8 Extreme weather to continue Vol 19 No 31, August 16, 2021
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Over and out? Richard Rennie
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HE future of Overseer as a regulatory tool to limit farm nutrient losses could hang in the balance after a government-appointed panel identified weaknesses in its ability to capture nutrient loss and challenged its accuracy. The review also reveals a gap between Overseer’s application as a long-term, strategic tool for farmers and the ability of councils to use it as a regulatory tool to cap nutrient losses. The Overseer panel was appointed in response to a 2018 Parliamentary Commissioner for
Councils have always known of Overseer’s weaknesses. The issue is though, that the Environment Court and commissioners have determined it is fit for purpose (as a regulatory tool). But this review has put those judgements in question. Doug Leeder BoP Regional Council
the Environment recommendation that Overseer as the key tool for measuring nutrient losses be reviewed. The review’s general assessment is that Overseer is not providing reliable results across the range of situations it is applied to. Recommendations include more “real-time” data on nutrient losses, particularly nitrogen. While acknowledging it is not perfect, OverseerFM chief executive Dr Caroline Read has defended its use as a tool for monitoring trends and shifts in farm nutrient losses. “Overseer is a tool to understand the direction of travel for the whole farm’s nutrient profile. But we need to keep it pragmatic and realistic for making long-term decisions, including issuing consents, without having to re-analyse data on a weekly or monthly basis,” Read said. She says she was concerned the panel’s recommendations are pointing towards a far more precise real-time monitoring tool. The panel recommended more real-time monitoring of water quality at a local level, including a call for more immediate climate data, rather than the long-term monthly averages used by Overseer. “What is it we want to regulate farmers for? Is it the weather, or the direction of travel for the farm’s nutrient losses? Every year will be different, Overseer follows the
Continued page 3
STARTING YOUNG: St Peters Cambridge Year 13 student Jonty Short tries his hand at auctioning a pen of rams, as PGG Wrightson regional livestock manager Kevin Mortensen offers support. Photo: Andrew Jardine
Auction challenge accepted FOR one Year 13 student, a work experience visit to the Te Kuiti sale yards took on a whole new meaning, as Jonty Short from St Peters Cambridge accepted the challenge to auction off a pen of sheep at Wednesday’s sale. Short was allocated a pen of cull rams and a good crowd
gathered to witness the event. PGG Wrightson regional livestock manager Kevin Mortensen supported Short as bid spotter and deemed the sale a success, as Short persuaded buyers up to $96, much to the delight of his fellow classmates.
Overall, sales around the country were at extremes, as some yards offered up minimal volume, largely due to adverse weather and the time of year, while others were in spring-selling mode and tallies increased at regular sales, or special fairs were held.
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Female leaders vital to sector
Agribusiness entrepreneur Bridgit Hawkins says the gender bias in primary sector leadership means it is missing out on a wealth of talent vital to its future goals.
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4 Prime cattle kill races ahead The prime cattle kill of steers and heifers this year is 20% ahead of previous meat industry seasons, as farmers target $6/kg CW schedules and change their farming practices.
15 Weeding out herbicide resistance
Weed resistance to herbicides has become endemic in New Zealand, with researchers finding at least half the country’s arable farms and vineyards have species resistant to common treatments.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
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New docking rules clarified
and fine of up to $3000, or $15,000 for a business. Beef + Lamb New Zealand senior manager of technical policy Chris Houston says B+LNZ has heard from farmers that awareness of the new regulations
varies, so it is including reminders in its regular newsletters and on its website. “We’ve also heard there is some confusion or concern out there about the exact length required,” Houston said.
“We’re working with MPI and industry contacts to get further clarity so farmers can more easily understand this in practice and will be supporting any further communications around this.” MPI director animal health and welfare Dr Chris Rodwell says since the December announcement there have been further awareness activities. Information sheets have been distributed to farmers, veterinary clinics and sale yards across the country. MPI staff have attended field days, A&P shows and other rural events, with a focus on engaging with farmers, taildocking contractors, stock agents, veterinarians, lifestyle block owners and docking equipment stockists. Rodwell says MPI has sent direct email advisories to affected parties, carried out targeted social media advertising and worked with industry groups to coordinate messaging. It has updated an information sheet to provide more clarity around the length requirements and reasoning behind it. “Over the next few weeks this
and Hawke’s Bay, have enshrined Overseer into their regional water management plans for setting nitrogen loss limits. “Councils have always known of Overseer’s weaknesses. The issue is though, that the Environment Court and commissioners have determined it is fit for purpose (as a regulatory tool). But this review has put those judgements in question,” Leeder said. Leeder’s concerns are supported by Federated Farmers. Environment spokesperson Chris Allen says the review confirmed what the Feds had been pointing out for years. The Feds estimate 6000 farmers are already strictly regulated by Overseer through
regional council stipulations. Allen says in coming months it would be vital to determine farmers’ legal status, given Overseer’s weaknesses raise issues on its accuracy in setting nutrient limits in catchments. However, he did not want to see Overseer ejected entirely, rather it be kept out of setting regulatory limitations. His sentiments are also shared by DairyNZ and Beef+Lamb NZ. B+LNZ chief executive Sam McIvor says there was no doubt OverseerFM was still a valuable farm management tool and he supported its use on-farm. “What the review has identified is that the nitrogen aspects of the model, in particular, need
improving,” McIvor said. Leeder says there is no tool that will provide a “magic number” for setting nutrient limits. He envisaged that if regulations are to include limits, then a suite of tools will be required, including real-time monitoring of water ways. “But that is very expensive, not always practical, and the variables to measure are massive,” Leeder said. Ballance research and environment head Warwick Catto says Overseer reflected NZ’s efforts to take an output approach to nutrient control, rather than a top-down input limit, as used in Europe. “This is what keeps innovation
Colin Williscroft colin.williscroft@globalhq.co.nz NEW docking rules that came into force in May are causing concern and confusion among some farmers. MPI announced the new regulations, which aim to improve sheep welfare by clarifying how tail-docking should be done and who can carry it out, at the end of last year. A sheep’s tail cannot be docked shorter than the distal end of the caudal fold. This means the tail needs to be long enough to cover the vulva in ewes and a similar length in rams. Docking too short could result in a fine of $500, or $1500 for a business, and if multiple sheep are involved that could lead to court proceedings. Docking of sheep under six months old must be done using a hot iron or rubber ring. Any other method could result in a $500 fine. For sheep older than six months, the procedure can only be done by a veterinarian, using pain relief. Not doing so could result in a criminal conviction Continued from page 1 long-term trends in nutrients,” she said. Environment Minister David Parker says a new version of Overseer that incorporated risk categories was one possibility. One recommendation made by the panel was to replace Overseer with a completely new nutrient loss model. But any review and dumping of Overseer could set the scene for a litigious showdown between farmers, regional councils and central government. Bay of Plenty Regional Council chair and regional representative for Local Government NZ Doug Leeder says some councils, including Horizons, Canterbury
EFFORTS: MPI director animal health and welfare Dr Chris Rodwell says their information around new docking regulations has been updated to provide more clarity around the length requirements and reasoning behind it.
We’re working with MPI and industry contacts to get further clarity so farmers can more easily understand this in practice and will be supporting any further communications around this. Chris Houston B+LNZ will be distributed as widely as possible to industry groups, farmers, veterinary clinics and sale yards,” Rodwell said. MPI will also utilise rural newspapers and social media to remind people of the rules in time for lambs that are being docked this season.
MORE:
Farmers and other sheep owners can access the most up to date information about regulations at www.mpi.govt.nz/animalregs
to deal with nutrient losses alive,” Catto said. “But Overseer is a model and models require good science to feed into them. Cropping farmers realised the weaknesses in Overseer five years ago and came on board with funding to improve the cropping aspect. “Horticulture has not invested in nitrogen loss studies to apply into Overseer, despite knowing about nitrogen losses since the 1990s.” Read confirmed OverseerFM had not directly received any of the $43 million from the 2019 budget allocated for upgrading it. She says some funding had gone into soil mapping and freshwater research that she hoped would feed into Overseer.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Prime cattle kill races ahead Hugh Stringleman hugh.stringleman@globalhq.co.nz THE prime cattle kill of steers and heifers this year is 20% ahead of previous meat industry seasons, as farmers target $6/kg CW schedules and change their farming practices. Official figures from Beef + Lamb New Zealand reporting the slaughter tallies from meat companies ticked over one million prime cattle in mid-July. Previously, this number was historically reached at the end of the meat industry year, endSeptember. Prime cattle throughout has been averaging just under 25,000 head a week, versus 20,000 in previous years. “The season-to-date figure is about nine or 10 weeks ahead of previous years,” AgriHQ beef analyst Sara Friel said. Bookings for prime cattle are subject to a one-week wait at present and that wait period was as high as three weeks in midJuly, when plants shut for winter maintenance and more cattle came forward than processors had planned. Fellow analyst Mel Croad says farm gate prices are at record highs for this time in the season; $6.15/kg CW in the North Island compared with $5.45 last year and $5.95 in the South Island, versus $4.85 last year. Even at these price levels, the weekly prime numbers are starting to fall, which Croad thought could be farmers holding off until higher schedules expected in the spring. “With kill rates of breeding cows through droughts, farms to forestry conversion and potentially lower heifer retention, it’s possible next season’s kill will be lower,” Croad said. “But look at the positives – record kill figures and record prices indicating strong export
With kill rates of breeding cows through droughts, farms to forestry conversion and potentially lower heifer retention, it’s possible next season’s kill will be lower. Mel Croad AgriHQ
MONEY MAKER: The prime cattle stream has been profitable for companies this season and farmers have responded to the higher schedules.
markets for prime beef and stronger incentives to remain in this sector.” Silver Fern Farms (SFF) says cattle farmers are targeting a growing range of premiums for prime supply in winter and early spring. Some are resetting their farming practices, including store cattle purchasing, away from the traditional tight spaces for processing and the lower schedules in favour of contract periods. This year prime cattle supplies have been up right across the country and weights have been the same or marginally better than last year. International customers are preferring grass-fed prime beef from SFF, which then flows through into pricing and results in the higher kill. The retail channels are
paramount with foodservice slowly coming back into the picture. Anzco head of livestock for Shannon Parnham thinks covid-19 restrictions on processing capacity in the second half of the 2020 meat industry season contributed to the large prime cattle kill early in 2021 season. “During the lockdowns and various covid levels we had to spread the employees in the plants and it was more difficult to bone out the greater number of prime cuts,” Parnham said. “We therefore favoured cows and bulls at that time, effectively carrying over steers and heifers into this season.” The prime cattle stream has been profitable for companies this season and farmers have responded to the higher schedules.
