Farmers Weekly NZ January 13 2020 by AgriHQ

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Vol 19 No 1, January 13, 2020

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Meat blip no crisis Nigel Stirling

nigel.g.stirling@gmail.com

HE sudden bout of weakness in the Chinese market at the end of last year was to be expected after a rapid run-up in prices in the previous six months, meat exporters say. Exporters reacted swiftly to a 15-20% drop across all sheep meat and beef categories in the two weeks before Christmas with cuts to schedule prices and the revaluation lower of inventories. The sudden drop left Chinese importers scrambling to renegotiate contracts while some refused to pick containers up from the wharves. Anzco sales and marketing general manager Rick Walker expected prices to dip after the last ship carrying meat for consumption in Chinese New Year sailed in the middle of December. About the same time, however, Chinese authorities began

to release 190,000 tonnes of pork from state reserves while encouraging increases in local production, all in an effort to rein in sky-high prices ahead of the holiday celebrations later this month. Pork prices, after more than doubling in the year to the end of November, helping to push Chinese consumer inflation to a seven-year high, fell by 16% in the second half of December. The fall flowed through to imported sheep meat and beef prices, Walker said. Beef prices came under the most pressure after reaching very high levels in the second half of last year. “It would be foolish of anybody to expect the massive rises we saw over the last two to three months to be sustainable. “We think there will be a softening and a new plateau post Chinese New Year. “And that plateau is still going to be a very solid price when compared to historically.” Silver Fern Farms chief executive Simon Limmer said

Lamb cuts sold into China (NZ$/kg)

15 10 5

0 Jan-16

Jan-17

Flaps

Jan-18

Jan-19

Forequarters

Jan-20 Source: AgriHQ

while prices in China for sheep meat have slipped back to levels last seen six months ago they were historically high prices. “Six months ago we were celebrating those prices because across the five-year trend they were pretty strong still and then we just got into the stratosphere and obviously that has been corrected.”

It would be foolish of anybody to expect the massive rises we saw over the last two to three months to be sustainable. Rick Walker Anzco Limmer said the chronic pork shortage caused by the devastation of China’s pig population by African swine fever would continue to provide a floor under sheep meat and beef prices for the foreseeable future as it had done before the recent bout of weakness. “My assumption would be that the underlying demand in China remains strong and while they are releasing more pork inventory into the market I am not sure that problem is resolved. “They have a longer-term scenario that they are going to have to deal with.” China’s response so far has been to throw open the doors to imports.

STILL GOOD: Prices for sheep meat from ewes like these sold at Matawhero on Wednesday might have come back but are still at historically high levels, Silver Fern Farms chief executive Simon Limmer says.

In the past year it has granted new access to 340 meat processing plants from Europe to South America. The increased purchases of American agricultural products China agreed to as part of its recent tentative trade deal with United States President Donald Trump is bound to include

pork and beef. Walker said that should not worry NZ farmers. “All that means there will be more people competing for the opportunity that exists in China but our view is that the opportunity remains significant and there will be enough room for everyone.”

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NEWS

WEATHER OVERVIEW

8 More of the same

High pressure is growing across New Zealand but a giant storm in the Southern Ocean the weekend before last once again brushed NZ, It was a decent way south so apart from some brief rain or showers and a brief surge of cooler air in the lower South Island it didn’t do much. So, if you’re in Southland, Otago or the West Coast and similar regions like the southwest corner of the North Island and you’re tired of the recent weather pattern you will see a shift to more summer-like weather this week. Long range we have a lot of high pressure but the tropics north of NZ are waking up too and are now worth monitoring.

please for 2020

Steady growth in export earnings from the main primary industries has been forecast by the Ministry for Primary Industries for the June 2020 financial year.

NZX PASTURE GROWTH INDEX – Next 15 days

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Wind

Rain Drier weather dominates for the next week or so with below-normal rainfall expected in most regions. There might be some heavy afternoon downpours developing inland as the week progresses.

Highlights/ Extremes

Temperature

17 Sticky wicket for honey producers Honey producers face a season of lean returns as prices plunge to well below break-even, leaving some having to decide if this year’s crop is even worth harvesting.

A cooler southwest flow kicks in early this week but then high pressure rolls in with light winds and sea breezes for most. Low pressure in the tropics, possibly a cyclone, might help encourage an eastern flow over northern NZ.

Temperatures are on the rise this week with high pressure rolling in. If an easterly flow does kick in over northern NZ it will bring cooler weather to the eastern coastline but warmer weather to the west, for a change.

A drier-than-normal trend continues around parts of NZ, in particular the upper North Island. It appears we’re finally about to get an uptick in high pressure after a few weeks of unsettled weather.

Case puts big bill on industry �� 5 Rural fireman despairs at impact �� 7

14-DAY OUTLOOK

Cooler weather and lack of rainfall might not be helping to make for good pasture growth, however, rain at the end of December did give an injection of life into pasture growth levels, which should linger into early January. However, we again entering a drier phase for most regions. Even the West Coast, which has had a very wet run recently, has more dry days that wet days. Temperatures should also lift up further this week. So it’s steady as she goes for now.

SOIL MOISTURE INDEX – 09/01/2020

Students push rural health work �� 10

Newsmaker ��22 New Thinking ��23 Opinion ��24 World ��28

REGULARS Real Estate ��29-31 Employment ��32 Classifieds ��33-34 Livestock ��34-35 Markets ��36-40 GlobalHQ is a farming family owned business that donates 1% of all advertising revenue in Farmers Weekly and Dairy Farmer to farmer health and well-being initiatives. Thank you for your prompt payment.

Source: WeatherWatch.co.nz

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News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Banks cut back on rural staff Nigel Stirling nigel.g.stirling@gmail.com THE Australian-owned banks are slimming down their rural lending divisions as doubt continues to swirl around their commitment to New Zealand’s $63 billion rural lending market. The country’s third largest rural lender, ASB, is restructuring its rural lending team. As many as 15 of its rural loan managers out of a total of 60-70 are understood to be for the chop. Another 15-20 support staff also face redundancy or redeployment. Meanwhile, the other Aussie banks are not replacing rural managers when they leave. An ASB spokeswoman said the bank has been lending to farmers for 25 years, remains committed to the NZ market and continues to lend to new and existing customers. “At the same time our customers are changing and in response to this we need to change as well to ensure we keep delivering for them. “As a result we have been making some adjustments to our business model and to some of the roles in our rural team.” The final number of redundancies has not yet been settled. She denied a connection with confirmation of new capital rules by the Reserve Bank last month. Over the next six years the trading banks will need to find $20b to double the amount of capital they hold to help withstand a onein-200 economic shock. Australian banks are

under even more pressure with their own regulator in August announcing restrictions on the capital they can pump into their NZ subsidiaries to meet the new requirements. One former rural banker said headcounts are being reduced to lessen the impact on bank profits of the new rules and ahead of an expected tightening in credit. Capital-hungry rural lending is seen as particularly vulnerable to a credit squeeze. “They have basically realised that in a market where growth isn’t really a strategy they are terribly excited about executing they are overleveraged,” he said. Latest Reserve Bank figures show lending to the rural sector is falling. After peaking at $63.9b in July agricultural lending has fallen every month since to $63.4b in October before recovering slightly in November to $63.5b. Annual lending growth to the end of November was the lowest since 2012. Most of the banks have so far been able to hold off on pulling the trigger on redundancies by not replacing employees as they leave. That is being made easier as increasing numbers are opting to take early retirement or other jobs rather than stick around for the unpleasant task of getting tough with borrowers. “Some of them are just quitting because they have had enough,” another former banker said. “A lot of them have gone to run farms or gone to

work for former clients.” Some have jumped ship to Rabobank, which is hiring rather than firing rural managers. It is understood the BNZ has lost at least one major account manager in the South Island to the Dutchowned lender in the past few months.

We have been making some adjustments to our business model and to some of the roles in our rural team. ASB Rabobank is the fourthlargest rural lender behind the ANZ, BNZ and ASB with $10.6b of loans. A spokesman said it has

hired a small number of new bankers to support lending growth. “It is our intention to further expand our team over coming years to support this growth.” Also unknown is how many former bankers are working for foreign investment funds now circling the rural debt market. Merricks Capital last month launched its NZ business with the $140m refinancing of bank debt owed by South Island dairy farming conglomerate the Van Leeuwen Group. The Sydney-based fund manager expects up to $10b of farm loans will be shed by the trading banks over the next five years as a result of the new capital rules. It is targeting up to $2b of those loans, which, it said, will be managed by local employees and its own staff flying in from Australia.

Property sale a win-win SPECIALIST carbon forestry partnership Drylandcarbon has bought its first property. The firm, set up last March, aims to invest in forestry to offset emissions for its four investors: Air New Zealand, Contact Energy, Genesis Energy and Z Energy. Just before Christmas it entered into a contract to buy a block of marginal land near Wairoa, which, it says, is a win-win because it demonstrates a constructive approach to carbon farming, retains pastoral grazing land and preserves the local rural community. Executive director Ant Beverley said Te Puna Station is a 1600 hectare property which, for the most part, is steep, erosion-prone and

economically marginal land on which permanent forestry is perfectly suited to deliver significant environmental benefits. “Our plan for this property takes care to only plant exotic species on those areas of the property that are suitable and to retire the balance of the land to regenerate for longer-term indigenous forest restoration. “During negotiations to purchase the property it also became clear that there was an opportunity for Drylandcarbon to retain a viable area of pastoral land for farming under a long-term lease by the current farm manager.” That avoids the risk of the manager and his family being displaced by the sale.

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News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Rural recognition lacking Colin Williscroft colin.williscroft@globalhq.co.nz AGRICULTURE barely rated a mention in the New Year Honours, with only one farmer recognised. Waikato dairy farmer Tony Wilding was made an Officer of the New Zealand Order of Merit for services to the dairy industry and the community. Wilding was a director of NZ Dairy Group for 14 years and of the NZ Dairy Board for six years. He played a key role in the establishment of Fonterra and was a director of the Dairy Research Institute. He is chairman of the Federated Farmers Sharemilker Farm Owners Group, actively encouraging farmers to support their sharemilkers through difficult times and providing mediation in sharemilking disputes. Chairman of the Agricultural Industry Training Organisation for nine years, Wilding has mentored young people in the dairy sector and promoted agricultural education. Also recognised for services to the dairy industry, along with services to analytical chemistry, was Harvey Indyk, who was made an Officer of the NZ Order of Merit. During his career with the NZ Co-operative Dairy Company, NZMP, and Fonterra, Indyk developed, applied and validated a wide range of analytical tools that have supported the growth of infant formula manufacturing and vitamin supplemented milk products within the NZ dairy industry. He created a number of international standard methods used to assess the safety and nutritional quality of dairy products. Recognised for services to

food technology and the food industry was Mike Matthews, who was made a Companion of the NZ Order of Merit. A graduate of Massey University, Matthews earned his PhD in the United States, conducting research in the use of membrane filtration to extract protein, a technology that today contributes $1 billion a year to the NZ dairy industry. At the Dairy Research Institute he contributed to the development of proteinenriched whey products that are now in strong demand in markets such as Japan. His career has included management roles in product development, engineering and marketing, culminating as chief executive of Tatua Co-operative Dairy Company from 1995 to 2008. Matthews was a member of the Prime Minister’s Science and Innovation Advisory Council, the Fast Forward board, and the board of Food Industry Enabling Technologies. As a consultant, he assisted the formation of the Food Innovation Network and advised several projects funded by the Primary Growth Partnership. David Wright was made a Member of the NZ Order of Merit for services to biodynamic agriculture. Wright, who was secretary of the Bio Dynamic Farming and Gardening Association (Biodynamics NZ) for 27 years, also served on the board of BioGro NZ between 1995 and 2015 and was a board member of Organics Aotearoa NZ from its founding in 2005 until 2011.

HONOURED: Tony Wilding was made an Officer of the NZ Order of Merit for services to the dairy industry. He was a member of the team that developed the NZ organic production minimum standard for defining the term “organic” in the early 2000s. Paul Wright was made a Member of the New Zealand Order of Merit for services to the forestry industry and Fire and Emergency NZ. Wright has worked in the forestry industry for more than 40 years in a variety of senior management and operational roles throughout NZ, Australia and Fiji, including as principal of the Fiji Forestry Training Centre. He was principal rural fire officer of Pumicelands Rural Fire District from 2007 to 2017 and was chief executive from 2015 to 2017. Wright has been principal rural fire officer for FENZ since 2017.

KNOW someone you think deserves to be recognised for their efforts on behalf of NZ farmers? Why not let us know. Email their name and why you think they deserve to be acknowledged to farmers.weekly@globalhq.co.nz

Lamb crop falls NEW Zealand’s average lambing percentage fell by 2.4% last spring, the Beef + Lamb 2019 lamb crop report says. It estimates there were about 552,000 fewer lambs tailed in 2019. Chief economist Andrew Burtt said while there was a record high lambing percentage in spring 2018 it was always going to be difficult to match after conditions were favourable overall that year. Last year some regional declines were a little surprising and a reminder of the natural systems farmers have to work with. There were strong regional variations and lamb growth rates were better in the North Island than in the South Island. “The South Island and Otago in particular really struggled in 2019 due to drier conditions leading to lower feed availability,” Burtt said. Otago had it’s lowest result since

2010 with a decrease of 5.4 points from 2018 to 116.6%, continuing the decline since the 142.3% in 2017. “When considering these numbers we need to keep in mind that not all regions experience the same conditions for weather and pasture growth and other challenges occur. We shouldn’t expect regions to perform exactly the same,” he said. The lower lambing percentage is expected to affect the number of lambs processed for export in the first quarter of 2019-20 season but it is expected to see the number of adult sheep processed increase by 9.2%. The number of lambs from ewe hoggets also fell with fewer ewe hoggets being mated. The overall tonnage of lamb produced is expected to decrease 4.4% from a combination of fewer lambs and a slightly lower average carcase weight.

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News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Case puts big bill on industry Neal Wallace neal.wallace@globalhq.co.nz MEAT companies face potentially multi-million-dollar costs correcting six years of not paying workers for the time taken to put on and remove clothing required for safety and hygiene. In late 2018 the Employment Court found in favour of a Meat Worker’s Union claim the 20 to 30 minutes a day it takes workers to don then doff safety and hygiene gear at the start and end of work and during meal and rest breaks, known as donning and doffing, is work-related and should be a paid activity. An application by meat companies for the Court of Appeal to hear the case was rejected. Meat Workers Union national secretary Graham Cooke says negotiations have started with employers to address the underpayment but some are still arguing they are not liable. “There is absolutely no question. Every meat company in NZ has a liability for donning and doffing,” he says. Meat workers on piece or hourly rates qualify for the pay to be backdated six years but the union, the Meat Industry Association nor meat companies will comment on the cost to individual firms or the industry. A conservative calculation based on paying 30 minutes extra a day for a six-month season equates to more than $1000 gross a season per worker. NZ’s largest manufacturing sector, the meat industry employs 25,000 people but only those on piece rates or hourly rates will receive the back pay. Meat Industry Association chief executive Tim Ritchie says the extent of liability for each individual company is dependent on terms in employment contracts and the outcome of negotiations with the union. He declined to speculate on what the figure will be. Ritchie says companies must adhere to standards for hygiene and health and safety not only

MONEY: Workers at meat plants throughout the country are to get six years’ backpay for the time it takes to put on and remove protective and hygiene clothing and equipment.

for product integrity but also the wellbeing of staff. Meat companies declined to comment saying they are either in discussions with the union or are still to determine their liability. However, it is known some companies are including a contingency in their annual accounts to cover the liability. Cooke also declined to comment on the size of payment, saying settlements to date were confidential but the degree of liability depended on employment contract details and the movement of staff over the last six years. The time it takes staff to prepare for work has been increasing and some are struggling to find time to have morning or afternoon tea before having to redress for work, he said. “It is an endless process and workers are expected to do that in their own time.” Cooke acknowledged

companies are having difficulty reconfiguring operations to accommodate time for donning and doffing. Some are providing longer lunch breaks while some smaller companies are extending the time spent on the chain to eight hours instead of previous 7.5 hours. The issue stems from a 2018 case taken to the Employment Court by the union against Ovation in which it sought a judgement on two issues. The first was the payment of rest breaks for piece-rate workers employed at Ovation’s three processing plants. The second was whether the donning and doffing is work for the purposes of the Minimum Wage Act. Te Kuiti Meat Processors was the second plaintiff in the case. Both companies have collective employment agreements with the union but negotiations during

There is absolutely no question. Every meat company in NZ has a liability for donning and doffing. Graham Cooke Meat Workers Union bargaining for a new agreement broke down over the donning and doffing issue. “The plaintiffs contended that piece rates incorporated payment for rest breaks. The union disagreed,” Judge Bruce Corkill said in his December 2018 decision. He found contracts with piece workers at any of the plaintiff’s plants did not provide paid rest breaks. He acknowledged meat

processors must meet stringent regulations and standards under the Animal Products and Health and Safety Acts but rejected the plaintiffs’ argument that if the time taken to walk to and from their place of work was subtracted, time spent donning and doffing amounted to preparatory and concluding activities occupying micro periods of the day. Evidence was presented that staff at plants in Feilding, Gisborne and Te Kuiti spent 20 to 32 minutes a day donning and doffing and a further 12 minutes walking to and from their workstations. “The elaborate activities which are required to be undertaken at all relevant times impose significant constraints on the freedom of the workers involved,” Judge Corkill said. He found donning and doffing is work for which employees were not being paid.

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News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Rural fireman despairs at impact Richard Rennie richard.rennie@globalhq.co.nz KIWI rural fire officer Paul Shaw doubts he will ever see anything as devastating as the lastest Australian fires. The former farmer and volunteer firefighter trained while in the navy before returning to the family farm near Te Akau in Waikato. He ended up being the go-to guy when the district needed a fire put out. It was through his efforts that by the mid nineties the isolated rural community had its own volunteer fire brigade. Today he lives at Matarangi on the Coromandel Peninsula working as Waikato principal rural fire officer following the merger of rural and urban fire services. He is also one of an elite few in New Zealand with the experience and skills to operate as aerial attack co-ordinators. Using a command aircraft they orchestrate the dangerous, shifty work of directing aerial water bombing of fires. Shaw has also experienced first-hand what it is like to fight the Australian fires but what he is seeing this week eclipses even his own experiences there.

He was posted to Tasmania last January to help oversee the air operations controlling fires, only to be home for 24 hours before having to head south to coordinate the devastating Tasman fires. Come mid-September he was headed to northern Queensland to experience what would be only a light lick of the flames now raging. “Things really started to kick off when we were managing operations over 270,000ha of fire in New South Wales where we were redeployed to.” With more than 50 aircraft including Iroquois helicopters and a giant water-bombing plane capable of dropping 6000 litres at their disposal the men were in control of a considerable air force to suppress the flames. However, looking at the situation now Shaw doubts any number of aircraft can do much to stymie the spread of flames, simply because the area burning is so big. Fire intensity is measured in kilowatts a metre, with typical fires at 4000-8000kw capable of being controlled by fire retardant and careful water bombing backed up with ground hosing. “But the fires we are seeing over there now the columns

SMOKING: Waikato principal rural fire officer Paul Shaw believes there could be even worse to come from Australian fires.

10-20m high, they are 50,000kw to 80,000kw a metre and more than aircraft can control. That is probably hard for the public to understand when watching them but they can’t be stopped easily.” Commanders like Shaw end up being tasked with casting aircraft water along the flanks of the fire where heat intensity is lower. “We can try to draw a line in the sand and try to stop the fire or try to redirect it. Our job a lot of the

time is dealing not with where it is but controlling where it may end up.” When Shaw came home in late September the fires were just as intense as they are now but their limited area made them more controllable. “My prediction is that they are only going to get worse. The weather conditions are not looking good.” Flying and commanding from

the relative safety of an aircraft above the fires Shaw appreciates the risks his counterparts face on the ground, similar to troops in the trenches during World War I slogging it out while newly minted pilots flew above the carnage unfolding below. “There are times you can be standing in the wrong place at the wrong time. You have a wind change and the flank of that fire that is four to five kilometres long swings 90 degrees. Suddenly that’s coming right at you.” He feels for rural Australians who have suffered three years of drought and risk losing their livelihoods in these fires. At home he is warily eyeing the summer’s high winds and low rainfall around CoromandelWaikato, having already overseen a major fire near Colville. “The Coromandel is high risk. You have what we call the wildland-urban interface. It is a case of not if but when we get a bad one and there is huge risk for loss of life. The area tends to have one-lane gravel roads in and out with limited ability to escape.” NZ has 179 rural firefighters in Australia now. Shaw said subject to a medical check he could return but it will depend on how the fire season here shapes up.

Kiwi break offered for weary Aussie farmers Richard Rennie richard.rennie@globalhq.co.nz THE men who organised a Facebook campaign to give embattled Australian farmers a break in New Zealand from fire and drought stress are starting to wrestle with the logistics of their popular gesture. Waipawa farmer Mark Warren and Auckland events organiser Nathan Addis launched their campaign in the new year and

within four days had more than 5000 followers with 800 offers of accommodation from the rural community. “I think we have broken the Facebook algorithms getting the rapid support we did with no use of advertising to do it,” Addis said. After launching the Facebook page 20 offers of holiday accommodation came in overnight and extend across almost every corner of the country.

But Addis said logistically there will be challenges ahead once the offers are taken up, given the distances of some places from international airports both here and in Australia. Addis said the offers included all manner of accomodation, including a whole motel in the South Island and a high country lodge capable of sleeping 30. The campaign came out of a conversation between the two

men on what they could do to help their Tasman neighbours and they felt it ticked all boxes. “We do realise it is way too early for Australian farmers to contemplate this yet. “There are some awful times to come for them having to euthanase stock and bury those already dead so we have avoided going out to Australia just yet until things are sorted.” He is optimistic that once corporate businesses restart

for the year there will be some companies with transTasman interests prepared to put some cash into the project to aid with transfers and airfares. The men have also set up at GiveALittle page for donations to the project. The project can be found on Facebook under NZ farmers offer free accommodation to Aussie farmers from bush fire zones.

