Farmers Weekly NZ December 13 2021

4 Farmers back restructure Vol 19 No 48, December 13, 2021

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High costs here to stay Gerald Piddock

T

gerald.piddock@globalhq.co.nz

HE high cost pressures that are hitting the primary sector are expected to continue for the immediate future, DairyNZ says.

Statistics New Zealand released its latest farm expense price index last month, which showed large inflation costs for farmers over the past two years.

Four key farming costs have experienced inflation of more than 10% between 2019 and 2021, including fertiliser with a 15.9%

increase; cultivation, harvesting and animal feed with an 18.9% increase; electricity with a 21% increase; and stock grazing costs, which are 36.9% higher this year than they were in 2019.

ANZ’s December Agri Focus publication also noted the effect of high costs, saying it was increasing faster than the general rate of inflation and was being felt across the wider agricultural sector.

“The current economic climate is unique and reflects a combination of forces that seldom come together,” DairyNZ chief executive Tim Mackle said.

“International demand for food, especially dairy products, remains

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strong, but poor production and high input prices worldwide have limited supply. This means world food prices are currently around a third higher than the same time last year.”

He says strong financial management, grazing management and people management skills will help dairy farmers buffer rising input costs and produce milk more efficiently.

DairyNZ principal economist Dr Graeme Doole says shipping prices are on average around 600% higher than two years ago due to port delays and closures related to covid-19, and the prices of ocean freight out of Asia have grown substantially, increasing

by 15 times between March and August this year.

Urea prices alone have jumped by 67% since August 2020 due to greater global demand for nitrogen. FAO figures suggest nitrogen use has only increased by 1.33% since 2020, but higher seasonal demand, coupled with international supply issues, have pushed up urea prices globally.

“In New Zealand, China is our largest supplier of urea for fertiliser and there is huge competition with other industries for shipping containers. China has also tightened exports of urea to assure supplies in its domestic market, so this is having a real impact on international markets,

and of course our dairy farmers are also grappling with those extra costs,” Doole said.

Domestic PKE prices are currently at their highest since the start of 2020 at $391 per tonne.

NZ is also seeing higher fuel prices due to less crude oil production and exports.

Doole says demand and the high prices for farming inputs were expected to stay for some time.

Farmers will start facing more scrutiny from banks over the next few years as environmental policies start to affect profitability and banks introduce tighter

When life gets busy remember to eat well, get quality sleep and keep active.

Sam Whitelock Farmstrong Ambassador

Continued page 3

NEWS

4 Good milk price and earnings:

Hurrell

Fonterra is demonstrating that it can generate solid earnings alongside a decent milk price, chief executive Miles Hurrell says.

REGULARS Newsmaker ���������������������������������������������������22 New Thinking �����������������������������������������������23 Editorial �������������������������������������������������������24

22 River restoration starting to flow The Manawatū River Leaders’ Forum recently won the supreme award at the 2021 Cawthron New Zealand River Awards for the catchment that has made the most progress towards improved river health.

Pulpit �������������������������������������������������������������25 Opinion ���������������������������������������������������������26 World ��������������������������������������������������������������28 Real Estate ����������������������������������������������29-31 Tech & Toys ����������������������������������������������������32 Employment �������������������������������������������������32 Classifieds �����������������������������������������������������33 Livestock �������������������������������������������������34-35 Weather ���������������������������������������������������������37

7 Nats move ag to front bench New National Party leader Christopher Luxon has made clear his intention to win back disillusioned rural voters by promoting Shadow Agriculture Minister Barbara Kuriger to the party’s front bench.

Markets ����������������������������������������������������36-40

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FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

3

Lambing percentage increases Neal Wallace neal.wallace@globalhq.co.nz A RECORD lambing percentage this spring has provided a small counter for a continued decline in ewe numbers.

This spring 0.6%, or 129,000, more lambs were tailed than the previous year, taking this year’s crop to 22.7 million, well down on the 10-year average of 24.6m lambs born.

Beef +Lamb NZ’s Economic Service survey estimates breeding ewe numbers are back 0.5% on last year.

Meanwhile, unsatisfied global demand for red meat continues to underpin the growth in the value of New Zealand exports, with a Meat Industry Association (MIA) analysis revealing growth of 27% in October compared to a year earlier, reaching $693 million for the month.

The B+LNZ lamb crop report estimates the number available for processing will increase 1% from 18.3m last year to 18.5m, although average carcase weights may be slightly down on 2020-21 due to variable lamb growth rates from cool, wet weather.

The survey has found the higher lamb drop is despite a 0.5% decline in breeding ewe numbers to 16.5m.

The largest decrease in ewes was in Northland, Waikato, and Bay of Plenty, falling 2.5%, while there was also a slight decline

Continued from page 1 lending criteria to meet new legislative requirements.

“While we do have challenges ahead, efficiency is the low hanging fruit, and we know that at least 50% of farmers can produce the same amount of milk with less inputs like feed, nitrogen and fertiliser,” he said.

Waikato Federated Farmers arable chair Keith Holmes says

The number of lambs bred from ewe hoggets rose 3.7% to 957,000, equivalent to 4.2% of total lambs born and was driven to higher mating numbers in the North Island.

The average total lambing percentage was 131.9%, 1.2%

higher than spring 2020 and equivalent to the record achieved in 2018 compared to an 126% average for the previous 10 years.

The number of adult sheep forecast to be processed in 2021-22 is likely to be back 9.5% at 3.5m, due to farmers seeking to maintain or recover breeding flocks.

AgriHQ senior analyst Mel Croad says the data reflects winter scanning rates and generally settled weather for lambing, but it also shows productivity gains from within flocks.

Croad says the growth of forestry, especially on the North Island’s east coast, does not appear to be reflected in these numbers, but could do so next year.

“We have heard that farmers, especially on the east coast, are culling their ewes harder, with a view that a lot of capital ewes will be on the market before next winter from farms that have been sold to forestry,” Croad said.

The MIA says sheepmeat exports were a standout performer in October, with the value increasing 25% to $309m, driven

by China, up 25% to $131m; the US up 54% to $46m; and the Netherlands, up 94% to $29m.

The average Free on Board (FOB) value for sheepmeat exports for the quarter was a record $12.52/kg, the first time the average monthly value has been above $12/kg.

farmers needed to do their feed budgets now and forward order or destock to match feed on hand as they head into summer.

In Waikato, maize silage was selling for $300-$340 tonnes of dry matter, while prices for palm kernel varied from $340$390/t, excluding freight. Dry stock farmers tended to purchase round bale grass silage, which was selling for $450-$600/t DM,

depending on the quality and protein or carbohydrate ratio and time of the year.

“Fertiliser costs have gone up astronomically. But so too have feed costs. There is no cheap feeding option out there other than grass in the paddock. Even that is not cheap because of increases across the board on all farmer inputs, including harvesting,” Holmes said.

in the South Island, apart from Southland where there was an increase of 2.6% or 65,000.

The number of lambs tailed in the North Island increased 1.4%, 146,000, to 10.6m head, due to mostly favourable conditions, apart from the East Coast.

The South Island lamb crop is effectively unchanged, just down 17,000, or 0.1%, at an estimated 12.1m.

We have heard that farmers, especially on the east coast, are culling their ewes harder, with a view that a lot of capital ewes will be on the market before next winter from farms that have been sold to forestry.

Mel Croad AgriHQ

Our obsession is your vantage point

DATA: AgriHQ senior analyst Mel Croad says the data reflects winter scanning rates and generally settled weather for lambing, but it also shows productivity gains from within flocks.

MIA chief executive Sirma Karapeeva says prices were driven by a mixture of supply constraints, as Australia rebuilt its flock, and strong demand.

She says UK sheepmeat exports to the EU have been affected by Brexit.

“Most of the United Kingdom’s sheepmeat exports - around 90% - normally go to the 27 European

“Any increase in product prices [meat, dairy], is already eroded by massive input cost increases, including interest on money and working capital.”

Despite the massive lift in price, he says urea was still the cheapest option to bulk up pasture feed.

However, that was dependent on timing with the window rapidly closing in Waikato unless there was rain.

Union countries, but its exports to that market are down 24% so far this year,” Karapeeva said.

The value of beef exports for the month was up 28% to $231m and co-products 30% high at $153m.

China’s total imports of NZ red meat was up 34% to $262m; the US by 47% to $138m; Japan by 29% to $31m; and the Netherlands by 76% to $30m.

At least 50% of farmers can produce the same amount of milk with less inputs like feed, nitrogen and fertiliser.

Graeme Doole DairyNZ

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News

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Farmers back Fonterra restructure Hugh Stringleman & Gerald Piddock FONTERRA’S new flexible shareholding proposal has received 85% approval from farmers who voted before and at the special general meeting.

The board received a strong mandate for change when 85.16% of votes were in favour and 82.65% of eligible votes were cast.

With that clear mandate, Fonterra would work with the Government on how to give effect to the changes through the Dairy Industry Restructuring Act. Chair Peter McBride believed that the co-operative and the Government were philosophically aligned and that a regulatory framework would be found.

During the short special meeting no farmers spoke for or against the proposal after the motion was put, except one in the room in Invercargill who congratulated the company on its widespread consultation.

In essence, Fonterra’s farmers had to decide whether they are a co-operative or corporate and the current model, with a foot in

NEXT STEP: With a clear mandate, Fonterra will now consult the Government on how to give effect to the changes through the Dairy Industry Restructuring Act and chair Peter McBride is confident that common ground will be found.

both camps, was not sustainable, McBride said.

“If we are only interested in the value of our shares, then we should fully corporatise right now,” he said before the special vote was finalised.

“But if we want to be a strong

and enduring co-operative, we believe the capital structure changes we are recommending are the best course of action available.”

Fonterra has not always lived up to its promise, but the capital structure discussion was not

about the past mistakes.

It was about enabling the future and taking a long-term view.

Where farmers decide to commit their capital, buy and sell shares between them, set benchmarks for milk quality, ethical and environmental practices and attract the smartest minds to work on farmers’ behalf.

Agriculture Minister Damien O’Connor said it was a great result for Fonterra and the high percentage who voted yes was an endorsement of the board’s effort to regain the confidence of farmers after a period where it was a “muddled co-operative”.

O’Connor said he had been in discussions with McBride prior to the vote and said they were aligned in wanting the best for Fonterra over the long-term.

“There are obviously issues around competition law, the rights of minority shareholders and obligations that government has when overseeing legislation,” O’Connor said.

“The proposal they put to farmers and then adjusted that has been brought to us – for the most part we support what they

That’s really important and that the changes support not just Fonterra and its shareholders, but also the opportunities for future generations of the dairy industry.

Damien O’Connor Agriculture Minister have put down – but there may be some minor amendments to some of the issues that colleagues have raised.”

Those issues include competition within the industry and that the rights of minority shareholders are maintained, he said.

“That’s really important and that the changes support not just Fonterra and its shareholders, but also the opportunities for future generations of the dairy industry,” he said.

Good milk price and earnings: Hurrell Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA is demonstrating that it can generate solid earnings alongside a decent milk price, chief executive Miles Hurrell told the 2021 annual meeting in Invercargill and online.

But because of the recent downward revision of the FY22 earning guidance, Hurrell added a qualifier phrase “to a point”.

The recent increase in the farm gate milk price forecast to $8.40 to $9/kg milksolids was accompanied by a revised guidance of 25c to 35c, down 5c, as trading margins come under pressure.

High milk prices, paid to farmers via the milk price model, make it harder for Fonterra to make value-add profits and pay

higher dividends on the share capital.

Hurrell repeated the value targets for 2030, first published in mid-November, which include a steady increase in annual dividends to 40-45c a share by 2030.

He also foreshadowed a potential return of capital to shareholders and unitholders of 60c by FY24, being a total payment of $1 billion.

“We are also intending to make available around $2b for a mix of investment in further growth and potential returns to shareholders,” Hurrell said.

Fonterra expects to deliver these improved results by emphasising the nutritional components of milk, especially grass-fed New Zealand milk, which has a carbon

footprint around 70% lower than the global average.

Co-operative Council chair James Barron said that Fonterra had more work to do to meet the return on capital target of 9-10%, compared with the FY21 result of 6.6%.

Hurrell says that his FY22 priorities included shifting from reset to growth, divesting in Chile and capital restructuring in Australia, and to narrow down and prioritise the nutrition science solutions.

Board chair Peter McBride made reference to the environmental and carbon policies of the cooperative in response to changing consumer requirements.

“Coordinated change at a national level is necessary if we want to keep the commercial

competitive advantage that comes with being the world’s most carbon efficient dairy farmers,” McBride said.

With a science-backed approach and nationally coordinated investment, industry and government can solve the significant challenges of methane and water quality.

McBride says the dairy industry can continue to export earnings at a sustainable pace.

Nine procedural resolutions at the annual meeting were passed by votes in the 80 and 90 percentages.

They included 86% approval for increases in remuneration for directors, the first since 2017, and 96% for the appointment of another member to the Milk Price Panel.

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GROWTH: Fonterra chief executive Miles Hurrell says his FY22 priorities included shifting from reset to growth, divesting in Chile and capital restructuring in Australia.

News

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

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Farmers split on sector’s future Staff reporter FARMERS are divided almost down the middle when it comes to their optimism about the future.

Bank of New Zealand’s (BNZ) Shift Happens – Future of Agribusiness report reveals 53% expressed optimism for the future (down from 58% in 2020), while an increasing number of farmers were feeling threatened by change and its impact on the long-term success of their agribusiness (42% to 47%).

Those who were more optimistic about the future were also more likely to embrace the myriad solutions available to overcome current challenges impacting the sector.

The survey also found connectivity was the most influential megaforce on the future of agribusinesses (54%), with 70% of farmers seeing it as essential to the increasing use of technology and data collection.

BNZ head of natural capital Dana Muir says “farmers and growers are investing in their

operations and reducing impacts, but it’s clear the pace and scale of change is daunting”.

“Increasing environmental regulation, the rise of the conscious consumer and covid disruptions are hitting all at once.

But with strong commodity prices and strong demand for New Zealand food and fibre, many farmers now have the flexibility to invest in meeting the challenges head on,” Muir said.

“New Zealand’s agribusinesses understand the importance of the health of climate, land, and water to the future performance of their businesses and products. But it’s the ability and support to adopt solutions which needs to be the focus,” she said.

BNZ chief economist Paul Conway says rural connectivity is critical, with 70% of farmers and growers saying it is a key influence within their agribusiness.

“Digital tools and data collection is increasingly at the heart of sustainable agriculture,” Conway said.

“It is driving the ability for

farmers to make accurate decisions on how to measure and manage critical future considerations like on-farm emissions. But without strong rural connectivity, farmers are effectively shut out of being able to take advantage of new technologies.”

Muir says farmers and growers are increasingly attuned to what the market wants and are answering the questions posed by conscious consumers about where products are made, how they are grown and their carbon footprint.

“It’s great to see work to increase sustainability and efficiency already under way across most New Zealand farms because consumers, the market and governments have spoken and there is no going back,” Muir said.

“The half of the sector that see threats from the level of change in their agribusiness need to be supported to embrace solutions and systems which will position them to be the farms of the future.”

Other findings include:

DISADVANTAGED: BNZ chief economist Paul Conway says without strong rural connectivity, farmers are effectively shut out of being able to take advantage of new technologies.

• Supply chain risks and labour shortages are weighing heavily on farmers and growers, with 45% saying the closed border was presenting immediate risks to production.

• Nearly three-quarters of respondents (73%) said the pace and scale of regulatory change was too much and too fast, with 56% suggesting the pace and scale of change driven by the market was “about right”.

• 42% will consider adjusting their land use in response to consumer demand.

• 96% of farmers have noticed an increase in the costs of managing environmental

impacts over the past five years.

• 44% had already or were planning to reduce farm inputs such as chemicals and fertilisers, especially dairy farmers.

• More than 50% use sustainability strategies that incorporate compliance obligations, while 59% are already using some form of farm environment plan.

MORE:

Read the full report here: https:// www.bnz.co.nz/assets/bnz/businessbanking/Agribusiness/pdfs/BNZ-ShiftHappens-Agri-Report-2021.pdf

A quarter century of evolution

WRITING DUO: Ali Spencer and Mick Calder, co-authors of forthcoming book Meeting Change: The NZ Red Meat Sector Story 1997-2022 due out next year.

A NEW book, to be published next year, will mark the past 25 years for the New Zealand red meat sector and to celebrate the NZ Meat Board’s Centenary.

Meeting Change: The New Zealand Red Meat Sector Story 1997-2022, written by Ali Spencer and Mick Calder and edited by Janet Tyson, covers the quarter century of evolution for the organisation and its place in NZ’s wider red meat sector.

The book finds the sector used a mix of collaboration, ingenuity, innovation and sometimes number eight wire to survive and thrive through a period of volatile political, cultural and economic uncertainty.

The authors’ research included interviews with key people, including Sir Graeme Harrison, Jeff Grant, Mike Petersen, Tim Ritchie and Craig Hickson.

The book is the third in a series of histories about the sector: the first being Golden Jubilee, edited by Dai Hayward (1972); and the second Meat Acts, written by Janet Tyson and Mick Calder (1999).

“We found a fascinating story, about one of New Zealand’s most significant export-earning and employment sectors and its complex, myriad changes over the past 25 years,” Spencer said.

“The challenges required

great innovation and collaboration in an exciting era for the sector, which should be proud of what it has achieved.

“The sector has proven it is capable of handling any change that might be thrown at it in the future and that there are many reasons to celebrate during the New Zealand Meat Board’s 100th year.”

Meeting Change will be published by Mary Egan Publishing in mid-2022.

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News

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

7

‘More from less’ in record year Gerald Piddock gerald.piddock@globalhq.co.nz NEW Zealand dairy farmers have set a new record for milk production, producing 1.95 billion kilograms of milksolids (MS) for the 2020-21 season.

The 2.7% lift in milksolids from the previous season was achieved from 4.9 million cows, a small 0.36% decrease from the 2019-20 year, according to the annual New Zealand Dairy Statistics report, released by DairyNZ and LIC. DairyNZ chief executive Dr Tim Mackle says it is great to see a continuation of the ‘more milk from fewer cows’ trend because it shows a continuing focus on milking better cows and farming even more sustainably.

“Farmers are focused on developing more productive and efficient cows and farming systems, with a lighter environmental footprint. They want to retain our unique pasture-based farming system and remain world leading,” Mackle said.

Increasing milksolids with a reduced cow population is an achievement the whole sector should be proud of.

Favourable weather conditions also contributed to good grass growth, while higher milk prices meant many farmers extended their milking season in 2020-21.

Per cow production also lifted from 385 to 397kg MS.

Herd numbers fell for the sixth year in a row, with 145 fewer than the previous season, totalling 11,034. The average herd size was 444, which was four cows higher than the previous season.

The percentage of cows mated

to artificial breeding rose to 71.3% (up from 70.8% in 2019-20), and the number of cows herd tested is the highest on record (3.735 million cows, or 76.2%, of the national herd).

LIC acting chief executive David Hazlehurst says the greater uptake of herd improvement services demonstrates farmers’ intent and focus on producing the most sustainable and efficient animals.

“Mating season has always been an important time to get cows in-calf but now with a focus on cow quality over quantity, more farmers are investing in premium genetics to help ensure their next generation of replacements are more efficient than the last,” Hazlehurst said.

He says young, genomicallyselected bulls and sexed semen, which generates female replacements from top cows, are examples of the high-impact tools farmers are adopting to increase the rate of genetic gain in their herds.

“It’s really pleasing to see these stats provide farmers with

Increasing milksolids with a reduced cow population is an achievement the whole sector should be proud of.

David Hazlehurst LIC reassurance that the tools they’re investing in to increase their herd’s production efficiency and reduce their farm’s environmental footprint are working. Increasing milksolids with a reduced cow population is an achievement the whole sector should be proud of,” he said.

Mackle says the report showed that despite a range of challenges such as the covid-19 pandemic and staff shortages, farmers are working hard to keep milk production flowing, benefitting the whole country.

Nats move ag to front bench Neal Wallace neal.wallace@globalhq.co.nz NEW National Party leader Christopher Luxon has made clear his intention to win back disillusioned rural voters by promoting Shadow Agriculture Minister Barbara Kuriger to the party’s front bench.

Luxon has in media interviews since taking over leadership of the party last week, spoken of the economic importance of the primary sector and his intention to rewin the support of rural voters who deserted the party at the last election.

He appears to have put that into action this week by announcing

that Kuriger will retain the portfolio she was given by previous leader Judith Collins and promoted from number 14 in the shadow cabinet to number 10.

She is also responsible for biosecurity and food safety.

Agriculture Minister Damien O’Connor is ranked number 14 in Labour’s cabinet and has the heavyweight portfolios of trade and export growth and biosecurity.

National’s David Bennett has progressively slipped down the National Party’s hierarchy since appointed shadow agriculture spokesperson in 2020, with a ranking of 11.

He lost agriculture to Kuriger

in February, but kept horticulture and biosecurity and in Luxon’s reshuffle has slipped to number 20 with oversight of economic and regional development.

Scott Simpson is ranked 11 by Luxon and picks up the shadow climate change portfolio from Stuart Smith, while retaining environment.