“Holes are starting to appear in the prime cattle supply, which reflects the extent to which the industry has killed forward,” he said. B+LNZ senior agricultural analyst Rachel Agnew pointed to an increase of breeding cows in 2019 as shown by the 7% rise in the June 2019 opening herd number, or 70,000 head. Alongside that, she says there was a 2% decline in the 2019 bobby calf kill. Subsequently, the forecast of heifer retention into the breeding herd did not eventuate over the past summer because of lack of feed. Agnew suggested those heifers were finished and slaughtered instead, adding to the prime cattle kill this year. Alliance livestock manager Danny Hailes suggests that droughts and some carryover
from the previous season have contributed to the increased prime cattle kill. Finishing cattle in both islands have been lighter because of restricting feeding last summer and autumn, but there are more of them coming forward. “The number of beef heifers sent through live export will have an effect in November and December, especially around local trade,” Hailes said. Affco livestock manager Tom Young says some cattle finishers missed out on the $6/kg prices in late 2019, when widespread drought filled the processing plants and then China got covid and schedules fell. Those farmers consigned earlier in the spring of 2020 to get ahead of any space jams, creating a carryover effect in the prime tallies this season. The tough summer and winter of 2020 also contributed to the carryover, with cattle kept longer on farms. Additionally, dairy farmers seem to have raised more beef crosses two years back when they reduced dairy cow numbers. Young says a larger bobby calf kill this year would have implications for finished cattle numbers in 18-24 months.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
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Get stock away or face delay Neal Wallace neal.wallace@globalhq.co.nz FARMERS are being advised not to play the prime stock market this season, with exporters bracing themselves for another year of shipping disruption. Silver Fern Farms (SFF) supply chain manager Dan Boulton says farmers should consign prime stock when they are ready and space is allocated, or they could face delays caused by shipping. “As soon as they get space to get their animals away, then they should take that opportunity. Don’t delay,” Boulton said. The Ministry of Transport reports a 6.3% increase in the number of ships servicing Oceania in the last year, but despite that, US shipping monitoring company Project44 reveals substantial year-on-year increases in vessel and shipment delays across most major trade lanes connecting China. Exporters expect global supply issues will continue for another year, with some speculating it could last 18 months. Shipping lines are addressing congestion by dropping ports from their schedules to reduce the amount of time vessels are idle, but this is delaying deliveries. With the new production season about to start, meat and dairy companies say inventory levels are at normal levels or lower despite a year of container shortages, vessel scheduling delays and port congestion. Boulton estimates 20% of global
shipping capacity is currently delayed, and he says companies and exporters are working together to consider options, such as jointly chartering ships. Weekly ship visits to several New Zealand ports have extended to fortnightly, which means more internal movement of containers to connect with ships and is causing some ports to close their marshalling yards due to container congestion. Boulton says SFF has low inventory but has accessed more cold storage ahead of the new season, is simplifying its ordering systems to streamline the supply chain and looking at how to reduce the risk of delayed delivery of chilled meat. He says its alliance with logistics company Kotahi has more than proven its worth, avoiding the worst of shipping delays. Kotahi chief executive David Ross says NZ’s shipping schedule reliability is below the global average at a time when demand continues to trend above precovid levels. Ross warns exporters may need to accept continued global supply chain disruption until new global shipping capacity arrives in the second half of 2022. Last season Kotahi brought additional capacity to service NZ through its shipping partner Maersk and Ross says it will continue to work with freight operators this season. NZ Council of Cargo Owners chair Simon Beale says shipping
WORKAROUND: Shipping lines are addressing congestion by dropping ports from their schedules to reduce the amount of time vessels are idle, but this is delaying deliveries.
issues have been accentuated by teething problems with a new automation system at the Ports of Auckland, which could linger until next March.
As soon as they get space to get their animals away then they should take that opportunity. Don’t delay. Dan Boulton Silver Fern Farms This is causing congestion, disrupting shipping schedules and delays in relocating empty containers.
“Until Auckland performs, we will have issues because everything else performs around it,” Beale said. For the first time in 18 years, Beale says his company, T&G Global, chartered ships to get product to market, including with Affco on a joint shipment to the US. While there appears to be better availability of containers, Beale warns it will still be “touch and go”. Alliance Group sales manager Shane Kingston says the signs ahead of the coming season are not great. “For instance, in the Los Angeles-Long Beach area, there were approximately 25 vessels waiting to berth this week, which is consistent with the past six months. “At this stage, we do not anticipate any significant
improvement in the situation in the short-term,” Kingston said. Despite these challenges, Kingston says Alliance inventory levels are substantially less than they were a year ago. Fonterra’s director global supply chain Gordon Carlyle says the co-operative has “closed out the year in really good shape”, which he attributes to their collaboration with Kotahi and its partnership with Maersk. The ANZ NZ Agri Focus says food demand has been artificially boosted by buyers building up stocks in case shipping disrupts supply lines. “This has created additional demand that won’t be sustained once sufficient stocks are at hand,” it said. It notes the shipping pinch point will be reached in the third quarter when global exports peak ahead of holiday spending.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
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Water reforms scarce on detail Neal Wallace neal.wallace@globalhq.co.nz DISTRICT councils are questioning the lack of detail with the Government’s Three Waters reforms, but are so far reserving judgement. Its proposal creates four publicly-owned water companies to manage drinking, waste and stormwater assets, along with debt appropriated from 67 councils. Mayors are frustrated the Government is not listening to their concerns, evident by being given just eight weeks to provide feedback on the proposals. Other concerns included consultation, the speed of the reforms, local input into the new entity’s decisions, asset valuation, what happens to councils who decline to join the new entities and how communities decide whether or not to be involved. The Government estimates councils face costs of between $120 billion and $185b over the next 30 years to maintain, replace and upgrade aging water assets. It claims the new entities can use economies of scale and operational efficiencies to fund that work, warning ratepayers could face future water costs four times current levels without reforms. Waimate Mayor Craig Rowley questions the reform pace set by the Government. “I’m certainly of the opinion these are public-owned assets and I’m certainly not going to do anything without a clear view and steer from my ratepayers,” Rowley said. Rowley also questions whether the Government is listening. “At the end of the Local Government NZ conference the minister (Nanaia Mahuta) told us we have got eight weeks to say whether we are in or out,” he said. “Realistically I don’t believe eight weeks is long enough to get data required let alone consult our communities.” His other concerns include the consequences for seven council-
FRUSTRATION: Mayors are frustrated the Government is not listening to their concerns, evident by being given just eight weeks to provide feedback on the proposals.
I’m certainly of the opinion these are publicowned assets and I’m certainly not going to do anything without a clear view and steer from my ratepayers. Craig Rowley Waimate Mayor owned rural water schemes and what happens if a large urban centre, such as Christchurch, opts out of the new entity. Mackenzie Mayor Graham Smith says there are 120,000 rural water schemes around the country, a mix of council and privately-owned. The Three Waters proposal transfers all council water assets
to the new entities, but Smith says many rural schemes were built and are maintained by users and he questions what the reforms mean. Smith believes a referendum of ratepayers should decide if they join the proposed entity, especially given his council has managed its debt while investing in infrastructure. Waitaki Mayor Gary Kircher disputes Government estimates that his council faces $1.5B in upgrade costs. “I can’t see how they got to that because we are very close to the required standards,” Kircher said. “We are a bit cynical about the financials, which we need to get sorted.” Waitaki also faces uncertainty over its shareholding in the Lower Waitaki Irrigation Company from which it sources domestic water. Gore Mayor Tracy Hicks says the current system of funding
is failing, with his council alone facing $330 million in upgrade and maintenance costs in the next 30 years. Hicks says Three Waters is complicated, has generated a mountain of data and raises many questions. “It’s not just about opting in or out but also a question that if you do opt out, what does that look like and what risks that poses?” Hicks asked. Masterton Mayor Lyn Patterson says her council is reserving judegment, but agrees some reform is needed. She questions how her community interests can be catered for when competing with the requirements of councils from Gisborne to Palmerston, south to Tasman and Nelson. “At the end of the day for my community I want the best water that meets the drinking and environmental standards at an
affordable price,” Patterson said. “I don’t know if this model will deliver that.” Hauraki Mayor Toby Adams says it is an affordability issue for some councils. “In the long run, we know it is an affordability issue for rural communities and with compliance and any growth, it will trigger an upgrade of networks that will become unaffordable without government assistance.” Hauraki has between 22,000 and 24,000 ratepayers, but faces $45m in upgrades over the next decade, with Adams saying it will be taxing for his community. He also questions the speed of the reforms, estimating he needs six months and up to $100,000 to fully consult his community. Horowhenua Mayor Bernie Wanden accepts change is needed, but says the process is being rushed and the uncertainty is frustrating.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Extreme weather to continue Colin Williscroft colin.williscroft@globalhq.co.nz THE frequency and severity of extreme weather events – and the resulting impacts on agricultural systems – will continue to increase as global temperatures rise, scientists tracking changes in the Earth’s climate say. The latest Intergovernmental Panel on Climate Change (IPCC) report warns that climate change is not just about temperature, it is also intensifying the water cycle, which will bring more intense rainfall and associated flooding, as well as more intense drought in many regions. Manaaki Whenua – Landcare Research senior scientist Dr Nick Craddock-Henry says the release of the report should be a clarion call of the dangers of widespread and rapid changes in atmospheric conditions. He says the evidence is unequivocal: human activity has resulted in dramatic shifts in global temperature and precipitation patterns and is driving increased frequency and severity of extreme weather events. “The physical science is clear and changes in the frequency and severity of extremes have particular relevance for Aotearoa New Zealand,” Craddock-Henry said. He says in the seven years since the last IPCC assessment report, recurring drought has had a marked impact on primary industries. “Drought is now Aotearoa New Zealand’s costliest hazard, with economic and social implications for rural communities,” he said. “Our agricultural systems – including horticulture, viticulture, arable cropping and livestock – are sensitive to these changes, due to their dependence on stable, longterm climatic conditions in which current land-management and land-use decisions and practices were developed, and through impacts on production, quality and yield. “Furthermore, primary
economic activities such as agriculture are, in many instances, the basis for rural economies, supporting the social, cultural and economic vitality of our regional rural communities. These changes are expected to continue, with warming to mid-century of 1.5-2degC. These changes will have flow-on effects for local conditions, increasing the likelihood of drought, flood, and compounding hazard events,” he said. Craddock-Henry says although an accounting of NZ’s vulnerability to climate change is not due until early next year, the scale and urgency of the problem is clear: warming will continue unless dramatic reductions in greenhouse gases are made and mitigation will be insufficient to address the changes outlined in the report. “To ensure sustainable longterm futures for Aotearoa New Zealand, the report is a stark reminder of the need for adaptation. Adaptation will require strategic and even radical adjustments to practices, processes, capital, and infrastructure in response to climate change, and must begin now,” he said. Niwa principal scientist of carbon, chemistry and climate Dr Sara Mikaloff-Fletcher says even with rapid emissions reductions, it will still take 20-30 years for global temperatures to stabilise. However, it is still possible to limit the impacts of climate change. “Every action we take to reduce our net emissions of carbon dioxide, methane and other greenhouse gases will help us towards a brighter future,” Mikaloff-Fletcher said. “However, the IPCC report shows that the longer we wait to stabilise climate, the harder it will be. “Models predict extreme temperatures and droughts brought on by climate change will weaken the ability of forests and other green spaces to absorb carbon dioxide.