News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

More of the same please for 2020 Hugh Stringleman hugh.stringleman@globalhq.co.nz STEADY growth in export earnings from the main primary industries has been forecast by the Ministry for Primary Industries for the June 2020 financial year. Its economics intelligence unit predicted in the Situation and Outlook for Primary Industries (SOPI) for the December 2019 quarter the sector will generate revenue of $47.9 billion, up 3.3% on the previous corresponding period. The traditional mainstays of dairy, meat and wool will contribute $30b, split between dairy at $19.6b and meat and wool $10.4b. “Robust global dairy prices and a weak outlook for the New Zealand dollar are expected to support solid revenue growth in the dairy industry of 8.4%,” the report said. “High international meat prices are a result of African swine fever reducing China’s pork herd and increasing demand for imported protein.” China took 31% of our primary exports, followed by Australia on 10% and the United States on 9%. Horticultural industries are also predicted to have a strong year, led by an 8% increase for kiwifruit at $2.5b, wine at $1.8b and apples at $900 million. However, the SOPI report and

MORE: Rabobank analyst Emma Higgins has increased her farmgate milk price forecast from $7.15 to $7.60.

other commentaries on 2019 were written before the late-December fall in the Global Dairy Trade index of 5% and a series of sharp reductions in beef and lamb price indicators from their historically high levels. The reports said our major primary export commodities ended 2019 at or near their highest levels for the past decade,

led by lamb, beef, fruit and seafood prices. Compared with already good prices in December 2018 last year ended with lamb up 15%, beef up 13%, dairy up 17.5% and fruit up 16%. In NZ dollar terms commodity returns were even better as the NZD ended the year about 4% weaker against the USD.

The ASB commodities index in mid-December was 113.4, up 14.8% over the year. ASB senior rural economist Nathan Penny expects NZ commodity prices to remain healthy throughout 2020. “Leaving aside seasonal patterns we anticipate that meat prices will remain very high for an extended period as the impact of African swine fever is likely to persist over 2020 and potentially into 2021. “Similarly, we also anticipate that fruit and seafood prices are likely to remain near record highs, if not drift a little higher. “Meanwhile, we expect dairy prices will rise over the first half of 2020 as global supply remains very tight.” Penny said the sizeable global protein gap will underpin high beef prices through 2020. Fruit exports are expected to earn $3.4 billion in 2019 after moving through $3b for the first time the year before. In December Rabobank dairy analyst Emma Higgins increased her milk price forecast from $7.15 to $7.60/kg milksolids, citing weak milk production growth in all the seven major producing regions of the world. A combination of environmental constraints on supply and high price resistance on consumption was dampening confidence The MPI economists lifted their

We expect dairy prices will rise over the first half of 2020. Nathan Penny ASB farmgate milk price forecast for this season to $7.25/kg milksolids, compared with $6.28 average across all companies in 2018-19. In the meat and wool industries China’s share of red meat trade has doubled in two years, from 20% in 2017 to 40% in 2019. Lately beef and veal have led the way with revenue predicted to grow by 7% to $3.6b this year. Unfortunately, wool has fallen below $500m for the first time in decades, down 11% this year. “This is due to reduced demand from China because it is exporting fewer clothes and textiles to the US due to trade tensions.” The SOPI report said horticulture revenue will overtake that of forestry, up 5% to $6.4b versus a fall of 13% to $6b. But the forestry outlook has improved since the September SOPI as log prices recovered more quickly than expected from their sharp fall in June and July. Nonetheless, lower log prices accounted for all the $800m reduction in forestry export revenue from 2019 to 2020.

Storage scheme gains community support THE development of a Wairarapa community water storage scheme has been given a significant boost through financial backing from farmers and industrial water users. Late last year Wairarapa Water called on water users to make a contribution to fund

further feasibility work on the Wakamoekau Community Water Storage Scheme, a reservoir in the hills northwest of Masterton with a capacity of up to 19 million cubic metres of water to supply about 28 million cubic metres a year. The support received exceeded

the $160,000 needed. That was in addition to $140,000 from local and regional councils already committed in their annual plans. The financial commitment by the community will release the final $200,000 of $800,000 from the Provincial Growth Fund.

Wairarapa Water chief executive Robyn Wells said the breadth of support is the strongest indication yet the community is behind the scheme. “There are still many more potential beneficiaries to meet with but hitting this goal has allowed us to have the confidence

to have those discussions and to continue to make sure that we are involving and talking to the wider community.” Wells said early indications of interest from water users are also helping to identify where the demand for water is, which will help in the scheme’s design.

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10 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Students push medical careers Colin Williscroft colin.williscroft@globalhq.co.nz NURSING students joined medical students late last year on a tour designed to promote rural health careers to pupils in rural schools. Third-year Wellington nursing students Rachael Rowe, Lagisi Wirangi, Katrin Scott, Laura Winter and Mickey Walker took part in a five-day trip through Wairarapa and Central Hawke’s Bay to Napier and back to encourage country children to consider medical and health careers. It was the first time nursing students took part in the tour, Whitireia Polytech nursing programme manager Leanne Pool said. “It was a fantastic opportunity for our students to promote nursing as a career choice to young people.” Medical students have been touring rural schools for about 10 years to encourage young people to become rural health professionals and Rural General Practice Network rural health careers programme manager Ester Maxim said nursing students

were included in the latest tour to promote rural nursing careers and to strengthen the relationship between the network and Whitireia, which has a range of nurse training courses. “Young people are a lot better at engaging with other young people. They understand the challenges or confusion school students often face in terms of choosing a career so that is why we chose tertiary students to visit the rural schools to encourage the pupils to complete their secondary education and hopefully pursue one of the many rewarding careers in rural health,” she said. “Statistics suggest that the most effective time to talk to kids about their career options is prior to year 10.” Wirangi said “I’ve known that I wanted to be a nurse since I was 14 years old. My grandmother was sick so I spent a lot of time with her in the hospital and in that time I saw first hand how truly important nurses are.” Maxim said the shortage of nurses in rural areas is similar to that of GPs and it is vital to include all professions that are in short

ENCOURAGING: Nursing students Lagisi Wirangi and Rachael Rowe took part in the tour of rural schools to promote careers in rural health.

supply in initiatives such as the rural schools tour. Many nurses, who might have come from rural areas, choose to work in urban areas because that is where they trained, met spouses and bought houses so often they do not go back to their rural home towns. “Luckily, there are a number of training institutions close to rural areas where these young rural people can train and then return as qualified professionals to their

hometowns and whanau. “It is extremely important for them to be trained to serve their communities appropriately – this may be in traditional Maori techniques and protocol, managing those with mental health and wellbeing issues and understanding emergency medicine for those in very remote and hard-to-reach places.” Nurses are increasingly recognised as being the ones who work at the coalface, who know

the people in the community and what is happening in their towns, Maxim said. “Nurses can be trained in a wide variety of disciplines such as maternity, nurse practitioner and geriatric so the potential to grow a very robust and diverse nurse workforce in rural communities is huge.” Two more tours of rural schools to promote careers in rural health are planned for late June and early November this year.

Otago groups start rural health drive Neal Wallace neal.wallace@globalhq.co.nz THREE Otago academic and health organisations are banding together to improve training opportunities for rural health professionals, which could make careers in rural communities more attractive. The agreement will increase professional education and research opportunities for those working in the health sector in rural areas, which, its backers say, should encourage more professionals to work in those communities. Otago University, Otago

Polytechnic and Central Otago Health Services have signed a memorandum on rural health care practice, service, education and research. University health sciences pro-vice-chancellor Professor Paul Brunton said the agreement will extend existing collaboration on clinical placements, rural health research, postgraduate education, vocational training and professional development. A new taskforce of representatives from the three entities will identify areas for future collaboration. “We believe that a lot more health professional education and

research should be undertaken in rural areas and we see this memorandum as a logical step towards that greater goal.” The signatories cover virtually every health discipline. The concept could extend to other rural areas by what they hope will be the creation of a larger virtual health entity that will be connected across New Zealand’s rural health sector. “While this project begins with Otago-based partners the aim is to contribute to the development of capability and capacity within the rural sector nationally as it evolves and develops,” Brunton said. “Several of the programmes

that will be part of this initiative already have national and international rural health connections.” The university’s rural postgraduate director and Central Otago doctor Garry Nixon said by having the support of better training and research, rural practice could become a more popular career choice. “The more contact they have with training and the longer periods spent working with rural health professionals who can be identified as role models and mentors, it will influence career choices.” Nixon said the initiative has

been talked about at a national level but the Otago signatories decided to roll it out earlier in what is effectively a pilot scheme. “It’s going to need a local solution and a big national strategic approach to solve the big health professional employment issues in rural areas.” The move creates for the first time an entity in the university with a sole focus on rural health. Until now rural health has been a part of several medical training schools at the university but the new structure now puts it in the health science department, which sits alongside pharmacy and other health disciplines.

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FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Kiwifruit seeks social licence The term social licence to operate could be discarded as yet another slick marketing phrase but it is the guardrail that will keep New Zealand’s primary sector front and centre of this country’s continuing economic growth. Richard Rennie spoke to Kellogg scholar and Kiwifruit Growers Incorporated communications manager Mike Murphy about his research on social licence and the kiwifruit sector. From a purely quality perspective the kiwifruit sector has done a good job going beyond minimum regulatory standards. Zespri’s global good practice programme achieves that for aspects like spray residues and even more recently for labour standards. But the industry must go even further and typically the carrot approach will work better than the stick. “This includes communicating to growers the values of social licence aspects. For example, if it can be proved that fixed-term contracts create certainty and improve worker productivity through a validated study growers can trust then they will be more willing to endorse that.” Offering up standards above expectations held by communities, for example, putting up shelter belts when they are not compulsory, helps increase a community’s broader appreciation of growers and the industry overall.

Murphy found in some respects the industry has already, perhaps unwittingly, embarked on reinforcing its social licence. “We see Zespri offering growers the opportunity to go overseas to see their product in market and for overseas customers to come here and see where fruit comes from. This is all part of that trustbuilding aspect.” Other industries have encouraged producers to build social licence with premium payments but more research is needed to determine if that would help kiwifruit growers. “Good practice awards are an option too. But, really, we want to encourage those in the middle ground to lift their game, whereas award winners tend to be those already at the top end. Perhaps it is a case of having a most-improved category.” Perhaps the first some in NZ’s primary sector heard about social licence was when it was muttered darkly by dairying leaders about how that industry’s social licence

was being threatened by the likes of dirty dairying perceptions and sometimes controversial working conditions. Murphy says the sensitive areas for kiwifruit still include spray treatments and worker welfare. And managing the message to the broader community can be a tough task. “With worker welfare Kiwifruit Growers operates a reporting system for workers who might feel exploited. The irony is this work might at least initially bring some negative attention, threaten our social licence if you like, but ultimately those poorer employers will be culled out for the longerterm gain.” Murphy agrees trying to get a sector that is at the top of its game now to lift further can be tough. “Things are going well, growers could well say ‘what is the need to do more?’” But because it is not in survival mode now is the time the industry can afford to move to the next level of engagement.

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LICENSED: Mike Murphy’s work cautions the kiwifruit industry about its acceptability to communities

He can see the value in a joint campaign, possibly between Zespri and Kiwifruit Growers, further linking overseas customers and local growers. “This is the ideal time. “It’s the opportunity to set ourselves up long term and it would be great to look back in a few years and see that our industry stepped up its social licence engagement and did it well.”

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TRUST is probably the best descriptor when trying to define social licence to operate, a term that is relatively new to the primary sector, Kellogg scholar and Kiwifruit Growers Incorporated communications manager Mike Murphy says. “In fact, when I started researching I realised this is a very new area of business study but something that, in an environment where we have moved beyond short-term, profit-focused goals, is going to become far more significant in coming years.” Early adopters have been Australian mining companies and aquaculture operations. Murphy has examined how growers can be more involved in promoting the value of kiwifruit in their communities and overseas. The equation goes that if growers help build community and social trust in the industry on all levels their ability to continue to grow and operate in those communities will be strengthened and continue.

News

12 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Farmlands moves focus forward Neal Wallace neal.wallace@globalhq.co.nz NEW Farmlands chairman Rob Hewett wants the farm supplies retailer to shift its focus to meeting the anticipated needs of farmers five years in the future. Given the requirement for farmers to reduce greenhouse gas emissions and address freshwater quality Farmlands needs to help its 70,000 shareholder-owners make those adjustments and that means supplying advice, services and technology they will need in the future.

It looks like we are at peak cow and peak meat. The challenge as an industry is how we create more value when, at the very least, we are maintaining production. Rob Hewett Farmlands “Farmers want a road map and hope and we are moving the company from being very good at providing something farmers needed five years ago to provide things we anticipate farmers will need five years from now.” That could include collecting and processing data then advising and providing solutions for farmers but the focus will always remain on adding value for shareholders inside their farm gate. Last year Hewett replaced Lachie Johnstone who retired after 19 years on the board and was its chairman since 2003. Hewett’s elevation coincided with a change to the board structure with the number of directors reduced from 10 to nine.

It now has three shareholder directors from each island (previously four) and three independents, up from two previously. Hewett says the change reflects the mix of skills needed to run a complex business such as Farmlands and while farmers have strong governance attributes they can lack skills in information technology, supply chain management and retail. The board personal has changed with Hewett, who has been a director for four years, the second longest serving. A key cog in Farmlands’ renewed strategy is the newly installed Braveheart IT system, which replaces five legacy systems variously used by the co-op since the 2012 merger with CRT. Farmlands’ capital structure is sound but will be reviewed to ensure it is sufficiently nimble to allow the board to make the most of opportunities, he said. Meeting new environmental regulations is the greatest challenge facing farming since the economic deregulation of the 1980s and, like then, Hewett believes farmers can and will adapt. “It looks like we are at peak cow and peak meat. The challenge as an industry is how we create more value when, at the very least, we are maintaining production. “That means we have to be traceable, responsive, verifiable and validate our systems to consumers overseas and that means validating our nutrient levels and our carbon emissions. It is a whole lot of measurable data requirements.” Meeting those requirements will be costly and the skill will be to monetise at least some of those costs through extracting premium prices. Consumers are changing and some of the views they have of agricultural production are not applicable to NZ.

LOOK AFTER US: Co-ops are still relevant but farmers have to nurture them, Farmlands new chairman Rob Hewett says.

Earlier last year he was part of a Future Food delegation to Holland where he met a 23-year-old

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for Holland to have an annual meat-free week. Her view was driven by opposition to grain being used to fatten stock for human consumption. It is seen as inefficient, especially on land suited to arable, and the grain should be used for human consumption. So NZ is caught up in that consumer perception about the use of grain as stock feed, revealing an ignorance of our allgrass system. “It is apparent that we have a compelling story about our pasture-based animal production system that needs to be told.” Farmlands has changed in recent years and Hewett says investments such as FarmIQ, in which it is one of four shareholders, are strategic to provide a tool to assist farmers meet the environmental challenges. The decision to quit its livestock business reflected the low barrier to entry and competitiveness in the sector while the recently minted partnership between its real estate arm and Property Brokers reflects the reality another entity could do a better job. “Real estate, it’s the first thing and the last thing a farmer does, but other companies do it better. “We are not afraid to partner with them.” Hewett believes collaboration will become more common and provided it removes costs and adds value, he asks why not? The future for companies like Farmlands is to focus on the areas it is good at. “We don’t have to be good at everything and we can’t be good at everything but we pick the things we excel at and do it and partner in other areas.” The co-operative model for farmer servicing business is still relevant but shareholders need to nurture and look after it, he says.

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FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Dairy resists global protection Tim Fulton timfulton050@gmail.com THE European Union wants New Zealand to give it exclusive rights to 2200 product names including 58 cheese names and styles. The cheeses include parmesan, feta, gruyere, edam and havarti. NZ companies affected by the push for Geographical Indications in EU free-trade talks are understood to include Mainland, Puhoi Valley, Kapiti Cheese and Synlait Milk’s new acquisition, Talbot Forest Cheese group. Barrys Bay in Canterbury, ViaVio in Nelson and Zany Zeus in Lower Hutt also have business on the block. Agreement to the EU demand would block exports of NZ cheeses using the protected names but whether they would also be restricted from sale would depend on the negotiations, EU delegation trade and economic section head Peter Saktor said. “There is no yes or no answer as it very much depends on the negotiations around the rules protecting the GIs. NZ and EU negotiators are yet to have those talks.” The starting point for negotiations was a list of foodstuffs. There is another list for wines and spirits. “Whatever rules are negotiated they will also apply to protection of NZ products in the 500 million consumers market in the EU,” he said. The Dairy Companies Association raised questions or objections on 26 of the proposed GIs, arguing many of the cheese styles are generic, based on widely-used ingredients, recipes and commercial products. Essentially, cheeses like havarti had gone global so trying to shut down branding the product is an international trade barrier, association executive director Kimberly Crewther said. NZ has been producing some of the cheese styles for decades but now finds some of the opportunity is being taken off the table, she said. The proposed GIs in the New Zealand free-trade agreement are part of an EU agenda to extend GI protections beyond Europe through bi-lateral agreements, Crewther said. Cheese exports are worth $2 billion a year to NZ and if cheese was a standalone industry it would be similar to wine and only just behind kiwifruit. “We’ve got a really big concern here about the commercial opportunities. “And it’s not just within the NZ market but it is the EU’s GI agenda globally.” Crewther said China now protects feta after a trade deal with the EU. After substantial investment by western nations in product development and marketing, big Asian markets like China are starting to develop a

taste for cheeses like mozzarella. NZ’s dairy exports to China were worth more $5b in 2018 with total cheese exports to that country valued at more than $340m. Crewther said the EUChina agreement is part of a rapidly growing number of trade agreements the EU has negotiated with third countries such as Japan, Mexico, Vietnam and Singapore. The association submitted its view on all of those negotiations, she said. “Through these agreements the EU is seeking to monopolise a wide range of cheese terms that are in common use globally and produced in significant quantities outside of the EU.” In 2017 the EU registered danbo as a protected term, despite the Danish dairy industry previously accepting danbo is a generic cheese name and a lot of it is produced outside Europe, including in NZ. The EU more recently registered havarti as a protected term for sole use by Denmark in the EU. Again, most of the world’s havarti production is outside Denmark. The EU implicitly recognised havarti as generic through a prior codex standard-setting process and in trade rules created by the World Trade Organisation. Crewther said the association does not object to the principle of a GI framework in free-trade agreements but it objects to the mechanism being used to claw back names that should, by any reasonable measure, be considered to be a generic or common names for those cheeses. Aligning with the framework could allow GI protection to continue to creep into common cheese names, Crewther said. “It’s hugely risky and creates a high level of commercial uncertainty for our industry.” The EU’s view is that GIs offer business a degree of protection,

REBRAND: New Zealand producers will have to find new names for 58 cheeses if the European Union gets its way.

similar to the protection NZ businesses seek through trademarks. “But there’s a natural time limit on how you can have a product out in the market and manufactured in multiple geographies and still claw it back under GI protection.” NZ dairy accepts some GIs are legitimate, like ParmigianoReggiano. “It’s a specific cheese with specific characteristics that is made within a geography. Parmesan … we see that as a generic cheese.” But the EU considers parmesan to be a translation or an evocation of ParmigianoReggiano, which extends protection on the cheese. “We’re saying keep it to the names that are geographically specific.” The Ministry of Foreign Affairs and Trade is considering the dairy industry’s objections as part of its free-trade negotiations. Across the entire free-trade negotiations, the EU is seeking changes to NZ regulations to protect 2200 terms with provision for more to be protected in future, Crewther said.

EU raises awareness for its names claims THE European Union says geographic indications work for Europe and it think they could work for New Zealand, Canterbury University EU policy expert Dr Serena Kelly says. The EU’s NZ delegation contracted Kelly to set up a stand at the NZ Agricultural Show in Christchurch in November. “It’s a public diplomacy initiative,” Kelly said. “Traditional diplomacy is about the top-level discussions and usually it goes on in this vacuum and the general public don’t know about it. “So we were raising awareness about GIs – and that there’s a free-trade agreement being negotiated.” Europe has been using GIs for about 30 years. Starting from nothing NZ would need more resources if it adopts GIs for its own products, she said. “Most of the GIs are alcohol and it’s not really a problem. I

know the NZ wine industry has wanted this for a long time. “Back in the 2000s Australia got recognition and NZ didn’t. Something happened in those negotiations way back then so the wine industry is really keen and it’s the dairy industry who aren’t.” At a global level the EU wants bilateral agreements like the one with NZ because it shows a commitment to free trade. “They’ve been open about this in the past. The reason that they’ve pushed ahead with (bilateral agreements like the one with NZ) is to show the world that free-trade agreements are alive and kicking. “It’s in the face of (United States President Donald) Trump and in the face of Brexit that they’re pushing ahead.” The EU won’t get an economic benefit from a free-trade agreement with NZ but it gets a political legitimacy, Kelly said.

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16 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Fonterra buyout in Chile

HOME FIRES: Soprole take dairy ingredients from Prolesur, both owned by Fonterrra, and makes nonFonterra branded products for the Chilean market.

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FONTERRA is buying the minority interests in its Chilean processing partner, Prolesur, to streamline its businesses and give it more options for the future. Among the options could be an exit from the dairy industry in Chile after several decades of New Zealand involvement, firstly by the Dairy Board in 1986. Fonterra has agreed to buy 13.6% of Prolesur for NZ$29.3 million from Fundacion Isabel Aninat, a church-owned charity. The parties were in dispute over Prolesur’s commercial processing relationship with another Fonterra Chilean subsidiary, Soprole, a dairy consumer products and ingredients company. Independent Fundacion directors alleged the pricing terms for cheese heavily favoured Soprole, not leaving a fair margin for Prolesur. But a complaint to the Chilean prosecution service was not proceeded with because of insufficient evidence to support a case. It appears Fonterra’s purchase of the Fundacion’s shareholding announced was at a premium price to the book value and the ownership transfer is still being completed. A remaining 0.1% of shareholding in private hands should also accept the Fonterra offer. The offer price values Prolesur at $215m and Soprole is reportedly valued at more than twice that but Fonterra does not publish that number. Fonterra is not obliged to seek approval from the Chilean government or any equivalent of our Overseas Investment Office. Prolesur has two plants in southern Chile, at Osorno and Los Lagos, capable of processing collectively about 2m litres of milk a day into milk powder, butter and cheese. Soprole then takes the dairy ingredients and makes added-value, non-Fonterra branded products for the domestic market. Fonterra said it collects from 300 dairy farms in total in Chile but its share of the milk market is not published. It is alleged Soprole has lost overall market leadership in consumer goods in recent years to Nestle and two locally owned-companies but it retains some category leadership. Integrated operations would provide greater co-ordination of milk collection and processing, possible further alignment of manufacturing and the supply chain, and removal of any administrative duplication. A few days after the buyout the resignation of Soprole’s chief executive Valeria Flen Silva was announced. He will be replaced by civil engineer Sebastian Tagle Perez from January 20. He rejoined Soprole after a six-year absence working for Coca Cola in Chile. Perez is tasked with ensuring Soprole’s leadership in the dairy market, recovering levels of operational efficiency and generating the value expected by the shareholders, chairman Hugo Covarrubias Lalanne said. A Fonterra representative declined to make any further comment about the future of Soprole-Prolesur under Fonterra’s new strategy of favouring NZ milk. When announcing the share buy Fonterra said both Prolesur and Soprole are strong businesses but their recent performance had been affected by challenging market conditions.