Smith, ranked 17, retains viticulture, and Judith Collins (19) gets research, science, innovation and technology.

Of those unranked, Ian McKelvie keeps forestry, Jacqui Dean conservation and Todd McLay trade and export growth.

Luxon has appointed three associate agriculture

RANKING RISING: Shadow Agriculture Minister Barbara Kuriger is now 10th in National’s shadow cabinet, having moved up from 14.

spokespeople, Tim van der Molen, Nicola Grigg and Joseph Mooney.

In addition to those roles, Van der Molen is also responsible

for horticulture, Grigg for rural communities, land information and animal welfare and Mooney water.

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News

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Methane inhibitors not in rulebook Richard Rennie richard.rennie@globalhq.co.nz NEW Zealand farmers’ adoption of methane inhibitors risks having the brakes go on as regulations fail to keep up with emerging inhibitor technology.

Several major interests are trialling methane inhibitors in on-farm trials through NZ. This includes Dutch company DSM, with its patented Bovaer formulation that has achieved methane emission reductions of 30% in feed rationed dairy cows, and even greater in beef cattle.

Trials are under way in grassbased NZ systems, while approval to use the product has already been granted to farmers in Chile and Brazil.

Fonterra is also working on its in-house developed inhibitor Kowbucha, derived from milk cultures, and achieving 50% methane reduction in lab modelled rumen systems.

But Dr Julia McNab, director of regulatory consultancy group Intuit Regulatory, says the current Agricultural Compounds and Veterinary Medicines (ACVM) regulations need to be changed before farmers will have approval from the likes of dairy and meat processors to use them.

“At present, methane inhibitors are not considered an agricultural compound, nor are they a veterinary medicine,” McNab said.

“The ACVM Act is based on four key risk areas: animal welfare, public health, agricultural security

UNRESTRAINED: Regulatory consultant Julia McNab says there is nothing to legally stop a company launching a methane inhibitor now, given its absence from the ACVM regulations.

and trade requirements. There is nothing there for ‘environmental protection’”.

McNab said she had been seeking changes to the regulations for over a year in light of the surge in inhibitor products likely to come as NZ pushes for a 10% methane reduction by 2030, and 24-47% by 2050.

“There has been a lack of any sense of urgency around it, although I understand they (MPI) are due to have a workshop in the new year,” she said.

Initial plans to change the regulations to cover any product that inhibits greenhouse gases has been advised as not being specific enough and requires products to be listed by active ingredient.

“There are companies doing trial work now on a number of compounds and we need to know what type of trial work needs to be done in order to meet regulatory requirements, which at this point do not exist,” she said.

Technically it would be possible for a company to launch an inhibitor now and be free of regulations that make no allowance for it.

“But processors may have something to say about how they would view the use of it by farmers,” she said.

Back in 2013 export markets were spooked by residues of DCD, a nitrate leaching inhibitor, detected in samples of Sri Lankan milk powders exports. This scare came on the back of the Chinese melamine scandal in 2008 and promoted the banning of further DCD use.

In light of those high-profile residue issues, industry sources are adamant Fonterra in particular will not give the green light to farmers to use any methane inhibitor unless it is validated by ACVM regulations.

McNab fears timelines may stretch out to over two years before regulations and efficacy requirements are finalised.

That risks the first target of 10% reduction in methane by 2030

becoming harder for farmers to achieve without one of the tools to do so.

“And we also need a method to include these inhibitors into our greenhouse gas inventory.

Farmers want to be able to look at all these products and know they are comparing apples with apples,” she said.

Her concerns are shared by Mark Aspin, manager for the Pastoral Greenhouse Gas Research Consortium.

In a webinar on inhibitor development this week, he said a clear regulatory pathway for the emerging technology was critical.

“For us it is important for animal welfare and food safety,” Aspin said.

Fonterra chief science and technology officer Dr Jeremy Hill confirmed the company is also wanting MPI to clearly define “methane inhibitors” under ACVM and that both scientific evidence and efficacy data would be needed to support each inhibitor.

Hill also confirmed Fonterra would be seeking validation for its own Kowbucha inhibitor, should it move to commercial production.

He said having a framework in place within the ACVM regulations as soon as possible was the ideal, but noted each product would need to undergo appropriate assessment.

McNab says she knows of at least five other inhibitor product projects under way in addition to Bovaer. This includes a red seaweed project with Australian

MPI is working through the best legislative approach to regulate inhibitors effectively, including what changes may be needed to the ACVM Act and regulations.

Karen Booth NZ Food Safety researchers.

Karen Booth, ACVM manager at NZ Food Safety, said last year MPI consulted on increasing regulatory oversight of inhibitors, with strong support to do so.

In March this year, Cabinet agreed there needed to be strengthening of regulation of inhibitors under the ACVM Act, including a two-year transition period.

“MPI is working through the best legislative approach to regulate inhibitors effectively, including what changes may be needed to the ACVM Act and regulations,” Booth said.

“The timeframe has not been finalised, but this is a high priority for MPI.” Once regulated, inhibitors will require registration for the product formulation and most of the existing guidelines for registration would be applicable for inhibitors.

PGG Wrightson ups guidance to $58m FIVE months into its current financial year, rural services group PGG Wrightson has beefed up its full-year operating earnings guidance by $5 million to $58m, on the strength of buoyant spring trading.

Chair Rodger Finlay says the retail part of the business had a strong first quarter, prompting the board to upgrade its projections for

earnings before interest, tax, depreciation and amortisation (Ebitda).

In October, Finlay had forecast Ebitda at a more conservative $53m, but the board upgraded that after taking a look at “record” November numbers.

He says while the livestock business has been hit by covid restrictions, confidence in the meat sector remains high and

beef and sheep schedule pricing is expected to remain positive.

While external influences such as supply chain disruptions and ongoing covid uncertainty continue to temper expectations, the “fantastic” November and market share gains made a better prognosis highly likely.

Going forward, Finlay expected results to be

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driven by the livestock division, which has its peak trading period over the second half of the year.

The company reported operating Ebitda of $56m for the year to June 2021, up one-third or $13.8m on the prior year from operating revenue of $847.8m.

It reported a fully imputed dividend of 28 cents a share.

– BusinessDesk

EARNINGS: PGG Wrightson chair Rodger Finlay says the retail part of the business had a strong first quarter, prompting the board to upgrade its projections.

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FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

9

NZ meat eaters losing appetite Richard Rennie richard.rennie@globalhq.co.nz DESPITE continuing to uphold the perennial claim of having more cows and sheep than people, New Zealand appears to be well past “peak meat” and is now one of only six countries globally to be eating less meat now than it was 20 years ago.

An academic paper published in zoology and veterinary sciences peer-reviewed magazine Animals has highlighted the world’s continuing hunger for meat.

The researchers from Curtin University in Perth, Western Australia identified a co-relation between GDP growth and meat consumption in 26 countries. With every US$9795 increase in GDP per capita, an additional 1kg of meat was consumed per capita a year.

Overall, they estimated that once a country hits average GDP per capita of US$40,000, GDP growth is no longer as much of a determinant for increased meat consumption.

They suspected dietary changes and greater environmental awareness were prompting lowered consumption in NZ, Switzerland and Canada.

The drop of 11% in per capita consumption over the 20 years meant NZ has experienced by far the greatest decline in meat consumption of the six countries.

In 2019 NZ’s GDP per capita was US$42,084, Canada’s US$46,195 and Switzerland’s US$81,994.

Only three other countries globally had experienced a decline, namely Paraguay, Nigeria and Ethiopia. The decline in consumption of meat in those countries was linked to economic unaffordability.

With its US$54,907 per capita income, Australia is the world’s top meat-eating nation, averaging 89kg per capita, an increase from the 88kg eaten per capita back in 2000.

It is a claim shared by Israel, closely followed by Argentina.

Between 2000 and 2019 total meat consumed in NZ dropped from 86kg to 75kg per capita.

Red meat took the biggest hit, with sheepmeat down from 25kg a head to 3.6kg and beef from 23kg to 11kg.

Poultry had filled a lot of the gap, surging from 24kg per head to 41kg in 2019, while pork came up from 13kg to 19kg a head.

We are seeing some shifts in the type of meat consumed, driven in part by costs. Twenty-five years ago chicken was expensive and its cost has dropped. But internationally NZ’s sheepmeat is now a premium, special occasion meat, making it more expensive here too.

Dr Ben Hancock B+LNZ Beef + Lamb NZ (B+LNZ) data lead Dr Ben Hancock says while obtaining exact per capita domestic consumption data was difficult, the trend identified by the academics was accurate.

“We are seeing some shifts in the type of meat consumed, driven in part by costs. Twenty-five years ago, chicken was expensive and its cost has dropped. But internationally NZ’s sheepmeat is now a premium, special occasion meat, making it more expensive here too,” Hancock said.

He says B+LNZ was working on

getting more specific domestic data on red meat consumption, a difficult task when carcases were portioned across multiple markets globally.

Long-time food author and critic Lauraine Jacobs says she was not surprised to see the slide in red meat consumption here. But she noted that overall, New Zealanders’ total meat consumption had not dropped too significantly over the 20-year period.

“Twenty years ago, it was hard to get much pork, chicken or fish or even venison,” Jacobs said.

“So, a lot of that shift from traditional red meat has come down to there simply being other protein choices. No one offering ‘substitute meat’ could claim a win from this. I have seen those products getting only the same space in supermarkets as they were getting when they first came out.”

She also attributed the ubiquitous sushi roll to having an impact upon traditional meat choices, particularly for day-time dining and convenience eating.

“I know that here in NZ farmed salmon sales are through the roof to sushi retailers,” she said.

She also noted that, on average, New Zealanders were simply consuming smaller portions of all food components in their diets in response to health messages.

B+LNZ head of nutrition Fiona Windle says the jump in poultry consumption also reflected that sector’s ability to offer a wide range of convenience-focused products.

“And often when we ask people if they have changed from beef and lamb, they will say it is on grounds of price. Many consumers have a limited food budget and need some form of meat protein and opt for cheaper chicken,” Windle said.

“Many will make health and environmental claims, but price usually comes up as the number one factor.”

FISHY: Food critic and author Lauraine Jacobs attributes part of the decline in traditional red meat consumption to a wider, high-quality availability of alternative protein meats, including fish.

Golden Shears cancelled due to covid restrictions Staff reporter NEXT year’s Golden Shears, which was to be held in March, has been cancelled because of restrictions and the unknown future caused by covid-19.

Event administrator Deb Keats said the difficult decision was made at the event’s recent AGM. “One of our many reasons was that we could not possibly present our prestigious event in the manner we aspire to with the current restrictions and the many checks that

would have to be put in place,” Keats said.

“Our major consideration is the welfare of all our volunteers, competitors, spectators, sponsors and service providers.

“As this event is staged indoors, this increases the demands we need to follow in order to keep everyone safe from the pandemic.

“We consider our decision as being responsible to all people involved with Golden Shears.”

Keats said organisers are now preparing for the 2023 event.

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Beer demand a growing opportunity GROWING export demand for New Zealand craft beer is creating a new opportunity for local cropping farmers.

One of the country’s largest craft breweries, Deep Creek Brewing, is set to increase annual production by more than five million litres to meet surging export and local demand.

This is up 150% from just two million litres at the start of this year.

The move is also set to be a boost for NZ cropping farmers, with significantly more barley and hops needed for the new production volume.

With the right market signals, we are definitely up for it.

Colin Hurst Feds arable Deep Creek Brewing co-founder Paul Brown says the company has more than doubled in size over the past year and increased the number of export markets to past 10, with international sales now accounting for 55% of the company’s multimillion-dollar revenue.

The growth in craft beer exports is also a boost for growers, requiring 1120 tonnes of locally sourced barley and 35t of hops, to produce the increased product volume.

“Kiwi craft beer is growing in popularity on the world stage, particularly in a number of key Asian markets,” Brown said.

“This is being driven, in part, by a halo effect from the success of NZ wines.”

Deep Creek Brewing now has a foothold presence in China, Thailand, Taiwan, Singapore and Malaysia, and entered the Japanese market last year. In the coming weeks it will send its first shipment to Hong Kong.

The Asian craft market is

forecast to grow by 22% per annum and reach more than $65 billion in five years as discretionary income in the region increases.

“The feedback we have been getting is that our NZ-made range is well-positioned to take advantage of this surge in growth,” he said.

He says their new locally designed brewery will allow them to produce seven million litres of craft beer each year, an annual manufacturing volume they are forecasting to reach within the next three years.

The million-dollar state-of-theart brewery is completing its final stages of fabrication and is expected to be online ahead of the coming summer, despite significant delays with shipping.

“While we have seen significant revenue growth over the past year, current production constraints have prevented us from meeting global demand for our product,” he said.

“We’re currently scaling up our staff numbers to accommodate the increase in domestic and export order volumes and will also be able to expand our contract manufacturing as a result of the capital investment.”

The logistics delays caused by the pandemic have seen the cost of shipping the brewery to NZ balloon 200% to more than $100,000, however, it’s expected to have it fully operational ahead of the end of the peak Southern Hemisphere season in January.

Brown says the beer industry has changed significantly since they began operating 10 years ago.

“When we first started there were 60 breweries of varying sizes in NZ, now there are in excess of 200,” he said.

“This level of competition and the expectations of consumers is helping us produce better quality beer, which in turn is helping the industry succeed in international markets.”

As well as the increased capacity the new million-dollar brewery investment will offer, Brown says the company is already scouting new locations

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DEMAND: Deep Creek Brewing co-founder Paul Brown says current production constraints have prevented the company from meeting global demand for its Kiwi craft beer.

for a purpose-built facility to accommodate projected growth.

Federated Farmers arable chair Colin Hurst says growers are always open to new crop opportunities.

“With the right market signals, we are definitely up for it,” Hurst said.

But competition for land is currently hot.

“Contracts are coming out earlier and earlier and we are getting some good pricing offers already for next season, with both

rye and turf grasses looking at a 25% increase,” he said.

Hurst says forward pricing on feed wheats are improved, with arable farmers also doing very well with livestock.

“Lamb finishing is another component in the competition mix now, with the good pricing this season looking to hold up for a bit yet,” he said.

Milling wheat is the downside, with its ongoing procurement issues.

“There’s 11,000 tonnes of

milling wheat gone to the feed industry this season – that’s sad, that’s really sad,” he said.

While malting barley is a more complicated crop to grow, he says farmers will be keen to help the demand with more barley for more beer.

“It takes a bit more precision to get the proteins right as they don’t like cloudy beer but we have farmers already growing good malting barley and I expect there will be keen uptake for more,” he said.

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12 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Spotlight put on water storage Annette Scott annette.scott@globalhq.co.nz THE release of the water availability and security (WAS) report is a significant statement of intent for New Zealand to act strategically and act now, an advisor to the report’s authors says.

The report, released by the Ministry for Primary Industries (MPI), calls for urgent action on water storage.

Researchers for the report worked with an external water availability and security advisory group, whose nine members include Canterbury-based Federated Farmers senior policy advisor Lionel Hume.

Hume says better coordination and preparation of an action plan for future steps towards improving water storage are overdue.

“If we’re serious about building resilience to the impacts of climate change, those are the sorts of discussions we need to have,” Hume said.

“We’ve got plenty of water and we’re still going to get plenty of water, we just need to fund some better infrastructure so we can store it and use it.”

The report has indications of more supportive policies acknowledging the strategic importance of water storage and distribution infrastructure.

It says for NZ to transition towards land uses that have a greater economic value and smaller environmental footprint, as well as improved community resilience, “we need to act

PREPARE: Federated Farmers senior policy adviser Lionel Hume says co-ordinated preparation of an action plan to improve water storage is overdue.

strategically and to act now”.

The report has key messages about water use efficiency and demand management, with future strategy showing how government investment may support storage and distribution.

It also recommends future storage must be multifaceted, multi-user and complementary within the community visions.

While NZ is traditionally viewed as a green and water-rich country, climate change trends show a country getting warmer and drier, with some regional variations more prone to climate extremes such as floods and droughts.

As part of both demand and

supply management, there needs to be a better integration of practices and technologies to monitor, measure and manage water to improve efficiency and climate proof water availability and security.

“Where demand responses are not sufficient to ensure water security, there is a need to consider the role of supply solutions such as investment in water storage, groundwater recharge and water distribution to supplement natural sources of freshwater,” he said.

A key recommendation is that MPI establishes a water availability and security

partnership made up of central and local government, iwi/ Māori, food and fibre sector organisations, science providers and community interest groups.

Looking at Canterbury, Hume says climate change scenarios suggest the region is going to get less snow falling in the Southern Alps, less rainfall on the east coast but even greater rainfall on the west coast and Southern Alps.

“There could be more water in the alpine rivers, but if more water in the main divide is falling as rain rather than snow, it’s not necessarily going to turn up on the east coast at the time it’s most needed,” he said.

“Historically, snow melt happens late spring-early summer, exactly when water is needed for irrigation to drive food production.

“It’s probably not going to be that neat and tidy in the future.

“Better storage future-proofs our options.”

And he says it’s not just about agriculture.

“We need water security for towns and cities too,” he said.

“The development of water infrastructure these days tends to be multi-purpose.

“I think that’s going to be increasingly the case with planning and funding needing to be at community scale.”

Based on a national scale assessment, the report identified Canterbury, Hawke’s Bay, Tasman and southern Manawatū as regions that would need medium to large storage infrastructure to enable a water security of 95% or greater.

While previous government and private sector investment models achieved the water infrastructure NZ currently relies on, future models will need to be more innovative to achieve multiple purposes and benefits.

It’s probably not going to be that neat and tidy in the future.

Lionel Hume Federated Farmers “Security of a return on investment and unlocking the potential uptake across the system are key enablers that will drive new funding models,” the report said.

“Financing and procurement of such models will bring in different types of partners and stakeholders for investment at different phases of the scheme.

“Interventions such as government underwrites, or guarantees are still very relevant tools that will be needed at certain stages to incentivise uptake.

“There remains a clear role for central and local government to co-invest where there are both public and private benefits from new infrastructure and regulatory and climate change uncertainty impacting the willingness for the private sector to invest.”

Fieldays generates $675m in sales revenue THIS year’s Fieldays at Mystery Creek in Waikato generated $675 million in sales revenue for New Zealand firms, with $234m going into the Waikato region.

NZ National Fieldays Society’s (NZNFS) Annual Report said the event in June created $330m additional GDP for the NZ economy at Fieldays 2021 and almost 3000 full-year jobs (part-time and full-time) were sustained.

It’s been a pivotal point in the society’s history. We have identified new ways of working and created a more resilient organisation.

James Allen NZNFS Fieldays’ return on investment to the NZ economy created a 496% overall return.

Covid-19-induced travel and border restrictions led to a 49% decrease of international

exhibitors compared to 2019, however, Waikato exhibitors increased by 10.7%.

Despite site allocations being down 2.9% this year, site sales were estimated at just over 52% ahead of 2019 across the four-day average.

The report said the increase in site sales reflected the 2020 Fieldays hiatus and people needing to release pent up spend and investment for those special Fieldays purchases.

It is estimated that had Fieldays had not been held in 2021, $68.46m of sales would not have occurred.

A total of 132,776 people came to the event with the 44,044 people coming on June 18 setting a new record for a single day’s attendance.

Over 33,000 people visited the Fieldays’ Health and Wellbeing Hub over four days. It reported 673 spot checks, which found 54 suspicious lesions, including melanomas, which were referred for further evaluation.

There were also 1200 blood glucose level tests, 334 kidney health checks, with 42 people sent to their GP and 107 had issues requiring monitoring.

The Te Manawa Taki community hepatitis C team reported 364

BOOMING: This year’s Fieldays sustained almost 3000 part- and full-time jobs and generated $675 million in sales revenue.

tests and 617 education sessions at Fieldays.

For the first time, the society revealed the data in a new-look report that combined its internal and external activities for the year to take a more holistic approach.

The new-look report uses a four-point scorecard to generate

a performance score in the areas of sustainability, wellness, the economy and community.

Society president James Allen says the NZNFS had changed in ways that were unimaginable just two years ago.

“In the past year alone, the economic landscape has changed,

as well as the reassessment of what is important in life for so many. We are committed to evolving with this. It’s been a pivotal point in the society’s history. We have identified new ways of working and created a more resilient organisation,” Allen said.

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14 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Partnership to study soil health Gerald Piddock gerald.piddock@globalhq.co.nz A NEW MPI-funded research project has been announced, which will examine the impact that regenerative farming principles have on soil health.

The project will study soil health on 10 farms in Waikato, Canterbury and Otago over five years, to determine the impacts of changes in soil health on production, farm resilience and the environment, including climate change.

The project is being done through a partnership between Synlait, Danone, AgResearch and the Ministry for Primary Industries (MPI).

Two paddocks on each of the 10 farms will be used to compare conventional practices and regenerative practices, focusing on greater pasture diversity and reduced nitrogen fertiliser use.

The farms will also provide a wide range of soil types and farming systems for the project.

The findings will help respond to a need for evidence that regenerative practices can make a positive difference in sustainable food production.

Through the course of the research, the farmers involved – supported by AgResearch scientists – will do sampling, testing and modelling to assess the changes in soil health and its implications.

