Farmers Weekly NZ December 12 2022

Fonterra shrinks forecast

Lamb price hits the skids

and demand in China is hindered by lockdown policies to control Covid.

THE speed with which new season prime lamb prices have fallen below $8/kg has surprised a market analyst.

The AgriHQ indicator price is now $7.95/kg in the South Island and $7.90/kg in the North Island, falling from a range of $9.55$9.60/kg at the start of October.

The price is over $1/kg lower than at the same time last year, reducing the value of a 17.5kg cwt lamb by between $17 and $22 a head.

AgriHQ senior analyst Mel Croad said export lamb prices rose to record levels as economies emerged from covid restrictions, but she is surprised at the speed with which they have fallen.

It reflects weaker international lamb markets – and Croad fears prices could ease further.

Analysts had been forecasting prices to bottom out at $7.50$7.60/kg in February-March.

Croad said they could be at that level by Christmas as the seasonal lamb kill ramps up, putting even more pressure on subdued markets.

“I’ve never seen this amount come out of schedules in such a short time and at this stage of the season,” said Croad.

“Every market has weakened almost simultaneously and this time we don’t have China as a backstop.”

Confronted with inflation, consumers are reducing their spending or buying cheaper cuts,

“However, that could change as China makes sweeping changes to their covid-zero policies this week,” said Croad.

Compounding the problem has been a strengthening in recent weeks of the US-NZ exchange rate from US56c to close to US64c, reducing values in NZ dollar terms.

Greater volumes of Australian lamb are also competing for market share.

A year ago a New Zealand lamb leg in the UK was selling for £7/ kg. It is currently selling for £4.75/ kg. The reduction has been less in Europe, at €7.70/kg compared to €6.55 at present.

A year ago in China, lamb flaps were making US$9.45/kg. Currently they are averaging US$6.20/kg.

The AgriHQ indicator price for mutton has similarly fallen. A year ago it was $6.50-$6.60/kg but this year it is $4.25-$4.35.

Croad said fortunately an abundance of feed is giving farmers options by reducing the need to quit stock.

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Neal Wallace MARKETS Beef and lamb

I’ve never seen this amount come out of schedules in such a short time and at this stage of the season.

Mel Croad AgriHQ

EDITORIAL

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Managing Editor bryan.gibson@agrihq.co.nz

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News

brief

Hort exports rise

New Zealand’s horticulture export earnings have risen by $255 million in the past two years despite disruption to supply chains.

A Horticulture Export Authority report shows a 6% rise in export earnings since 2020, to $4.8 billion. Kiwifruit and apples accounted for 79% of total export value in 2022.

New Zealand’s free trade agreement with the UK was recently ratified by Britain’s House of Commons.

The UK FTA is regarded as one of the best trade deals New Zealand has signed. The government has estimated it will be worth $1 billion a year to the economy and it will end all tariffs on New Zealand exports, most of them on day one.

Nominations are being sought for the Norwood New Zealand Rural Sports Awards.

Organisers expect to receive nominations for sports as varied as wood chopping, shearing, horse riding, tree climbing, shooting, highland heavies, gumboot throwing and fencing.

Given the disruptions of covid-19, the awards in 2023 will be for achievements in both 2021 and 2022.

Nominations close at 5pm on January 23 and finalists will be announced in February 2023.

Agreement ratified Nominations open Fencing title

Reigning champion Tony Bouskill went wire to wire at Mystery Creek last week, again winning the Golden Pliers singles title at the New Zealand Fencing Competition. It was his fourth win in a row.

Sander Visser took top spot in the Bill Schuler competition. Bouskill teamed with his father Shane Bouskill to also clinch the Fieldays Silver Spades Doubles Championship.

Weak China demand suits tight dairy supply

Hugh Stringleman MARKETS Fonterra

THE first Global Dairy Trade auction for December produced a 0.6% rise in the overall price index, led by 4.7% increase for butter milk powder, 1.8% increases for both anhydrous milk fat and cheddar and 1.7% for skim milk powder.

Without any fresh global dairy market news, prices appear to be treading water, Westpac senior agri economist Nathan Penny said.

The strengthening of the New Zealand dollar in foreign exchange markets may help to explain some of the dairy price lift.

After being as low as US56c in October, the NZD has now risen to 63c.

Mechanically, there is just less of a need for NZ dairy exports as long as China’s covid restrictions remain in place.

Nat Keall ASB

“Dairy auctions are priced in US dollars, so for many buyers, dairy prices will have become cheaper in their local currency terms.

“However, the higher NZD does pose some downside risk for the milk price, particularly for next season, as Fonterra will have hedged a large proportion of this season’s sales already.”

GDT results are consistent with Westpac’s current $8.75/kg milksolids farm gate price forecast, which is near the bottom of Fonterra’s $8.50 to $9.50 range.

The dairy commodities market is lacking direction at present, something desperately needed according to NZX dairy analyst Stu Davison.

The slight increase in the GDT price index was a surprise as steady demand from Southeast Asian buyers pushed prices for five of the seven commodities offered

into positive territory, he said.

The only products to record negative price movements were butter, down 1.9% compared with the previous auction, and lactose, down 0.8%.

ASB economist Nat Keall said the absence of Chinese demand for whole milk powder was the standout feature of the GDT auction.

“The quantity of WMP purchased by North Asia is far below the levels of last year and even further below early 2021 when aggressive Chinese demand sent prices skyrocketing.

“In concert with tight global supply, aggressive purchases by China helped fuel the massive gains in dairy prices we saw over early 2021, and then largely kept prices high over the first part of this year.

“The subsequent absence of strong Chinese demand has been sorely missed.”

ASB published a chart that showed how the softening in the WMP price indices has tracked China’s shrinking proportion of purchases.

Chinese covid policy is the big swing factor, Keall said.

The combination of decent Chinese dairy output and widescale disruption to the foodservice industry from covid restrictions, means the country can meet much more of its dairy needs through local production.

“Mechanically, there is just less of a need for NZ dairy exports as long as covid restrictions remain in place.

“With constrained supply helping offset the price impact of soggier demand, underlying USD dairy prices are still holding up relatively well.”

ASB reckons Fonterra will be 90% hedged for the season at around US64c, which is a very favourable rate.

Therefore, ASB is comfortable with its milk price forecast of $9.40.

“Amid all the challenges they have faced this year, a strong milk price is something farmers can be grateful for.”

Fonterra shrinks forecast in an unstable market

Piddock MARKETS Dairy

AVOLATILE global dairy market has prompted Fonterra to lower and narrow its milk price forecast from $8.50-$10 per kilograms of milk solids to $8.50$9.50/kg MS with a new midpoint of $9/kg MS.

Fonterra chief executive Miles Hurrell said the volatility has resulted in some softening of demand for whole milk powder, particularly in China.

This is reflected in the cooperative’s revised milk price forecast, he said.

“We’ve seen increased participation from other regions, which has offset in part the drop in demand from greater China. While it’s still early in the financial year, we are happy with our sales contract rate.”

Hurrell said Fonterra continues to feel the impact of geopolitical and macroeconomic events, with higher costs at every point in the supply chain.

“It’s a similar story behind the farmgate with our farmer shareholders managing significantly higher input costs.

“Globally, milk supply from key exporting regions is down over the last 12 months. Production in Europe and Australia continues to be down, with US milk supply showing a slight improvement in recent months. Here in New Zealand, our milk production is down 2.9% on the same point last season,” he said.

Its advance rate remains unchanged. Fonterra also reported a strong start to the 2023 financial year, which has prompted the cooperative to upgrade its earnings guidance to 50-70 cents per share from 45-60 cents per share.

Hurrell said the strong performance of the co-operative’s ingredients channel reflects continued favourable margins in Fonterra’s protein portfolio, particularly for casein and caseinate products used in medical nutrition.

“This is driving the increase in total group normalised EBIT,

Continued from p1

Some international buyers who were previously priced out of the market are now re-entering but that is unlikely to stop the slide in the immediate term.

Croad said beef prices are above the five-year average, although weaker than a year ago.

Prices are unlikely to fall as rapidly as lamb because beef has more market options and is positioned at a lower price point.

The price for manufacturing beef a year ago was a record US$2.90US$3.15/lb but is now ranging at US$2.20-US$2.30/lb.

AgriHQ senior analyst Suz

Over the next five years, the partnership will examine all aspects of farm operations to identify opportunities for carbon reduction.

which is up 94% to $368 million.

“Normalised profit after tax is also up 84% to $214m and normalised earnings per share are 13 cents, compared with 7 cents at the same point last year.

“The sustained strong margins in our protein portfolio give us the confidence to upgrade our earnings guidance, although the wider range reflects the volatility in the market, which we expect to continue in the short to medium term.

“If these conditions continue for a further extended period, it could have an additional positive impact on forecast earnings.”

Performance in Fonterra’s foodservice channel improved relative to the same period last year, but the high milk price is continuing to put significant pressure on margins in both the foodservice and consumer channels.

Significant progress has been made on shipping the additional inventory held at the financial year

Bremner said saleyard numbers are smaller than normal due to an abundance of feed, and she has noticed buyers and sellers are cautious.

Lambs that are being offered have sold at prices she describes as acceptable given the market uncertainty.

In contrast, the beef market is much more positive.

“Beef cattle markets are positive because of feed levels and we are seeing new parties coming in.”

For the first time in five years weather forecaster Philip Duncan is not using the word “drought” in his December Climate Watch outlook.

end with volumes returning to normal, Hurrell said.

Lower milk collections at the start of the season have also contributed to the reduced inventory levels.

He said Fonterra is also making good progress against its 2030 strategic ambitions.

“As we focus on our New Zealand milk pool, we’ve agreed the sale of our Chilean business. We continue to target a significant capital return for our farmer shareholders and unit holders.”

On the sustainability front, Fonterra has partnered with Nestlé to develop a commercially viable, net-zero carbon dairy farm.

“Over the next five years, the partnership will examine all aspects of farm operations to identify opportunities for carbon reduction by using proven and future technologies to work towards its net-zero carbon target. We’ve also signalled that we’re considering setting a target for Scope 3 emissions.”

Next year will also see Fonterra implement its new capital structure, he said.

Looking ahead, Hurrell said the long-term outlook for dairy remains strong.

“There’s no doubt that we’re in a period of increased global uncertainty. Inflationary pressures are being felt both on farm and across our business but looking further out, the fundamentals for dairy remain positive.”

The WeatherWatch chief forecaster describes the general weather outlook for summer as offering plenty of variety with most areas expected to receive regular rainfall.

Some isolated areas will by drier than usual, but Duncan says there is nothing to suggest widespread drought.

He says the influence of La Niña is starting to ease, with weather patterns set to be influenced by systems out of the Southern Ocean.

“It is a messy weather map, with plenty of variety and different air flows, which will ensure rain reaches most areas,” he says.

Gerald

BACK: Fonterra chief executive Miles Hurrell says the lower milk price forecast is a re ection of a volatile global dairy market that has led to a softening of demand.

Miles Hurrell Fonterra

GOING DOWN: ASB economist Nat Keall says the absence of Chinese demand for whole milk powder was the stand-out feature of the GDT auction.

Wool skills course set to uplift sector

wool quality at the top of the priority list, or on their list at all.

But it is past time, Gavigan said, to turn that around.

THE resurrection of extended wool harvesting training is set to have huge impact on the future viability of New Zealand’s strong wool industry, say those involved in the upskilling.

A drop in the standard of wool preparation has put NZ’s reputation as producers of high-quality crossbred wool at risk as, given the low return for their wool, many crossbred wool farmers seem to believe the less spent on their wool preparation the better.

There are messages echoing from the wool trade, from brokers, exporters, woolscourers and manufacturers, about the value and importance for NZ wool in the long term of upholding its reputation.

Crossbred wool producer, former NZ Wool Board director and current industry tutor Richard Gavigan said that, like his farming colleagues, he has found the wool part of the farm system on his 320ha Pahiatua hill country property very tough in recent years.

He said it is understandable that a lot of farmers do not have

A lot of woolhandlers can move a broom but not many of them understand the why of clip preparation and what they need to do to maximise the farmer’s return ... we simply have not provided them with the training.

Richard Gavigan Farmer and industry tutor

“If we don’t up the standard of clip preparation now the farmers are going to lose out as we are putting NZ’s reputation as producers of high-quality wool at risk.

“There are some good signs for wool, I’m confident demand will increase and we want to be able to meet the demand.”

Calculations done on the financial impact of poor clip preparation do not relate to the cost savings in reducing woolhandling staff, Gavigan said.

“The potential discount for sub-standard clip preparations typically ranges from 40-90 cents per sheep.

“This is a lot more than the cost saving for a wool handler of 20c per sheep, so we’ve got to be very careful.

“As farmers we can quite easily end up shooting ourselves in the foot, while also having an effect on wool processing and NZ’s reputation as a wool producer.

“We need to work hard and we all have a role to play here.”

Putting on his farmer’s hat, Gavigan said he has noticed a real drop-off in the level of understanding of what wool handlers should be trying to achieve in the woolshed.

“A lot them can move a broom but not many of them understand the why of clip preparation and what they need to do to maximise the farmer’s return and at the same time, optimise the value of that wool to a processor.

“That’s not the fault of wool handlers, we simply have not provided them with the training opportunities in recent years.”

Some “good stuff” has been done over the past couple of years introducing new people and teaching them, but

experienced wool handlers also need ongoing learning opportunities to get the best results for the farmer and the rest of industry outside the farmgate.

“We badly need to give our woolshed staff a quality focus again,” Gavigan said.

With the help of the NZ Woolclassers’ Association (NZWCA) and through the Southern Institute of Technology, a course delivering practical and effective training for improved wool harvesting and handling resumed in November.

Gavigan, with support from the NZWCA, has been the driver behind getting the courses – run under the umbrella of Telford –up and running again.

In recognition of the importance of wool handling and preparation, Wool Impact committed funding to the delivery of the course with two training events, one each in the North and South Islands, delivered in November.

The two-day block course, in partnership with the NZWCA and the NZ Shearing Contractors’ Association, combines shearing and wool handling training.

More courses will roll out in 2023.

Wool Impact sector executive Ross McIsaac said quality is a value differentiator.

“To add value, we need quality wool so the job that is undertaken in the woolshed is vitally important.

“International markets buy NZ wool because it is whiter, brighter and cleaner, and if we are not doing the job then we are not producing the quality the markets are demanding.

“The team behind the course has done a lot of good work. We are now working on securing an enduring funding model going forward,” McIsaac said.

Otago’s fruit picking season looks peachy

Neal Wallace NEWS Horticulture

A SHORTAGE of fruit pickers may not be the issue for Central Otago orchardists this season that it has been for the past two years.

Orchardists are confident they have enough staff, with New Zealanders returning from last season and an influx of backpackers now that borders have reopened.

Tim Jones, chief executive of 45 South, said he has a full complement of 500 workers and Kevin Jackson of Jackson Orchards said he has the 100 he needs.

“Everyone I talk to says they are pretty comfortable where they are at,” said Jones.

“They’ve had good inquiry and people on a waiting list if people don’t turn up.”

Jones said two years of promoting seasonal orchard work is paying dividends.

Jackson will need about 100 staff at the peak and said some are New Zealanders who spend summer travelling the country and look for work to top up their income.

Annette Scott NEWS Skills

CLEAN FLEECE: Wool tutor of 60 years Laurie Boniface and course tutor Richard Gavigan say there are compelling reasons to uphold quality in wool preparation.

HARVEST TIME: Cromwell orchardist Kevin Jackson inspects peaches that were ready for picking this week.

Sustainable goods cash in on ‘green premium’

NEW ZEALAND’S

primary sector producers can achieve significantly higher returns for products by cashing in on a “green premium”, new research shows.

Released by Lincoln University’s Agribusiness and Economics Research Unit (AERU), and funded by Our Land and Water, the research reveals New Zealand producers are creating higher returns from sustainably produced primary products.

In some cases that premium is 20-100% greater than nonsustainably produced equivalents.

Lead researcher Professor Paul Dalziel said regardless of the sector or ownership structure, greater value can be generated when primary producers are part of a high-functioning value chain that’s committed to shared sustainable values.