FINDINGS: The latest IPCC report shows that the longer we wait to stabilise climate, the harder it will be.
“This is particularly significant for Aotearoa New Zealand, because our forests and land use offsets roughly a third of our total greenhouse gas emissions. We must begin to come to terms with how changes in climate impact our forests and their ability to absorb and store carbon.” The report says the evidence is clear that carbon dioxide is the main driver of climate change even though other greenhouse gases and air pollutants also affect the climate. IPCC Working Group 1 co-chair Panmao Zhai says stabilising the climate will require strong, rapid and sustained reductions in GHG emissions, and reaching net zero CO2 emissions. “Limiting other greenhouse gases and air pollutants, especially methane, could have benefits for both health and the climate,” Zhai said. Federated Farmers president and climate change spokesperson Andrew Hoggard says if enabled by the Government, science and innovation has the potential to boost on-farm performance while
also cutting emissions. He says breeding advances, a cutting-edge Kiwi-developed GMO ryegrass, the nitrification inhibitor DCD and livestock methane inhibitors such as 3-NOP are just some of the options available or showing great promise. But several of them have run into regulatory roadblocks that the Government needs to deal with. “Methane is a short-lived greenhouse gas that needs to be slightly reduced, and nitrous oxide is a long-lived and potent greenhouse gas that we need to reduce to net zero by 2050, but the few tools available to reduce these GHGs are being held up by regulatory constraints,” Hoggard said. Hoggard says the report makes it clear that NZ was right to show global leadership when adopting split long and short-lived GHG targets. “We need to follow this up and adjust the current methane reduction targets to ones which are zero carbon equivalent. We also need to split out emissions
budgets to make sure climate policy treats short and long-lived emissions differently in a manner consistent with the split gas targets,” he said. University of Canterbury professor of political science and international relations Bronwyn Hayward says thinking that new technology can be relied on to save the situation must be avoided. “This IPCC report clearly states in the frequently asked questions section that technologies like CO2 removal techniques are not yet ready or unable to achieve the scale of removal to compensate for current levels of emissions and most have undesirable side effects,” Hayward said. “It’s critical that we stop hoping someone or something else will fix this if we hope to achieve the Paris Agreement of holding the increase in the global average temperature to well below 2degC above pre-industrial levels, let alone 1.5degC. “Extreme weather events cannot be the future we leave for our children.”
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
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Forestry grappling with supply chain logjam Richard Rennie richard.rennie@globalhq.co.nz SUPPLY chain pressures from the forest to the port are prompting contractors to call for a pan-industry group to better coordinate resources and planning in the sector. Forest Industry Contractors Association (FICA) chief executive Prue Younger says significant logjams at the country’s ports, shipping schedule delays and labour issues were all culminating in significant pressure on operators and infrastructure throughout the sector at present. Those pressures were also exacerbated by strong demand by China for New Zealand logs. China comprised 83% of total NZ log sales to the year ended March and total industry revenue is expected to top a recordsetting $3.6 billion for year ended June, up 25% on the previous year. “There are issues and delays even in getting logs off skid sites, sometimes that translates to a shortfall in labour but other times, it is also due to a need for
better planning by the forestry principal,” Younger said. From there, issues grew around shortages in logging truck drivers who were in exceptionally high demand and shipping delays. “I think we need a pan-sector industry group that gets all the players in the sector around the table together to deliver a more coordinated, planned approach to managing these issues,” she said. Younger says she wanted to see the sector move out of the stopstart, boom-bust type of cycle that has been occurring. The sector is highly fragmented, with groups that include forest owners, farm foresters, contractors, transport operators and wood processingmanufacturing, all represented under separate identities. She says the industry is also being hit on the importation side of business, with delays reported for new vehicles, equipment, and parts, all stretching some operators to the limit with a midmonth price drop in logs that usually occurs about this time of year. The pressures come at a time
when Chinese appetite for NZ logs continues unabated. NZ is in pole position to supply, given trade issues between China and Australia, and a slow down in imports from Russia. NZ is now the largest supplier of softwood logs to China, followed by Germany, Russia and the United States. Kevin Ihaka of Forest Protection Services in Northland says the pressure was also on at the other end of the forest lifecycle as the planting season hit full swing. “Trying to get people for planting is proving extremely difficult. We have lost that usual supply of backpackers, and there seems to be a lot of competition for people out there across the primary sector,” Ihaka said. He had been working closely with the Ministry for Social Development to employ more locals, but acknowledged this required a high level of pastoral care to manage people into work situations they may not have experienced before. He had tried recruiting staff through the “$10,000, 12-week challenge” which kicked off in
TIGHT: Forest Industry Contractors Association chief executive Prue Younger says the forestry supply line is stretched very tight, with pressure on forest contractors greater than ever
late June, run through FICA. Applicants are invited to take up a 12-week challenge planting trees for $10,000 in wages. “But we have had a low hitrate with it. I wonder if people don’t understand exactly what the job entails, and one of the misunderstandings is that it is a minimum wage job, when in fact people can earn good pay, $300-$600 a day once they are experienced,” he said. At present, as in the dairy sector, there was a lot of poaching
between employers occurring, pushing up pay rates but not increasing the supply of people to work. “The best strategy we can take now is to ensure we make this sector as attractive as possible to potential employees. The shortage has changed pay rates a fair bit, but we still need more people,” he said. He believed there was a good opportunity for the sector to be employing more women than it was right now.
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10 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Cream rises for farmers, exporters Hugh Stringleman hugh.stringleman@globalhq.co.nz DAIRY, lamb, beef and log prices at the farm gate are all in the highest quintile relative to the 10-year averages as farmers, orchardists and foresters prepare for spring, the latest ANZ Agri-Focus newsletter says. Under the headline Springing into Action, agriculture economist Susan Kilsby and chief economist Sharon Zollner say global commodity prices remain high, but whole milk powder and logs are trending down. In contrast, returns for meat and wool are still rising. Food security concerns are playing a part, they say. “Trade tensions, combined with the disarray in the shipping industry, are prompting buyers to build buffer stocks to mitigate risks of not being able to source goods when required,” the ANZ economists said. “This has created additional demand that won’t be sustained once sufficient stocks are at hand.” Additional downward pressure on farm gate returns comes from the rising value of the New Zealand dollar, forecast to be US75c by early next year and the increasing costs of shipping. ANZ economists also expect the Official Cash Rate to be 1% by the end of the year after three consecutive increases of 25 basis points by the Reserve Bank. The bank’s farm gate milk price forecast is $7.70/kg milksolids and there is room for further easing of dairy commodity prices. Since the forecast was first made, commodity prices have fallen, but so has the value of the NZD, cancelling each other out. Also, the forecast is based on a weighted average commodity price of US$3600/tonne, and the market is currently $200 above that. This season, NZ looks likely to hold last season’s 2.7% increase in milk production, weather dependent. The United States has a similar rate of growth and the European
OUTLOOK: Prices for lamb on international markets are trending upwards and there is prospect of more to come as covid-19 restrictions ease and vaccines are rolled out.
We anticipate the current strength in farm gate prices will remain intact for the next few months whilst supply is low, before easing later in the year. ANZ Commission is forecasting 0.8% growth in 2021. Milk output is growing in Australia, Argentina, Uruguay and Brazil, but ANZ expects overall just modest growth for the rest of this year and that should help underpin commodity prices at or
near their current levels. Prices for lamb on international markets are trending upwards and there is prospect of more to come as covid-19 restrictions ease and vaccines are rolled out. Procurement competition is a factor in farm gate prices, which is not unusual for this time of the season. The current $9/kg level should remain above $8 until Christmas and then ease to $7 at the peak of the killing season. ANZ says the mutton price for cull ewes is at eye-watering levels, around $6.50/kg. Almost all the mutton production is going to China, which pays more than all other markets. A $1/kg increase in the strong wool price from this time last
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season until now has been welcomed by sheep farmers. The rising market has caused more interest from Europe and India, to add to that from China. Global beef supplies are tight and farm gate prices are lifting sharply. China has an insatiable demand and Australian supplies are down because of herd rebuilding in the great outback. Bulls and steers are bringing $6/ kg in the North Island. “We anticipate the current strength in farm gate prices will remain intact for the next few months whilst supply is low, before easing later in the year,” they said. Venison prices have fallen steeply from $11/kg in 2019 to $5.50, with some prospect of
forward contract offers in the range of $7-$7.50. The ANZ economists praised the deer industry’s efforts to diversify from the restaurant trade for venison, but new markets are not sufficiently developed to help the farm gate price. A-grade log prices are coming off their record $194/m3 and local demand is replacing that from China. “This follows nine months of elevated prices that have favoured our growers and exporters,” they said. “Chinese buyers are finally pushing back on the prices being asked by NZ exporters.” The summer construction slowdown and some regulatory enforcements on Chinese mills have dampened the import demand.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
11
Govt questions report’s findings Neal Wallace neal.wallace@globalhq.co.nz THE Government claims a BakerAg analysis on the amount of land being planted in forestry has overegged the area by 37%. But the report authors attribute any discrepancy to delays between completed land sales and planting. BakerAg calculated 139,500ha of new forestry was planted from 2017-2020 by tracking farm sales and titles data, cross referenced with companies known to be forestry or carbon farming companies. Agricultural Minister Damien O’Connor says his officials have calculated the area of new forestry planted over that period at 87,200ha, 20,000ha a year, 37% lower than BakerAg. “Government afforestation estimates are based on a combination of land-use mapping, nursery sales and funding within the one billion tree programme,” O’Connor said He says 20 years of deforestation has reduced the forest estate by about 70,000ha. The BakerAg report was commissioned by Beef + Lamb NZ and concluded whole farm purchases by forestry companies resulted in 92,000ha of new exotic forest planting between 2017 and 2020. A further 47,400ha was planted under the one billion trees programme and other planting incentives.
benefits the climate and communities. While eligible native and exotic vegetation on farmland already qualify for inclusion in the ETS, Shaw says the Government is working with the sector through He Waka Eke Noa to find additional ways of rewarding farmers for the emissions their land helps absorb. That work involves developing a farm-level emissions measurement, management and pricing system, with details not expected until next March.