News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Sticky wicket for honey producers Richard Rennie richard.rennie@globalhq.co.nz HONEY producers face a season of lean returns as prices plunge to well below break-even, leaving some having to decide if this year’s crop is even worth harvesting. Beekeeping Incorporated president Jane Lorimer said prices for bulk honey have dropped to $3.50 to $4 a kilo, well down on the $6-$7 a kilo needed to break even on production costs. Lorimer, a Waikato producer, said she has been lucky also having income generated through kiwifruit pollination, which will be a valuable side income this season to bolster fading honey earnings. “It is not good and a lot of new beekeepers with big mortgages are having the banks putting pressure on them. “There will be fallout from these prices this season.” Large volumes of Chinese honey hitting global markets has been blamed for the decline and New Zealand producers simply cannot remain profitable at the lower values the Chinese product has created. Arataki Honey director Russell Berry, of Rotorua, who supplies 32% of the honey sold in NZ supermarkets, said a lot of the Chinese honey is understood to be adulterated. His operation is one of the largest in the southern hemisphere with 20,000 hives. NZ producers also have a problem with cheaper imported propolis, a resinous product produced by bees and often used in cosmetic creams. They also have too many hives, at almost one million, well up on the 270,000 hives only 10 years ago. Berry said the hive numbers mean the country is effectively overstocked and a cut of 25% of hives would probably result in greater productivity. Lorimer said a hike in compliance costs has also hit the sector hard with risk management plans that used to be annual affairs now required twice a year. “This has not quite doubled the cost but is getting close to it.” She expects the slide in prices is going to hit the sector hard for the next three seasons as heavily indebted new entrants get shaken out, unless something can be done to increase the export value of honey. “Some beekeepers may choose not to harvest honey from their hives this year and it comes in a year that has had quite good honey flow where there will be a reasonable crop of pasture honey.” But she said the lower prices are also due, in part, to manuka honey that is not meeting the new standards and is being put into the standard honey market. The promise of continuing high manuka returns not being fulfilled has also darkened the season’s prospects. Berry said several processors have committed to very high-value, long-term manuka contracts only to find those prices are also being undermined and well off the top values anticipated three years ago. Last year manuka prices slid by as much as 50% compared to the year before and some processors have major stockpiles of the higher value honey in bulk storage. Apiculture NZ chief executive Karin Kos said the need now is greater than ever to focus on NZ’s unique floral honey types and building their reputation among consumers. Manuka Honey Appellation Society spokesman John Rawcliffe said the poor prices highlight NZ’s inability to compete in the global bulk honey market. He agrees the need to continue focusing on higher-value, mono-floral honeys is now greater than ever before. NZ is fortunate to have a range of mono-floral

honeys that can command a premium over global bulk honey. In September last year the manuka honey industry received an injection of almost $6 million from the Provincial Growth Fund to help the product protect its provenance claims. The society has successfully protected the manuka brand in Britain and has applied to Chinese authorities to do the same there.

SLIDE: Beekeeping Incorporated president Jane Lorimer says beekeepers can expect a tough couple of seasons ahead.

News

18 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Scientists paint carbon picture Richard Rennie richard.rennie@globalhq.co.nz EFFORTS to get a better handle on New Zealand’s soil carbon stocks have gained momentum with money from the Agricultural Greenhouse Gas Research Centre and Primary Industries Ministry as NZ ramps up understanding of carbon stores. While soil carbon plays a critical role in soil health and function it is also a valuable reservoir for holding carbon dioxide with more carbon stored below ground than the combined amount in plants and the atmosphere. Landcare Research study leader Dr Paul Mudge said NZ already has a system for quantifying the carbon invegetation and soils in native and exotic forests. The new study will sample 500 sites covering all agricultural land broken into the broad land-use classes of dairy pasture, flat and rolling drystock pasture, hill-country drystock pasture, horticulture and short rotation cropland. Sampling soil carbon is not simple. It requires physical effort from the three teams of scientists that will be sent from Waikato, Palmerston North and Lincoln in next year. The most difficult sites are the stony soils in eastern parts of both islands. Two people are likely to do only two sites a day digging 60cm into the soil, separating rocks and soil, carefully recording their weights then calculating the volume of soil by filling the pits with plastic beads with a known volume-mass ratio. Mudge said there is a good reason those soils are underrepresented in sampling. “We have already sampled 60 hill country sites and will be doing another 110 sites across the country every year from those land use types, rather than doing it region by region. ADVERTISEMENT

“That means we could provide a snapshot of NZ’s soil carbon levels after year one and an increasingly exact picture for every year of sampling. By the time we get to year five we will be resampling and be able to give an indication if soil carbon is increasing or decreasing.” Centre director Dr Harry Clark said evidence suggests soil carbon content in flat, grazed pasture has not changed greatly in the past 20-30 years. The exception is drained peat soil where carbon continues to be lost, largely as carbon dioxide through oxidation as water is removed. “There is some evidence hillcountry grassland soils gained soil carbon between about 1980 and 2010 but it isn’t clear how widely spread these gains are and if they are ongoing.” Mudge said if the gains in the hill country soil have continued they represent a very positive story for the agri-sector. Practices that remove even a small percentage of carbon dioxide from the atmosphere and lock it up in soil could prove highly beneficial to the sector as it works to reduce its emissions in the next decade. More specific experimental work led by Waikato University environmental biochemist Professor Louis Schipper has found lighter-stocked Waikato dairy units gain considerably more carbon over a year than more heavily stocked, more intensive operations. Schipper’s team has also found pasture renewal leads to net carbon losses during the renewal period when soils are bare and losses are higher when the soil is wet. The longer-term impacts of pasture renewal and maize cropping in a pastoral system are ongoing areas of research. Typically, NZ soils are well manged with little continuous cropping and therefore carbon

HANDLER: Bay of Plenty farmer David Rowlands operates a drone.

stocks are already relatively high. That is augmented by a temperate climate that results in continuous carbon input. Other countries have done varying levels of soil carbon stocktakes. Mudge said France and Denmark have some of the most comprehensive methods in the world, having national grid monitoring systems that have been running for decades. “Australia and the United Kingdom also have soil carbon monitoring systems in place,” Mudge said. The researchers hope they can, over time, build up the number of sampling sites, potentially by including links with industry or even individual farmer initiatives provided consistent methods are used. In time that could help identify specific management practices that help maintain or increase soil carbon stocks.

TESTING: Landcare Research scientist Paul Mudge takes a core sample for carbon testing.

LEGAL TALK with Barbara McDermott Business partnerships – the law dictates the terms unless partners agree otherwise

Business founded on friendship succeeds but friendship fails In a recent case one of the partners was looking for a development opportunity and his friend (a real estate agent) found a property for him to purchase. After the property had been purchased, the friends agreed to subdivide it into three lots, relocate the existing house which was the agent’s property, build two additional houses on the land, and sell the three sections for a profit. The agent agreed to manage the development on a day to day basis. The friends’ relationship turned sour during the development. On completion of the development the partner who owned the properties refused to pay the agent any of the

Barbara McDermott Phone 07 834 6159 barbara.mcdermott@nwm.co.nz

funds from the sales. The friends argued about whether the agent was entitled to be paid for the re-located house and how the profits were to be shared. The Court found the development project was legally a partnership and therefore the profits were to be shared equally, despite the partners’ different understandings about their contributions to the development and how the profits were to be shared. Partnership law The terms of a partnership are currently governed by the Partnership Act 1908. The 1908 Act will be replaced by the Partnership Law Act 2019 which will come into force on 21 April 2020. The 2019 Act re-enacts and modernises the 1908 Act but doesn’t substantially change the law. If the law does determine a partnership exists, then the default terms will be those set out in the applicable Act. A partnership exists where persons (or other legal entities) are carrying on a business in common with a view to profit. There are no formal requirements for the creation of a partnership – the partnership may be formally

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documented or it may be an oral arrangement. Whether or not a partnership exists will be a legal question to be determined by the Court, and not necessarily what the parties themselves call their arrangement. A partnership is “fiduciary” in nature. This means the partners must act in good faith and honestly with each other, they must provide full accounts of all information and assets in their possession or control, they must avoid conflicts of interest and avoid profiting personally from the partnership opportunities and information. When the partnership dissolves, each partner is entitled to have the partnership property applied to the debts of the partnership, to have their capital contributions repaid and to have the remaining surplus shared equally among them (even if they contribute unequally by way of capital or effort). The partners can vary these default terms by agreement and minimise disputes - preferably by recording their agreement in a professionally prepared document.

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There is one very good reason (among many others) why it’s important to clearly document any business arrangement. That’s because, in certain circumstances, the law will impose the terms of the arrangement on the parties if they do not record the terms of their arrangement themselves. One such instance is where the law determines there is a partnership.

News

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Sheep and cows’ milks are equals Neal Wallace neal.wallace@globalhq.co.nz SHEEP milk provides the same human nutritional and health values as cow milk but does it at lower volumes, new research shows. Otago University food science student Dr Keegan Burrow compared the values of ovine and bovine milk for his thesis and found sheep milk potentially improves bone structure. But the complexity of milk means he couldn’t determine what exactly causes that benefit. Burrow’s research assumes sheep milk is consumed as part of a daily diet rather than as a supplement and compared the impact of the two milks on a diet low in calcium and phosphate. “What we found was that sheep milk was overall equally as effective as cow milk at replacing structural and functional aspects of bone and other organs but it was able to achieve that with much less milk.” Quantifying exact volumes and body response requires extra research but Burrow said it is indicative of the potential of sheep milk. His findings were a not a surprise because they confirmed assumptions and knowledge.

to satisfy his love of food by studying food science. Having completed his honours degree by studying mushrooms Burrow was looking at options for his doctoral studies when he stumbled into a chance to study the attributes of sheep milk. Otago University had just bought an inductively coupled plasma mass spectrometry machine to detect tiny polyatomic ions, which made his three years of research possible.

Dr Keegan Burrow Otago University Sheep produce less milk than cows, making it more expensive but that is partially balanced because less is needed to get the same health benefits. His research is part of wider work funded by the Ministry of Business, Innovation and Employment being done by AgResearch, Otago and Victoria universities and Callaghan Innovation in partnership with the major New Zealand sheep milk producers to assist the industry become a $200 million export earner by 2030. Researchers have detailed the composition of sheep milk and how it varies throughout the season along with basic data on storage and processing, including extending shelf life and how processing can affect flavour. The research is being made available to the industry to improve its performance. Burrow says his findings will provide options and information for sheep milk processors that could lead to differentiating products and linking with consumers. “There is lots of demand for sheep milk cheese, whole milk powder and infant formula. “Part of the issue is trying to pick which of those to move in to.” There is a lack of knowledge about the merits and composition of sheep milk compared to cow milk and he hopes more research will be done on those attributes as well as milk from deer. For example, sheep milk still contains lactose but it can be drunk by people with allergies provoked by cow milk. Further work will look at improving milk yield and establishing criteria to ensure its environmental sustainability. Other research showed commercial sheep milk yield can be increased while maintaining lamb health and growth by changing weaning, rearing and nutritional practices on-farm. Initially keen to become a chef Burrow decided

WHAT’S DIFFERENT? Otago Univeristy graduate Dr Keegan Burrow has compared the composition of sheep and cow milk.

THE BEST DEFENCE IS A GOOD OFFENSE

There is lots of demand for sheep milk cheese, whole milk powder and infant formula. Part of the issue is trying to pick which of those to move in to.

Early treatment with zinc is your best defence against facial eczema. Talk to us about how to protect your herd and productivity today.

News

20 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Green plans on boil at Synlait We hope the improvements to this small piece of land will become an exemplar for restoration. Leon Clement Synlait

OPEN: Prime Minister Jacinda Ardern and Ashleigh Brown, energy centre operator, cut a ribbon on the opening of Synlait’s new electrode boiler at its Dunsandel plant in Canterbury.

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Tim Fulton timfulton050@gmail.com

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COAL is on a permanent backburner at Synlait’s Dunsandel plant. Its electrode boiler, commissioned in March, is the first large-scale plant of its type to be installed in New Zealand. It’s also the first major step toward the company halving its off-farm greenhouse emissions by 2028, the company says. “The deliberate decision to not build another coal boiler is part of Synlait’s bold sustainability strategy announced in June 2018 and leads the way to a lower emissions future for NZ,”

Agrievents 2019

agrievents AWDT Understanding Your Farming Business & Wahine Maia, Wahine Whenua 3 full-day workshops and an evening graduation ceremony run over four months. Equips and supports women involved in sheep and beef farming to lift business performance. Registrations for 2020 programmes are now open, visit the website for more information and to register. Locations and dates (3 modules & graduation): • Drummond: 5 Feb, 5 Mar, 2 Apr & 30 Apr • Reporoa (WMWW): 12 Feb, 11 Mar, 7 Apr & 6 May • Tarras: 13 Feb, 12 Mar, 8 Apr & 7 May • Raetihi: 13 Feb, 12 Mar, 8 Apr & 7 May • Westport: 19 Feb, 18 Mar, 15 Apr & 13 May • Hokitika: 20 Feb, 19 Mar, 16 Apr & 14 May Website: To register visit www.awdt.org.nz/programmes Contact: keri@awdt.org.nz or 06 375 8180 for more info AWDT Future Focus programme Programme designed for red meat farming partnerships to plan their business together. 2 full-day workshops delivered over two months. Delivered in 20 locations around NZ, registrations for 2020 programmes are now open. Visit the website for more information and to register. Locations and dates (2 modules): • Geraldine: 25 Feb & 24 Mar • Darfield: 26 Feb & 25 Mar • Rotorua: 10 Mar & 7 Apr Website: To register visit www.awdt.org.nz/programmes Contact: keri@awdt.org.nz or 06 375 8180 for more info

Neal Wallace neal.wallace@globalhq.co.nz

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Should your important event be listed here? Phone 0800 85 25 80 or email adcopy@globalhq.co.nz

6MW capacity based on current demand but was designed to do up to 12MW. Synlait is working with electricity lines company Orion to enable the greater supply in future. Separately, the company is running an environmental improvement programme, Whakapuawai, based on restoring and regenerating native ecosystems, waterways and wetlands, flora and fauna. The programme is about drawing people and groups together to improve water quality and restore diversity and re-establish mahinga kai, the places and natural resources that are important to Maori, Clement said.

New laws tidy up farm issues

Red Meat Profit Partnership - Farm Business Transition and Succession workshop series Designed to take farm businesses through transition and succession, the series includes three half day workshops spread over a three-four-month period followed by a one-onone clinic. Workshops begin March 2020 in 20 locations across New Zealand, fully funded for sheep or beef farmers. For more information and to register go to www.rmpp.co.nz. Red Meat Profit Partnership - Aspiring to Farm Business Management and Ownership workshop A one-day workshop developed for individuals or couples wishing to manage or own a sheep or beef farm business. Available in 10 locations across New Zealand from MarchJune 2020, the workshop is fully funded by RMPP. For more information and to register go to www.rmpp.co.nz.

Synlait chief executive Leon Clement said at the opening of the facility by Prime Minister Jacinda Ardern. The process heat and steam from the six-megawatt plant powers Synlait’s advanced dairy liquids facility and is used to pasteurise and sterilise milk, clean production lines and equipment and help create product packaging. The boiler is more efficient than a traditional water tube boiler because only a small amount of water is heated. Maintenance costs are low compared to a coalfired boiler and an annual maintenance turnaround takes only two days. The boiler is running at

It involves landscaping and planting 15ha of grazing land around the Dunsandel plant, growing over time to include a wetland, walking tracks, exercise zones and meeting areas. Farmers will be given free plants from the company’s nursery to regenerate parts of their properties and Synlait staff will be given one paid day a year to contribute to the initiative. It is expected some staff will spend time helping farmers with regeneration projects. Whakapuawai will extend to nearby areas like Te Waihora Lake Ellesmere, which has been significantly degraded as a result of changes in surrounding land use. The lake and surrounding wetland were once home to thousands of species of animals and plants and a critical source of food for Ngai Tahu. Synlait is forming a partnership with local hapu, Ngai Te Ruahikihiki, on projects starting with planting and wetland restoration around Muriwai (Cooper’s Lagoon). “We hope the improvements to this small piece of land will become an exemplar for restoration that landowners all around Te Waihora will follow,” Clement said. In July last year Synlait launched a 10-year sustainability plan that included water use, greenhouse gases, nitrogen loss, palm kernel and coal.

PARLIAMENT has passed a raft of new laws affecting farmers that require creditors to offer mediation to financially stressed farmers and tidies up flaws in the Nait scheme. And a private member’s bill introduced by Rangitikei National Party MP Ian McKelvie will speed up the court process for dog control offences and divert low-level cases to justices of the peace and community magistrates. The Farm Debt Mediation Bill was introduced by NZ First. Its agriculture spokesman Mark Patterson said it recognises farms are

more than just a business. “Oftentimes, it’s a family home and the pride of generations of farmers. “This bill will ensure all options are explored to turn around a failing farm business, introducing a mediation step to help resolve debt issues before enforcement action is taken,” Patterson said. When the party initiated the bill in 1999 farm debt was $11.7 billion. Today it is $62.8b. Agriculture Minister Damien O’Connor said the scheme, which starts on July 1, obligates the parties to meet in an equitable manner to constructively look at all options to turn the business around. If that is impossible a

timely and dignified exit must be provided. The Mycoplasma bovis outbreak highlighted shortcomings in the Nait scheme, now addressed by changes he has introduced, O’Connor said. “We’ve done our best to make compliance easier for farmers, including transition periods where possible to help farmers adjust. “Combined, these steps will see real changes for the industry and improvements to our biosecurity system.” Changes include tightening the rules for handling untagged animals, improving the use of data, aligning penalties with related laws to reflect the seriousness of

non-compliance, updating the performance framework for the organisation running Nait and allowing cost recovery for accreditation and audit. Some of the specific changes mean only tags issued for a specific location can be used, the impractical-to-tag exemption has been renamed unsafe-to-tag and the notification required of those animals being moved has been changed from 48 hours to before being moved. Also, privacy issues inhibiting sharing of an animal’s location history with a buyer have been addressed while Nait will now hold information on stock theft, wandering stock and dead animals.

Spotlight on wool Part 3

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www.nzwoolscouring.co.nz

Wool could help save our planet but who is saving our wool? Segard Masurel’s 2020 vision for wool

ool exporter, private merchant and broker Segard Masurel NZ has just launched a wool grant programme called Wool Start to help jumpstart careers involving wool. Having worked in wool for over a century the company knows the true value of wool to humankind and the planet. Wool could help save our planet but who is saving the future of our wool? The world vision for wool needs to be 20:20 and Segard Masurel has set its sights on supporting this totally brilliant fibre, bringing all its natural benefits into sharper focus. The world needs to take another look at wool. Segard Masurel’s Wellington-based managing director Peter Whiteman says “We want to foster emerging talent and spark innovative thinking to create a brighter future for New Zealand’s wool industry. “It’s an exciting time to become involved in wool textiles in the face of growing consumer concern about the overuse of petroleum-based products. Yet, ironically, sheep numbers are in decline. It’s time to turn the tide. “We are keen to help anyone embarking on a new development project, studies or training that advocates New Zealand wool.” Wool is a totally brilliant natural fibre. It is organic, renewable, biodegradable, breathable, odour-resistant, fire-retardant and a natural insulator. It’s a safe choice with incredible benefits and versatility in the fields of fashion, furnishings, carpets and everyday people products. Sustainability is at the very core of wool fibre. Teamed up with best-practice farming, traceability and strict animal welfare codes, the integrity of the product is excellent. The key objective of the Wool Start programme is to boost creativity and innovation among those who are capable

and willing to harvest the natural qualities of wool for the collective benefit of our everyday communities and the environment, to push the boundaries and overcome any obstacles in the effective processing of this natural fibre and to promote the use of wool across existing and potential new markets. These markets might include textile design, furniture, bedding, insulation and architecture or more practical applications involving farming, shearing, classing, the mechanical processing of wool and recycling. It might encompass fashion apparel, highperformance clothing, addressing and testing biological functionality or niche uses in the medical sector, high-functioning breathing apparatus and sustainable packaging. Segard Masurel realises there are many and varied applications for wool being driven by increasing consumer demand for an ecofriendlier environment. The company wants to see all avenues explored thoroughly and with determination to give wool a brighter future. The Wool Start grant is open to people aged 18 to 45 years who are either enrolled at a recognised learning or training institute or working in the wool-related sector in New Zealand. Candidates may wish to attend a course or training programme to enhance their career in wool or require help to complete a thesis at tertiary level.

“We want to foster emerging talent and spark innovative thinking to create a brighter future for New Zealand’s wool industry.

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Others may need assistance with research and design for a promising commercial project. All applications will be considered on a case-by-case basis and preference will be given to those who, in our opinion, show the most promise to improve and grow the New Zealand wool industry. To learn more about the Wool Start grant programme email wool@segardmasurel.co.nz or go online to www.segardmasurel.com,

Segard Masurel managing director Peter Whiteman flanked by wool reps Paul Gale and Scott McLeod. click on New Zealand then scroll down to find the link reading Wool Start. Segard Masurel is a global company with operations in New Zealand, Australia, Belgium, France and South Africa. It deals exclusively in wool and is particularly active in the carpet industry domestically and worldwide. The company also sells wool in international markets for sports and outdoor attire, fashion garments, knitting, bedding, blankets and interior textiles. It exports about a quarter of New Zealand’s total wool clip annually to more than 30 countries around the world. Segard Masurel operates its own direct buying branches and auction catalogue throughout both the North and South Islands. Outside of its own network the wool is bought either privately or at auction from all major merchants, brokers and slipe works in New Zealand. Segard Masurel’s commitment to wool is second to none and it hopes the Wool Start grant programme will launch more careers in wool. Be a wool hero and help save our wool and our planet.

WOOL

Upcoming events: •

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• • •

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Heimtextil 2020 international home and textiles trade fair, Frankfurt, Germany, 7-10 January 2020. DOMOTEX floor covering trade fair, Germany, 10-13 January 2020. Premiere Vision – Paris, 11-13 February 2020. Golden Shears, Masterton NZ, 4-7 March 2020. Central Districts Field Days, Feilding NZ, 19-21 March 2020. DOMOTEX asia/ CHINAFLOOR flooring exhibition, Shanghai, China, 24-26 March 2020. IWTO Wool Congress, Tongxiang, China, 18-20 May 2020.