“The idea is that we are producing a quality product that consumers recognise as quality, not just because it tastes great and looks great but also because it has been produced with care for the environment,” Dalziel said.

“Because producers are connected to their local community, because there is an authentic story embedded in a product, and it is a quality product, consumers are willing to pay a premium for that experience.”

The study aimed to identify the common attributes of successful primary sector exporters of products such as honey, wine, dairy, beef, fruit – even jewellery and an emerging cosmetics brand – as well as Māori-owned and family-owned businesses.

Beef + Lamb NZ’s Taste Pure Nature campaign was an example of the success of value chain thinking, he said. Using AERU

insights, BLNZ has the potential to achieve a 20% price premium in the United States and add $238 million in export returns by promoting sustainability.

Ngāi Tahu created a value chain with South Island Pounamu by registering the stone, using approved artists for carving,

recording its weight and origin and enabling purchasers of art to trace the stone’s history through unique codes and photographs. That has provided a premium of between 40% and 100% over competitors.

“That is an outstanding example of where the producer is connecting with consumers to create and capture value,” Dalziel said.

NZ has been a world market leader in the primary industry for a long time “but the world is changing”.

“We have to work harder to understand what it is the final consumer values and how can we align that to our own values on the farm and in the orchard.”

It is not easy for some smaller producers to benefit from the value chain concept as research has shown the importance of scale. While there is enthusiasm about the concept from producers,

there is also anxiety, particularly over additional costs.

However, Dalziel said, producers are already making significant changes to farming practices because of concerns about the environment, and are incurring those costs.

“It’s always possible to price yourself out of the market but there is also a possibility you are incurring costs in order to have positive environmental impacts that your consumers would value, if only we could tell them about it.”

The research identified nine attributes for successful value chains.

“The most important, what we consider the core, is a commitment to shared values by every part of the chain, whether it’s the retailer, distributor, or suppliers. These values could be environmental factors such as carbon neutrality or social values such as origins

GOOD FOR ALL: Professor Caroline Saunders says the research shows how, through greater collaboration and a commitment to sustainable values, NZ can enjoy greater financial rewards while also enhancing our natural environment.

or whakapapa – the point is that the values are understood and expressed all the way from the growers to the consumers,” Dalziel said.

The research also backs the view of a longstanding campaign by AERU director Professor Caroline Saunders, “that not an ounce of product leaves the country without a premium being attached to it”.

Saunders said the value chain research is an important contribution to NZ’s ongoing journey from “volume to value”.

“New Zealand producers are at the forefront of sustainable practices but have not enjoyed the premium they deserve. This research shows how through greater collaboration and a commitment to sustainable values, as a nation we can enjoy greater financial rewards while also enhancing our natural environment,” she said.

Because producers are connected to their local community, because there is an authentic story embedded in a product, and it is a quality product, consumers are willing to pay a premium for that experience.

Professor Paul Dalziel Lincoln University

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Few southern farmers are ticking IWG box

Neal Wallace NEWS Sheep and beef

AFARMING leader is not surprised that just 70 southern South Island farmers have so far applied for resource consent for intensive winter grazing next year.

Southland Federated Farmers vice-president Bernadette Hunt said feedback from farmers is that they see consent as little more than a bureaucratic box-ticking exercise that adds little value.

That view has support from an unlikely ally in winter-grazing critic Angus Robson, who said resource consent is complicated, time consuming and will not prevent soil erosion.

New government regulations that came into effect on November 1 require farmers wanting to intensively winter graze slopes of 10 degrees or more to get a resource consent in lieu of farm environment plans that the government is yet to finalise.

Applications must be lodged by May 1 next year, but requests have been slow to be lodged.

Just 49 Otago farmers out of an estimated 1000 have so far applied. In Southland 17 out of approximately 2000 have applied,

and just four in Canterbury.

Environment Southland consents manager Bruce Halligan said a GIS desktop exercise –using satellite data from 2017 –identified about 2000 properties containing a slope of 10 degrees or more or that have previously intensively winter grazed paddocks.

Hunt said farmers are repeating previous winter-cropping practices, which Environment Southland has largely praised in recent years. Most of the federation’s

Southland executive will not seek consent for winter grazing next year and Hunt said whether farmers also take that position is up to them.

Robson, who has long been critic of the practice, agrees with Hunt that the consent process is a waste of time and money, but adds that it also enables the cultivation of areas over 15 degrees and critical source areas.

He said Southland supporters have noticed that farmers are cultivating hills over 15 degrees ahead of tighter regulation.

Robson advocates a blanket rule prohibiting bare soil and the cultivation of critical source areas.

These can be identified and monitored through widely available GIS systems used by contractors, landowners and councils.

Southland landowners have three options: complying, requiring resource consent or being granted a deemed permit.

Two farmers have so far applied for deemed permits, potentially available for those who have sloping land between 10-15 degrees but that meet all other permitted activity criteria.

Halligan said until the council knows how many farmers need consent, it won’t finalise its monitoring plans for next winter.

Most applications have been processed promptly and Halligan said the council has contingencies to process additional consents if required.

Otago Regional Council consents manager Joanna Gilroy said the level of demand is about what is expected given the regulation only took effect a month ago and spring is a busy time for farmers.

She does not think farmers are ignoring the requirement.

“We’re encouraging farmers to meet the permitted criteria if they

by midApril 2023 at the latest so

are ready for winter 2023.

Joanna Gilroy Otago Regional Council

can or have their applications in by mid-April 2023 at the latest so they are ready for winter 2023,” she said.

Dirk Brand, Environment Canterbury’s programmes and implementation manager, said given farmers may comply as a permitted activity within current council rules, he does not expect many applications

“Our current regional plans are already designed to improve water quality in Canterbury and require farmers to reduce nitrogen leaching on farm by managing high-risk activities, including winter grazing.”

“As the regulator, we will be focusing on compliance, ensuring farmers have a good plan in place, which is followed come winter,” he said.

Plan aims to speed up Māori agribusiness

Gerald Piddock NEWS Agriculture

ANEW action plan for Māori agribusiness has been released by the government with the aim of supporting the continued growth of Māori food and fibre sector.

Called Rautaki mo te Taurikura –Embracing Change for Prosperity, the plan is the result of 18 months of collaboration between the government and the Māori Primary Sector Forum.

About a third of all Māori businesses are part of the primary sector, Associate Agriculture Minister Meka Whaitiri said at the launch of the plan at Fieldays.

New Zealand’s food and fibre exports are experiencing record highs, up 39% since 2017. Total exports by Māori businesses have grown from $630 million in 2017 to $872m in 2021, with the majority from the food and fibre sector.

“It is estimated that Māori own $13 billion in primary sector assets.

“Māori enterprise accounts for 40% of forestry, 30% of all beef and lamb production and Māori horticulture has grown by an impressive 300% in the last 12 years,” Whaitiri said.

Rautaki mo te Taurikura builds on investments from Budget 2022, including $34m to put extra Māori agribusiness advisors in the regions, and $35m to support Māori-led innovation and

mātauranga-based approaches to reducing on-farm emissions, Whaitiri said.

“This includes the use of workshops, targeted groups, field days and other on-farm activities to share the most up-to-date information on low emissions practices.

“We’ve also invested in projects to help landowners improve their productivity, create training opportunities and jobs, and develop innovative practices and products to grow Māori exports.”

Māori agribusiness known for their environmental leadership, social responsibility, innovation and productivity, Whaitiri said.

Māori landowners face challenges around managing and developing land including complex land ownership and difficulties in accessing capital, and are more at risk from adverse weather events.

“Despite these challenges, Māori agribusiness are leaders in the primary sector time after time,” Whaitiri said.

practices, delivering measurable environmental benefits around improving soil quality and cleaning up waterways,” Whaitiri said.

“Investing in projects like this will ensure our Māori agribusinesses can lift productivity across their land, by providing up-to-date advice to adjust their practices and innovate, so that growth in exports can continue and provide jobs across the sector,” Whaitiri said.

initiatives such as the SFF Futures Fund goes to Māori agribusiness.

“We can do so much better,” Smith said.

The plan will also allow for the better building of services tailored for Māori communities.

economy and emerging

Māori contribute a significant amount to NZ’s economy and there is an emerging class among

As well as the new action plan, the government announced it

will co-invest in a $723,200 project led by Māori farming company ĀtihauWhanganui Incorporation, which operates 42,000ha of whānau farms in the Manawatū-Whanganui region.

“The project will involve an innovative trial embedding mātauranga Māori into farming

The Ministry for Primary Industries’ Sustainable Food and Fibre Futures fund (SFF Futures Fund) will contribute $433,920 to

the project.

The event also marked the first time that Māori agricultural excellence has been recognised at Fieldays, with all three Ahuwhenua Trophies on display.

first time that Māori agricultural at Fieldays, with all three are forging new pathways and showing what success looks like unique identity as Māori.”

“Celebrating Māori farming excellence is not just about recognising successful Māori landowners,” Whaitiri said. “It’s about celebrating those who are forging new pathways and showing what success looks like in the sector while retaining our unique identity as Māori.”

MPI director-general Ray Smith said the plan will allow for a better partnership between government and Māori agribusiness.

better partnership between agribusiness.

It will also accelerate investment.

Only a small percentage of government funding from

“We are not starting from nowhere, but we do realise that we have some distance to go and we have an investment from government that will really help us,” Smith said.

Ngā Pouwhiro Taimatua (Māori Primary Sector Forum) chair Traci Houpapa said the plan is not just another roadmap. It is designed to be nimble and flexible to be able to work in this next stage of the covid-19 environment.

“This plan provides us with the architecture and the framework to make change happen on our land while also participating in the policy framework and levers, and will ensure and enable us to do better by it.”

The Rautaki mo te Taurikura plan will be reviewed in 2024.

TRIED AND TRUE: Bernadette Hunt says farmers are repeating previous winter cropping practices, which Environment Southland has largely praised in recent years.

We’re encouraging farmers to meet the permitted criteria if they can or have their applications in

they

BACKING BUSINESS: Associate Agriculture Minister Meka Whaitiri says Rautaki mo te Taurikura – Embracing Change for Prosperity will enable extra funding and resources to boost Māori productivity and prosperity in the primary sector.

We’ve also invested in projects to help landowners improve their productivity, create training opportunities and jobs, and develop innovative practices and products to grow Māori exports.

Meka Whaitiri Place

Egg supply tightens as hen numbers fall

does not provide adequate welfare for layer hens.

in Australia or the UK.”

NEW ZEALAND’S

commercial hen numbers have plummeted to their lowest in years but the industry watchdog said egg shortages, such as those experienced in some parts of the world, are unlikely.

Egg Producers Federation NZ executive director Michael Brooks said commercial egg farmers have faced a “perfect storm” over the past three years.

Covid has forced some out of the industry, particularly freerange farmers, while others are considering their future because of new, tougher regulations on how poultry can be housed.

By the end of December, cage farming will be banned in the country. Hens can only be farmed in free-range, barn or colony systems.

Ministry for Primary Industries national manager of animal welfare and NAIT compliance Gray Harrison said an independent animal welfare committee considered each housing system for hens and the welfare impacts. When issuing the 2012 Code of Welfare, the committee concluded that the use of conventional cages

Brooks said the changes were agreed to by the federation in 2012, at a time when 84% of NZ’s eggs were produced by caged hens.

That gave farmers 10 years to implement the changes, but Brooks said because of a variety of factors some have yet to make the move and are now facing an uncertain future.

At its peak, NZ had 4.2 million commercial laying hens but that figure has dropped to 3.55 million.

“That’s the lowest level for some time. Egg supply will be tight but nothing like they are experiencing

According to Stats NZ, barnraised eggs increased 7.4% in price in the year to October 2022.

The federation represents about 140 commercial operations. Brooks said during covid about 16 freerange farms closed because there was no market for their eggs.

“You could really only buy eggs at supermarkets. Supply chains for some free-range operations, such as farmers’ markets, closed,” he said.

Since covid, stock feed prices have also risen, while staff shortages remain a constant battle.

Two major supermarket chains have signalled they will stop selling colony eggs from 2025/26, which has left some farmers questioning if is worthwhile converting their caged operations.

“We’ve had situations where farmers are saying ‘Holy hell, what do I do?’”

Brooks remains confident bird numbers will eventually increase but said it is likely to be a slow process.

“Everything has a huge cost. But we are lucky in this country. It is the best place in the world to raise poultry because we don’t have the major diseases that they do in other parts of the world.”

Harrison said egg farmers using

cages from January 1, 2023 will have committed an offence against Regulation 21 of the Animal Welfare (Care and Procedures) Act of 2018.

“MPI is mindful that individual egg producers will have different factors to consider in meeting the transition date. While MPI cannot grant an extension, it does have discretion on how it responds to a breach of the regulation while taking animal welfare responsibilities into consideration,” Harrison said.

MPI has been in regular contact

with operators and visited farms needing to transition by the final date. Where covid has affected an operator’s ability to transition, they have been advised to put a formal case to MPI for consideration.

“No further requests have been received,” he said.

Harrison is aware of the cost involved in moving to colony cages, barns or free-range systems, but said the phased transition gave producers time to make the changes to minimise the impact to their business.

Craig

HOT COMMODITY: Michael Brooks says egg supply will be tight but nothing like shoppers are experiencing in Australia or the United Kingdom.

OPTIMISTIC: Michael Brooks remains confident bird numbers will eventually increase.

Tool for building more resilient not-for-profits

Stringleman NEWS Community

NOT-FOR-PROFIT organisations in the primary sector are being asked to do more for less, with demand up but funding and volunteering down.

At the same time, there is an opportunity for not-forprofits (NFPs) to become highperformance organisations that deliver impact effectively and sustainably, learning from bestpractice organisations.

With funding from AGMARDT, the Agri-Women’s Development Trust (AWDT) commissioned KPMG to undertake qualitative and quantitative research to identify opportunities for NFPs in the primary sector.

The “Not for Profit – An agri sector perspective” report is available on request.

AWDT general manager Lisa Sims said the project was designed so that the findings could be shared with those organisations seeking to continually adapt and maintain their impact in a period of accelerating change.

“AWDT, in conjunction with KPMG, is proud to bring this work to life as a toolkit and framework that can be applied in a practical and informative way,” Sims said.

The report provides an opportunity to review and benchmark performance and apply valuable insights to build longterm resilience.

The insights and tools in the report are due to the collective contribution of a range of organisations committed to delivering ongoing impact, to ensure the success of the food and fibre sector.

“We also look forward to quality conversations and collaborations between entities of all stripes, committed to making a difference,” Sims said.

The first part of the report lists eight key traits of high-performing NFPs and the second part offers ideas for sustainable business model options.

KPGM says the highperformance NFP model has been refined and validated through research into high performance businesses in the commercial and not-for-profit sectors, interviews with agri NFP organisations, and

key government and business stakeholders in the food and fibre sector.

The eight key traits are: pivotal leaders, capable people, a strategic anchor, ambition and attitude, investment and resource allocation, connection and collaboration, funder intimacy, and deployment discipline.

“Without pivotal leaders, the chances of successfully linking the other high-performance attributes are remote at best,” the report says.

Therefore, there has to be a leadership pipeline through proactive succession.

Under the heading “Strategic anchor”, the report says high performance NFPs have a core distinctive and strategic purpose, which is never compromised.

Nevertheless, in the struggle for funding, which is often short term and specific, some NFPs compromise their identity and blur their mission.

Collaboration among organisations in the sector is essential to avoid silos and duplicated wastage.

“Not-for-profits need to realise that they are competing if they are

not collaborating,” the report says. A common theme throughout the research is that NFPs feel “too unique” to invest time in collaboration efforts. This perception hinders the development of better valuecreating collaboration efforts in the sector.

Future resilience and sustainability rely on innovation to ensure an NFP continues to be able to create and deliver value to stakeholders.

Founded on a do-good idea, initiative, or initial pool of funding, many NFPs do well at first.

But then they falter as they begin to compete in a crowded NFP market for the same pool of

KPMG report

funding and struggle to reach new heights.

“Each not-for-profit needs to consider its vision, ambition, value proposition and strategy in determining the appropriate business model that will enable it to be successful,” the report says.

