Farmers Weekly NZ April 13 2020 by AgriHQ

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Vol 19 No 14, April 13, 2020

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Image sells our meat Neal Wallace neal.wallace@globalhq.co.nz

HINA is re-emerging as a significant buyer of New Zealand beef as its families continue to use home cooking skills learned when the country was shut down to control covid-19. Many restaurants in China are yet to fully reopen and NZ beef appears to be an early beneficiary of growing Chinese retail demand as consumers look for meat from a country with a trusted food production system and a clean and green reputation. But commentators warn we shouldn’t take this interest for granted, especially when other markets weaken as Governments try to contain the virus. “China is shaping up as a bright light when our other markets are dealing with pricing pressure and downside from coming to terms with covid-19 restrictions,” AgriHQ senior analyst Mel Croad said. Data shows NZ export beef volumes to China doubled in February and March though that was affected by supply-chain disruption in February because of covid-19. March beef volumes are back a third on March last year but indications are orders are increasing because of its perceived health benefits, the ability to buy it online and ease of cooking at home.

M bovis helps covid-19 control

Beef exports to the United States held up in February and March, helped by consumers stocking up ahead of movement restrictions. A consumer report by Quantiful for Beef + Lamb said the Chinese perception of NZ and its beef and lamb strengthened during the covid-19 pandemic, aided by NZ’s battle to contain the virus and the belief our isolation makes us less vulnerable and confidence in our food production systems. Croad says China is still nowhere near returning to business as usual with many restaurants and food services yet to fully reopen though many hot pot restaurants are back in business. Restaurants have had to reduce the number of diners and rearranged seating to maintain social distancing. Croad says growing demand for NZ meat, especially beef, is also helped by our clean, green reputation and continual food safety concerns with pork following the African swine fever outbreak. With economic activity in North America and Europe weakening as covid-19 takes a grip the resurgence of China is welcome but NZ should be building on that interest. “The industry should be working to capture that. “We need to do everything we can to get market demand up and running.” Food service outlets in Europe and the US are starting to close as consumers are encouraged to stay

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LOOKING GOOD: West Coast dairy farmer Nathan Keoghan and son Spencer put their best feet forward for some farm work recently, joining in on the Formal Friday social media movement. home, meaning falling demand for high-value cuts such as French racks and loins. Those cuts are primarily sold through food service and US French rack prices have now dipped below US$9 a pound, less than at the same time last year though the price is still holding up well under the circumstances, Croad said. The average lamb flap price in China is US$6.15/lb, up from US$6.10/lb this time last year but is also coming under pressure. In February and March lamb exports to China were up 163% but back 14% between March this year and March last year.

Croad says global uncertainty will most likely see farmgate lamb prices break with tradition and start easing over autumn and winter. Beef prices are also expected to ease marginally. B+LNZ global market intelligence and research manager Hugh Good says the Quantiful study shows Chinese families are buying food on health attributes in a bid to build protection from covid-19. “Conversations show that health remains a strong driver of purchasing decisions but they are now much more focused on immunity.

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“We’re finding that claims like organic have spiked as shoppers are seeking pure, natural products believing that it’s best for children and elderly,” Good said. The resurgence of interest in home cooking is prompting Chinese to experiment and exchange recipes and ideas and they are searching for food that is convenient to cook. Increasingly, that is beef. Good says these are all signs NZ meat exports to China will recover. Hot pot restaurants are one of the few venues to reopen widely. In recent weeks people have queued for up to eight hours to get a seat.

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26 Askew is living the good life Most people hanker for the good life one way or another. Lee Askew’s interest in self-sufficiency and small-scale livestock farming was inspired by the 1970s television series of the same name.

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10 Orders flood in to start-up

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The Maker2u website is not just a short-term bridge between food producers and consumers but a cooperative revolution for direct sales.

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5 New head promises

21 City moths’ number is up

The Mycoplasma bovis eradication programme is hugely important to the engine room of the economy the new man at the helm, Stuart Anderson, says.

Kiwi researchers are pioneering a way of dealing with insect pests that will not only free orchards of them but also kill reservoir populations in urban areas without using spray.

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

Stock sale options being explored Neal Wallace neal.wallace@globalhq.co.nz STOCK agents and venders are getting innovative to ensure seasonal trading of livestock is occurring while traditional selling methods can’t be used. Some sales of weaner calves and deer are being held online but others are being arranged privately by agents linking vendors and previous buyers. Philip Wareing, who owns Arrowsmith Station in the Ashburton Gorge, had to cancel his annual on-farm weaner deer and weaner calf sales but says he is fortunate agents worked with previous buyers to ensure the stock were sold over a similar time frame to last year. “We’re very, very happy with that but it was at substantially lower prices than last year. “Having said that, they were good prices on the day.” All his calves were sold and only a few weaner deer remain but Wareing says the challenge now is to quit his cull cows and freezer ewes. “That’s a small issue now that we have got rid of our weaner deer and calves.” The cancellation of most of this year’s weaner calf auctions in Otago means agents are working to find buyers before winter. Rural Livestock’s Otago livestock manager Hamish Loe says last year they sold 10,000 calves over the period of this year’s lockdown

with extra offerings from PGG Wrightson and Carrfields. Loe said selling the calves privately is not straightforward because buyers can’t quit prime stock to make room because meat works are operating at slower speeds. But linking previous buyers with venders is proving successful.

Deals are being done but to sell 10,000 calves on one-by-one transactions without them being sighted is a long process. Hamish Loe Rural Livestock “Deals are being done but to sell 10,000 calves on one-by-one transactions without them being sighted is a long process.” Social distancing means it is difficult for buyers to view calves and when a sale is confirmed agents must maintain separation when sorting the calves. New Zealand Farmers Livestock chief executive Steve Morrison said his company is accelerating development of a new online auction system to let people bid live at selected sale yards auctions from their homes.

The technology is commonly used in the United States and Australia and he expects its release in weeks rather than months. Given the Government could impose limits on crowd sizes the system would keep numbers attending sales low without restricting live participation. “I think this has the potential to further enhance the argument that auctions should resume sooner rather than later,” he says. David Giddings of Meadowslea Angus in Fairlie is also getting creative ahead of his annual sale of 120 recorded stud females on May 6. An interactive page has been added to his website to show videos of sale lots, followed by a live-streamed open day with commentary from the vendors and genetic specialists. The sale will follow a Helmsmen-style auction. Matt Muggeridge, a co-owner of online system My Loading Ramp says his research shows upwards of 80% of farmers do not have the confidence to sell their cattle themselves. Muggeridge says My Loading Ramp operates as a livestock tendering platform for individuals or stock firms and is especially suited to selling dairy cattle. Sellers post a listing including photographs and relevant information about their cattle. Potential buyers make an offer for the seller to consider.

VERY HAPPY: Prices were substantially lower than last year but good on the day as agents offered his stock to previous buyers, Arrowsmith Station owner Philip Wareing says.

Two-metre distance rule hits stock processing capacity THE two-metre distancing rule has caused a sharp fall in meat production and needs to be adjusted, Meat Industry Association chief executive Tim Ritchie told a Parliamentary committee. He was not suggesting workers simply be allowed back in plants

in close proximity. Rather, the sector is actively thinking about how to proceed using the best science, he told the Parliamentary Epidemic Response Select Committee. Ritchie lauded the sector for developing and implementing a meat processing protocol that

provides both consistency and certainty as plants reconfigure their operations to meet requirements. However, the two-metre distancing rule has seen production tumble. Ritchie said sheep processing plants are operating at 50%

capacity while beef was operating at about 70%. Venison capacity has also been slashed. “The key now is how can we lift that throughput without prejudicing that worker safety,” he said. His sentiment was echoed by

Federated Farmer president Katie Milne, who also appeared before the committee. Milne said Kiwi farmers already face issues around feed because of the drought in many areas and people are petrified they will get stuck with stock. – BusinessDesk

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

Fieldays at whim of covid-19 Gerald Piddock gerald.piddock@globalhq.co.nz FIELDAYS could still be held this year if the Government removes its covid-19 restrictions including the ban on big gatherings. If it is not too late in the year and did not clash with other events, it could be held in some form, Fieldays Society chief executive Peter Nation said. For now it is indefinitely postponed as the organisation continues to weigh up its options. “We’ll look at the Fieldays physical event every quarter and review it. No one knows when we’re going to come out of lockdown and get back to level one. “The feedback we’re getting is that people are still looking for the physical Fieldays event to be stood up but we’re at the whim of covid-19.” Even if the Government decides to come out of lockdown the restrictions around gatherings of more than 500 people will still need to be removed, he said. “As a business were trying to work out contingencies. We’re looking out 12-18 months to see what our event potential looks like. We’re doing a lot of strategising.”

Some companies that were loyal Fieldays customers might no longer exist because of the economic shock covid-19 has caused. OPTIONS OPEN: Fieldays Society chief executive Peter Nation says it will review every three months whether a physical event can be held.

We’re doing a lot of strategising. Peter Nation Fieldays “Or there might be new exhibitors that might want to come to our event.” One of the ideas mooted is holding an online Fieldays where exhibitors would be given a virtual platform to showcase their products as they would have if the event had gone ahead as planned. Initial feedback on the concept has been pretty good in conversations with individual exhibitors. “We’re working strategically on that.” There are a few examples where such events have been successfully staged elsewhere but nothing like it has been staged in New Zealand, he said.

“It will be a bit cutting edge if we pull it off.” Technology had also caught up, making it possible for agricultural companies to showcase their products using 3D imaging, he said. On the issue of refunding exhibitors, Fieldays is continuing to work through its business contingencies. “We have an opportunity here for people to take up a different opportunity and we’re working with our customers individually and we’ve been open with our communications.”

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He urged exhibitors to contact Fieldays to discuss their options if they want a refund. “We’ve got a few options for them and we’ve been open with that in our communications.” What worries Nation is the impact covid-19 is having on the events industry. An Events Association survey showed 5000 events have been cancelled nationwide. Another 3393 events have been postponed indefinitely. He is concerned the effect that is having on the wider service industries for events – marquee and lighting companies and the

motel and hospitality industries. “For us as a very large event business that takes every marquee in NZ we’d better hope that those event businesses stay in business.” It is not just Fieldays but sporting and cultural fixtures that also use those service industries that will be affected. “That worries me, not just for my business but as a New Zealander. If you think about the fabric of our culture we’re very much an events country. “When we went to zero income on March 16 so did everyone else in that industry.”

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

Models pin down cattle and covid Richard Rennie richard.rennie@globalhq.co.nz LESSONS learned in tracking the Mycoplasma bovis outbreak are proving invaluable in dealing with the covid-19 crisis, Te Punaha Matatini director Shaun Hendy says. He is juggling the spread of the two diseases with his tight-knit Auckland University team now scattered around homes and kitchen tables largely in Auckland and Christchurch. Hendy has been on the advisory committee tasked with eliminating M bovis from the get-go. He also began nervously modelling the covid-19 outbreak early in March when he saw its spread through China and on to Italy. The covid-19 crisis has given new impetus and renewed Government attention to the lowprofile centre of excellence that might set New Zealand up well to deal with future disease outbreaks, both animal and human. “M bovis is a different disease and, of course, cattle move in a different way to people. But there are similarities. Contact tracing, for example, has been absolutely key to getting ahead of M bovis and for covid-19.” Core modelling has been based on biosecurity experiences and early in the covid-19 outbreak the Ministry for Primary Industries’ M bovis experience was called on to help get modelling data up and running.

Hendy’s team members are not disease experts but focus on the science and modelling of disease spread. They have been able to attach those skills smoothly to those who do have epidemiology and disease expertise.

Of course, we still have the economy to deal with but at least we would not be facing a devastated health care system that those countries will have to deal with. Shaun Hendy Auckland University Hendy’s first modelled prediction for covid-19 in NZ was quite apocalyptic, being based on grim overseas experiences where 10% of those with covid-19 are hospitalised. It predicted NZ could have 60,000 dead if nothing was done. The outlook was dire enough to help prompt the Government to move quickly from level two to level four lockdown. “But we have since built a short-term model due to be released soon that aims to deal with the situation we actually have now.”

He says it suggests covid-19 is controllable and every day numbers stay low steers NZ further from a grim Italy-United States scenario. “Of course, we still have the economy to deal with but at least we would not be facing a devastated health care system that those countries will have to deal with.” The revised model puts NZ in a pretty good position, albeit with the likelihood of regional lockdowns remaining in place for more infected areas. “This will be of value particularly to those rural communities that may not have had a lot of cases. They could look at coming out of lockdown sooner.” Meantime M bovis control and surveillance continues through the covid-19 crisis. “We still have a long way to go but the signs are good and I feel optimistic we will eliminate it. It’s something we moved relatively quickly on.” He expects M bovis cases will drop to negligible numbers over the next 18 months. Hendy acknowledges the grief and stress M bovis herd control has brought on farmers but believes NZ chose the right path in seeking eradication. “I think long term it is acknowledged that if it became endemic you would have to manage it with antibiotics and that is far from ideal.” Longer term Hendy sees

LESSONS LEARNT; Auckland University boffin Shaun Hendy says Mycoplasma bovis modelling has helped in developing models on covid-19’s spread.

the covid-19 crisis boosting Government support for Te Punaha Matatini and potential for this country to deepen its ability to model and predict disease outbreaks of all types. “We are also at a point where we have some great leadership, including the chief science

adviser, the director general of health and the prime minister. “We have learnt fast and the Government seems to be really good at using international best practice and modelling. Compared to Australia they did have an earlier outbreak but it’s been a bit more shambolic there.”

New head promises accountability Annette Scott annette.scott@globalhq.co.nz THE Mycoplasma bovis eradication programme is hugely important to the engine room of the economy the new man at the helm, Stuart Anderson, says. Anderson, who took up the reins as the Ministry for Primary Industries’ new M bovis programme director on April 6 said the programme is in good shape. “It is hugely important for New Zealand’s dairy and beef sectors, the engine room of our economy, that the programme gets on top of this disease. “It’s been a hard road to get to where it is and the programme at this point is in a really good shape.” But Anderson said the job is not done yet. “We absolutely need to keep the momentum at a good pace going forward. “We’ve almost broken the back of the programme but there’s work

to be done yet to achieve the end goal.” Despite other factors such as drought and the challenges of covid-19, keeping everyone together and focused will be key to achieving the eradication goal. “The programme is carrying on. We need to ensure we keep momentum. We have adapted and that does mean we have people going on-farm now only for essential service.” New processes for on-farm sampling have been developed and it continues as do planned culls. All legal notices, including Notices of Direction restricting cattle movements and Restricted Place Notices, remain in effect. Where required new notices will be issued over the phone. “We’re carrying on with the programme as an essential service. “We’re confident where the programme is at and in the way forward that we will achieve the goal. “Reducing the spread of disease

and reducing the number of farms involved in the programme remains a priority as we all adapt to living and working while the country is under level four alert.” With 10 years-experience at MPI the former director of fisheries management believes he has what it takes to the lead the programme through its next stage. “I put my hand up for it because these opportunities to be a part of such an important industry programme don’t happen every day,” Anderson said. “I have been around MPI for almost 10 years and have a number of broad experiences across the sectors.” They include a stint with adverse events and recovery. “I have a good grounding in that respect and senior leadership experience in big programmes keeping industry and stakeholders working together towards solutions that I can apply here.” Ideally, the first thing I would have liked to be doing is getting out to meet farmers and regional teams.

We’ve almost broken the back of the programme but there’s work to be done yet to achieve the end goal. Stuart Anderson MPI “I will definitely be doing that as part of my process as soon as I can. “We are hearing the new challenges under covid-19 and the uncertainty of the economy is creating added stress for affected farmers and we want to work closely with them to work through this, recognising there are other concerns as well now disrupting their operations. “I have an open approach, I like to be collaborative and be approachable. I will listen and I will make an effort to engage.

FINISH LINE: The Ministry for Primary Industries’ new head of Mycoplasma bovis Stuart Anderson says it’s been a hard road so far but the programme is well poised for a successful outcome.

“The most important part of my job to everyone in the programme is to ensure all people are empowered to deliver the goal of the programme and achieve the outcome of eradication. “And I will be accountable for my decisions,” Anderson said.