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Segard Masurel (NZ) Ltd 9th floor 20-26 Ballance Street PO Box 3473 , Wellington Telephone: +64 4472 3596 wool@segardmasurel.co.nz

or Masurel Direct PO Box 66 540 State Highway 2 Clive 4148 Telephone: +64 6 8700 601 wool@masureldirect.co.nz

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22 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Newsmaker

Helping farmers earns top award Diana Mathers doesn’t claim to have any specialist focus when it comes to arable farming but her passion to help cropping farmers has earned her the top accolade from the Foundation for Arable Research. She talked to Annette Scott.

ESEARCHER of the Year is a special award in the cropping industry but not one Diana Mathers ever dreamed of winning. Crowned with the 2019 title by the Foundation for Arable Research Mathers said it was one huge surprise. “It is a very special award and came as a huge surprise, totally unexpected. I never thought I would ever be in line for Researcher of the Year. It’s just such an honour.” Mather said her work in the industry has no particular specialist focus. “I’m a generalist in cropping, just know a little bit about a lot. That’s why the award is such a surprise.” While Mathers started her career on a technical science path she very soon moved to the extension area where she found delivering information in a farmer-friendly way gave her more satisfaction. “I have a real passion around the extension side of the science and technical research. “I get great satisfaction working with farmers to make the technicalities of the science acceptable and easy for farmers to uptake.” Based in Hawke’s Bay Mathers works across all aspects of the arable industry with farmers and regional councils across the country. “I work with farmers wherever I am needed and working with regional councils is quite challenging with each region having varying regulatory needs. “It’s about understanding the needs, balancing the requirements

HERE’S HOW: Diana Mathers demonstrates the Quick N test at the Foundation for Arable Research annual industry event in Rakaia last month.

coming out from regional and central government with what farmers need to understand and delivering information to farmers in a way that they can understand what does need to change. “Everything doesn’t need to change, not everything can change, but there are little things we can up our game with in regional and government plans and helping farmers understand what they realistically can do is my expertise – if I have any expertise,” Mathers said. “I just want to help farmers manage the environmental risks and still stay in a profitable business as they balance that profitability against social, community and environmental responsibilities. “Farming is the most difficult job in the world. I admire farmers so much and find them very inspiring.” The award is proof of Mathers’ expertise, FAR chief executive Alison Stewart said. Since joining FAR as cropping systems research manager in 2010 Mathers has worked to support cropping farmers in the areas of economic and environmental sustainability. Stewart said the award recognises the significant impact she has had in these areas. “Diana provides valuable input to a number of regional council groups throughout New Zealand where she helps to ensure policy is practically aligned with farm practices, particularly in relation to nutrient management. “She is a strong advocate for the implementation of good farm management practices and works closely with growers to support their adoption and uptake.

“This award is fitting recognition of Diana’s empathy with growers and her determination to help them understand and negotiate the increasingly complicated issues associated with on-farm environmental management,” Stewart said. Working with growers adopting new technologies is a current focus for Mathers who helped test and calibrate DIY Quick N testing kits as part of the Primary Industries Ministry’s Nitrogen – Measure it and Manage it project. The results confirmed Quick N testing strips are an efficient and inexpensive tool to help growers understand exactly how much nitrogen is available to their crops and, therefore, how much they need to apply to reach target yields. Mathers is actively involved in a number of national and regional research projects focused on ensuring high-quality information is made available to farmers in a format that is easy to understand and apply. She has led a number of environmental and biodiversity projects including the good management practices for winter dairy grazing on arable cropping land, the Building Better Biodiversity on Arable Farms and the Trees for Bees projects. She was instrumental in developing a farm environment plan template for cropping farms, which was released in 2015 and has been extremely well received by growers and regional councils. Its success comes from Mathers’ determination it should done easily by landowners and form a valuable information base for farm businesses.

THE BEST: FAR Researcher of the Year 2019 Diana Mathers with her award.

Farming is the most difficult job in the world. I admire farmers so much and find them very inspiring. Diana Mathers Foundation for Arable Research The plan is being delivered to farmers through a series of workshops and will become an increasingly more important tool for growers as the Government increases its environmental compliance requirements. Mathers has also had significant involvement in benchmarking

Overseer for crop farms and delivering information on nutrient management on crop farms to arable and vegetable growers through a series of nutrient management workshops. In all these projects she has focused on using data collected on farm and farmers’ own records to inform improved on-farm decision making. While of retiring age Mathers has no plan to give up her job. “People ask if I’m retiring because I have got this award – I’m not. I love what I do and I love being able to help farmers.” In her spare time Mathers likes to keep fit walking, biking and going to the gym and enjoys time with her grandchildren. “Nothing is going to change,” she said.

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

IT WORKS: Plantain can cut nitrate losses from soil by up to 30%.

Research starts paying dividends Over the past two and a half years New Thinking has introduced Farmers Weekly readers to a wide range of emerging technology and leading research in the primary sector. Richard Rennie revisited some of them to find out what progress they have made. Forage research brings results Scientists working on the Forages for Reduced Nitrate Leaching (FRNL) programme that includes DairyNZ, the Foundation for Arable Research, Plant and Food Research, AgResearch and Lincoln and Massey universities have some promising news for farmers wanting to reduce nitrate losses. Now six years on the forage research has confirmed multispecies pastures can help significantly reduce a farm’s nitrate losses without having to change the entire farm system. Lead DairyNZ researcher Ina Pinxterhuis said plantain has been confirmed for its diluting effects on animal urine, reducing its nitrogen concentration, meaning plants and soils are more capable of absorbing it. It has also been found to reduce the rate of nitrate formation in the soil, the readily leachable form of nitrogen. That is something researchers are still trying to better understand but, overall, plantain can reduce nitrate losses through the soil by 6-30%. “But we have found you require a minimum of 30% plantain in the sward to see a significant animal effect.” The trick, however, is ensuring it stays in the pasture and does not get dominated and pushed out by ryegrass. Researchers are seeking further funding to continue the project while also working on the Plantain Rollout project in Tararua, studying its success on 125 farms there.

Farmers wait and see on Spikey While fertiliser guru and innovator Dr Bert Quin has stepped aside from Spikey, his nitrogen-inhibiting machine that appeared in New Thinking in September 2017 the machine’s full potential remains to be fulfilled.

Initially, we were expecting to see a 30% reduction in nitrate losses but that has proven through lysimeter sampling to be as high as 70% reductions.

The founding company Pastoral Robotics has boosted its investment in Spikey and director Lachlan McKenzie hopes its nitrogen-reducing technology can be accepted by regional councils and Overseer as a means to deal practically with nitrogen losses in water catchments. The tractor-drawn urine patch detector has been in full-time use on five Rotorua dairy units for the past two years and McKenzie says the results have surpassed original hopes. “Initially, we were expecting to see a 30% reduction in nitrate losses but that has proven through lysimeter sampling to be as high as 70% reductions.” The compound delivered onto the detected urine patches

has been modified to not only discourage ‘bad’ bacterial growth that releases nitrates, but encourage ‘good’ bacteria that help plants better absorb the nitrogen, along with an improved nitrate inhibitor. Mckenzie said the company is awaiting publication in an international journal of a peerreviewed study into Spikey’s effectiveness. That should give Ministry for the Environment staff confidence to approve the machine’s application and have it incorporated into Overseer. “So we are still looking at another two years to prove the science and two more years to be incorporated into Overseer. “We have been overwhelmed with the results we have achieved on our farms here and farmers are very interested and are waiting until they know regional councils will approve its use.” Block chain delivers Two years ago New Zealand companies were still kicking the tyres of emerging block chain technology while big global players like Walmart and hypermarket owners Carrefour were already running with it to ensure smoother supply logistics. Block chain acts as a type of digital ledger, recording transactions chronologically in a data block open to selected parties to view as the product moves through the supply chain. Sometimes a difficult concept to grasp, block chain technology has moved beyond the one-day label to now play a vital part in

primary produce export logistics in NZ. Auckland University commercial law head and block chain expert Alex Sims says the technology is now well in play with two of country’s largest food producers, Fonterra and Silver Fern Farms, through their founding logistics company Kotahi and shipping company Maersk Line. Known as TradeLens, the shipping solution is designed to promote more efficient and secure global trade while increasing information sharing and transparency during the shipping process. “Supply chains are the low hanging fruit for block chain technology, lowering transaction costs for all parties.” Another new NZ application is using TrackBack block chain technology to verify the provenance and quality of manuka honey. The technology means recipients of manuka honey in Shanghai can verify jars received are the same ones packaged and sent from NZ. The project was a joint effort between AsureQuality, NZ Post and The True Honey Company in using the technology. “Soon people will be using block chain technology without even knowing it is there,” Sims says. Robots are still coming In 2017 Bay of Plenty company Robotics Plus was working on an autonomous agricultural vehicle capable of switching between

spraying, pollination and pruning jobs on kiwifruit orchards. Robotic apple packers were also being developed for the booming sector. Today the company has 60 staff and has launched its first two commercial products. While work on the autonomous platform progresses in the background the first commercialised robotic product has been the Aporo apple packer, launched 18 months ago in NZ, the United States and Europe. It can pack 120 apples a minute into display trays. This year marked the launch of the Robotics Plus Robotic Scaling Machine (RSM) to quickly and safely measure logs while on logging trucks for Mount Maunganui company ISO. The logging truck scales create a 3D image of each wood load, allowing exporters and importers to get a visual representation of their purchase before delivery. The company has also employed a chief executive, Dr Matt Glenn. He said the company’s growth and innovation plans are well supported by local and international research and commercial partnerships. It also got a US$10 million investment from Yamaha Motor Company and won two HiTech Awards and a Trans-Tasman Innovation and Growth Award. “We have a number of new products in the pipeline and expect our growth to continue at over 200% year on year for the foreseeable future,” Glenn said.

Opinion

24 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

EDITORIAL

Don’t tread water, just get on with it

F THERE’S one thing that can be relied on to stay true it’s that change is constant. Evolution waits for no one and picking a point in it and deciding to put the brakes on there, perhaps because it suits current circumstances, is a recipe for disaster. Technology is advancing at an exponential rate and that is spurring change in other aspects of society at a breakneck pace. Keeping up can seem daunting but it’s the only way to stay competitive. That’s not to say that change for its own sake is required. Sometimes the best way to do something is the simplest and those pushing another route are providing the answer to a question that doesn’t exist. The first week of 2020 has shown the pace of change shows no signs of abating. Climate change is here and taking a massive toll on our near neighbour, Australia. Global political and trade issues are ever-present and seemingly a growing concern. Questions continue to be asked of world food production systems, with alternatives to traditional foods increasingly touted as the way forward. That all sounds a bit scary but only to those who want to tread water. Challenges provide opportunities for those willing to innovate. People will always need food but they increasingly have choices about where they get it. Farmers must always ask who they serve. The industry in recent years has socialised its ambition to serve conscious consumers, those who care about how food is produced. If that is indeed where we want to go as an industry then we’ll need to keep evolving in terms of both how we farm and how we tell our farming story. The time for treading water is over. In 2020 we need to kick on and lead the change.

Bryan Gibson

LETTERS

It’s a climate change cop-out ONCE again the Farmers Weekly comes up with an issue packed with lively discussion on change – farming change, climate change and turbulent times as the world transitions to a new reality. Keith Woodward is absolutely right when he says, given our response to climate change, the march of forestry can only continue. We have chosen a climate change copout, offsetting our emissions by tree planting and/or buying offshore carbon credits. It’s a disgraceful fail for a country with so much opportunity to do better. Farmers will inevitably be casualties of this process. Land use and ownership is shifting from the hands-on care and love of family and small-scale ownership to corporates looking for a quick profit from carbon credits. That is a tragedy for which we will pay a bitter price.

But faced by the existential threats of climate change the necessary political decisions backed up by public buy-in are put in the too hard basket – always too little too late. The political process and levers of power remain largely in the hands of those who have lived in and profited from a mindset that is responsible for the problem. And let’s face it, too much of the prevarication and obstruction on the subject of climate change comes from farmers. It also overwhelmingly comes from the Boomers, but that’s another issue. A quick look at our friends across the Tasman shows how quickly and catastrophically climate change can catch up with those who fail to act. Right now much of western New South Wales and south western Queensland is turning into desert.

The farming and grazing land west of the Divide is dying before our eyes. Meantime, in a climatic pattern repeated in other places with a Mediterranean climate – California and southern Europe – Australia’s eastern seaboard is burning up. The past six years have seen Australia’s nationwide temperatures at 1.5C above the average recorded between 1910 and 1999. They are now reaping the consequences. Consider the economics driving Australia’s response to climate change. In the 2017 year Australia’s agricultural exports were 15% of total. Coal exports alone were $47 billion or 20% and total mineral/ hydrocarbons over $200b. Follow the money. Australia’s future and especially the plight of all those Australian farmers whose lives we can relate to are being sacrificed to political

opportunism and the shortterm gains made by extracting, selling and burning their part of the planet. Thankfully, New Zealand has a more benign climate than Australia but already we see the effects of rising temperatures and sea levels, more volatile weather patterns and greater climatic stress on our land-based industries. Without fundamental change our climate change problems can only increase. The debate must be shifted from short-term interests, public and private, to the future of our children, grandchildren and planet Earth. We can either do that now with some influence over the process or it will happen later when it will be so much worse and largely beyond our control. Geoff Prickett Waikanae

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Failure won’t be farmers’ fault Arthur Tsitsiras

ARMERS, like any business people, always look to keep costs down and make a profit. Farming, however, is an industry with a unique set of variables. Droughts can severely affect crop and livestock growth, floods and storms damage crops and infrastructure, unexpected disease outbreaks and wavering demands in certain products can all have wide-ranging impacts completely out of farmers’ hands. In addition, farmers are now expected to be conscious about their environmental impact.

Making amendments to your farm to ensure it’s environmentally friendly isn’t an overnight fix.

Prime Minister Jacinda Ardern recently announced Kiwi farmers have a five-year window to reduce their carbon emissions before the Government introduces financial penalties – potentially adding further stress to already overworked farmers. One area in which farming is having a significant impact on the environment is waterways pollution as a result of phosphorus and synthetic nitrogen fertilisers. An Environment Ministry report in 2014 revealed roughly 60% of New Zealand’s waterways are unfit for swimming and experts say water quality has deteriorated further since. A recent Colmar Brunton survey found 82% of respondents are extremely or very concerned about the pollution of rivers and lakes, more than any other issue including living costs, child poverty and climate change. Furthermore, more than 13,000 people signed a #toomanycows Greenpeace campaign launched on Twitter earlier this year calling for a ban on synthetic fertiliser. You’d think that consumer sentiment might vary from that of farmers but that isn’t the case – farmers are onboard, too. A recent survey by Nielsen Research, commissioned by the Ministry for Primary Industries through the Sustainable Land Management and Climate Change Research programme, revealed 92% of farmers are focused on making their farm more environmentally sustainable, up from 78% in the last survey, in 2009. Making amendments to your farm to ensure it’s environmentally friendly isn’t an overnight fix. It takes knowledge and investment to ensure you’re investing in the right tools and practices. There isn’t, unfortunately, a certified playbook farmers can follow but it’s about the Government and

NO CONTROL: Farmers face a unique set of variables such as droughts, floods and storms.

The

Pulpit

organisations pulling together to give farmers the power to be environmentally friendly without it affecting their bottom line. We’ve spoken about NZ’s polluted waterways being a major concern and that’s something the fertiliser industry is trying to address. Granulated dicalcic fertiliser is a product being offered by several players. It can decrease the excessive run-off of phosphorus that happens with powdered fertilisers. It’s profitable too, because its slow-release qualities increase the volume of phosphorus, a key nutrient for plant-growth, released into the soil over time, growing bigger crops. That innovation and the healthy competition among companies wanting to build sustainable and

profitable solutions for farmers is just one example. There is plenty of innovation happening across the agricultural sector but we’re in a unique position now where the threat to our climate is evident and farmers need to be supported with tools that are not only more efficient than the ones they’re already being offered but also help them make a profit and reduce the impact their practice is having on the environment. But we can’t just point at farmers and say fix this. We have to come together to make life as easy as possible for them. The alternative products, equipment and practices need to not only address the environmental problem but also be superior to ones they’re already using, make financial sense and be more beneficial in terms of profit and loss. It’s no good telling them to be more environmentally friendly but be prepared for their business to take a hit. There are some solid initiatives happening across the Tasman, where bodies such as the Environmental Farmers Network, formed by a group of farmers with a wide environmental experience, provide industry professionals with the support and information they need and bridge the gap between industry and government. We need more of that in NZ and more companies innovating to solve the problem, not looking at farmers to solve it themselves.

BOTTOM LINE: New environmental improvement tools for farmers must be better than those they already have and make financial sense, TerraCare general manager Arthur Tsitsiras says.

Some 92% of kiwi farmers are focused on making their farm more environmentally sustainable, a higher percentage than ever before. Therefore, it won’t be resistance or a want of trying that leads farmers to fall short of the Government’s climate emissions reform expectations, it’ll be that they haven’t been sufficiently supported.

Who am I? Arthur Tsitsiras is TerraCare general manager.

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

Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Time to start counting spoons Alternative View

Alan Emerson

Supreme Award Federated Farmers. With limited resources it polls members, argues factually, tells people what is really going on and holds politicians to account. In my view it is an effective, relevant and extremely well-led and managed organisation. Beef + Lamb and DairyNZ could learn a lot from them. Buffoon of the Year Shane Jones for his redneck comment. Redneck means poor, uneducated white farm worker. A buffoon is a person who amuses others by ridiculous or odd behaviour. Appropriate, I thought. The Sound and Fury Signifying Nothing Award The National Party. The MPs were going to change the zero carbon legislation and the gun laws and when it came to the vote their little toes went firmly up. Rabbit Award for Bunny of the Year Beef + Lamb independent

director Melissa Clark-Reynolds for telling an Otago symposium she wants people to eat less meat but way better meat and the meat needs to be produced with love. She should stand as a farmer director and see how many votes she gets. Fountain of Youth Award Dead heat between Simon Bridges and Paula Bennett. With their stance on gangs, law and order and marijuana they make this conservative geriatric feel like a young liberal. The only people who can. The Tailor Award for One Size Fits All Environment Minister David Parker by a country mile. One thing about Parker is he always knows best – no matter what’s happening locally. Placard of the Year The enterprising West Coaster who during the anti-Government protest in Greymouth had the placard: Sage – good for stuffing the Coast and chickens. The Dumbo Award for Lost Opportunities The Canadian company that tried to buy a dairy farm but was turned down by Ministers Eugenie Sage and David Clark because it wasn’t going to add enough value. It should have planted it all in trees then the Government would be rushing to approve the

purchase. We have a ridiculous situation when an overseas investor wanting to buy a farm for production is turned down but one wanting to take a farm out of production by planting trees is welcomed with open arms. Organisation of the Year 50 Shades of Green, which went from nothing to a major force. Its arguments are rational, the media statements rely on facts and the spokespeople are credible. Mind you, they do have the advantage of right being on their side. The Nero Award for Fiddling While Your Country Burned Aussie PM Scott Morrison has certainly even outshone the ancient Nero with his activity over the Australian fires. The Joseph Goebbels Award for Spin Stuff, with its anti-farmer stance. It can publish an emotive anti-farmer diatribe from Greenpeace and people from the agricultural sector wanting to reply are refused. Further, councils can pollute the oceans and they get nary a mention, certainly not censure. Conversely, a farmer putting a bucket of effluent into a waterway as the result of equipment failure is pilloried. The Diogenes Award for Cynical Opportunism Every Member of Parliament

TRANSFORMERS: National Party leaders Simon Bridges and Paula Bennett make an old conservative feel like a young liberal.

except David Seymour. The Christchurch mosque shooting was an absolute tragedy exploited by Parliament, ably led by Prime Minister Jacinda Ardern and the Cabinet with their anti-gun antics. They said military style semi-automatics would be illegal, which suddenly became all semiautomatics, which was, at best, dishonest. They said it was a terrorist attack but was the perpetrator a terrorist? In addition, rifles, semi-automatic or not, aren’t the favoured weapon of terrorists. The subsequent gun buyback was a farce. One mate suggested the problem was our politicians didn’t know the difference between a rifle and a rapier. I’d go even more basic. They wouldn’t know the difference between rifles and ragwort.

The Ralph Waldo Emerson Award for Hypocrisy Fish and Game, Greenpeace, the Environmental Defence Society and the Greens. When farmers pollute, whether intentionally or not, they get roundly criticised. When city councils put uncut sewerage into harbours they get ignored. Someone should tell David Parker that more people swim in the sea than in rivers yet he wants swimmable rivers and ignores polluted beaches. The RW Emerson quote on hypocrisy reads “The more he talked of honesty the quicker we counted our spoons.” Appropriate.

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

Don’t panic: Price drops a blip Meaty Matters

Allan Barber

IT IS difficult to see any real reason for panic over the sudden pre-Christmas reduction in demand for sheep meat and beef from Chinese importers that has led to prices coming off their peak. Livestock suppliers will already have noticed a drop in schedules from the elevated levels processors were paying over the first couple of months of the season. It’s tempting to fear the worst given past experience with high prices paid by meat processors that have inevitably been followed by a sudden crash and a long, slow recovery. This time the situation really does seem to be different if you look at the fundamental demand for product in China. Affco sales and marketing manager Mark de Lautour sees the situation as more of a hiccup with traders collectively liquidating inventory in advance of Chinese New Year and the need for cashflow to cover large shipments of South American beef on the water. Like Thanksgiving in the United States, Chinese New Year is the big holiday when everybody celebrates at home with family

for one or two weeks, resulting in a trebling of food consumption. Not unnaturally, the Chinese authorities would welcome more product being available at lower prices to make sure there is enough in the market to satisfy the sudden increase in demand. Buyers with cash are taking advantage of the availability of well-priced meat. Not surprisingly, the cheaper product washing around the system will need to be consumed before the previous price levels can be re-established but the good news is demand remains strong. As confirmation fundamental demand remains strong, Affco reports a number of clients have continued to place considerable orders both sides of Christmas. While not at the highest price, buyers continue to buy, which indicates no significant drop in interest. Unsurprisingly, there is a certain amount of pressure on prices, which is likely to be the case as long as surplus inventory washes through the system. De Lautour expects the situation to last no more than three months before demand reverts to solid levels and, therefore, the biggest risk sits with New Zealand sellers not fully understanding the situation and overreacting. Reasons for this optimism are as before – the continuing impact of African wwine fever and the shortfall in protein supply that has resulted in average monthly imports of 250,000 tonnes since early 2018.

TEMPORARY: Affco sales and marketing manager Mark de Lautour sees the dip in beef and sheep meat prices as a hiccup.