Research by AgResearch, commissioned by DairyNZ, demonstrated that New Zealand has the lowest carbon footprint for milk production compared to 17 other countries, including major milk suppliers.

However, the dairy industry is still striving to identify areas where it can make further environmental gains.

AgResearch soil scientist Nicole Schon says the research will provide important scientific

PROJECT: Synlait, Danone and AgResearch will undertake a five-year study on 10 farms in New Zealand to examine the effects regenerative farming has on soil health.

These will be measures farmers will all be able to do to assess their soil health across their farm that will better inform their management decisions.

Nicole Schon AgResearch knowledge around soil health in the NZ context.

“This is a five-year study with the aim to provide information for farmers throughout New Zealand

on how to measure soil health and how we can better manage our soils. By optimising the soils’ ability to function, it may help meet increasing constraints faced by the industry,” Schon said.

“There is a lot of anecdotal evidence around the impacts of regenerative practices and there is a lot of discussion on this topic.

Part of the research will look at how regenerative practices impact soil health and I think it will be particularly interesting to understand the impact on the soil biology and its functioning.”

The study will go beyond just looking at soil fertility and will examine the soil’s organic matter and biological activity, as well as trace element levels and carbon.

Schon says assessing all of these

factors in the soil will give them a more complete picture of its health.

“These will be measures farmers will all be able to do to assess their soil health across their farm that will better inform their management decisions,” she said.

The project’s five-year timeframe should give scientists the time required to record any changes in the indicators they are measuring.

Assessment of soil health on farms is not routinely measured in NZ, so practical tools are needed to help farmers understand the detailed state of the soils and how best to manage them.

As well as on-farm production and performance, improved soil health is expected to benefit

the wider environment with improved fresh water and nutrient outcomes, support for biodiversity, enhanced soil carbon storage and reduced greenhouse gas emissions.

The Government has committed $2.8 million to the research through MPI’s Sustainable Food and Fibre Futures fund, with Danone and Synlait contributing a further $1 million.

AgResearch will gather data and report findings of the research.

Some initial assessments of soil health have been conducted and the trials on the 10 dairy farms involved are expected to begin early in 2022.

Results will be made available from the research.

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16 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

How-to guide for the unexpected Cheyenne Nicholson IF SOMETHING went wrong and you could no longer do all the things you normally do, do you have a plan?

Waitaki Valley farmer and mother Paige Wills didn’t and after the birth of her first child, this created a swirl of ‘what if’ questions.

“I felt like I was handed this baby and someone flipped a switch in my brain. All of these what ifs came up. What if my husband got hurt and couldn’t farm? What if I get hurt or die.

It just started spiralling for me,” Wills said.

Wills and husband Richard run a 280ha sheep and deer farm. At the time, they were living off-farm, leaving Richard to commute every day and leaving Wills with a lot of alone time to get lost in her thoughts.

Realising it was becoming unhealthy, she decided to take some action. She sat down one day, wrote out every important piece of information in her life and wrote a letter to her daughter.

“It meant that if something happened to me, everyone had everything they needed to keep things moving along. In that sense, it was a huge relief,” she said.

That was 11 years ago. As the years went by, Wills added to her master document. What started as three pages billowed out to 105 pages and became very comprehensive and settled the what if questions in her head. The master document had everything in it, from where the spare house key was kept to how to access all the bank accounts and everything in-between.

“The more people I talked to, the more I realised how important a document like this is. Every time I told someone about it, they would say they wished they had something similar, where they could just fill in the blanks with their own information.

“It took multiple people telling me this before I realised, ‘why don’t I just do this?’” she said.

“Being from a rural background, I have a strong sense of wanting to help people. I’m also really aware of all the moving parts in a family, farm and business. There’s a lot of vital information that people just keep locked away in their heads.”

Six months ago, Wills officially started Peace of Mind (www.mypeaceofmind.co.nz), a digital fill-in-the-blank document that acts as a ‘how to guide’ for your life. Filled to the brim with all the information your family would need if you were out of action, unable to communicate or passed away.

It meant that if something happened to me, everyone had everything they needed to keep things moving along. In that sense, it was a huge relief.

Paige Wills Farmer “I had a really comprehensive document for myself, but I wanted to create one that would cater for everyone,” she said.

Wills found dozens of people to interview to make the document as detailed as possible to ensure she wasn’t leaving anything out. From medical professionals, funeral directors, to people who had medical issues and people who had a family member pass away, she soon gathered a lot of great information to help her put together her finished product.

“This isn’t a legal document.

You still need a will and power of attorney. But a will only tells you what needs to happen.

This document tells you the practical steps for how to make that happen. Everything from finding essential paperwork to turning off the pump to dealing

with animals or planning a funeral. It has everything someone could need to step in and manage in your absence. Often all of those little questions add a lot of extra stress at an already stressful time. This is designed to take some of that stress and worry away,” she said.

Farmers can be notorious for keeping things in their heads and not talking about them. For Will’s family, Richard does most of the stock work and day to day running of the farm while she sees to the administration work, rearing lambs and some tractor work.

“He doesn’t know what I do, and vice versa. That applies to so many people.

Prior to putting together our own document, if anything happened to either one of us, it was going to be a huge challenge to keep the wheels in motion,” she said.

Peace of Mind launched in September and has gathered a lot of interest, but like with many small businesses, letting people know about the product has been a challenge.

With a background as a florist, this business has been a whole new beast for her to wrap her head around. She’s really embraced it and, with the support of her friends and family, has become passionate about providing a resource like this for people.

“I really want to encourage people to start having those ‘what happens if’ conversations with their loved ones and get that important information out of their heads and onto paper,” she said.

Wills is working hard on spreading the word about Peace of Mind. She has already started creating a physical document people can fill out if the digital version isn’t suitable, but wants to focus on keeping the price point and product accessible to everyone.

“This is my thing that I get to pour my heart into and get that feel-good factor that I’ve created something worthwhile and important that will really help people,” she said.

FOUNDATION: What started out as a personal coping mechanism for Paige Wills has now become an online tool to help others plan for life’s ‘what ifs’.

PROUD TO BE LOCAL. THE FEELING’S MUTUAL.

There are plenty of good reasons for being local right now. As a 100% NZ-owned mutual, we’ve always been proud to be local—and to act local. That’s why you’ll see us at events (when we can) all over the country supporting those who support us. Most of our team live and work in the same region as their clients, which makes it easy to come to the farm and share specialist insurance and risk advice.

When we’re not on farm with you, we’re only a phone call away to chat through things over the phone. If that sounds like the kind of local insurer you’d like to deal with, ask around about us or better still, give us a call on 0800 366 466.

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We’re here for the good of the country.

News

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

17

Rising costs eroding returns Neal Wallace neal.wallace@globalhq.co.nz INFLATED labour and fertiliser costs are eroding historically high primary sector product returns, ANZ says.

While some cost pressure may ease once the impact of the pandemic recedes, the bank’s latest Agri Focus research paper warns other costs will remain.

“Compliance costs are skyrocketing as the complexity of the consent process means professional help is often required to lodge consents,” ANZ said in its report.

Interest rates are also rising on the back of tighter monetary policy and the bank predicts the value of the NZ dollar will rise to US72c then level off.

It predicts the Official Cash Rate (OCR) will reach 2% by next August on the back of tighter monetary policy.

Compared to the 10-year average, the bank says current prices for dairy, sheepmeat and beef are high, while forestry is tending lower.

ANZ predicts a farm gate milk price of $8.80/kg MS this season and $8/kg MS next season, that optimism stemming from tight global supply.

It notes that these milk returns are being eroded by “a massive increase in on-farm costs”.

The dairy industry is consolidating, with fewer farms and less intensive management, and it noted peak milk this year was 3.1% less than last year and 4.2% below 2018.

Meat prices are benefiting from strong global demand and, in the case of beef, tight supply, while forestry is being hit by lower prices in China and high shipping costs.

Lamb prices are currently about $2/kg higher than at the same time last year and, while prices will ease, the report says overseas prices are at record levels due

BAD FOR BUSINESS: The cost of shipping logs to China has increased more than fourfold since the pandemic and now accounts for half the value of a log, which is dampening prospects for the sector.

What is less clear is the impact that the higher shipping costs and freight disruptions will potentially have on farm gate returns.

ANZ in part to improving restaurant demand.

For example, the price of French racks is close to pre-pandemic levels.

“It also shows that the current farm gate prices are

supported by international returns, although it is clear there is a little procurement pressure at work at present too,” it said.

“What is less clear is the impact that the higher shipping costs and freight disruptions will potentially have on farm gate returns.”

International prices for beef remain strong, driven by limited supply from South America and Australia.

US consumers are paying 20% more for beef than they were a year ago.

The bank predicts farm gate returns for bull beef in the year to September 30 to be a record $6/ kg.

Venison prices have been lower than in recent years, but the

report says prices have stabilised at around $7 since the end of the chilled season.

This fall is not as marked as usual, giving some confidence prices may settle at close to current levels.

Velvet prices have lifted 10-15% since the end of last season as consumers seek natural products with perceived health benefits.

There are reports that local supplies of cereal grains are half what is normally available at this time of the year, indicating that prices could lift further.

“Stocks have been quickly run down since winter and now there is very little grain on-farm that is not already accounted for,” it said.

“Last season there was about

7% less grain harvested than the previous season.”

The cost of shipping logs to China has increased more than fourfold since the pandemic and now accounts for half the value of a log, which is dampening prospects for the sector.

The availability of labour for the horticulture sector is expected to be worse than last year and looms as its biggest threat.

Shipping costs in general are three to four times greater than they were at the start of the pandemic and while there are signs they have peaked, the bank warns it could take 18 months to stabilise and are likely to settle at rates higher than before the pandemic.

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News

18 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Sector index struggling to deliver on potential Hugh Stringleman hugh.stringleman@globalhq.co.nz AGAINST the trend of record commodity prices, some of New Zealand’s listed agribusiness companies are not feeling the excitement, judging by their index of collective share prices.

The primary sector index of 16 listed companies in agriculture, horticulture, viticulture, aquaculture and forestry has fallen 13.7% in the past 12 months.

For comparison, the NZX index for all equities on the sharemarket has fallen 1.66% over the past turbulent year.

The S&P/NZX Primary Sector Equity Index was launched in April 2018, taking over from the NZX Farmers Weekly index, which contained similar stocks.

From 2011 to 2018 the previous index grew by 327%, almost twice the growth of the NZX 50 index over the same period.

The renamed primary sector index continued to sprint ahead of the NZX 50 during four years from 2017 to early 2021.

But since a peak on April 24, 2019, the index track has declined 25%.

Market analysts say both the prolonged rise and the swift fall were caused primarily by a2 Milk Company (ATM), which rose in price to $21 a share (July 2020) and has since fallen to $6.

With its huge number of 743

million shares, ATM dominates the index by market capitalisation even at today’s $6 share price.

Currently $4.4 billion, ATM remains 40% of the primary sector index $10b capitalisation total.

A case of a dog wagging its tail.

Craigs Investment Partners research head Mark Lister says since the end of 2019, ATM has fallen 60% and so has Synlait (SML), while Fonterra Shareholders’ Fund (FSF) and Sanford (SAN) are down 30% and 40% respectively from their recent peaks.

“After a mixed history, PGG Wrightson (PGW) has risen 100% and Delegat Group (DGL) has been a standout performer since its listing,” Lister said.

“Scales (SCL) has also been a very good operator.”

Lister says the big index component companies had issues specific to them and belied the very good performance of the primary sector as a whole.

He says as the ATM example shows, the S&P/NZX primary sector index is by no means representative of the primary sector in its scope and parts, which has been a failing for the NZ sharemarket historically.

“All the time I have been in the finance industry, 20 years, it has been quite difficult to get exposure to our biggest sector that produces our export earnings,” he said.

WEIGHTED: Market analysts say the prolonged rise and swift fall of the primary sector index were caused primarily by a2 Milk Company (ATM), which rose in price to $21 a share (July 2020) and has since fallen to $6.

The biggest stocks in the index have issues specific to them, not reflecting the very good performance of the sector.

Mark Lister Craigs Investment Partners Since Sir Selwyn Cushing’s privatisation of Rural Equities there hasn’t been a direct farm or orchard ownership investment option.

A year ago NZ Rural Land Company listed, which hasn’t yet made it into the S&P index.

While the index contains three dairy companies, all three are conflicted.

Fonterra is represented by its increasingly irrelevant unit fund, not the 13 times larger amount of its supply shares.

Mataura Valley is a2 Milk’s very small and recently acquired

NZ milk supply and processing presence.

Synlait is majority owned by China’s Bright Dairy (39%) and biggest customer a2 Milk (19.8%).

The meat industry is not found in the listed stocks on the NZX, its biggest players being a mix of farmer co-operative ownership (Alliance, Silver Fern), overseas investment (Anzco, Silver Fern) and family ownership (Affco, Progressive, Greenlea, Taylor Preston, AMP).

Producer co-operative ownership is antithetical to company listing for institutional and private share ownership.

Horticulture fares much better on the sharemarket and in the index, with the notable exception of its biggest player, the cooperatively owned Zespri.

Horticultural companies are Comvita, Delegat, Foley Wines, Marlborough Wine Estates, Scales, Seeka and T&G Global (94% overseas owned).

Collectively they have market capitalisations of $3.15 billion, 30% of the total index.

The rest of the index is made up of rural servicing company PGW (market cap $329m), forest

nurseries ArborGen ($125m), fishing company Sanford ($464m) and medical cannabis start-up Rua Bioscience ($56m).

The index does not contain any sizable forest companies, nothing in the deer or grain industries, no fertiliser importers (both are co-ops) and no rural servicing representation beyond PGW. Apart from intertwined a2 Milk and Synlait, primary sector index companies have traded profitably during the past 12 months and have paid dividends that should be reflected in the index.

NZ is a world leader in producing and processing food and fibre (wool and wood) and its primary commodity exports are the foundation of its economy.

Farmers, orchardists and their processors and packers spend more than half of their $60b export revenue on inputs like consumables, labour, machinery, fuel, fertiliser and debt servicing.

For the truly long-term investor, the primary index has risen by 11% over the past 10 years, showing that investing in NZ agriculture is not a get-rich-quick avenue.

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SCH creates investor opportunities

T

The Hereford Park orchard is located about 15 minutes from Te Puke in the Bay of Plenty.

With 26 active sites, and over 100 team members and 200 seasonal workers, SCH live and breathe this industry. But while these numbers are impressive, they’re not what drives the company. SCH develops 80-100 hectares of new orchards every year, and “we’d rather do that to a world-class standard than do 150 hectares poorly”, Dunstan says.

Innovation helps SCH achieve that worldclass standard, and they were one of the first to adopt the Gold and SunGold varieties when they became available. That proved to be a savvy move, with SunGold powering the industry’s success in the last year and the signs look good for the future. Zespri’s FiveYear Outlook predicts: “New Zealand supply of Class 1 conventional SunGold Kiwifruit increases from 84 million trays in 2020/21 to 128 million trays in 2025/26.”

Now, SCH are on the forefront of Zespri’s latest innovation, the RubyRed variety that Zespri research says will appeal to premium markets. SCH were part of the extensive commercial trials of this new variety and it will make up around a quarter of Hereford Park plantings, adding diversity and creating the opportunity to reach new consumers.

With three-quarters of the orchard planted

SCH will be growing the proven SunGold variety as well as the premium RubyRed variety at Hereford Park.

with SunGold, it’s a carefully weighted blend of proven performance and new potential.

SCH’s values also support the company’s innovation and its strong track record.

“We value excellence,” he explains, “which means we constantly challenge ourselves to be better today than we were yesterday.”

Teamwork is another core value and SCH is organised into specialist units with industry-leading expertise, like investment or orchard construction, so that together the business achieves more than if they were simply a collection of generalists.

Dunstan believes there are a number of trends that support kiwifruit’s prospects. It’s not just the strong underlying growth trends.

He says “Covid’s been challenging for everyone”, but the silver lining for the kiwifruit sector is a resulting increase in consumer demand for healthy, nutritious food. Zespri’s Annual Report notes that “one of the most popular searches on Google in 2020 was for foods high in Vitamin C”.

Kiwifruit is the star performer in the horticulture sector, with Zespri reporting that last year’s total sales of 180 million trays of all varieties was “a 10% increase on the previous financial year”, and “global revenue generated by fruit sales increased by 14% to $3.58 billion”.

As the single-desk exporter for the industry, Dunstan says Zespri really enables growers’ success. For example, their strong and flexible supply chains helped the industry navigate last year’s Suez Canal blockage, as well as the disruption caused by the pandemic. Zespri also invests heavily

in innovation, like the brand-new Kiwifruit Breeding Centre they’ve just opened in conjunction with Plant & Food Research and they maintain the international plant variety rights to high-value varieties like SunGold and RubyRed.

“Over the years SCH has developed a string of successful orchards backed by a specialised ‘end-to-end’ business model that allows them to control every aspect of the development, from selecting the right site, to building the orchard and managing the harvests.“ SCH has been through hard times, like the Psa crisis, and come out the other side stronger. When you ask Dunstan what got them through that challenge, he simply says, “It’s all about grit. People who are successful over the long-run are more like a diesel than a two-stroke.”

That mindset also shapes SCH’s commitment to quality and long-term approach to investing. SCH has created a website to help potential wholesale investors understand this opportunity, their family business and the kiwifruit industry at schort.co.nz/invest-in-kiwifruit/overview “We’d welcome wholesale co-investors who share our values and our long-term view,” he says.

“It’s an opportunity to diversify where we specialise.”

Disclaimer: This is not a regulated offer for the purposes of the Financial Markets Conduct Act 2013 (FMCA) and is not an offer of financial products to the public. Any offer will be specified in a separate information memorandum. SCH offers are only open to investors who fall within the exclusions applicable to offers made to “wholesale investors” as set out in Schedule 1, clauses 3(2)(a) to (c) and 3(3)(a) to (b) of the FMCA. SCH requires investors to certify that they fit within one of the above categories of wholesale investors in order to be eligible for consideration to participate in an investment. All prospective investors are recommended to obtain independent professional advice.

LK0109893©

he kiwifruit industry is a New Zealand success story, but until now it hasn’t been easy for most investors to share in this success. Southern Cross Horticulture (SCH) is helping to change that with its latest development, Hereford Park.

This opportunity has just been opened to wholesale investors.

“It’s a great chance for them to diversify their portfolio,” SCH chief executive Andrew Dunstan says.

The Hereford Park orchard is located about 15 minutes from Te Puke in the fertile Bay of Plenty.

“It’s in a prime growing region, with favourable elevation, climate, and soil,” he explains.

Hereford Park is the latest venture for SCH, which has been involved in kiwifruit since 1977. The family comes from a long line of farmers and rural people, and Dunstan’s grown up in the industry – if you’d been driving through Tauranga a few years ago, you might have seen a five year old version of him towing a billy cart full of kiwifruit to sell on the roadside.

Since then, he says, “I’ve personally done nearly every job you can do in developing an orchard.”

Over the years SCH has developed a string of successful orchards backed by a specialised ‘end-to-end’ business model that allows them to control every aspect of the development, from selecting the right site, to building the orchard and managing the harvests.

SCH is budgeting for a return of 10.1% over 10 years at Hereford Park, and they’re big believers in getting everyone’s interests aligned, which means that the Dunstan family puts their own money into every development. At Hereford Park, they’ll be providing 15% of the required equity, so they “have skin in the game, just like our coinvestors”.

Those co-investors are also co-owners.

Hereford Park is a limited partnership, which means that investors will own a proportional share of this land-backed asset, and SCH knows how to build orchards that last.

Dunstan believes in building orchards that stand the test of time.

“It’s better to do it once and do it right,” he says.

News

20 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Downside of high hive numbers Richard Rennie richard.rennie@globalhq.co.nz A POOR summer and continuous overstocking of beehives in some areas have contributed to a slide in honey production for the 202021 season, while honey exports leapt sharply from previous years.

The latest MPI Apiculture Monitoring report also reveals a decline in total hive numbers in New Zealand. The total of 806,140 is a drop of 12% from the industry’s peak in 2019 of 918,000.

Total honey production for the 2020-21 season has dropped 24% on the year before, with a significant slide in per hive production of 18%.

Meanwhile, the number of registered beekeeping enterprises has continued to rise, totalling 9891, driven almost entirely by the lift in registered “hobbyist” beekeepers with under 50 hives, predominantly having only five or less.

Home-based hobby beekeepers with five hives or less have experienced an unprecedented surge over the past decade, totalling 6748, up from only 2460 in 2012.

But despite the slide in hive numbers, long time bee researcher Dr Mark Goodwin is cautioning that overstocking of hive numbers in certain areas remains, and is likely to for as long as highly-valued mānuka honey is a key focus for beekeepers.

“Areas like Northland and Coromandel Peninsula in particular are under pressure for hive numbers,” Goodwin said.

Northland and Waikato comprise 35% of the North Island’s hive numbers, with Waikato the second-highest number of hives after Manawatū-Whanganui.

Goodwin likened high hive

Areas like Northland and Coromandel Peninsula in particular are under pressure for hive numbers.