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

Wool’s backers still confident Annette Scott annette.scott@globalhq.co.nz A YEAR of reflection and consolidation has put the Primary Wool Co-operative on a positive footing but the unprecedented covid-19 pandemic overshadowed any celebration at its annual meeting, held online. In the co-operative’s 45th annual report chairwoman Janette Osborne said shareholders gave strong support to a capital raise with $1.8 million paid or committed, despite 50% of them yet to respond. “We need the remaining 50% of shareholders to respond to the capital raise so we can resume industry-good activities.” Osborne said activity has been limited but retaining 50% ownership in Carrfields Primary Wool (CP Wool) is important to ensure a solid future income that doesn’t need levies for future industry-good work. “The board is confident in CP Wool’s ability to deliver on its fiveyear strategic plan, which forges a solid path towards a positive future for New Zealand wool farmers. “We’re investing in the future of our wool and our people and we believe our product and our people have the capability to make incredible changes for the future of our industry,” Osborne said. But there will be an interval as the wool industry gets back to business after the covid-19 lockdown. Carrfields managing director Craig Carr said once there’s clarity around when non-essential

services can resume there will be more certainty for CP Wool. “Wool is not a food product. It’s a slow-moving, durable product and, disappointingly, it has not been included as essential,” Carr said. CP Wool is also a joint venture business with Christchurch-based NZ Yarn. “There will be a ripple effect that we expect will have financial implications so it’s what do we need to do to make sure we have a business when it comes out the end of it. “I think for us the wider concern is the ramifications globally for NZ wool. “Markets were actually just starting to get more demand again but obviously when factories are closed down in Asia and Europe and Eastern Europe and the United States that has a rattle-on effect to many things.” As well as the factories it affects their customers like carpet companies, retailers and textile companies. “So, for us there is a halt, potentially, in buying these sorts of products which has a flow-on effect through the supply chain,” Carr said. “No one knows but we have to be prudent to think that this halt globally is not going to favour us, which is really disappointing because we were really starting to make some significant headway. “We were on budget, we have made a lot of new initiatives and put a lot of hard work into driving new markets where we can have a real point of difference. “It’s a big unknown right now.

We’re investing in the future of our wool and our people and we believe our product and our people have the capability to make incredible changes for the future of our industry. Janette Osborne Primary Wool Co-op We’re in uncharted territory. We want to get going while the orders are there. “It will ultimately come back to consumers and their discretionary spend,” Carr said. But the agricultural industry has been lucky, Carr said. “Many of us who are farming or related to farming have been able to keep some wheels turning. “Commodity prices generally are pretty good and while there’s going to be some pain there will also be opportunity.

CHALLENGES: While there will be pain in the recovery from covid-19 there will also be an exciting opportunity to innovate, reinvent and reposition for the future, Carrfields managing director Craig Carr says.

“It is driving us to be more innovative, to be more efficient and to look at how we make

LIC cops flak for failed deal Hugh Stringleman hugh.stringleman@globalhq.co.nz

LIC’s bid to buy half an Israeli dairy technology company for more than $100 million of borrowed money has been roundly defeated by its farmershareholders. They voted almost three to one against the deal and now some are calling for LIC’s senior management and directors to hold themselves accountable. Chairman Murray King said the defeat was because of covid-19 disruption, uncertainties about offshore governance, exchange rate movements and possible impacts on Afimilk’s earnings. But shareholders who have contacted Farmers Weekly say the proposal was ill-conceived and unnecessary and the subsequent negatives mean directors were probably hoping the vote would go against them. King continued to defend the planned expansion, saying it was a significant but achievable long-term strategic investment that made strong commercial sense financially. LIC will continue to look for

ways of leveraging its worldleading pastoral dairy farming data collected mainly from in-line milk meters and animal monitoring tools such as collars. Whangarei shareholder Beth Parker said LIC wanted to spend a large amount of borrowed money in a part of the world remote from New Zealand geographically and politically. LIC said it had a “feeling” towards Afimilk, being a cooperative with a shared vision in a small, isolated country. “Afimilk would not have been driven by an emotion toward NZ, instead it would see us as a partner that can pour money into the company.” LIC appeared to be coveting the Afimilk milk metering technology and its senior management was looking outwards after restoring the trading results and balance sheet. But that was not what most of its farmer-owners wanted. Parker said thousands of dairy farmers want cost controls, basic, workable technology along with good genetics.

• • • • • •

better use of technology. “I think we are sitting in a pretty bloody good spot,” Carr said.

News

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

Plenty of positives in lockdown

You definitely need to know when to pull the pin each day.

Bruce has always loved sheep and beef farming. After 10 years managing, shepherding and taking some good opportunities he bought a block of bare land, which he ran at night and on the weekends and just got stuck in. He now manages 6500 stock units on 450ha with another 250ha leased. Not bad for a lad who only went to school to play rugby. “Obviously, there were hard years. Farming’s not all easy but I’ve learnt that a lot of farming is a mindset thing. My favourite part of the job is still shifting stock, working with the dogs, watching the stock go from one paddock to the other, heads down and

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content with what’s in front of them,” he says. Bruce has always been careful to manage his workload so he can enjoy his farming, his family and his other great passion, rugby. He played for years and now coaches. “I was still playing when I bought this land. The odd person used to say ‘What are you doing? You should be focusing on your farm’. They didn’t see that rugby is what keeps you normal. You go to training and you forget about the farm for an hour or two. It’s a really good outlet.” With the lockdown in place the rugby and the fitness sessions he runs at a local gym are suddenly off the agenda. The answer is to use technology. “We’re so lucky to have social media that connects us all like Facebook and Facebook messenger. I’m not really an expert on that stuff but I can send a message and that’s all you need to do. It keeps us connected and keeps us together.” So his rugby team is having virtual practices. “We’ve started a Facebook group to keep practising our starter moves and plays. I’ve also started a Facebook group for my fitness sessions.” Bruce reckons the biggest risk during lockdown is the potential for farmers to just keep working in the absence of normal off-farm activities. “Rugby training and my fitness classes have meant I’ve always had a reason to stop work at 5pm. So the temptation is there now for me to just keep working and I’m as guilty as anyone of this. The lockdown has been a bit of an eye-opener for me in terms of reverting to what I used to be like. “You definitely need to know when to pull the pin each day. Don’t get bogged down in that one

USE TECHNOLOGY: The lockdown doesn’t mean losing touch because social media and telephones can be used, farmer James Bruce, right, says.

job. I know what it’s like, I’ve done a fair bit of it myself. I’ve woken up at two in the morning and what hasn’t been done goes around in circles in my mind. It’s a real trap.” “I think in farming we often expect too much of ourselves. We’re expecting to win like the All Blacks and then when we don’t it’s like the wheels have fallen off. But farming shouldn’t be like that. It’s all about taking it a step at a time and actually appreciating the small steps.” In keeping with his smallsteps philosophy Bruce was in the middle of a major fencing project and was getting a lot of satisfaction from doing a couple of gates at the end of each day. That’s all stopped because of the lockdown. So, he’s given himself another simple, easy to achieve

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job to signal the end of each day – he’s started cleaning out his shed. “I just do half an hour at the end of each day but it gives me that little fist-pump moment – hey, I got that sorted. All the tractor stuff is finally in one place. It’s a smaller task than fencing but it’s still got that awesome, feel-good factor.” Bruce’s discussion group with up to eight young local farm managers also continues to meet on Facebook. We made a page eight months ago, there’s still plenty going on and you know what everyone’s up to. Everyone’s pretty busy so keeping it simple is good.” Most of all he is convinced people need to maintain perspective. Just like the drought, covid-19 and its challenges will eventually pass.

“In farming and in life you need to realise that there’s always an end to everything. “We’ve had a very dry summer here but like my dad always said ‘no matter how dry it is you’re always one day closer to rain’. And he was right. Last weekend it rained. “This lockdown might go on for four weeks or maybe longer but eventually things will get back to normal. “In the meantime, use technology to connect with your mates or if you don’t use social media or you have a neighbour who doesn’t just pick up the phone and ring. Now’s the time to call.” is the official media partner of Farmstrong

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WAIRARAPA sheep and beef farmer James Bruce reckons farmers are better placed than most to cope with the covid-19 lockdown but still need to look after themselves and stay connected. Top of his mind is not the coronavirus but the drought. He says 170mm of rain brought some very welcome relief. “Farmers round here have been comparing how much rain they got. I think it has really lifted everyone’s spirits. With luck it should be enough to get us through the next month.” On farm it’s pretty much business as usual for Bruce except he has a few extra helpers – his three girls are all home and keen to lend a hand. “Thankfully the works are still going so we can get rid of stock. We’re about to start drenching and I’ve finished feeding out my ewes. They’re all in good order and there’s more feed growing ahead of them.”

‘Unprecedented’ times indeed.

We understand that, as New Zealand’s primary food producers, how much you’re being challenged to adapt your livestock farming operations to manage your business in these testing times. Just as we are with our business. I don’t think any of us would have envisaged seeing and adapting to managing a global pandemic in our lifetimes. But if there’s anything to say about our rural communities it’s that you’re a “hardy lot”, and have had to adapt to challenging conditions before and will again.

The COVID-19 Lockdown certainly won’t beat the proven resilience of heartland New Zealand. Here at PGG Wrightson Livestock, we’re no different – we too ride the same high’s and low’s, challenges and opportunities, that you do. With 160 years of history behind us and the ability to adapt that this experience gives us, for generations of livestock farmers we’ve understood what it means to be in it for the long run. In partnership with you, and with some good old kiwi ingenuity, we’ll get through this together. All of PGG Wrightson Livestock’s products and services are still available – we’re simply adapting our practices just like you are. Our national team of livestock specialists across genetics & breeding, dairy, grazing, sheep & beef and deer are working harder than ever to provide expert advice and the products to keep your livestock farming operation in good shape: ‘Go Beef®’ and ‘Go Lamb®’ products to help facilitate the trading and finishing of livestock; ‘Defer-a-Bull®’ to secure your bull team with no upfront costs; and ‘agOnline®’ for all stock listings. We also recognise that unprecedented times calls for new, innovative technologies to enable and support your sale and purchase of stock. With the closure of saleyards as part of the COVID-19 response, bidr®, New Zealand’s virtual saleyard, is an excellent option for the trading of livestock during these unprecedented times. Consistent with bidr® being an open platform, PGW continue to support the accreditation of other livestock agencies during the COVID-19 lock down period to facilitate the essential trading of livestock. If you don’t know about bidr® and how it works, ask one of our rep’s or head to www.bidr.co.nz. We’re also working closely with MPI and are following the MOH guidelines, and our own strict protocols to ensure our nationwide team can safely continue to help you with your essential stock trading requirements during this difficult time. Our team is working to strict hygiene and safety protocols to assist in reducing the spread of COVID-19. It’s certainly not going to be an easy few weeks and months ahead for livestock farmers and the wider farming community. But I’m confident that we’ll get through this together, and in good shape. We’re here to help, just give us a call. Kia kaha, stay safe rural New Zealand.

Peter Moore General Manager – PGG Wrightson Livestock

www.pggwrightson.co.nz/livestock 0800 10 22 76

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News

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

On-line food delivery sees an explosion Hugh Stringleman hugh.stringleman@globalhq.co.nz KIWI consumers have embraced online ordering and home deliveries of food and drinks from local producers who are now authorised to trade. An explosion of sites and services occurred leading up to and during the first fortnight of level four covid-19 lockdown. It was given added impetus by the Ministry of Business, Innovation and Employment advice that butchers, bakers and greengrocers can offer online or telephone contactless order and delivery. Websites in their hundreds and several aggregation and fulfilment sites got cracking with advertising, registrations, electronic ordering and payment and pick-ups for courier deliveries. For example, a start-up directory site called Delivereat quickly gathered links to 530 businesses in 12 food and drink categories. The Modern Forager out of Mt Maunganui specialised in healthy foods with a higher price tag. Eatlocal.nz, in Invercargill, was one of many offering fresh vegetables in its home region. Maker2u.com, two years in construction, was rushed into operation by co-founders Hamish and Suzy Hutton, north Canterbury, as a virtual farmers’

market and now has more than 200 outlets hosted. Well-established Eketahuna Country Meat and Milk has been selling flat out since before the covid-19 lockdown, principal Steve Olds said. Fortunately, its butchery in Masterton did not have a retail outlet and therefore its meat processing activities for home delivery continued as an essential business. Milk deliveries to homes in the southern North Island are also continuing and Olds found many customers chose to double up with meat as well as milk to the door. “We are operating online as usual and orders are good,” he said. Meat processor Greenlea, in Hamilton, has experienced a surge in online orders of its range of boxes from the butcher shop, chief executive Tony Egan said. They range in price from $50 to $225 and Ovation lamb and Firstlight vension are also available. “We have even utilised the boardroom for boxes for delivery and been able to increase charitable distributions alongside the customers’ orders.” The extra sales were made to people confined to their homes, older people struggling to get to a supermarket and Muslim customers for halal meat.

GEARING UP: Oaklands Milk owner Julian Raine hopes to soon restart home deliveries to complement his four vending machines but the closure of cafes and restaurants has cut business by 85%.

A lot of companies with older business models realise they must have online options in future. Mike Lee Auckland University Egan said he will watch the online trend very closely after the lockdown ends to see if there is a longer-term trend in buying patterns but it is too early to tell. Auckland University marketing expert Associate Professor Mike Lee said covid-19 was the catalyst for businesses to address time and place dependency. “A lot of companies with older

business models realise they must have online options in future in case of natural disasters or pandemics.” The existing trend to mega, online distributors like Amazon shows remote shopping for consumers conveniently sidesteps both time and place. Traditional businesses at fixed locations, like gymnasiums, were forced online very quickly with group fitness classes. Self-service fuel stations have become asynchronous, which means staff don’t have to be present at the times when customers want to fill up. Online meat, dairy, fruit and vegetable producers do not have to rely on roadside stalls for mobile customers to turn up. Oaklands Milk at Stoke, Nelson, said it hopes to get home deliveries restarted to

complement its four vending machines, where customers fill their own bottles and use sanitisers provided. Owner Julian Raine said supermarkets are also continuing to take his Aunt Jean’s branded milk. But the closure of all restaurants and cafes in the region had chopped Oaklands volume by about 85%, he said. The Nelson company Milk and More said it is restarting home deliveries of Anchor products in plastic but not in glass. Trevor Nicholls said home deliveries were interrupted for two weeks and he was not prepared to pick up empty bottles and possibly spread covid-19 from house to house. All transactions with customers would be on account with online payments, Nicholls said.

Orders flood in to start-up Hugh Stringleman hugh.stringleman@globalhq.co.nz THE Maker2u website is not just a short-term bridge between food producers and consumers but a co-operative revolution for direct sales. Co-founders Hamish and Suzy Hutton, from Leithfield, north Canterbury, spent two years building the e-channel and quickly launched it into public service when the covid-19 lockdown was imposed. More than 6000 orders were taken in the first week. They believe the marketing, payment and delivery service enables smaller producers to grow volumes and reach beyond their home districts, perhaps overseas in future. More than 200 have signed up, all artisan producers of food, drinks and other products like pet foods and health and beauty. The aim is for producers to get much bigger margins and for consumers to make larger

bundled orders of higher-quality goods at competitive prices and delivery fees, Hamish said. Producers get 90% of the sale price during the coronavirus outbreak while Maker2u takes 10% for website building and maintenance, payment and disbursement and covers the credit card charges.

We have built this as a long-term scalable business to include both retail and wholesale on one platform. Hamish Hutton Maker2u Payments to producers will be made by Maker2u on the 20th of the month following transactions, Suzy said. Food producers must have a food safety certificate and

everyone has to agree to the terms and conditions Maker2u had drawn up by its legal adviser. “Most of our clients were operating and selling through other channels, including farmers’ markets, which have now been suspended. “They, not us, have the relationships with the consumer and couriers and under the present covid-19 regulations they cannot offer cooked foods,” Hamish said. Maker2u has a freight forwarding and shipping expert on board who is working on the logistics of export sales to countries like Singapore. “We have built this as a longterm scalable business to include both retail and wholesale on one platform,” Hamish said. “With no middle-men the makers get much better margins, grow their businesses and employ more people.” In future hospitality customers will be able to search, compare and source online.

FOUNDATION: Hamish and Suzy Hutton have built an online sales platform to last, with retailing, wholesaling and exporting in mind.