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Hugh

TOOLKIT: Agri-Women’s Development Trust general manager Lisa Sims says the AWDT is proud to bring the report to life as a framework that can be applied in a practical way.

Without pivotal leaders, the chances of successfully linking the other high-performance attributes are remote at best.

Rabobank boosts farm carbon smarts

Richard Rennie NEWS Carbon Farming

ASERIES of carbon-focused seminars run by Rabobank across New Zealand have gained strong interest from farmers tuning in to the opportunities an emerging but complex market can offer them.

Blake Holgate, Rabobank’s head of sustainable business development, said amid the debate and discussion over New Zealand’s zero-carbon direction, a growing number of farmers are now aware there are opportunities to generate a new income stream from the carbon market.

“It is a complex space and there is a real need to be aware of the risks that lie within the opportunities. There has been a sense you have to sell the entire farm and see it go into pine trees to get any benefit from it, but this is certainly not the case,” he said.

Rabobank has teamed up with forest advisory company Forest Management Group to focus on educating groups of 10-12 farmers on the ins and outs of the market and forestry options.

“Our intention is to keep running these for as long as there is interest, which has not dropped off yet,” Holgate said.

The complexity of the carbon market means the smaller groups are more suited to the subject’s forum.

“People are not coming to learn how to sell their farm. It is a market that sees a lot of changes in regulations and standards, making any investment on any scale in need of good advice.”

Dave Janett of Forest Management Group said he has presented at almost 20 seminars to date, and the response from farmers has been overwhelmingly positive.

“People are interested in carbon and forestry and want to know the facts behind it. We cover all aspects including native forest sequestration, ETS [the Emissions Trading Scheme] and how it works, land eligibility, and include some examples of how averaging carbon flows and cashflows works.

“We are not trying to talk people into planting trees, it is just showing what you can do and consider for your particular farm business and plans, including succession, providing the knowledge to help them make those decisions.”

The advice comes as Rabobank responds to climate change initiatives being driven by both societal expectations and demands from the European Central Bank. It is increasingly requiring European Union-based banks to address issues of sustainability and climate change exposure.

KNOWLEDGE: Rabobank’s head of business sustainability, Blake Holgate, says carbon farming and forestry o er farmers some good opportunities, but it is vital to be making well-informed decisions in what is an emerging and complex market.

Banks are required to run climate risk maps to highlight areas of greatest climate change exposure within their lending portfolios.

In addition, most European banks, including Rabobank, have committed to reaching net carbon zero for their Scope 3 emissions by 2050. This requires any nonbank-owned parties to also meet the banks’ goals of net carbon zero.

Regulators are also more focused on climate risk in banks’ portfolios, conscious of the need to avoid those financers ending up with stranded assets that are not protected by sufficient capital backing.

Ultimately in coming years there is a growing expectation that climate change risk will be factored into banks’ lending decisions, with a proportionately higher cost of capital charged for those at greater risk. The inability of a business to provide carbon emission data could ultimately result in an inability to lend on that business’s venture.

Holgate said there is a high level of discourse around NZ’s moves to a zerocarbon food system, though it is important not to lose sight of the bigger picture.

“But it is still okay not to have concrete clarity on how the policies play out, that it is quite likely to evolve over time.

“The reporting requirements for all parties are still evolving and we are very much still at the awareness stage.

“Our job is to try helping clients understand their businesses better, and where best to invest to make the farm business more resilient, and therefore more capable of adapting going into the future.”

FACT FINDING: Dave Janett of Forest Management Group says people are interested in carbon and forestry and want to know the facts behind it.

Rural households to get broadband boost

Gerald Piddock TECHNOLOGY Communication

ABOUT 30,000 households and businesses in rural communities will be receiving better broadband connections after new contracts were signed between the government and Crown Infrastructure partners.

These contracts will accelerate upgrades to towers and broadband connections in areas with poor coverage, Rural Communities Minister Damien O’Connor and Minister for the Digital Economy and Communications Dr David Clark said at Fieldays.

“This round of the rural capacity upgrade will see many existing towers upgraded and new connections established in rural areas experiencing poor performance,” Clark said.

Areas that will benefit include settlements in the Far North, Gisborne, Manawatū-Whanganui region, Taranaki, Southland and Waikato.

“However, the programme is by no means limited to these areas,” he said.

“This will significantly improve current homes and businesses and boost economic productivity of

those with a slow unreliable and sometimes unusable connection.”

Better connectivity adds real value because it allows the rural sector to better tell its story as well as improving services for rural health, he said.

“When I look at Federated Farmers surveys, connectivity is right up there for the blokes and it’s always number one for women,” Clark said.

“We need to rural-proof our connectivity and make sure that our leading export sector is well provided for when it comes to connectivity and selling our products to the world.”

He said he expects the contracts to be rolled out over the next few years.

The announcement coincided with the release of the government’s new strategy document, “Lifting connectivity in Aotearoa”, which sets out a highlevel connectivity vision for New Zealand over the next decade.

This includes the goal that all New Zealanders have access to high-speed connectivity networks by 2032 and that NZ is in the top 20% of nations in respect to international connectivity measures.

“With more and more businesses online, more people working from home, and access to many health

services, the opportunity for greater economic growth is there and should be embraced – but we need to make sure they’re there for everybody,” Clark said.

“As government supports farmers to grow our exports, reduce emissions and maintain our international competitive edge into the future, making sure farms are hooked up with reliable connectivity is crucial.

“We’ve always been worldleading when it comes to farming innovation. It was a New Zealander that invented the electric fence, and Kiwis are leading the charge on what comes next. As digital technologies continue to evolve, we need to ensure, our farmers and

their farming practices are well supported to evolve alongside it,” Clark said.

Federated Farmers board member Richard McIntyre called the 2023 goal ambitious but admirable.

“While it’s going to take a lot more investment on top of the money already announced, we applaud the commitments made to longer-term rural connectivity solutions,” he said.

The document also won the support of Tech Users Association of NZ chief executive Craig Young.

The past two years of pandemic disruptions have highlighted the importance of high-quality connectivity when it comes to how

we work, learn, do business and socialise remotely, he said.

“We’ve been proposing a 10-year plan for some time now, so it’s great to see this is now in place with some clear objectives and principles on how the government aims to meet these.”

Young said the document’s statement of intent sets out some good ambitions and “we’ll make sure we hold the government and industry to account”.

O’Connor said it will also help relieve some of the pressure farmers are facing.

“Some people are feeling isolated, they should never feel isolated. Some of it is geographical isolation but with technology now, people should be able to connect with someone to share some of the stress and to move on,” he said.

The investment sits alongside Land Information NZ’s roll-out of the Southern Positioning Augmentation Network (SouthPAN) service, which will greatly improve the availability and accuracy of positioning, taking it from 5-10m to as little as 10cm across the country.

O’Connor said this will boost rural productivity through precision agriculture and horticulture and fenceless farming, and improve the safety of search rescue in the back country.

CONNECTED: This latest connectivity upgrade from the government should benefit about 30,000 rural households.

NZ on track to stand for ‘net zero’ too

climate sustainability in all their companies do,” Hewett said.

Emissions

NEW Zealand agriculture has a good story to tell on reducing carbon emissions and consumers are resonating with the story, Silver Fern Farms chair Rob Hewett says.

“We have one of the best chances as a food-producing nation to become net zero,” he said.

“And if we don’t get this right, farms like mine are going to be planted in trees.”

Chapter Zero NZ, a division of the Institute of Directors, hosted a webinar associated with COP27 and the first-ever inclusion of a day on focused on farming, food, and agriculture’s role in the climate crisis.

Unprecedented attention was focused on how to achieve a just transition that supports farmers as they reduce their emissions and transition to more sustainable practices.

Hewett and Fonterra independent director Scott St John presented to the webinar –appropriate considering half of New Zealand’s emissions come from the agriculture sector.

“As farmers are facing extraordinary compliance issues, their farmer-directors are also facing one of the biggest challenges in governance in their lifetimes, incorporating

The NZ stories included the low-profile nature of the country’s grass-fed livestock, its high proportion of renewable electricity generation and relatively low reliance on coal for energy.

“Supply chains in other countries would find it relatively easy to cut coal use compared with our challenges to reduce biogenic methane, for example,” he said.

Although it won’t be easy, NZ farms also have the chance to be carbon-negative with sequestration, aspiring to go beyond net-zero.

Considering the uptake of SFF farmers in emissions reduction, Hewett said there is a bell curve of adoption, with both early and late.

“We have just concluded a series of supplier roadshows and there is a lot of interest in our consumerled programmes.

“Net-zero beef and lamb are in that portfolio and while they are still small in tonnages, they are getting a lot of airplay.

“All of this reflects back to farmers, what consumers are asking for offshore and if we can deliver, we remain relevant and able to extract value out of them.

“And if we don’t do that, how do we position ourselves to remain competitive?”

SFF is reducing its own emissions footprint by reducing travel, cutting out plastic, making inbound livestock transport more efficient and phasing out

70% of coal use by 2027.

But Hewett pointed out that more than 90% of the carbon footprint of meat is located on farm.

“There is a lot to be addressed inside the farm gate – we will not be reducing head count as solutions will come along.”

Hewett said that 8000ha of farms around him in South Otago are going into trees as landowners see carbon farming as a succession tool.

“This is an existential threat to sheep and beef farming, to Silver Fern Farms and to our rural communities.

“If we do nothing, we will not survive.”

St John said Fonterra will meet its target of 30% emissions reduction in manufacturing operations in 2030.

Every Fonterra supply farm will have a farm environment plan and that target is already 70% along the way.

As one of the lowest carbon suppliers in dairy nutrition, NZ must be recognised as a global leader and grow partnerships and innovation.

He said Fonterra’s research and development effort will come up with practical and affordable mitigation tools for farmers.

Fonterra is contemplating a target for scope 3 emissions across the whole milk and dairy products supply chain, including farms.

“We are at the right end of the spectrum of carbon emissions in farming around the world, but we can’t just lean back on that.

“Our customers want both absolute and relative improvement in our standing.

“It is important to acknowledge our good position, but we can’t stand still.”

St John is the current chair of Fisher and Paykel Healthcare, a director of ANZ Bank New Zealand and Mercury Energy. Hewett is also chair of Farmlands Co-operative.

Better beef pilot selects its first farmer intake

components of the programme are:

• Developing NZ-specific breeding indexes;

THE first commercial beef farmers have been selected for a new industry programme aimed at boosting the sector’s profits by $460 million over the next 25 years.

The ground-breaking Informing New Zealand Beef (INZB) programme is a seven-year partnership supported by Beef and Lamb New Zealand and the Ministry for Primary Industries’ Sustainable Food and Fibre Futures fund.

Focused on the increasing uptake of high-quality genetics in the beef industry, the four main

• Building an across-breed genetic evaluation and data infrastructure;

• Running a beef progeny test; and

• Linking in data from commercial herds.

The 10 commercial farmers selected for the pilot programme will provide accurate pedigree recording, assess bull teams’ performances, ensure accurate information for heifer replacement selection and work with their bull breeders to make more rapid genetic progress.

Farmers will also be able to benchmark their herd against others involved in the programme.

“We’re on a mission to give breeders and farmers genetic tools to help produce great-tasting beef and drive production efficiency,” INZB programme spokesperson Gemma Jenkins said.

“We want commercial farmers to understand the value of

better genetics and be able to easily select the right genetics for their system to drive greater profitability.”

sector with his father’s Kendhardt Angus stud in Nūhaka, Hawke’s Bay, breeding Angus cattle for more than 50 years.

He and his wife Isabelle now farm at Patoka and have a commercial breeding cow herd and

finish lamb and cattle.

“This is an opportunity to be able to change the beef industry for the better and make it a more competitive land use so I am very happy to help on that journey,” Crawshaw said.

“As a farmer, I welcome the openness of the project and the ability to get a big volume of information and data into analysis to be able to validate and challenge what we believe is efficiency.

“I want to play my part in challenging and stimulating the beef industry, and create gains for the sector.”

Crawshaw is particularly excited about the opportunities to link the genetic situation to production outcomes and to increase the reproduction rate-calving percentage of breeding cows.

MORE:

Any commercial beef farmer interested in joining the programme can register an expression of interest by December 30, 2022 at: ww.blnzgenetics.com/ informing-nz-beef/opportunities-forfarmers

Hawke's Bay farmer Patrick Crawshaw is among those selected. Crawshaw grew up in the beef

Annette Scott NEWS Genetics

WELCOME CHANGE: Hawke's Bay farmer Patrick Crawshaw says the ground-breaking programme is an opportunity to change the beef industry and make it more competitive in land use terms.

We want commercial farmers to understand the value of better genetics to drive greater profitability.

Gemma Jenkins

Hugh Stringleman NEWS

WOOD FOR THE TREES: Rob Hewett said 8000ha of farms around him in South Otago are going into trees as landowners see carbon farming as a succession tool.

ADAPT OR DIE: Silver Fern Farms chair Rob Hewett says New Zealand has one of the best chances as a food-producing nation to become net zero – ‘and if we don’t get this right, farms like mine are going to be planted in trees’.

MITIGATION: Fonterra independent director Scott St John says the co-operative’s research and development centre will help farmers improve their carbon emissions.

Let’s do right by farmers, and our planet

As an owner of six sheep and beef farms in the South Island, I have a team actively working on methane mitigation.

Right now, I am worried we are all missing the opportunity to truly do something about methane, and will hurt our primary sector in the process.

Here are the facts:

1. Methane is 28 to 84 times more warming than CO2, depending on how you measure it.

2. If our methane emissions decrease, the earth’s warming will slow down much, much faster than if our CO2 emissions decreased at the same rate

3. Keeping methane emissions the same, has little impact on the planet’s current temperature. This is because methane converts to water and (lower impact) CO2 after 12 years. It is like running a bath with no plug – the water level will stay the same as long as you do not turn the tap up.

4. Dairy, sheep and beef are a major source of methane emissions. Increasing animal emissions, is a problem. Decreasing animal emissions, is fantastic. But, keeping animal emissions the same, adds almost no extra warming to our planet.

5. Farming is important. Dairy, sheep and beef farming contributes $35B of export revenue to New Zealand’s economy each year. It directly employs 85,000 people, and indirectly, many more. Our produce feeds 40 million people around the world. We do it cleaner than most.

6. Farming is also hard. For sheep and beef, it is a low return on asset investment, high risk, and physically demanding. Farmers simply cannot absorb another cost, and the technology to reduce methane emissions significantly, is not yet available.

7. Planting carbon pine forests, offering little environmental benefit for around 5 years, already provides a better return than sheep and beef farming and we are already seeing vast tracts of productive land being lost to forestry, at significant cost to our economy, rural communities and landscapes.

So what?

1. The Government’s split gas approach allows methane to be treated differently from CO2. This is to be applauded.

2. However, in my view, the Government’s recent proposal on how to deal with agricultural emissions:

• Is too expensive to be absorbed by many, many farmers;

• Does not incentivise real investment, either by farmers or entrepreneurs, in technologies that will change the game.

3. Any change to methane emissions from animals on-farm should be recognised for the scale of impact it has, so:

• Any increase in methane is a big cost to the environment, so should be a big cost to the farmer;

• Any decrease in methane is a big benefit to the environment, so should be a big benefit to the farmer;

• The status quo, for now, should be cost neutral, to protect our farms while technology catches up

4. Big costs change behaviour and big benefits drive investment. We need both: an instant cap on new emissions, and for farmers and investors to throw money at reducing emissions.

Solving the methane issue in our own backyard will give us international credibility to speak up to nations whose emissions determine the future of humankind. Methane must not increase. Reductions must be sought. But taxing the status quo today, risks the viability of many farms in New Zealand. We are smarter than this.

Tom Sturgess

www.methanemitigation.earth

Milestone for medicinal cannabis company

Staff reporter NEWS Horticulture

MEDICINAL cannabis processor

Helius Therapeutics has received Good Agricultural and Collection Practice certification at its purpose-built medicinal cannabis facility in East Tamaki, Auckland.

Recognised globally, GACP is a leading certification standard for medicinal cannabis. It outlines minimum requirements for growers in creating a high-quality, consistent flower.