Dr Mark Goodwin Plant & Food Research

WARNING: Dr Mark Goodwin is cautioning that high hive numbers in NZ will contribute to a slide in per hive production and beekeeping profitability.

concentrations to overstocking livestock on pasture.

“You may manage to keep them alive, but you will not manage to put any weight on them,” he said.

In the case of bees this was equivalent to generating generous honey surpluses beyond the colony’s needs in every hive.

The North Island yield per hive took a particular hit last season, averaging only 84% of the 10-year average at 22.5kg of honey per hive.

South Island beekeepers averaged close to their 10-year average of 33kg per hive for 202021.

Apiculture NZ chief executive Karin Kos says the findings

will not be surprising to many beekeepers after a summer that presented more challenging weather conditions than the previous season.

Goodwin says longer-term, overstocking will reduce the profitability of beekeeping.

“Lower returns may see things step back a bit and overstocking will always push production down,” he said.

Bees should typically be capable of gathering sufficient pollen within 1km, but many were compelled to fly 10km and once they did, they had to use more of the honey themselves that would otherwise generate a harvestable surplus.

Prices for non-mānuka honey continued to languish at the $3-$6/kg price range for 2020-21, up little from the 2019-20 harvest season values.

This price range is similar or less than what beekeepers were earning per kg a decade ago, well down on the peak of $10-$14 a kg fetched in 2017.

Mānuka prices remained firm at $8-$120 per kg depending upon grade, and mānuka honey underpinned the record setting volume of 12,788t of total honey exported last season. This was up 20% on the 2019-20 season.

Kos says export volumes increased sharply in mid-2020 after the initial covid outbreak,

thanks in part to supply stocking and greater consumer interest in healthy, immune-boosting food products.

She says export volumes this season continue to consolidate at above pre-covid levels and at the end of October were on track to meet last year’s record volume.

“Looking ahead, late flowering at the start of the 2021-22 season has resulted in the spring nectar flow being slower to kick in.

However, warmer weather over the past month has seen better honey flow in most regions and beekeepers are looking forward to a good season production-wise,” Kos said.

Despite the high number of hives in some areas, Goodwin welcomed the lift in hobby beekeeper numbers in NZ. “They often occur in urban areas and we lost a lot when varroa came. But they have learnt to deal with that and reflect a worldwide lift in hobby beekeepers,” Goodwin said. He emphasised a need for them to ensure they learnt good hive management practices to identify and contain diseases, including American foulbrood, a particularly problematic disease in hives that requires notification if discovered.

NZX dairy futures move offshore to Singapore Hugh Stringleman hugh.stringleman@globalhq.co.nz TRADING of NZX dairy derivatives has transferred to the Singapore Exchange (SGX) exclusively to scale up market distribution and liquidity.

The number of trading and clearing firms has been expanded from four to more than 70 and the numbers of buyers and sellers of contracts will grow considerably.

NZX chief executive Mark Petersen says the partnership agreement and expansion would benefit all participants, including New Zealand dairy farmers and processors.

“With the physical dairy market continuing to evolve, working in partnership with SGX opens up the potential to grow these derivative products to many multiples of the physical dairy market,” Petersen said.

He says new tools to deal with

price volatility and its associated risks are crucial and in huge demand by dairy processors and end-users.

With the physical dairy market continuing to evolve, working in partnership with SGX opens up the potential to grow these derivative products to many multiples of the physical dairy market.

Mark Petersen NZX NZX launched dairy derivatives on its market in 2010 and the number of futures and options

contracts has grown to eight, covering whole milk powder, skim milk powder, butter, anhydrous milk fat and liquid milk prices.

Jarden head of derivatives Mike McIntyre says farmers should benefit from more players in the market and increased liquidity.

“It will be easier to execute orders and bring greater price discovery, informing the market where prices are for the eight products,” McIntyre said.

He saw scope for more dairy products in the derivative market, perhaps offering contracts on milk prices in seasons further out in the future.

For local brokers like Jarden, the change to SGX comes with a later market opening time each day and has already resulted in a lot more enquiries, he said.

NZX head of derivatives Nick Morris says the partnership with SGX was focused on growing

BENEFIT: Jarden head of derivatives Mike McIntyre says farmers should benefit from more players in the market and increased liquidity.

liquidity, via a larger network and platform, to result in better pricing and execution for farmers and other traders.

“SGX also has a high profile in Asia where the majority of international physical dairy buyers reside, presenting opportunities to grow interest in the markets via their local

language speaking sales offices throughout the region including in China,” Morris said.

The collaboration is a working partnership and NZX is committed to leading the sales and product development of the contracts, as well as other aspects such as the GDT relationship, and its Data & Insights services.

AginED Ag ED

#

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

Volume 86 I December 13th, 2021 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz/agined

☞

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Wow, how is it December?!

If you are like me you are seriously questioning how fast this year has gone, even with its surprises along the way. You are wrapping up for the school year and in good kiwi tradition, there will be some celebrating to do over the next wee while, whether it is because you aced your exams, a friend's birthday or Christmas fun! We all love to hang out together and enjoy each other's company which is made even better with the sun shining.

What comes with this can be the intense pressure to drink… alcohol. You are undoubtedly going to be presented with or offered drinks over the next few months while festivities are at play so the question I ask you is, how do you say no if everyone else around you is drinking but you are not keen to or can’t? You might have just got your restricted licence and been given a car to borrow to drive to a friend’s house. You think your folks are really over the top with going over the rules about wearing your seatbelt, not taking passengers and NOT DRINKING! They are not saying this to grind your gears, they are saying this because there are too many teenagers having accidents in vehicles that involve alcohol and quite simply, they don’t want you to be one of them.

So, picture this; you are with your friends after arriving in the borrowed car and you are offered a drink. What do you do?

There is nothing ‘cool’ about drinking and then driving. You’ve all seen the NZ Police add ‘if you drink and drive then you are a bloody idiot’. There is a reason we are not allowed to do it and that is because it impairs our driving ability and people are killed. Restricted drivers in NZ are involved in the most crashes than any other driving group.

POSSIBLE OUTCOMES if you accept alcohol and then try to drive home:

1:

You lose control of the car and crash, injuring or killing yourself or someone else

2:

You are pulled over by a traffic officer and are charged

3:

You get pressured to take passengers, show off and lose control of the car

4:

You crash the car, don’t get insurance, get charged and lose privileges of driving 1

The moral of the story here is that you are already at an age and stage where driving is extremely high risk. If you allow yourself to get pressured into drinking and driving then you are making a life-threatening decision. So stop, think and ask yourself - is it worth it? The answer should always be no! Your parents would far rather a phone call asking them to come and collect you than a phone call to tell them that you have had a fatal accident.

You only get one chance at life so make it a good one and make it a safe one.

Harriet

Safety checks on our farm machinery is second nature, clearing birds nests, checking tyre pressure. Have you ever thought about yourself in the same way? Ask yourself, are you safe to drive your car before you jump behind the wheel.

A

Switch to something new, that’ll benefit you!

Shepherds are renowned for their uncanny skills in a number of areas – spotting gaps, bringing groups together, and ultimately showing the way forward. Silver Fern Farms David Barnett is a master in all these areas – and not just when it comes to handling livestock at the Finegand processing site.

He’s also put these skills to great use when navigating a pathway for his own career. As an off-season trainee in the People and Capability team, David has been actively involved in some awesome people-centric initiatives, including our vaccination drive and COVID site messaging.

Check out our careers website to see what opportunities you can grab!

Change your job.

Build your future.

Have a go:

Keen to find out if you can cut it in the meat industry?

Use the QR code here to take our quiz and find out or apply at careers.silverfernfarms.com

How many thousand tonnes of NZ beef was exported in October this year?

2 How does this compare to last year and the five-year average?

STRETCH YOURSELF: 1

How have NZ beef exports been tracking in the last few months? Does this mean demand for our products is strong or weak?

2 In July-September beef exports to China totaled 51,053 tonnes of beef which was worth $369 million. The US imported 37,285 tonnes of beef which was worth a total of $329 million. The US imported 27% less beef than China however the total value wasn’t much lower. What does this say about the value of products that the US imported?

RAISING LAMBS AFTER WEANING Check out this module from beef + lamb New Zealand on growing good lambs post weaning at https://beeflambnz.com/knowledge-hub/module/ growing-good-lambs#block-2639 Watch and complete the module on growing lambs post weaning and then answer the following questions; 1

What are three things to consider when deciding whether to retain lambs or sell at weaning?

2 How long past weaning do lambs need to be retained to make a viable profit above weaning prices?

3 What are good alternatives to grass pastures over the summer months to finish lambs? What are the recommended feed rates for growing lambs quickly?

4 What are some important things to monitor in your lamb flocks?

5 What is an animal health protocol?

22 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Newsmaker

River restoration starting to flow The Manawatū River Leaders’ Forum recently won the supreme award at the 2021 Cawthron New Zealand River Awards for the catchment that has made the most progress towards improved river health. Colin Williscroft reports.

I

N A little over a decade, the Manawatū River has gone from being identified through Cawthron Institute research as one of the most polluted in the western world to that same organisation now celebrating the work being done to clean it up.

The Manawatū River Leaders’ Forum was established in 2010 in response to freshwater health problems facing the catchment.

The previous year Cawthron research showed the river topped a pollution measurement taken on 300 rivers across North America, Europe, Australia and New Zealand for all the wrong reasons.

When the forum was established stakeholder groups committed to the Manawatū River Leaders’ Accord, which established a collective goal of restoring the river’s health and contributions that could be made to achieve it.

Lead judge for this year’s NZ River Awards supreme award category, Cawthron senior scientist Jim Sinner, says the accord entry stood out for its strong sense of purpose and direction.

“The accord’s objectives and key actions were established and clearly articulated in the Manawatū River Leaders’ Forum’s 2011 Action Plan for improving the health of Manawatū,” Sinner said.

“A decade later, they’re onto the delivery of their second action

PARTNERSHIP: Penelope and Blair Drysdale, with children Billie and Joe, along with Arapera Paewai, from the Te Kāuru Hapū Collective, at the Drysdales’ property near the source of the Manawatū River.

RECOGNISED: Manawatū River Leaders’ Forum co chairs Danielle Harris and Rachel Keedwell with the Cawthron NZ River Awards 2021 supreme award.

plan and can clearly demonstrate progress against their original objectives, with active and regular review processes in place.”

The judges commended the accord for working to include a wide range of stakeholders across the community, government and industry, and for building strong relationships with iwi and hapū groups, many of which are integral members of the accord.

Forum co-chair and Tanenuiarangi Manawatū Incorporated chief executive Danielle Harris says the award

recognises not only interventions in the river but the collective mahi undertaken on the ground.

“When the accord was signed in 2010, not all partners agreed on what needed to be done to help improve the Manawatū River,” Harris said.

“As a result, one of the biggest challenges to begin with was figuring out how we could all work together to achieve our common goal, which was to improve the health and mana of the awa. “(The) award recognises the significant body of work

undertaken by accord partners, such as iwi and hapū, local government, environmental groups, community groups, industry and landowners, over the past decade.”

Harris says the majority of farmers and the wider rural community have bought into the forum’s work, although there will always be some who won’t see it as significant.

“But I think the likes of Fonterra, Federated Farmers and (individual) farmers are really on board,” she said.

“A lot of their great work goes unseen and unpraised, in terms of fencing to keep their stock out of the river and farming practices to reduce unnecessary discharge into the river.

“In particular, the new generation coming through is a lot more environmentally aware.

“We are now a whole-ofcatchment community working towards a shared vision – kei te ora te wai, kei te ora te whenua, kei te ora te tangata – if the water is healthy, the land and the people are nourished.”

Fellow forum co-chair and Horizons Regional Council chair Rachel Keedwell says changes to freshwater regulations are helping, with an increasing number of landowners understanding that fencing off waterways and riparian planting are practices that are going to be expected in the future.

Keedwell says Horizons’ programmes in those areas are oversubscribed, which illustrates the level of buy-in by farmers.

You’ve got people willingly getting on board and seeing the value in doing this, not doing it just because they’re being pushed but doing it because they can see the benefit that they can get out of it.

Rachel Keedwell Manawatū River Leaders’ Forum

New thinking

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

23

A clear view of soil erosion The first national-scale map of surface erosion in New Zealand has been developed, which is also the first in the world to include the impact of livestock grazing. Colin Williscroft reports.

T

OPSOIL erosion threatens food production, land stability, water quality and functioning ecosystems around the world, with around 192 million tonnes of soil lost to erosion in New Zealand alone.

Globally, soil erosion models play a critical role in understanding where and how to conserve soil but until recently, the impact of livestock grazing has not been accounted for.

For NZ, where 40% of land is in pasture, that means there is an incomplete picture of surface erosion susceptibility.

A new high-resolution map, developed through Our Land and Water’s Land Use Sustainability programme, incorporates grazing to provide a more accurate picture of land’s susceptibility to soil loss from surface erosion at farm, catchment and national scales.

To provide a more detailed picture of surface erosion, researchers, led by AgResearch landscape scientist Mitchell Donovan, produced the national map by developing a novel grazing model, which they plugged into a globally recognised model for calculating susceptibility to surface erosion, the RUSLE (Revised Universal Soil Loss Equation) model.

Donovan says initial results show that integrating the grazing model into the RUSLE model vastly improves our ability to understand where and how susceptible land is to surface erosion, soil degradation and estimates of soil loss from pastoral land, with modelled surface erosion aligning well with observed measurements.

In doing so, Donovan suggests we can proactively mitigate soil

losses by minimising the overlap between susceptible lands and moderate- to high-intensity practices.

The model used calculates soil erosion susceptibility using seasonal rainfall, slope length and steepness, soil erodibility and groundcover and management factors.

Donovan says when combined with the sub-model, it can incorporate the impacts of grazing and stock treading on soil’s physical properties and groundcover and therefore on surface erosion.

He says the sub-model uses observed relationships between grazing/treading intensity (stock hoof pressure, grazing density, duration and history) and damage to soil’s physical properties (permeability and structure).

It further accounts for susceptibility due to clay content and seasonal soil moisture, which alter soil’s susceptibility to pugging and compaction and incorporates natural variability in seasonal groundcover and the erosion potential of monthly rainfall.

Donovan says the maps can provide two primary tangible benefits to land health and farm economic standing if the results are used to inform on-farm decisions.

“In the long run, I imagine these benefits will stem from less degradation to and loss of topsoil, which will increase the storage and retention of nutrients (N, P, C).

“Increased retention of soil and nutrients will mean a long-term increase in productivity with fewer fertilisers or inputs,” Donovan said.

The first is that it provides a spatial representation of

PURPOSE: AgResearch landscape scientist Mitchell Donovan says the map will help gauge where land is susceptible to soil loss.

This goes beyond understanding the land and towards an understanding that includes the interaction between animal grazing intensity, physics and the land’s susceptibility.

Mitchell Donovan AgResearch

where farmland is most and/ or least susceptible to surface erosion based on the inherent/ natural properties, which are unmanageable. These are soil type, slope and rainfall intensity.

He says some farmers will have an idea of this already, but having high-resolution evidence supporting farmer’s knowledge can improve that understanding and have the potential to inform farm environmental planning and soil conservation goals.

“I see the maps as a second approach or method for figuring out where the land is susceptible to soil loss, or as a first glance for farmers who are working a new set of lands,” he said.

“The second benefit that I see is through collaboration between myself and farmers.

“Working together, we can use the farm management scenarios to estimate the change in soil losses when each paddock is grazed at a specific density by a particular stock type. This goes beyond understanding the land and towards an understanding that includes the interaction between animal grazing intensity, physics and the land’s susceptibility.”

He says because the maps work up to 15 m2 resolution, they can distinguish susceptible areas within paddocks that could benefit from being fenced off, rather than just providing a general estimate for the entire paddock.

The maps also have the potential to inform tools like freshwater farm plans.

Because the farm maps can be nested within the broader catchment erosion model, Donovan says this approach would be the best available option for providing a catchment context of each farm within a catchment, as well as risk impact and assessment, which are two key aspects of freshwater farm plans.

A third aspect – actions to reduce risk – would not be a direct output of the maps, but could be possible if a farmer

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used knowledge of the land’s susceptibility in order to avoid grazing specific paddocks or areas that are particularly susceptible.

“We often come at the framework of ‘patching up’ our damages and overlook the idea that proactive planned farm management is an action in itself.

For example, farmers who use a soil susceptibility map to plan grazing strategies is a proactive action, though it’s not often listed in remediation strategies or ‘actions’ in many environmental guidance documents/websites,” he said.

Donovan says it will probably be a few months before the national maps are released publicly because it will take time to find the appropriate online platform and storage.

He says the national maps are not likely to be immediately useful to regional councils, catchment groups, or individual farmers who want to understand their farm, but in those cases, he recommends getting in touch to explore the appropriate options to develop a regional, catchment or individual farm map that accounts for specific grazing densities at paddock scales.

“I’m working hard to get these in the hands of those that can use them, which will be most effective if I am supported by those who are working with the land,” he said.

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24 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

EDITORIAL

Turning challenges into opportunities

O

BSTACLE or opportunity?

The world of self-help is filled with ways to turn the former into the latter.

But it’s a difficult mindset to adopt when the challenges appear to be piling up.

A new survey from BNZ seems to suggest the New Zealand farming community is struggling with this question right now.

Respondents were split pretty much down the middle, with a tick over half optimistic about their farming future.

The rest saw their futures threatened by the challenges ahead.

Those challenges are numerous so it’s no surprise there’s pessimism.

Regulation, changing consumer demands and the changing climate are all reasons for alarm.

When you look at these things in isolation it can seem like a series of neverending hurdles – a race with no end.

But if you zoom the camera back out and look at the big picture, a more cohesive and appealing scene may emerge.

Each of these challenges are linked, with success in overcoming one helping to overcome the next.

Happy regulators lead to social license, which leads to higher-value customers, which hopefully leads to better returns.

Some may think that’s an overlyoptimistic take, but it’s one that leading food producing nations are pursuing.

Israel, Ireland and the Netherlands, for example, have each looked at the lay of the land and decided a future that suits their needs.

They are very different geographically, but they have one thing in common.

A strategy that’s backed by producers, processors and regulators equally.

New Zealand has started down that path, there’s a strategy out there but so far it doesn’t appear everyone’s on board with it.

That needs to change because the world is changing and we risk being left behind.

Those who see obstacles fear what they’ll lose.

Let’s be an industry that is focused on what we can gain, once a challenge is overcome.

Bryan Gibson

LETTERS

We cannot build more rivers THERE were no surprises in MPI’s Water Availability and Security in Aotearoa New Zealand roadmap. The advisory group interests included forestry, irrigation, dam builders, ECan and a consultant for mining, grazing and water harvesting so the revelation of our need for more water storage was as sure as night follows day.

Water storage is a euphemism for dams, abstraction and irrigation, much like ‘waste management solutions’ is for rubbish collection.

Those who campaign on the concept of river water being wasted as it flows out to sea cannot or refuse to see the impacts of extracting water from rivers. There are a myriad lessons to be learned from our seemingly unquenchable

desire to consume freshwater at the expense of rivers – here are three: The Rakaia River, which supplies the Central Plains Water Scheme and the Barrhill Chertsey Irrigation Scheme, is now a shadow of its former self – since the BCI irrigation scheme and Stage II of CPWS have been completed, salmon runs have declined to 10% of expected numbers, the once thriving sea trout fishery and its associated Stokell’s smelt native fish have been destroyed, along with considerable declines in endangered black-billed gulls and white-fronted terns.

Side braids are now dry shingle and engulfed in vegetation and the river mouth has shallowed, which increases flood events at Rakaia Huts.

The Rangitata is a victim of the Diversion Race and South Irrigation take-offs. A Niwa eFlows study of data from 2001-2020 concluded that ‘flood harvesting’ results in fine sediment being deposited on the river bed.

Effectively, the irrigation schemes have weakened the ability of the river to flush out its natural high sediment load out to sea during flood events.

The impacts on aquatic larva, fish spawning habitat, feeding and the hapua are not good.

The Opuha River suffers the tragedy of irrigation storage trumping ecosystem health.

Low summer flows exacerbate phormidium (toxic cyanobacteria) and didymo growth.

In 2019, Opuha Water Ltd themselves admitted that “the health of the ecosystem

in the Opuha River had been degrading since the Opuha Dam opened in 1998”, as indicated by “excessive algal growth” and a decline in insects. Opuha Water confirmed that “artificial freshes are generally only released in wetter periods, when lake levels are above average”. That is, when they are least required.

Private irrigation schemes are effectively alienating the public resource of rivers, leaving them denuded and debilitated. While we can build more dams, canals and irrigation schemes, we cannot build more rivers.

David Haynes Secretary and Treasurer New Zealand Federation of Freshwater Anglers Wakapuaka

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

25

Regen calls getting louder Pulpit CRUNCH TIME: With the Climate Change Commission’s ideas not being followed up until about May, and the Emissions Reduction Plan being strong on transport and minimal on agriculture, the Government must be hoping that when they measure how much He Waka eke Noa has achieved in March, there are some miraculous figures produced.