Nothing has happened to change these market fundamentals. In the short term logistics infrastructure shuts down for 10 days either side of Chinese New Year and customers don’t want deliveries for nearly a month when consumption is at its highest. Much of the inventory will have been sold and consumed by mid February but then strong demand is expected as buyers refill the pipeline. From December to February schedule reductions are inevitable with processors protecting themselves against paying too much in a temporarily weaker market. For example, before Christmas Alliance sent a market

pricing update to its suppliers outlining the latest developments in China and the immediate impact on livestock prices as a result of overnight price corrections of up to 15% on all beef and sheep meat categories. Because of the company’s previous experience of a similar market correction in 2012, when it reacted too slowly and suffered a significant loss, Alliance decided to act decisively this time. In its market update Alliance expressed the hope this would be a short-term issue and assured shareholders, in accordance with its co-operative principles, it will refund them any overcorrection, if it turns out to have reduced livestock prices to a

greater extent than necessary. While this appears to be essentially a short-term Chinese trade issue there will also be broader implications for prices in other global markets, notably the American beef trade where there has been some downward price pressure. China’s meat imports must be put in the context of other trade arguments and agreements, such as the conclusion of a phase one trade deal between China and the US, which will see a reduction in retaliatory tariffs imposed by both countries. The American National Cattlemen’s Beef Association has welcomed progress towards this agreement, noting, though it awaits further details, it will bring relief to farmers and ranchers who have been targeted with China’s tariffs for many months. Over time American beef exports will gain a greater share of the Chinese trade, which makes it extremely important for NZ meat exporters to strengthen existing relationships with importers and focus on the higher value segments of the market. There will always be blips in customer demand and price structures but China is likely to remain our most important trading partner for the foreseeable future.

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

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Fonterra resolves Chile milk dispute The Braided Trail

Keith Woodford

FONTERRA buying the minority shareholding interests in Chilean dairy company Prolesur solves an acrimonious relationship between it and the Fundacion Isabel Aninat. It might prove to be an early step in the rationalisation and eventual divestment of Fonterra’s Chilean operations that are managed under a complex structure. The major asset is the almost wholly-owned Soprole, which in turn owns 70.5% of Prolesur. Fonterra has more Prolesur shares through another structure, giving it a total Prolesur holding of 86.2%. The key minority shareholder in Prolesur is Fundacion Isabel Aninat, which has ties to the Catholic Church. The Fundacion shareholding has been 13.6%. There are other minority shareholders who hold less than 0.2% of Prolesur and they too are now expected to sell. Most of Fonterra’s Chilean milk is processed through Prolesur into butter, cheese and milk powder. It then passes to Soprole, which markets consumer goods. The problem is the transfer-pricing between Prolesur and Soprole has led to almost all the profits since

2016 being earned by Soprole rather than Prolesur. That has made Fundacion Isabel Aninat directors very angry because they have received minimal dividends from Prolesur. The dispute between Fonterra and the Fundacion has been slowly working its way through the Chilean legal system. It had the potential to become destructive. Whatever the legal outcome Fonterra was always going to be the loser in the court of public opinion and from there through to the marketplace. It was a problem Fonterra had to solve. The simplest solution was to buy out the Fundacion and pay whatever was necessary to make that happen. The agreed price of $29.3 million for 13.6% of Prolesur suggests an overall Prolesur value of $215m. However, the book value of Prolesur in its accounts was about $150m in December 2017 in the last published figures. So, on the surface, it looks like the Fundacion got a good deal. In fact, it is a win-win for both sides. It was a divorce that needed to happen. Though the Fundacion wanted to get out of the business it would also have known it held some strong cards in that Fonterra needed to get rid of it. The question now is whether the divorce will help create a path for Fonterra to exit Chile. Under Fonterra’s new strategy of being a marketer of NZ milk rather than a global force in dairying there is no reason for it to be in Chile. In recent years Fonterra has demonstrated very clearly it does

not understand Chile and it has been seriously outperformed both by local co-operative Colun, which is now the market leader, and also by Nestle, to whom Fonterra has been losing milk supply. Fonterra’s overall profits in Chile have been declining each year as it dropped from first position to third position in market share. The first step could be to put Soprole and Prolesur together as one business. They depend on each other and neither is saleable without the other. Once Fonterra has complete ownership of Prolesur the book value of all of Fonterra’s Chilean assets will be about $650m. The Chilean assets do not show up anywhere in Fonterra’s accounts because they are not separately listed. Instead, the asset estimate comes from direct analysis of the Soprole plus Prolesur accounts published in Chile. However, the various components all have to be there somewhere, built into the Fonterra’s aggregated assets, liabilities and equity. I have previously written about how Fonterra’s Chilean assets are performing poorly. Fonterra must undoubtedly know that reality, though for a long time its directors seemed oblivious to what was happening, with loss of supply and loss of market share. The question is whether any Chilean company will now come up with the money to buy it out and if so, how much money. My Chilean friends have been telling me none of the other dairy companies is likely to want to buy Soprole so it probably needs to be

JOINING: Fonterra firms Prolesur and Soprole could be merged because they depend on each other and neither can be sold alone.

a non-dairy food company that wants to diversify. However, Chile is in social and economic turmoil. It’s almost two months since I flew out of Santiago and looked across at a city that was burning from multiple fires. I had waited in an overcrowded airport for 24 hours with aircrews unable to get to the airport because of the widespread rioting and consequent curfews. The recent Chilean rioting and social upheaval have come as a great shock to the Chilean people who, since the ousting of military dictator Augusto Pinochet, had seen 30 years of peace and economic growth in a democratic framework. In recent years Chile has had the highest living standards in all of South America. The poor and lower middleclass people have now rebelled. Democracy by itself is not enough if it does not deal with entrenched inequalities. In the current climate finding a buyer becomes even more difficult. Fonterra might, therefore, have no option but to hold on in the meantime. Right now there are parallels in Fonterra’s Chilean and Australian operations with both entities

struggling and having been outmuscled by competitors in a difficult operating environment. Whereas elsewhere in the Fonterra business there have been asset revaluations and hence book losses that have been brought to account, there is more red ink yet to show up for both Australia and Chile. Fonterra has recently reported that across its overall business it is on track for modest normalised profits this year. However, revaluations are treated as oneoff events not considered part of normalised profits. That is why Fonterra could still face a situation this year, just like last year, with an overall loss despite making a normalised profit. In terms of what is real and what is theoretical, it is the overall profit or loss and not the normalised profit or loss that is the bottom line.

Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com

From the Ridge

Steve Wyn-Harris

A NEW year, a new decade. Well maybe not. There is some debate among the intelligentsia that the new decade is this time next year. After all, a new-born child is not one until a year after its birth. But I don’t care. Remembering to write 2020 is enough of a challenge. It looks like a new decade to me. Now that I think of it, the days of remembering to write the new year on cheques is long past. I might write one cheque a year at the most, having used internet banking for nearly a decade. I don’t write letters

but am a prodigious emailer and they don’t require a date. Texts don’t need a date. When you think about it, writing the date and remembering it’s a new year is a thing of the past. It was 20 years ago we camped on top of Marlow Hill with several mates and all our kids to watch the new millennium come into being. We might have been a year early but we weren’t troubled about splitting hairs and nor was anyone else. We counted down as we watched across Central Hawke’s Bay and wondered what impact Y2K would have. No lights went out, no explosions, nothing other than fireworks on other hilltops. Only Helen’s digital camera refused to take any more photos until reassured the world had not come to an abrupt end. It was cold that night with a brisk northerly blowing at us. This New Year’s Eve Jane

and I spent with friends at a beach. It was chilly as well with one of the causes being a cooling effect from the smoke from the Australian bush fires in our upper atmosphere reckoned to lower our recent temperatures by up to two degrees. There’s some irony in that fact given the 30C to 40C days the Aussies are experiencing, which, along with the winds and ongoing drought, have fanned these appalling fires. However, they have again shown how formidable they are on the cricket field on their own turf. I know a lot of folk who went to the Boxing Day test in Melbourne and I envied them at the time. One mate left a grumpy wife and daughters behind as he winged across the Tasman on Christmas Day. I did something rash myself. I’ve always been anti-gambling. Puritan even. Not from a religious perspective, just because

I reckon it’s a mug’s game. The house will always win. You want to have a decent gamble? Buy shares in Sky City. Better to work for your money than think you will get lucky doing it easy. I’ve never placed a bet, nor have I bothered to buy a Lotto ticket. But after Perth I was sure the Black Caps would lift themselves. I heard the odds for a draw were seven to one. I agonised whether to break a lifelong pledge. I decided it would be the easiest $700 I’d ever make and sought advice on how to place a bet. Now $100 poorer, I’ve learned my lesson and won’t ever trouble the TAB again. I watched a red sun sink below the eastern hills on New Year’s Eve. On a hunch I rose early and went down onto the beach at dawn on this first day of the new year. Sure enough, a blood-soaked sun rose up from beyond the waves. Its light refracted through smoke from fires over 2000 kilometres to our west.

Great forests, wildlife, homes, farms, livestock and even people’s ashes wafting on the wind. All that pain and anguish and yet here was a marvel of nature. I was joined by a man walking his dog and we stood and watched that crimson orb rise. “All in a hot and copper sky, the bloody sun at noon, right up above the mast did stand no bigger than the moon.” A stanza drubbed into my mind by a headmaster determined to teach me some worth. “Coleridge,” said my beach companion. “The Rime of the Ancient Mariner.” “Perhaps it is indeed the end of days,” I said to my literary mate. “In which case maybe we should make the most of this day on the off chance.” He continued his walk with the dog and I went back to sit and watch that sun climb on its celestial path.

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

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World

28 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Infernos devastate dairy farms Richard Rennie richard.rennie@globalhq.co.nz THE devastating fires raging through rural New South Wales and Victoria might be the final straw for many dairy farmers already crushed by three years of relentless drought. As images of dazed dairy cattle wandering state roads seeking food and water filter out an industry leader there says the implications for the industry’s long-term future are dire. “Through the southern NSW region there are about two million cows and 8m sheep and a high proportion of those cows are dairy. “Down on the south NSW coast they were trying to maintain herd sizes as they had enjoyed some coastal rain down to Bega and Cobargo,” industry group Dairy Connect chief executive Shaughn Morgan said. But he fears the fires after some tough seasons will push some farmers to the brink, both mentally and financially. The fires also brought a tragic personal blow for many in the NSW dairy community after the deaths of Patrick and Robert Salway in Cobargo, respected father and son dairy farmers who perished protecting their family home. The situation through southern NSW remains very fluid as fires are far from out. “In many areas pastures have been completely burnt out, we have roads closed and no electricity for milking. “One of our members was not able to milk his herd for 60 hours so mastitis will be an issue and

milk tankers are not able to access many areas.” Diminished water supplies and damaged water pipes are also a major problem for farmers wanting to water surviving stock. The Bega region is home to the Bega cheese brand and farmers also supply French dairy processor Lactalis Australia.

In many areas pastures have been completely burnt out, we have roads closed and no electricity for milking. Shaughn Morgan Dairy Connect ABC Rural is reporting apocalyptic scenes through the region with stock literally exploding from the heat, cows with burnt teats unable to nurse calves and a dire shortage of feed and water for surviving animals. Some early estimates have put cattle losses possibly as high as 450,000 throughout all affected areas. Any loss in dairy cow numbers exacerbates Australia’s evertightening milk supply. Since 2016 there has been a slide in Australian dairy cow numbers. The herd was already expected to be 1.44m this year, down 10% on 2010-11. Total production was down 9% for the 2017-18 year as farmers were squeezed by record high

DEVASTATION: Fires have killed stock, burned pasture, cut off power for milking and blocked tanker access to Australian dairy farms.

water prices and feed costs. The industry exported 35% of production last year, a decline of 5% in volume on the year before. “Here in NSW it is a fresh milk market and this will impact on supply, as to what extent it’s hard to know just yet,” Morgan said. ABC Rural has reported farming

leaders calling for supermarkets to raise their prices for milk to help farmers generate enough income to try to recover from drought and fire impact. Southern NSW has in the past been considered too lush to qualify for government help. Morgan said the disaster is far

from over with the region gearing up for another intense heatwave likely to inflict more losses. “This will not be going away soon and farmers are still facing the possibility of further stock and infrastructure losses. “This is a vast tragedy in the making.”

Livestock slaughtered in fires’ wake Richard Rennie richard.rennie@globalhq.co.nz FIRES continuing to ravage Victoria and New South Wales have claimed hundreds of thousands of livestock Australian farmers might struggle to recoup in coming years.

We may have lost 2% and we are not even halfway through the fire season yet. Matt Dalgleish Mecardo Commodity analysts at Mecardo say millions of the 8.6 million sheep and 2.3m cattle in the two states are likely. They account for 12% of Australian sheep and 9% of cattle. Mecardo analyst Matt Dalgleish said it is difficult to determine exact numbers. Losses have been calculated at an average of 20%. Should these figures prove to

be borne out Australia stands to lose 1.7 million head of sheep and 450,000 cattle. “We have managed to map the six key areas in NSW and Victoria that have been significantly impacted since early December. There are parts that are still burning so those losses may continue to increase yet.” The calculations are for four pastoral zones in NSW and two in Victoria. The Northern Tablelands in NSW has the highest number of stock with almost 700,000 cattle. If the calculated losses are borne out the fires could wipe out 2.5% of the country’s sheep and almost 2% of cattle. “This comes in a year that was already going to be tight for livestock numbers. Farmers have been running down flocks and herds for the past year due to the drought and we were already forecasting it would be a scramble to restock anyway. “We may have lost 2% and we are not even halfway through the fire season yet.” Farmers and vets expect even without any further immediate fire losses the toll will mount in coming weeks as livestock

NSW and Victorian fires and potential livestock impacted

succumb to the effects of heat, burns and smoke inhalation. There is also an enormous animal welfare issue arising as farmers with burnt pastures and fences and no operable water supplies struggle to keep surviving stock alive. In Victoria field teams are

assessing properties to address animal welfare issues, including euthanasing stock. Dalgleish said climate predictions made for the country a decade ago have proved to be spot on. “My concern is if we are at the beginning of a new climate cycle

in Australia. We used to have a 20year time span of four to five years of wet, some dry and then normal in between. It gave farmers time to restock. “If that dynamic is shifting, with 13 years of drought, you don’t have time to restock with cattle in particular.”

FARMERS WEEKLY â&#x20AC;&#x201C; January 13, 2020

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

TE ONE A MARA - IF SIZE AND CONTOUR MATTER, LOOK NO FURTHER. 465 State Highway 49, Tangiwai Seldom does the opportunity arise for the astute investor to secure such a diverse property with scale, favorable contour, a stunning scenic environment with grand views out towards Mt Ruapehu and surrounding countryside, plus the luxury of having the additional leased land on your boundary. Currently a productive 345,000kg/MS, 800 cow herd (5yr average) standalone dairy unit that consistently defies the critics year on year. Comprising of 512 Ha total (448 Ha effective) plus the 278 ha of lease support land on which the vendors additionally winter 1000 dry, replacement and young stock from the dairy farm as well as their Manawatu farms. The free draining volcanic soil profile opens up for diversification from other farming practices, or to run in conjunction with the existing model with the likes of market gardening from either root crop vegetables, Brassicas, legumes, cereal crops or a beef, sheep and deer breeding and fattening unit. Quality improvements include a 60-bail rotary shed with concrete yard constructed in 2007, wide well maintained race access, reticulated water supply throughout the property with the required resource consents in place and 3 dwellings with the main 4 bedroom home built in 2007. Located only 5 km west of Waiouru or 20 minutes from either Ohakune or Taihape. Te One A Mara will be available for inspection from the 12th January 2020 by appointment.

512 Hectares Tender

nzr.nz/RX2076585 Tender Closes 11am, Thu 27 Feb 2020, NZR, 1 Goldfinch St, Ohakune. Jamie Proude AREINZ 027 448 5162 | 06 385 4466 jamie@nzr.nz NZR Central Limited | Licensed REAA 2008

Lake Taupo 59 Watene Lane Grace, space and elegance Experience a taste of extraordinary where the grace, space and elegance of a 400sqm (more or less) traditional English style home blends seamlessly with contemporary finishings. An exceptional offering providing multiple options perfect for farmers who may be looking to retire but still want the privacy, space and options that this property has to offer. Set on 5.3ha (more or less) which is sheltered and well kept, it presents possibilities for a mini-orchard, keeping a few cattle, sheep and horses or subdivision potential (subject to consent). Perfect for family or hospitality featuring a country-style kitchen, formal /casual dining and lounge areas opening to patios, in-ground pool and tennis court. A unique property only a short drive into town.

bayleys.co.nz/2651926

Tender (unless sold prior) Closing 12pm, Fri 7 Feb 2020 44 Roberts Street, Taupo View by appointment Alison Whittle 021 961 114 alison.whittle@bayleys.co.nz WESTERMAN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY â&#x20AC;&#x201C; January 13, 2020

RURAL 129 Main Street Pahiatua pahiatua@pb.co.nz Office 06 376 8486

Property Brokers Pahiatua Ltd Licensed under the Real Estate Agents Act 2008

Hirawai - 603 ha

PRELIMINARY NOTICE WEB ID PR73645

DANNEVIRKE 235 Otope Road An exceptionally well located intensive finishing property 5 km east of Dannevirke. Featuring an estimated 510 ha of tractor country, including 70 ha of alluvial flats along the boundary of the Manawatu River. An aesthetically pleasing property with well tended wood lots & native plantings completing a highly productive property. Infrastructure includes a centrally located 5 stand woolshed & covered yards, 3 x cattle yards, 2 smaller

woolsheds & satelite sheepyards all serviced by a central lane way. Accommodation is provided by 3 homes with a recently refurbished 4 bedroom family home. Hirawai has benefited from an extensive development programme over the last 3 years coupled with the property's superior soil types, fertility and infrastructure. Viewings & information from 20th Jan 2020.

TENDER

VIEW By Appointment

Jared Brock

TENDER closes Thursday 5th March, 2020 at 2.00pm, to be submitted to Property Brokers, 129 Main Street, Pahiatua

John Arends

Mobile 027 449 5496 Office 06 376 4823 Mobile 027 444 7380 Office 06 376 4364

Jim Crispin

Mobile 027 717 8862 Office 06 374 8102

pb.co.nz

A real change in real estate. The Property Brokers and Farmlands partnership means great things for provincial real estate Together our combined strengths complement each other to create a unique offering: - A nationwide network from Kaitaia to Invercargill - Over 700 staff across 64 locations dedicated to real estate - A deep understanding of the land with market-leading expertise in property sales and marketing Bigger networks, more buyers, better results. For more information call 0800 367 5263 or visit pb.co.nz/together Property Brokers Ltd Licensed REAA 2008

Proud to be together

Real Estate

FARMERS WEEKLY – January 13, 2020

farmersweekly.co.nz/realestate 0800 85 25 80

Do you want your farm SOLD? With over 20 years collective experience in dairy farm sales in New Zealand and Australia, Les could have the solution for the sale of your dairy farm! ARE YOU LOOKING FOR ANSWERS?

Sallan Realty

• What about my herd and stock? • What has been sold lately? • What will it cost me?

Google ‘Sallan Realty’ Your Farm Sales Specialist

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• What is my farm worth? • How should I sell it? • Are there any buyers out there?

LES CAIN 0274 420 582

Licensed Agent REAA 2008

Location + Land + Potential = Opportunity

Accelerating success.

Reach more people - better results faster.

Total area of 146.5414 hectares. Production last season 155,000kg MS, target this season 165,000kg MS from 340 cows rearing 100 calves, 1st August calving date. Contour is flat to easy rolling, well raced and fenced into 40 paddocks, strong pastures with summer and winter crops, water from bore, 63mm main line, 50mm feeder. Farm buildings, 40 aside herringbone shed in excellent condition plus a wide range of support buildings. Main home has 4 bedrooms, open plan living with office and set among mature grounds. Farm cottage has 3 bedrooms. This is a well presented property in a great location.

colliers.co.nz

Ashburton – 6 Harrison Street, Allenton

Land is the biggest asset to any farming business so it pays to stay up to date with the market. Connect with the right audience at

farmersweekly.co.nz/realestate

This four bedroom home faces north-west for all day sun, and offers a large kitchen, dining and lounge areas with outdoor access for summer BBQ’s. The established lawn and garden areas include a well, pump and irrigation system to ensure they stay lush all year round, while storage is taken care of with ample cupboards, an internal garage, large double external garage/shed and dual workshops/sheds. Act quickly to secure the opportunity to put your own stamp on this sub-dividable private oasis!

For Sale Deadline Private Treaty 3pm, Tuesday 28 January 2020 (unless sold prior) at Argyle Welsh Finnigan, 201-203 West Street, Ashburton

• 2249m2 section • sub division potential (into multiple lots) • Dual entrances • Established setting • Private and secure

Alison Bell M: 027 316 6336 (from 13 January) E: bellanz1971@gmail.com

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THE DESTINATION FOR RURAL REAL ESTATE

After 44 years in one family this rare property has come to the market. Located near the heart of Ashburton (within two minutes walk to the high school, domain, hospital) and sited on a private 2249m2 back section with dual entrances, the possibilities are endless – subdivide, develop or create your own sanctuary.

2249m2

Agri Job Board

FARM BUSINESS MANAGER OPPORTUNITIES

Exciting Opportunity in Hawke’s Bay Become the new Arohiwi Station Farm Manager. For further details search Arohiwi on seek.co.nz

• Full financial and farm management responsibility • Roles where the buck really does stop with you • Canterbury and Waikato opportunities

(1100ha hill country station)

• • • •

With one opportunity in the Waikato and another in Canterbury these roles are supported by a skilled administrative and operational team who provide expertise and systems to guide your development into the role. Spectrum Group takes pride in developing great people, so while experience is important, attitude is essential – if your referees tell us that you are enthusiastic, driven and results focused, this may be just the opportunity to fast-track your management career.

27km to Gisborne on a tar sealed road 7000 stock units Comfortable 3-bedroom house School bus 500m from the gate

The general work consists of fencing and weed control with 70% stock work and 30% general work. To discuss the position phone Merv Utting 06 867 0361

Canterbury Farm Overview • 1200 cows • 320ha dairy platform plus 40ha self-contained support block • Rakaia district • 50-bail rotary with ACRs • Irrigation via a combination of pivots and roto-rainers • Recently upgraded fencing and stock-water system • Five full-time staff reporting to this role

This is an interesting job and you will be working with a very congenial team. Applicants must be honest and trustworthy and drug free. Three references are required as well as details of time spent at previous jobs. Experience with cattle is essential as well as the ability to drive and maintain tractors and other machinery.