“Achieving GACP is another key milestone

for the Helius team in our journey to full site certification. GACP is a well-recognised requirement for medicinal cannabis in many countries. Gaining this certification will only open more doors as we now unleash our export strategy,” chief executive Carmen Doran said.

“This certification reinforces that Helius is a medicines company first and foremost,” she said.

In September Helius became the first NZ medicinal cannabis company to gain approval for products derived from locally grown cannabis plants, with the full spectrum CBD medicines also locally extracted and manufactured.

This followed Helius gaining verification of its active ingredient meeting the quality standard in late August.

In NZ every doctor can now prescribe medicinal cannabis for any health condition.

According to Minister of Health Andrew Little, 17,363 packs of medicinal cannabis meeting minimum quality standards were supplied within NZ between 1 July 2022 and 30 September 2022.

Priority export markets for Helius are Europe and South America, with the private, 100% NZ-owned company continuing to secure investment to accelerate its domestic and international growth plans.

Manuka Bioscience launches $5m capital raise

Looking after kiwi farms for generations.

We’re excited to introduce a new sustainability initiative in collaboration with Agrecovery aiming to help reduce plastic waste on New Zealand farms. Let’s continue looking after our farms so our children and grandchildren can do the same.

You can drop empty MSD Vaccine Vaxipacks ® in collection bins at participating vet clinics and rural retailers. We’ll take care of the rest, ensuring the plastic is repurposed and doesn’t end up in landfill.

To find out more talk to your local vet clinic or rural retailer or visit: www.sheepvax.co.nz/recycling

Recycle MSD Vaxipacks® from the following products:

ACVM No’s A934, A11311, A3977, A1009, A1992, A9028. AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No’s: A4769, A9535, A7886, A9927, A1948, A6151 Schering-Plough Animal Health Ltd. Ph: 0800 800 543. www.msd-animal-health.co.nz © 2022 Merck & Co., Inc., Rahway, NJ, USA and its affiliates. All rights reserved. NZ-YER-220700001

A COMPANY in the East Cape is hoping to raise $5 million to fund the research and development of its mānuka oil products.

Manuka Bioscience has launched a public capital-raise of up to $5m, with private equity firm Snowball Effect to fund growth across the company’s multiple revenue streams.

Co-founder Stuart Cairns said Manuka Bioscience started out in 2016 producing honey, before realising that with mānuka oil it had room to “scale up” globally.

“It checked all these boxes and there was a big opportunity for it to grow,” he said.

Its website says mānuka oil is a therapeutic and cosmetic ingredient that is 1000 times more effective than mānuka honey and 20-30 times more effective than tea tree oil against gram-positive bacteria.

Cairns said the company looked at the tea tree oil market to see where the mānuka oil market soon could be.

“Tea tree oil has grown from an industry in the late 1970s where they produced about 10t a year to start with, to now producing 1000t a year,” he said.

The company produces 10t of mānuka oil a year and Cairns is hoping it has the potential to follow tea tree oil’s example.

The company makes and markets ManukaRx and 3k+ skincare products and sells pure mānuka oil from its wholly-owned subsidiary Manuka Biologicals.

It also has a pipeline of botanical medicines undergoing clinical and consumer studies.

Mānuka oil’s potency comes from naturally occurring bioactive compounds called β-triketones, which global scientific research has shown to have a medicinal effect in treating skin and wound infections, while reducing the growth of antimicrobial resistance.

“We’d like to do a lot more research on it as an antiviral, as there’s a particularly big market,” Cairns said.

The company is now spending between $750,000 and $1m a year on research.

Cairns said it wants to raise at least $3m, to help reach its revenue targets.

Cairns said Manuka Bioscience has two clinical trials in the works around mānuka oil and the treatment of eczema, which will be finished in March.

DOPE NEWS: Helius Therapeutics CEO Carmen Doran says GACP certification will open more doors as the company addresses its export strategy.

BusinessDesk NEWS Research and Development

Growing careers from corporate to community

Annette Scott PEOPLE Agriculture

BRINGING young people into the agri sector is key to keeping the Growing Future Farmers proposition alive and well, new chief executive Wendy Paul says.

Transitioning from her senior role as director for culture and wellbeing at Fonterra, Paul has been appointed to lead the GFF programme into its next phase of growth.

In one sense, Paul’s move from a corporation such as Fonterra to a community-focused organisation represents a significant shift.

In a deeper sense, she said, leading the GFF programme is the fulfilment of her passion for the sector as the attraction of the role was the chance to directly impact the industry at a point of strategic need.

“I’ve had 18 great years with Fonterra and have worked across the entire agri sector value chain,” Paul said.

“During that time, I’ve talked with many farming families around kitchen tables, and I’ve

heard what matters to them.

“One thing has stayed with me: they are worried that the next generation of family don’t want to continue the tradition of farming.

“I saw more than a few tears over that potential break,” she said.

“That’s why I went for this role at GFF. GFF is providing career pathways for succession and intergenerational stability in our farming communities. I want to help them do it.”

A solid foundation of progress already exists within GFF. From the initial 2020 pilot programme involving 10 students, the 2022

intake stands at 60, and in 2023, 80 students are expected to take up placements on 80 farms in 10 regions across New Zealand.

Further growth is needed and the GFF board said it believes Paul has the experience and credibility to take the programme through its next phase.

“Wendy has the team-building skills to lead our 10 regionally based liaison managers,” GFF board chair Brad Tatere said.

“From her corporate experience she knows how to maintain relationships with key stakeholders and with GFF there are quite a few students, farmers and farm managers, government departments and industry-based programme funders.

“A lot of people have to be on the same page for GFF to continue its growth and success. Wendy is the person to help them share the same purpose and work together.”

For Paul, the next phase of progression has several clear markers. To date, GFF has developed career pathways in sheep and beef, but an appetite for succession planning exists across other sectors.

She is aware that the work of GFF

has caught the attention of several industries.

“Succession planning is a problem across many sectors and dairy, horticulture and viticulture are saying please bring your student development programme over here.

“My role will be to help GFF upscale to meet these wider needs.”

With her experience in a company the size of Fonterra, Paul knows the importance of scalability for expanding the reach of a vision.

She also knows that the operational model of the organisation is key to sustaining rapid growth.

“GFF operates with a very good regional model and there is such authenticity with this approach. We need to consider how we’ll keep our person-to-person connections while operating in a way that makes expansion sustainable,” she said.

“I’ve been involved with challenges like this before, so I believe I can lead GFF through this growth phase.”

During her 18 years in the agri sector, Paul has worked offshore with consumers and is adamant that NZ farming offers the world a unique value proposition in grassfed, sustainable farming from a country that really does care about the land and the animals.

Dollar for dollar.

VISION: Growing Future Farmers’ new chief executive, Wendy Paul, is passionate about career pathways for succession and intergenerational stability in farming communities.

I’ve talked with many farming families around kitchen tables ... they are worried that the next generation of family don’t want to continue the tradition of farming. I saw more than a few tears over that potential break.

Wendy

Paul Growing Future Farmers

Educational resources for schools & students

Read, listen to and watch what is happening in New Zealand agriculture by scanning the QR codes or following the links. Answer the questions to complete the exercises.

In the news Watch this

How does regenerative agriculture help enhance soil health?

Adam Cullen is a Northland dairy farmer trying a different approach to his dairy farming systems that allows better holistic results both on farm and for him personally.

https://bit.ly/AdamCullen

Have a go: 1. What is an ecosystem? 2. How many cows are milked on their farm?

Stretch yourself: 3. Adam talks about the rhizosphere, what is this? 4. Do some research, why is the rhizosphere important? 5. Adam and his family farm in Kaipara, Northland. What is the climate and topography of land in this area? 6. What is direct drilling? Why are the Cullens wanting to do less cultivation? 7. Conventional inputs are still being used on their farm but to a lesser extent. What do you think these conventional inputs are? 8. What has the change of focus done for Adam personally?

Analyse this

What drops first, the chicken or the egg?

New Zealand’s commercial hen numbers have plummeted to their lowest level in years.

https://bit.ly/EggSupply

Have a go: 1. What drivers have caused hen numbers to drop? 2. When is cage farming being banned in NZ? 3. How many commercial laying hens did NZ have in its peak? 4. Do you know where the eggs you eat come from?

Feedback

Merry Christmas to our Ag&Ed family. We hope you’re enjoying the new layout of Ag&Ed where we turn industry content into useful learning modules, helping students build an understanding of our primary sector.

We’re taking a break over the summer and plan to be back at the start of the new school term in February.

Have a great summer, and please keep sending us your feedback and ideas to aganded@ agrihq.co.nz. Ag&Ed is an industry-good initiative from AgriHQ and our partners.

Which are worth the most?

This table shows a small selection of data from the Taranaki dairy-beef weaner fair.

Have a go:

1. Which line in the table made the most money per head?

2. Which line made the lowest value per head?

Stretch yourself:

3. How much did each of the above lines make per kilogram?

4. Why do you think the top earning calves made the most money? Compare with the lowest earning lines.

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Listen to this

Did you know?

What’s going on in the regions?

Weather has an impact on farm performance all around the country.

https://bit.ly/FarmingConditions

Have a go: 1. Many regions have had flooding during the heavy rain recently. What issues does late spring/early summer flooding bring? 2. What are some positives about late spring/early summer rainfall? 3. What has been going on in your area? 4. What is powdery mildew?

How important are the facts?

NZ sheep and beef farmers are producing more than ever before while reducing their impact on the environment.

https://bit.ly/MakingMeatBetter

Have a go: 1. Choose three bite sized facts on the page that best illustrate the statement above

Stretch yourself:

2. Do you think that the five most important bite size facts chosen by someone farming would be different to someone living in a city, and why?

3. Do you think that the five most important bite size facts chosen by someone much older, like a grandparent would be different to those chosen by someone your age, and why?

How do you become a Dairy Operations Manager?

An Operation Manager ensures all parts of the business run efficiently and are often responsible for a number of farms.

https://bit.ly/GoDairyFarmingRoles

Have a go:

1. What is the career pathway to become an Operations Manager? 2. What is the main difference between a Farm Manager and an Operations Manager?

3. How many years of experience do you expect you would need to become an Operations Manager from where you are now?

TO

The market is speaking

Bryan Gibson Managing editor

SHOW me the money.

It’s a phrase farmers have been repeating for several years as they wait for the promised green premium that they’re told will come from improvements in environmental performance.

But the rewards have been patchy, with certain niche programmes bringing good returns while the lion’s share of our food exports rise and fall with the commodity cycle.

Now, though, a research project has found that green premium is here and it is significant.

Lincoln University and the Our Land and Water National Science Challenge say farmers are seeing value for that work on sustainability and in some cases it’s as much as 100% greater than the non-sustainable equivalent.

Some of the success stories are well known. Beef + Lamb NZ’s Taste Pure Nature campaign is likely to return a 20% premium in the United States market, adding $238 million in export returns.

Ngāi Tahu lifted the value of Pounamu 40-100% by ensuring its value chain reflects its history and culture.

And it’s worth remembering that even the commodity products produced in NZ return more value than similar products produced overseas.

In 2018 Fonterra was getting between $100 and $400 a tonne more than competitors for its milk powder.

That means the great work farmers have been doing is being rewarded. And, as the big co-operative moves more milk into higher value products, those gains should continue to improve.

At its recent annual meeting, Fonterra’s leaders pointed out that 73% of global consumers listed sustainability as a key consideration in their buying choices.

We’re already in pole position in the race to meet those expectations, but we must all remember that having a head start is only an advantage if you actually win the race. That race has only just begun.

Much of this year’s discussion has focused on regulations that many see as inhibiting farmers’ ability to

remain profitable in this challenging environment.

Getting the setting right so the rules will get the desired result, while still keeping the economy ticking over, is vital.

But we’re now seeing processors and exporters ramping up their expectations.

Fonterra has signalled it will tackle Scope 3 emissions soon – that’s the onfarm wedge of its emissions profile.

The market is speaking and the co-op is listening. Farmers need to listen as well and make sure their businesses are tuned up so they can hit the right note for consumers.

The road ahead will be a challenge, but working the land has always been that way. While consumer preferences are evolving and governments and processors are moving to match those preferences, it’s worth remembering that there are tailwinds as well.

Recent trade deals mean our access to some key, high-value markets has been made easier.

Covid-19 did so much damage to the world, but it also made many people realise that healthy food is not just a nice-to-have, but a vital investment in their future.

And here at home, the grass is growing and that gives farmers options as summer progresses.

Letters of the week Optimism for farmers

Stephen Averill Kereru, Hastings

THE meat companies are spreading their annual doom-and-gloom price predictions at the start of the main processing season. This is not a conspiracy theory, it’s just how business works. The purchase price the meat companies pay the farmers for their livestock will have a major bearing on their profitability.

So let’s look at the facts with New Zealand beef and lamb.

Britain is only 50% self-sufficient in food production. Without importing food from counties like NZ, it will go hungry. Bird flu throughout Britain and Europe is having a dramatic effect on their poultry industry. The British will not have enough Christmas turkey this year. NZ lamb instead, perhaps.

Grain prices have skyrocketed, affecting poultry and pork production throughout the world.

Shipping, though constrained, has dropped in price by 40% since the peak.

The United States beef herd has dropped by 25% over the past three years. Our exchange rate with the US is considerably lower than in previous years.

Sheep and beef farmers in NZ have every reason to be optimistic despite the doom and gloom.

Fuel from trees

WHY should Fonterra choose biofuels from wood chip?

• Wood and trees are excellent carbon dioxide scrubbers of our atmosphere.

• Trees use solar energy to turn C02 pollution into ready-to-burn CH4 methane gas.

• Trees deposit and bank 25% of the carbon they capture into our New Zealand soils.

• Trees prevent soil erosion.

• Trees provide oxygen for us to breathe on our planet.

• Trees provide useful timber for building and construction. This locks up more carbon for hundreds of years.

• Trees are home grown, so supply is guaranteed and assured.

• As all transport converts to electric vehicles, using trees avoids overloading the already strained electricity grid.

• Biofuel wood chips from trees are clean burning, efficient and have low minimal organic waste.

• NZ is ideally placed for growing pine trees and has a competitive advantage in doing so.

• Many Fonterra farmer/supplier/shareholders have forestry investments or trees growing on their farms and their dairy support and grazing blocks. So as a co-operative you are further benefiting your farmer supplier by buying their wood chip production. Clean green solar-generated bioenergy – you can’t get better than that!

Send your letter to the Editor at Farmers Weekly P.0. Box 529, Feilding or email us at farmers.weekly@agrihq.co.nz

From the Editor

Dave Stanton Geraldine

Thrown to the lions of global competition

Neil Sanderson Veterinarian and pedigree Angus breeder, Otago

IN HIS recently published book The World in 2050: How to Think About the Future, author Hamish McRae offers the following opinion: “Most democracies are not very well managed. Or to put this disagreeable point another way, the levels of competence across the countries of the developed world vary widely both in the skill with which they formulate policies and the efficiency with which they carry them out. There are a few examples of excellence but a long tail of mediocrity.”

In many ways McRae’s comments could well apply to the New Zealand Government’s policies and handling of the agricultural emissions saga.

It was extremely disappointing to read the recently published paper relating to the carbon footprint of New Zealand sheep and cattle that was commissioned and funded by several organisations including Beef + Lamb NZ (BLNZ) and the Meat Industry Association.

The paper was prepared and released to the government in May 2021 by research scientists at AgResearch, which is the government’s own research & development institution. However, the paper was not made available to the public until recently –nearly 18 months after its initial interim release.

The question must be asked of BLNZ as to why this information, which is so critical to the development and finalisation of the emissions policy, was not released 18 months ago in its preliminary form, because it essentially mirrors what farming groups have been saying for several years in respect to issues such as CO2 sequestration and GWP* metrics.

In the meantime we have

been put through the wringer of He Waka Eke Noa and many submission processes, which have eventually been effectively trashed by the government.

It is unbelievable that the government has chosen to ignore its own researchers.

Putting things into perspective is not something this government is keen on when it comes to agriculture emissions from our sheep and beef animals in NZ. Instead we will be thrown to the lions of international competition (though we may or may not become martyrs).