Sue Edmonds

D

O YOU get the feeling lately that there are so many problems and projects going on, but that none of them seem to be making any recognisable progress?

There is covid – do we let it loose, fill hospital beds and maybe make the morticians happy?

There was COP26 which, for all the brave words, seems to have achieved nothing significant in relation to climate change, although there will be a lot of measuring going on.

Climate Change Minister James Shaw attended with very little in the way of promises from New Zealand, apart from buying our way out of action. He did get the rulebook completed to operationalise the Paris Agreement, with data now having to be reported by all involved, but goodness knows what our report will say.

I stared in amazement when he announced at the end: “It was well past time to move from talk to action.” And followed up by saying “New Zealand will continue to lead by example here and show the world what meaningful, ambitious and lasting climate action looks like”.

With the Climate Change Commission’s ideas not being followed up until about May, and the Emissions Reduction Plan being strong on transport and minimal on agriculture, the Government must be hoping that when they measure how much He Waka eke Noa has achieved in March, there will be some

miraculous figures produced.

We are getting louder over the potential for regenerative farming being done widely here, and the Our Land & Water Science Challenge has been producing some interesting Zoom webinars with reports from a variety of angles, see ourlandandwater.nz/ regen-ag. But the scientists are still moving carefully, although they have agreed it works elsewhere. However, the list of the measurements that we haven’t been making, and the timeframes it might take to get them, was somewhat astonishing to a mere lifestyler who has been doing all the right things for years, and has been very satisfied with the results achieved, even on her one hectare.

But overall, we still seem to be missing what to me is the vital point. As Dr Gwen Grelet said in a recent conference talk, most of our farmers are white, male and middle-aged, and seemingly drastic changes to their thinking and ways of working are very scary. How often have you heard one say “that’s not what we were taught”, and I am sceptical whether the teaching has kept fully up with the enormous discoveries made in the last few

As Dr Gwen Grelet said in a recent conference talk, most of our farmers are white, male and middleaged, and seemingly drastic changes to their thinking and ways of working are very scary.

years over how nature and its teeming soil life actually work.

We aren’t seeing ‘symbiosis’ making headlines yet, where the underground residents take ‘give and take as needed’ as the natural way of living.

There is an enormous amount of new knowledge available, but not being taught. And our farmers are probably very familiar with the old work of Liebig, that it’s all down to putting on the right chemicals, but haven’t heard of Lynn Margulis and the microbiome, Matthew Evans book on soil, or maybe even Gabe Brown and his ranch.

I am now doing a fifth 12-week Zoom course from a Boston outfit (Bio4Climate) on biodiversity, where we’ve studied how nature works from our own gut, to soil, to farming, to water, to forests, where some form of symbiosis is involved at every stage. I’m also now doing an eight-week one on ecological economics, and the corporate manipulations which overran COP26 made me weep.

Climate change is here and speeding up fast. So we are all going to have to learn about coping with floods and droughts, which means we shall have to get a lot more familiar with our soils and how they work. All that chemical fertiliser will have decimated, if not evicted, the mycorrhizae and bacteria, the mycelium and glomalin, and even the wrigglers from a lot of our soils. And it will also have compacted what is left, so there are few air and water spaces in what passes for aggregates.

How many farmers have done infiltration tests on their soils across farms, and are aware of just how little and how long the rain dumps we get today will take to be absorbed, or will it all just runoff and add to our erosion

records? I remember attending a regenerative farm visit a while ago, where, to some of those attending, the infiltration tests were a whole new idea.

While our careful scientists work out how many areas of research will be needed to know how, or whether, regenerative farming will work in NZ, some of our educators need to get cracking on offering courses on soil life, and more of our farmers need to hook into the local regen groups, which enthusiastically exchange their new ideas and successes.

As Charles Merfield, head of Future Farming at Lincoln, was heard to say on a webinar, “Their motto is “make farming fun again”. Now wouldn’t that be an improvement?

Who am I? Sue Edmonds is a freelance farming and science writer.

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Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Still same ol’ National Alternative View

Alan Emerson

I’VE watched with interest the reaction to the election of Christopher Luxon to lead the National Party.

Some local mates have told me that it’s a “new and great hope”, that “the next election is in the bag” and that “he’ll hold the Government to account”.

I remain unconvinced.

The only recent change in the National Party as against a year ago was the leader and although that is important, it isn’t everything.

With the exception of a few politicians, it’s the old National, with many still retaining the long outdated ‘born to rule’ mantra.

National has been in opposition for over four years now and, in my view, has been spectacular in its failure.

It’s not the opposition that a democracy like New Zealand needs and I can’t see the new leadership changing much of that focus on self-destruction.

There have been boundless opportunities for the opposition to make waves, Transmission Gully, Three Waters, roading subsidies and water storage, to name a few.

Luxon has been the opposition

spokesperson for local government and in the months since Three Waters has been simmering, I’ve been unaware of him being remotely effective or even visible in his opposition to Three Waters.

Luxon didn’t start well doing a John Key lookalike presentation.

Key is yesterday’s person. National needs a new voice and a different approach going forward.

Actually, Luxon’s original statements as new leader of the opposition didn’t differ a lot from those of the ill-fated Todd Muller when he got the job.

For a start, hiring a Merc to drive a couple of hundred metres to Parliament was ridiculous, not to mention its unnecessary global footprint.

For a start, hiring a Merc to drive a couple of hundred metres to Parliament was ridiculous, not to mention it’s unnecessary global footprint.

Saying he wanted Auckland to be under a green traffic light was trite and was the same type of statement Judith Collins would have made. I don’t believe it was a sincere statement, just petty politics.

Luxon talks about his time as Air NZ chief and how there are similarities with Parliament. My

memory of Air NZ under Luxon’s watch was that the provinces were an afterthought. Wairarapa lost it’s Auckland connection, as did other provincial areas.

Luxon’s first commentary involved a National Party reset.

How? For a start, he has the National Party board to contend with.

Last election that board was spectacular in its failure to select good candidates, those who reflected real NZ. With the exception of Sir Graham Harrison, the rest don’t relate to the provinces, aren’t the kind of person you’d meet at a grassroots social gathering and by their write ups, the big C – conservatism – dominates.

Luxon then suggested National wanted to grow the economy.

How, he didn’t say.

When he announced his shadow cabinet he described Muller as “a guy that has huge abilities and experience”. Really.

Luxon then moved to hyperbole saying that he had a team with “the deep experience, the political skills, the work ethic and the intellectual grunt to come out on top (of their Labour counterparts) every time”.

We’ve heard all that empty rhetoric over many years.

I suffered the first question time of Luxon’s reign. It was the same old National and despite rhetoric to the contrary, the Prime Minister won the Luxon exchange, hands down.

National needs to tell me exactly how they will support the provinces and agriculture. Tell me exactly what you’ll do that Labour

TRACK RECORD: Alan Emerson believes National is not the opposition that a democracy like New Zealand needs and can’t see Christopher Luxon’s leadership changing anything.

Photo: Wikimedia Commons

isn’t. Don’t just give me trite sound bites.

The interview with Newshub’s Jenna Lynch was telling. We heard from Luxon that abortion was murder. They say that in Texas.

He said he didn’t know how much his seven properties in Auckland were appreciating by. We were told $90,000 a week.

I’m pleased Simon Bridges is back with finance. My view is that he was the most effective leader of the past five. He’ll certainly make his mark.

I’m also happy Barbara Kuriger is at 10 with agriculture.

David Bennett didn’t rate when he had agriculture, now at 20 he has regional development. I’m not holding my breath.

Todd McClay will do well with trade and export growth, but amazingly isn’t ranked. Neither is previous Young Farmer of the Year Tim van de Molen who is defense, horticulture and associate

Kindness key as we navigate covid IT WOULD seem 2021 was the year of covid. It dominated everything. The media, business, relationships, economies, travel, recreation, sport and anything else you care to name.

Hold on, Steve, wasn’t 2020 the year of covid?

Well, yes, that’s true, and it’s looking like 2022 will continue to be dominated by the pandemic and its repercussions and it’s anyone’s guess how 2023 will pan out. Probably the early to mid-2020s will enter the history books as a moderate pandemic compared to historical lethal ones, but given the complexity and interconnectedness of modern living had a massive impact on the human world.

So, for now, let’s just get through this thing day by day, week by week.

As a country we move from an elimination or covid-zero strategy to a containment strategy using the Covid Protection Framework, usually called the traffic light system. We finally catch up to the world in dealing with the virus in our communities. But with a decent vaccination rate of 94% of the eligible population having at least one dose and 88% now with two. It was a late start with the vaccination programme, but we have rapidly climbed the ladder

and are just about to enter the top 10 of the most vaccinated countries on the planet.

This will give us a great advantage over the much of the world who dealt with the virus last year before a vaccine was invented and even places like Sydney and Melbourne, which only a few months ago had a terrible time as they frantically worked on getting folk vaccinated as the virus ran rampant.

That something near 95% of our eligible population will all have agreed to the same course of action is remarkable. Usually, referendums and government elections are decided by a bare 50% majority at best.

Some sectors of society even have a 100% take-up rate. The All Blacks, Super Rugby Pacific teams, The Black Caps and Parliament, although National’s Maureen Pugh dragged her feet for four months but finally accepted the inevitable.

She does claim to have been hit by lightning three times so that could be a mitigating factor.

But it’s not all good in the garden.

The traffic light system and its requirement of the vaccination certificate to show you’ve had a couple of shots will certainly help contain and manage the pandemic as it works it’s way through our communities, but is causing a decent degree of angst

CHOICE: It is people’s right to choose not to be vaccinated as it’s their body, but it puts them in a tough situation as we close in on the festive season and catch up with family and friends.

and difficulty as we grapple with the resulting implication of two groups of us. The vaccinated and those who choose to be unvaccinated. As opposed to those who cannot be.

I read an interesting piece recently in The Atlantic, which is a peer-reviewed and respected journal from the US. It’s main premise was that to spread covid you had to have covid. It used an example of two weddings: at one, none of the guests were vaccinated and at the other, everyone was.

At the unvaccinated wedding, the odds were quite high that some guests would have the virus and be spreading it to others who would catch it easily.

It would become a super spreader event that we see regularly elsewhere.

At the vaccinated wedding, the chances of any guests having the virus are greatly less but still possible and that person can still shed the virus, but the protection the immunity offers from the vaccine means that it is much harder for others to catch and if they do, the health impact will be significantly lower.

Which wedding would you choose to attend?

It’s a good example, which explains how the authorities have

agriculture.

My wish was for Dr Shane Reti to be leader. If he makes a statement I listen. He is a doctor, an accountant, Māori, highly intelligent, honest and comes from the provinces. I would have put Nicola Willis as his deputy.

So we have a problem in NZ. As I wrote last week, the Government currently doesn’t seem widely interested in or supportive of the provinces. It strongly appears to me that neither is National.

It’s actually worse in that after four years in opposition we are still being dished up inanities and sound bites.

Maybe it’s time for a new political party representing the provinces.

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

From the Ridge

Steve Wyn-Harris

been able to contain the Auckland outbreak to Auckland and Waikato mostly for so long, as well as the lockdown measures of course.

It is people’s right to choose not to be vaccinated as it’s their body, but it puts them in a tough situation during these times.

And a difficult situation for sports clubs and other institutions as they grapple with the rules and their desire to keep everyone safe, both vaccinated and unvaccinated.

Even in some homes this will become an issue as we close in on the festive season when we catch up with family and friends.

Both groups need to accept that this is the situation we find ourselves in. We need to navigate our way through this with decency, understanding and yes, kindness.

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 – December 13, 2021

27

Alliance comfortable with progress Meaty Matters

Allan Barber

THE Alliance Group Ltd (AGL) posted a significantly better result for the 2021 year, achieving a 53% improvement on the previous year at the pre-tax and provisions level. The latest result incurred a much reduced provision for historical employee entitlements, enabling the company to report a post-tax profit of $23.8 million after distributing $8.5m to shareholders, compared with $7m after tax in 2020, with no distribution.

Total revenue was only marginally up, but key differences were an improved operating margin between revenue and cost of sales, partly offset by an increase in administrative expenses and an improvement of nearly $10m in equity accounted earnings. This last item suggests a massive performance improvement by the North American Lamb Company associates, which will also show up in joint shareholders Silver Fern Farms’ and Anzco’s annual results. This category also includes other partly owned businesses, such as pet food ingredient supplier Meateor.

As a wholly owned subsidiary, the revenue and expenses of UKbased NZ Farmers are not broken out separately, although Alliance chair Murray Taggart confirms that it had a very profitable year, even better than the previous period, which was also good.

Taggart emphasised the problematic trading environment for much of the 2021 year because of the covid-induced disruptions to processing efficiencies and containerised shipping problems, which continue to get worse and will undoubtedly affect the 2022

year. In spite of positive market prices, especially for sheepmeat, the company found it difficult to hold on to the extra margin or reflect the full benefit of sales before the balance date. Late shipment of product caused higher levels of inventory and trade debtors, which had an adverse impact on total annual sales, cashflow from operations, which was $13m negative for the year, total borrowings and the equity ratio.

The annual report shows a progressively downward trend in the equity ratio for the past four years, declining from 64.1% in 2018, to 52.9% in 2021. Taggart attributes this trend to the difficult trading situation, saying the board’s preference is to maintain a ratio above 60%, which he is confident will be the case in more normal times. In fact he believes the percentage could well have been 65%, if it hadn’t been for the logistical challenges.

The difficulty of analysing Alliance’s result accurately and fairly is compounded by the changed meat industry structure since the days when the financial year for three companies – Silver Fern Farms (SFF), Alliance and Affco – ended on September 30, with the annual result being published in November. The fourth major, Anzco, also had its year end at the same time, although its result was not released to the Companies Office until April.

SFF and Anzco now balance at the end of the calendar year following changes to their ownership structure, while Affco as a wholly owned Talley’s Group subsidiary no longer reports separately. The other large processor, the Progressive Meats group of companies, is a private company and is not required to report publicly.

Blue Sky Meats presents a further opportunity for comparative analysis, as its financial year has now changed to June 30, having previously balanced at March 31. Although

IMPACT: Alliance chair Murray Taggart emphasised the problematic trading environment for much of the 2021 year because of the covid-induced disruptions to processing efficiencies and containerised shipping problems.

Alliance’s 2021 result was adversely affected by the difficulties of getting product to market and consequently the delay in debt collection, although only time will tell if this was a problem common to all exporters and if Alliance managed to convert this into profit for 2022.

much smaller than the other four, Blue Sky provides an early bellwether of how the sector is performing. Their profit for the 2021 year was substantially improved on the previous year’s

15-month trading, despite 20% lower turnover, and their equity ratio stands at 63%, up from 52% a year earlier.

Blue Sky’s improvement reinforces whispers around the industry, which suggest some of the other companies will report better results than Alliance, either from higher margins or a more efficient cost base. It is also possible the difference in reporting periods can skew the comparisons, although in Taggart’s opinion the trading pattern is now flattening out, whereas September used to be a very slow month.

There is no doubt Alliance’s 2021 result was adversely affected by the difficulties of getting product to market and consequently the delay in debt collection, although only time will tell if this was a problem common to all exporters and if Alliance managed to convert this into profit for 2022.

At roadshow presentations in early October, SFF’s chair and management talked very positively about the strength of the market demand for NZ red meat, emphasising 2021 would provide the fourth consecutive year of profitability for the company with an anticipated improvement over last year. Chair Rob Hewett spoke about how well the company was performing in spite of the logistical challenges facing the whole sector, as well as the host of regulations confronting farmers, while chief executive Simon Limmer emphasised the company’s ability to continue investing in the business. In fact, another $62m of capex would be invested in the current year and a total of over $200m over five years.

It will be necessary to wait until the new year to measure the two southern rivals’ respective performances. But improved results from Blue Sky and Alliance and SFF’s optimistic roadshow comments to suppliers indicate another high profit level for an industry which finally seems to have developed the knack of converting high market prices into sustained prosperity for processors and suppliers alike.

The red meat sector will move into 2022 with some nervousness about its ability to continue to meet market demand, also assuming prices for beef and sheepmeat remain at elevated levels. Predictions of tight protein supply around the world suggest demand will still be strong, but the industry’s main challenge will be getting product to market, while covid continues to rear its head and may yet serve the economy as a whole a curveball.

Your View

INVESTMENT: Alliance has installed some of the latest processing technology at its Lorneville plant as part of its strategy to maximise operational performance.

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

World

28 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Defra defends trade, farm policies DEFRA Secretary George Eustice has found himself at the department’s helm during the most tumultuous time for farming in living memory.

Businesses are being squeezed from every conceivable angle, with input costs soaring, labour shortages across the supply chain, increasing regulation, falling levels of direct support and, of course, the prospect of new trade deals on the horizon.

It is on the latter issue that you get the sense Eustice is uneasy with the Government’s direction of travel, although he is always careful to toe the line in public.

In 2019, during his brief time outside Defra, he wrote an article for The Guardian in which he said the Americans would have to “learn to abide by British standards” if they wanted privileged access to the UK market. But now, the Government has signed an agreement in principle with Australia, while ignoring a recommendation from both the Trade and Agriculture Commission and the National Food Strategy to set out a mechanism to protect standards in trade deals.

Asked whether Ministers were failing to join up domestic policy thinking, which is driving

$

5

p

VIEW: Defra Secretary George Eustice has defended the UK government’s trade and farm policies, dismissing the notion that it is opening the UK market to substandard produce.

Photo: Wikimedia Commons

standards up, and trade policy thinking, which is opening the UK market to sub-standard produce, Eustice said: “I do not accept that.

We have in the Australia trade deal recognised we have sensitive sectors, in particular beef and sheep.

“That is why we have gone for a tariff rate quota for the first 10 years and then a strong safeguard mechanism after that.

“We are also working on an SPS [sanitary and phytosanitary] statement, which will be a clear statement of the UK’s approach when it comes to these issues around food standards in our international trade agreements.”

nt h o m er gst) s (plu

The SPS statement is expected to be published “sometime early next year”, but will come too late to influence the deal with Australia, which refused to sign the global methane pledge unveiled at COP26.

Defending the Government’s position, Eustice claimed the Australians were “like-minded in some areas”, and pointed to the idea of a carbon border tax as a way to prevent domestic produce being undercut.

“If countries like Australia were not pulling their weight, that would be reflected in a border adjustment tax as those products enter the UK,” he said.

1

He suggested this kind of tax would be likely to emerge in the next eight years, before tariffs on Australian imports are fully eliminated and rejected the idea of a broader carbon tax, which would hit domestically produced food, saying agriculture policy would reduce greenhouse gas emissions.

Eustice also insisted that the new Sustainable Farming Incentive marked a real break from the Common Agricultural Policy (CAP), despite the fact that larger landowners will continue to receive the biggest payments – a key criticism levelled at the CAP

by Brexiteers, including the Defra Secretary himself.

“It is conceptually very different,” he said.

“In future, there will not just be an arbitrary subsidy payment based on the land area you have, it will be a payment for what you do on the environmental assets on your land.”

In the uplands, in particular, smaller farmers are expected to be worse off because the payment rate for the moorland and rough grazing standard has been set so low, at £6.45/hectare (about $12.52).

Eustice attempted to defend the rate by appealing to historical

precedent, pointing out it had always been “significantly lower” under the Basic Payment Scheme, but said he expected the payments to go up as the scheme developed.

He also batted away concerns about institutional landlords signing up to environmental schemes with tenants contracted to deliver them, saying this would “not necessarily” take away a revenue stream for tenants.

One other issue causing worry in the industry at the moment is the Environment Agency’s (EA) interpretation of the Farming Rules for Water, which has led to an effective ban on autumn applications of organic fertiliser.

Here, Eustice sought to offer reassurance by saying the Government would issue statutory guidance to the EA in the “early part of next year”.

Taken together, all these problems have led to a drop in support for the Conservatives among rural voters. But the Defra Secretary remains unphased.

“The polls go up and down,” he said.

“The crucial thing for me is I am at Defra in a crucial time of change, where there are some important policy agendas and some big opportunities.”

UK Farmers Guardian

of the best reasons to subscribe to Pulse during the month of December!

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Informing the future of agriculture

Te Puke 168 No 1 Road

Avocado land • 13 ha two titles - three minutes to town • Flat Land - 7.7 ha well maintained Avocado orchard • Build your dream home with sea views and income • Sealed access, power and town water to both titles Income from a well-established and superbly maintained Avocado orchard of 7.7 canopy hectares of Hass Avocados.

Perhaps you have been seeking that special place to build your dream new home in a secluded sheltered location? This hidden gem should not be overlooked, flat land with privacy and house sites with views to Motiti Island. The lucky buyer is going to love this spot with sealed driveway power and town water on site, a mere three minutes from Te Puke ensures the local amenities are readily accessible while being hidden from the world when you get home. You must view this property. Don't miss out. Call to view, strictly by appointment only.

For Sale By Negotiation + GST (if any) View By appointment Web pb.co.nz/TZR10249

Brett Ashworth M 021 0261 7488 E bretta@pb.co.nz

Whakatane 388 Reid Road Tender

Pride of Opouriao Valley The Opouriao Valley is a traditionally productive, well established dairy farming area. Since 1935, this farm has been an enduring example of this areas reputation, and for the first time in 86 years it is ready for a new prospect to take the reins. The farm has a 32 ASHB shed. 99.3 ha of land in total with 100% flat contour. It holds five large sheds, concrete silage pad and three dwellings. The soil make up in the area harbours rich deep silt loams supporting lasting grass growth.