News

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

Jones wants to limit log exports Neal Wallace neal.wallace@globalhq.co.nz NEW rules forcing forest owners to prioritise the sale of logs to New Zealand mills and processors ahead of export markets are being considered by the Government. Forestry Minister Shane Jones says such a move will generate jobs once the covid-19 lockdown ends. But, after two years waiting fruitlessly for the sector to develop a system to provide a viable supply of logs to domestic processors, he is now forced to act. “Log exporters and forest owners have not solved the problem to date so I’m going to solve it for them,” he said. Forest Owners Association chairman Phil Taylor said FAILED: The forestry sector has had two years to come up with a solution to members have been seeking a provide logs for local mills but hasn’t done so, Forestry Minister Shane Jones solution, including introducing a says. supply accord. Heavy-handed regulation could Jones said he has supported the requiring forest owners to invest have unintended consequences forestry sector through the Billion in processing. such as the loss of jobs among Trees planting programme and “My message to log exporters is drivers, in log marshalling yards simplifying foreign ownership you have had your rights to profits and on the wharfs. rules. by selling in a laissez faire way Jones says he is preparing a “But an outstanding area is but you also have an obligation to paper for Cabinet that will analyse recalibrating the laissez faire fellow New Zealanders.” three ways of ensuring domestic rights to sell logs overseas to the The increased production of mills are adequately supplied with highest bidder and ignoring their processed timber could be used logs: imposing a levy on raw logs FARMERS WEEKLY HALF PAGE 265W X 200H MM obligations to supply sufficient domestically or exported. exports, licensing log exports and

raw material of the right length, at the right time and at the right price to satisfy the needs of domestic processors and sawmillers.” Asked how imposing these restrictions will be perceived by our trading partners Jones said his priority is trying to find work for the people who will lose their jobs in the coming months. Taylor said forest owners, domestic mills and processors are all dependent on each other but the issue for those industries has been spikes in log prices. Log exports effectively stopped in February with covid-19 in China, which buys 80% of NZ’s logs, resulting in widespread layoffs among logging contractors. Log prices are starting to recover in China as buyers respond to the lack of supply coming out of NZ and as prices improve so will supply, Taylor said. China is looking to supplement soft wood log supplies with imports from the United States and Uruguay. With the uncertain market dynamics the industry does not need changes that could create unintended consequences, Taylor said. “The industry’s concern is that

we don’t embed controls that have long-term implications on NZ’s ability to come out of covid-19.” Most corporate forest owners take a long-term view to marketing their logs, which includes supplying domestic processors but small woodlot owners generally have one chance to maximise the return from their harvest and in recent years that has been export.

Log exporters and forest owners have not solved the problem to date so I’m going to solve it for them. Shane Jones Forestry Minister Taylor says there is no one reason for recent mill closures but common factors are insufficient scale and old and inefficient equipment and technology making the cost of production high. “There are some mills that are very efficient and profitable under unconstrained log prices.”

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News

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

Air freight issues hit primary exports Richard Rennie richard.rennie@globalhq.co.nz THE withering of global air freight routes is hitting primary sector exports as processors grapple with logistics and soaring freight prices to try to maintain hard won, farflung markets. Mainfreight, one of the country’s largest air freight companies, reports a near collapse in the sector’s capacity. The amount of airfreight exported from New Zealand is about 100,000t a year, with 30% of it primary produce. A Mainfreight spokesman said the situation is changing daily. “In short, we still have flight options, even with reduced air freight capacity. “However, to put it as simply as possible, airfreight rates and transit times have increased significantly. “I can broadly summarise the market situation in New Zealand as total passenger air cargo capacity is now down by approximately 96%.” Typically, air passenger jets comprise 80% of NZ’s air freight capacity, with only three companies operating cargo-only flights. Some freight rates to China have doubled and to the United States tripled. Mainfreight reports flights operating include a full freight schedule from Singapore Airlines that comprises 15% of NZ’s air freight capacity and no change from Emirates which claims 12% and Cathay Pacific with 5%. However, Air NZ which provides 35% of the capacity has had major

reductions, with suspension of services through most of North America, Buenos Aires, Vancouver, Tokyo, Denpasar and Taipei. That has left some primary sector exporters grappling with logistical issues to supply fresh or chilled products effectively. Mountain River NZ Venison director John Sadler said a major campaign on the east coast of United States is being jeopardised by the loss of air links. “Although we are coming to the end of our season we have a regular weekly shipment heading up there. “We used to be able to fly Christchurch-New York. Now we have to truck to Auckland, get a flight if it’s even possible to Los Angeles and then truck it across the US. “It has added time and cost and we are not even sure how much cost that will be yet.” But he wants to maintain a presence in the market and is left with little choice. “If things come back to normal we need to be there.” As a venison processor he relies heavily on the hospitality/food service trade, which has all but shut down. He has to reconsider packaging and outlets as retail demand replacs hospitality demand. Zurich, Switzerland, is an important, high-value market for Mountain River but costs to freight there have more than doubled. “It is a premium product so we can absorb some increase but longer term we will have to reevaluate it.”

NZ-based Chinese-owned companies Oravida and Milk NZ have established strong markets in Shanghai for fresh milk air freighted weekly to supermarket shelves and for direct online sales. Between them the companies exported more than 100,000 litres of fresh milk a week with plans for significant increases. Milk NZ managing director Terry Lee said airfreight capacity is well down and despite dairy manufacture being an essential industry, throughput has been reduced to meet covid-19 rules. “Therefore, the trade volume has been significantly impacted. “As long as air freight operates Milk NZ remains committed to the export of fresh milk to China, even if it costs more than usual. We will not increase the product price.” One litre of fresh milk in Shanghai retails for about NZ$12$14. Air freight prices to China reveal significant increases in recent weeks. Since mid February one airline’s rates have surged from less than $2/kg to about $3.50/kg but at one stage peaked at more than $5/kg. Trade and Enterprise has moved to help facilitate air freight channels to Shanghai using Air NZ jets, due to depart April 12, 13, 14, 15 and 18. A Christchurch-Shanghai flight has been scheduled for April 17 and an Auckland-Houston flight for April 16. Oravida’s sales and marketing director in Shanghai, Daniel Zhao, said the reduced air freight capacity has affected

SQUEEZED: John Sadler of Mountain View Venison said air freight issues have made accessing markets expensive and logistically difficult.

his company’s ability to supply customers. “Oravida decided to give priority to the key retail channel customers including Citysuper and Ole in order to maintain our relationship with them and our brand presence there.

It has added time and cost and we are not even sure how much cost that will be yet. John Sadler Mountain View Venison “Other fresh dairy brands from Australia have not been able to ensure supply continuity during this time.” He said there has been no decline in consumer demand for the products but the supply gap has enabled local Chinese brands to gain an increased share of the premium end of the market. “The key to future success is in enticing those consumers back to

the imported brands when supply reliability can be re-established, particularly in e-commerce brands.” Meantime, farmers might face some delays getting machinery serviced over winter. Tractor and Machinery Association president John Tulloch said Europe is a key source for spare parts and air freight links there are proving difficult. “We are lucky it is this time of year, a lot of us have slowed down. Some air freight prices are four to five times more. “Now most of us are just planning to use only sea freight. “It may just mean winter services we would do from now on will be delayed until July when those parts are here.” But with no Mystery Creek Fieldays most companies will have capacity to focus on later winter servicing. There have also been supply issues caused by several European machinery factories shutting down or reducing capacity. “A lot of companies in Italy, in particular, are affected with some parts not available at all at present.”

Container shortage helps NZ Richard Rennie richard.rennie@globalhq.co.nz KIWI exporters have never had a better chance to capitalise on sales to Asia, Kotahi chief executive David Ross says. Covid-19’s impact on global trade flows means exporting from Europe and United States to Asia and particularly to China is problematic. “If you go back to the start of February all the concern was about exporters to China not being able to sell and get their products through to there. “A lot of refrigerated containers were also going up there supplying protein to meet the shortfall due to African swine fever. “What people were not so aware of was the impact on China’s output.” Shipping companies ceased sailings rather than send ships back empty and shipping volumes dropped. That was something NZ was not

immune to, having suffered a 35% decline in shipping capacity from China in March. But that paled against what European and United States exporters are suffering.

If we thought it was bad here you only need to look up there to see it is far worse. David Ross Kotahi “If we thought it was bad here you only need to look up there to see it is far worse.” At the start of April there were 102 blanked or cancelled sailings between Europe or the US and north Asia, up from 45 the week before. “That means re-allocation

of refrigerated containers back to Europe and the US is not happening.” He maintains while NZ exporters can expect some bumps in the supply chain over coming weeks, logistical continuity and container supplies here should give them certainty to supply Asian markets their European and US counterparts don’t have. The major ports of Long Beach, Los Angeles, Hamburg and Rotterdam have all reported their lowest container levels ever. Meantime, Shanghai has reported three times the number of containers on its wharves it had a year ago. A manpower shortage is also starting to exacerbate the container issues as covid-19 sweeps through the US and Europe. And a shortage of workers is upending food supplies throughout Europe as migrant staff retreat from covid-19 risks while US ports are congested

BETTER DOWN UNDER; Kotahi chief executive David Ross says container supply issues in the northern hemisphere provide an opportunity for New Zealand exporters.

because of a lack of workers on wharves. “Based on conversations we have had at senior levels with global shipping lines the effect is likely to be problematic for the next three to six months,” Ross said. While NZ can expect challenges

given the global pandemic’s scale, Ross is confident the close liaison between Kotahi, the country’s biggest logistics firm, and the Maersk shipping line and close management of container supply will minimise issues. “We are feeling comfortable with container supply,” he said.

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News

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

Townie crime wave worries farmers Annette Scott annette.scott@globalhq.co.nz FARMERS working alone in their bubbles are concerned they will become victims of increased crime. Rural areas can be quiet at the best of times and will be even more so now, Federated Farmers rural security spokesman Miles Anderson said. “Every community relies on its people to help each other and rural ones more than most. “As a rule, we usually know what our neighbours are up to. The regular vehicles on our roads help to keep an eye on things as we are going about our day-to-day business,” Anderson said. The covid-19 lockdown threatens that rural sense of security with many remote properties having set themselves up so they won’t go out at all for the lockdown. Farming businesses are reduced to essential tasks and many are running a skeleton crew and reduced work programme. “We will mostly be working alone to maintain our bubble. “No school runs or trips to town for sport, instead just a once-afortnight trip for groceries and only the odd stock truck or tanker coming down the road.”

The usual farm visitors who help to keep an eye out are also absent. “No one doing firewood, no roar hunters or duckshooters setting up for the season. “This means even fewer people out and about than normal and some real opportunities for mischief,” Anderson said.

We are all used to spending a lot of time alone but remember this is not a normal time. Miles Anderson Federated Farmers

With longer nights and no-one around conditions are prime for stock rustling, vehicle and fuel thefts and poaching. Farmers and their rural communities believe the impacts of the covid-19 response will be wider-reaching than just the four weeks. Unemployment is predicted to rise and potential increases in food prices have potential

We’ve got the country covered Covering the country from Cape Reinga to Bluff, our Area Managers are here to support you as an essential business service. We‘re still on the ground, actively helping dairy farmers do things right on farm - from achieving healthy teats and training your staff, to troubleshooting mastitis issues.

to encourage stock theft and poaching. Farmers are busier than normal feeding out to drought-impacted stock and with kids at home, leaving even less time than normal to be keeping an eye out. Despite the challenges there are a few simple things farmers can do to help reduce the risk. The lockdown means no one should be joyriding or going out to the country for recreational activities. Farmers should investigate any unknown vehicles or suspicious people, record licence plates and report suspicious activities to the police. But they should be careful when approaching people or vehicles, particularly when alone. Locking sheds every night, putting away tools and vehicles and taking the keys out can remove temptation. Fat lambs should not be left in a town-block run-off if they can be taken home. And farmers should scare deer away from road frontages. Anderson said the police are aware of potential issues and are willing to do everything they can to help. They are already actively stopping vehicles on country roads and if they don’t have an

TAKE CARE: With longer nights and no-one around Miles Anderson says conditions are prime for stock rustling, vehicle and fuel thefts and poaching.

essential services letter, sending them home. Farmers and their staff should carry the letters and can get a template from the federation website.

“We are all used to spending a lot of time alone but remember this is not a normal time.” Anderson urged neighbours to talk to one another about what’s going on.

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A message from our publishers. In the absence of all the traditional sports right now, we’re going to suggest we embrace Curved Ball as our new national game. We’ve had a few Curved Balls thrown at us in recent weeks, and survived, so we want to throw a few thank you’s back out there to everyone who supports us. Thank you to you, our readers. While farming continues, the lockdown has altered many tasks, processes and functions on the farm. Our team works hard to identify those challenges and give you the information and data needed to make sound decisions. When you read, listen and watch what the 27-strong GlobalHQ content team produces, you are supporting our editorial independence in a way that gives our work real purpose. Thank you especially to our readers who are also our PressPatron supporters. You have chosen to actually invest in the great content we deliver. As soon as the Lockdown is over, we’re sending all of you whose donations have exceeded $80, a Proud to be a farmer GlobalHQ smoko mug. Thank you to all our clients for working with us. We’re a solutions company and in these wildly unpredictable times, we’ve also been challenged to think and work differently, and innovate.

We are working hard to make you successful too and we share your passion to succeed long term in this industry. Our fundamental purpose is to provide independent, rigorous, fact-checked and relevant information. The need for it has never been greater and our 18 reporters and contributors, and nine analysts have never been more determined to deliver. They’ve taken it up another gear in the last month and so we thank them also, along with the entire GlobalHQ team. Working with you all is a privilege. In these extraordinary times, editorial independence, robust data and information, and analysis has never been more important. Our company has also undertaken to encourage young people to take an interest in the industry (On Farm Story and AginED) and pro-actively encourage farmers to get regular health checks (The Glob). You can join us in the work we do, and actively help us support the people behind our most important sector. When you’re next on our website, farmersweekly.co.nz, look for the Become a Supporter button at the top of the page and make a contribution of your choice.

Thank you. Members who contribute $80 or more a year will also receive your very own, much coveted, world famous in New Zealand Proud to be a farmer GlobalHQ smoko mug. By working together, we’ll all be here for the long haul, staying innovative and competitive, and becoming the forever world champions at...Curved Ball. The GlobalHQ family wishes you, your team, your family and friends all the best.

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News

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

Price volatility has returned Annette Scott annette.scott@globalhq.co.nz LOWER milk, lamb and beef prices in the 2020-21 season are being forecast by ASB economists. The farmgate milk pice might fall below $6 a kilogram the latest ASB Farmshed Economics report says. Covid-19 is changing the world and while some aspects of farming will stay the same others are venturing into the unknown, ASB senior rural economist Nathan Penny said. Adaptability will be a key attribute farmers will need to call on in coming years. “Many aspects of farming will stay the same but in a number of other aspects we are venturing into the unknown,” Penny said. Agriculture has been classified as an essential business. “In other words, farmers can be confident that they will remain open for business in almost any circumstance during the covid-19 outbreak.” Similarly, the supply chains agriculture feeds into have also been classified as essential so farmers can be relatively confident their food is going to be processed and shipped to markets both domestically and offshore, albeit in many cases with delays and extra costs. Encouragingly, farmers can also expect there will be a base level of demand for their food production. Households in New Zealand and abroad will continue to eat. Meanwhile, governments and central banks are pulling out all the stops to alleviate the worst impacts. One notable upshot for farmers is interest rates are likely to be helpfully lower for longer. But crucially there’s no certainty where global food prices will settle. “The greatest uncertainty lies in the demand for foods for which

FLUCTUATIONS: Farmers can expect price volatility and less demand for luxury items such as dearer meats, ASB economist Nathan Penny says.

The greatest uncertainty lies in the demand for foods for which NZ was previously commanding premiums. Nathan Penny ASB NZ was previously commanding premiums.” The horticulture sector is a case in point. “Successful varieties and NZ brands developed over years like Rocket apples, Gold kiwifruit and sauvignon blanc risk becoming luxuries that some households can no longer afford.

“We don’t know which of our markets will hold up and which ones will struggle. “We are more confident that the Chinese and some other Asian economies will rebound sooner than most and that this will provide some food demand over and above the base level. “However, we suspect that the United States and European economies are going to struggle with very low growth for an extended period, giving little impetus for food demand and prices from these markets.” Global income growth and thus food demand are likely to be similarly uneven and likely to lead to renewed food price volatility. That means forecasts are subject to change. Despite steep auction price falls in February and March dairy has managed to hold it’s 2019-20 milk

price forecast relatively firm to $7.30/kg. In contrast, 2020-21 is heading into the unknown. “Turning to our 2020-21 forecast there are many moving parts,” Penny said. “Initially, we anticipate that the helpfully low $NZD-$USD can offset any lost demand over and above the base level and the subsequent dairy price weakness. “Looking further into the season the question becomes will this dynamic hold? “We are relatively more cautious on the outlook for demand and prices.” On this basis ASB has lowered its milk price forecast from $7.50/ kg to $6.50/kg for next season. “There is one thing we are sure about, covid-19 has brought dairy price volatility back to dairy markets.