China is becoming our biggest trading partner and is likely to become the world’s largest economy, maybe by the end of this decade. China is the world’s number one greenhouse gas emitter, producing about 12 billion tonnes of CO2 equivalents per year – or 32% of total emissions on the planet. New Zealand produces about 34 million tonnes per year, or about 0.09% of total global emissions. About half of this comes from the ruminant animals on our farms, so in perspective this is not even one hundredth of 1% of global CO2 .Yes, both these countries produce similar amounts per head of population.

parts of the world and with some of our export competitors.

We have heard Minister of Agriculture Damien O’Connor repeatedly justify the government’s stance on agriculture emissions and NZ’s dependence on and need to pacify the European markets for our red meat exports. However, what they miss is what is going on in other

Uruguay exports large amounts of beef to the European Union. There are now several very large beef-breeding estancias that have recently become carbon neutral in respect of the beef being produced on those farms. One of these farms that I have a close association with is approximately 20,000ha and carries about 12,000 beef breeding cows on a mixture of native grasslands and developed pasture and some eucalypt plantation. This farm, along with others, has been certified by a European certification agency to be producing carbon neutral beef to the international standard ISO 14064.

A certification according to ISO 14064 Part 1 and 2 allows companies to verify their GHG emissions and improve their GHG inventory at an organisational or project level.

This property even has a group of cows derived from New Zealand genetics, which were exported a number of years ago. The critical issue here is that, under this ISO accreditation related specifically to GHG emissions from ruminants, the pasture sequestration has been recognised, accepted by the certification institution and accepted by the EU.

Author McRae, in the closing chapter of his fascinating book on the outlook for 2050, specifically shares his opinions on Australia and NZ and it is worth noting these as a benchmark to reflect on.

“Whatever happens over the next 30 years, Australia and New Zealand will be fine. If one of the big ideas of this book is right, this will be a strong period for the anglosphere, then whatever they do will be pulled along. They will be junior members of a premier elite club.

They have a fascinating hand

of cards to play, perhaps the most interesting of any two countries in the world. Will they play them skilfully?”

Yes, we must all do our part but at what cost? McRae’s call is that the world is our oyster and it is our call to stuff it up or not.

farmers.weekly@agrihq.co.nz

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Sam Whitelock Farmstrong Ambassador

When life gets busy remember to eat well and stay hydrated. Under the pump?

In my view ...

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EXPORT COMPETITORS: Pasture sequestration has been recognised for purposes of international carbonneutral certification of farms in Uruguay, a country that exports a lot of beef to the European Union, says the writer, who bemoans a lack of local awareness of what is going on in other parts of the world.

Putting things into perspective is not something this government is keen on when it comes to agriculture emissions from our sheep and beef animals in NZ.

We all need a tonic to chase a tough year

Alternative view

Last year was difficult, starting with covid. I’m not going to criticise the government as any government will do what they think is best at the time. I strongly believe our government did just that. Inevitably they’re going to make mistakes but having looked at other countries’ handling of the pandemic, I’m pleased to have suffered covid here in New Zealand.

With that in mind, I see no point in having a Royal Commission investigating our reaction to covid.

Covid was followed by the Russian invasion of Ukraine, with much being made of the energy crisis that the conflict caused.

breeding programmes have gained efficiencies of about 1% a year for more than 30 years. Lower methane sheep are also a reality, and we’re investing $17 million in research aimed at reducing the environmental footprint of our beef cattle.

We could reduce GHGs tomorrow if the government would allow us to use GE-modified grass.

Politically, the year has been shambolic, starting with Three Waters. I agree with the government that there is a problem. Where I disagree is on the consultative process and the remedy.

AS THIS is my last column for the year, can I start by wishing you all the very best for the festive season and trust you have a happy and prosperous 2023.

Thank you for all your emails. It’s always good to hear from you no matter what your point of view. Life would be incredibly boring if everyone agreed.

The past year has been difficult for those of us in the provinces, with next year having the potential to be far worse. In election years political parties and politicians go out to appeal to the masses and that doesn’t include we income producers in the provinces.

It will be interesting to see what prevails and I’ll report it as I see it.

My view is that the energy crisis is bad enough but will pale into insignificance when compared with the food crisis that’s about to occur.

Ukraine is a huge exporter of food, mainly grains, and that’s obviously not currently happening.

World food production is already down by at least 10% and that’s a crisis. The last thing anyone needs is restriction on food production, especially in a country as efficient as we are.

I’ve become increasingly irritated over the years by the ignorant pointing their finger at NZ agriculture for its greenhouse gas (GHG) emissions.

I remain unconvinced that we are accurately and scientifically considering methane and its effects.

In addition, our dairy cow

Foisting those advertisements on us was, I’d suggest, arrogant in the extreme, as was limiting the four new entities to tribal boundaries.

To then introduce a supplementary order paper to the Water Services Entities Bill to require a 60% vote to change the legislation is an abuse of democracy. To suggest it was to preserve public ownership is absolute rubbish. If public ownership was so important then leave the entities as they currently exist. It was a cynical abuse of power purely aimed at protecting those running Three Waters from a future government repealing the bad legislation.

If I was prime minister I’d fire Nania Mahuta, Minister for Local Government and Associate Minister for Māori Development, for incompetence and abuse of power.

As I’ve written, I believe the proposed Resource Management Act (RMA) reforms are a total crock and I wait with bated breath what’s going to happen over the taxing of animal GHG emissions.

In addition, I remain unconvinced on co-governance as it is a massive sword of Damocles that seems to be able to appear out of the blue and with a distinct lack of any consultation.

On the positive side I support the negotiated free trade agreement with the United Kingdom. While not ideal for everyone, overall it is positive.

The money allocated to agricultural research is also most welcome. I’m looking forward to seeing progress in the project investigating regenerative agriculture.

The recently announced government fund for rural connectivity is great and will fix a lot of the inequities the provinces currently suffer.

Politically, I believe we do have

This old dog has seen it all before

From the ridge

IWAS snoozing away in the kennel when the boss came and banged on the roof and said his editor had just got in touch to say it was the last column of the year and seen as I’d done it for the past few years, I’d better get on with it.

The boss thrust a half-chewed pencil and a couple of bits of paper at me, wished me good luck and stomped off back to the house.

In case you don’t know me, I’m Ditch, the dog he found as a young pup after I’d been dumped in the water table on the roadside. I was

so small I fitted in his hand.

Even he thought Watertable would be a silly name.

It was speculated for a while that I might be a rottweiler, but I turned out to be a large hairy sheepdog.

He tells me I’m not the best dog he’s ever had but I’m not the worst either.

Just as well for him because for the past few years it’s been just the two of us running the farms.

Sue, my daughter from an act of gay abandon, hung around for a few years but because she was scared of sheep never did any work. Eventually she was rehomed and now spends her days on a cushion in the local saddlery and goes on holidays with her new family to Taupō.

He’s fond of the saying, “If all of your dogs are no good, the problem might not be the dogs.”

I think the boss told you that I was very crook earlier in the year.

I nearly died. I had something called autoimmune haemolytic anaemia, which means my own immune system thought my red blood cells were foreign invaders and was killing them off, leaving me very weak by the time he thought to take me to the vet.

They had to get a large police dog to come in and give me blood

for a transfusion to save my life.

Then I was on all sorts of drugs, including chemotherapy, for months.

It cost him a fortune.

Mind you, he hasn’t been in the greatest shape himself.

When I got crook, he’d only just got his arm out of a sling from a broken collarbone after he fell off his two-wheel motorbike while looking at deer running through his young trees.

Ever since then he’s been limping around moaning about how sore he is with hip arthritis in both hips.

He’s on his own so he can’t knock off for a few months to get something done about them and anyway he’s not bad enough for the public health to even put him on a waiting list, he hasn’t got health insurance and reckons he hasn’t got $65,000 now to get them done privately.

So he just limps around grumbling away but no one takes any notice.

He’s also worried about events and turmoil in China and how their economy is reacting. Points out how critical it is to the primary sector here. The threat of a recession everywhere else in the world is not helping either.

Currently there is a sharp fall in beef and sheep meat prices, which is taking farmers by surprise and comes with a decent amount of trepidation. The meat companies don’t appear interested in mutton at all and he hears there are concerns about other products like velvet. He feels sorry for the new entrants who will be experiencing this for the first time in their careers as it has been a great run for a decade. Older hands like him have been through worse and understand cycles better, but it’s still not fun.

He’s got a modest-sized sheep stud and has lost three good clients to pine trees just in this year alone and wonders how this trend can be halted without impacting on balance sheets and equity.

Farmers are going to have to tighten their belts given the high cost structure, and that tightening will impact upon our support industries.

However, he points out how much feed everyone has, which gives the ability to run into the new year all the extra stock that we seem to have ended up with so it could be worse.

And he is fond of pointing out that although we think we have

a crisis in democracy. While the government is out of control in many areas and the 60% vote is an example, I don’t believe we have a half-effective opposition.

At the moment National’s leadership is giving me dog whistle rejoinders and debating points but nothing of substance. When Dr Shane Reti speaks, I listen.

Predictably, the Greens offer me little.

I’ll admit to being impressed with ACT over the past six months. Their agricultural spokesperson, Mark Cameron, is more active and relevant than anyone I’ve struck from National.

I’ve taken the liberty this year of asking Santa to repeal Three Waters, simplify the RMA, promote Dr Reti to the leadership of National, have the government run a “We Love Farmers” campaign, and to provide free gin on Saturdays.

As I’ve been good all year –perfect in fact – I am, forever, hopeful.

ALL RELATIVE: Ditch the dog has had a rough year, and so has the boss – but it could be worse, he says.

problems, it’s a hell of a lot better than living in places like China, Ukraine, Russia, Haiti and Iran, to name just a few of at least 120 countries.

He tells me a lot of stuff like this.

Look after your dogs over the festive season and don’t feed them a ham bone like he did to me once. It was a nasty experience.

Have a great festive break yourselves, enjoy time with family and friends and make sure you get at least some sort of break for your own wellbeing.

CHRISTMAS CHEERS: Alan Emerson wants more than just free-gin Saturdays in his stocking this year.

Alan Emerson

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

Steve Wyn-Harris

Central Hawke’s Bay sheep and beef farmer: swyn@xtra.co.nz

How to move forward on methane levies

The braided trail

no real surprise, as they had told me many months ago they would support such an approach.

In terms of politics, Groundswell’s recent petition to Parliament, containing more than 100,000 signatures, is clearly of relevance. In a political context, the days when Groundswell perspectives could be brushed aside have passed.

key ongoing agriculture-related task of the CCC will be to advise on whether agriculture is on track to reduce its 2030 methane emissions by 10%.

uneconomic land out of pastoralism should reduce methane emissions by more than 5%.

Keith Woodford MD at AgriFood Systems kbwoodford@gmail.com

IN MY previous article I asked whether, in seeking a way out of the current policy mess relating to agricultural greenhouse gases, we might agree on two overarching principles.

The first is that pastoral agriculture must remain vibrant and prosperous. This is essential, not because farmers have any right to a protected future, but because New Zealand’s export-led economy is highly dependent on pastoral exports.

Pastoral exports comprise approximately 50% of merchandise exports, with primary industries in total comprising approximately 80% of merchandise exports.

It is in the interest of all New Zealanders that pastoral agriculture thrives.

The second principle is that we have international commitments to do whatever we can to reduce greenhouse-gas emissions consistent with maintaining that vibrant pastoral industry.

Underlying those commitments is the evidential science that methane and nitrous oxide are indeed greenhouse gases, and that each additional molecule does lead to a warmer world than if those molecules were not emitted.

I then laid out that if those principles are accepted, then the journey starts with defining the industry needs for research, development, extension and education (RDE&E) that are consistent with those principles, and then setting a farm-based levy in relation to that agreed programme. The key idea here is that in sorting out the mess, defining a focused RDE&E programme comes first.

This contrasts greatly with both He Waka Eke Noa (HWEN) and the government proposals, where the focus is on a tax that hobbles profitability without a clear focus driven by a problem-solution strategy.

Among many emails of strong support that I received, particularly notable were unsolicited communications from several MPs. These people hold leadership roles in both the government itself and across the parliamentary pit in the opposition.

I also received unsolicited communications from influential people in Groundswell, which was

As for the HWEN partners themselves, I heard nothing, but that did not surprise me. I knew that my original submission to HWEN, prepared jointly with Graham Brown and Jane Smith close on six months ago, had been forwarded at that time by the HWEN secretariat both to the steering group and also to the HWEN governance group. Supposedly it was the only one of some hundreds of submissions where the full submission got through to the top level.

The dominant response in private at that time from individual HWEN partners was that they too were in agreement with our submission on this and other key points. But alas, in all the horse trading that subsequently went on within HWEN these fundamental principles were lost.

If I were an optimist I would think that the prospects of making good things happen would be strong, given the support I received. However, I have learnt that, as the old proverb says, there can be many a slip between cup and lip. That is particularly the case when tribal groups and parties are more skilled at and attuned to fighting, rather than finding a consensus pathway.

Nevertheless, still trying to be optimistic, it has struck me as worthwhile to try to sketch out a little as to how such a scheme might work and how the benefits might be achieved. In doing that, it is important to recognise the importance of the split-gas approach, which now seems to have been widely accepted by all key decision-makers.

This split-gas approach was flagged in the 2019 Climate Response Act as a potential alternative to the Emissions Trading Scheme (ETS) pathway, but dependent on further development within HWEN. My own assessment is that in recent months any substantive opposition in Wellington to a splitgas approach for methane has faded away.

Split-gas means that methane will be charged per kg of methane, not per unit of carbon dioxide equivalence (CO2e). What happens to the carbon dioxide price within the ETS is no longer relevant to the pricing of methane.

Consistent with this, Rod Carr in his role as chair of the Climate Change Commission (CCC) has said publicly on more than one occasion that the issue for the CCC in advising on appropriate pricing for a methane levy has nothing to do with carbon dioxide pricing, CO2e, GWP100 or GWP*.

From here through to 2030, the

That 10% figure is already set down in legislation agreed to on both sides of the parliamentary pit. There is potential for reconsideration to occur in 2024, but changing the figure will be challenging.

Ironically, the key implications of split-gas have not been fully understood within the agricultural sector itself. Instead, many within the agricultural sector are still hung up on CO2e thinking in relation to methane emissions. So, how can methane be reduced by 10% by 2030 with pastoral agriculture still thriving?

The second opportunity to cut emissions is through emerging Lincoln University and Ravensdown “ecopond technology” to stop methane emissions from effluent ponds. This technology is now at the level of farm-scale testing. It has the potential to reduce total dairy farm emissions by about 8% if fully implemented, and hence total pastoral emissions by about 4%. Further reductions will be harder to come by, with none of the hyped technologies such as vaccines, 3-NOP or seaweed extracts having a clear path to success. Breeding for low-emission sheep and

The next big issue is deciding who should determine the focused RDE&E programme. This is not a job for the RDE&E organisations themselves. Nor is it a job for industry politicians. Rather, it has to be people who have a strong applied-science understanding of farming systems. It needs a team who can engage in robust discussion to sort the wheat from the chaff.

The reason that RDE&E organisations such as the Crown Research Institutes and universities cannot themselves be given these responsibilities is that these organisations are driven by the need to create and capture the funding honey-pots. The perfect outcome for these organisations is if a project keeps identifying

The only reason this steep backcountry land is not already in production forests is that it is too distant from ports and also has high harvest costs. Its future lies in carbon farming of one type or another.

The first reduction can and will come from retirement of steep, erosive, low-productive backcountry out of sheep and beef. There can be debate about the precise area, but there are certainly more than 1 million hectares that are not only low producing but expensive to farm with high costs fighting weeds and scrub.

The only reason this land is not already in production forests is that it is too distant from ports and also has high harvest costs. Its future lies in carbon farming of one type or another.

Taking this essentially

cattle shows promise but my own assessment is that caveats are appropriate as to how this might play out.

Progress can also be made with more productive animals. However, this plays out rather differently, as less methane per unit of output rather than less total methane. It is all about channelling more of the eaten feed into meat and milk rather than in body maintenance. Improving the ratio of output per unit of methane is key to retaining a social licence for pastoral agriculture.