There are 73 paddocks, with great fencing throughout. Just a short 16 km drive to the main service town of Whakatane, with NZs best beach at Ohope nearby. Trout fishing rivers and Te Urewera park are also in the vicinity, providing enviable lifestyle opportunities. Dairy farms of this calibre are seldom for sale, prospective purchasers must act quickly. Purchase price will be plus GST (if any).

Tender closes 12.00pm, Wed 26th Jan, 2022 View By appointment Web pb.co.nz/WTR100614

Doug Butler M 020 4026 2624 E doug.butler@pb.co.nz Maurice Butler Kevin Richardson M 027 497 4066 E kevin.richardson@pb.co.nz

Property Brokers Ltd Licensed REAA 2008 | pb.co.nz

Proud to be here

Taumarunui 331 Burnand Road

Taumarunui 102 Valley Road

Burnand beauty Immaculately presented 40 ha farm with fantastic contour. The property stretches from flats to easy rolling hills with some medium hill and steeper areas. Could be used for maize and silage production, or fattening cattle as it is now. Clean country with minimal weeds. Currently fattening cattle and winter lambs, but the options could be endless. It could be a particularly nice equine property with its free draining soils. Well supported with reticulated spring water, a solid fertiliser history and great shade and shelter offered by established trees. Four bedroom G.J Gardener home built in 2012. A superior property with top quality improvements including an enviable implement shed.

Sitting pretty!

For Sale From $1,750,000 + GST (if any) View By appointment Web pb.co.nz/TUR82219

Katie Walker M 027 757 7477

This beautiful farm house has been lovingly restored and sits on 16.69 ha (more or less) of farm land. There are three generous bedrooms, a large open plan kitchen, living and dining area. The home is easily heated by the big woodsman fire and its sunny aspect. Multiple french doors open out to an impressive wide covered verandah, ideal outdoor living any time of the year! The land is tidy and well fenced with some recently replaced conventional fences and gates. There is a large 3 bay garage at the house to store all your goodies and it is only a five minute drive from Taumarunui. There are so many boxes to tick here, renovated home, large land size and handy location.

For Sale From $850,000 + GST (if any) View By appointment Web pb.co.nz/TUL86278

Katie Walker M 027 757 7477

Longridge North 162 Longridge Village Road Deadline Sale

Together Stronger

Our combined strengths complement each other, creating more opportunity for our customers and Farmlands shareholders across provincial New Zealand.

• A nationwide network from Northland to Southland • Sound, trustworthy advice from market-leading experts • Shareholder benefits and preferential commission rates means more money in your pocket Bigger networks, more buyers, better results For more information call 0800 367 5263 or visit pb.co.nz/together PB053815

Property Brokers Ltd Licensed REAA 2008 | pb.co.nz

Cows - milk - profit This 180 ha dairy farm was converted 12 years ago and has quality soils, modern infrastructure, a simple shape with excellent layout and strong young pastures. 38 ASHB cowshed, in-shed meal feeding with automatic mineral dispenser/mixer and a rectangular yard. The cow shed, feed pad and calf shed are centrally located and handy to one another, which allows for efficient management of all livestock. Two family homes, the larger one being set in an established garden, overlooking the Longridge district. This farm has been conservatively farmed by the current owners since they converted it and this is a great opportunity for the next owners to take it to the next level.

Deadline Sale closes Thursday 27th January, 2022 at 4.00pm, (unless sold prior) View By appointment Web pb.co.nz/IR100249

Wayne Clarke M 027 432 5768 John Hay M 027 435 0138

Proud to be here

Real Estate

FARMERS WEEKLY – December 13, 2021

farmersweekly.co.nz/realestate 0800 85 25 80

31

OPEN DAY

Ōtorohanga 67 Okoko Road Whether it be farmed as a dairy, or perhaps a change to an easy care dairy support/grazing or finishing block, the options are there for the taking with this multiple income earning property, in a price range that you will struggle to find elsewhere.

• • • • • •

182.4345 hectares 83 ha utilised as dairy platform milking 230 cows 68 hectares of Manuka, along with additional native and pine areas Good standard of support buildings 20 aside cowshed Spacious two story four bedroom home

4

182.4345 ha

For Sale $2,950,000 View Open Day 14 & 21 Dec at 11am - 1pm harcourts.co.nz/OH386 Kerry Harty M 027 294 6215 E kjharty@harcourts.co.nz Peter Wylie (PGG Wrightson) M 027 473 5855 E pwylie@pggwrightson.co.nz

Te Awamutu 170 Aotearoa Road 97ha dairy farm in popular district This fertile 97 hectare (subject to survey) dairy farm is a great opportunity for first farm buyers. Infrastructure includes a 16 ASHB dairy shed with in-shed meal feeding system, concrete feedpad, implement and calf sheds. Recent production (2019) was over 78,000kgMS. Located in an area of consistent rainfall.

There’s an elevated three bedroom home with recently refurbished kitchen and living area plus a new double garage with sleepout. This well set up farm will suit an enterprising first farm owner or to be run as part of a larger operation.

bayleys.co.nz/2312727

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1

1

2

Asking Price $3,450,000 + GST (if any) View 11-11.30am Wed 15 Dec Sharon Evans AREINZ 027 235 4771 sharon.evans@bayleys.co.nz Stuart Gudsell AREINZ 021 951 737 stuart.gudsell@bayleys.co.nz SUCCESS REALTY LIMITED, BAYLEYS, LICENSED UNDER THE REA ACT 2008

www.blueribbonharcourts.co.nz

RURAL | LIFESTYLE | RESIDENTIAL

TENDER

REPOROA, BAY OF PLENTY 286 Jay Road Reporoa Dry Stock This versatile 272 hectares (more or less) mixed dry stock farm is very well located in the Reporoa district.

Having approximately 243ha effective, the balance if fenced out water courses. The farm carries 240 beef breeding cows, 55 heifers, 100 hinds and up to 800 sheep.

The property has two dwellings, the main homestead is four bedrooms, of a Lands and Survey style with a large veranda. The second is a modern double glazed Keith Hay dwelling of three bedrooms, master with en-suite.

Farm infrastructure comprises of an older three-stand wool shed, implement shed with lean-to, sheep and cattle yards plus a large deer shed. A silage pit is situated near the front flats.

Water for the dwellings is derived from a bore and farm water is via a spring pumped to storage tanks for gravity feeding to troughs.

Contours range from flat to medium rolling hill with some steeper outcrops.

Farms of this nature are seldom found in this location, register your interest for a viewing.

TENDER

Plus GST (if any) Closes 4.00pm, Friday 21 January

VIEW By Appointment Only

Graham Beaufill M 027 474 8073 E graham.beaufill@pggwrightson.co.nz

pggwre.co.nz/ROT35266 PGG Wrightson Real Estate Limited, licensed under REAA 2008

Helping grow the country

32

farmersweekly.co.nz/advertising 0800 85 25 80

Tech & Toys

FARMERS WEEKLY – December 13, 2021

0800 901 902

7 NORTH ISLAND AGENTS

www.pppindustries.co.nz sales@pppindustries.co.nz

Northland to Manawatu

10 SOUTH ISLAND AGENTS Nelson to Invercargill

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Require a feed system or an upgrade?

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INNOVATIVE AGRICULTURE EQUIPMENT

Primary Pathways – Jobs, Education & Training

JOBS BOARD

FENCER GENERAL Taumata Moana Station – Te Kuiti

farmersweeklyjobs.co.nz

Taumata Moana Station, a subsidiary of Steelfort Engineering Company Ltd, has a vacancy for a Fencer General. This is a full time position on a 3300ha coastal station situated 75kms west of Te Kuiti Taumata Moana has developed a ‘Farm Pride’ programme which encompasses all facets of highly motivated farming business with a culture of producing premium stock from top facilities.

Duties will include, maintenance and repair of existing post and batten and electric fencing, new fencing, potential to operate heavy machinery, General Workshop maintenance, Maintenance of the station water systems assistance with livestock duties during peak times and general farm duties Applicants should have the following: • A strong work ethic • Be honest and reliable • Be a team player • Display high quality workmanship • A clean, tidy ‘can do’ attitude • The ability to drive heavy machinery would be an advantage A 4-bedroom house with the normal range of outbuildings along with excellent employment package will be offered to the appropriate candidate. This position has all tools provided.

Ashburton Meat Processors Bovine Genetics Manager Casual Sale yard job

Our last Farmers Weekly publication for 2021 is December 20

Equity Contract Manager Farm Manager Fencer General Harvest Team 2022

Our office will be closed from 5pm

Labourer

December 20 and will reopen January 10 for our first publication of 2022

Shepherd General

on January 17.

Stock Manager

Contact Debbie on 06 323 0765

*FREE upload to Primary Pathways Aotearoa: www.facebook.com

or email classifieds@globalhq.co.nz for more information or to book

*conditions apply

Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz LK0105354©

Applications close Friday the 31st December Please apply in writing with all relevant details to: Mr Brent Gowler Station Manager, Taumata Moana Station, 767 Taumatatotara West Road, RD 8, Te Kuiti 3988 Phone: 07 8767422 or 027 220 2161 Email: tmsmanager@outlook.com

Agronomy

Noticeboard

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

THREE HEADING DOG pups. Ready to wean. Very well bred and reared. ONE 5-year old bitch. Suit small property. Phone 027 243 8541.

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

ATTENTION FARMERS FARM SITTING. Need a break? Retired farming couple with fully selfcontained caravan, available to look after dogs, chooks, etc. check / move livestock, water supply, mow lawns and any other light farming duties. Based in Taumarunui, willing to travel. Phone Tom 027 471 3493.

40c/50c PER KG dags fadges/bales.

Replacement woolpacks.

PV Weber Wools.

Kawakawa Road, Feilding. Phone 06 323 9550.

BALAGE FOR SALE 600 BALAGE UNITS available. $85 per bale.

Taihape. Phone 027 303 8956.

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

DOGS FOR SALE 2½-YEAR HEADING bitch, firm, nice type. 2½YEAR Huntaway bitch, good noise, nice type. 18 -MONTH Heading bitch, firm. 9-MONTH Huntaway dog. Phone 04 472 2351.

WORD ONLY ADVERTISING. Phone Debbie on 0800 85 25 80.

4-YEAR-OLD Huntaway bitch. Suits drystock / cattle work. Phone 022 698 8195.

6-MONTH WELL BRED Huntaway dog pup. Proven cross, won’t get better. $600. 027 591 1501.

BLACK CURLY COATED retriever puppies. Hunting parents. $2000.00 Nichole 021 025 50125.

HUGE SELECTION of Huntaways and Headers.

Deliver NZ Wide. 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.

FARM MAPPING SIMPLIFY YOUR farm planning with practical, affordable and accurate maps from www. farmmapping.co.nz – contact us for a free quote.

GIBB-GRO GROWTH PROMOTANT PROMOTES QUICK PASTURE growth.

Only $6+gst per hectare delivered. 0508-GIBBGRO [0508 442 247] www. gibbgro.co.nz. “The Proven One.”

GOATS WANTED

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule.

Experienced musterers available.

Phone Bill and Vicky Le Feuvre 07 893 8916.

GOATS WANTED. All weights. All breeds.

Prompt service. Payment on pick up. My on farm prices will not be beaten.

Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

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

LEASE LAND WANTED FOR BEEF CATTLE. Northland.

Long term.

Phone 09 436 3628 / 027 385 8209.

FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie on 0800 85 25 80 to book in or email wordads@ globalhq.co.nz

LOG BUYER HAULER CREW available for summer harvest.

Wairarapa area.

Phone 027 489 7036.

PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts.

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

CRAIGCO

SHEEP JETTERS SHEEP JETTERS SINCE 1992

CRAIGCO SENSOR JET

WANTED TO BUY HOUSES FOR REMOVAL. North Island. Phone 021 455 787.

SAWN SHED TIMBER including Black Maire.

Matai, Totara and Rimu etc. Also buying salvaged native logs.

Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954.

WHAT’S SITTING IN your barn? Don’t leave it to rust away! We pay cash for tractors, excavators, small crawler tractors and surplus farm machinery.

Ford – Ferguson – Hitachi – Komatsu – John Deere and more. Tell us what you have no matter where it is in NZ. You never know.. what’s resting in your barn could be fattening up your wallet!

Email admin@ loaderparts.co.nz or phone Colin on 0274 426 936 (No texts please)

WANTED TO LEASE EAST TARANAKI FARM LAND. Sheep and beef.

Phone 020 4018 9927.

0800 436 566

Selling something?

ZON BIRDSCARER

electro-tek@xtra.co.nz DE HORNER

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80.

NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....

STOP BIRDS NOW!

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

RAMS FOR SALE

PINNACLES WILTSHIRES 2th rams. Ph 06 346 6230, 027 416 8188.

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T HI N K PR EB U I L T

Robust construction. Auto shut gate. Adjustable V panels Total 20 Jets. Lambs 5 jets. Side jets for Lice.

Davey Twin Impeller Pump. 6.5 or 9.0 Hp motors

06 8356863 . 021 061 1800

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MOWER MASTER CHRISTMAS SALE 12HP, diesel, electric start, 50 ton Heavy duty construction for serious wood splitting. Towable.

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www.moamaster.co.nz Phone 028 461 5112 Email: mowermasterltd@gmail.com

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 0800 399 546 (EZYLINE) Web: www.ezylinehomes.co.nz

Travel further with Farmers Weekly Promote or find your next adventure in our Travel & Tourism section published monthly.

Next issue – December 20: Booking deadline Wednesday December 15 - 12 noon

To advertise your travel products and services contact: Debbie 06 323 0765 or email classifieds@globalhq.co.nz www.farmersweekly.co.nz

LK0107679©

DOGS FOR SALE

33

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ANIMAL HANDLING

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

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FARMERS WEEKLY – December 13, 2021

34

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

Livestock Noticeboard

FARMERS WEEKLY – December 13, 2021

SALE TALK

George, the farmer, had so many children that he ran out of names. So he started calling his kids after something around his farm.

BROOKBANK ROMNEYS ROMNEY STUD EWE SALE In conjunction with Ongarue Ewe Fair

It was the first day of school and the teacher asked each child their name.

Sign posted north of Taumarunui off SH 4

TUESDAY 18TH JANUARY 2022 11am Start

We will be offering on Account: EST. C E BREARS Approx. 200 Stud Romney Ewes (to be drafted) 80 Stud Romney 2th Ewes (to be drafted)

When he got to one of the farmer George’s sons, the boy replied, ‘Wagon Wheel.’

Brookbank Stud established mid 1970’s in Ongarue has consistently put out top Romney Rams and has in recent years been eczema testing to .5.

The teacher said, ‘I need your real name, boy, to which the lad replied, ‘It’s Wagon Wheel, sir....Really.’

These have been farmed on hill country west of Ongarue and are a good moderate open faced Ewe with a great conformation that will shift anywhere in NZ. He has used top Rams from Waiteika, Kikitango and Waimai Studs in recent years.

For further information please contact: LK0109943©

Alan Hiscox 027 442 8434 King Country Livestock Manager Brent Bougen 027 210 4698 NZFLL Stud Stock

The teacher, rather annoyed, rejoined, ‘All right young man, take yourself right down to the Principal’s office this minute.’

The youngster pushed himself out of his chair, turned to his sister and said, ‘C’mon, ‘Chicken Feed’, he ain’t gonna believe you, either.’

STOCK REQUIRED

"MAXIMISING YOUR RETURN THROUGH PERSONAL LIVESTOCK MANAGEMENT"

STOCK WANTED

28kg+ Store Lambs 260-350kg Friesian/Beef X Heifers Richard Seavill, Ph: 021 169 8276 280-300kg Friesian Bulls Large numbers of Cull Ewes Chris Kyle, Ph: 027 496 7412

YOUNG BREEDING EWES MA ANG COWS CAF 1YR BEEF BULLS 250-400kg 2YR BEEF BULLS 500kg+

STOCK FOR SALE

300 1YR BEEF & DAIRY X STEERS

Recorded Friesian Weaner Heifers Harrison Levien, Ph: 027 496 7410

300-350kg (Draft to Suit)

1YR FRSN BULLS 330-430kg

STOCK O SA E

110kg+ Weaner Friesian Bulls 320kg+ R1 Friesian Bulls Richard Seavill, Ph: 021 169 8276 45 x 420kg Angus Steers $3.30/kg Hereford/Friesian & Angus/Friesian Weaner Bulls & Heifers Chris Kyle, Ph: 027 496 7412

www.dyerlivestock.co.nz

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

70 x 330kg Friesian/Hereford Heifers $3.10/kg Bryce Young, Ph: 027 496 7411 0800 827 455 admin@byl.co.nz www.byllivestock.co.nz

Deer to be different this season

Are you sick of Facial Eczema?

With livestock advertising in the Farmers Weekly.

Contact Ella on 027 602 4925 livestock@globalhq.co.nz

Online Comprehensive Contracts

To talk with one of our dedicated livestock specialists call:

NZ FARMERS LIVESTOCK - SOUTH ISLAND

Ph:

0800 100 157

Regional Manager:

Regan Laughton

Sth Canterbury/Nth Otago

Mob: 027 440 6722 Ph: 03 436 0094

Agents:

Gareth Brooking Southland James Perkins Canterbury Jared Farquhar Ashburton Liam McKenzie Otago Matt Sanson Darfield Maurice Manson Temuka Peter Jackson Temuka Shelley Krieger Southland/Sth Otago Simon Harwood Ashburton

Mob: 027 285 6205 Pvt: 03 236 8173 Mob: 027 232 8052

Administrator: Sale Yards:

Temuka

Mob: Ph: Mob: Ph: Mob: Ph: Mob: Pvt: Mob: Pvt: Mob: Pvt: Mob: Ph: Ph: Ph:

027 757 4727 03 348 2360 027 520 1771 03 465 1500 027 556 9928 03 318 8826 027 433 4906 03 615 9813 021 922 462 03 615 8902 027 635 5990 03 418 1004 027 602 4454 03 351 1332 03 615 5147 03 615 9637

$1,750.00

Friesian In Calf Heifers

March 2022 Delivery Please Contact

January 2022 Delivery Please Contact

North Island Luke McBride 027 304 0533 Wayne Doran 027 493 8957 South Island Richard Harley 021 765 430 Greg Collins 027 481 9772

North Island Luke McBride 027 304 0533 Wayne Doran 027 493 8957 South Island Richard Harley 021 765 430 Greg Collins 027 481 9772

LK0109177©

LK0109932©

Auction

2021 Autumn Born Friesian Heifers

EXPORT WANTED

CRAIGNEUK

Annual on Farm Sale Friday 14th January 2022 On offer 280 Rams Made up of 200 Terminal Rams • Dorset Down X lambs growing 500 to 600 grams a day from birth to weaning • South Dorset Rams for quick maturity • SIL Recorded and Studfax • Autumn Scan 80 Maternal Halfbred and Quarterbred Rams Merino Ram/Romney Ewe MILK • WOOL • MEAT Bred to fit the Smartwool Contract 20-25 micron Grown in the harsh Maniototo climate

Enquiries to: Johnny Duncan 027 327 2372 or email: JDuncan.Craigneuk@xtra.co.nz

LK0109543©

Paddock

EXPORT WANTED

LK0109723©

At NZ Farmers Livestock we are committed to working with farmers for farmers, and we are dedicated to ensuring you get the best service and support for your business. We are 100% NZ owned and operated, and have a long-standing and established history in the livestock market.

Our new app provides you with a toolbox of possibilities when it comes to livestock trading on your mobile device - bid, buy and sell via our app today.

Download the new, FREE, MyLiveStock Farmer app, available now for free download in your app store.

To see these top breeders, visit www.fegold.co.nz

Livestock Noticeboard

FARMERS WEEKLY – December 13, 2021

t

Breeding the difference

39TH ANNUAL ELITE SIRE STAG SALE

Saturday 8th January 2022 @ 1pm CANE

841 IOA 22.14kg HA @ 5yrs

OFFERING TO INCLUDE SONS OF:

MUNRO

705 IOA @ 6yrs

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

KIKITANGEO ROMNEY STUD

PART 2 AND FINAL DISPERSAL SALE 19 January 2022 at 11.30am – Wellsford Sale Yards Approx. 70 top 2th Romney rams

FITZROY

700+ IOA 23.28kg HA 44 pts @ 6yrs

ANNUAL 15MNTH CATTLE SALE WAIPUNA VALLEY FARMS

3 top Romney sires

Friday 21st January, 12.30pm

ALSO HUNTER, APEX, ADIDAS, BRUSNIS, MCCAW, RIGBY.

Please note change of date.

Tuakau Saleyards.