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“In late 2019 we stated that price volatility had reduced structurally. Sadly this view no longer holds. “We now believe it pays to be prepared for a range of milk prices, including the possibility of a sub-$6/kg result,” Penny said. So far 2020 has been a rough ride for the meat sector. Even before the covid-19 outbreak drought conditions were proving problematic for many parts of the country. Throw in the normal seasonal peak in slaughter and then the covid-19-driven sharp fall in demand, the impact is twofold. Farmers struggled to get stock away at a time when feed was at a premium, leading to extra cost and tight cashflows. Secondly, meat prices have fallen heavily since the start of the year. The fact that meat prices finished 2019 at record levels and the large fall in the $NZD$USD have cushioned the impact of the price declines in farmgate terms. Looking over the next three months or so it’s anticipated meat prices will stabilise. Looking to the spring and beyond there’s less optimism. While the key Chinese demand is likely to remain relatively firm demand from NZ’s other key markets such as the US and Europe is likely to remain under sustained pressure over 2020 and well into 2021. “On this basis we expect lamb prices to track near their five-year average at around $6/kg. “Meanwhile, we anticipate more downward price pressure in beef markets, expecting steer prices to track at below-average levels at either side of $5/kg.” Prices for mutton and other less expensive cuts are likely to fare better in comparison to more expensive meats such as prime steaks or lamb racks.

News

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

Velvet quality keeps improving Annette Scott annette.scott@globalhq.co.nz VELVET quality is higher now than in the past 30 years and deer farmers should be rightly proud of what they have achieved, Deer Industry New Zealand chief executive Innes Moffat says. But better quality aside, with demand and prices beginning to plateau the industry is not looking for new producers to enter the fray. The velvet produced now contains more of the lipids and proteins linked to the bioactivity of deer velvet products and their values as natural foods. Moffat said farmers have made huge efforts to improve the quality of all aspects of velvet production. “Stag genetics, welfare and nutrition are light years ahead of where they were 30 years ago. “Harvest hygiene and cool chain improvements ensure quality is maintained all the way from the stag to the processor.” A scientific study led by AgResearch scientist Stephen Haines and funded by the deer industry and AgResearch analysed velvet antler harvested from Red and Elk-Wapiti in the 2018-19 season. The results compared with a 1991 study showed the average velvet antler today is of higher quality than the best of the antlers

analysed in the earlier study. The valuable upper portion of the antler made up 25% more of the whole antler than it did in 1991. Overall lipids increased by 4% and proteins by 25%. “The impressive progress deer farmers have made increasing antler size has been matched by equally impressive improvements in velvet composition,” Haines said. The study also showed industry standards, which are based on market preference, are scientifically valid. Velvet cut at the correct time is higher in lipids and low molecular weight proteins linked to the bioactivity of velvet, than velvet cut seven days and 14 days later than the industry standard. Velvet is a cornerstone, along with ginseng, of traditional Chinese and Korean medicine with a reputation going back thousands of years. It has also been the subject of several scientific studies that Moffat said indicate velvet-based products might have a role in reducing arthritic pain, healthy brain ageing, lowering blood pressure, wound healing and recovery from intense physical exertion. “The deer industry hopes that the results of these trials will pique the interest of organisations with

CONTENT: Velvet today has more lipids and proteins than it did 30 years ago.

the resources needed to fund proper randomised clinical trials,” Moffat said. Health food companies in Korea have in the past few years developed a range of velvet-based products for new generations of consumers.

“One popular product is formulated for students to provide an energy boost during busy exam times. “Building immune function and combatting fatigue are other functions that attract consumers to these cotemporary products.

“These new products have greatly expanded the market for velvet during the past decade but demand and prices now appear to have plateaued, which means we’re not looking for new producers to enter the industry,” Moffat said.

New study cuts hill emissions MacPherson is new Farmax chairman

Gerald Piddock gerald.piddock@globalhq.co.nz HILL-COUNTRY livestock is producing lower biological emissions than scientists previously believed, AgResearch says. Sheep and cattle farmed on hill country produce half the amount of nitrous oxide per unit of nitrogen from urine or dung than previously thought. Nitrous oxide is New Zealand’s second most important agricultural greenhouse gas after methane, representing 22% of agricultural emissions and 11% of total greenhouse gas emissions. Research of more than 1200 emission factors and data measured from 139 field experiments over the past decade produced the new finding on discharges from urine, dung and fertiliser. The study showed emissions from sheep are about half those of beef cattle. It also found urine emissions are higher for gentle slopes than for steeper slopes. The new calculation cut total sheep emissions in 2017 by 10.6%, total beef cattle emissions by 5% and dairy cattle emissions by 1.4%. AgResearch scientist Tony van der Weerden said the new calculations are a significant change for hill-country farm emissions.

GREENER FARMING: A study from AgResearch has found that nitrous oxide emissions on hill country farms are lower than previously thought.

“For example, nitrous oxide emission factors from excreta deposited by sheep will be reduced by two-thirds while emission factors from beef cattle will be reduced by one-third.” Emissions from dung and urine on pasture are the single largest contributor to nitrous oxide emissions in NZ. In 2017 those emissions from animal excreta contributed the equivalent of 6.6 million tonnes of carbon dioxide in the agriculture sector, equivalent to 17% of agricultural emissions. The impact hill country slopes have on urine emissions is thought to be a combination of lower soil microbial activity and lower soil moisture content relative to low slopes, he said. “Under these conditions, smaller amounts of nitrous oxide are produced and released into the atmosphere.”

Lower urine emissions in sheep compared to cattle are believed to be caused by the lower volumes produced, which might lead to greater use of the excreted nitrogen by plants. “However, this theory requires further investigation.” According to Beef + Lamb there are more than 5500 sheep and beef farms on hill country, representing about half of all sheep and beef farms. About 1000 are on hard hill country in the North Island. The new emission figures were considered by a panel of agriculture emissions experts who recommended they be applied to the 2020 national greenhouse gas inventory, which will report emissions from 1990 to 2018. Manaaki Whenua Landcare Research was a partner in the research commissioned by the Ministry for Primary Industries.

FORMER AgResearch director Andrew MacPherson has been appointed chairman of Farmax, taking over at the wholly owned but independent AgResearch subsidiary from Greg Lambert, who is retiring. MacPherson says the Farmax decision-support tool has a pivotal role to play in supporting the future of New Zealand’s pastoral farming sector. “Now, more than ever, thinking farmers need powerful, evidence-based software support tools backed by science and leverage close relationships with reputable sources like AgResearch to create sustainable business plans for farmers that are capable of meeting the challenges posed by climate change and water quality issues. “I am confident that Farmax has and will continue to play an essential part in supporting farmers, farm consultants and bankers. “I want Farmax to grow in size and expand our footprint in NZ by producing powerful, practical and userfriendly software solutions to enhance the productivity and profitability of NZ’s pastoral sector.” MacPherson, who was appointed by the AgResearch

WELL-PLACED: Andrew MacPherson brings a wealth of experience to his new role.

board, is chairman and coowner of Sewell Peak Farm, an intensive 950-cow dairy farm near Greymouth. He also served on the Westland Milk Products board. The former vet founded, owned and managed vet practices in Waikato before establishing his career in governance roles in a number of industries including as a director then chairman of Focus Genetics. He successfully ran for Waikato Regional Council last year. He says his work experience makes him uniquely placed to lead a business that provides farmers with science-backed information to develop their businesses in a landscape influenced by an evolving regulatory framework.

AginED ED

FOR E FUTURIA G R R S! U PR EN E

Volume Two I April 13 2020 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz

Photo of the week: ‘Pride in the Kakanui’

In your paper 1 Rewrite this week’s front page headline in your words, make it catchy 2 Go outside and take a front page news photo 3 Give it a caption and share it on our facebook page

STRETCH YOURSELF: 1 Find a topic in this week’s paper that is important to you and your family Due to the lockdown, a planned community planting operation was postponed in Enfield. This is Breanna’s photo of work carried out in a previous year.. To be in the draw to have your photo featured, please send a high resolution copy to agined@global.co.nz

1 Go to www.farmersweekly.co.nz 2 Find and watch the OnFarmStory on Roger Beattie, Lansdowne Valley 3 When did the Beattie’s start breeding Weka on their farm?

STRETCH YOURSELF: 1 Roger Beattie is an enviropreneur, what is an enviropreneur? 2 Where did the sheep on Kowhai Vale originate from? 3 When they set up their marine farm, what did they originally use kelp for? 4 What other uses did they find for Kelp?

1 Go to the AgriHQ Market Snapshot page 2 What is this week’s North Island Bull price? 3 Is this better or worse than last week?

2 Give us your opinion, tell us why it is important to you and send a letter to our editor at agined@globalhq.co.nz We may choose your letter to feature in Ewe said!

Letter of the week Ewe said... Breanna Kingan sent in this fabulous piece about environmental conservation in her community. Enfield planting gets popular on the A2O Enfield residents come together on a very sunny day to plant about 300 plants, near the Alps 2 Ocean at Enfield. They selected the area because there was not much going on in that area and there needed to be a spice up there. The types of plants they planted were flax, toi toi, cabbage trees, pittosporum, kowhai, sedge grasses, and hebes. As the saying goes, many hands make light work, and all plants were in the ground and the mulch around the plants were completed all in the morning’s work. The planters were rewarded with a delicious sausage sizzle for lunch.

T hanks Breanna! Your GlobalHQ mug is on its way!

4 How does it compare to last year?

STRETCH YOURSELF: Do some research in the paper or online on the top export destinations for NZ lamb, see if you can identify the country in the graph that imports the biggest share of NZ lamb.

FILL YA BOOTS: 1 Of the farms for sale, which one is most like yours and why? 2 Which farm is most different to yours and why? 3 What is the 7 day rainfall forecast for your area?

* Share your AginEd photos on our Farmers Weekly facebook page * Remember to use the hashtag #AginEd * Letters to: agined@globalhq.co.nz

SCAVENGER HUNT · Find and identify two different types of grass · Find and record the names of three different types of bugs/insects around your property · Do you think the bugs/insects you found are useful to your environment or are they a pest?

Newsmaker

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

Farm earnings vital to rebound Ballance Agri-Nutrients chairman-elect Duncan Coull will come into the position later this year when the primary sector faces huge challenges as farmers weather the ongoing economic impact of covid-19 along with looming environmental regulations around freshwater and climate change mitigation. He spoke to Gerald Piddock.

ONEY earned by farmers and the wider rural sector will help underpin New Zealand’s economic resilience as it navigates the challenges ahead, new Ballance Agri-Nutrients chairman Duncan Coull, an Otorohanga dairy farmer, says. “And Ballance plays a role in continuing to support our wider industries.” Further out he sees Ballance playing a critical role in using science to advocate for farmers when it comes to shaping environmental regulations. Ballance has invested heavily over the past few years to develop the farmer management decisionsupport tools MyBallance and MitAgator. Taking that active approach enables farmers to prepare for any pending legislation, he says. “We have an active role to play there and my personal view is that if we think about co-operative ownership in the primary sector there’s a lot of commonality in terms of the ownership model and where possible, collaborate where we can to support our farmers.”

Countering that unified approach are the environmental lobbyists pushing for caps or outright bans of on farm fertiliser use. Coull says there has been a growing awareness among farmers of the need to farm more sustainably. “Let’s be frank, we need to feed our soil and plants to feed our growing populations around the world. I think if we were to take an extreme view there would be dire consequences for our population and the world. “Right now, with the unfortunate situation with covid-19, as proud as I am to be contributing to the wellbeing of our communities and our economy I think every New Zealander would be thankful for our farmers right now.” Ballance was fortunate to be classed as an essential service and to play a role in keeping rural NZ productive. The co-operative is critically aware of that responsibility and has had to adapt to supply farmers with its products while keeping its staff and farmers healthy, he says. The $50 million hydrogen

TESTING TIMES: Duncan Coull sees big challenges ahead as he takes over the chairmanship of Ballance Agri-Nutrients.

project at Kapuni will further lift the co-operative’s push to be more environmentally sustainable. It will supply its urea plant with electricity, reducing its footprint and powering the plant’s transport fleet.

If we’re relevant to our shareholders then I think we have a right and a directive to operate. Duncan Coull Ballance Agri-Nutrients The project got just under $20m from the Government’s Provincial Growth Fund in March. “It’s at its early stages but at a very high level I see, conceptually, it fits with Ballance as a manufacturer to ensure that we do our bit in terms of operating in a low-emissions economy,” he says. His overriding aim as chairman will be to ensure the cooperative’s focus remains relevant

to the 18,500 farmer-shareholders and deliver services that let them keep operating productively. “It doesn’t need to be a lot more complicated than that. “If we’re relevant to our shareholders then I think we have a right and a directive to operate. “To be relevant to your customer and shareholder base you have to add value and you need to understand their challenges, opportunities and operating environment. It’s really important that you never lose focus on that.” He will take the position in September when outgoing chairman David Peacocke steps down following the annual meeting. It’s been a meteoric rise for Coull, who has been on the board since 2018 and was on the Fonterra Shareholders’ Council for eight years, including three as chairman before stepping down from that role last year. “I’m humbled to be given the opportunity and that the board saw fit to appoint me as the incoming chair,” he says. Peacocke had been a Ballance director since 2005 and was elected chairman in 2013.

He epitomises what is required to chair the board of a large company, Coull says. “It’s the ability to encourage open discussion among the board and help them to reach a consensus view and he does that very well.” Coull said Peacocke was a great advocate for supporting management change at the cooperative during his tenure as a director and chairman. “It’s incredible some of the tools and initiatives that have been put in place over that period. “The Ballance business, at its core, will always be ensuring that we deliver high-quality, cost-effective nutrients to our farmers but more and more we need to ensure that we enable through that farmers’ ability to do that.” Peacocke advocated for initiatives that helped farmers do just that, he said. Coull says his experience chairing Fonterra’s Shareholders’ Council helped grow his leadership capabilities. He believes the chairman’s job is to facilitate discussion around the board and extract the best of the talent there.

Short term solution found for pigs IT TOOK several conference calls and some work over the weekend to sort the logistics but the pork industry and Ministry for Primary Industries are confident they have averted a looming animal welfare issue. Earlier this month the pork industry said its farmers would be forced to start slaughtering thousands of pigs following the closure of independent butchers and food service under covid-19 restrictions. New Zealand Pork said not listing butchers as essential services had effectively removed 40% of local pork sales and pigs now had nowhere to go as wholesalers didn’t have enough

freezing or storage space. Then Agriculture Minister Damien O’Connor responded by saying butchers will be allowed to process pork but only to supply supermarkets or other essential retailers. NZ Pork chief executive David Baines said it was a disappointing response leaving 5000 excess pigs on farm, jamming pig pens and falling foul of the animal welfare code. Industry representatives, including manufacturers and importers, held two conference calls with MPI to find homes for the displaced pigs. “We think we’ve got a combination of solutions that

could work,” Baines said. The thrust of the arrangements is that pork importers and bacon and small goods manufacturers such as Hellers will take more locally produced pork, slowing the supply of imported pork into supermarkets by storing the frozen product. Baines said while it isn’t a sustainable solution it could help avert the immediate problem. There are about 93 commercial pork farms in NZ producing about 40%, 12,500 pigs a week, of the 110,000 tonnes Kiwis eat annually. Most of the imported product some 70,000 tonnes - comes from the European Union and North America.

About 85% of landed product is used in bacon. The rest is used in other processed foods including ham, sausages or marinated and injected pork products. Very little pork is exported. “It would be great to be able to export more of our pork but as a small-scale producer there are lots of barriers to export, including high feed input cost and high welfare standards relative to other global producers.” The upshot is imported pork is being landed at about $2/kg cheaper than locally grown. “One of the reasons is that imported pork doesn’t have to meet NZ’s animal welfare or environment standards.”

Baines said there are some small scale exporters, notably into the Pacific Islands and Singapore. “We’re starting to get some calls. One expat Kiwi has contacted us to import into the food service trade in Singapore but we think these will be only selected, valueadded cuts, however, we’ll be looking at all avenues.” Another hurdle is the existing country-to-country agreements in place. “There is no agreement in place for the importation of raw pork into NZ or to China and it is unlikely the Chinese would go for a one-way deal without reciprocity.” – BusinessDesk

New thinking

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

City moths’ number is up Kiwi researchers are pioneering a way of dealing with insect pests that will not only free orchards of them but also kill reservoir populations in urban areas without using spray. And, they told Richard Rennie, the technique is proving highly successful.