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For all your employment ads Debbie 06 323 0765 classifieds@globalhq.co.nz

EMPLOYMENT REACH EVERY FARMER IN NZ FROM MONDAY Please print clearly Name:

Aria – permanent position

Livestock and Pasture Manager required for 370 hectare Aria sheep and beef unit, to be responsible for livestock management, feed budgeting, pasture management, and livestock sales and purchase. We are seeking a proven stockperson experienced with managing sheep and beef production and finishing, including intensively managed bull and steer cell systems and hill country sheep farming operations, and experienced with livestock sales and purchasing. Must be able to work as part of a team, and contribute to maintenance and other support activities. Quad bike experience and clean drivers license essential. Own dogs required. Must live on farm – 4-bedroom family home will be provided. Applications close 31 January 2020. Contact: Nicholas Barclay Mob. 021 260 5710 nicholasnbarclay@yahoo.com

COMMERCIAL MANAGER

ABOUT THE ROLE As Commercial Manager (Ram Breeding & Business Development) you will be responsible for the management and implementation of Headwaters ram breeding programme and growing the business by selling rams and promoting the Omega Lamb Project. This will require working closely with our ram breeding partners and external genetics advisors on a strategic and planning level as well as a hands-on involvement on the breeding properties.

Phone: Address: Email: Heading: Advert to read:

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You will also support our current suppliers and identify, recruit and support new Omega Lamb suppliers, ensuring alignment between the objectives of the farmer, their capability and the Omega Lamb Programme. This is a fantastic opportunity to join an innovative company, that is in partnership with New Zealand’s only 100% farmer-owned red meat co-operative, producing and marketing the award winning TE MANA LAMB.

farmersweeklyjobs.co.nz

ABOUT YOU Passionate about sheep breeding? Solid understanding of sheep genetics? Interested in working with farmers supplying a unique lamb product to the worlds top chefs? • You will be an agile, innovative and commercially minded person who is passionate about sheep breeding and the opportunity to work with an innovative group of farmers involved in the Omega Lamb Project. • You will have a strong understanding of the theory and practical aspects of ram breeding and confident working with genetics experts to develop and implement ram breeding strategies. • You will understand animal data recording technology, breeding values and index • You will be a natural communicator with strong relationship and business development skills.

JOBS BOARD Commercial Manager Farm Business Manager Opportunities Farm Manager Feedlot Manager Livestock and Pasture Manager

It goes without saying you will have solid computer skills. It is likely you will have an agricultural or science-based university qualification.

Shepherd

ABOUT THE COMPANY Headwaters NZ Ltd is a unique collaboration of like-minded farmers who are committed to breeding sheep that are healthier, more resilient and more productive. The ram breeding programme is the engine room. Headwaters shareholders produce TE MANA LAMB that is being supplied to top restaurants around the world through a partnership with the Alliance Group Ltd.

Shepherd General

*FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz *conditions apply

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Stock Manager

Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz

Advertisements that discriminate in any way will not be published.

Please contact Pat Watson - waimata@xtra.co.nz

GET IN TOUCH

Livestock and Pasture Manager

(RAM BREEDING & BUSINESS DEVELOPMENT) Headwaters NZ Ltd

Under the Human Rights Act, 1993, it is unlawful, apart from some exceptions, for employment advertisements to restrict applicants because of their sex, marital status, religious belief, colour, race, national origins, age, family status, or sexual orientation.

A renovated villa will be your home and a school bus is available.

You’re reading the Farmers Weekly and so are the people you want to employ.

www.no8hr.co.nz | ph: 07-870-4901

APPLY NOW Please apply in confidence with your resume and covering letter to admin@headwaters.net.nz If you wish, call Mark O’Connor, General Manager, Headwaters for a confidential chat on 027 4700 006.

A position has become available to manage a feedlot near Gisborne.

WE ARE THE SOLUTION

Spectrum Group has built its reputation through clear strategy, hard work and the opportunities it provides for its people. From training and career pathways through to investment opportunities, this is a business run by farmers with prudent independent oversight and an eye always for securing talented people.

EMPLOYMENT ADVERTISEMENTS

The cows go on to the feedlot after weaning and stay there for approximately five months after which they are spread out onto saved pasture to calve. After the cows leave, the job will involve general farm work on the 1488ha station. This work will include fence repairs, weed spraying and helping with stock work when required.

The successful candidate will: • have 4 or 5 dogs under good command • be an able horse rider on hill country • be willing and able to take responsibility

Waikato Farm Overview • 620 cows • 185ha well set up farm • Located 15 minutes from Cambridge and five minutes to Tirau • 32-aside herringbone dairy with in-shed feed system • Three full-time staff reporting to this role

Feedlot Manager The feedlot carries 700 commercial Angus cows through the winter months and duties involve mixing the feed ration and feeding out to concrete troughs. The cows are fed once a day, six days a week. This part of the job takes on 3-4 hours in the morning, the rest of the day will be spent removing dung and keeping the whole site clean and tidy. Saturdays will only require the feeding part of the job, the rest of Saturday is time off.

Shepherd General

We are looking for enthusiastic and capable operators to undertake the role of Farm Business Manager within the Spectrum Group. Successful applicants will have input into all aspects of the farm business’s operations including staff recruitment, the preparation of an annual farm management plan and the financial budget.

If you’re interested in a career in a progressive and future-focused business, log on to www.spectrumgroup.co.nz to find out more about Spectrum and log onto www.no8hr.co.nz (Ref#8HR1254) to register your interest.

FARMERS WEEKLY – January 13, 2020

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classifieds@globalhq.co.nz – 0800 85 25 80

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Return this form either by fax to 06 323 7101 attention Debbie Brown Post to Farmers Weekly Classifieds, PO Box 529, Feilding 4740 - by 12pm Wednesday or Freephone 0800 85 25 80

Noticeboard

FARMERS WEEKLY – January 13, 2020

ATTENTION FARMERS DAGS .25c PER KG. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.

BIRDS/POULTRY PULLETS HY-LINE brown, great layers. 07 824 1762. Website: eurekapoultryfarm.weebly. com – Have fresh eggs each day!!!

DEERLAND TRADING LTD DEERLAND TRADING LTD buying deer velvet this season and paying above the average. Also contractor required to buy deer velvet. Payment on commission basis. Contact 021 269 7608.

DOGS FOR SALE BORDER COLLIE PEDIGREE working pups, bred from the finest international working lines, strong eyed, working lambs at 8 wks, B-W, Phone Somerton Park Kennels 03 342 8488 or 021 264 6250. END OF SEASON clearance sale from $395. Sixty dogs in stock! Deliver, trial, guaranteed. Ask your neighbour. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553. PARAPARA/MAKIRIKIRI DOG SALE 25th January 2020 at 996 Ruatangata Road, Whangaehu. Sale starts at 12 noon. All dogs to be entered for sale with Secretary Brenda O’Leary by 18th January 2020. Email brenda.dog@inspire.net. nz or ph 06 342 7508. Hydatid cards and Parvo certs for pups must be presented. Enquiries to Duncan Atkinson Phone 06 342 6807 or Roy Pullen Phone 06 342 4010.

STOP BIRDS NOW!

P.O. Box 30, Palmerston North 4440, NZ

0800 436 566

DOGS WANTED BUYING 400 DOGS annually NZ wide! No one buys or pays more! Mike Hughes 07 315 5553.

GOATS WANTED

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

ZON BIRDSCARER

• Whole House

• No Expensive Cartridges

• Town or Tank Water

electro-tek@xtra.co.nz

• Installer Network

• Chlorine Removal

DE HORNER

Ph 09 376 0860 www.jder-cintropur.co.nz

CRAIGCO

GRAZING OR DAIRY. Looking for a suitable farm in the lower North Island. Any size up to approximately 500 acres. Experienced in leasing. Phone 027 223 6156. FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Ph Debbie on 0800 85 25 80 to book.

LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. WHITE DORPERS. Approx. 29 purebred, mixed age, white dorper ewes to be sold at the Taranaki ewe fair, Stratford, on Wednesday 15th January. Details on sales page, ratapikodorpers. co.nz. Also for sale from website 16 month white dorper rams.

SHEEP JETTERS SINCE 1992

CRAIGCO SENSOR JET

4X4 TAGALONG TOURS Bring your own 4X4 on a guided tour to discover more of the South Island.

Guaranteed Performance Save time and Money . Flystrike and Lice cost $$$ Quick to Set up . Easy to use . Job Done Robust construction. Auto shut gate. Adjustable V panels Total 20 Jets. Lambs 5 jets. Side jets for Lice. Davey Twin Impeller Pump. 6.5 or 9.0 Hp motors

06 8356863 . 021 061 1800

www.craigcojetters.com

HOLIDAYS

MOISTURE METERS Hay, Silage dry matter, grain. www.moisturemeters.co.nz 0800 213 343.

DOGS WANTED

WANTED TO BUY

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

MASSEY FERGUSON sod seeder 562 or parts in any condition. Phone Stan 07 332 2477 or 027 574 5194.

HEADING AND/OR HUNTAWAY, mainly for cattle. For work on a small hill country block. Would suit older dog as a retirement job. Northern Manawatu. Phone 0274 851 222.

SAWN SHED TIMBER including Black Maire. Matai, Totara and Rimu etc. Also buying salvaged native logs. Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954.

NEW HOMES SOLID – PRACTICAL

Tour 1: Molesworth Station, St James, and Rainbow Stations Dates: Jan 13-16, Feb 22-25, March 1-4, March 15-18, April 5-8

WELL INSULATED – AFFORDABLE Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom

Tour 2: D’Urville Island and Marlborough High Country Dates: Jan 19-23, March 22-26, April 15-19 Other dates available for groups of six or more people on request. Ph: 03 314 7220 Mob: 0274 351 955 Email info@southislandtoursnz.com www.southislandtoursnz.com

First Home – Farm House Investment – Beach Bach

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

FOR FARMERS 2103 M2A0R

Next Stop BRAZIL

31 MA TUES

FRI

WEBSITE

www.crmcphail.co.nz EMAIL

enquiries@crmcphail.co.nz PHONE

(06) 357 1644

STOCK FEED

TWO YOUNG HEADING dogs. Ready to start training. Huge potential. Phone 06 388 0212 or 027 243 8541.

T HI NK P R E B U I L T

SHEEP JETTERS

PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts. Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz

EARMARKERS

HORTICULTURE

LEASE LAND WANTED

HOOF TRIMMER

SHOP ONLINE

NAKI GOATS. Trucking goats to the works every week throughout the NI. Phone Michael and Clarice. 027 643 0403.

NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz

Phone: +64 6 357 2454

SEE PAGE 34 FOR MORE NOTICEBOARD ADVERTISING

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

Mg fertiliser For a delivered price call ....

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ANIMAL AND HUMAN healer, also manipulation on horses and dogs. 13th-18th Janaury, Kaikoura, Blenheim, Nelson, Murchison, West Coast. 20th-25th January Canterbury. 27th January to 6th February, South Canterbury, North Otago, Dunedin area, Southland and Central Otago. For more information phone Ron Wilson 027 435 3089.

w w w. e l e c t r o t e k . c o . n z

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FLY OR LICE problem? Electrodip - The magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m

DOLOMITE Water Filter Systems NZ’s finest BioGro certified

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ANIMAL HANDLING

classifieds@globalhq.co.nz – 0800 85 25 80

Noticeboard

Livestock Noticeboard

SELLING SOMETHING? Advertise in Farmers Weekly Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

FO SALR E

For Sale

TE WHANGAI ROMNEYS 600 2th ewes

Wiltshire On Farm Auction

To be presented at Stortford Lodge Friday 17th January 2020 LK0100539©

Contact: Hamish deLautour 027 447 2815 Harry deLautour 027 446 6996

11th Feb 2020 at 12pm Light Luncheon provided

Approximately

850 ewe lambs, 200 cast for age ewes, 60 2th ewes, 30 ram lambs.

STOCK FOR SALE

15 MTH FRSN BULLS 350-480kg

1019 Mangaorapa Rd. Porangahau Martin & Mary Taylor - Ph: 068555322 Emma & Andy Martin - Ph: 068555348

20MTH FRSN HERE & FRSN ANG

Email: taylors@glenbraestud.co.nz www.glenbraestud.co.nz

STEERS 400-440kg

100 15MTH STH DEVON STEERS

Terms: Cash on the day unless PGG Wrightsons current a/c holders. Eftpos available

430kg

Simon Smith, Genetics Specialist - 027 444 0733 Callum Stewart, National Genetics Manager - 027 280 2688 Sam Wright, Livestock Representative - 027 247 9035

ROM 2 TOOTH EWES

***HAPPY NEW YEAR*** www.dyerlivestock.co.nz

Ross Dyer 0274 333 381 A Financing Solution For Your Farm E info@rdlfinance.co.nz

Gore A&P Association’s

SOUTH ISLAND PREMIER STUD RAM & FLOCK RAM AUCTION Tuesday 21 January 2020 • 11am - Perendale, • 1pm - Border Leicester & Romney with sale of flock rams to follow

Wednesday 22 January 2020

your SAFETY and EFFICIENCY in the yards? Let us help you tick it off!! Get the job done faster and be able to stand up straight at the end of the day. What more could you want? We will be at Southern, Northland, Central Districts and Mystery Creek Field Days in 2020

™

0800 227 228 www.combiclamp.co.nz

South Island - Stuart 027 435 3062

• 1pm - Other breeds: Texel, Dorset Down, Southdown, South Suffolk, Poll Dorset, Suffolk, Hampshire & Charollais with sale of flock rams to follow Catalogues available from:

Deliver your stud stock messaging to every farm letterbox nationwide with a weekly publication that farmers choose first for news, opinion, market updates and even their own advertising.

www.goreapshowgrounds.co.nz 03 208 6441 or 027 374 3314 E: goreapsecretary@gmail.com

LIVESTOCK ADVERTISING

with Farmers Weekly

For further information contact our Noticeboard sales team on 0800 85 25 80 or email livestock@globalhq.co.nz

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

To advertise Phone HANNAH GUDSELL 0800 85 25 80 or email livestock@globalhq.co.nz

2525 STUD STOCK

HAPPY NEW YEAR!!! Is your New Years resolution to improve

Sale

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A range with something to suit everyone.

• 11am - Southern Texel Ram

farmersweekly.co.nz

Livestock Noticeboard

FARMERS WEEKLY – January 13, 2020

livestock@globalhq.co.nz – 0800 85 25 80

SALE TALK

5TH ANNUAL

SOUTHDOWN RAM SALE

When the emergency services arrive the coach is empty and there’s no sign of the passengers.

Friday 21st February 2020, 1pm Inspection from 11am On Account of A D Gillespie

The farmer is there with his tractor so they asked him what happened to all the politicians.

56 McGraths Road, Oxford We will offer 60 Southdown Rams Contact

The farmer said, “I buried them.”

Brent Macaulay (RLL) 0212 200 850 Aaron Leckie (RLL) 0274 730 808 www.rurallivestock.co.nz

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Anthony Cox (RLL) 0272 083 071

Catalogues available online

Check out Poll Dorset NZ on Facebook

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!

At election time a coach load of politicians runs off the road and crashes into a field.

They were taken aback, so they asked, “They were all dead then?” The farmer said, “Well, some of them said they were alive but you can’t believe anything a politician says can you?”

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@globalhq.co.nz with Sale Talk in the subject line and we’ll print it and

INVER & LITTLE RIVER STUD DISPERSAL SALE

credit it to you.

Friday 7th February 2020

Conditions apply

Viewing from 10am

A/c Stuart & Theresa Sinclair ASHBURTON SHOWGROUNDS

Sale commencing at 12.30pm

Cheviot Ewe Lambs

FRIDAY 17th JANUARY 2020

Suffolk Ewes

12PM START

Suffolk Ewe Lambs

Special Entry on Account

South Suffolk Ewes

450 x 2 tooth Coopworth Ewes

South Suffolk Ewe Lambs

Long history of Ashgrove FE Gold

Talk to one of our 180 accredited assessors from 7 livestock agencies about listing your stock on bidr.

NZ’s Virtual Saleyard

All enquiries contact: Dave Anderson – 027 498 1201

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Breeding

Go to bidr.co.nz and click on the link “Find a bidr Assessor” or contact the bidr® team on 0800 TO BIDR.

For further information please contact:

www.carrfieldslivestock.co.nz

Your source for PGG Wrightson livestock and farming listings TE KUITI EWE FAIRS 16th January, 12pm start Te Kuiti 2th Ewe Fair

17th January, 12pm start

A/C Belvedere Partnership 100 Capital Stock Romney 2th Ewes (eczema tolerant rams used for 10 years). Farm Sold. John Grainger 0274 968 150

Ewe Fair

A/C McDavitt Farms 550 Romdale 2th ewes. Capital stock. Farm sold. Have been using Raupuha Stud rams for past 5yrs. Farmed on steep coastal country. Kevin Mortensen 0274 735 858

Te Kuiti Capital Stock & 4yr-5yr-6yr

A/C Belvedere Partnership 500 Capital Stock 4 th - 5yr Romney Ewes (eczema tolerant rams used for 10 years) Farm Sold. John Grainger 0274 968 150 A/C McDavitt Farms 330 4th Romdale Ewes

A/C GB & JZ Chambers 600 Rom 2th ewes

330 6th Romdale Ewes

A/C D Petre 500 Rom 2th ewes

330 5yr Romdale ewes.

A/C HA Tucker 400 Rom 2th ewes

using Raupuha Stud rams for past

A/C FJ Barclay 300 Rom 2th ewes

country.

A/C B Fredrickson 170 Rom 2th ewes A/C N & D & L Langlands 400 Perendale 2th ewes

330 4yr Romdale Ewes

Callum Dunnett 027 587 0131

www.carrfieldslivestock.co.nz

Key: Dairy

Kevin Mortensen 0274 735 858

Feilding Saleyards Friday 17th January, 12 Noon Comprising: • Poll Dorset - 20 • Southdown - 10 • Suffolk - 10 • Hampshire - 6 • Suff/Tex -10 • Dorset D/Tex - 5 • PD/Tex - 5 • ST/Tex - 4 Contact: Ryan Shannon 0275 650 979 Simon Smith 0274 440 733

2th & MA Ewe Fair Friday 17th January 10.30am

EXPERT LOCALS. NATIONWIDE REACH.

360 Top 5yr Rom ewes

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

Other

STORTFORD LODGE SALE YARDS

A/C Kia Toa Farms - eczema tolerant

Sheep

TERMINAL RAM FAIR

Capital stock. Farm sold. Have been 5yrs. Farmed on steep coastal hill

Cattle

pggwrightson.co.nz/bidr

Total yarding 21,450 MA Ewes including 10,230 2th Ewes, 11220 MA & 5yr Ewes PGG Wrightson on behalf of Clients will offer approximately 10,570 Ewes including the following Capital Stock entries: Glenview Farming, Tangoio 370 Romney 2th Ewes Papatika, Omakere 530 Romney 2th Ewes 400 Romney 4th Ewes 380 Romney 6th Ewes 280 Romney 4yr Ewes Naumai Farm Trust, Tutira 500 Romdale 2th Ewes 400 Romdale 4th Ewes 400 Romdale 6th Ewes 400 Romdale 4yr Ewes 200 Romdale 5yr Ewes By high index St Ledger Rams, consistently scanning 180% Further enquiries Neil Common 027 444 874 Helping grow the country

LK0100834©

TUAKAU EWE FAIR

Weekly Auctions Wednesday night – North Island Thursday night – South Island

Cheviot Ewes

MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Mel Croad

Nicola Dennis

Cattle

Reece Brick

Graham Johnson

Caitlin Pemberton

Sheep

BEEF

William Hickson

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

5.70

6.00

5.45

NI lamb (17kg)

8.00

7.30

NI Stag (60kg)

8.50

10.20

NI Bull (300kg)

5.80

5.85

5.10

NI mutton (20kg)

5.70

4.90

SI Stag (60kg)

8.50

10.20

NI Cow (200kg)

4.30

4.40

3.90

SI lamb (17kg)

7.90

8.10

7.10

SI Steer (300kg)

5.30

5.50

5.20

SI mutton (20kg)

5.55

5.70

4.95

SI Bull (300kg)

5.70

5.80

5.00

Export markets (NZ$/kg)

SI Cow (200kg)

4.25

4.35

3.90

UK CKT lamb leg

11.44

11.24

8.78

US imported 95CL bull

8.02

8.21

6.91

10.0

US domestic 90CL cow

7.99

7.90

6.58

9.0

Slaughter price (NZ$/kg)

$/kg CW

Export markets (NZ$/kg)

North Island steer slaughter price 6.5

Last year

North Island lamb slaughter price

7.0

$/kg CW

$/kg CW 5-yr ave

2018-19

Dairy

Aug 2019-20

Oct

Dec 5-yr ave

Feb

Apr 2018-19

Jun

$/kg CW

Aug 2019-20

Dec

Feb

Apr

Jun

Aug

2018-19

2019-20

Fertiliser FERTILISER

Last week

Prior week

Last year

2.90

NZ average (NZ$/t)

Last week

Prior week

Last year

Urea

616

650

314

315

787

813

37 micron ewe

2.65

2.75

Super

30 micron lamb

5.00

DAP

Grain

Data provided by

MILK PRICE FUTURES

Top 10 by Market Cap

CANTERBURY FEED WHEAT

Company

YTD High

Meridian Energy Limited (NS)

4.9

5.15

YTD Low 4.9

21.5

22.65

21.5

7.75

480

Fisher & Paykel Healthcare Corporation Ltd

7.25

Auckland International Airport Limited

9.01

9.21

8.81

440

The a2 Milk Company Limited

14.8

15.05

14.37

Spark New Zealand Limited

4.55

4.33

400

Ryman Healthcare Limited

16.35

17.18

16.24

Mercury NZ Limited (NS)

5.15

4.93

360

Port of Tauranga Limited

7.6

8.08

7.55

$/tonne

$/kg MS

Oct

7.0

Coarse xbred ind. Jun

8.5

5-yr ave

(NZ$/kg)

Apr

9.5

6.5

WOOL

5.5

Feb

South Island stag slaughter price

7.5

8.0

5.0

6.75 6.25 5.75

Feb-19

Apr-19

Jun-19 Sept. 2019

Aug-19

Last price*

WMP

Nov-18

Jan-19 Mar-19

May-19

Jul-19

Sep-19 Nov-19

CANTERBURY FEED BARLEY Prior week

3110

3070

vs 4 weeks ago 3290

420 400

SMP

3060

3070

2970

AMF

4750

5175

Butter

4000

4150

Milk Price

7.35

7.44

WMP FUTURES - VS FOUR WEEKS AGO

7.09

43.82

42.19

Listed Agri Shares

YTD High

YTD Low

14.8

15.05

14.37

Comvita Limited

3.19

3.25

3.15

Delegat Group Limited

11.6

12.1

11.4

4.06

1.88

1.91

1.88

Marlborough Wine Estates Group Limited

Jan-19 Mar-19

May-19

Jul-19

Sep-19 Nov-19

WAIKATO PALM KERNEL

5pm, close of market, Thursday

The a2 Milk Company Limited

Livestock Improvement Corporation Ltd (NS)