Catalogues will be posted out in December

ALL ENQUIRIES: Barry Gard 021 222 8964 bgard@foverandeerpark.co.nz www.foverandeerpark.co.nz

Comprising 750 Cattle: • 340 Ang/Hfd Heifers • 160 Exotic Heifers (Devon & Simm) • 150 Charolais Heifers • 100 15Mnth Angus Steers • Farmed in large mobs on genuine hill country • Heifers guaranteed empty • Cattle in hand several days prior to sale • Trucked over 2 days • Cattle renowned for their shifting ability

This is a unique opportunity to purchase sheep which have taken a lifetime to breed.

• The best in the country for worm resistance – 34 years breeding. Their progeny will not require drenching where the Barbers’ Pole worm is not dominant • A high degree of FE tolerance • Structurally sound – excellent breed quality

Semen Available

Monday 10th January 2022 2754 Ihungia Road, Tokomaru Bay at 12 Noon

6500 Sheep / 900 Steers 2500 Romdale 2 Tooth Ewes 800 Coopdale 2 Tooth Ewes 2000 Perendale & Romdale 5 Year Ewes 1500 Romdale Crypto Lambs (27 to 32kg) 900 15mth Angus Steers (320 to 420kg) The Flock docked 152% to the Ram The Steers are Angus Pure Mc Neil Farming are NZFAP & GAP Accredited The Stock are Antibiotic Free 1.5% Rebate by arrangement. (Sign Posted) from Tokomaru Bay Lunch & Light refreshments provided Contact: Shane Scott 0274 956031 for further enquiries Full Details on our Website or Facebook Central Livestock Limited

Sire KIKI D316-16 – He will be sold. He is the second highest worm resistant ram in the country with DPF of over 1,000. Very limited number of semen straws available. Order now.

There is also still a number of semen straws available from KIKI G197-14 – sire of D316-16 and 3rd in the country for worm resistance – DPF 1,000+ More information on the website www.kikitangeo.co.nz shortly.

LK0109738©

6th Annual On Farm Sale

Check out Poll Dorset NZ on Facebook

Est 1922

250 plus 2th Romney ewes SCAN FOR CATALOGUE

35

David Short (Vendor) 07 826 7763 Stephen Hickey (PGW) 027 446 9969 Freephone 0800 10 22 76 | www.pggwrightson.co.nz Helping grow the country

Contact: Gordon Levet Tel 09 423 7034 | Greg Ward 021 423 326 Email: glevet5192@gmail.com PGG Wrightson: Cam Heggie – 027 501 8182 |Grant Palliser – 027 590 2201

NZ’s Virtual Saleyard

UPCOMING AUCTIONS

Tuesday 14th December 2021 7.00pm Arapawa Wiltshire Sale 7.30pm Tower Farms & Crowley Deer Combined Stag & Hind Sale

Wednesday 15th December 2021 1.00pm Peel Forest Estate, Forrester Sire Sale

Thursday 16th December 2021 7.00pm Spring Creek Selected South Suffolk Ram Sale

Friday 17th December 12.00pm Wharetoa Genetics Ram Sale

Regular Livestream coverage of five North Island Saleyards Head to bidr.co.nz to find out more. independent livestock agency

ON FARM LAMB & EWE SALES

ALBURY/FAIRLIE, SOUTH CANTERBURY WEDNESDAY 12 JANUARY, 2022

PLEASE NOTE - CHANGE OF DATE & TIME

OPAWA DOWNS 9TH ON FARM SALE 1299 Mt Nessing Road, Albury South Canterbury.

COMMENCING 12 Noon • 2000 Romney Cryptorchid Lambs • 2500 Black Face Mixed Sex Lambs • 700 CFA Ewes • 100 2th Motu-nui Romney Ewes Enquiries: Joe Higgins (PGGW) 027 4314 041 To be sold following above at DJ&AM IRVING, Albury • 1500 Coopdale Wether Lambs • 2500 Coopdale/Suffolk/Texel x Mixed Sex Lambs • 250 Coopdale Ewe Lambs • 400 Annual Draft Coopdale Ewes (All of the above are NZFAP & ABF Accredited)

Enquiries: Rod Sands (PGGW) 027 4314 043 Joe Higgins (PGGW) 027 4314 041 To be sold following Albury Sales RODWELL FARMING “ROCKLANDS” • 51 Tondros Road, Fairlie • 800 Suffolk x Mixed Sex Lambs • 1100 Romney/Texel Crypt Lambs • 1100 Romney/Texel Ewe Lambs • 450 Cull Ewes (The above lambs have had 2 - 5 in1 vaccinations and one oral drench prior to sale. All lambs will be outside of all with holding periods)

Enquiries: Joe Higgins (PGGW) 027 4314 041 George Mannering (Hazlett) 027 4620 182

Livestock Advertising? Call Ella: 0800 85 25 80

Helping grow the country

MARKET SNAPSHOT

36

Market Snapshot brought to you by the AgriHQ analysts.

Mel Croad

Suz Bremner

Reece Brick

Fiona Quarrie

Hayley O’Driscoll

Caitlin Pemberton

Deer

Sheep

Cattle BEEF

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.35

6.35

5.20

NI lamb (17kg)

9.30

9.30

6.90

NI Stag (60kg)

6.90

6.90

5.65

NI Bull (300kg)

6.40

6.40

5.15

NI mutton (20kg)

6.50

6.50

5.00

SI Stag (60kg)

6.85

6.85

5.65

NI Cow (200kg)

4.90

4.90

3.80

SI lamb (17kg)

9.00

9.00

6.80

SI Steer (300kg)

6.10

6.10

4.80

SI mutton (20kg)

6.60

6.60

4.90

SI Bull (300kg)

6.00

6.10

4.80

Export markets (NZ$/kg)

SI Cow (200kg)

4.75

4.75

3.55

UK CKT lamb leg

13.69

13.67

9.01

US imported 95CL bull

10.25

10.19

7.10

US domestic 90CL cow

10.25

8.91

6.42

Slaughter price (NZ$/kg)

Last week Prior week

Last year

Export markets (NZ$/kg)

7.0

5.0

8.0 7.0

10.0 $/kg CW

South Island lamb slaughter price

9.0 8.0

9.0

6.0

8.0

5.0

South Island steer slaughter price

7.0

7.0

Oct

Dec

Feb

5-yr ave

Apr

Jun

Aug

2020-21

2021-22

6.0 5.0

6.0

Oct

Dec 5-yr ave

5.5 5.0

WOOL

4.5

(NZ$/kg)

4.0

South Island stag slaughter price

11.0

4.5

6.5 $/kg CW

7.0

10.0

7.0

Feb

Apr 2020-21

Dec

Feb

Apr

Jun

Aug

2020-21

Dairy

2021-22

Jun

Fertiliser

Aug 2021-22

FERTILISER Last week

Prior week

Last year

2.64

2.68

2.07

37 micron ewe

-

2.10

30 micron lamb

-

-

Coarse xbred ind.

Oct

5-yr ave

Last week

Prior week

Last year

Urea

1190

1190

607

1.85

Super

368

368

300

-

DAP

1308

1308

799

Grain

Data provided by

MILK PRICE FUTURES

CANTERBURY FEED WHEAT

Company

$/tonne N …

…

S

J…

…

M

…

J…

M

Sept. 2022

DAIRY FUTURES (US$/T) Nearby contract

Prior week

vs 4 weeks ago

WMP

4100

4135

3925

SMP

3650

3650

3500

5985

5985

5985

Butter

5250

5250

4900

Milk Price

9.02

8.95

4.8

9.94

4.45

7.84

8.34

6.65

99.78

64.85

420 400

Spark New Zealand Limited

4.43

4.97

4.35

Mercury NZ Limited (NS)

5.92

7.6

5.7

Contact Energy Limited

7.81

11.16

6.6

Ryman Healthcare Limited

12.08

15.99

11.81

360

Infratil Limited

8.1

8.465

6.74

340

Fletcher Building Limited

7.08

7.99

5.67

Jan-21

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Listed Agri Shares Company

5pm, close of market, Thursday Close

YTD High

YTD Low

ArborGen Holdings Limited

0.25

0.335

0.161

The a2 Milk Company Limited

5.98

12.5

5.39

Comvita Limited

3.42

3.8

3.06

440

Delegat Group Limited

14.2

15.5

12.9

420

Fonterra Shareholders' Fund (NS)

3.7

5.15

3.5

400

Foley Wines Limited

1.57

2.07

1.45

380 360

Livestock Improvement Corporation Ltd (NS)

1.4

1.4

0.81

Marlborough Wine Estates Group Limited

0.24

0.65

0.23

New Zealand King Salmon Investments Ltd

1.38

1.72

1.35

340

PGG Wrightson Limited

4.4

4.56

3.11

Rua Bioscience Limited

0.39

0.61

0.37

Sanford Limited (NS)

4.89

5.51

4.3

Scales Corporation Limited

5.47

5.76

4.22

Nov-20

WMP FUTURES - VS FOUR WEEKS AGO

27.1

Meridian Energy Limited (NS)

90.8

460

* price as at close of business on Thursday

YTD Low

Auckland International Airport Limited

480

8.63

36.55

Mainfreight Limited

Nov-20

$/tonne

AMF

YTD High

32.1

440

CANTERBURY FEED BARLEY

Last price*

Close

Fisher & Paykel Healthcare Corporation Ltd

460

380

Sept. 2021

NZ average (NZ$/t)

Top 10 by Market Cap

480

9.50 9.00 8.50 8.00 7.50 7.00 6.50 6.00 5.50

N …

$/kg MS

8.0

5.0

4.0

Jan-21

Mar-21

May-21

Jul-21

Sep-21

Nov-21

WAIKATO PALM KERNEL

Seeka Limited

5.24

5.68

4.66

4400

450

Synlait Milk Limited (NS)

3.33

5.24

2.85

T&G Global Limited

2.95

3.08

2.85

4200

400

S&P/NZX Primary Sector Equity Index

13974

15491

12865

350

S&P/NZX 50 Index

12772

13558

12085

4000

S&P/NZX 10 Index

12451

13978

11776

$/tonne

US$/t

9.0

6.0

5.0

5.5

Last year

10.0

6.0

6.0

$/kg CW

$/kg CW

6.5

Last week Prior week

North Island stag slaughter price

11.0

9.0 $/kg CW

North Island steer slaughter price

North Island lamb slaughter price

10.0

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Sarah Hilhorst

Ingrid Usherwood

3800 3600

300 250

Dec

Jan Feb Latest price

Mar

Apr 4 weeks ago

May

200

Nov-20

S&P/FW PRIMARY SECTOR EQUITY

Jan-21

Mar-21

May-21

Jul-21

Sep-21

Nov-21

13974

S&P/NZX 50 INDEX

12772

S&P/NZX 10 INDEX

12451

37

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

Analyst intel

WEATHER

Overview The week ahead starts out very muggy and humid for the North Island, thanks to a northeasterly airflow feeding down from the sub-tropics. This may result in unstable conditions for the upper North Island this afternoon and perhaps some inland parts of the South Island. On Tuesday a front pushes in from the west, bringing rain to many regions, then the front gradually moves out to the west on Wednesday, with rain then easing to showers. Thursday and Friday a tropical cyclone looks to potentially affect the North Island and will be something to keep an eye on, at this stage it may brush northeastern parts of the North Island moving down and away to the southeast.

14-day outlook Most of this week for the North Island is very humid and muggy thanks to a northerly quarter airflow feeding in from the sub-tropics. Temperatures will be warm too and some reasonable rain can be expected. The South Island isn’t so muggy, but still gets a few showers from time to time and some rain, especially on Tuesday. The North Island may have a brush with an ex-tropical cyclone on Friday, then afterwards humid weather will be pushed out of the way as southwesterlies move in. Saturday the airflow comes in from the southwest, then it becomes very settled, with an anticyclone moving in on Sunday. Mid next week another low may move down from the sub-tropics, bringing some rain, especially in the north.

Hayley O’Driscoll hayley.odriscoll@globalhq.co.nz

W

Soil Moisture

Highlights

09/11/2021

Wind

We start out with no issues regarding wind for the first half of this week, then northeasterlies may look to be blustery in the north and northeast of the North Island early on Wednesday.

Overnight Thursday and into Friday as an ex-tropical cyclone looks to pass by the North Island, winds could potentially be very strong – it will depend where this low will track, but northeastern parts of the North Island may be somewhere to keep an eye on.

Source: NIWA Data

7-day rainfall forecast Showers spring up about many inland parts of both Islands on Monday – showers could become heavy with a chance of thunder, especially for the upper North Island and perhaps Central Otago. Rain moves in overnight starting in the west and affects many regions on Tuesday – expect heavy rain for Nelson.

Rain may be very heavy in the north on Wednesday, but conditions further south will have eased.

Thursday we become mainly dry, then there is the chance of some heavy rain for northeastern parts of the North Island on Friday.

0

5

10

20

30

Weaker dollar has its benefits

Temperature

Overnight lows may not drop below 20degC for parts of Northland and Auckland this week and very humid conditions will make it feel rather muggy. Thursday highs may become very warm for a time in the mid- to late-20s. The South Island is a bit cool Tuesday through to Friday, although the lower South Island on Tuesday sees temps reach into the low to mid-20s.

HEN the Reserve Bank increased the OCR on November 24 to 0.75% (up 25bp) it would have been natural to expect the NZ dollar (NZD) to strengthen.

However, since the announcement the dollar has fallen against its major trading partners.

Before the OCR announcement some market participants had been expecting the Reserve Bank to hike the OCR by 50bp, and this had already been priced into the NZD. Then, when the announcement was lower than expected, the NZD was sold off causing it to weaken.

Currency volatility has been high recently and is expected to stay that way for a while as central banks navigate varying economic recoveries, inflation outlooks and surging covid-19 cases in some parts of the world. Recent news of the Omicron variant of covid-19 caused a market sell-off of riskier assets such as global equities, commodities and riskier/ commodity sensitive currencies, which includes the NZD. This has caused the NZD to weaken further as market participants flock to safer investments during a time of fear and uncertainty.

In recent weeks the US dollar (USD) has strengthened against global currencies, also placing downward pressure on the NZD:USD. With US inflation having reached a 30-year high of above 6%, there are indications that the Fed may accelerate the pace of unwinding stimulus in order to raise interest rates earlier than expected next year. This caused the NZD:USD

exchange rate to drop to a low for the calendar year of 0.675 on December 4.

This is 9.2% lower than the high of 0.744 reached back in February.

The NZD has also fallen against the British pound and the Euro on the back of the Reserve Bank’s decision.

Last week the media came out with news that although the Omicron variant is very contagious, it is showing signs that it is not as severe as some had feared. While more research still needs to be done to confirm this, the news has caused money to flow back into riskier assets, including the NZD. The Australian dollar (AUD), which is also seen as a riskier/commodity sensitive currency, has outperformed the NZD on this news. The Reserve Bank of Australia also announced it would keep interest rates steady and signalled a positive outlook for its economic recovery despite the Omicron variant and this has helped strengthen the AUD. NZ’s decision to hike interest rates earlier than other central banks has not had a positive effect on the NZD as most would have expected. Covid-19 remains a strong factor in determining exchange rate movements.

However, this is good news for farmers.

With sheep and beef exports beginning to ramp up in line with the peak killing season, a weaker NZD at this crucial time of the year is beneficial. The combination of higher in-market prices and a NZD trading below US70c means higher returns in NZD terms, which should continue to provide support to farm gate prices. This time last year the NZD was averaging US71c and continued to climb as export volumes lifted, negating much of the benefit of rising in-market values and casting a shadow over farm gate prices.

Highlights/ Extremes

40

50

60

80

100

200

400

An ex-tropical cyclone moves in near the North Island at the end of this week, with strong winds and heavy rain potential. Isolated heavy falls are possible on Monday about the upper North Island, heavy rain for Nelson on Tuesday, then Wednesday holds the potential for heavy rain in the North Island again.

WEAKER: The NZD has lost ground on other currencies.

Weather brought to you in partnership with WeatherWatch.co.nz

Don’t let it rain on your parade.

Next time I’ll check WeatherWatch

Plan your day with WeatherWatch and get New Zealand’s most accurate rain forecasting available across the country, anytime.

DAILY FORECAST

www.weatherwatch.co.nz

38

SALE YARD WRAP

Prime prices hit by processors Processor space is at a premium for most classes of stock and that has had a direct impact on prime cattle at auction. Most yards peaked in early November for steers, though Frankton was the last few weeks of October at $3.38-$3.40/kg. Peaks were commonly found in the $3.33-$3.43/kg range, with Frankton reaching an average of $3.40/kg and Coalgate taking top spot for South Island sale at $3.36/kg. As the pressure has come on at the processors and schedules have been pulled back, values have fallen and over the last two weeks $3.00-$3.15/kg has been common, though small entries at Taranaki have managed to hold around $3.22/kg. The boner market has moved in a similar fashion, peaking at $2.41-$2.65/kg and $2.73/kg at Coalgate mid-November, but over recent weeks falling away to $2.03-$2.11/kg at most yards.

NORTHLAND Kaikohe cattle • Two-year heifers held at $3.00-$3.10/kg • Weaner Friesian bulls, 110kg, achieved $450-$460 • Yearling whiteface heifers made $3.20/kg • Good yearling steers earned $3.30-$3.40/kg • Heavier boner cows sold at $1.80/kg to $2.00/kg The market was firm for the 500 head offering at KAIKOHE last Wednesday, PGG Wrightson agent Vaughan Vujcich reported. Nice 2-year Hereford-Friesian steers, 520-540kg, reached $3.20-$3.30/kg and the next cut $3.10$3.15/kg. A nice line of 75 autumn-born weaner straight Angus steers were able to reach $3.90/kg to $4.25/kg, $1000-$1100 and their sisters $2.95/kg to $3.20/kg.

Wellsford store cattle • Better 2-year Hereford-Friesian steers, 395-426kg, reached $3.36$3.41/kg • Yearling Angus and Angus-Friesian steers, 355-401kg, improved to $3.42-$3.54/kg • Yearling Hereford-Friesian steers, 323-384kg, eased to $3.37$3.45/kg • Yearling Angus-Friesian heifers, 260-369kg, held at $2.94-$3.03/kg Just over 930 cattle were presented at WELLSFORD last Monday as vendors lighten the load at home. Two-year Hereford-Friesian steers, 418-520kg, softened to $3.10$3.24/kg. Traditional bulls were consistent at $2.91-$2.92/ kg. The balance of yearling Angus-Friesian steers, 327378kg, softened to $3.28-$3.37/kg. Hereford-Friesian, 266-320kg, mostly held at $3.42-$3.53/kg while same breed heifers, 280-348kg, eased to $2.88-$2.97/kg and the balance $2.70-$2.80/kg. Friesian bulls, 225-364kg, returned $730-$1055 with the heavier end at $2.90-$2.92/kg. Weaner Hereford-Friesian steers, 106-145kg, fetched $605-$685 and same breed heifers, 88-108kg, $495-$570. Read more in your LivestockEye.

AUCKLAND Pukekohe cattle • Medium 20-month heifers earned $2.67/kg to $2.84/kg, $1140$1230 • Medium 15-month heifers made $2.85/kg to $3.39/kg, $800-$980 • Medium 15-month steers fetched $2.97/kg to $3.26/kg, $765$1070 • Boner cows realised $2.12/kg to $2.51/kg, $1440-$1815 Prime steers held at $2.96/kg to $3.15/kg, $1660-$2040 at PUKEKOHE on Saturday 4th while heifers firmed to $3.02/ kg to $3.14/kg, $1600-$1700. Small weaner steers achieved $510-$600 and whiteface heifers traded at $500-$510.

COUNTIES Tuakau sales • Angus steers, 320kg, made $1080 • Service bulls managed $2.90 to $3.26/kg • Heavy prime ewes realised $163-$241 Store cattle prices eased slightly last Thursday, PGG Wrightson agent Craig Reiche reported. The 500-head yarding included 456kg Hereford-Friesian steers, returning $3.13/kg, with 446kg Angus at $2.98/kg and 375kg HerefordFriesian, $3.16/kg. Younger Hereford-Friesian steers, 208kg, earned $790. The sale drew a good line-up of HerefordFriesian heifers, with 366kg making $2.95/kg and 328336kg, $3.14-$3.19/kg. Hereford heifers, 323kg, managed $2.96/kg and 212kg Hereford-Friesian, $760. Prime steer and heifer prices eased 15c/kg on Wednesday. Medium to heavy steers made $2.80-$2.96/kg, same condition heifers returned $2.83-$2.90/kg and light, $2.60/kg to $2.88/ kg. Medium-heavy boners fetched $1.71 to $2.30/kg. At Monday’s sheep sale, medium-heavy prime lambs sold from $121 to $185 and medium ewes, $130-$163. Tuakau’s lamb fair on December 3 drew a yarding of 5700 head.

Heavy lambs sold from $150 to $224 and Southdown-cross rams weighing over 50kg took top honours. Medium lambs made $95-$137 and light, $40-$95.