ITY-DWELLING insect pests can be a barrier to grower and official efforts to eradicate them, as fruit fly incursions in Auckland have made plain. A recent research project has highlighted how significant urban insects can be when it comes to eliminating them and how householders are more than happy to help kill them with nonspray methods. Plant and Food researchers have taken their work using the sterile insect technique (SIT) on codling moth in Central Hawke’s Bay a step further as they try to better understand how the moth’s city cousins can affect numbers and infestation levels. The moth has long been a problematic pest for apple growers who face ever-increasing pressure to reduce spray levels but also control its impact on crops. SIT work was done on seven remote orchards totalling 400ha at Onga Onga, near Waipukurau. In a world-first the researchers pioneered using drones to drop sterile male and female moths onto orchards, effectively forcing out wild populations by sheer numbers and breaking the generational cycle of moth populations. An average 50ha orchard will be doused with 10,000 sterile moths in a single flight taking less than 10 minutes. One pass a week is made over the orchards between November and February. “It has proved to be not only a world first but also highly successful,” researcher Rachael Horner says.

TRAPPED: Researcher Rachael Horner says codling moth infestation in urban gardens is high.

“There has been up to a 98% drop in moth populations in orchards and the damage is simply not seen now. “It has also been achieved using almost no insecticides, meaning ultra-low residues and no larvae in fruit so orchardists are able to access higher-value markets as a result.” With New Zealand’s relatively relaxed drone regulations and development of 3D printed equipment to contain the moths the researchers believe there are big opportunities for further sterile dispersals in other crops and areas. But researchers are also concerned there has been no attempt in NZ to try to identify potential sources of urban moth populations that could provide a reservoir population to re-infest orchards. “So we put 200 pheromone traps across Hastings city and mapped host trees around the

pilot eradication orchards at Onga Onga. The traps in Hastings caught 1000 moths, which is a significant number, and only 16% of the traps caught no moths. “The Hastings traps in host trees caught significantly more males than traps in non-host trees, with some clustering of populations. “The traps in the orchards with the most stringent moth management programmes averaged half the catch rate of the Hastings urban traps,” she said. Orchards with less rigorous moth controls had a fivefold higher catch rate than orchards with strict controls. Hastings is a particularly relevant city given most of the urban area is a kilometre or less from an orchard. The codling moths are quite capable of covering 1km between trees, Horner said. “We know that in Canada this urban reserve of pests has proved

a real issue in trying to control them.” Knowing the intensity of the moths’ presence in urban areas gives the researchers confidence to expand any future control measures beyond orchard containment. “It was apparent few urban households were that focused on a programme to control codling moth in their backyard trees.” The researchers’ confidence to consider future control programmes is also buoyed by good support from urban householders who were happy to have the traps on their properties. Science group leader Professor Max Suckling said people are very aware of the biosecurity element of the work. “By working with the community on existing pests of local industries, like codling moths in apples, we hope to help engagement in biosecurity overall,” he said.

Having the urban data means ultimately the SIT technique might be applied in urban areas but the next step will be to use the technique on the wider Central Hawke’s Bay apple growing area. “We have strong support from industry keen for us to expand it because they understand it opens up those high-value markets for them,” Horner says. The Queensland fruit fly is another pest in researchers’ sights for SIT application using drones. Overseas growers are interested in the work done here but till now have used only fixed-wing aircraft. “The drones enable us to get closer to the trees, they are cheap to operate and are less obtrusive.” Longer term, researchers hope irradiation techniques will enable pest bugs like the feared brown marmorated stink bug to also be controlled using SIT, something Italian and NZ researchers are working on.

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Opinion

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

EDITORIAL

Future policy needs rethink

HROUGH history war, pandemics and natural disasters have triggered a reset of society’s values, structures and priorities. The covid-19 pandemic of 2020 will be one of those moments, a trigger for the community to reflect on what is important and relevant in life - our essential service industries, food, shelter and the wellbeing of others. This reset will naturally include the strength of our economy once we emerge from this crisis and that raises some interesting challenges for the primary sector and more especially for the Government. Agriculture and tourism have been the country’s principal economic pillars but the $16 billion tourism sector dried up overnight and any recovery is likely to be years away. There is speculation it might never return to be the economic powerhouse it previously was. So that leaves the primary sector to not only generate the bulk of overseas funds for the country to pay its way but to also pay back the $12 billion (and growing) the Government has borrowed to soften the impact of covid-19. This economic reliance comes as the primary sector is arguably being hamstrung by new Governmentimposed rules and compliance which, it has been warned, will curb the sector’s ability to earn export dollars. That’s not to say the sector should have carte blanche. It shouldn’t but maybe this is an opportunity for farmers and regulators to find an agreeable centrist path that meets the needs and expectations of production and the environment. The Government’s coalition partner New Zealand First is indicating it is not interested in considering new environmental rules but a political impasse is not a solution. Similarly, it would be disastrous to adopt a production-at-allcosts approach but equally wrong if the Government does not acknowledge the economic environment has changed and requires a rethink of some of its policies. This is an opportunity for farming to front foot this issue, to promote environmental policies that will meet society’s goals while not hamstringing our capacity to generate food and export dollars.

Neal Wallace

Walking back to happiness Colin Williscroft colin.williscroft@globalhq.co.nz

LIKE most people in New Zealand in recent weeks my horizons have been limited to the neighbourhood where I live. For me that’s Palmerston North, where I’ve been working from home since the lockdown began. Other than a couple of trips to the supermarket the only occasions I’ve left the property during that time were to go for a walk. I’ve decided it’s something I’m going to continue after the restrictions are eased and I’ll be interested to see whether others do the same because I’ve never seen so many people walking the streets around here. What has stood out – and this has really made me smile – is the change in attitude

of the people I see along the way. In every city I’ve ever lived in if you’re out walking and there’s someone coming towards you it seems the last thing you want to be seen doing is looking at them or, worse still, smiling. And to be acknowledged by someone washing their car in the driveway, mowing the lawn or doing a bit of gardening as you walk past, well forget it. How times have changed. And how quickly. Every time I’ve gone for a walk recently there’s been people smiling, strangers stopping to say hello, maintaining a distance of course, and people taking time from their washing, mowing or gardening to wave and ask how I am. There’s a sense of community that’s rarely been there before.

It’s made me think back to when I’ve lived in small towns and rural areas where that sort of behaviour is far more the norm – people being friendly to and supportive of those around them. As part of this job I drive down a lot of rural roads and every time I’m faced with a farm vehicle coming the other way I pretty much always get a wave, even though that person will have no idea who I am. That’s just what people do. So while when we’re back in the office I’ll enjoy driving through a slice of rural Manawatu on my way to and from Feilding every day, I wonder if town will retain that country vibe. Right, I’m off for a COOL CHANGE: Colin Williscroft has enjoyed walk. seeing smiling people.

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Opinion

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

Here’s how to grow your soil David Horwood

ALWAYS read and enjoy Steve Wyn-Harris’s column and to a lesser extent Alan Emerson’s. I was a little bit disappointed with the March 2 column. Uncle Google tells me the obsessed, free-thinking beekeeper is actually an innovator, entrepreneur, information technology whizz, businesswoman and motivational speaker. I think she might have achieved more in her life than Steve and I ever will. But enough of that, let’s talk about me. In 1999 my family and I planted a gold kiwifruit orchard and within 10 years I noticed the worms were burrowing through the pumice and clay, turning it black. (carbon sequestration, see photos – the orange lumps are pumice). Today, the original 75mm to 100mm of topsoil is now mostly 300mm but in some cases it is 600mm deep. It is typically shallower where the kiwifruit canopy is normally fuller and little grass grows and deeper where the multi species sward of phallaris, cocksfoot, dock, buttercup, lotus, clover and ryegrass thrives. Over the years I have also used copious amounts of chook manure and mowed infrequently. This incredible increase in soil depth happened quite by accident. Imagine what could have been achieved if we knew how to make it happen over large areas of New Zealand farmland. And what if we were paid carbon credits? Kenyan farmers and some Australian farmers are paid and some now expect to make more money

The

Pulpit

from carbon credits than from livestock. Let’s talk about Alan Savory’s holistic grazing system. I think I have been doing a mechanical version of this on my orchard. Check out his TED talk, How to green the world’s deserts. Do you agree? A while ago a friend lent me a copy of the book, Call of the Reed Warbler, by Charles Massey. It is so good I bought two copies. It is 500 pages of regenerative farming and Savory success stories along with explanations of how scientists are unravelling the secrets of soilbuilding. For example, the Dunnicliff family’s 1,054,700ha station setstocked 20,000 cattle. In about 2011 Savory convinced them that with holistic grazing – not what we call rotational grazing – they could graze 100,000 cattle. For $5 million they developed a 100-paddock cell system, running a mob of 3200 bulls moved every

DEPTH: These photos show the soil on set-stocked pasture, left, and in an orchard.

three days. By 2015 they had more than 80,000 head and in 2017 almost 100,000. Note this is a 300-day rotation system. In New Zealand our grasses might be unpalatable by then, which might require the use of cover crops. Some time ago I heard of Gabe Brown’s Dirt to Soil book. At first I resisted getting it. I mean, what would a Yank know about soil? They do dust bowls. Finally, I bought a copy and read it. Boom. I bought another three, lent two out and sent one to Jacinda Ardern. I have now ordered more than 100 varieties of seeds and will soon begin my own experiments with cover crops. When Brown took over his inlaw’s farm the water infiltration rate was 12mm an hour (my incredible soil probably does 25-50mm mm hour). His soil now is now at 50mm in 25 seconds. In case you missed that I’ll say it again – 50mm in 25 seconds. If NZ farms were half as good as that we would seldom have floods or ponding, except in cut-over pine forests and maybe some native bush. When he took over Brown had no topsoil and the organic matter was 1.8%. It now averages 975mm of topsoil with 8-12% organic matter. I guess NZ soils might be 8-10% in organic matter but most are less than 100mm deep, with few deeper than 300mm. Some are worse. For example, the cut-over pine forests around Galatea have little topsoil, just pumice washing away in the rain. At a recent Zespri sustainability seminar one of the speakers said NZ has 0.2% of the world’s land but produces 1.6% of the world’s silt. Does that sound like regenerative farming? Brown has been running his

family farm for only 25 years, so how has he achieved the turnaround? By true regenerative farming. It is not organic and need not involve seaweed and compost. Two simple steps are absolute – no till and multi species (cover crops really help to increase diversity).

This incredible increase in soil depth happened quite by accident.

If you’re in a hurry, add rotationally grazed livestock. More of a hurry, make sure your livestock are holistically grazed. Still not fast enough? Push the holistic grazing to beyond what even Savory envisioned – a million kilos of livestock a hectare. Neil Dennis, the Canadian who achieved that, like many farmers, initially knew holistic grazing wouldn’t work on his ranch. He set out to prove that but instead found it actually did work so he pushed it to the extreme. Water infiltration rates on his land are now 400mm an hour. Where in NZ do we get that much rain in an hour? I lied about the rules. There are four more guidelines – try not to graze more than 50% of herbage in a paddock or else the roots begin to suffer, minimise the removal of herbage from where it was grown, reduce or eliminate synthetic fertilisers and reduce or eliminate biocides. Set stocking is the one absolute no-no. By 2004 Dr Kris Nichols was putting pressure on Brown to stop synthetic fertilisers because they degrade and destroy the soil

fungal webs. So Brown instigated four-year split trials on several crops. By 2007 it was a nobrainer – if he spent no money on fertilisers he got the same or greater yield. Hundreds of farmers and scientists overseas have developed low-cost or free systems that pump carbon into the soil. Numerous NZ scientists have developed extremely expensive systems that blow carbon out of the soil. Some NZ scientists have measured soil carbon losses from dairy farms at an average of 700kg to 1000kg/ha/year for the last three decades. That is not sustainable, let alone regenerative. So now that you are all rushing out to buy cover crop seeds, greencoverseed.com will help you choose seed for your situation. Jamie Scott’s Innovative Ways to Seed Cover Crops might assist with timing, rates and methods. I understand America now has 20m acres under cover crops, up from 14.7m in 2018. This fad started some 30 years ago and shows no signs of slowing down. I am not expert and have ignored regenerative agriculture until I read Brown’s book this year. I discovered much of the information above in the last week. There is so much to learn and it is not hard to find.

Who am I? David Horwood is a Bay of Plenty kiwifruit grower and beef farmer.

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

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

No sign of squeaky voice yet Alternative View

Alan Emerson

WE’VE had a good week. It’s rained, the grass is growing, the garden is productive and we’ve spoken to heaps of people even though we haven’t physically seen them. I’ve appreciated the calls from the RSA asking how I am. I’m fine and thanks for the contact. I feel reassured watching the press conferences and briefings and reading the commentary in the paper. I’m impressed with the professionalism of our senior civil servants, their grasp of the issues and their honesty when it comes to answering the hard questions. Before the covid-19 pandemic I’d heard of director-general of health Dr Ashley Bloomfield but had no idea what he looked like. I hadn’t heard of his colleague Dr Caroline McElnay, Civil Defence executive Sarah StuartBlack or Otago University academics Professors David Murdoch and Michael Baker. I’m pleased they are on our side and have considerable respect for them. Likewise with our politicians. I don’t see what more Prime Minister Jacinda Ardern and Finance Minister Grant Robertson could do and Agriculture Minister Damien O’Connor has been hands-on and effective.

I’ve been highly critical of Trade Minister David Parker over the years but I’m appreciating his statements about keeping trade routes open. I believe the lockdown is the right way to go and accept the hardship it will cause. I don’t believe there was any alternative. Judging by the new infections at the time of writing, it’s working. One of the problems of a crisis like covid-19 is it brings people with opinions out of the woodwork and they get reported whether credible or not. For a start I received a pile of “scientific” evidence about how 5G is responsible for the pandemic. People are taking it really seriously but as we’ll never get 5G in the provinces it isn’t a worry.

Look at farming now. Realistically, we’re all the country has.

Previously, I’d been told 5G would, among other problems, cause my bollocks to drop off so covid-19 is light relief by comparison. We then had an Otago University psychologist telling us because older people can’t go outside they could suffer dramatic cognitive decline. In common language that means losing mental agility. Not all older people are in retirement villages. We’re outside and active in the provinces. That was followed by another

Otago academic, an associate professor no less, saying rural towns are most at risk from the virus because they have the lowest socioeconomic status, higher levels of chronic disease, more elderly people and poorer access to health services. As a septuagenarian I take exception. If people are older in the provinces they could well be fitter. I’m unaware of chronic diseases and the health services I’ve enjoyed in provincial NZ are infinitely better than those I’ve suffered in the cities. We’ve been bombarded with “research” about business and farm confidence plummeting. Of course it is. You don’t need research to tell you that. The commentary from the fringe has also been entertaining. One of our outlandish commentators said NZ shouldn’t be in lockdown but should adopt the herd-immunity principle. What that means is that you just let it run riot as the British initially did. It’s survival of the fittest. For those over 70 they suggested oases around the country for the vulnerable and Waiheke Island was mentioned. As one of the target group can I suggest I have no intention of going to Waiheke Island and will be staying exactly where I am. Not to be outdone, the ubiquitous Mike Hosking demanded a lockdown but when it happened claimed it was an overreaction. Then outlandishly, in my view, he suggested the Government had based its modelling of the impact of covid-19 on numbers pulled from thin air.

MAKE UP YOUR MIND: Mike Hosking demanded a lockdown then, when it happened, called it an over-reaction.

For the record, I believe the Government. I’m also getting sick of the political games from the Opposition. We’re in this together. One commentator suggested we ring an over 70-year-old to wish them well. I obediently rang a mate about a kilometre away to do just that. His laughing response was unprintable in a family publication but I did try. Moving forward I accept GDP will suffer in the short term, unemployment will increase and firms will go under. The provinces have been there before. I remember the Douglas/ Prebble reforms of the early 1980s where farmers and the provinces were expendable.

We suffered, farmers went to the wall, walked off their farms, committed suicide and provincial NZ ground to a halt. Food production was described as a sunset industry. We were on our own. Look at farming now. Realistically, we’re all the country has. As the headline on the front page of last week’s Farmers Weekly said, farming finds a way. We have in the past and will in the future. Stay safe.

Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com

Let’s learn from the history we are making From the Ridge

Steve Wyn-Harris

HALFWAY through the designated month-long lockdown and indications are that as far as controlling the spread of the virus things are going as well as could be hoped for. Just one death from 1200 cases is great but has brought up questions whether the cure is worse than the disease. There are suddenly plenty of pandemic experts with their own ideas of what should be done or could have been done better but I believe we have to trust the science and the specialists behind this response and stay firm on the course we find ourselves. As we watch our economy crumble around us folk, including one of my sons, losing their jobs, vegetables and meat

going to waste from outlets that aren’t allowed to operate while people queue to get similar at supermarkets, golf club greens going to ruin and many other unanticipated problems, one could easily lose their nerve. But in a sudden crisis it is better to act quickly and get 80% right than to delay in the hope of getting everything right. That’s what we are watching happen here. By trying to flatten the curve so our health system doesn’t collapse, as we are observing overseas, means the system can deal with an influx and continue to help and save people from heart issues, strokes, cancer, mental health issues and all the other diseases that have not suddenly disappeared. I’m interested to get some historical comparison to this epidemic compared to those of the past but just trying to find out the actual death rate is problematic. In early March the World Health Organisation was quoting death rates about 3% but latest thinking is that because many, mostly younger, people have very mild

cases that aren’t even reported the actual rate is a lot lower with estimates ranging from 0.5% to 2%. The range is likely explained by how good different countries are at identifying mild cases. So, let’s assume 1% is the death rate of this virus. Or a more comfortable way of looking at this is that the average person has a 99% chance of survival unless you are elderly with underlying health issues. In a country like the United States 60% of adults have an underlying medical condition. Seasonal flu has a mortality rate a tenth of that at 0.1% but the Spanish flu of 1918 was particularly contagious and killed 2%. It caused up to 50 million deaths. I note even in 1918 social distancing was practised and a study has shown US cities that did it well had lower death rates and better protected their economies. The lesson being that pandemics depress the economy, public health interventions do not. That should give us some comfort about our course of action. The plague of Justinian in 541AD also killed up to 50m people and is thought to have

hastened the fall of the Roman Empire, leading to the Dark Ages. Perhaps this pandemic might put pressure on globalisation?

In a sudden crisis it is better to act quickly and get 80% right than to delay in the hope of getting everything right. In 1520 a smallpox plague killed 56m and an estimated 90% of native Americans. Smallpox continued to kill 400,000 people annually in Europe alone and led to the development of the world’s first vaccine in 1796 by Edward Jenner. Like many others of my vintage I still have the small scar on my arm from this vaccine and after a concerted vaccination effort by the WHO smallpox was finally eradicated from the world in 1979. The only disease to ever be eradicated. Tell these facts to your anti-vaxer mates. But the standout pandemic remains the Black Death or

Bubonic Plague of 1347 to 1351. It killed an estimated 200m people at a time when there were only 400m humans on the planet and, consequently, wiped out half the population of Europe. It took 200 years for that population to recover. Imagine the devastation and disruption to human society at that time. Far greater than what we are seeing. So, we are dealing with a virus that can kill 1% but we see there have been viruses that can kill 50% and indeed Ebola, which is still out there, has a death rate of 50%. The surprising fact is that we haven’t been scenario planning for just such an event as we are seeing now. Perhaps it is a practice run for something more serious in humanity’s future, just as it has been in our past. We are not great at learning from history. Maybe this time we will be.

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

Opinion

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

Farmers have a critical role to play Jacinda Ardern THANK you to our farmers, growers, meat workers, fruit pickers and all the others who are helping our vital primary sector keep operating as an essential service during the covid-19 global pandemic. Your essential work is helping to feed fellow Kiwis and people in other countries who depend on us to supply top-quality food and fibre, as we depend on them for vital supplies. I know working under the alert level four restrictions creates big challenges – due to physical distancing and extra hygiene measures – but Kiwi ingenuity is leading the way to ensure the supply chain is working while reducing the risk of spreading covid-19. It is well acknowledged the world over that our primary sector can contribute to global food security concerns in the short term and will play a critical role in New Zealand’s economic recovery after covid-19. That is why we ensured our food supply chain of farmers, processing, distribution and supermarkets can continue to operate during the lockdown to keep our exports flowing and why we secured our trade links. It’s why we took the step to allow butchers to process pork – to prevent a backlog on farms that could have caused animal welfare issues. And why we made sure media could reach those in more remote areas who can’t always tune in to a press conference or to a news website. Every single one of us has a joint mission right now and that’s staying at home to save lives.

And I know we are all sacrificing something at the moment but we can be cautiously optimistic about our progress so far. We have seen modelling that shows our early and hard cumulative action such as border controls and restricting public gatherings has saved NZ about 3000 cases of the virus to date. That’s 3000 fewer sick people and 3000 fewer people passing it on.

Every single one of us has a joint mission right now and that’s staying at home to save lives.

We’ve made a good start, the vast majority of New Zealanders are doing the right thing and if we stay the course we will come through this more quickly. This is why we have strengthened efforts to go after those who aren’t sharing that mission and who appear to be breaking the rules. Police are out enforcing the rules, including recently arresting and charging a man who idiotically sneezed on people at a supermarket. I want to briefly touch on exports because they are a bright spot among some of the tougher news across other sectors. The overall value of goods exports for the year to date continues to run a little below 2019 figures but above 2018 figures. To provide a snapshot of how our goods exports are holding up

compared to a year ago, for the week ended March 18, total goods exports were up a little, 3.7%, compared to the same week in 2019. The fact we have seen this year-on-year growth under the circumstances is positive though this growth rate is likely lower than it would have been without this pandemic. I thank the different primary sectors doing ordinary but extraordinary work at the moment. Our horticulture sector, in particular apples and kiwifruit, who are employing people who have lost their jobs in other sectors. Our dairy farmers who continue to get on with it despite the added challenges of the drought over summer and Fonterra dairy co-op which is also trebling its supply of ethanol to help meet hand sanitiser demand. Our meat sector, adjusting their plans to work around processing times and to keep product heading into our key markets. Not everyone is in the position of being essential at the moment and the scale of that is depicted in the more than $6 billion that we’ve paid out to more than a million New Zealanders to keep them in jobs during the lockdown. It’s heart-breaking but the best way to stop the virus is also the best thing for our economy – by making the pain as short as possible. A strategy that sacrifices people in favour of a better economic outcome has been shown to produce the worst of both worlds – loss of life and prolonged economic pain.

THANKS: Prime Minister Jacinda Ardern has praised the primary sector for doing ordinary and extraordinary work during the lockdown.

I know what New Zealanders are like. Be it the exceptionalism of our national sports teams and athletes, underdogs that are world beaters who continuously beat the odds. The creativity of our entrepreneurs and rural sector who sell our ideas and products to the world at a scale that belies our size.

Or our proud history of being first – to give women the vote, to reach new heights, to try to be the first country in the world to eradicate Mycoplasma bovis. Let’s unite again in the fight. To beat covid-19 and emerge even stronger.

www.covid19.govt.nz

Councils go missing in covid-19 inaction Cameron Bagrie WHERE the bloody hell are you was the catchphrase for an Australian tourism promotion. The same question could be asked of local government in New Zealand. They’ve been largely missing in action when it comes to the covid-19 response. The Government’s response has been of the bazooka variety. The cheque book has been opened. Government debt is set to soar beyond levels seen in 1990-91. The numbers will look ugly. Brace for net government debt to move easily beyond 50% of gross domestic product. Leaning on the government balance sheet is the right policy response. It has a big balance sheet to absorb the hit and help the economy. Low levels of government debt, it’s about 20% of GDP now, mean the Government can now borrow

to help the economy. The Reserve Bank is joined at the hip. Extraordinary times call for an extraordinary response. Councils also have big balance sheets. They have an asset base of $150 billion. In 2018, the latest data available, they held more than $2b in cash and term deposits. They don’t have such a solid debt position as central government but councils still have balance sheets that can absorb some hits. They can borrow to support the economy just like the central government. Small businesses can’t take the hits and are facing a cash crunch. It seems incredible that a load of councils are still considering raising rates. Wake up. We’re in recession. It’s the worst I’ve seen. Zero needs to be the number for the annual increase in rates. Anything positive is unacceptable in an environment where businesses are fighting for

their survival, unemployment is set to surge and the economy is taking the biggest hit since the 1930s.

It seems incredible that a load of councils are still considering raising rates. Wake up. We’re in recession. It’s the worst I’ve seen.

Councils face financial pressures to fund infrastructure for growth but also legacy issues. They need more money. They don’t have too many levers. Rates are the primary one. So, there is pressure for rates to increase and make groups pay. Asset sales are seen as too hard to fund new investment. It’s not too hard. You are not selling

an asset. You are recalibrating the balance sheet and investing elsewhere. Now is not the time to be taxing households, farmers and businesses through rate increases. It’s about time councils jumped into the fray and started collectively talking about their covid-19 response to help the economy and regions. Immediate relief can come in the form of committing to zero for rate rises. Flexibility could be offered around payment deadlines to help businesses, farmers and households manage cashflow. Council investment projects should be pulled forward and shovel-ready projects identified, just like central government will do. Now is not the time to be slotting sectors with rising costs. But businesses, farmers and households also need a vision on what the other side of covid-19 will be like. A more friendly business environment would help a lot of businesses as they face the

tough decision: Do they battle on or shut up shop? Central and local government are going to need a ruthless obsession with supporting getting people into jobs. Unemployment is headed above 10%. That is going to require a massive drive to improve economic performance so businesses will want to employ people. Universal income benefits or other forms of state assistance are simply support. We want people in proper, paid work. Political ideology is going to need to be put to one side. The top priority is jobs. They don’t come out of thin air. For jobs to be created you need growth. Councils have a role to play just like central government. They have levers they can pull to support the regions. It’s about time they started thinking about pulling them and, particularly, supporting the farmers who are looking like a key part of the recovery when it comes.

On Farm Story

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

Askew is living the good life Most people hanker for the good life one way or another. Lee Askew’s interest in self-sufficiency and small-scale livestock farming was inspired by the 1970s television series of the same name. Her dream has turned into reality on the far side of the world from where she grew up, as Colin Williscroft found.

EE Askew’s path to becoming a boutique food producer has taken a few twists and turns over the years but these days the owner-operator of Shemshi Red Devon Beef is in her element. Askew runs about 90 Red Devon cattle on 66ha of hill country just out of Gisborne with her beef products ordered over the phone and internet and sold at the Gisborne Farmers Market and events like the Poverty Bay A&P Show, the East Coast Farming Expo and the Gisborne Races. English-born Askew was city-raised but family holidays were spent on farms, the most significant to her future a beef and lamb operation on Exmoor in Devon, southwest England. After studying agriculture Askew had her first experience of New Zealand through an exchange in 1989, initially working for three months on a 300-cow dairy farm near Matamata followed by six months on a Dargaville dairy farm with 600 cows. She loved it and on her return to Britain spent a year doing a farm management diploma before working in a dairy consultancy dedicated to reducing the impact of mastitis. It was a successful consultancy, so much so that job security was a concern. She joined the Devon and Cornwall Constabulary in 1997 where she met her soulmate and husband Brian Askew. In the early 2000s NZ police were recruiting officers from Britain. When detectives were included Askew applied and transferred in 2007. For the next 11 years she was

part of the child protection team in Gisborne. Not long after arriving she planted the seed for her business, buying just over 2ha of land so she could buy two in-calf Red Devon cows, though she had no real idea where that might lead. Brian supported her and started to learn what keeping livestock was all about. The breed was a reminder of her past, providing an emotional link to the Devon countryside. The breed was also being championed by another of her inspirations, Hugh Fernley-Whittingstall, who advocated its flavour and temperament on his River Cottage television series. That gentle nature makes the breed ideal for small-scale farming while also doing well on hard country, foraging where some other breeds won’t. Those first two cows had their calves then Red Devon bulls were borrowed from friends John and Gayle Couch at Devand Red Devons, with the herd slowly growing from there. However, it was still a part-time operation with police work taking up much of her time. It wasn’t till 2013 when she attended the NZ Red Devon Cattle Breeders Association meeting in Masterton that Askew had her lightbulb moment and saw how she could take the next step. The weekend event included a farm walk at Julian and Fiona Downs’ Rannoch Meats operation at Greytown where she heard how they sold meat through a stall at the Wellington Farmers Market. It made a huge impression on Askew.

NO REGRETS: Lee Askew was born in England but has made her home in the hills just out of Gisborne. Photos: Colin Williscroft

I can still remember the journey home in the car. I was fizzing. I knew that’s what I wanted to do. Lee Askew Farmer “I can still remember the journey home in the car. I was fizzing. I knew that’s what I wanted to do.” By August the following year she and Brian had a stall at the Gisborne Farmers Market, initially out of a gazebo that was later replaced by a purpose-built trailer with a fridge, two freezers

GOOD-NATURED: The temperament of Red Devon cattle make them ideal for small-scale livestock farming.

and barbecue. Brian was in his element flipping burgers. She soon realised she needed more meat so bought some pedigree heifers to help build up herd numbers though that meant a larger property was needed. Initially the search was for 10ha but that proved difficult. Instead the 66ha she now owns came up, which let her boost cattle numbers even more, buying in steers and heifer weaners. In 2015 they got the devasting news Brian had dementia. Police and farm work meant it was a very busy time and Askew decided she needed help. She had a business but did not really understand where she wanted to go with it or how to get there. Her saviour came in the form of a Farming Women Tairawhiti

(FWT) evening where she met Sandra Matthews, who steered her in the right direction, initially towards an Understand Your Farming Business course, which she found illuminating. “It started me on the right track and the support was wonderful.” The next step was a level five diploma in agribusiness management. The courses provided all the tools necessary to set goals and make strategies. Grateful for the help Askew has since hosted FWT groups and enjoys the discussion they generate. Egos don’t come into play, just honest, frank discussion. The group also comes in handy when Askew needs help for jobs like drenching and weighing calves.

ALL LINED UP: Rhodesian ridgebacks Karaba and Keo get out on the farm. Photo: Supplied

On Farm Story

BREEDING: Pedigree heifers have been used to build up herd numbers.

Sadly Brian, for his own safety, had to move into a special care unit in Gisborne. The idea of leaving her police job to concentrate fully on Shemshi had been at the back of her mind for a while and early in 2018 Askew decided it was time. She has not regretted the decision, with the business going from strength to strength. Initially cattle were sent to Auckland to be killed before being processed at The Village Butchery in Gisborne but that has now changed with Askew and another Gisborne farmer sending cattle to Progressive Meats in Hawke’s Bay, with the meat going back to Gisborne in their own chiller van. On average she sends about one animal a month, with that

type of structure helping sales and marketing, along with stock turnover. Not sending cattle to Auckland avoids the headache of competing for transport as a small player while the shorter journey is better for animal welfare. While Shemshi products can be ordered over the phone and online Askew loves being part of the Gisborne Farmers Market, which has grown over the past five years, both in size and the range of produce available, It is now open year-round. She says all the stallholders are passionate about the market’s philosophy of food produced locally by enthusiastic people. They believe in what they are doing and take pride in their produce. She sells a range of cuts including eye and scotch fillet, porterhouse and rump steaks, rolled roasts, wiener schnitzel, spare ribs, corned silverside and steak mince and, at the market, ready to eat food such as gourmet pies and steak burgers. A recent purchase of a biltong

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

Photo: Supplied

machine has added another product. The focus so far has been on the Gisborne district rather than further afield though there has been national recognition, including winning the Tastiest Produce from the Butchery Award at the 2015 Farmers Markets NZ Winter Food Awards. Two years later she was runnerup for the same award and in 2018 won Best Scotch Fillet while her eye fillet was highly commended. The awards are justification of her approach with the aim to always try to improve meat quality, she says. Another income stream is Villa Shemshi, a bed and breakfast farmstay that’s been welcoming guests for the past couple of years. After moving to the farm at the end of 2014 the Askews lived in a caravan for 18 months while her home and farmstay was built. She has been blown away by the response of her guests and has enjoyed meeting some very interesting, lovely people. The paying guests obviously rate the experience highly with

PURPOSE BUILT: The food trailer is a fixture at the Gisborne Farmers Market and other events in the district. Photo: Supplied

BEST FRIEND: Sammy the border collie is Lee Askew’s right-hand dog.