In dairy this means further increasing the ratio of milk solids to liveweight. Great progress has already been made over the past 30 years but there are known pathways to further improvement, albeit needing reinforcement from RDE&E.

With sheep, the way forward is through higher lambing rates, higher carcase weights, more hogget mating and lower death rates. Of course, all of these are easier said than done.

With beef cattle the path relies on better use of surplus calves from the dairy industry.

potential at the end of a rainbow needing more and more funding to capture.

As for industry politicians, they typically lack the science underpinnings to take a lead role in determining the focused programme. However, there are individuals within industry who have insight, experience and independence, and who could be shoulder-tapped to play a shaping role within the team.

As for what this might cost, I reckon a ball-park figure for a levy might be 10c per kg of methane. That would work out at about $1.10 per sheep, about $10 per dairy cow, and an in-between figure for beef cattle. Perhaps some of it could come from existing industry R&D levies. It would create a fund of about $100 million per annum, which would go a long way in a properly focused programme as long as it’s overseen by the right team of individuals with in-depth applied-science understandings relating to farming systems.

Well, that is enough for this article. I trust I have given people something to think about.

GULLY: The first reduction will come from the retirement of low-productive hill country out of sheep and beef, says Keith Woodford – affecting up to 1 million hectares and reducing methane emissions by more than 5%.

Astra Farms’ young star on the rise

Estee Browne, who was named Beef + Lamb NZ AgResearch Emerging Achiever at the recent awards, doesn’t consider herself anything exceptional. Neal Wallace meets a young farmer who, despite that modesty, is leading change in her family’s business.

ESTEE Browne has never shied away from challenges or hard work.

In high school she had a list of chores to complete before catching the school bus, at a time when she was also training for competitive rowing.

It was an upbringing that set up the now 27-year-old to confront a series of challenges – taking her career and family business in a whole new direction.

“I go to work, it’s not that hard,” the unassuming Cambridge farmer says.

When Browne was growing up her parents Allan and Toni ran a 600ha sheep and beef farm on flat to rolling country outside Cambridge.

But in the past nine years the property has undergone significant changes, with Browne at the forefront.

In 2013 the family converted part of the farm to a dairy unit but that wouldn’t be the end of diversification for the Browne family – or challenges for Estee.

At the age of 18 she was awarded a rowing scholarship to West Virginia University in the United States.

In New Zealand she had rowed as a double scull but in the US she was selected for the eights squad. That adventure came to an end when a back injury, caused by wear and tear, ended her rowing aspirations.

Browne stayed in the US for 18 months, during which she studied nutrition and sports psychology.

On returning home it was straight into the cold, hard realities of farming.

“I came home and began cutting thistles,” she says.

The family were heavily involved in livestock trading and Browne was soon learning the ropes.

Her big chance came when a polo event, a sport in which the family are involved, clashed with a store

cattle sale and Browne was asked to attend.

“Out of desperation I was allowed to go to it.”

It proved a financially successful move.

“I don’t think I would have been allowed back if it hadn’t worked out.”

As she always has, Browne had done her homework.

When learning the art of livestock buying, for each line she would note down an estimate of the animal’s weight and value, which she would then compare against the actual killing sheets.

In tandem with this assessment, Browne also started to learn the attributes of the stock offered by various store stock suppliers.

constitution and udder.”

They bought a mix of East Friesian, Coopworth and Highlander ewes and those that made the final selection were put to Lacaune rams.

The first crossbred lambs were born in 2020, the foundation of an initial 1100 milking ewe flock.

On reflection Browne wishes she had kept more thorough records on attributes such as feet, as milking sheep are not as resilient as those bred for meat and wool.

Milking sheep are also bred to be kept indoors so do not tolerate extreme cold or extreme heat.

In the first year the ewes produced between 2.5l and 3l of milk a day.

Last year they were hit by facial eczema but still produced 381,825l or 68,173kg/MS.

This year Astra Farms are milking 1500 ewes and are Maui Milk’s largest supplier.

The family had a sizeable livestock trading business, but disruption to store stock markets during covid, a reduction in the number of sellers and tightening margins made the decision to ease back relatively straightforward.

But another opportunity was to present itself.

Browne recalls the family talking about sheep milking when she was a teenager, and in moment of pure coincidence as they considered alternatives to livestock trading, representatives from Maui Sheep Milk came visiting.

After deliberation and attending a couple of field days, the family decided to branch into sheep milking.

“It was something new, a new challenge and it was the right time and right opportunity.”

Browne was put in charge of building the flock for Astra Farms.

“We went to saleyards and bought a lot of ewes, anything that had a good mouth, feet,

Browne says she has worked in cowsheds so has an understanding of the process, and the family has learnt the other skills required to run a sheep-milking operation by talking to other farmers. This includes monthly discussion groups.

Many of those farmers have made the switch from milking dairy cows and Browne says they have adopted a similar pasture and stock management approach to sheep, such as rotational grazing.

The paddocks on Astra Farms tend to be larger and the pasture managed according to sheepfarming practice rather than that used for dairy cows.

They milk their ewes from July to May, but the biggest transition has been rearing lambs – 3000 this year.

Lambs are taken off their mothers at two days of age and reared for 35 days before weaning.

Daily feeding takes from 5am to 7pm each day, starting in August

and lasting until November.

As operations manager, Browne is involved in all aspects of the business, including the chore of training lambs to drink from a feeder.

With a daily intake of up to 200 lambs, it can be a demanding task.

Ewe lambs go to the ram the following March and males are finished for slaughter.

Browne, who was recently appointed a director of Astra Farms, says milking ewes behave

very differently to those bred for meat and wool.

“Those operate out of fear, but milking sheep are much more relaxed. They come up for a pat, which does make it quite frustrating when you need them to move.”

Winning the Beef + Lamb NZ AgResearch Emerging Achiever Award was a surprise and not something she sought. She was, she says, just being herself.

“I like going to work.”

TIME OFF: Polo is an interest for Estee Browne and provides a break from sheep milking.

I go to work, it’s not that hard.

FAMILY BUSINESS: Astra Farms is run by, from left, Allan Browne, Estee Browne, Izzi Corke and Toni Browne.

FEEDING TIME: Estee Brown with some of the lambs reared on the family farm last season.

Herbs take on weeds in orchard trial

Using perennial plants to reduce herbicide use is the basis of an apple orchard trial working towards an industry 2050 goal. Annette Scott spoke to AgFirst Motueka consultant Aimee Lister about the project.

ABATTLE is underway in an apple orchard in Motueka as researchers watch to see if groundcover plants will see off weeds and reduce the need for herbicides.

The trial is one of 12 projects to gain funding from the Rural Professionals Fund established in 2020 by the Our Land and Water National Science Challenge to support projects that could lead

to significant improvements in farming systems and benefit farming communities.

In the Motueka study, herbs and forage species have been planted under apple trees in a Nelson apple orchard.

AgFirst, Willisbrook Orchard, New Zealand Apples and Pears Inc (NZAPI) and Plant and Food Research in Motueka are all involved in the trial.

AgFirst Motueka consultant Aimee Lister says current orchard practice is to use herbicide sprays under trees to remove competition for nutrients and water from unwanted weed plants.

This has been a reliable and costeffective management practice, but it leaves the ground bare, susceptible to erosion and with overall reduced soil health.

Ground cover has been effective with a lot of other fruit species, especially grapes and citrus, but not so much with apples.

“It’s always been an interest of mine so here’s the chance to look at alternative low-growing ground crops to reduce the use of herbicides,” Lister says.

The industry aims to significantly reduce chemical use by 2050.

“This project aims to contribute knowledge to the goal of eliminating the need for herbicides in future.

“The date is just a target and it is important to look for alternative effective management practices.”

The trial got underway on October 1 on Willisbrook Orchard at Hope, near Nelson.

Seed beds were established and seven different seed species

planted under two rows of apple trees, each row 100m long.

The advent of new-age canopy systems with trees growing in a 2D configuration, as opposed to in a traditional vase shape, means more light now reaches orchard floors. This makes it easier for weeds to grow but also provides the conditions for the species used in the trial to become established.

“We had a viticulturalist help select plant species which were deemed to have the best attributes, including that the seeds were readily available, they were low growing, spread easily and were perennial.”

Each species has been planted separately to be able to measure how each performs and how they interact with the soil and trees.

The species selected are sheep’s burnet, a deep-rooted perennial herb; bird’s foot trefoil, a member of the pea family; plantain, a herb with a fibrous and coarse root system; strawberry clover, a

perennial clover that performs well in hostile conditions; alyssum, a compact perennial flowering plant; chicory, a hardy perennial; and common yarrow, a flowering, low-growing plant.

The initial trial is for nine months.

Lister acknowledges it is a short timeframe for the trial, but says it is hoped enough information can be gained to establish if all or some of the plants effectively out-compete weeds, reducing the need for sprays without having any detrimental effects on the trees and the fruit they produce.

The trial has the potential to grow into several years to cover resulting soil health and quality and tree health. “We have the support of NZAPI and Plant and Food Research, who will help with gathering the scientific information needed to understand the species which perform best.”

The research will include sampling leaves and fruit, both

from fresh fruit and stored fruit, to find out if the ground-cover plants compete for nutrients with the trees and if there are any implications for increased pest and disease pressures.

Soil samples were taken before the trial began and sampling will be continued throughout the trial period to find out if there are any differences in soil microbiology.

Control samples will also be taken from trees and from the soil of orchard rows managed under the traditional weed-spray strip system.

The project met with a few initial challenges, including finding machinery to prepare seed beds and plant the seeds, and installing irrigation to ensure the cover crops survive.

“We were able to find a vineyard contractor who had a machine which could prepare the seed bed between the trees, but there is very little orchard equipment capable of working under apple or pear trees.”

If the trial is successful and the concept widely adopted, then the equipment needed to prepare the seed bed and plant the seeds will no doubt emerge, Lister says.

While the focus is to control weeds under trees, the trial will also monitor how the ground cover reduces soil erosion, which will be particularly relevant for orchards on hillsides.

“There has been quite a lot of interest in the trial from the industry and we will be keeping growers up to date with its progress through regular NZAPI field days.”

The trial fits well with AgFirst’s vision to enhance sustainability within its own business and that of its clients.

“The ideal result of the trial would be that at least a couple of the plant species do well and quickly establish ground cover which excludes weeds but does not compete too much with the pipfruit,” Lister says.

“If we can prove the use of ground-cover species works, the practice is easy and cheap to use without creating additional labour costs and it reduces expenditure on herbicides, then ultimately we would like to see the practice more widely adopted within the industry.”

SOIL EROSION: AgFirst Motueka consultant Aimee Lister says the current orchard practice of using herbicide sprays under trees has been reliable and cost-effective, but it leaves the ground bare, susceptible to erosion and with overall reduced soil health.

IN ON THE GROUND: Growing trees in a two-dimensional configuration means more light reaches orchard floors. This has favoured weeds, but could also help establish the plant species used in the trial.

China churn set to unsettle dairy – NZX

economy at the moment.”

our demand will fall off to.”

ADAIRY analyst is warning the dairy sector not to expect market activity to strengthen in China as it transitions out of its strict covid lockdown policies and returns to normal.

Speaking at a breakfast event at Fieldays on dairy risk management, NZX dairy insights manager Stu Davison said he does not see a lot of short-term positivity in China at the moment.

Once China gets rid of its covid policy, it has lots of economic problems to deal with, as well as covid infections and the political unrest that has been seen in the country, he said.

Davison said he is concerned about how China is going to reestablish its economy.

“This is a threat to New Zealand dairy, it’s going to soften our prices. It’s not like it’s going to disappear forever and we know that the FTA [free trade agreement] kicks in in 2024, and a zero-tariff policy on all imports, which is going to be really handy, but we need their economy.

“Their economy drives our

Davison said he is also concerned about the macro-economic factors affecting global demand for consumers.

“The way I simplify that one is how deep are consumers’ pockets likely to be in the next couple of years?”

Interest rates are impacting all consumers globally and “as a consumer, how important is dairy to me as a weekly or a daily product? That determines where

Unlike the 2008 Global Financial Crisis, when Chinese consumers stopped buying, this time around dairy is more entrenched in their diet, which could cushion any fall.

“It’s not all doom and gloom but it could definitely have an impact.”

In the past six months growth in milk solid equivalent trade in China fell 28% compared to the same period last year.

Davison described it as a trade hole in China, with 125,000t less dairy product imported into the country.

“That’s a massive volume of dairy missing from trade flows and that’s why we’re seeing this softening of price.”

That could put the milk price under pressure, he said.

The milk price futures market is a good measure of how volatile the market is at present, with contracts trading at $8.90. This is where the market is seeing milk price futures for the current season.

“The volatility we have seen in the nearest contract in the last several months has been quite substantial. We have seen $10.67 traded on the nearest contract and we’re as low as $8.80 now.

“The volatility on the world market is seen in that future where people are exchanging

Built to be rugged

With a durable design, the TML Rugged is built to withstand harsh conditions no matter where you are. Designed to help with a range of tasks around the farm, TML Rugged can be used in tractors as well as open-cab vehicles such as quad-bikes or side-by-sides.

Whether you are spreading, spraying or moving k-lines, the TML Rugged allows you to track where you've been. Then, once jobs are completed, they can be reported on using TracMap Online.

risk for what they see.”

He said NZX has forecast a midrange milk price of $8.80/kg MS and expected Fonterra to lower its forecast, which it did, down to $8.50-$9.50/kg MS.

“I’m usually a pretty optimistic person, but right now, it’s looking poor,” he said.

It’s not all doom and gloom but it could definitely have an impact.

Gerald Piddock NEWS Dairy

TOUGH TIMES: Economic problems in China are a threat to New Zealand dairy, says NZX’s dairy insights manager.

GLOOMY: NZX dairy insights manager Stu Davison says he does not see a lot of short-term positivity in China at the moment.

Stu Davison NZX dairy insights manager

Waterways system banks Young Innovator Award

Staff reporter TECHNOLOGY Fieldays

ASTUDENT start-up from the University of Auckland and Auckland University of Technology has been named Fieldays Young Innovator of the Year for its work on waterways.

Delta Waterways uses satellite data and data analysis techniques to revolutionise the way waterways are monitored.

The judges commented on the potential Delta Waterways has and the benefits it could provide in a variety of situations, including potentially closing the loop in waterway pollution control.

The judges commended St Paul’s Collegiate School and its Sterineedle project, especially for the product development process that was followed in getting to what looks like an effective and well thought-out solution.

More than 60 finalists were in the running to be considered in the Young Innovator, Prototype, Early-Stage, and Growth & Scale award categories of the Fieldays Innovation Awards.

The 2022 Prototype Award winner was the University of Waikato for its Kiwifruit Human Assisted Harvesting e-BIN, which was developed with the goal of

making fruit-picking easier for a wider range of people.

The award judges appreciated the decisions that led to a system that uses humans to do things like location and tricky picking while the e-BIN does its job with just the right amount of automation.

The judges commended another finalist, Donald Cornwall, for the way he took a low-tech approach to solving the problem of optimizing the use of a feed paddock. Donald’s Automated Moving Fence was described as simple, low-cost and effective.

the company’s overall business model.

The judges made special mention of newcomer Bovonic, a company that aims to identify mastitis early in cows, saving time, money and pain in livestock.

The judges said the invention had a lot of potential and its creators had made impressively quick progress in such a short period of time.

The 2022 Growth & Scale Award winner was previous Fieldays Innovation Award winner RiverWatch, whose hardware and software solutions work together with the end goal of creating swimmable oceans, rivers and streams by providing a network of real-time water quality information.

The judges were impressed with the practicability and scalability of this software from the science behind it to its easy installation. They also acknowledged its flexibility, which means it can be used in situations globally.

were praised for their cross-section of talent, with Peter Nation, CEO of New Zealand National Fieldays Society, saying this showed the breadth of creativity across the primary industries.

an amazing showcase of the innovation that can be found throughout New Zealand and around the world.

The 2022 Early-Stage Award winner was SNPshot, the company behind SNPshot Sampler, designed to make DNA sampling of livestock seamless and simple.