QUESTIONED: The BakerAg report was commissioned by Beef + Lamb NZ and concluded whole farm purchases by forestry companies resulted in 92,000ha of new exotic forest planting between 2017 and 2020.
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That speaks to farmers seeing the value of diversified land-use and the potential for both commercial forestry and carbon credit income. Damien O’Connor Agriculture Minister B+LNZ was most concerned that 34% of whole farm purchases were to carbon farming companies, planted in exotic forest and left untouched with carbon credits sold to emitters. It warns this demand is pushing up land prices, locking young farmers out of the market and resulting in the loss of breeding country while also robbing rural communities of population and services. O’Connor says the Government is listening to concerns, is committed to a policy of “right tree, right place” and closely monitors forest planting. But it will not cut across farmers’ rights to make decisions about their land. “I note that the report says that during the period, 47,000ha of planting has occurred within farming operations,” he said. “That speaks to farmers seeing the value of diversified land-use and the potential for both commercial forestry and carbon credit income.” He says a review is under way of the special test that gives foreign forestry investors an exemption from Overseas Investment Office rules, but he adds those investors are prevented from carbon farming. Climate Change Minister James Shaw expects an increase in forestry planting now that Emissions Trading Scheme (ETS) reforms provide a predictable price. “My priority is to ensure that this price is such that it drives reductions in gross emissions in every part of the economy,” Shaw said. “However, companies also need the option to offset what they cannot reduce.” Shaw says the independent Climate Change Commission acknowledged forestry has a role in cutting emissions, but it must be balanced to encourage conservation and afforestation that
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12 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Reporting season fruitful for most Hugh Stringleman hugh.stringleman@globalhq.co.nz PGG Wrightson (PGW) will be first of the listed rural companies to report its annual results in what is expected to be a fruitful financial year for primary production, processing and servicing. However, there will be notable exceptions with bad results, namely A2 Milk (ATM) and cohort Synlait (SML). Synlait has already announced that it will make an after-tax loss between $20 million and $30m. A2 has made repeated downgrades of its revenue and earnings potential, the most recent in May, and its share price has fallen 70% during the past 12 months.
The reporting season will close in late September with Fonterra, Synlait and Tatua, three very different dairy companies.
PGW’s latest market guidance said it expected earnings before interest, tax, depreciation and amortisation (Ebitda) to be $56m, about 25% higher than FY2020. Chair Rodger Finlay said the rural servicing company had performed strongly in the second half after good results in the first half, Ebitda up 21% and net profit up 41% to $18m. Shareholders will be expecting a full-year dividend around 20 cents after 12c as the interim payment in March. Its share price has risen 25% over the past year and now sits at $3.45, which seems a long way above the covid-induced and temporary $1.60 in March 2020.
But that share price growth pales in comparison with Skellerup Holdings (SKP), up 113% over the past year and now sitting at $5.45. Indeed, Skellerup has put on $4 since the covid rock bottom 18 months back. It now has a market capitalisation over $1 billion and its shareholders will be expecting a yield that improves upon last year’s 13c dividend and, if possible, keeps pace with the share price. Skellerup’s latest guidance, made in April, said the expectation was for net profit between $37m and $39m, about 50% more than the previous year. A minnow in comparison with PGW and Skellerup is Allied Farmers (ALF), with a market capitalisation of $17m and a share price of 58c, up 4c over the past year. On revenue of $20m it made a net profit of $1.2m in FY20 and this year it has taken on half of the management company of NZ Rural Land Company (NZL), from which it stands to make performance fees and a minor share of capital gains. That earnings stream is forecast between $500,000 and $600,000 in FY21. Major wine company Delegat Group (DGL) will report on August 27 and its latest guidance was for an unaudited net operating profit after tax of $64.6m, up 6%. Case sales were down 3% because of shipping disruption and it also forecast a 10% reduction in FY22 profit because of a smaller grape harvest earlier this year. Dividend should be steady on the previous two financial years at 17c fully imputed, not much better than 1% yield on the current share price of $12.90, which gives the leading wine exporter a market capitalisation of $1.3 billion. A number of horticultural
RESULTS: PGW chair Rodger Finlay says the rural servicing company had performed strongly in the second half after good results in the first half.
companies will report their firsthalf results because their financial years are also calendar years. Seeka (SEK) has had strong share price growth over the past year, rising from $3.70 to $5.05 and a $200m market capitalisation. If it follows form, then a 10c interim dividend can be expected and the rise in share price would indicate a gross dividend yield for the full year, around 4-5%. The larger Scales Corporation (SCL), with a market capitalisation of $658m, should be on track to repeat its interim dividend last
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year of 9.5c and the same again in April. This would yield around 4% on the current share price of $4.67, but Scales is unusual in the primary sector at present for having a falling share price, down 50c or about 10% over the past year. Some of that loss of value would be investor disappointment that the company has not paid out any of the $80m received in FY19 from the sale of Polarcold and part of Meateor pet foods. During the past year, Scales
did due diligence on Villa Maria but pulled out of the possible purchase. Comvita (CVT) expects an improvement of Ebitda from $19m in FY20 to something in the range $22.5m to $25.5m. The owners of 70m shares in the mānuka honey producer and marketer will be hoping that directors can return to paying a dividend, however modest. At the other end of the scale, Zespri (ZGL) paid its shareholders a final dividend for the 2020-21 season of 27c per share on August 13, which brought the total dividend for the season to $1.33. It also paid an interim dividend for the 2022 season of $1.44, to distribute most of the funds generated from the recent sale of Gold3 and Red19 licences. At the current share price of $11 on the Unlisted Securities Exchange, Zespri had a gross dividend yield over the past 12 months of 14%. That is one of the highest yields of any company in NZ and is a very attractive return on capital for what kiwifruit growers have invested in their industry cooperative. During the past year, Zespri shares have risen in price from $8.50 to $11 and it has a market capitalisation of $2b. The reporting season will close in late September with Fonterra, Synlait and Tatua, three very different dairy companies. Fonterra (FCG and FSF) has stayed on track to deliver a farm gate milk price of around $7.55/ kg milksolids and its earnings guidance of 25-35c a share, from which it is likely to declare a fullyear dividend between 10c and 15c. Synlait said it will match Fonterra’s milk price, despite foreshadowing a trading loss. Tatua Co-operative may declare a record payout over $10/kg, but it remains to be seen if it retains more than last year’s record $1.26.
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
15
Weeding out herbicide resistance Richard Rennie richard.rennie@globalhq.co.nz WEED resistance to herbicides has become endemic in New Zealand, with researchers finding at least half the country’s arable farms and vineyards have species resistant to common treatments. Longtime AgResearch scientist Dr Trevor James says the instance of resistance was 10 times greater than his and his colleagues’ best estimates. That number was confirmed through a national survey of farms in Southland, Waikato, Bay of Plenty and vineyards in Marlborough and North Canterbury. “We estimated there would be about 5% of properties with resistant weeds. But our survey found 54 out of 87 properties had herbicide resistance in weeds. It was a very surprising result and makes weed resistance in NZ a very present danger, not a distant one,” James said. James’ career has spanned the history of weed resistance in NZ. He witnessed the discovery in 1979 of the first documented case of resistance, which was fathen weed to the active atrazine in Waikato maize crops. The common resistant weed species being identified by scientists include ryegrass, wild oats, chickweed and first-time finds of summer grass, puha, prairie grass and lesser canary grass. The survey was the first of its type for arable crops, funded
from the Ministry of Business Innovation and Employment Endeavour Fund. To fully understand the scope and mechanisms of resistance, James and colleagues are embarking on a research programme that involves getting inside farmers’ heads, as much as the weeds’ behaviour. “I have been in this game for a long time, talking to farmers about weed resistance and approaches to help reduce it occurring. But we have engaged an AgResearch sociologist to help us better understand how decisions are made that will impact weed resistance,” he said. “It may even find that perhaps the influencer is the bank manager when they realise their farmer client’s crops will not be as productive as a result of weed resistance. We want to find out these sorts of things.” Analysis of meta-data on weed infestation from around the globe by Lincoln University professor Philip Hulme will help better predict weeds likely to be the next resistant invaders and try to find any commonalities in the weeds that are already developing resistance. “It may be that some species are more predisposed to resistance than others,” he said. Massey researchers are also trying to develop a rapid test that enables farmers to leave samples that can be analysed to determine if they are resistant or not.
UNEXPECTED: Dr Trevor James says researchers were surprised at the level of resistance developed in weeds on NZ farms.