WAIKATO Frankton cattle 7.12 • Two-year steers, 448-505kg, realised $2.90-$3.00/kg • Yearling Hereford-Friesian steers, 305-350kg, earned $3.17-$3.26/ kg • Quality yearling Belgian Blue-cross heifers, 306-308kg, fetched $3.20-$3.21/kg Store throughput lifted slightly to 564 head for PGG Wrightson’s yarding at FRANKTON last Tuesday. Top end 2-year Hereford-Friesian heifers, 433kg, held at $2.89/ kg while 383-420kg softened to $2.61-$2.62/kg. Yearling Angus-Friesian steers, 312-428kg, realised $2.94-$3.09/ kg. Dairy-beef heifers, 313-355kg, mainly held at $3.04$3.10/kg but those under 300kg could not break the $3/kg mark. Friesian bulls, 277-311kg, softened to $2.87-$2.88/ kg. Prime steers, 551-711kg, softened to $3.02-$3.12/kg and most heifers, 466-516kg, eased to $2.89-$2.97/kg. Most bulls eased and $3.15-$3.29/kg was common for those over 500kg though Friesian, 489-523kg, managed $3.05-$3.14/ kg. Read more in your LivestockEye. Frankton cattle 8.12 • Two-year Hereford-Friesian steers, 400-459kg, earned $2.86$2.96/kg • Yearling Hereford-Friesian steers, 283kg, held at $3.39/kg • Yearling Friesian bulls, 258kg, realised $3.10/kg Just over 300 store cattle were penned at FRANKTON last Wednesday by New Zealand Farmers Livestock and most traded on a softer market. Two-year Friesian bulls, 482kg, realised $2.90/kg. Yearlings made up over 70% of the offering and most steers, 258-354kg, traded at $2.91-$3.03/ kg. Dairy-beef heifers, 269-372kg, softened to $2.75-$2.99/ kg. Good prime exotic-cross and dairy-beef steers, 532613kg, held at $3.01-$3.03/kg while the balance softened.

Dairy-beef heifers, 454-456kg, eased to $2.72-$2.85/kg.

Friesian bulls, 537-581kg, realised $3.02-$3.10/kg. All prime cows, 418-524kg, earned $2.22-$2.29/kg. Boner Friesian cows, 533-595kg, held at $2.23-$2.25/kg while 541-613kg eased to $1.98-$1.99/kg. Read more in your LivestockEye.

KING COUNTRY Taupo cattle • A special entry of 33 R2 Angus heifers, 331kg, returned $3.14/kg • Better yearling Hereford-Friesian heifers traded at $3.06-$3.13/kg • Weaner dairy-beef weaner heifers above 200kg fetched $520$540 • Weaner Hereford-Friesian bulls, 117kg, sold well at $615 There were 320 cattle offered at the TAUPO cattle sale last Thursday. Quality was mixed though the market was solid. The lion’s share of 2-year steers achieved $3.05-$3.14/ kg and dairy-beef heifers returned $3.02-$3.04/kg. Yearling Hereford-Friesian steers, 370-393kg, realised $3.08-$3.11/ kg, $1150-$1210 and 329kg Red Devon-cross was able to reach $3.21/kg, $1055. Read more in your LivestockEye.

BAY OF PLENTY Rangiuru cattle and sheep • Heaviest Hereford-Friesian steers, 588kg, collected $2.93/kg • Ten well-finished Hereford bulls, 560kg, fetched top money at $3.04/kg • Yearling Murray Grey-cross steers, 290kg, traded at $3.34/kg • Store Dorset-cross lambs earned $110.50 The prime market dropped 20-30c/kg across all groups at RANGIURU last Tuesday. Angus-cross and Herefordcross steers, 760-794kg, returned $2.77-$2.78/kg. HerefordFriesian, 460-476kg, made $2.87-$2.92/kg. Heifers of the same type, 458-572kg, traded at $2.58-$2.67/kg. Boner Friesian cows, 495-550kg, averaged $1.62/kg and heaviest, 626kg, earned $2.01/kg. Two-year Hereford-Friesian steers, 408-422kg, made $2.87-$2.94/kg. The stars were yearling Angus steers and heifers from one vendor of which steers, 314-338kg, earned $3.31/kg and heifers, 285-326kg, made $3.05-$3.13/kg. Better Hereford-Friesian heifers, 353kg, fetched $3.12/kg. Smaller store lambs made $80. Top prime

lambs received $144-$154. The average return for ewes was $137.50. Read more in your LivestockEye.

POVERTY BAY Matawhero cattle • Two-year traditional steers, 380kg, traded at $3.37/kg • Two-year Speckle Park heifers, 305kg, realised $3.25/kg • Most yearling steers were 270-350kg and varied from $3.40/kg to $3.60/kg • Yearling Charolais-cross steers, 340kg, sold well at $3.46/kg, $1175 • Yearling Angus bulls, 210-275kg, fetched $3.47-$3.57/kg, $750$970 There was just over 1300 cattle at MATAWHERO last Tuesday, and overall the market eased. Quality was mixed in places, and there were some lighter weights as farmers looked to clean up prior to Christmas. Yearling cattle made up the bulk of the yarding at around 900 head. Traditional steers came back an average of 18c/kg or $60 per head. The yearling traditional heifer average firmed to $3.28/kg. The 2-year steer average eased to $2.98/kg and heifers mostly $2.79-$2.87/kg. Read more in your LivestockEye. Matawhero sheep • Prime ram hoggets made $280 • Prime ewes earned $128-$130 • Mixed-age Coopworth store ewes fetched $137 Heavy prime lambs eased at MATAWHERO with the best to $181, medium $142-$165 and light $130. Store male lambs traded at $105-$107. Better blackface ewe lambs sold at $105 with the next cut $90. Read more in your LivestockEye.

TARANAKI Taranaki cattle • Good 2-year steers lifted to $3.30/kg to $3.47/kg • Two-year hill country Friesian bulls, 358kg, achieved $2.96/kg • Prime steers held at $3.18-$3.23/kg, and heifers $3.05-$3.09/kg Good rainfall boosted enthusiasm at TARANAKI last Wednesday. The focus was on yearling steers which made up over half of the yarding. The top end had a significant improvement compared to the previous sale. Speckle Park-cross, 334kg, demonstrated their usual popularity at $3.41/kg, and the next cut around $3.20-$3.30/kg. Yearling Charolais-Angus heifers, 235kg, met good demand at $3.26/kg, while most sold in a range of $2.91/kg to $3.03/ kg. Two-year heifers were limited to Hereford-Friesian and Hereford-Jersey at $2.68-$2.73/kg. Read more in your LivestockEye.

HAWKE’S BAY Stortford prime sheep • Top end mixed-age ewes held at $182 while the balance of heavy types eased to $173 • Most light ewes maintained levels of $90-$96 • Top mixed-sex lambs reached $223-$226 • Good mixed-sex lambs improved to $160-$168 Ewes numbered 2448 at STORTFORD LODGE last Monday and most traded on a softer market. Most good mixed-age ewes softened to $153-$158.50 though a small top end held at $167.

Medium to good ewes were discounted to $115-$141 and light-medium eased to $100, as did tail end types at $60$77.50. Just 230 lambs were offered. A handful of very heavy ewe lambs realised $200 while limited heavy ram lambs settled for $150-$185.

Read more in your LivestockEye. Stortford Lodge store cattle and sheep • Two-year Angus and Angus-Hereford steers, 452-470kg, eased to $3.12-$3.13/kg • Yearling Angus steers, 348kg, sold for $3.29/kg and heifers, 286kg, $3.32/kg

39

FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021

$2.20/kg. Read more in your LivestockEye. Feilding store cattle and sheep • Two-year traditional steers, 475-560kg, were $3.30-$3.40/kg • Big lines of 360-420kg traditional yearling steers made $3.30$3.45/kg • Yearling Friesian bulls, 335-410kg, sold for $3.10-$3.15/kg • Store lambs averaged $119 Only 900 cattle were yarded. Two-year dairy-beef steers, 445-505kg, were $3.15-$3.30/kg while 380-475kg 2-year Angus heifers were $3.10-$3.25/kg. Yearling dairy-beef steers, 275-340kg, were $3.10-$3.30/kg, though many were mixed-marked. Large lines of 350-415kg yearling Angus bulls made $3.20-$3.35/kg. Well-marked yearling heifers, 270-345kg, made $3.25-$3.45/kg.

There was much more life about the 9000 lambs sold.

Good-type lambs were mostly $130-$145, mediums $110$130, the lighter-end $90-$110, with a few tail-enders $70$80. The few shorn lambs generally received premiums of around $5.

Read more in your LivestockEye. Rongotea cattle • Two-year Angus-cross steers, 598kg, made $3.13/kg • Two-year Hereford-bulls fetched up to $3.35/kg and 455kg Friesian realised $2.75/kg • Yearling Hereford-Friesian steers, 223-340kg, achieved $2.97/kg to $3.42/kg • Yearling Hereford-Friesian heifers, 187-328kg, traded at $2.64/kg to $2.80/kg • Yearling Friesian bulls, 234kg, returned $2.54/kg to $2.99/kg A good yarding of owner bred Hereford-Friesian steers and heifers encouraged some new faces to RONGOTEA last Tuesday, New Zealand Farmers Livestock agent Darryl Harwood reported. Two-year Hereford-Friesian steers, 470-675kg, made $2.74-$2.83/kg and 459kg heifers $2.96/ kg. Weaner bulls sold at $360-$510 and heifers $380-$510.

Boner Friesian cows, 498kg, made $1.85/kg and Anguscross $2.23/kg.

CANTERBURY NUMBERS: Temuka had a second run of selling calves and a volume of more than 3500 dictated a two-day sale.

• Medium blackface mixed-sex lambs firmed to $96-$107 • Light whiteface ewe lambs sold for $65.50-$75 A quiet day at STORTFORD LODGE last Wednesday consisted of 170 cattle and 1500 sheep. One vendor offered up most yearling dairy-beef heifers and at 220-271kg they varied from $2.64/kg to $3.00/kg. Two-year Shorthorn-cross from the same vendor were sex-drafted and steers, 457kg, returned $3.36/kg and heifers, 402kg, $3.00/kg. A reduction in lamb volume helped the market and prices firmed. Good cryptorchid reached $118 and top mixed-sex $116-$145.

One line of 115 hoggets and 114 lambs sold for $101 all counted. Read more in your LivestockEye.

MANAWATŪ Feilding prime cattle and sheep • One Friesian steer, 570kg, earned $2.88/kg • Bulls, Angus weighing 640kg and Charolais at 750kg, both fetched $3.29/kg • A Speckle Park-Friesian cow, 730kg, returned $2.24/kg • Heavy boner cows, 710-730kg, collected $2.30-$2.32/kg Sheep sold on a steady market after recent drops at FEILDING last Monday. A small yarding of lambs had only 12 significant pens of which the heaviest two fetched $185.

A decrease in ewe numbers aided the market to hold.

Top lines received $189-$191 while half were medium at $122-$151. Steers, all 520-595kg, generally earned $2.81$2.85/kg. Dairy-beef heifers, 458-480kg, made $2.77-$2.85/ kg. A pair of Simmental bulls, 730kg, had an average return for their group of $3.02/kg. Lighter cows, 375-405kg, made $1.82-$1.87/kg and 475kg-603kg mostly earned $2.11-

Canterbury Park cattle and sheep • Six Speckle Park-cross heifers, 447-535kg, fetched $3.10-$3.19/kg • A Shorthorn-cross cow, 615kg, collected $2.48/kg • Heaviest prime lambs made $239 Prime cattle had a 10c/kg drop at CANTERBURY PARK last Tuesday in line with schedule changes. Better beefcross steers fetched $3.08-$3.17/kg and well-finished Hereford-Friesian traded at $3.00-$3.10/kg. Heifers of the same type mostly returned $2.95-$3.05/kg. Cows were consistent and nearly all made $2.24-$2.30/kg.

Bulls generally earned $2.96-$3.06/kg but Angus collected $3.11-$3.14/kg. Stores were limited to yearlings and Angus-cross steers, 378kg, made $2.60/kg. Store lambs doubled in volume and the market firmed 10c/kg. Medium types traded at $116-$131.

Smaller halfbred lambs from Marlborough returned $77-$79 and the heavier line pushed to $88. Prime lamb moved down $10. Quality was also down and half earned $129-$155. Ewes generally lifted $5, heavier types more, as traders support the market.

Read more in your LivestockEye. Coalgate cattle and sheep • Two-year purebred Angus steers, 483kg, fetched $3.33/kg • Yearling Angus-Hereford heifers, 284kg, made $3.19/kg • Six Limousin-cross heifers, 518kg, earned $3.19/kg • Seven top ewes returned $240-$242 There were more cattle for store buyers to pick from at COALGATE last Thursday. Heavier 2-year Charolais-cross and Angus-cross steers, 404-414kg, collected $3.14-$3.16/ kg. Beef-cross heifers, 406-421kg, traded at $2.92-$2.98/ kg. Yearling Angus-Hereford steers from Amberley, 292kg, returned $3.25/kg. Nice Hereford-Friesian mostly made $2.81-$2.85/kg but one pen, 295kg, pushed to $3.02/kg.

Heifers of the same type, 288-386kg, earned $2.60-$2.69/kg.

Prime steers softened as beef-cross collected $3.10-$3.16/ kg and top Hereford-Friesian traded at $3.13/kg. Their sisters, 476-570kg, fetched $3.00-$3.08/kg. Prime lamb lifted $5-$10 as heavy types earned $200-$218 and two pens reached $239. Ewes held and good types collected $180$216. Top store lambs made $137 while crossbred types from Cheviot had returns in the early 80’s.

Read more in your LivestockEye.

SOUTH-CANTERBURY Temuka prime and boner cattle, all sheep • Better prime heifers eased to $3.10-$3.19/kg • Boner Friesian cows eased to an average of $1.99/kg • Heavy prime lambs softened $5-$10 to $200 The top end of the prime steers was on par with the previous sale at TEMUKA last Monday. Better dairy-beef lines reached $3.16-$3.21/kg and beef types up to $3.25/ kg while lesser quality types sold in a wide range. Good yielding bulls continued to sell on a strong market with the best at $3.25-$3.36/kg and the next cut $3.10-$3.20/ kg. Another good yarding of store lambs had 1600 penned.

Average weights were up which brought returns down 10c/ kg. Heavy types typically made $156-$159. Across the board medium types were $122-$136. Ewes sold on a similar platform though condition was back, and the best return was $205. Read more in your LivestockEye. Temuka store cattle • Two-year Charolais steers, 413-471kg, fetched $3.10-$3.12/kg • Yearling Hereford-Friesian steers, 295kg, collected $3.17/kg • Yearling Hereford-Friesian heifers, 196kg, made $2.99/kg Most sections sold on a steady market at TEMUKA last Thursday and buyers came from North Otago to Canterbury. Older steers were the only section to drop 5-10c/kg. Hereford, 321kg, earned $2.99/kg and the best Hereford-Friesian, 429-459kg, made $3.11-$3.12/kg.

Beef heifers traded at $2.95-$3.04/kg and the heaviest Hereford-Friesian, 396kg, reached $3.05/kg.

Others of the same type ranged from $2.60/kg to $2.90/kg.

Yearling Angus steers, 310-319kg, earned $2.52-$2.54/kg.

Better Hereford-Friesian mostly returned $2.97-$3.08/kg.

Angus-Friesian all weighed 284-325kg and collected $2.88$2.89/kg. Heifers recovered from their dip of the previous week as the market lifted 5-10c/kg. Well-marked HerefordFriesian, 304-360kg, generally traded at $2.80-$2.88/kg.

Read more in your LivestockEye.

SOUTHLAND Lorneville cattle and sheep • Heavy prime ewes eased to $170-$184, medium $134-$160 and light $100-$130 • Local trade rams fetched $60-$80 • Prime 2-tooth ewes earned $148 • Boner cows above 500kg softened to $2.00/kg to $2.20/kg • Two-year beef-cross steers and heifers, 420-464kg, achieved $1140-$1350 Heavy prime lambs firmed to $180-$200 at LORNEVILLE last Tuesday with medium at $145-$166 and light $100$140. Top store lambs held at $120-$130, medium $110$115 and light $95-$105.

Prime steers above 580kg eased to $3.00/kg and 465555kg heifers, $3.00-$3.05/kg. In the store pens, yearling Hereford-cross steers, 228-339kg, realised $750-$880.

Weaner Friesian bulls, 107kg, made $320, and Herefordcross bulls $450-$510.

Charlton sheep • Prime hoggets made $120-$180 • Prime ewes improved with heavy types up to $180-$200, medium $145-$170 and light $80-$135 • Local trade rams fetched $40-$100 New season prime lambs firmed to $165-$170 at CHARLTON with medium at $145-$155 and light $115$130. Top store lambs made $100-$110 and the balance $75-$98.

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Markets

40 FARMERS WEEKLY – farmersweekly.co.nz – December 13, 2021 NI STEER

SI BULL

SI LAMB

($/KG)

($/KG)

($/KG)

6.35

6.00

9.00

AVERAGE STORE LAMB PRICE AT CANTERBURY PARK ($/HD)

102

Record milk price is now baked in Hugh Stringleman

T

hugh.stringleman@globalhq.co.nz

HE penultimate Global Dairy Trade (GDT) auction for 2021 cemented in the high, probably record, farm gate milk price, close to $9/ kg milksolids.

Seven months into the current dairy season, commodity prices are strong and stable, the exporters have sold forward and have hedged their currency transactions.

ASB analyst Nat Keall says that at this point of the season a record milk price was more or less guaranteed and that every GDT auction in which whole milk powder (WMP) prices simply hold the gains they have already made supports that prospect.

His forecast remains at $8.75, accompanied with an upside risk.

The GDT index rose 1.4%, its eighth consecutive rise over four months, and it is now at a record level for the past seven years, going back to March 2014.

Within the index, WMP prices rose 0.6% and the average value now sits just about US$4000/tonne.

Skim milk powder prices are not far behind, sitting at US$3721, up 25% since July.

Butter and anhydrous milk fat (AMF) rose in price by 4.6% and 3% respectively, and AMF is up 50% over the past 12 months, now US$6668.

Westpac dairy analyst Nathan Penny put together a very positive package after the latest GDT results, including a 10c increase to $9/kg for his current season milk price forecast.

He also increased next season’s forecast by 60c to $7.50 and added that he thought that $7.50 would be the average farm gate price for the coming five years.

STRONG: The GDT index rose 1.4%, its eighth consecutive rise over four months, and it is now at a record level for the past seven years, going back to March 2014.

Demand remains very global and the market is no longer heavily reliant on North Asian buyers to do all the heavy lifting.

Stuart Davison NZX “The key catalyst for the forecast revisions is our lower forecast track for the NZ dollar against the US dollar,” Penny said.

“We now expect the NZD to fall to US66c by mid-2022, a whopping 8c lower than our previous expectation of it rising to 74c at the same stage.

“Expectations of an earlier increase in interest rates in the US have put the

USD on the front foot and we expect that it will make further gains against currencies like the NZD over the next six months.”

Penny says this effectively means a windfall gain for our dairy farmers this season and the next.

The currency boost will counteract the effects of growing milk supplies next year, which will decrease global commodity prices.

NZX dairy analyst Stuart Davison says his updated milk price model was at $8.82, following the auction outcome and the reaction of the dairy derivatives market.

Although the price increases were small, every commodity rose in value across almost every contract period, a powerful indicator of demand strength.

“Demand remains very global and the market is no longer heavily reliant on North Asian buyers to do all the heavy lifting,” Davison said.

$240-$375 high $3.45-$3.55 Weaner Friesian bulls, Angus steers, lights Yearling 275-405kg, at Matawhero 90-109kg, at Temuka

ACROSS THE RAILS SUZ BREMNER

Last rush on dairy-beef calves over THE last rush to get dairy-beef calves out the farm gate meant another busy week for calf-only sales on both islands. Though there are still a few sales before sale yards shut the gates, these really were the climax before the Christmas break.

The action started on Tuesday at Dannevirke and from there a part of each day was dedicated to dairy-beef calves in one region or another, winding up at Temuka on Friday for the all-breeds section of a two-sale week.

There was no clear trend in prices across all classes for this last run of sales but on average, in the North Island, Friesian bull prices held or eased, dairy-beef bull prices mostly improved and dairybeef heifers held or firmed.

The Taranaki market tended to buck the trend across the other yards though, as prices notably softened into December, while on the other hand a small yarding at Rangiuru sold on an improved market across the board.

For the November-December period, North Island Friesian bulls averaged 112-120kg and $435$465, dairy-beef bulls 110-121kg and $545-$580 and dairy-beef heifers, 108-112kg and $480-$525. Good feed levels have played a big part in keeping some competition in the marketplace. It has allowed those with outstanding orders to stretch to a few more head and brought new players into the market and even if they were only after a few head, every little bit helped.

Temuka had a second run of selling calves and a volume of more than 3500 dictated a two-day sale.

A sea of black and white stretched through the yards on Wednesday as 1930 Friesians went under the hammer, most of which were bulls. That tally was a big ask to put away and sellers met the market, though, at prices below what was hoped for. Over the yarding the average was 115kg and $350, a drop of $15 on the November sale, though better than 2020 by the same amount. Heavier types tended to hold value and 130-140kg returned $380$505 though these made up just 20% of the sale. The balance was almost evenly split over weight ranges of 90-109kg and 110-129kg and the latter sold for $350-$420 and lighter types, $240-$375. suz.bremner@lgobalhq.co.nz

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