The judges commented on the extremely well-executed and thought-out design. They mentioned its clever structure and efficiency and were impressed with

Entrepreneur and businessman Nick Mowbray spoke at the awards ceremony, partaking in a Q&A with host and Fieldays regular Te Radar. Mowbray shared his story of creating the toy and consumer products manufacturer ZURU from humble beginnings with his brother.

Entries in the Innovation Awards

“Fieldays is the home of innovation and the best platform to launch new ideas in the agricultural sector,” Nation said.

“Fieldays Innovation Awards is a programme that I, along with the wider Fieldays team, am immensely proud of.” Fieldays Programme Manager Steve Chappell said that the Fieldays Innovation Awards are

“The standard of entries was very high again this year, and I know the judges had to make some tough decisions,” Chappell said.

“I’m happy for those that won and know that the prize packages for each category are going to make a world of difference on their innovation journey.”

Supported by a range of sponsors, the Fieldays Innovation Awards have a total prize package valued at over $60,000.

Sites to behold claim awards at Fieldays

Staff reporter NEWS Fieldays

HANSEN has taken the Supreme Site Award at Fieldays for, in the words of the judges, having gone above and beyond to provide an exceptional customer experience to visitors.

Judges for the Fieldays Site Awards also evaluated the site on its overall attractiveness, innovative site design,

recognisable branding, and clear focus on customer service.

Proving a fan favourite with all ages, the site features working demonstrations of valves, fittings and irrigation systems.

In exchange for a donation to the charity Cure Kids, keen punters can also test their skills on the rock-climbing wall.

Sustainability also ranked high with the judges, who praised Hansen for the way it has embraced environmentally responsible behaviour.

“It was great to see Hansen has embraced a strong focus on sustainability,” said David Natzke, key accounts and sales manager and coordinator of the site awards.

“Everything was considered, right down to their staff uniform, which was made from recycled cardboard and bamboo – and even included their shoes”.

Fitting with the brief for summer, the fun outfits where a showstopper, Natzke said. “They certainly look ready for tan lines and good times.”

Food truck Deejays Gourmet Griller was recognised for its dedication to the environment, winning the Commitment to Sustainability Award for the use of alternatives to plastic cups and utensils.

“Their use of high quality, locally sourced produce and aim to use packaging that doesn’t end up in landfill was great to see,” Natzke said.

The award for Best Agribusiness Outdoor Site went to finance and investment company Jarden, whose site features a wine bar, indoor and outdoor seating and a seminar schedule of industry professionals speaking about the issues that matter the most to the primary sector.

Feed manufacturer SealesWinslow won the Best Agribusiness Indoors Site for its

visually appealing and inviting site.

The architectural layout and use of modular features such as the cow enhanced its branding in an eye-catching way.

Finally, foodie and newcomer Benito’s Pleasures was recognised as Best Small Site. The beretwearing staff were praised for entertaining visitors and serving up delicious, authentic crepes with passion and flair.

The winners received a prize

hamper and a discount off the cost of their 2023 site.

It was great to see Hansen has embraced a strong focus on sustainability.

David Natzke Place

WATER WIN: Auckland students Brendan Bell and Ander Castelltort Schnaas were recognised for Delta Waterways, which uses satellite data and data analysis techniques to monitor waterways.

Fieldays is the home of innovation and the best platform to launch new ideas in the agricultural sector.

Peter Nation New Zealand National Fieldays Society

FITTINGS WINNER: The Hansen site – with its staff clad in recycled cardboard and bamboo gear – impressed the judges with its interactive features and sustainable approach.

STANDARD BERET: Benito’s Pleasures was recognised as Best Small Site as staff served up delicious crepes with passion and flair.

‘How can we go green if we’re in the red?’

Gerald Piddock MARKETS Sustainability

THERE’S an overwhelming sense of familiarity for Diarmaid Mac Colgain when he observes the debate in New Zealand about how farmers can produce food more sustainably.

The language in the discussions between farmers, sector groups and the government is the same as that used in Colgain’s home country of Ireland.

Colgain is the founder of Concept Dairy, an app that allows farmers to lock in their milk price for up to two years. He was part of a 16-company Irish delegation at this year’s Fieldays at Mystery Creek.

Ireland and NZ are both huge dairy exporters, exposed to international market prices.

For Ireland that market is the European Union and for NZ it is largely China and the rest of Asia.

Both exporters operate in an environment where milk prices are extremely high, but so too are the costs associated with producing that milk, he said.

“We are pushing sustainability on farmers in a high-price environment. But if it rolls back, and you look at a $5 milk price in

New Zealand, will farmers adopt to make all of these changes and how much is that going to cost?”

Colgain questioned whether the push to be more sustainable will result in sustainable farmers subsidising other countries.

“If you’re in a shop in Nigeria and there’s Indian, South African or whatever and it’s unsustainable milk powder versus Irish, English and New Zealand milk powder –what are they going to pick? The cheapest.”

The industry has to look at the customer in the end, he said.

He wondered if Fonterra’s decision to partner with Nestlé for a zero-carbon farm may have been a result of pressure from Nestlé shareholders.

“At what point do you get the balance right between being sustainable and losing money? When you talk about sustainability, there’s economic

sustainability and there’s social sustainability. We’re always focused on environmental as that’s the easiest one to look at, but how can farmers go green if they are in the red? They’re just going to quit.”

He pointed to the United Kingdom, where about three dairy farmers are quitting every day and more and more pressure is being put on farmers to be sustainable. But they were not being supported in terms of the price being paid for the product they produce.

The market is going to have to respond with a higher milk price otherwise it will get worse because with Britain leaving the EU, it lost that farmer payment, he said.

He is also conscious this is occurring at a time when living costs and food prices are climbing globally. Either the farmer or the consumer is going to have to pay for it.

“If they want a sustainable product, there is a cost associated with it.”

The changes in the primary sector are not going unnoticed by the EU’s ambassador to NZ, Nina Obermaier, who was at Fieldays for the first time.

Farmers in both Europe and in NZ are facing changes in the regulatory space while at the same time EU countries face a cost-

Change of gear needed to span urban-rural gap

FARMING cannot rely solely on Jeremy Clarkson to connect with urban audiences, the Nuffield Farming Conference was told.

The outspoken Clarkson, former presenter of Top Gear and now the star of Clarkson’s Farm, was back in the headlines last week when he suggested food is too cheap, telling the News Agents podcast that “people simply do not pay enough for their food”.

Farmers are an endangered species and the gap between them and urban areas is wider than ever.

David Hughes Imperial College London

“The one thing a government will never say is that you have got to pay more for your food,” he said.

The comment was referenced during a lively debate about the urban-rural divide at the Nuffield conference in Cardiff.

Chaired by Nuffield scholar Anna Jones, the debate centred on a motion that UK farming and the countryside are out of touch with urban society.

Arguing for the motion was Professor David Hughes, Emeritus Professor of Food Marketing at Imperial College London, and challenging it was the founder of Oxtale Communications, Amy Jackson.

“Farmers are an endangered species and the gap between them and urban areas is wider than ever,” Hughes said.

The technological revolution in agriculture is positive from a production perspective, but it is “scary” for consumers to think about developments such as gene editing, he said.

“There is a big distance between farmers and consumers and you cannot just rely on Clarkson’s Farm [to tell your story],” Hughes said.

Jackson, however, argued that farming and the countryside are inextricably linked to people’s sense of cultural identity and the gap between town and country is much narrower than many claim.

“People are fascinated and engaged with the developments in agritech.

“And the word ‘farm’ is still intrinsically good and is used to market food,” she said.

The motion was narrowly carried in an audience vote.

Farmers Guardian

of-living crisis and the ongoing effects on the Ukraine war.

That cost-of-living crisis has not dampened the call for more sustainable products, she said.

In terms of the bloc’s common agricultural policy, “support for farmers is very much geared towards achieving sustainability objectives”.

“From a consumer point of view, there is very high demand to know where the product that you’re eating or the food that you’re buying comes from and that it’s produced with as little environmental harm as possible.”

Obermaier said NZ’s primary sector needs to continue to work with the government, which wants

to make these changes in a cooperative manner.

“Everybody understands that a lot has been asked of them but everybody has to give their contribution to climate change,” she said.

Obermaier does not see NZ’s emissions pricing legislation as something that farmers in the EU’s member countries can copy because the emissions profiles of these countries is different.

Agricultural emissions make up about 10% of total emissions. EU farmers realise they will have to reduce their emissions too, but emissions pricing is focused on sectors that are larger emitters, Obermaier said.

Young farmers go all in for naked appeal

GWENT Federation of Young Farmers’ Clubs have bared all for their 2023 naked calendar in aid of Wales Air Ambulance and Gwent Young Farmers Club.

Members have posed in 12 months of countryside photographs to make the charity calendar, now on sale

from the Gwent YFC website.

Laura Bowyer, Gwent YFC county chair, said: “Wales Air Ambulance relies entirely on charitable donations to raise £8 million [about $15m] every year to keep the helicopters in the air and rapid response vehicles on the road across Wales.”

Farmers Guardian

Wales Air Ambulance relies entirely on charitable donations to raise £8 million [about $15m] every year to keep the helicopters in the air and rapid response vehicles on the road across Wales.

EXPOSED: Diarmaid Mac Colgain says farmers are having sustainability pushed on them at a time when high prices compensate for higher costs – but what happens, he says, if prices fall?

At what point do you get the balance right between being sustainable and losing money?

Diarmaid Mac Colgain Concept Dairy, Ireland

BANNER AND BOOTS: Members of a Welsh Young Farmers Club get their kit o for a charity calendar to raise money for Wales Air Ambulance.

One of NZ's most distinguished

Waipaoa Station; 3,662.7ha (STS) is for sale by way of International Tender and provides the opportunity to acquire one of the most exemplary sheep and beef properties in NZ. The Station may be considered in its entirety, or as 4 individual operations, each of which contains a multitude of very favourable farming attributes and is set up to deliver superior farming performance and results. Waipaoa comprises an abundance of flat land, the heart of which is under centre pivot irrigation consented for 124ha. The farm's easy-rolling contour has excellent water infrastructure, and outstanding fertility throughout, with the rear of the farm being home to the esteemed Waipaoa Farm Cadet Training Trust. Years of extensive investment, quality contour and focus on productive performance, have ensured efficient farming practices and has seen farming operations thrive. bayleys.co.nz/2752753

Farm, forest and duck shooting on 202ha

202.42ha

Tender (unless sold prior)

Closing 4pm, Thu 26 Jan 2023

17 Napier Road, Havelock North View by appointment

Tim Wynne-Lewis 027 488 9719

tim.wynne-lewis@bayleys.co.nz

Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz

Taumatahinau Forest

Hukerenui, Far North District

Scale and proven production

Elsthorpe 2412 Kahuranaki Road

Rotorua

Whirinaki Valley Road

Pekanui is located in the Tararua district and is known for its spectacular scenery. Just a little over 15 minutes from Dannevirke on Weber Road, this 254 ha property enjoys a balanced aspect that offers amazing views over the Weber District and out to the ocean.

Incorporating an excellent balance of farmland with quality soils, stands of native trees, stunning multiple freshwater creeks and limestone rock formations, this unique environment combines a sustainable balance of productive farming and nature. The contour is a mix of easy to medium and some steeper areas. The farm is well tracked and has a high standard of fencing throughout.

Tender closes 2.00pm, Thu 15th Dec, 2022, Property Brokers Ltd 4 Stanley Street, Dannevirke

View By appointment Web pb.co.nz/DR104636

Sam McNair M 027 264 0002

Jim Crispin M 027 717 8862

Ruawhata Dairies - 226 ha

Located under 10 minutes drive from Pahiatua, Ruawhata Dairies is a 226 ha dairy farm that is well suited to continue as an established dairy unit or a summer safe, support or finishing farm. Regularly high producing with last season 210,000 kgMS off a 180 ha platform, the property boasts superior soils, virtually all flat contour, modern pasture species, quality farm infrastructure and two dwellings. Improvements include a 54 bail rotary shed complete with a 500 cow feed pad and a good range of shedding. Dwellings include a large three bedroom main residence set in established grounds and a second three bedroom home nearby providing excellent on farm accommodation.

Auction 2.00pm, Thu 15th Dec, 2022, (unless sold prior), Bush Multisport Lounge Bar

View By appointment

Web pb.co.nz/PR111895

Jared Brock M 027 449 5496

Sam McNair M 027 264 0002

Jamie Smith M 027 220 8311

Dannevirke 1921 Weber Road

Final Notice

Pekanui aesthetically appealing farm

Pahiatua 672 Ruawhata Road

Auction

MEREMERE, WAIKATO

Location Plus! 88.7ha fattening unit/run-off block located just 2km from the Hampton Downs on-ramp off the Waikato Expressway, thus providing you with easy access both North to Auckland and South to Hamilton. The wide central raceway leads to the back of the property, feeding onto 25+ well subdivided paddocks all containing troughs, that are on town water supply. All the electric fences on the farm are powered by a solar power unit. • Solid cattle yards, haybarn and woolshed Easy rolling, well-fertilised pasture Producing some of the best local prime cattle

Hoggs Road Forest

Rangiwahia, Wanganui Region

• 337ha arable and dairy support property offered for sale for the first time in 102 years. Options to walk in and farm or further develop Spray irrigated with combination of Acton water and ground water with long term consents 2.5ha storage pond. Two pivots and the balance rotorainer plus back up

Westwood Forest

of Pinus Radiata on its first rotation planted in May/ June 2022. Approximately 3ha of mature forest borders Hoggs Road.

This is a superb opportunity to secure a young forest that will generate carbon and produce a quality crop.

Don’t miss out contact your forestry specialists below to request the detailed Information Memorandum!

The property is to be sold by tender with deadline for all bids to be presented no later than 3pm, Thursday 2nd February 2023 (unless sold prior).

For further information contact: Warwick Searle on +64 21 362 778 or warwick.searle@colliers.com LK0114198©

Winton, Southland District

Located 35km north of Winton and 68km north of Invercargill is Westwood Forest a 359.8 hectare block with a Net Stocked Area (NSA) of approximately 287.6 hectares.

This Southland forest is situated on moderate to rolling hill country between an altitude of approximately 300-500m above sea level. Access throughout the block is via a network of well-established 4wd tracks.

A majority of the block was planted between 1994 and 1998 including a small portion of Douglas-Fir producing a mature/late rotation forest in the heart of Southland.

Colliers International has been exclusively appointed to manage a two stage tender sale process.

Don’t miss out contact your forestry specialists below to request the detailed Information Memorandum!

The property is to be sold by tender with deadline for all bids to be presented no later than 3pm, Thursday 26th January 2023 (unless sold prior).

For further information contact:

Warwick Searle on +64 21 362 778 or warwick.searle@colliers.com

FOR SALE

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Sherlock

sleep. Sometime in the middle of the night Holmes wakes Watson up and said: “Watson, look up at the sky, and tell me what you see.”

Watson replies: “I see millions and millions of stars.”

Holmes says: “And what do you deduce from that?”

Watson replies: “Well, if there are millions of stars, and if even a few of those have planets, it’s quite likely there are some planets like Earth out there. And if there are a few planets like Earth out there, there might also be life.”

Holmes looks at him and says: “Watson, you idiot, it means that somebody stole our tent.”

Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’re keen to hear more!

If you’ve got a joke you want to share with the farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@agrihq.co.nz with Sale Talk in the subject line and we’ll print it and credit it to you. Conditions apply

Suz Bremner MARKETS Sheep

IT FEELS a bit strange to have decent grass cover in most regions heading towards Christmas, but that is what the tumultuous year of 2022 has decided to offer up.

It could not have been timelier, either, as overseas demand and processing issues continue to put plenty of pressure on farmers’ back pockets. The markets may not be at their best, but the grass is creating a buffer for any more negative movement at least as, when the grass grows in abundance, farmers need livestock to eat it.

Per-kilogram prices for most store cattle classes have at least held or firmed and, along with decent weights being posted, are providing respectable returns to sellers.