Finally, researchers are exploring alternatives to herbicides that may help stave off or avoid resistance developing, including tikanga Māori practices and new technology. “This also includes stepping back from intensification, which
I think we know deep down has backfired somewhat in this area,” he said. Work includes incorporating cover crops into rotations. For maize, using a cover crop over winter of oats, fava beans or lupins has been found
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Project to pull bio-control levers AS RESISTANCE grows among the New Zealand weed species population, a project to try and deal with some of the country’s most invasive weed pests is reaching for bio-control as a solution. The Ministry for Primary Industries (MPI) and Manaaki Whenua – Landcare Research are leading a study into biocontrol methods that may provide an ongoing means to control weeds. It comes as conventional synthetic herbicides face the threat of tougher residue levels or even outright bans from trading partners. Chair of the governing group Phil McKenzie says golden wattle, Chilean needle grass, old man’s beard, woolly nightshade, Chilean flame creeper and yellow flag iris were the six weeds to be targeted by the work. Chilean needle grass has the potential to spread through 15 million hectares of New Zealand, but presently infests about 3700ha of land, largely in Hawke’s Bay, and is a major health issue for stock when its needle-like seeds penetrate
skin, muscle and eyes. Woolly nightshade is found in Bay of Plenty, has a distinctive kerosene smell and spreads easily. The plant has fine hairs that are irritable to skin and cause trouble breathing when inhaled. Bio-control methods use one living organism to control another and current bio-controls include broom leaf beetle for broom and the Californian thistle gall fly for Californian thistle. Typically, bio-control requires importing and releasing organisms from the plant’s native habitat. The project is aiming to secure Environmental Protection Authority approval for the release of new biocontrol agents for at least three of the six weeds. McKenzie says there are 15 regional councils co-investing in the project. The Department of Conservation is also engaging in the work. MPI director of investment programmes Steve Penno says by adopting what has worked in previous bio-control programmes, progress would be accelerated considerably.
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16 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
More food, more sustainably Hugh Stringleman hugh.stringleman@globalhq.co.nz NEW Zealand needs to press its claims for food production sustainability through the APEC (Asia-Pacific Economic Cooperation) forum as a precursor to trade talks. After covid-19’s devastating effects on economies in the region, the resiliency of food production has taken on new meaning, speakers at a Fonterrahosted Live with Business session of APEC 2021 said.
...crop and animal production accounts for one-quarter to one-third of total world greenhouse gas emissions, so our food production methods must change. Matt Kovac Food Industry Asia Keynote speaker and Food Industry Asia executive director Matt Kovac says the number of people around the world without adequate nutrition had grown from 800 million to over one billion because of covid. “By 2050, the world’s population will have grown above nine billion
and more food will be needed,” Kovac said. “And yet, crop and animal production accounts for onequarter to one-third of total world greenhouse gas emissions, so our food production methods must change.” Sustainability was about the methods of food production that are non-polluting, conserving non-renewable energy, economically efficient and safe for workers, communities and consumers. Kovac says food production and environmental damage were often traded off, but there was no clear way of comparing the footprints of different foods. Economies needed collaboration between public agencies and private companies to tackle the big food production and sustainability issues. Individuals he called boundary ambassadors are needed to build trust around shared values in different world views. “APEC has to bring these people together and break down needless bureaucracy, not just in governments but large companies also,” he said. “These people are needed to work on solutions that future generations will be eternally grateful for.” Fonterra chief executive Miles Hurrell says the APEC region needed to work quickly to find sustainable outcomes for nutritional needs.
ADAPTATION: Dairy farmers do not have many ways of reducing their carbon footprints, Golden bay farmer Corrigan Sowman says.
In the past 18 months, world science has pulled together to find covid-19 vaccines. “Imagine if we had the same focus and resources going into finding ways to reduce emissions. We would have it solved in no time,” Hurrell said. MFAT deputy secretary Vangelis Vitalis says the NZ Government was putting together a food security roadmap through to 2030. The 21 APEC economies will
work together on sustainability of food supplies in the region. The difficult issues to be tackled include climate change, water use, food loss and wastage and trade protectionism. Vitalis says NZ would concentrate on the use of digital platforms to drive sustainability, production systems, trade and protectionism, women’s roles in agriculture, biodiversity, climate change and water quality.
“APEC is the ecosystem from which we derive our trade rules and our growth and prosperity,” Vitalis said. “APEC is not a free trade agreement and we should be glad that it is not. “Free trade agreements can take years, whereas APEC is agile and responsive to the crisis.” Vitalis says NZ had agency across the region to affect and shape the discussions about food sustainability. “It is crucial that we are engaged and we are seen as interested and constructive,” he said. Fonterra Sustainability Panel chair Bridget Coates says consumers and investors in primary production are the same people and NZ has a huge opportunity to validate its sustainability credentials. She spoke of enormous goodwill among farmers to their land and their animals, and where necessary to make changes to their productive systems. The undertakings of the Climate Change Commission must be taken very seriously as NZ’s commitment to the world. Golden Bay dairy farmer and former Nuffield Scholar Corrigan Sowman says farmers didn’t have many levers to pull in modification of systems. “In the short-term, the challenges might be somewhat painful,” Sowman said. “It might mean shrinking our productivity.”
Milling wheat crop sowing down by almost 30% Annette Scott annette.scott@globalhq.co.nz COMPETITION concerns have spooked New Zealand bread wheat growers as they challenge worrying buying practices. Uncertainty over restrictive new buying practices and competition from the feed wheat industry has seen growers cut back on sowing milling wheat. Federated Farmers arable
industry chair Colin Hurst says farmers are not being incentivised to grow milling wheat and are voting with their feet by switching to other crops. A recent survey reveals milling wheat crop sowing is down almost 30% on last season. “It’s worrying that buying practices we believe may be anticompetitive, coming at a time when growers are able to receive better prices for animal feed
wheat, may result in NZ becoming more reliant on imported milling wheat for a staple food,” Hurst said. Feds is keen to discuss the situation with the Commerce Commission and has also approached Commerce Minister David Clark. In recent times, there have been three buyers purchasing NZ-grown milling wheat for local flour mills. This year, just one agent is
handling the purchase of milling wheat for two of the buying mills that Feds understands represent up to 60% of the homegrown product. Of further concern is that the agent owns one of the mills. “We think government should be interested in this situation, given the NZ crops and seeds sector has raised gross revenue from $655 million in 2017 to $940m last year, and while New
Zealanders indicate a will to support locally grown produce,” Hurst said. “For a staple like bread, surely we want to encourage competition. “We had been steadily growing local production up to 110,000 tonnes, making us more resilient to disruption, but clearly growers are currently not being incentivised to grow milling wheat.
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News
18 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Council praises farmers’ compliance rates Gerald Piddock gerald.piddock@globalhq.co.nz THE Waikato Regional Council has praised the region’s dairy farmers for a significant improvement in effluent compliance for the 202021 milking season. The number of dairy farmers found to be significantly noncompliant in the country’s largest dairy region has nearly halved, which the council says reflects the dairy industry’s commitment to addressing its environmental issues. The council inspected 1172 farms last season over the 12 months from July 2020, of which 81 (7%) were found to be significantly non-compliant. In the previous season, the council inspected 820 farms and found 102 (12.4%) had significant non-compliant issues. “We call it as we see it and on the face of it, the past 12 months there’s been a really good improvement,” regional compliance team leader Patrick Lynch says. “I don’t think we would have to go back too many years to where significant non-compliance was nearly 20%. “I think the last year to us was the most significant step in improvement. We got to a good
number of farms and across the board, a significant reduction in significant noncompliance.” The number of fully compliant farmers has lifted almost 2.5 times, from 176 (22%) in 2019-20 to 425, or 36%. Around 57% (506) farmers had minor breaches of compliance, down from 67% the previous season. The bulk of these breaches are for technical issues, such as a lack of confirmation of a sealed effluent pond. It shows there was still plenty of scope for farmers to further improve their compliance, Lynch says. The council also concluded 15 prosecutions in the courts, but these were all based on issues related to previous years. The improvement in compliance meant the council had initiated fewer prosecutions than previous years. While the result is by no means perfect – the improvement made by farmers had to be acknowledged, Lynch says. The higher rate of compliance also allowed the council to inspect more farms than last season, which is more than the previous season because less time was spent being tied up with noncompliant farmers. The improvement was the result
I think the last year to us was the most significant step in improvement. Patrick Lynch Waikato Regional Council
BETTER: Waikato Regional Council inspections have shown that the number of fully compliant dairy farmers in Waikato has jumped from 22% in the 2019-2020 season to 36% in the season just finished.
of farmers investing in better onfarm infrastructure and properly managing that infrastructure, rural compliance team leader Stuart Stone says. The mild winter weather last season may also have been a factor. “The investment in that infrastructure is awesome, but also the farm owners – the behavioural change – they are utilising their systems better and
to their full potential.” Dairy companies had also stepped up and were better supporting farmers. There was greater collaboration now between council and these companies, he says. Stone says poor effluent storage was the biggest issue among the significantly non-compliant farms. The yearly inspections include re-visiting 304 farms that were
either non-compliant the previous year or other farms the council classifies as high risk because of its effluent storage system. “We have had a big improvement in the high-risk area. Of the high-risk sites, 36% of them were fully compliant, 14% of them were significantly noncompliant.” Stone says this was a significant drop from the previous year. Many of these farms had invested in new infrastructure, which had reduced the risk of spillage. Farmers are also manging to remain compliant despite the widespread staffing shortages caused by the border closures, Stone says. “Farm owners are out there milking the cows and it’s a big effort to do what they have done with fewer staff.”
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News
20 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Investors back regen farm Colin Williscroft colin.williscroft@globalhq.co.nz A SYNDICATE of private investors is backing what it sees as the future by investing into a farm that’s being run on regenerative principles. The Future Farming syndicate has been created by Napierbased investment management company Tremain Capital. Owner Chris Tremain says the company started out investing in commercial properties, which still underpins much of what it does, but more recently it has moved into horticultural and agricultural investment opportunities, one of which is Greg and Rachel Hart’s Mangarara farm in Central Hawke’s Bay. He and Greg have been friends for more than 30 years, so he was aware of Mangarara’s regenerative approach to farming and Greg’s vision for the future. He also knew that Greg was looking for some external investment in the farm and that Tremain Capital’s limited partnership model could be an opportunity to provide that, which led to the establishment of the syndicate. There are seven investors involved, some of who were already connected to the farm and others who were not but who were part of the Tremain Capital’s wider investment community. Because of the syndicate’s model its members have to be wholesale rather than retail investors. To qualify for that, investors have to meet criteria set by the Financial Markets Authority, including having already invested in a range of financial products for a period of time of their own accord.