Villa Shemshi scoring 9.5 out of 10 on Booking.com based on 74 guest reviews. There are plans to add to the tourism side of the business, with a log cabin for glamping possible. The idea would be to make it private from the main house but still capitalise on the view across the property. However, a period of consolidation is required first. Horses and a side-by-side are used to get around the property, which is divided into 24 paddocks ranging in size from 0.5ha to 10ha. Working on-farm by herself Askew is conscious anything can happen so has a personal locater beacon in case of accident. When she bought the farm soil fertility was low with weeds and blackberry correspondingly high. Both are a work in progress. Soil fertility is steadily improving by using phosphorus but not nitrogen because the preferred approach is to be as lowinput as possible. A creek running through the farm has been fenced and poplar poles planted for erosion control on the steep to rolling land. There’s a lot of kanuka and to capitalise on it she has an arrangement with a local beekeeper to keep hives near the bottom of the farm. Eight-year-old border collie Sammy, which arrived two years ago as a nine-month-old from a farmer who was moving, provides daily on-farm help and company. Dogs are close to her heart and Askew breeds Rhodesian ridgebacks, bringing three generations of the dogs with her when she emigrated. These days Shemshi is home to a grandmother, auntie, mum and daughter. Ridgebacks were bred to hunt lions, which shows when they play

together, demonstrated by their agility and ability to jump and spin out of the way. They make good guard dogs, No doorbells are required. Before becoming involved with the farmers market Askew was involved with the NZ Rhodesian Ridgeback Association and the dogs were taken to shows but time constraints made that difficult to continue. The cattle stud name Shemshi, which means rising sun in Swahili, was created for her ridgeback kennel and the dogs do enjoy basking in the sun. Askew also enjoys the climate and the rural lifestyle living just outside Gisborne offers, saying big cities have never interested her. “It’s a pretty good lifestyle,” she says. >> Video link: bit.ly/OFSaskew

Adapting to change WITH farmers markets closed and tourism non-existent in the covid-19 lockdown Lee Askew’s business has completely changed for the time being. She spent the first couple of weeks improving the farm, attacking blackberry, thistles and kanuka seedlings while using an excavator to work on tracks before winter arrives. She can take orders through her Shemshi Red Devon Beef Facebook page as long as deliveries are contact-free. In the meantime Askew is surviving in her bubble of four ridgebacks, Sammy the collie and two horses.

WE’RE HERE FOR YOU. WHEN WE WORK TOGETHER, WE'LL WEATHER TOGETHER. Right now we are experiencing a natural moment of change. We’re having to embrace a new norm, changes in behaviours, new technologies, fresh uncertainty and the outcome might not be entirely business as normal but business as different. To get us through, information we can trust is king. Which is why we have mobilised our GlobalHQ content team of 26 reporters, AgriHQ analysts

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NEW LISTING

Boundary lines are indicative only

Wairoa 821 Tiniroto Road and 14 Kent Road, Ruakituri

57ha freehold, maize crops, machinery and leases

An A'maize'ing opportunity located 16km north of Wairoa, Northern Hawke's Bay, is a fantastic cropping business opportunity. Bound by the Wairoa river the picturesque home title of 37ha includes approximately 15ha of maize with the four bedroom villa and numerous implement sheds with a large lockable workshop/three bay high stud shed. The 20ha Kent Road title includes approximately 11.5ha of maize, a three bedroom weatherboard home with the balance easy hill. The going concern sale includes a large list of tractors, cultivation and harvesting equipment as well as over 80ha of maize crop soon to be harvested and the opportunity to enter into a longer term lease of approximately 45ha of cropping land in Wairoa. An opportunity to start your own cropping business or for farmers wanting to extend into a mixed/cropping business with the ability to finish livestock.

Tender (unless sold prior) Closing 4pm, Wed 13 May 2020 17 Napier Road, Havelock North Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Stephen Thomson 027 450 6531 stephen.thomson@bayleys.co.nz

bayleys.co.nz/2852103

EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008 MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz

IT’S ALTOGETHER BETTER IN THE

COUNTRY

Country is Altogether Better at bringing what we’ve seen and heard in the rural market directly to you. As the leaves begin to turn, we’ve had our eyes and ears to the ground to deliver you autumn’s freshest farm, speciality and lifestyle property opportunities for sale. Brought to you by Bayleys – New Zealand’s number one rural real estate brand – Country is the market-leading publication and forum for rural property and commentary. In the latest edition, Country explores ideas around regenerative agriculture and how we can implement more sustainable practices on-farm, and considers how New Zealand’s food provenance story is perceived globally. We also look at the concept of farm parks for lifestyle property buyers, and summarise a selection of recent rural sales nationwide to help you get a gauge on the market. For a great steer on all things Country – call 0800 BAYLEYS or view online at bayley.co.nz/country

Altogether better at rural real estate.

RURAL REAL ESTATE BRAND

Putting the land right

Regenerative agriculture is providing farmers with sustainable options.

New Zealand’s food story Kiwi food producers find their voice on the world stage.

FEATURING

FARM, SPECIALTY AND LIFESTYLE PROPERTIES FOR SALE ISSUE 1 – 2020

LICENSED UNDER THE REA ACT 2008

A LT O G E T H E R B E T T E R

Residential / Commercial / Rural / Property Services

Real Estate

FARMERS WEEKLY – April 13, 2020

farmersweekly.co.nz/realestate 0800 85 25 80

FARM GOING TO TENDER • Situated south of Whanganui at 123 Ratana Road is this 83 hectares consented for intensive agriculture. • This farm has great soil fertility and extensive drainage has been put in place including nova flow. • There is a very good bore that supplies quality water to stock troughs and dairy. • Includes 350 cow feed pad, very good stock handling facilities, eight bay machinery shed and 20 aside dairy. • Comfortable three bedroom home on separate title. • Good layout with numerous paddocks. Internal fences are mainly two wire electric along with a good internal central laneway system and good rural fencing. • Offers diverse income stream from beef, cropping, dairy.

ICE T NO L A FIN

• The vendors are genuine sellers and wish to sell their farm on the day. • Tender closing 16th April 2020, 1pm (if not sold prior). Call Les.

GREAT BEEF FATTENING, DAIRY HEIFER GRAZING OR CROPPING BLOCK

Sallan Realty

Google ‘Sallan Realty’ Your Farm Sales Specialist

LK0101727©

• Situated at 311 Taonui Road, Aorangi, Manawatu is this lovely 36.7 hectare (STFS) flat property. • Currently being used as a dairy farm but has soils capable of growing great crops, fattening cattle or running your dairy replacements. • Very good layout with good metal races and internal subdivision along with water troughs in all paddocks. • Facilities include cattle yards, concrete floor machinery shed, disused wool shed and disused bore. • This property has outstanding fertility and has a strong history of exceptional grass production. • Now is your chance to purchase quality farm land close to Feilding. • Call Les on 0274 420 582 for more information.

LES CAIN 0274 420 582

Licensed Agent REAA 2008

RURAL | LIFESTYLE | RESIDENTIAL

Your destination For Rural real Estate farmersweekly.co.nz/realestate

SOUTH CANTERBURY 338 Main North Road Geraldine Beckons - 24.6ha Productive property on Geraldine's northern boundary. Currently utilised as an intensive dairy grazing unit. Subdivided into 16 main paddocks with large cattle troughs to all paddocks with water sourced from own bore. Comfortable three bedroom home (built 2005), master with en suite, open plan kitchen, dining, living and lounge. Large double garaging with internal access.

DEADLINE PRIVATE TREATY

Plus GST (if any) (Unless Sold Prior) Closes 4.00pm, Thursday 14 May

Richard Scott M 021 352 701 pggwre.co.nz/GER32212 PGG Wrightson Real Estate Limited, licensed under REAA 2008

Helping grow the country

Agri Job Board

DOLOMITE Water Filter Systems NZ’s finest BioGro certified

SHEPHERD

Mg fertiliser For a delivered price call ....

Top property in a dream location is seeking an experienced Shepherd.

0800 436 566

JOB VACANCY – STUD STOCK MANAGER

LEASE LAND WANTED Required by young and progressive experienced farming family in the Hawke‘s Bay.

The successful applicant must have a strong team of dogs and be able to work alone, a good sense of humour with a can-do attitude.

This is a unique opportunity to be involved in the future development of one of the most innovative studs in the country. When the present crisis is over, a further ad will be placed in the Farmers Weekly inviting applications. In the meantime, a job description will be available on our website. LK0101951©

Gordon Levet | Tel 09 423 7034 Email glevet5192@gmail.com Website www.kikitangeo.co.nz

Experienced Shepherd Puketitiri – Hawke’s Bay

They will be part of a well organised, cohesive team and will answer to the Manager. This is an exciting opportunity to work with a progressive organisation that is involved in modern farming practice

All options, districts considered.

SHOP ONLINE

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

50 TON WOOD SPLITTER 12HP, Diesel, Electric Start

Competitive remuneration package.

Glenhope is a family owned and operated business located one hour northwest of Hastings, in the highly regarded farming district of Puketitiri. This 690ha property comprises 7000su and is run as a high performing commercial sheep and beef breeding and finishing operation with a small Romney ram stud adding diversity to the business. It is summer safe with a good mix of flat to hill country.

Heavy duty construction for serious wood splitting. Towable.

View photos on Trade me jobs.

Phone Nick Carr 021 656 023 or 06 281 0059 Applications close – 17th April, 2020

LK0101766©

Please e-mail applications with CV to: tracy@gisborne.net.nz

Due to the career progression of the current employee, our client is now seeking an Experienced Shepherd to join their team. This role presents a fantastic opportunity to work alongside supportive owners who encourage personal development and where you will be exposed to all aspects of a high performing farming business.

LK0101288©

Situated in a great community this position comes with an excellent remuneration package including a lovely three bedroom home. There is a bus at the gate to the well-resourced primary school in Patoka and the local area offers plenty of hunting and fishing right on your doorstep!

To find out more visit

www.moamaster.co.nz

Heavy duty long lasting

Phone 027 367 6247 Email: info@moamaster.co.nz

Ph 021 047 9299 Phone Mark 0800 478 729 or (07) 883 2751 or Tracey 027 554 1841

2 YEAR WARRANTY. NZ ASSEMBLED. ELECTRIC START & QUALITY YOU CAN RELY ON

LK0101998©

POWER CABLE

We could save you hundreds of $$

farmersweeklyjobs.co.nz

Prices include delivery to your door!

JOBS BOARD

For friendly & professional advice CALL 0800 843 0987 Fax: 07 843 0992 Email: power@thecableshop.co.nz THE CABLE SHOP WAIKATO www.thecableshop.co.nz

Contract Milker Dairy Assistant and Calf Rearer Jobs

TOWABLE TOPPING MOWER

12Hp Diesel. Electric Start

HOMES FARM SHEDS SUBDIVISIONS PUMPS LK0101902©

RECRUITMENT & HR

13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut

TOWABLE FLAIL MOWER

11.5HP Briggs & Stratton Motor. Industrial. Electric start.

GST $4400 INCLUSIVE

GST $4200 INCLUSIVE

50 TON WOOD SPLITTER

GST $4200 INCLUSIVE

LK0101995©

Applications will be reviewed as they are received.

GST Special Price $4200 INCLUSIVE Very limited stock

LK0101996©

Noticeboard

To gain the most from this role you will need to have a minimum of two years’ experience, have an enquiring mind and willingness to learn. A team of 4-6 dogs under good command will be required as the emphasis of this role is stock work and pasture management. Additionally, you will need to keep good stock records and understand the value of accurate farm data.

For more information, or to fill out an application, please visit www.ruraldirections.co.nz or phone the Rural Directions team in confidence on 0800 475 465 (Reference #2515).

• Installer Network

• Chlorine Removal

Phone 027 817 6646

Living on the farm is required and a comfortable three bedroom Lockwood home is provided. The school bus pick up is at the gate, dropping off to a choice of local Gisborne primary, intermediate and secondary schools and with the location so close to town, enables an easy commute for employment opportunities for a partner.

• No Expensive Cartridges

• Town or Tank Water

LEASE LAND SUITABLE for sheep and cattle grazing

The well-known Kaharau Angus Stud has been operating at Rimunui Station for over 30 years.

This is a preliminary notification that due to unforeseen circumstances, a position for a Stud Stock Manager will become available later this year.

• Whole House

LK0099618©

Rimunui Station, located 7km (10 mins drive) from Gisborne CBD, is a 1000ha effective breeding and finishing property consisting of easy, medium and steep hill country, wintering 400 Angus stud breeding cows and 3200 breeding ewes.

LK0101978©

KIKITANGEO ROMNEY STUD

Noticeboard

To find out more visit www.moamaster.co.nz

Phone 027 367 6247 • Email: info@moamaster.co.nz

CHILLERS & FREEZERS

Farm Manager Fencer

[For farmers and hunters]

General Hand Other Shepherd

udly NZ Madew Pro Since 1975

Stud Stock Manager

STANDARD FEEDER (C6 Pinned)

*conditions apply

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

LK0100828©

frigidair@xtra.co.nz

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

LK0102003©

021 441 180 (JC)

When only the best will do!

• • • •

1 x 6 foot bale 2m diameter 15 feed positions 15 - 30 animals

100% New Zealand Made Quality Stockfeeders

0 $ 85 +GST

OVAL FEEDER (S2 Pinned) • • • • •

3 x 4 foot bales 2 x 6 foot bales 24 feed positions 24 - 48 animals 4m long

$ 120+G0 ST

0800 104 404 | www.stockfeeders.co.nz

New Zealand’s proven stock feeder for 24 years | 100% New Zealand Tensile Steel

LK0101513©

Shepherd / General

Noticeboard

Livestock Noticeboard

ANIMAL AND HUMAN healer, now doing absent healing. For more information phone Ron Wilson 027 435 3089.

R1 BULLS OR R1 HEIFERS. Anything considered. North Island. Phone 027 2490 996.

CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com 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

ATTENTION FARMERS FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz

DOGS FOR SALE SELLING AND BUYING. No contact! Deliver, trial www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

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

HORTICULTURE 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

HUNTING ACCESS WANTED MID NORTH ISLAND. Retired farmer looking for somewhere to hunt at rear of farm/station bordering bush. Would consider buying part of it. Contact Warren 022 687 3164.

LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. RED DEVON BULLS; Also in-calf cows + heifers, BVD vaccinated + weaners. Hill country stud. TB-C10 - 06 376 3966

RAMS FOR SALE WILTSHIRE & SHIRE® Meat rams. Low input. www.wiltshire-rams.co.nz 03 225 5283.

SHEEP SCANNING AVAILABLE

FARM MAPPING SIMPLE AND CLEAR farm maps with paddock sizes will help you achieve your daily goals. Get a free quote from farmmapping. co.nz

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

SERVICING SOUTH WAIKATO, King Country, Ruapehu, Taihape areas. Eight years experience, NZ & UK. Fully Pneumatic, 3 Way drafting, EID available. No mob too big or small. Wet/dry to Triplet and foetal ageing. Phone for prices and availability 027 479 4918.

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.

TARPAULINS NZ MADE. Heavy duty covers for hay, silage, tractors, bulldozers, trucks etc. All sizes. For more info Westlorne Ohakune 06 385 8487 or email: westlorne@xtra. co.nz - Visit our website: www. westlorne.co.nz

SALE TALK

As a group of soldiers stood in formation at an Army Base, the Drill Sergeant said, “All right! All you idiots fall out.” As the rest of the squad wandered away, one soldier remained at attention. The Drill Instructor walked over until he was eye to eye with him, and then raised a single eyebrow. The soldier smiled and said, “Sure was a lot of ‘em, huh, sergeant?”

STOCK FOR SALE

JERSEY JOY

LIVESTOCK ADVERTISING Are you looking in the right direction?

Lindsay Park Bidr Sale, April 15 – 6pm • • • •

25 Select Jersey cows Young, Typey, High Index No 1 Sire Conaght. Daughter in sale BW 265 Ave BW 201 PW 232

Bidr Lindsay Park XBred Cow Sale April 29 – 6pm • 25 selected spring calvers Wanted: RI Jersey heifers for export Contact: Ross Riddell 0272 111 112 Vendor: Clive Perrott 021 139 0280

R2YR FRSN HERE STEERS 350-500kg

in-calf

R2YR ANG ANG/HERE STEERS 370-420kg 2YR FRSN

To advertise

BULLS 300-450kg

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

70 PURE BRED ANGUS HEIFERS 380kg

Linking buyers and sellers

VIC COWS & R2YR HEIFERS

STEERS, HEIFERS, BULL CALVES

Trade livestock like never before

See our website for more stock

www.dyerlivestock.co.nz

WEEKLY AUCTIONS Wednesday night – North Island Thursday night – South Island

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

FEATURE AUCTIONS Tuesday, 14 April 2020 12.30 pm Burnett Valley Trust Capital Stock In-Calf Female Sale 1.00 pm Burnett Valley Trust Angus Calf Sale

DAIRIES FOR SALE High Index’s - Farmers want a deal

Wednesday, 15 April 2020 12.00 pm PGG Wrightson King Country Weaner Sale 12.30 pm PGG Wrightson King Country Store Cattle Sale 6.00 pm Lindsay Park Jersey Joy Sale

51 top Xbred R1yr Hfrs BW228 PW248 Capital replacement line, big, $850 Kelly Higgins 027 600 2374 Ref: DH1646 36 Xbred I/C Hfrs BW185 PW161 DTC 1/8 to Jsy, capital line $1350 Richard Andrews 027 536 8693 Ref: DR973

NZ’s Virtual Saleyard

340 Great Fsn Herd BW84 PW79 RA98% DTC 15/7 to LIC, 370ms, G3 profiled Closed herd 46yrs, picture perfect cows Replacements also available $1800 Darrin Holm 027 242 2905 Ref: DR1401

For further information go to bidr.co.nz or contact the team on 0800 TO BIDR

125 Jersey Herd BW153 PW162 RA86% DTC 18/7 to LIC 5wks, system 1 feeding A well-bred good shifting herd, $1700 Richard Baird 027 407 0562 Ref: DR1761 30 FsnX R1yr Hfrs BW175 PW193 Capital line, well grown, top herd $850 Brent Espin 027 551 3660 Ref: DH1747

Visit our Website for the best selection available

www.carrfieldslivestock.co.nz

Livestock Noticeboard

DAIRY HERDS & IN-CALF HEIFERS FOR SALE PGG Wrightson Dairy representatives are specialists at marketing and selling dairy herds. Benefit from the nationwide team that is dedicated to matching herds with the right buyers and achieving an optimal outcome for your business.