At this point in the season most two-year steers offered at the yards are falling in the 450-600kg liveweight range, while yearling steers are 300-450kg. Yearling

heifers are generally weighing up at 280-350kg for the main lines of quality. Lesser types, which tend to be dairy or dairy-beef, have also been subject to a lift in interest as these types of cattle that tend to come forward in small lines suit small block holders, who are finding their paddocks getting away on them.

The weaner dairy-beef market has also benefited from a better season. Also adding a buffer to this market is the significant lack of numbers.

With all the talk and action of fewer calves being reared, this comes as no surprise, but when the numbers are actually put on paper it paints a worrying picture.

Though there are still a few fairs to go before the year is out, the amount of ground to make up is far too wide to simply be a seasonal trend.

Looking back to the 2017 spring dairy-beef season, nearly 13,200 Friesian bull calves were sold at the North Island fairs covered by AgriHQ’s LivestockEye (Frankton, Rangiuru, Feilding, Taranaki, Wellsford). Last year, the figure

was just over 10,600 – and this year it is just 6200. Looking at total tallies (all breeds and classes) for these fairs, 2017 recorded 28,300 and last year close to 23,800, but to date this year throughput has only reached 14,400 or 60% of last year’s total tally.

That has meant that buyers have stretched budgets to secure calves this year and prices for Friesian bull calves on average have exceeded last year’s and are in line with solid results in 2019. For the same yards mentioned previously, the average price for a 100-130kg Friesian bull has decreased $18 from $534 in 2017 to $516 this year, though the 2017 crop sold over a larger range of $443-$574 compared to the current range of $490-$543. The most comparable year at an average of $493 and range of $436-$541 was 2019, with other years only reaching averages of $419-$480. Values clearly decrease as the season matures

In contrast, the dairy-beef steers and bulls tend to be more resilient and though values are again best compared with 2019, 2017 and 2021 were only $10 behind on the average prices. For the stronger years, most averages fell in the $520-$639 range.

South Island sales have also begun and Temuka kicked off with Friesian bulls. Throughput was down 300-head on last year and at an average weight of 115kg, the average price improved $75 to calculate out at $430.

and most of the lower end of the price ranges were towards the end of the dairy-beef weaner fair seasons.

Proudly sponsored by

HEADS DOWN: Temuka held its first dairy-beef calf sale recently and offered up 1700 Friesian bulls. That tally was down by 300-head on the previous year.

Weekly saleyards

Store lamb trading has dropped to minimum levels at saleyards. The drop in volume is reflective of the very cautious approach buyers are taking to the lamb market at present and seller response to that caution. Good feed levels have created a situation where farmers can hold onto lambs and, since prices are below par, many are opting to hold off selling in the lead-up to Christmas.

Kaikohe | November 26 | 650 cattle

Mixed-age Angus cows & calves 1010

2-year beef-cross steers 3.00-3.10

2-year beef-cross bulls 2.90-3.00

2-year beef-cross heifers 2.80-2.90

Yearling Angus steers 3.39

Yearling beef heifers 2.70-3.00

Weaner Friesian bulls 520

Wellsford | December 5 | 405 cattle

$/kg or $/hd

2-year Hereford-Friesian steers, 427-457kg 3.25-3.34

2-year Angus steers, 464-489kg 3.17-3.34

Yearling Hereford-Friesian steers, 375-391kg 3.24-3.32

Yearling Hereford-Friesian steers, 238-300kg 3.40-3.49

Yearling Friesian bulls, 287-391kg 3.06-3.15

Yearling Hereford-Dairy heifers, 291-315kg 3.04-3.21

Pukekohe | December 3 $/kg or $/hd

Store steers 1480-1650

Aut-born yearling steers 1100-1340

Aut-born yearling heifers 970-1095

Yearling steers 900-930

Weaner steers & heifers 400-660

Prime steers & heifers 2.90-3.10

Boner cows 1.99-2.83

Store ewes 57-130

Store ram hoggets 150-220

Store hoggets 128-138

Store lambs 60-128

Prime lambs 129-144

Tuakau | December 1 | 575 cattle $/kg or $/hd

2-year dairy-beef steers, 540-650kg 3.10-3.21

2-year dairy-beef steers, 400-480kg 3.28-3.52

Yearling beef-cross & dairy-beef steers, 314-360kg 3.20-3.45

Yearling dairy-beef heifers, 250-320kg 3.36-3.44

Tuakau | December 2 | 4800 sheep

$/kg or $/hd

Store lambs, good-medium 85-130

Store lambs, small 50-85

Prime hoggets 140-180

Tuakau | December 5 | 1450 sheep

$/kg or $/hd

Store lambs, all 70-119

Prime ewes, all 70-149

Prime hoggets, all 138-171

Rangiuru | December 6 | 517 cattle

$/kg or $/hd

Yearling Hereford-Friesian steers, 250-413kg 3.03-3.27

Yearling Angus heifers, 310-341kg 3.31-3.34

Yearling Hereford-Friesian heifers, 302-385kg 2.75-2.99

Prime dairy-beef steers, 516-632kg 2.90-3.03

Prime Angus-Friesian heifers, 462-472kg 3.03-3.05

Frankton | December 6 | 621 cattle

$/kg or $/hd

2-year Hereford-Friesian heifers, 353-463kg 2.90-3.00

Aut-born yearling Hereford bulls, 478-483kg 3.03-3.15

Yearling dairy-beef steers, 319-371kg 3.21-3.29

Yearling Hereford-Friesian steers, 322kg, one line 3.54

Yearling dairy-beef steers, second cuts, 297-356kg 2.93-3.12

Yearling Hereford-Friesian heifers, 290-310kg 3.10-3.21

Yearling Angus-Friesian heifers, 270-353kg 2.85-2.89

Yearling beef-cross bulls, 331-342kg 3.29-3.30

Prime dairy-beef steers, 665kg average 3.11-3.13

Prime Hereford-Friesian heifers, 425-510kg 2.99-3.02

Frankton | December 7 | 707 cattle

$/kg or $/hd

Aut-born yearling Belgian Blue-Friesian steers, 340-365kg 3.08-3.18

Yearling South Devon steers, 327-336kg 3.64-3.81

Yearling South Devon steers, 295-315kg 3.27-3.39

Yearling South Devon heifers, 278-333kg 3.17-3.36

Aut-born weaner Charolais-Friesian steers & heifers, 179-213kg 750-800

Prime Hereford bulls, 555-741kg 2.96-3.00

Prime dairy-beef steers & heifers, 500-796kg 2.80-3.00

Te Kuiti | December 2 | 317 cattle

$/kg or $/hd

Mixed-age Simmental cows & calves, 500-630kg 1500-1750

2-year Hereford-Friesian steers, 420-617kg 3.16-3.28

Aut-born yearling Hereford-Friesian steers, 451-471kg 3.05-3.17

Yearling traditional steers, 234-405kg 3.33-3.67

Yearling traditional heifers, 222-241kg 3.12-3.18

Matawhero | December 2 | 1136 sheep

$/kg or $/hd

Store ram lambs, good 78-111

Store ewe lambs, medium 78-86

Prime ewes, all 104-122

Matawhero | December 6 | 615 cattle

$/kg or $/hd

2-year Charolais steers, 435kg, one line 3.69

2-year Angus steers, 355kg, one line 3.77

Yearling traditional steers, 300-352kg 3.86-3.93

Yearling exotic heifers, 321-370kg 3.30-3.41

Yearling Angus & Angus-Hereford heifers, 266-291kg 3.30-3.33

Taranaki

| December 7 | 593 cattle

$/kg or $/hd

2-year dairy-beef steers, 540-564kg 3.11-3.16

2-year Hereford-Friesian heifers, 401-511kg 3.00-3.01

Yearling dairy-beef steers, 358-371kg 3.37-3.41

Yearling Hereford-Friesian heifers, 261-285kg 2.95-3.03

Prime steers, 568-645kg 3.15-3.17

Stortford Lodge | December 5 | 2412 sheep

$/kg or $/hd

Prime ewes, very good to very heavy 120-136

Prime ewes, light to medium 60-103

Prime 2-4 tooth ewes, medium to good 100-111

Prime hoggets, heavy 125-140

Prime lambs, good to heavy 130-156

2-year Friesian bulls, 533-556kg 3.17-3.19

Yearling traditional steers, Chatham Islands, 260-306kg 3.53-3.61

Yearling traditional steers, 235-247kg 3.93-4.05

Yearling Friesian bulls, 364-355kg 3.02-3.07

Yearling Friesian bulls, 291-320kg 3.26-3.36

Yearling Angus & Angus-Hereford heifers, 269-331kg 3.64-3.72

Yearling traditional heifers, 257-325kg 3.26-3.45

Store whiteface cryptorchid lambs, good 93-107

Store mixed-sex lambs, medium 76-84

Dannevirke | December 1 | 461 sheep $/kg or $/hd

Store ewes, all 51-156 Store male lambs, all 70-162 Store ewe lambs, all 62-156 Store mixed-sex lambs, average 100

Yearling Friesian bulls, 266-396kg

3.08-3.32

Yearling Hereford-Friesian heifers, 270-376kg 3.20-3.40

Store blackface mixed-sex lambs, good 103-109

Store blackface mixed-sex lambs, medium 77-84

Store whiteface male lambs, good 103

Store whiteface male lambs, light 52-77

Feilding | December 6 | 11 cattle, 3577 sheep

$/kg or $/hd

Prime mixed-sex lambs, very heavy 176

Prime mixed-sex lambs, heavy 140-160

Prime mixed-sex lambs, medium-good 116-118

Prime ewes, very good 126-129

Prime ewes, good 99-120

Prime ewes, medium-good 70-96

Prime ewes, medium 25-41

Rongotea | December 6 | 300 cattle

$/kg or $/hd

2-year Angus-cross steers, 435-508kg 2.53-2.90

2-year Hereford-Friesian steers, 393-540kg 2.57-2.90

2-year traditional bulls, 630-680kg 3.00-3.17

2-year Hereford-Friesian heifers, 394-485kg 2.26-2.77

Yearling Hereford-Friesian steers, 240-266kg 3.89-4.08

Yearling beef-cross steers, 260-290kg 2.50-2.55

Yearling Friesian bulls, 270-298kg 2.59-2.86

Yearling Hereford-Friesian heifers, 165-315kg 2.29-3.29

Yearling Angus-cross heifers, 265-280kg 2.64-2.79

Weaner Friesian bulls, 114-134kg 450-590

Weaner Hereford-Friesian heifers, 97-175kg 400-550

Boner dairy cows, 413-578kg 1.62-1.82

Coalgate | December 1 | 392 cattle, 2198 sheep $/kg or $/hd

Weaner Friesian bulls, 119-124kg 460-475

Prime Hereford-Friesian steers, 536-683kg 2.98-3.10

Prime Hereford-Friesian heifers, 490-615kg 2.80-2.94

Store Southdown-cross mixed-sex lambs, most 80-96

Prime ewes, all 60-150

Prime lambs, most 120-173

Canterbury Park | December 6 | 289 cattle, 2427 sheep $/kg or $/hd

Prime traditional steers, 485-548kg 2.89-3.05

Prime dairy-beef steers, 455-735kg 2.84-3.10

Prime Hereford-Friesian heifers, 381-615kg 2.81-2.91

2-year Angus steers, 516-619kg 3.31-3.37

2-year Hereford-Friesian steers, 448-541kg 3.28-3.34

2-year Hereford-Friesian heifers, 452-546kg 2.98-3.21

Yearling Angus & Hereford steers, 340-415kg 3.55-3.80

Yearling dairy-beef steers, 329-434kg 3.12-3.34

Store whiteface male lambs, good 97-106

Store blackface mixed-sex lambs, good 100-108

Prime ewes, medium to good 79-102

Prime lambs, medium to good 118-135

Temuka

2-year traditional steers, 364-450kg 3.08-3.24

2-year Hereford bulls, 360-428kg 3.01-3.14

2-year traditional heifers, 370-442kg 2.97-3.03

Yearling Hereford-Friesian steers, 238-342kg 2.94-3.07

Yearling Hereford-Friesian heifers, 313-334kg 2.87-2.93

Temuka

Prime Hereford-Friesian steers, 449-665kg 2.95-3.07

Prime Hereford-Friesian heifers, 417-618kg 2.88-3.05

Boner Friesian cows, 579-620kg 1.80-2.00

Hogget ewes & lambs, all 50-81

Store mixed-sex lambs, all 98-148

Prime ewes, good-heavy 105-148

Prime mixed-sex lambs, medium 120-150

Balclutha

Prime ewes, all 60-120

Prime hoggets, most 102-140

Prime lambs, all 114-124

Charlton

Prime

Prime cows, 450-538kg 1.70-1.90

Store lambs, all 80-105

Prime ewes, all 36-115

AgriHQ market trends

Beef

North Island P2 steer (300kg) 6.20 6.35

North Island M2 bull (300kg) 6.00 6.40

North Island M cow (200kg) 4.50 4.90

South Island P2 steer (300kg) 5.95 6.10

South Island M2 bull (300kg) 5.75 6.10

South Island M cow (200kg) 4.40 4.75 Export markets (NZ$/kg) US imported 95CL bull 7.98 10.25 US domestic 90CL cow 8.39 9.04

Sheep Meat

Slaughter

North Island lamb (18kg) 7.90 9.30

North Island mutton (25kg) 4.35 6.50

South Island lamb (18kg) 7.95 9.00

Island mutton (25kg)

Venison

Fertiliser

NZX market trends

Listed

Company

ArborGen Holdings Limited 0.22 0.27 0.199

The a2 Milk Company Limited 6.79 6.84 4.2

Comvita Limited 3.21 3.78 2.98

Delegat Group Limited 9.92 14.45 9.83

Fonterra Shareholders' Fund (NS) 3 3.78 2.75

Foley Wines Limited 1.36 1.57 1.3

Greenfern Industries Limited 0.089 0.25 0.069

Livestock Improvement Corporation Ltd (NS) 1.35 1.73 1.3

Marlborough Wine Estates Group Limited 0.164 0.26 0.155

NZ King Salmon Investments Limited 0.215 1.38 0.187

PGG Wrightson Limited 4.23 5.76 3.9

Rua Bioscience Limited 0.23 0.53 0.215

Sanford Limited (NS) 4.4 5.07 4.03

Scales Corporation Limited 4.65 5.59 4.07

Seeka Limited 3.23 5.36 3.22

Synlait Milk Limited (NS) 3.57 3.58 2.76

T&G Global Limited 2.36 3.01 2.36

S&P/NZX

Weather

Rain backs off, and so does the heat

SOME cooler weather lately has meant the collective mean temperatures for New Zealand have come back a little to sit more around average for the time of year after what had been some warm weather in the past month or so.

Rainfall has backed off a bit also, but western regions still picked up their fair share. Eastern regions in terms of soil moisture compared to the historical average are sitting on average but inland Canterbury about the foothills and Southland will have had more rain than normal.

Last week’s weather played ball in the first half compared to our outlook but it changed tack a little into the second half. A low brought some rain to the upper North Island from Wednesday, with cool temperatures in the east with cloudy skies. Thursday and Friday saw rain for western regions.

The weekend did see a large low in the Tasman push a few fronts in, but once again wetter in the west.

A dry start to this week, with Monday seeing a high pressure system covering the country. A front off to the northeast pushes back into the North Island on Tuesday bringing showers – perhaps the odd heavy fall with thunder too – and an increase in humidity.

Meanwhile it should be dry further south.

ruralweather.co.nz

Soil moisture Temperature

Deficit 9am 06/12/2022

Some instability again for the North Island on Wednesday means further isolated heavy showers but many areas may miss out. Further south expect a few showers for Buller and Fiordland, dry elsewhere. Our high from Monday is losing control

Last 15 days rain

Observed rainfall 9am 21/11/2022 to 9am 06/12/2022

and being shunted out to the east by Thursday. This means showers for the West Coast then isolated showers may spring up for eastern regions in the afternoon.

The North Island is drier now but showers could develop in the southwest

Observed daily average bright sunshine 9am 21/11/2022 to 9am 06/12/2022

(inland Taranaki through to the ranges of Wellington). Isolated showers again on Friday and Saturday, then on Sunday a more defined northwest airflow moves in with dry weather for most but rain for the West Coast.

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