Tremain says like all investments there’s an element of risk and the returns available are different to other opportunities. “Many of our investors are looking for a more meaningful investment within their portfolio. The investment into Mangarara will help to restore the land, improve animal health and support the wider rural community’s health,” Tremain said. “The investors are a mix of relatively high net worth people who want to be involved in an investment that can help shape the future of New Zealand farming.” He says, for these clients, profit is just one driver amongst a range of other holistic goals, including soil, animal and people health. “In addition to running a profitable farm, there will be an accommodation dividend so we’re establishing a partners’ cabin on the property, which will be built over the next couple of years,” he said. “And there’s a produce dividend, so part of the return profile includes receiving produce off the farm every six months or so.” There will also be dividends when the business can support this cashflow, along with any capital value appreciation over time. Greg says he got involved for a number of reasons. “It has given us the ability to get rid of all our bank debt and allowed us to get some cash out of the farm as well as adding capital to the farm business, which will be used for further development,” Greg said. “It also brings the expertise of Tremain Capital, who have
VALUED CONTRIBUTION: Greg and Rachel Hart have welcomed the input of private investors in their Central Hawke’s Bay farm.
They also want to be part of something that’s growing and improving our environment and our planet. Chris Tremain Tremain Capital obviously been very successful in a number of their businesses. “There’s always plenty of room to improve the business, with our sales and marketing, and business strategies. Although they’ve only been in this for a few months now, it’s exceeding their expectations. “We’ve had challenges coming out of the second pretty dry summer/autumn in a row but
no longer do you feel alone as a farmer dealing with these issues,” he said. He says the extra layer of support helps to make decisions based on sound investment principles rather than emotion. It also brings discipline to the farm’s management, particularly around budgets and reporting. “Having these people involved with our business, both as support and to help make sure the right systems are in place, like good business management processes and structures, is really beneficial,” he said. Tremain says this type of investment won’t suit everyone and like all businesses, there will be tough times. The investors have a clear understanding of how it works and Greg has set up a WhatsApp group chat, so they can be engaged on a daily basis with what’s happening on the farm. He says for most of those
involved the syndicate is a relatively small part of their investment portfolio. “Of course they want to make a profit but I’m increasingly seeing members of my investment community wanting to have some investments that have a social and environmental aspect to them,” Tremain said. “They also want to be part of something that’s growing and improving our environment and our planet.” He says in terms of the word regenerative, almost every New Zealand farmer is on some part of the journey towards it. “Everyone is trying to improve their farm and leave a better legacy for their kids or for the future, but I think what the regenerative movement is helping to do is better define soil, animal and farmer health for both the rural community and their customers,” he said. “It’s certainly got a big future.”
O’Connor applauds hort industry’s efforts Gerald Piddock gerald.piddock@globalhq.co.nz AGRICULTURE Minister Damien O’Connor has paid tribute to the horticulture industry for its work over the past 18 months, which has been one of the toughest periods the sector has had to endure. He thanked the industry for its work at Horticulture New Zealand’s annual conference at Mystery Creek, as it battled chronic worker shortages and adverse events. The physical and mental wellbeing of growers had been put to the test over the past 18 months and he thanked growers who had supported others struggling at that time. “That’s the way we will get through this,” O’Connor said. He says there are 60,000 people working across the horticulture sector and labour shortages will continue to be a challenge; New Zealand was unique in that it has
TRYING TIMES: Agriculture Minister Damien O’Connor says covid-19 and adverse events had made for a tough year for fruit and vegetable growers.
the highest reliance on migrant workers per head of population in the OECD.
“It does leave us exposed ... in international events like covid. These events unfortunately are likely to occur in the future,” he said. The recent announcement to allow workers from Tonga, Samoa and Vanuatu for quarantine-free travel will take some pressure off the labour shortages. To critics who said it was too late, O’Connor says the world was still very much facing covid. “Fiji has not been so lucky and any covid introduction into those islands will be devastating. We have been hard-nosed in ensuring there is proper protection for that two-way travel,” he said. While the Government will continue to support growers needing RSE workers, he says it needed to think about making a longer-term worker transition so it was less reliant on these workers. On trade, O’Connor says they are making progress in free trade agreements (FTAs) with the UK and EU. He hoped to have further
news on the agreement by the end of this month. “We always have high agreement on your behalf, but ultimately it is a negotiation. We have the advantage of the UK needing to reach out to the rest of the world to re-engage through formal trade agreements,” he said. NZ was next in line for a trade agreement after Australia and had a different set of interests to that country. “Let me reassure you that your interests have not been forgotten, put to one side or minimised in any way,” he said. It was similar with the EU trade agreement, where the two parties are like-minded and share the same values. This was particularly the case around climate change and they were determined to deal with people who are making efforts to reduce emissions. “We can give them that assurance and that gives them some comfort,” he said.
Any agreement would not undermine the EU’s local producers or swamp its market with products. “A trade agreement with the EU is one that will offer value for all of us and it’s not about competition. I’m sure we will get there,” he said. On the Commerce Commission’s supermarket report, O’Connor said it had exposed a few realities and the Government was considering the report very carefully. “For individual growers, it’s been impossible for them to speak up. I can assure individual growers that I will ensure your individual interests are upheld. Sponsorship doesn’t necessarily give you the right to suppression,” he said, in reference to supermarket chain Countdown being one of the main sponsors of the conference. “We have healthy competition across our economy in all areas of supply and demand and the Commerce Commission’s role is to ensure that.”
AginED Ag ED
#
FOR E FUTURIA G R R S! U PR EN E
Volume 69 I August 16th, 2021 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz/agined This information from NZX Dairy shows Global Dairy Trade prices for various dairy products.
STRETCH YOURSELF: 1
The Aclands have several facets (aspects) to their farming systems. Can you list all of these?
2 What lies behind the 100 year vision that the Aclands have? 3 What are the proportions of stock units from each facet of their farming system (i.e. how many sheep, finishing cattle etc.)? 4 Both Kate and David believe that off farm involvement is very important. What do each of them do outside of their farming business?
Have a go: 1
Go to https://farmersweekly.co.nz/section/ other-sectors/on-farm-story/they-grab-everyopportunity
5 Why do Romney sheep suit their farming practice?
6 The farm is unirrigated, necessitating keeping stocking intensity lower. Why is this? Watch the Onfarm Story of David and Kate Acland “We farm with a hundred year vision ” and read the 7 Mycoplasma bovis has impacted the Aclands in accompanying article “They grab every opportunity ”. several ways. How has it changed their farming system? 2 Where in NZ to David and Kate Acland farm? 3 How many hectares is Mt Somers Station?
8 Two thirds of their hoggets go to the ram. What do they grow on farm to help these reach their required weights?
PARASITES AND PESTS Have a go at finding the pests and parasites listed below in our word find. Do you know what each of these pests and parasites are and the problems they can create within the food and fibre sectors? Do some research on any that you aren’t familiar with. There are many interesting facts about them, how they got here and the problems they create. Wasps
Mustelids
Potato tuber moth Thrips
Black Field Cricket Yellow Bristle Grass
Velvetleaf Giant Buttercup
Pukeko
Rabbits
Ticks
Tapeworm
Liver Flukes
Leafrollers
Black Beetle Possums
1 On the graph, in what months did prices peak? 2 What dairy product is valued at the lowest in US$/tonne? 3 What dairy product is valued at the highest in US$/tonne?
Diamondback moth
Codling moth
Clover Root Weevil
Aphids
Have a go:
Mice Lice
Roundworms Lung Worm
Research is casting doubt on the economic value of drenching ewes with long-acting products. A co-funded study by AgResearch and B+LNZ has looked at the longer-term immunity of animals treated with longacting drenches compared with those that aren’t. To read more head to https://beeflambnz.com/newsviews/value-long-acting-drench-treatments-againunder-spotlight?fbclid=IwAR1XjF-7Qe5R1dmcT77lBn
4 How are dairy products tracking compared to a year ago?
STRETCH YOURSELF: 1 Which product has seen the sharpest decline over the last few months? 2 Why do you think prices reflected on Global Dairy Trade are so important to the New Zealand dairy industry? 3 Do some research, what does WMP, SMP and AMF stand for? 4 Cold and wet weather across the country has slowed pasture growth. How might this affect the supply of NZ milk?
Newsmaker
22 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Female leaders vital to sector Agribusiness entrepreneur Bridgit Hawkins says the gender bias in primary sector leadership means it is missing out on a wealth of talent vital to its future goals. Colin Williscroft reports.
A
BOUT 80% of those who hold senior leadership roles in New Zealand primary sector companies are men, despite women making up more than half of graduates in agricultural fields. A new project aims to challenge that. Agribusiness entrepreneur Bridgit Hawkins has launched Fields Of Change to begin what she describes as a long-overdue conversation about women’s leadership in agriculture, to find out why the sector is missing a generation of women business leaders, which will affect its ability to remain world-leading. Hawkins, who was raised on a Reporoa sheep and beef farm, is the founder of agricultural technology solutions company Regen and chief sustainability officer at CropX Technologies. She says diversity and female leadership is vital in cultivating a sector that is responsive to challenges and opportunities. The lack of women in leadership roles today, she says, is the same as it was when she started her career after graduating from Massey with an ag science degree in the late 1980s. “There’s fundamentally something that’s not happening in terms of how our major organisations are structured and the type of programmes they have in place. Nothing is different now from the 80s and 90s,” Hawkins said. “But nothing will change by itself. We need to ask, ‘why is that?’ “It’s highly unlikely the reason
there are very few women in senior leadership is that they don’t want to be there, or that they’re not confident enough.” Hawkins says more than half the places in graduate programmes run by large primary sector companies are filled by women, so where do they go? “We need to understand that to ask what needs to change to ensure more of them actually have a career path right through to the top of organisations,” she said. “We must advocate for better opportunities for women, who tend to disappear within our agribusiness sector at middle management, hitting a ceiling and missing out on crucial pathways to executive leadership opportunities, where they could create positive change and have real impact in day-to-day operations. “If we accept the status quo is okay, then we are leaving out 50% of the talent pool to help lead our businesses into an unprecedented time of change.” She says the idea behind Fields of Change is to initially raise awareness about the issue, to start a conversation and open up a place for women in the sector to come forward and share their experiences. “But I’m also very keen to connect with any of the organisations in the sector that want to talk about it and ask what they can do,” she said. “How can they go from where they are today to a place where they have a more diverse workforce from the bottom right through to the top; to work with
LIFE’S A
BITCH
MUCH TO GAIN: Agribusiness entrepreneur Bridgit Hawkins says the primary sector will benefit by having a greater diversity of people in senior leadership roles.
thinking about how you approach complex, challenging problems. “And we haven’t got it, so we’re not going to be doing as well as we could. “This project is just saying the status quo is not our future, we need to change it. “Maybe we should have looked at this 10 or 20 years ago but we
didn’t, so let’s look forward now and ask what we need to do to make positive change that will benefit all businesses and the wider sector.”