"Maximising your return through personal livestock management"

NORTH ISLAND HERDS & IN-CALF HEIFERS FOR SALE 190 Frsn/Frsn X Autumn Calved In Milk Cows. BW 54

LIVESTOCK ADVERTISING

Are ewe looking in the right direction?

227 Capital Stock Friesian & Friesian X Herd BW 74

PW 88

$1,750+GST

•

RA 98% Long established, hardworking herd farmed in a difficult climate. Vendor exiting industry and farm is sold. Very low cell count. Herd tested and milked on System 2. All Fully Recorded. Tim Pickering - 027 446 9963 Agonline ref: 6157

07 823 4559

byllivestock

•

150 Frsn Cows PW 19

$1,595+GST

•

RA 90% Calving 13th July, holstein frsn cows ave 475 m/s Ben Gordon - 027 270 7729 Agonline ref: 6818

70 Frsn/Frsn X Cows BW 100

$1,580+GST

PW 151

•

RA 97% Calving 10th July, Spring calving content Autumn herd. Herd ave 520 m/s. Dean Evans - 0272 431 092 Agonline ref: 6483

250 Frsn/Frsn X Cows BW 97

NATIONAL TEAM. LOCAL KNOWLEDGE. _______________________________

$1,850+GST

PW 69

RA 70% calved from 10th March. Genuine aut herd, young cows, 8yrs one owner. Farm sold, will sell run out offers. Dean Evans - 027 243 1092 Agonline ref: 6745

BW 6

byllivestock.co.nz

LK0102011©

GRAZING WANTED

LK0101437©

ANIMAL HANDLING

PW 118

$1,600+GST

•

RA 92% Calving 22nd July, farm sold. Dean Cook - 027 243 1429 Agonline ref: 6477

Call HANNAH 0800 85 25 80

livestock@globalhq.co.nz

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

Helping grow the country

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)

4.90

4.95

5.45

NI lamb (17kg)

6.85

7.00

7.20

NI Stag (60kg)

7.00

9.15

NI Bull (300kg)

4.90

4.95

5.10

NI mutton (20kg)

4.60

5.05

SI Stag (60kg)

7.00

9.15

NI Cow (200kg)

3.30

3.40

3.90

SI lamb (17kg)

6.70

6.80

6.75

SI Steer (300kg)

4.60

5.05

SI mutton (20kg)

4.20

4.85

SI Bull (300kg)

4.65

4.75

Export markets (NZ$/kg)

SI Cow (200kg)

3.20

3.40

UK CKT lamb leg

10.56

10.60

9.21

US imported 95CL bull

8.18

8.36

7.88

US domestic 90CL cow

8.84

8.94

7.15

Slaughter price (NZ$/kg)

Last week Prior week

Last year

Export markets (NZ$/kg)

6.50

$/kg CW

South Island lamb slaughter price

$/kg CW

7.0

Oct

5.00

(NZ$/kg)

Apr

Jun

2018-19

Dairy

Aug 2019-20

Dec 5-yr ave

Apr 2018-19

Jun

Last year

Coarse xbred ind.

2.96

37 micron ewe

30 micron lamb

7.25

420

6.25 Jan-20 Sept. 2021

Urea

567

625

Super

314

321

DAP

787

833

380

Mar-19

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

vs 4 weeks ago

2620

2630

2775

SMP

2390

2400

2660

AMF

3950

4200

4625

Butter

3825

3780

Milk Price

7.20

7.22

7.21

Sep

13.8

Meridian Energy Limited (NS)

4.54

5.8

3.61

Spark New Zealand Limited

4.4

4.93

3.445

Auckland International Airport Limited

5.45

9.21

4.26

Mercury NZ Limited (NS)

4.23

5.62

3.595 6.61

Ryman Healthcare Limited

10.95

17.18

Port of Tauranga Limited

6.81

8.08

4.9

Contact Energy Limited

5.9

7.74

4.54

22.25

25.23

18.42

Ebos Group Limited

5pm, close of market, Thursday

13.8

Comvita Limited

2.69

3.25

1.66

410

Delegat Group Limited

8.53

12.1

6.39

400

Fonterra Shareholders' Fund (NS)

3.94

4.06

3.62

Foley Wines Limited

1.6

1.91

1.35

390

$/tonne Aug 4 weeks ago

17.95

YTD Low

2800

Jul

17.93

17.95

2900

May Jun Latest price

21.1

The a2 Milk Company Limited

YTD High

May-19

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

WAIKATO PALM KERNEL

2600

YTD Low

17.93

Mar-19

2700

32.22

370

WMP FUTURES - VS FOUR WEEKS AGO

YTD High

28.63

The a2 Milk Company Limited

380

* price as at close of business on Thursday

Fisher & Paykel Healthcare Corporation Ltd

Company

420

$/tonne

Prior week

Company

Listed Agri Shares

CANTERBURY FEED BARLEY

WMP

Apr

May-19

NZ average (NZ$/t)

Top 10 by Market Cap

400

Mar-20

DAIRY FUTURES (US$/T) Last price*

Aug 2019-20

Last year

390

Nearby contract

Jun

Prior week

410

$/tonne

6.75

Nov-19

Apr 2018-19

Last week

CANTERBURY FEED WHEAT

Jul-19 Sep-19 Sept. 2020

Feb

FERTILISER Prior week

430

May-19

Dec

Fertiliser

Aug 2019-20

Last week

7.75

2500

Feb

Grain

Data provided by

MILK PRICE FUTURES

5.75

Oct

5-yr ave

WOOL

Feb

8.5

6.5

5.50

Dec

9.5

7.5

8.0

5.0

5-yr ave

US$/t

10.5

6.0

South Island steer slaughter price

Oct

South Island stag slaughter price

11.5

6.00

4.50

$/kg MS

7.0

9.0

6.50

8.5

6.5

5.50

4.50

9.5

7.5

5.0

5.00

Last year

10.5

8.0

6.0

6.00

Last week Prior week

North Island stag slaughter price

11.5

$/kg CW

North Island steer slaughter price

North Island lamb slaughter price

9.0

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

Livestock Improvement Corporation Ltd (NS)

0.76

0.82

0.75

Marlborough Wine Estates Group Limited

0.192

0.197

0.191

New Zealand King Salmon Investments Ltd

1.87

2.3

1.29

PGG Wrightson Limited

1.9

2.47

1.55 5.55

Sanford Limited (NS)

6.49

8.2

Scales Corporation Limited

4.72

5.17

3.3

SeaDragon Limited

0.125

0.205

0.001

Seeka Limited

3.6

4.74

3.4

Synlait Milk Limited (NS)

7.3

9.1

4.36

310 300

T&G Global Limited

290 280

S&P/NZX 50 Index

10032

12073

8499

S&P/NZX 10 Index

10607

12096

9100

S&P/NZX Primary Sector Equity Index

2.48

2.93

2.35

15314

16941

12699

270 260 250 240

Mar-19

S&P/FW PRIMARY SECTOR EQUITY

May-19

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

15314

S&P/NZX 50 INDEX

10032

S&P/NZX 10 INDEX

10607

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

4.60

SI SLAUGHTER LAMB ( $/KG)

6.70

SI SLAUGHTER STAG ( $/KG)

7.00

PULSE SUZ BREMNER

WEATHER

Overview

Soil Moisture

This week kicks off with a rapidly deepening storm east of the country. Gales, some severe, are possible today in some places but ease tomorrow as the storm tracks southeast of the Chatham Islands. This means New Zealand has some colder days coming with south to southwest winds for a time but the wind will turn westerly quarter for some. Later this week high pressure is likely to track north of NZ and bring more dry weather to the top of NZ but also encourage another, windier southwest flow up the country.

08/04/2020

Source: NIWA Data

GONE: Top wether lambs sold for up to $109 at Nokomai Station’s on-farm sale on bidr.

Largest bidr auction yet is a big success

HE covid-19 lockdown means the annual on-farm sale at Nokomai Station, northern Southland, could not be held. PGG Wrightson agent Barry McAlister and the station owners then had to come up with a way of moving about 8000 mainly Halfbred wether and ewe lambs. The online auction platform bidr was used and proved to be an easy process with great success. The bidr auction was held on the same day as the calendared on-farm sale, Monday Apri 6, and phone work meant annual buyers were ready to bid at the 8pm time-slot, alongside some new blood in the market. McAlister said the whole process was simple. They drafted up the lambs into lots the Thursday prior, weighed them and took photos and videos to be loaded onto the bidr website. The auction was held on Monday night and of the 13 lots sold, four were passed in but sold to registered buyers after the auction. The lambs were off Nokomai by the following Thursday. “Holding a bidr auction rather than an on-farm proved to be a much simpler process. “There is a lot of organisation and staffing required for an on-farm and some people have to travel great distances to attend. And 70% of the buyers this year were returnees and so knew the lambs well and could bid

from the comfort of their own homes. The balance were new buyers, which was pleasing.” One lot of lambs stayed in Southland with another heading to north Canterbury and the balance Mid Canterbury. McAlister admits to some nervousness before the auction. “I was nervous as hell and the biggest challenge was where to set the prices as the current market environment is not offering up much support in that area. “But the vendors were chuffed with the results.” The reserve price on all lines was set very close to the start price, which made the auction flow well. The top wether lambs made $104-$109 and the balance $85.50-$97. Halfbred ewe lambs and two lines of mixed-sex Texel-cross sold for $85.50-$100. Bidr national territory manager Caitlin Rokela provided the statistics for what was the largest tally sold in one auction to date. In all 260 people watched the auction with 77 buyers registered. Of them, 33 were agents and the balance independent buyers. They registered from a widespread area covering much of the South Island and areas of the North Island. A large number of new buyers signed up in the days leading up to the Nokomai Station sale and in the 10 days before the sale bidr had a 45% increase in buyer numbers.

Highlights

Highlights/ Extremes

Temperature

Wind This week kicks off windy with severe gales in exposed places today, easing tommorrow but still a little windy at times in the week ahead from the south to southwest.

Today and tomorrow are colder for many, especially the lower half of the South Island, which might even feel wintry for a time. This week temperatures are about normal for this time of year.

Stormy weather today then calmer. Refer to RuralWeather. co.nz to drill down in your local area for wind speeds and refer to www.farmersweekly.co.nz/ weather for the most up-to-date rain maps for the next seven days ahead.

14-day outlook

7-day rainfall 7-DAY RAINforecast MAP

The past 14 days have been very busy. The next 14 days look quieter as high pressure returns to the NZ area though it doesn’t quite sit over us. At this time of years the highs and lows all tend to be moving through at pace but one high after the other is making it hard to notice as they are merging a fair bit over Australia. No significant lows forecast, other than today, over the next two weeks.

Wet weather today will start to ease as we go through the week as high pressure in the Tasman Sea grows. Showers here and there otherwise many regions again are drier than normal. This weekend looks similar as does early next week.

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For more maps and insights go to farmersweekly.co.nz/weather

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Markets

36 FARMERS WEEKLY – farmersweekly.co.nz – April 13, 2020 NI SLAUGHTER LAMB

NI SLAUGHTER STEER

NI SLAUGHTER BULL

($/KG)

18-MONTH ANGUS STEERS SOLD ON BIDR FROM GISBORNE

($/KG)

($/KG LW)

6.85

4.90

2.57

$80-$109/hd high -20% Station Autumn lights Decrease in Chinese pork Nokomai Lamb sale, half bred

GDT lift comes as surprise hugh.stringleman@globalhq.co.nz

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Cattle Yards

ACROSS THE RAILS MEL CROAD

Covid-19 hits breeding cow numbers

Hugh Stringleman LOBAL Dairy Trade prices rose last week against expectations that demand and supply factors worldwide have been changed by covid-19 for the worse. The GDT index lifted 1.2% on April 7 after two months and four fortnightly auctions of reductions totalling 12%. Whole milk powder prices rose 2.1%, butter 4.5%, anhydrous milk fat 0.4% and cheddar 0.2%. Skim milk powder prices fell 0.8% but Fonterra’s prices between US$2500 and $2800/tonne were at least $400 better than those obtained by European company Arla. SMP prices have fallen about $500 a tonne across the board since January and are now similar to the first half of 2019. ASB senior rural economist Nathan Penny said the GDT lift was against the run of play and might not mean much to the downward trend in farmgate milk prices. “The lift was most likely due to the seasonal decline in volumes on top of the recent drought rather than any potential stabilisation of global dairy demand.” The volume offered and sold in the latest auction was down 16% on the previous auction, he said. Westpac analyst Michael Gordon said the latest GDT results are surprisingly positive against the backdrop of a severely weakened global economy. But they are in keeping with the calmer tone in world financial markets since the previous GDT auction on March 18. “While the recent stability in prices is encouraging we still think that the dairy sector still has a long, hard road ahead of it. “We expect further price declines over the next few months.” Rabobank senior dairy economist Michael Harvey, based in Melbourne, said the lift in GDT index is welcome

production from this time wether sold on Bidr last year

LIFTED: NZX dairy analyst Amy Castleton has upped her farmgate milk price to $7.06/kg.

The lift was most likely due to the seasonal decline in volumes on top of the recent drought rather than any potential stabilisation of global dairy demand. Nathan Penny ASB

and will shore up farmgate milk prices in New Zealand and Australia this season. Looking into next season the imbalances between supply and demand in Europe and the United States

YARDS

will spill over into world prices, which he expects to drift lower over the next three months. NZX dairy analyst Amy Castleton said her current season milk price forecast is $7.06/kg milksolids, up eight cents, after the latest GDT and subsequent movements on the dairy derivatives market. Before the GDT event the futures market expected a fall of 3% in WMP prices and afterwards that sentiment turned to a small rise over the rest of this year. SMP prices are now expected to fall further into the $2400 range by June and then stay there. NZX milk price futures are now $7.22 for the September 2020 contract, $6.43 for the 2021 contract and $6.30 in very early trading on the 2022 contract.

BRIDGES

THE near immediate closure of sale yards across the country couldn’t have come at a worse time for beef breeders. Weaner and incalf cow fairs up and down the country have been cancelled with breeders and their agents working on new solutions to move calves and cows. For some, the transition to new selling methods has been relatively painless. By themselves, the Feilding and Temuka saleyards would have welcomed 25,000-27,000 weaners this season. Feilding managed one fair before lockdown but Temuka wasn’t as fortunate. There are still large numbers to sell, including many calves held back because of weak market conditions earlier in the season. Beef calf numbers have increased in recent years as farmers, buoyed by strong returns for weaners and the general lift in beef markets, reacted by increasing breeding cow numbers. After bottoming out in 2016 at 950,000 head, national breeding cow numbers last year were pegged at 1.02 million. The testing combination of drought and weaker market conditions since early summer mean breeding cows are now facing the chop on some farms. Many farmers are facing lengthy processing delays because of covid-19 restrictions and low feed covers. For those with a breeding cow herd and potentially weaners still on hand, the decision to offload the animal with the largest appetite - the breeding cow - is being made. It’s a tough decision to cull breeding cows and it’s one that is never taken lightly, particularly given the investment many farmers put into their herds. We saw an estimated 10,000 cows removed from the national beef cow herd in 2018 and 2019. However, the impact of drought and covid-19, both of which farmers have little control over, will knock breeding cow numbers even lower by the time on-farm counts are done in June. It’s a sad reality that even after we are out of lockdown and markets are showing some improvement the impact of covid-19 on our beef industry is going to be long lasting. mel.croad@globalhq.co.nz

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