360

Nov-18

7.2

42.58

Foley Wines Limited

340

* price as at close of business on Thursday

7.13

Mainfreight Limited

Fonterra Shareholders' Fund (NS)

380

320

Contact Energy Limited

Company

440

$/tonne

Nearby contract

320

Oct-19 Dec-19 Sept. 2020

DAIRY FUTURES (US$/T)

0.8

0.196

0.197

0.195

New Zealand King Salmon Investments Ltd

2.08

2.1

2.06

PGG Wrightson Limited

2.38

2.39

2.36

Sanford Limited (NS)

8.05

7.96

Scales Corporation Limited

5.06

5.17

SeaDragon Limited

0.003

0.002

Seeka Limited

4.63

4.65

4.51

8.97

9.1

8.9

T&G Global Limited

2.93

3400

320

Synlait Milk Limited (NS)

3300

300

S&P/NZX Primary Sector Equity Index

16800

16884

16754

3200

280

S&P/NZX 50 Index

11538

11630

11538

S&P/NZX 10 Index

11237

11400

11237

$/tonne

US$/t

South Island lamb slaughter price

6.0

Dec

8.5

6.0

South Island steer slaughter price

Oct

9.5

10.5

9.0

4.5

10.5

11.5

10.0

6.5

Last year

6.5

5.5

4.5

Last week Prior week

North Island stag slaughter price

11.5

8.0

5.0

Slaughter price (NZ$/kg)

7.5

6.0

6.0 $/kg CW

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

3100 3000 2900

260 240 220

Jan

Feb Mar Latest price

Apr

May 4 weeks ago

Jun

200

Nov-18

S&P/FW PRIMARY SECTOR EQUITY

Jan-19 Mar-19

May-19

Jul-19

Sep-19 Nov-19

16800

S&P/NZX 50 INDEX

11538

S&P/NZX 10 INDEX

11237

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020 NI SLAUGHTER LAMB ( $/KG)

8.00

NI SLAUGHTER COW ( $/KG)

4.30

SI SLAUGHTER MUTTON ( $/KG)

5.55

2.5-YEAR TRADITIONAL STEERS, 565KG AVERAGE, AT FEILDING BULLOCK FAIR ( $/KG)

2.93

Chinese sales grow slowly Annette Scott annette.scott@globalhq.co.nz AN INCREASE in global meat prices in response to Chinese demand is not expected to have any direct benefit for Kiwi deer farmers. Deer Industry New Zealand chief executive Innes Moffat said, unlike lamb, there is no established demand in China for venison and nor is it a natural substitute for pork. With no demand in China NZ marketers have had to actively seek out and develop niches where they can build sales. “So, any benefit for deer farmers will not result from meat prices worldwide being driven up by demand from China for pork, beef and lamb.” The positive for NZ venison is that niches in China will likely outlive the short-term effects of the African swine fever outbreak on demand for other meats, Moffat said. The outbreak has resulted in half of China’s pigs being killed since August 2018, pushing pork prices and meat imports to record highs. DINZ understands Chinese meat imports will peak in 2022 before declining as domestic production recovers and prices ease. Venison sales in China have grown steadily over the past three or four years to the point where it is emerging as an important volume market. “The venison marketing companies with access are being very active. “Some high-end hotel restaurants now have premium venison cuts on their menus,” Moffat said. For lower priced products such as venison trim, partners in China are developing interesting products that might develop some promising sales. They include venison rolls for traditional hotpots and kofta-style meatballs. DINZ will work alongside NZ marketers and Chinese chefs this year to see where else venison could fit into Chinese culinary styles. Venison prices to farmers are averaging $8.50/kg, about $2/kg back on the

STAYING POWER: Niche venison markets in China will outlast the meat price rises created by African swine fever, Deer Industry chief executive Innes Moffat says.

exceptional schedule of December 2018, but above the previous five-year average of $7.69/kg. The price peak in 2018 was driven by a spike in demand from American pet food manufacturers for processing grades, which, in turn, helped fuel a cyclical peak in prices in the German game meat market.

Every kilo that goes into a Chinese hotpot is a kilo that doesn’t get stored frozen in Germany. Innes Moffat DINZ Moffat said in more American and German demand did not materialise, leading to unsold frozen stocks and the price correction. “Adding to this unusual set of

circumstances the 2018 game season in northern Europe was very disappointing. “It started late because of a very warm autumn leading to poor sales and the carry-over of frozen stocks into 2019.” The 2019 game season has been better with particularly good demand for chilled cuts going to restaurants. “But we await more news from European customers about frozen retail sales.” Moffat expects many retailers will have reduced their orders after disappointing sales in 2018. “It may still take some time for the carry-over of frozen stocks to clear.” European buyers will be visiting NZ marketing companies early this year with their orders for next game season based very much on how well they did in 2019. The NZ venison industry has always relied on the European market to buy frozen venison for consumption in its late autumn and winter. While that reliance has been reduced the traditional demand still exerts a big influence on prices to farmers. “That’s why marketers and DINZ put effort into developing new markets to encourage consumption of venison all year round. “Every kilo that goes into a Chinese hotpot is a kilo that doesn’t get stored frozen in Germany for sale in the traditional game season.” While NZ’s total venison exports have reduced over the past decade with a greater proportion going into nonseasonal markets like the United States the gap created in European game season demand has been filled partially by imports from Spain, Poland and elsewhere in Europe. The European industry has also made progress selling premium Cervena venison as a summer grilling item into Belgium, the Netherlands and Germany. “This remains an unusual time of the year for Europeans to eat venison so the development of this niche will take time. “But the net effect is that long-run venison prices to farmers are much higher than they were a decade ago,” Moffat said.

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Velvet aplenty but prices ease VELVET prices have eased into the new year despite exporters working hard to hold prices up. Deer Industry New Zealand marketing manager Rhys Griffiths said concern over the increasing supply of velvet has seen some importers reluctant to commit to orders early in the season. This is despite fundamental indicators remaining strong in key markets. “After a decade of reasonable increases in prices and volumes, prices appear to have eased to levels similar to what was achieved the season before last. “Last season prices went up more than most expected so this could be seen as a bit of a correction. “This confirms what we always knew, that the growth in market demand is not limitless,” Griffiths said.

Early in the season some buyers held off from taking a price position. Now most have come into the market but are taking a cautious approach, committing to smaller volumes than at the same time last year. Provelco farmer-owned exporting co-operative general manager Ross Chambers said it is a case of growing bigger not necessarily being better. Volume has increased but in bigger sticks of velvet and that’s not necessarily what the buyers are after. “There’s more product around but it’s not product the buyers are looking for so there’s a message to farmers.” Chambers said there’s no doubting farmers are good at growing velvet and have got very good at growing the bigger sticks. “Of course, that makes sense, more weight, more money, but there are limitations to that and we are testing

that right now. Pre-Christmas got quieter than usual but we are still trading velvet. “There’s been an easing but I don’t see that as unseasonal, more an awkward adjustment. “With the fundamentals the same we should all be looking to stay positive in the new year,” Chambers said. Last season about 800 tonnes was exported, up from 700t the previous season. On the back of growing herd numbers, genetic improvement and better herd management this year’s production is again expected to lift. But he cautioned there are headwinds facing the sector, pointing to trade tensions between Japan and South Korea and the trade war between the United States and China. Economic growth has slowed in South Korea, the largest velvet market.

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Annette Scott annette.scott@globalhq.co.nz

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Rapid drying gives impetus to concerns The start of 2020 has been mixed with some yards busier than ever while others have eased into the new year. In the North Island the main focus has been on cattle fairs at Te Kuiti and ewe fairs at Matawhero and Dannevirke while Puketoro Station, inland from Tokomaru Bay, held its fourth annual on-farm sale. For farmers in many regions there is mounting concern over rapidly drying conditions and that is starting to have a twofold effect on the markets as supply increases but demand wavers. Schedule adjustments over the break have also affected prices and most sales generally traded at steady to softer levels than at the end of 2019. NORTHLAND Wellsford store cattle • Two-year Hereford-Friesian steers, 396kg, softened to $2.93/kg • Yearling traditional steers, 275-376kg, held at $2.75-$2.89/kg • Most yearling dairy-beef steers, 307-322kg, held at $2.89-$2.93/kg • Yearling Angus-Friesian heifers, 281-324kg, eased and ranged from $2.76/kg to $2.92/kg • Four quality weaner Hereford heifers, 221kg, sold well at $675 A varied quality yarding of just under 330 cattle were penned at WELLSFORD last Monday. Older cattle eased and two-year dairy-beef steers, 418-551kg, made $2.68/kg to $2.82/kg. Yearling steers held for most, though heifers mainly eased. Hereford-Friesian heifers, 276-350kg, softened to $2.86-$2.90/kg, and Friesian-cross, 247-348kg, $2.39/kg to $2.59/kg. Weaner Hereford-Friesian heifers, 96-111kg, sold well at $455-$470, while Hereford-dairy, 92106kg, managed $305-$410. Nine weaner Hereford-Friesian bulls, 92kg, fetched $460. Kaikohe cattle and ewe fair • Two-tooth Romney and Perendale ewes earned $190-$200 • Mixed-age ewes traded at $140-$150 • Store lambs, approx 28-32kg, returned $90-$120 • Two-year Hereford cross steers ranged from $2.80/kg to $2.94/kg • Yearling beef-cross heifers fetched $2.60/kg KAIKOHE’S first sale for the year was a smaller affair, with around 700 ewes, approximately 400 lambs and just 120 cattle. Four-tooth Perendale ewes returned $160, with 5yr Romney at $140. Two-year heifers managed $2.60/ kg. Yearling Beef-cross and Friesian-cross bulls sold over

a range of $2.20/kg to $2.55/kg. Beef-cross boner cows managed $1.75/kg.

WAIKATO Frankton dairy-beef weaner fair • Hereford-Friesian bulls, 121-134kg, held at $590-$660 • Ten red Hereford-Friesian bulls, 113kg, held at $505 • Friesian bulls, 142-150kg, softened to $512-$515 • Hereford-Friesian heifers, 121-129kg, earned $465-$500 A smaller yarding of 760 was presented at FRANKTON last Tuesday. Bull prices eased or came back across all types. Angus-Friesian bulls, 112-113kg, made $500-$505, and 97111kg, $320-$380. Hereford-Friesian, 106-118kg, softened to $500-$595. Most red Hereford-Friesian, 131-145kg, came back to $450-$500, and 106-114kg, $400-$445. Friesian bulls, 120-136kg, dropped to $400-$435, and 112-115kg, $395-$402. Friesian and Friesian-cross bulls, 103-128kg, traded from $270 to $365. Hereford-Friesian heifers, 111113kg, fetched $430-$440, while Hereford-dairy, 90-120kg, traded at $305-$350. Frankton cattle sale • Two-year Friesian-cross heifers, 391-421kg, eased to $2.35-$2.48/ kg • Yearling Hereford-Friesian steers, 311-332kg, softened to $3.03$3.10/kg • Yearling Hereford-Friesian heifers, 377-425kg, eased to $2.77$2.85/kg • Yearling Friesian bulls, 327kg, came back to $2.57/kg • Prime traditional bulls, 567-618kg, softened to $3.00-$3.07/kg

A reduced yarding of 315 cattle was offered at FRANKTON last Wednesday. All two-year steers, 470kg536kg, traded at $2.77/kg-$2.83/kg. Two-year beef-cross and Hereford-Friesian heifers, 443-476kg, eased to $2.63$2.72/kg. Yearling Hereford-Friesian steers, 405kg, softened to $2.90/kg, as did Hereford-dairy, 334kg, $3.08/kg. Angus-cross heifers, 359-405kg, eased to $2.72$2.79/kg. Four prime Angus steers, 645kg, fetched $3.03/kg and Friesian, 568-605kg, softened to $2.75-$2.79/kg. Prime dairy-beef heifers, 464-616kg, made $2.70-$2.83/kg, and dairy bulls, 501-589kg, $2.72-$2.97/kg.

BAY OF PLENTY Rangiuru cattle and sheep • Three-year Hereford bulls, 728-777kg, sold for $3.28-$3.32/kg • Two-year Angus steers, 497kg, made $2.80/kg • Yearling Hereford-Friesian steers, 319-354kg, made $3.12-$3.20/ kg • Yearling Jersey bulls, 299-330kg, returned $3.06/kg to $3.39/kg • Prime lambs made $80-$170 Ex-service bulls were the main feature at RANGIURU last Tuesday. Two-year Hereford, 668-693kg, were $3.23-$3.29/ kg with Jersey, 486-556kg, $2.86/kg to $3.11/kg. AngusJersey dominated the 2-year steer pens and at 505kg made $2.77/kg. Most yearling steers were Hereford-Friesian with the top cut, 299kg, at $3.39/kg. Prime volume was low at 66 head. Hereford-Friesian steers, 622kg, sold to $3.01/kg, and dairy-type $2.83/kg to $2.99/kg. Boner cows lost ground as 435-524kg pens traded from $1.72/kg to $1.95/kg.

POVERTY BAY Matawhero Ewe Fair • Top FET 2-tooth Romney and Coopworth achieved $300-$322 • Other 2-tooth Coopworth traded at $260-$292, and Romdale, $230-$270 • Standout line of 450 FET Romney 5-year made $246 • Other top 5-year traded at $190-$210 Volume increased to 11650 at the MATAWHERO ewe fair last Wednesday, with Wairoa stock also included. Competition was driven by local demand from mainly return buyers. The 2-tooth market and top end of the 5-year ewes lifted, but results for the balance were mixed and many sold on a softer market. Second and third cuts of 5-year ewes varied from $132 to $187, while 6-year Romney and Romdale in medium condition returned $132-$140. Mixed-age varied, with top FET lines at $270 and second cuts, $170-$187. Matawhero sheep sale • 108 store ram lambs made $109 • The top prime wethers made $128 The second sheep sale of the week at MATAWHERO last Friday was understandably small at only 300 head. Pens were largely store lambs with a handful of prime wethers for good measure. Heavy store lambs made $106-$109, with several pens at medium weights $70-$89. Puketoro Station on-farm sale • Most Coopdale and Romdale 2-tooths ranged from $250 to $266 • Top 5-year Perendale and Coopdale ewes achieved $205-$210 • Romdale cryptorchid lambs eased to $100-$112.50 • Two-year Angus steers, 530kg, reached $3.15/kg • Yearling Angus steers, 425-440kg, made $1325-$1330, $3.01$3.12/kg The fourth annual sale at PUKETORO STATION, inland from Tokomaru Bay, continued to grow in popularity, both as a venue for top quality stock as well as a good day off the farm. The McNeil family’s hospitality preceded it and coupled with 10,500 sheep and 1000 steers it was well worth the trip for the 300 people in attendance. Ewe values were consistent throughout with just two lines of 2-tooths under $250, and most 5-year ewes at $180 and better. Top mixedage sold for $205-$210. Steers met the market for some very big lines. The best of the yearling Angus and Angus Hereford made $1380, while other yearling steers ranged from $1100-$1175.

TARANAKI

WHO’S IN? Auctioneer Shane Scott looks for bids at the fourth annual Puketoro Station on-farm sale, inland from Tokomaru Bay, last week.

Taranaki cattle sale • Two-year beef-cross steers, 515-516kg, dropped to $2.77-$2.86/kg • Hill-bred, autumn-born yearling Hereford-Friesian steers, 345kg, made $3.22/kg • Owner-bred, yearling Hereford-Friesian steers, 323kg, sold well at $3.28/kg There was a small offering of around 200 head of cattle at TARANAKI last Wednesday, and dry conditions and a drop in schedules were reflected in results. Heavier cattle continued to sell well, as 3-year Hereford-Friesian steers, 681kg, made $3.01/kg. Two-year cattle softened and 403445kg heifers dropped to $2.68-$2.73/kg.

SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020

Hereford-cross and Friesian steers, 600-691kg, earned $2.62-$2.68/kg. Weaner Friesian and Hereford-Friesian bulls, 80-122kg, softened to $350-$440, while HerefordFriesian heifers, 77-211kg, traded at $340-$600. Cross-bred boner cows, 405-464kg, managed $1.51-$1.65/kg. Dannevirke ewe fair • Top two lines of 2-tooth Romney ewes made $280-$282 • Other good 2-tooth Romney traded at $203-$248 • Top 5-year Romney held at $190-$212 A varied market played out at the DANNEVIRKE ewe fair last Thursday, as 10,700 mainly 2-tooths and 5-year ewes went under the hammer. Return buyers featured prominently and while the top lines sold at or above 2019 levels, there was selective bidding and mixed results through the balance. Third cuts of the 2-tooth Romney varied from $120 to $176, while Romdale made $227-$240 and Perendale, $210. A pen of 300 4-year Perendale ewes made $214. Five-year prices varied, with second cuts of Romney at $164-$180, and third, $120-$138. The top line of Perendale made $182. Six-year Romney sold for $138-$145, and mixed-age ranged from $115 to $202.

CANTERBURY

BIG TIME: The 15-month exotic steer fair at Te Kuiti on Tuesday saw 1000 excellent cattle penned. Of the 110 pens offered the majority weighed more than 400kg.

Yearlings sold according to quality as 400kg HerefordFriesian heifers traded at $2.71/kg though lighter types below this. Taranaki dairy-beef weaner fair • Top end weaner Friesian bulls made $540-$670 • Good quality weaner Hereford-Friesian and Speckle Park-cross bulls earned $580-$670 • Exceptional weaner Hereford-Friesian heifers, 190kg, traded at $610 Vendors needed to meet the market at last Thursday’s TARANAKI dairy-beef weaner fair. The Friesian bull market failed to meet expectations as the average price fell $20 to $460. Heavier calves held a little more resilient, although lighter calves under 120kg commonly made $340-$415. Demand for heifers continued to be soft and these made an average of $425, while the average weaner steer was able to reach $600, helped by heavier weights and those above 120kg exceeding $650.

HAWKE’S BAY Stortford Lodge prime sale • Very heavy ewes eased to $160.50 and heavy, $140-$153.50 • Light-medium ewes strengthened to $100-$106 • Very heavy mixed-sex lambs held at $181-$184 • Good mixed-sex lambs held at $130-$137 A smaller prime sheep yarding kicked of 2020 at STORTFORD LODGE last Monday. Eleven ewes managed $190.50, while very-good types came back to $130-$135. Good ewes held at $123-$129, and medium were steady to firm at $114-$120.50. A small mixed-sex lamb offering sold very well, considering reducing schedules. Nineteen top end lambs were well-rewarded at $183-$201.50. Heavy lambs traded at $139-$166, with good types steady at $130$137, and medium-good, $110-$129. No cattle were penned at this sale. Stortford Lodge store cattle and sheep • Nine 2-year Hereford-Friesian heifers, 410kg, made $2.84/kg • 14 yearling Angus heifers, 338kg, sold well at $3.18/kg • Medium to good cryptorchid lambs held at $91-$112 • Medium ewe lambs came back to $82-$90 A reduced yarding of lambs at STORTFORD LODGE last Wednesday worked in vendors favour, though the market still came back $8 overall. The top line of cryptorchid made $127, while medium ram lambs reached $109.

MANAWATU Feilding prime cattle and sheep • Jersey bulls improved 5-10c/kg to $2.70-$2.77/kg • Friesian bulls, 535-630kg, earned $2.96/kg • Heavy ewes made $147-$180 and the remainder, $81-$141

Sheep prices were generally in line with the last auction of 2019 at FEILDING last Monday. Lamb throughput remained high with half the tally heavy lines that sold in the range of $150-$165, with the balance medium-good types at $133-$149.50. The cattle section felt like a mini-bull fair, as plenty of ex-service bulls attended. Hereford, 673-750kg, sold to $3.30-$3.38/kg. Small lines of cows participated, and prices for these softened with the heavier types selectively bought at $2.16/kg to $2.37/kg. Feilding bullock fair • Traditional 2-year steers averaged $2.93/kg @ 565kg A yarding of 300 mainly traditional 2-year steers sold to expectations, though were down 30c/kg on the preChristmas market. Almost all lines made $2.89-$2.99/kg at 490-705kg, with some 555kg Hereford lower at $2.78/kg. Feilding store • Exotic yearling steers, 425-535kg, fell to $3.00-$3.10/kg • Yearling Friesian bulls, 385-445kg, were cut down to $2.55-$2.65/ kg • Exotic yearling heifers, 405-515kg, were all around $2.70/kg • Average lamb price fell to $91.50 • Top lamb price was $119.50 A big yarding of mainly yearling cattle underwent a large price adjustment. Almost a dozen pens were passed in before the sales end. Big lines of quality 425-535kg exotic steers were offered in abundance, being the strongest of this section at $2.98-$3.11/kg. The rest of the almost 800 steers were often well short of $3.00/kg – for example 385420kg Hereford-Friesian were $2.50-$2.70/kg. Two hundred 385-445kg Friesian bulls all dropped to $2.53-$2.65/kg, though some 530kg Limousin-cross did better at $2.92/kg. Exotics were a feature of the heifers too where 405-515kg all made $2.68-$2.71/kg. Few other heifers of different breeds and weights were any higher. The sheep sale didn’t fair any better. On average prices were cut by $25/hd on pre-Christmas levels for the 23,000 lambs available. Of these 2500 were passed in. The top price was well back to $119.50 with top cuts mainly $114$119, while $89-$111 covered the next set of good lambs. Anything medium was usually $74-$86 while the back-end types were usually $56-$71. Rongotea cattle • 2yr Friesian bulls, 515-525kg, eased to $2.57/kg • 18mth Hereford-Friesian steers, 412kg, softened to $2.67/kg • 18mth Friesian bulls, 355kg, managed $2.33/kg • Weaner Hereford-Friesian bulls, 80-122kg, traded at $350-$440 • Friesian boner cows, 430-583kg, traded at $1.51/kg to $2.17/kg The first sale for 2020 at RONGOTEA was dominated by ex-service bulls and boner cows, New Zealand Farmers Livestock agent Darryl Harwood reported. Three-year

Canterbury Park cattle and sheep • Prime Hereford-Friesian steers, 540-675kg, rose 7c/kg to $2.72/kg • Prime Hereford-Friesian heifers, 450-675kg, held at $2.62/kg • Prime Charolais-cross heifers, 540-623kg, made $2.86-$2.88/kg • Heavy prime lambs made $152-$202, with medium lines $152$194 Most of the store cattle at CANTERBURY PARK last Tuesday still needed time to finish, with the best-selling yearling Hereford-Friesian heifers, 353kg, at $2.84/kg. Just 72 prime cattle presented with exotic steers and heifers, 540-623kg, $2.86-$2.94/kg. Store lamb prices were softer than the last sale of 2019. The top price was $118, with mid-range types $82-$105. The market for heavier ewes remained robust; very heavy sold for $201-$235 and verygood to heavy types $164-$195. Coalgate cattle and sheep sale • Yearling Hereford-Friesian heifers, 383kg, sold for $2.35/kg • Yearling Hereford-Friesian heifers, 304kg, made $2.30/kg • Weaner Belgian Blue-cross mixed-sex, 132kg, achieved $510 • Prime Hereford bulls, 425-520kg, dropped to $2.93/kg • Very heavy ewes were $223-$251, with very-good to heavy $180$216 The sale at COALGATE last Thursday was busier than usual for this time of year. Most yearling steers were Hereford-Friesian, 296-442kg, and traded for $2.73-$2.84/ kg, while Jersey bulls, 281-293kg, made $1.88-$1.96/kg. Prime prices softened with the top steers $2.66-$2.75/kg and $2.40-$2.50/kg made by dairy-based lines. Store sheep volume was unusually high with the top lambs $124-$130 and the bulk medium lines at $92-$114. Most prime lambs were medium-good types that eased to $150-$169, with heavy types $170-$195.