MORE:
To find out more, go to fieldsofchange.org.nz
MEL +
PARSONS
D BRAN
NEOW W SH
them and support them to look at what the barriers might be in their situation, or what needs to be different – what new programmes they might need to implement to achieve that.” It’s all about taking collective action and as part of the process, Hawkins plans to work with a wide range of people and groups like the Agri-Women’s Development Trust. “I’m not for a moment saying I’ve got the answer. What I am saying is I can be part of elevating the issue,” she said. “I’ve got an opportunity to put significant time into this and keep it moving, to be a connector between different groups and different initiatives. “I’ve spoken to many people leading up to this and I’ve not had a single person say it’s a bad idea. “What I’m aiming to do is find a place to collect information and experiences and to then ask, ‘Out of all these different ideas people have got, what’s some positive action that we can take?’” She says that while women hold some board roles in agribusiness, their impact is limited as that is not where financial decisionmaking lies. “Looking at some of the major companies in the primary sector, only a little over 10% of the CEOs, and only just over 20% of the senior leadership teams are women. That’s pretty poor,” she said. “It isn’t just about saying we’ve got equal rights so we should be sitting there. It’s about saying diversity is incredibly important to innovation, to strategy, to your
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FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
23
Science-backed irrigation decisions An irrigation insight programme is providing farmers with information enabling increased efficiency in water allocation, while also helping with compliance requirements. Annette Scott reports.
A
FIVE-YEAR collaborative project involving the National Institute of Water and Atmospheric Research (NIWA) and a pilot group of Waimakariri farmers has seen a shift from a “just-incase” approach to irrigation to a “justified” approach, where landowners use real-time data and forecasts to make science-based irrigation decisions. NIWA hydrologist Dr MS Srinivasan says the study, funded by the Ministry of Business Innovation and Employment (MBIE), has created a close bond between the original five farms involved in the study and his team of researchers, particularly in terms of shared learnings.
I was confident in the decisions we had made because we had the facts to back everything up. Julie Bradshaw Farmer “It has shown us how farming and science can work effectively together,” Srinivasan said. “We have been adapting our models and information tools as we go, keeping an open mind and making sure farmers’ voices are an equal part of the discussion. “Having practical input is vital for us.” Over the five years the study has grown to include 20 farms, as landowner interest in using the practical data tools has grown.
“Twenty farmers in the study have been able to use the information we have gathered, both operationally and for the development of their detailed farm environment plans (FEPs) and audits, which makes the data particularly useful for them.” While the five-year study will end in September, the group has agreed it will continue to work together as they have learned so much from each other,” Srinivasan said. Instead of providing complex data reports, NIWA has developed easily interpreted visual information and regular weather forecast outlook videos throughout the project. Farmers can log on to the website and see their current and historic soil moisture data, along with a customised local forecast for the next five days and longerterm predictions in the weather outlook videos. Throughout the programme farmers have been provided with daily data including measured rainfall, soil moisture, soil temperature, drainage and estimated evaporation, as well as two, six and 15-day rainfall and weather forecasts. This data is available in both mobile and desktop systems in an easy-to-read graphical format. Soil moisture is measured at eight locations vertically down the soil profile, 10 centimetres apart, which keeps track of the amount of water and the depth the water reaches in the soil to help farmers assess how much water is needed in the coming days. The soil moisture sensors provide an indication of how wet or dry the soil is through the top 30-40 centimetres, while the lower levels help to identify occurrence
SHARING KNOWLEDGE : Dairy farmer Julie Bradshaw discusses results with NIWA hydrologist Dr MS Srinivasan at a weather station on her North Canterbury farm. Photo: David Allen
of drainage below the plant root zone. Dairy farmer Julie Bradshaw says a phone call from Environment Canterbury Waimakariri Land Management led to the formation of the initial group of five farmers. At a recent gathering of the group, which also included neighbouring independent irrigators and primary industry specialists, Bradshaw shared the learnings that both farmers and scientists have gained. “We’ve had a Cust Water Users’ Group for about 20 years now, and this project gave us the opportunity to formalise our approach to data gathering for irrigation,” Bradshaw said. “Everyone has been open to sharing their data and we can see
that we are all compliant in terms of water takes and usage.” Bradshaw says gaining the scientific knowledge of what’s happening on-farm has been a real game-changer. “Being able to have comfortable, open discussions about irrigation out here on our farms means a lot to us,” she said. Having a whole package of data available in an easily digestible format provides the group with a good overview of each irrigation season and enables efficient water allocation, while also helping with compliance requirements. “We had a lot of restrictions over the last irrigation season, but knowing what is ahead and being able to see what’s going on in terms of the soil moisture data and weather means that we have
been able to provide everyone with enough water to manage their farms,” she said. “Providing the audit data is simple as everything is in one place. “My auditor was really impressed with what we were able to produce and I was confident in the decisions we had made because we had the facts to back everything up.” Both NIWA and the farmers involved in the pilot project hope to secure additional funding to extend the programme so they can gain further insights into the production and economic benefits of justified irrigation. The project was selected as a finalist in the science and research section of the Primary Industry awards.
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Opinion
24 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
EDITORIAL
Urgent need to curb emissions
T
HE Intergovernmental Panel on Climate Change’s sixth assessment report makes for grim reading. But we didn’t really need a 4000-page report to tell us that climate change was happening, we can see it by looking at Hawke’s Bay, Canterbury and Marlborough, the western United States and Germany. What the report does do, is light a fuse under governments worldwide to move faster to curb emissions. When that happens there will be opportunities for NZ food producers, as long as they continue on a clear path to greater sustainability. Leaders of some of our trading partners will look to subsidise their farmers to reduce emissions. They’ll want to protect their primary industries by demanding nations that sell them food meet those targets too. Our efficient farming systems should be an advantage, but there’s more to do. We need a clear plan to pivot away from burning fossil fuels in processing. Methane has been highlighted as a target for short-term climate gains. The days of running the line that stable methane emissions equal net zero appear to be over. Other New Zealanders and our trading partners simply won’t buy that. Some people point to our miniscule contribution to global emissions and say that anything we do won’t make much difference. They ask why we should be the first movers when it comes to tackling agricultural emissions. But no other country has an emissions profile quite like ours. We’re a rich country that relies on food exports to make our way in the world. Why wouldn’t we want to protect that income stream? Not doing so is not an option. If we want to ensure all of New Zealand benefits from the export dollars our food production systems bring, we must make sure that food is fit for purpose in a world that will increasingly demand more in terms of sustainability. The opportunity to thrive is there. We need to take it.
Bryan Gibson
LETTERS
Be careful of involving the Government YOUR article HortNZ backs code of conduct call follows a recommendation from the Commerce Commision (CC) after their study that found an imbalance of bargaining power between growers and the two major buying chains. The inference is the grocery chains underpay suppliers. The CC recommends a “mandatory code of conduct” to strengthen suppliers’ bargaining power. It is not clear how such a code would force the buyers to pay more for the produce of the growers, except perhaps to have a mediator, such as an agency or ombudsman. There is no indication who would pay that extra cost. On the other hand, the CC has pointed out shoppers are paying far too much for their groceries.
