous year. For June, it was in 10th place for total beef imports, taking 360/t, just a 1% share of NZ exports, but a volume lift of 214%. Ritchie said total beef export volumes for the June year rose 9% but the increase in value was much greater at 13%.
THE last year or so has thrown a lot at the farming community. Mycoplasma bovis combined with talk of emissions taxes and farmers selling up for forestry have created a dark cloud over the industry but, for once, the silver lining has been positive outlooks for New Zealand meat and, in turn, farmgate livestock prices. To a large degree we farmers are price takers, having to adjust margins and budgets to meet the market, essentially, and many know what it feels like when the shoe is on the other foot – when lambs are barely making a margin over the cost of rearing them. Unfortunately, those costs don’t alter when the prices do so there have been years when making ends meet has been a real struggle. In the past few years we have been rewarded with high overseas demand for our products, which has been partly responsible for very strong farmgate prices and if there is any time that we need a big positive like that it is now. In a time of unrest it is keeping farmers optimistic about their industry and determined to protect it as much as possible. Lamb prices continue to reward sellers though buyers are still seeing a good margin. Spring cattle fairs have just got under way and there is a clear lift on last year’s levels though there is some chatter about how the beef-dairy market will hold up if we get an oversupply in that market. That’s not likely for the traditional market, though, with those breeds well sought after and attracting high premiums. As an agri-market analyst it has been a pleasure to be able to bring good news to readers each week and while no-one is under any illusion there won’t be a downside at some stage, at least we can enjoy something positive when we need it most. suz.bremner@globalhq.co.nz
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