SOUTH-CANTERBURY Temuka prime cattle and sheep • Prime Hereford bulls 570-630kg, lost 20c/kg to $3.06/kg • Prime Friesian bulls, 590-595kg dropped 19c/kg to $2.95/kg • Prime Hereford-Friesian steers, 510-560kg, rose 11c/kg to $2.70/ kg • Prime Angus heifers, 400-625kg, improved 11c/kg to $2.60/kg TEMUKA kicked off the new year last Monday with a decent cattle yarding. Jersey bulls returned slightly improved margins, with 509-555kg sold for $2.66/kg to $2.78/kg. Boner cow prices lost ground with Kiwi-cross, 536-612kg, $1.94-$1.97/kg. Prices for store lambs eased, with the top per head price $116, and medium lines $92-$105. The top cuts of prime lambs firmed to $180-$201, with two-thirds of the entries $130-$159. Heavy ewes were $170-$184, and medium $130$176.

SOUTHLAND Lorneville sheep and cattle • Heavy prime lambs returned $140-$145 • Heavy prime ewes earned $145-$165 • Top store lambs fetched $100-$110 • Medium prime cows traded at $1.62/kg • Yearling Murray-Grey x bulls, 331kg, managed $1000, $3.02/kg A small sheep and cattle yarding were penned at LORNEVILLE last Tuesday. With most trading on a softer market. Light to medium prime lambs eased to $100-$127, as did light to medium prime ewes, back to $72-$132. Store lambs were also discounted, with light to medium types trading at $65-$90. Weaner Hereford-cross bulls, 95-160kg, were good buying at $400-$570.

Markets

40 FARMERS WEEKLY – farmersweekly.co.nz – January 13, 2020 NI SLAUGHTER BULL

SI SLAUGHTER LAMB

SI SLAUGHTER STEER

($/KG)

MEDIUM STORE LAMBS AT COALGATE

($/KG)

($/HD LW)

5.80

7.90

5.30

100

$203-$212 high $300-$322 Top 5-year Romney FET Romney and lights Top Coopworth 2-tooths at ewes at Dannevirke Matawhero Ewe Fair

Dairy prices still rising Hugh Stringleman

hugh.stringleman@globalhq.co.nz

NTERNATIONAL dairy prices had a welcome lift at the first Global Dairy Trade auction of the new year, recovering half the losses recorded during the two December auctions. The January 7 event delivered a 2.8% rise in the GDT price index, following the shock 5.1% fall on December 17 and a 0.5% fall on December 3. Dairy farmers spent Christmas worrying the market weakness in auction prices in December was a signal of trouble for the farmgate milk price. But analysts now believe the December falls were against the steady rising trend, mainly because Fonterra increased the volumes of products on offer. “We had put the previous price weakness down to a surprise lift in planned auction volumes by Fonterra,” ASB senior rural economist Nathan Penny said. “The price rise at this auction confirms that a knee-jerk reaction to the volume announcement was the driver of the recent price fall rather than any fundamental change in global dairy market dynamics.” Penny therefore left his $7.50/kg milk price forecast unchanged, with a positive outlook. Rabobank dairy analyst Emma Higgins had also increased her forecast from $7.15 to $7.60 before the unexpected December GDT result. That was in response to Fonterra’s early December updating of the seasonal forecast range, now $7 to $7.60, and Rabobank’s own assessment of a steady supply-demand picture around the world. Higgins put emphasis on strong demand out of China and relatively constrained supply responses from dairy industries in the big seven producing countries because of environmental and weather reasons. She highlighted the unremarkable milk collection figures in the New Zealand season so far.

CARRY ON: There has been no fundamental change in global dairy market dynamics, ASB economist Nathan Penny says.

SMP was the bestperforming product over 2019, surging around 40% over the year. Nathan Penny ASB “NZ’s dairy industry is now in a new milk production era where incremental growth each season will be the norm as opposed to the large gains we’ve seen in previous seasons. “With dairy conversions no longer featuring across the country and future challenges to existing stock numbers via environmental legislation, the weather will play an even more important role in determining the degree of production needle movement.” Skim milk powder is in the spotlight, taking over from butter, she said.

“Now that European Union intervention stocks are a thing of the past we have seen SMP prices shoot upwards.” Penny observed the 5.4% rise in SMP in the January 7 GDT almost recovered the 6.5% fall in December and prices paid for contracts with longer delivery periods equalled those of whole milk powder, around US$3200/ tonne. The Oceania average SMP price (NZ and Australian Fonterra products) was US$200 or 6-7% higher than paid for United States products. “SMP was the best-performing product over 2019, surging around 40% over the year.” For the other major dairy commodities, butter prices rose 3.7% in the January 7 GDT, anhydrous milk fat 2.3%, WMP 1.7% and casein 8.6%. Casein prices are US$8973 on average, with some contracts topping $9000, and are the highest they have been since 2015.

700

Ewe Fair

ACROSS THE RAILS SUZ BREMNER

Not a quiet start to the year for sales at Te Kuiti WHILE some yards ease into the new year in relative quiet there is no cruisey start for Te Kuiti with the year kicking off with cattle fairs every day of the week. The yard can lay claim to be the first cattle fair to kick off each year, with that week targeted as cattle are at their peak. Older steers and bulls began the week, followed by three days of yearling steers and finishing with yearling heifers and bulls on Friday. Tallies accumulated to just shy of 5000 head and the 30 staff and stock agents working at the yards could have been forgiven for thinking it was Ground Hog Day. But each day ran like a well-oiled machine with close to and sometimes more than 1000 cattle yarded relatively seamlessly for a lunchtime start. Like all sales so far this year the market was tested by falling schedules and drying conditions and New Zealand Farmers Livestock regional manager Alan Hiscox said while crowd sizes were not as large as usual vendors still went home reasonably happy. “Cents per kilogram levels were back on last year but, overall, the cattle were heavier and thus vendors still got well paid. King Country prior to January was enjoying great feed conditions but two weeks of very dry winds have had an effect on farmer confidence.” Monday played host to bullocks and South Devon, 700-735kg, made $2.90/kg and Angus, 620-655kg, $3.05/kg. Beef-Friesian, 480-585kg, returned $2.80-$3/kg. The first yearling steer day was for exotic cattle, and Charolais, in particular, were sought after. Hiscox reported they were some of the best cattle seen for years. “Of the 110 pens offered weights were still over 400kg by pen 70 and prices were consistent at $3.15-$3.20/kg.” Angus and Angus-Hereford steers, 400-460kg, made $3.20-$3.40/kg on Wednesday with lighter lines at $3-$3.30/kg. Hereford-Friesian featured at the Thursday yearling steer fair and at 440-500kg made $2.78-$2.90/kg while lighter lines traded at $2.80-$3/kg. suz.bremner@globalhq.co.nz

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700 WATT

Rural Fire A guide on how to manage the risks

INTRODUCTION

Wildfire risk is increasing Climate change induced higher temperatures and wind speeds, together with lower humidity and rainfall, will bring us more wildfires. In most parts of New Zealand there will be longer fire seasons and, in some places, extreme fire weather will occur up to three times more often. This means thereâ&#x20AC;&#x2122;s a potential tipping point into the super-fires experienced overseas, which are larger and hotter, with a different dynamic behaviour, making control much more difficult, dangerous and costly.

These guidelines are meant for farmers, owners of woodlots and contractors. They are general in nature because how much risk an owner or contractor is willing to accept will vary, depending on their individual circumstances, resources and risk assessment.

In spring and early summer, owners and managers should work with local Fire and Emergency NZ (FENZ) staff to understand their wildfire risk, and then undertake a fire risk analysis and, if necessary, have that incorporated into the FENZ fire plan for that locality.

OVERVIEW

Wildfire in the rural working environment Wildfires in rural areas can kill, injure and cause huge economic loss. Several New Zealand farmers have died when land-clearing fires got out of control. Court cases have resulted in significant penalties.

While wildfires are often associated with forestry, most forest fires start outside the forest. The 2019 Pigeon Valley fire in Nelson is a case in point. It was started by sparks from a contractor discing a paddock near a forest.

The fires may be accidental, such as from using machinery, or itâ&#x20AC;&#x2122;s a burn-off which gets out of control, or someone has set the fire maliciously.

Of particular concern are semi-urban properties such as life-style blocks, where there are typically a number of outdoor fire risks and often a lack of practical experience to reduce those risks.

Wildfires do not follow property boundaries. They are driven by terrain, existing vegetation and the weather. An ember can be blown two kilometres and start a new fire.

Wildfire causes 1% spontaneous combustion 5% fireworks 6% machinery & equipment

4% powerlines 10% cigarettes

25% campfires 19% suspicious

30% land-clearing

REDUCE THE RISK

Tips to reduce the risk of wildfire Don’t let controlled burns get out of control Fire can be an efficient and economical tool to clear farmland, particularly crop stubble and scrub. You can make the burn effective and safe, if you; • Know your legal requirements. These include a possible FENZ permit, local legal covenants, DoC and Regional Council rules and local bylaws • Plan the burn and prepare firebreaks • Understand burning techniques • Note the long-range weather forecast • Advise neighbours FENZ have launched a public education website – checkitsalright.nz Go to www.checkitsalright.nz to apply for a permit online or call 0800 658 628.

Useful link: See back cover for link to Fire for Land Management

Discourage illegal, suspicious or dangerous activities • Lock gates or put barriers across vehicle entries • Make it difficult for anyone to park and burn a stolen vehicle • Discourage cannabis cultivation • Control recreational access, ban fires, or allow them only in specially prepared or designated areas • Be vigilant and report suspicious behaviour to the Police or FENZ • If necessary, use the Trespass Act

REDUCE THE RISK

Operate machinery safely One less spark − one less wildfire you can cause, whether you are driving large industrial vehicles, such as bulldozers, excavators or trucks, or you are using handheld tools, such as chainsaws, disc grinders and welding equipment. Fires can start from slashers, graders, mowers or discs hitting stones, or from vehicle exhausts over stubble or long, dry grass. It is a good idea in extreme fire danger times to stop using welders, chainsaws and slashers. Confine tractor operations to mornings when it’s cooler. Other things you can do include: • Install spark-arrester shields on diesel trucks with exhausts higher than the cab, especially when carting hay

• If your ute has a diesel particulate filter park it where there is less risk when you regenerate the fuel • Inform machine operators of the conditions outside their air-conditioned cabs • Clean all machinery regularly, especially belly pans and spaces around motors, so they are free of oil, dust, grease, grass and straw • Get rid of birds’ nests in or around motors. It takes a starling only 15 minutes to make a nest • Check your machinery’s bearings and moving parts • Carry fire extinguishers, shovels and knapsack sprayers during high fire danger periods Be particularly careful when using machinery during extreme fire danger periods. Make sure to check the fire weather and fire season status in advance.

REDUCE THE RISK

Hot-work such as welding, grinding, cutting and chainsaws • Do hot-work indoors at a designated safe location, such as a welding bay • Move fire hazards or flammable materials out of the work area • Frequently wet down the work area • Check pulleys and ropes for friction heat • 30 minutes after you have finished the hot-work, do a final check for hot spots • Confine hot-work hours to mornings when it’s cooler • Have a ‘phone or other communication device you can use to summon help Chainsaws can cause wildfires. • Let chainsaws cool down before refuelling • Sit them on a clean stump and not on the grass or pine needles • Start the chainsaw away from the refuelling site • Carry fuel in an approved fuel container. These are less likely to leak or spill fuel

See back cover for link to Hot-works Standard, New Zealand Standard 4781:1973 Code of Practice for Safety in Welding and Cutting

REDUCE THE RISK

Power lines Remove vegetation which may fall across or grow into a live wire and cause a fire. Educate yourself on the rules around cutting away growth around power lines. The Electricity Hazards Regulations 2003 specify the minimum distance for vegetation to be from electricity lines, for various voltages, and prescribe the rules for who is responsible for removing that foliage. The Growth Limit Zone in the Schedule in the Regulations specifies the minimum distance of foliage from the electricity line. This distance depends on the voltage of the electricity line, and in the case of spans longer than 150 metres, the distance from the pole or pylon as well. • • • •

Talk to the electricity line owner about keeping the line corridor clear of vegetation Do not light a fire under power lines Keep birds and vermin from nesting in and around meter boxes Get your meter box checked for ‘hot-spots’

Harvesting near electricity lines is governed by other regulations. Useful links: See back cover for link to Electricity Regulations

Distances are measured from the maximum sag and swing of the conductor (wire) Source: Transpower

REDUCE THE RISK

Check the fire weather Check NIWA’s fire weather (https://fireweather.niwa.co.nz) in your district about a week before you plan to light a fire. You should check even if it’s a restricted or open fire season, and even if you have a fire permit. Check again a few days before, and then on the day itself. The fire weather website has up-to-date local information about the chances of a fire starting. It lets you know how safe it is for different activities – to light an open fire, operate machinery or carry out hot-works.

The fire danger is measured by how hot and windy it is, and has been recently. Check it more often as the risk increases. For an open fire, remember you also need to check the fire season and find out if you need a fire permit (www.checkitsalright.nz)

E T A R t the E u OD ill carruy oneed tao M an st t yo with er,

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You will have seen signs like these beside roadways. They show you the immediate fire danger and guidance on carrying out work which generates heat and sparks near grass or scrub.

REDUCE THE RISK

FENZ sets three fire seasons, depending on the district’s conditions: • open • prohibited • restricted Restricted means you will mostly likely need a permit to light a fire.

HIGH

VER YH Sc h IG be edu for le y aft e 10 ou r : er 6:0 00am jobs 0p m. or

You can still carry out the work but you need to be ready with a fire extinguisher, water, a shovel and a radio or working phone to call it in if there is a fire.

REME EXT

rk l wo ntia ied esse rr Only ld be ca y l shou d on n a m out :00a . re 10 befo r 6:00pm e or aft

REDUCE THE RISK

Encourage community involvement Well-prepared communities can reduce the effect of wildfires. Such communities work with FENZ and other landowners in spring and early summer to identify fireprone areas and reduce the risk of a fire starting in, or spreading to, those areas. FENZ can also arrange the notification, sometimes ahead of time, of ‘bad fire days’ when temperatures are likely to be high, the wind strong and the relative humidity lower than the temperature. There are some fire-wise actions; • Maintain water supplies with good signposted access • Provide tank/pump couplings or access to static water for portable pumps. During a fire you may lose mains power and electric pumps won’t work • Vehicle access needs to be at least four-metres wide and high, so fire trucks and large vehicles can get through, and then they need room to turn around to get out again

• Display your RAPID (Rural Addressing Property Identification) number at the beginning of your driveway • Keep contact numbers by your phone • Teach your children to dial 111 in an emergency • Have a battery-powered radio in case of power cuts • Regularly check your boundaries for rubbish or excessive weed growth • Clear flammable vegetation away from buildings

Any rural stakeholder, especially a farmer or small-scale forest owner, is welcome to talk with FENZ at the beginning of each fire season. Useful link: See back cover for link to FOA/FFA Fire Management Guidelines.

MINIMISE THE EFFECTS

Tips to minimise the effects of wildfire Prepare for fire

Be a good neighbour

Fires can begin when you are not around, so prepare a fire response schedule and give it to your nearest FENZ local area office and a helpful neighbour, for when you are not on site when a fire starts. The schedule will tell them − • Who to contact • How to access the property • Where to find water supplies • Hazards on the property such as weak bridges, unsuitable roads for a heavy vehicle or dead end roads

Be an advocate in your community – educate yourself about fire prevention and promote fire permits and adherence to their conditions among your neighbours. Supportive neighbours are especially important when the landowner is an absentee owner. You are more likely to hear about fire problems from good neighbours than from official agencies. Don’t cause a smoke nuisance to neighbours and time burn-offs for when they are not home.

MINIMISE THE EFFECTS

Check your access points and signage Internationally, most wildfire fatalities occur because people get trapped by fire during the first two hours of the fire getting out of control. In New Zealand, many of our private rural roads and bridges are not constructed to the same standards as public thoroughfares. Most fire trucks are limited to well-formed roads and will not be taken onto private land unless it is safe. It is vital that your property is clearly signed – bridge weight limits, water point access and RAPID number – so that fire fighters can to get to your property in an emergency. Make sure tracks and roads are clear for access by fire fighters. FENZ staff can advise on signage.

Be a good housekeeper • Remove anything flammable from under trees on forest margins, public road edges, ridgelines or property boundaries • Prune boundary trees and take the prunings away • Clear trees and scrub near buildings • Keep gutters clear of leaves • Cut dry grass under electric fences and check for arcing • Remove flammable rubbish • Store plenty of water nearby • Stock up with fire extinguishers in buildings and vehicles • Store fuel and chemicals securely and separate from other buildings For tree operations, try to use reputable, Safetree certified, forestry contractors who follow professional standards by keeping their machinery clean and well maintained and have fire extinguishers. Check that they have appropriate safety standards and insurance cover.

SELECTING PLANTS

Not all trees burn the same Select low flammability trees and shrubs for shelterbelts, fuel breaks, or amenity planting close to buildings. All plants can become a fire hazard though if they are water stressed or dead. Fire-resistant plants have; • Leaves which are moist and supple and don’t ignite easily • Not much dead wood accumulated within the plant • Watery sap that doesn’t have a strong odour

lancewood

taupata

five finger

griselinia

kawakawa

poroporo

Here’s some of the best to choose. Exotics; poplars, birch, maple, willow and ash Or natives; kotukutuku, horoeka/lancewood, five finger, karamu, raurēkau/kanono, hangehange, taupata, putaputawētā, karaka, griselinia, kawakawa/peppertree, poroporo

Useful link: See back cover for link to Fire resistant trees for landscaping fire safety karaka

Manuka, kanuka and gorse are particularly flammable.

Useful link: New Zealand Poplar and Willow Research Trust http://www.poplarandwillow.org.nz/ 13

DURING AND AFTER A FIRE

If a fire does start call 111 Response

Health and Safety

FENZ is responsible for all fire response, fire suppression and mopping up. FENZ is also responsible for training for vegetation and rural firefighting.

Fire fighter and stakeholder safety takes priority over other fire response considerations.

Action on spotting a fire If you are a forest owner, rural contractor or witness to a fire; • Phone 111 immediately – not a local forest company. Give clear information to the FENZ communication centre so the right fire resources are despatched • Clearly state your address, road name and RAPID number, approximate area burnt, what is burning, what is at risk, the wind direction and strength • Only attempt to fight the fire if it is safe to do so and you are confident you can contain it Once you have provided this information; • Let your neighbours know • Move people and livestock at risk of fire or smoke • Someone should wait at the road gate to unlock the gate if necessary and give further information and local knowledge to fire fighters

Rural business operators such as farmers and forest owners, as well as FENZ, are Persons Conducting a Business or Undertaking (PCBUs) and must comply with their duties under the Health and Safety at Work Act 2015. They must, as far as reasonably practicable, consult, co-operate with, and co-ordinate activities with each other. They have a duty of care that people working on their land have the skills and level of training for their tasks. FENZ must make sure the health and safety requirements of owners and fire fighters are met. If you are trained, FENZ may ask for your help to fight the fire.

If you see a fire, phone 111 immediately.

INSURANCE

After the fire is over

Insurance One option to help mitigate wildfire effects is to transfer the risk in the form of insurance. You can insure a forestry block for fire as well as other disasters.

Landowners should be included in any post-incident review, including health and safety. Many rural district councils can assist landowners who have suffered from wildfires. They can find temporary accommodation, grazing for stock, and help with such things as reduced dump fees for fire-damaged items. They can also arrange community assistance packages.

When determining your sum insured don’t forget to include costs such as: • Replanting • Repair or replacement of plantation infrastructure • Removal of debris • Costs of suppressing the fire If a wildfire spreads from your operations, farm or forestry block to a neighbour’s property, you could be liable for the damage the fire causes. Have a liability policy to cover this potentially high cost. Get in touch with your insurance professional for further information.

Supported by

www.fglt.org.nz C/- PO Box 10986, Wellington 6143

Useful links P4 Trespass Act 1980 www.legislation.govt.nz/act/public/1980/0065/latest/DLM36927.html P4 Fire for Land Management https://www.checkitsalright.nz/reduce-the-risk/working-on-the-land/ fire-for-land-management P4 Check it’s alright before you light https://www.checkitsalright.nz P6 Hot-Works Standards https://shop.standards.govt.nz/catalog/4781%3A1973%28NZS%29/view P7 Worksafe.govt.nz – electricity-hazards-from-trees-regulations https://worksafe.govt.nz/lawsand-regulations/regulations/electrical-regulations/electricity-hazards-from-trees-regulations-2003/ P8 NIWA fire weather https://fireweather.niwa.co.nz P10 FOA/FFA Fire Management Guidelines http://nzfoa.org.nz/resources/file-libraries-resources/ standards-and-guidelines/670-forest-fire-risk-management-guidelines/file P12 Safetree website https://safetree.nz/ P13 Fuel-break planting https://fireandemergency.nz/farms-rural-properties-and-rural-businesses/ landscaping-fire-safety Victoria Country Fire – Grass Curing Guide https://www.cfa.vic.gov.au/documents/20143/202133/ fieldcard.pdf/98d0addb-d0b4-66a7-93fa-2b490e821147 Fire Prevention in Northland https://www.bing.com/videos search?q=nz+northland+fire+ video&view=detail&mid=B89F84B987CA2FB75707B89F84B987CA2FB75707&FORM=VIRE Go to https://nzfoa.org.nz/ and see Rural Fire Guide under Publications for live links to all the sites listed above January 2020