Ultimately, the recommendations will be left to the Government to action. Oh dear. How will our gallant leaders resolve this conundrum? Take money from the grocers to give more to the growers and also assure the millions of voters, sorry, mum and dad shoppers, that their food bill will be going down? I would suggest our horticulturists be careful what you wish for. Or, more generally, the wise words of a United States President might apply. The most frightening words in the English language are: “Hi, I’m from the Government and I’m here to help you.” R Dawson Papakura
An insult to our democracy I WAS surprised and angered by government running television advertisements plugging its Three Waters ‘reform’ agenda. Over the years, I’ve come to not be surprised by deceit and deception by politicians and governments, but the television advertisement was a brazen, bold and dominantly arrogant vehicle to ram through the Government’s water ‘reform’ agenda – without fair debate. As a swinging voter who has voted for several parties over 50 or so years, I viewed the advert as an insult to the public and democracy. To rub a good dollop of salt on the wound (ouch) my taxes and yours – the public purse – are
paying for the substantial costs of the TV ads. But really the actual cost is secondary to the principles around democracy and fair debate. My use of inverted commas around ‘reform’ is not because of a wobbly, erratic typing finger, but directly related to so-called ‘reforms’ by governments of recent decades having been – almost all – utter failures. Think health, electricity, local government, economic and state-owned enterprises, for example. This Labour government is clearly out of control, like a juggernaut, insensitive, short on principles, ethics and totally forgetful of its statutory democratic duty as an elected government – and deaf to the public’s views. Never mind, the Continued next page
Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Carmelita Mentor-Fredericks editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 027 298 6127 colin.williscroft@globalhq.co.nz Annette Scott 021 908 400 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Gerald Piddock 027 486 8346 gerald.piddock@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com
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Opinion
FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
25
Respect science and experience
7%. Fortunately, I have kept all the files. This was a science-based trial carried out on 12 farms using randomised paddocks, randomised cows and two milk vats, each with their own supply number, so that a ‘control’ and ‘treatment’ herd could be compared. It ran for four years. The funding participants were NZ Dairy Group, DRC, LIC and AgResearch Grasslands. The plan was to provide an additional 4kg DM/cow/day for 60 days, evaluating four treatments. These were feeding maize silage, growing Barkant turnips, using N-boosted pasture-grazing for a longer (30-40 days) summer round and grassline pastures. The grassline pastures, sown under the supervision of DSIR Grasslands, were 22kg/ha of Advance tall fescue, 1.5kg of Kara cocksfoot, 3kg of Maru phillaris, 1.5kg of Kopu white clover, 1.5/kg of Prestige white clover and 3kg of Colenso red clover. What happened? There was much interest in this work and the N-boosted pasture/ longer summer rotation treatment proved the most economic and practical for Waikato dairy farmers. It is now universally practiced on dairy farms south of Auckland and north of Taupō. The trial results were published in a total of five papers – two Ruakura farmers conference papers, two Grasslands Association papers and one Society of Animal Production paper. I suspect the
regen ag advocates have read none of them. Of the treatments, the alternative pastures option was the most disappointing. Of the three farms who were in the trial, two did not last a year and pulled out. The pastures were slow to establish, lacked vigour and were difficult to manage. They failed. The third farmer was determined to make the fescue-based pastures work and soldiered on. Eventually, he gave up and went back to perennial ryegrass. Based on this, it seems the odds of multispecies pastures competing with ryegrass/white clover are remote, and it is irresponsible to recommend them for Waikato, and possibly other environments. The other point is that the availability of the AR 37 endophyte has improved ryegrass persistence and use of deeperrooting chicory/plantain has provided economic summer feed. I have some other major concerns on several other points. Virtually all their pasture management practices are unsupported by science and practice. They fly in the face of the ‘Pasture Plus’ approach used by the majority, which is grazing from 3000kg DM/ha to residuals of 1500kg DM/ha during the milking season to maximise the intake of ME and pasture growth rates. Their bale feeding technique involves deliberately ‘wasting’ 30% of hay bales on the premise that it is good for the soil. I know of no farmer who would go to the trouble and expense of making hay, then deliberately waste a third of it. And then there are the facial eczema implications of the recommended pasture management systems. The high pre-entry pasture covers and residuals will provide the ideal substrate for the fungus, which could lead to significant stock damage and losses. I wouldn’t want that on my conscience. In an attempt to ‘open my mind’, I attended a regen ag field day in autumn on a Miraka dairy farm at Atiamuri, and have also read about the farm at Norsewood visited by the PM and sponsored by Calm the Farm. The two farms seem to be similar; both once-a-day milking, with low stocking rate operations. While they may have a low carbon
There are several references arguing that production forests are a more effective way of offsetting greenhouse gas emissions than permanent forest sinks, thanks to having wood as a substitute for fossil fuel intensive roles. The IPCC made this point in its Fourth Assessment Report (2007) and in a 2019 special report. Now, we have a recent article in Nature Communications supporting this argument for Britain (Foster, Healey, Dymond & Styles). If production forestry is more effective, perhaps the ETS needs adjusting. The case for the five-metre
canopy forest to qualify for the ETS is, for me, a “no-brainer”, as Piers Maclaren illustrates, (Farmers Weekly, July 26). Grow your sub 5m species by all means, but make sure you are also heading for 30% canopy cover with taller species. Always remember that if you haven’t got significant or very significant amounts of vegetation, you are very unlikely to have significant carbon sequestered. In my own case, 110ha of production forestry under sustainable harvest probably gives me a total methane offset for 18002000 stock units, but not by much. I remain very sceptical of Beef +
John Dawson
I
N THE June 2021 Dairy Exporter, Bruce Thorrold of DairyNZ comments on the regen ag philosophy. He makes the point that parts of the regen ag mantra are aligned with the Dairy Tomorrow strategy – “Let’s farm in ways that make things better, with a spirit of continuous improvement, a spirit of trying new things, a spirit of taking a holistic view of your farm, your community, your business, your people, your animals and your environment”. I think we can all buy into that. Innovation and sharing ideas has always been the basis of dairy industry improvement. You can attend any discussion group, conference or field day to confirm this. In that same article, reference is made to the practices employed in regen ag systems as promoted in the Manaaki Whenua white paper published in February this year, and it is time someone challenged them for being impractical, sometimes nonsensical and generally unprofitable. I will comment on just a few of the practices, from the perspective of having spent 49 years in the dairy industry as a MAF farm advisory officer, dairy company executive and for the past 22 years, as a private farm management consultant based in Waikato. The perspective is based on dairy farming in the Waikato/Central Plateau area. I don’t have a problem with the Merino farmers using the regen brand – they are already grazing extensively at low stocking rates and mainly on unimproved hill country. Very different to highfertility dairy farms. Regen ag advocates make much of ‘diversified’ or ‘multispecies’ permanent pastures, despite the fact that over 95 % of New Zealand’s milk is produced from ryegrass/white clover-based pastures these days, with chicory/ plantain added. I am intrigued by the assertion that these multispecies pastures will establish and produce milk at our current levels. In the late 90s, I was chair of the More Summer Milk project, which evaluated the management options for reducing the decline in Waikato’s post-peak milk production from 14% a month to
Continued from previous page public will pay the bill. But come the 2023 election, this Labour government should be punished at the polls for its arrogant disdain of democracy. Tony Orman Blenheim
ETS may need adjustments THERE are several points that are rather lacking and I think should be included in the current debate over climate change, forestry and carbon sinks.
The
Pulpit
PERSPECTIVE: Waikato-based farm consultant John Dawson weighs in on regen practices he believes are impractical, sometimes nonsensical and generally unprofitable.
footprint, I reckon production per cow and per ha places them in the bottom quartile. In the Norsewood operation, there were no financials supplied. I note that our own jointly-owned 500cow dairy farm at Marotiri near Taupō, with similar contour to the Atiamuri farm, produced 90% more milksolids per ha (almost double) and 42% more per cow using System 3. The financial comparisons would be graphic.
It is evident that moving to regen ag will have a huge effect on milk production. In my opinion, wholesale adoption of regen ag amongst it’s suppliers could drop the dairy company’s milk intake by a third. It is evident that moving to regen ag will have a huge effect on milk production. In my opinion, wholesale adoption of regen ag amongst its suppliers could drop the dairy company’s milk intake by a third. So the dairy companies need the milk, the country needs the revenue and the farmers need the profits. And I think the authors (about 70 of them ) have misinterpreted the iwi position on regen farming. I have been heavily involved
Lamb NZ’s claims about levels of offset in the industry as a whole. While it may be possible to play the ETS and/or confuse the officials running it, it is worth remembering that it is difficult to confuse the atmosphere over the chemistry and physics of the weather and climate processes. Recent events suggest to me that Mother Nature is reading the changes very clearly. I think there is quite a lot we can do with forestry to reduce our carbon footprint but emphasising, where feasible, production forestry should have both a bigger effect on offsets, while also maintaining a
for 21 years with iwi farming businesses; most of them large and in the Tainui, Te Arawa, Tauaiti, Raukawa, Pouakani and Tūwharetoa areas. For these businesses there is an outstanding KPI, emphasised at all of the AGMs. And that is the financial return to the owners. It dwarfs everything else, and is expected to be delivered while respecting the kaitiakitanga of the whenua. Nothing else comes close. Just last month, I was asked by a Tūwharetoa Trust to speak at their board meeting on what they should do about regen ag. I told them that they were already managing high soil carbon levels and that they needed to respect and not abandon the science that got them to their current profitable and sustainable position. I think that advice applies to all farmers. Respect the science, respect your experience, know what works. Beware of people, especially those with no skin in the game, advocating unvalidated practices.
Who am I? John Dawson is a registered farm management consultant.
Your View Got a view on some aspect of farming you would like to get across? The Pulpit offers readers the chance to have their say. farmers.weekly@globalhq.co.nz Phone 06 323 1519
vibrant part of our economy. *To calculate the offset area required I considered the amount of methane that will be present in the atmosphere at steady state and then calculated the equivalent carbon dioxide. Steady state is only reached at about 60 years or more when, after 5-6 half-lives, the initial methane becomes less potent than carbon dioxide. Incidentally, this may all be a bit hypothetical for me, as most of my forestry is pre-1990 and not eligible for the ETS. Denis Hocking Bulls
Opinion
26 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Climate reaction lacks logic Alternative View
Alan Emerson
THE latest report from the Intergovernmental Panel on Climate Change (IPCC) makes for interesting reading. It tells us that “unprecedented” human-made heat is already here. Armageddon is nigh, but we can do something about it if we’re quick. The report outlines some interesting scenarios and options and yes, I believe we have to act. Climate Change Minister James Shaw issued a statement telling me that “every sector of the economy, every community and almost every government agency and their minister will be needed to avert a climate crisis”. What they must do, he didn’t say. The Forest & Bird reaction was interesting in that they want to remove fossil fuels from our energy system, bring agriculture into the ETS and eradicate browsing pests. In addition, they want the restoration of forests and wetlands, along with carbon stocks, in the sea. Greenpeace was, if nothing else, predictable, saying the Government must act swiftly to cut emissions from New Zealand’s biggest climate polluter, agriculture. As usual it was
BAND AID APPROACH: Alan Emerson believes the Government offering up simple, easy, feel-good solutions to climate change is playing with the problem and not fixing it.
emotive and factless. Feds made the point that farmers were well into the emissions reduction journey. President Andrew Hoggard said that “science, innovation and unblocking regulatory bottlenecks by government is needed to hasten progress”. I agree. The problem is that I like things to be logical and they’re not. I’m not a climate change denier. I just don’t believe we have a clue about how to handle it. Take the budget. Shaw waxed lyrically about the initiatives in the budget that would encourage schools and businesses to mothball the old coal-fired boiler and install an electric model. The problem is that we don’t have the storage in our lakes
to support even our current electricity demand, as the cold snap last week proved. That’s despite importing 427,000 tonnes of coal for electricity generation in just the first quarter of this year. That’s moved by ship from Indonesia to Tauranga, by road to Huntly and burned to provide the electricity for what used to be coal-fired boilers in schools and SMEs. According to the US Energy Information Administration, every tonne of coal burned releases 1700kg of CO2 into the atmosphere, meaning we polluted to the extent of 726,000 tonnes of CO2 by burning coal for electricity in the first quarter of this year alone. On an annualised basis, that means we’re putting over
three million tonnes of CO2 in the atmosphere just to generate electricity. We don’t have to, we can build more dams. The same applies to the electric vehicles the Government is encouraging. Currently we burn coal to provide the electricity to run them. It just seems stupid and an indictment on the politicians who expect us to believe their rhetoric. Then we have our old friends the Ministry for the Environment (MfE) telling us in their recent report that we’ll be increasing our population by 1.8 million, albeit in 50 years. Let’s consider that. Currently, Kiwis are each responsible for 10 tonnes of carbon each year. So, if we increase our population by 1.8 million people, we’re increasing our carbon footprint by 18m tonnes each and every year. That’s a large part of the country’s net emissions currently and makes farming’s contribution insignificant. Why would you? We don’t need another 1.8m people and I’d suggest that the carbon footprint makes it untenable, yet there is no debate on the issue. We blindly accept a massive increase in population with the resultant increase in carbon pollution while pillorying the farming industry over some short-life methane. The farmers pay NZ’s bills. A 1.8m increase in population won’t just increase the carbon pollution, as I’ve outlined, but also consider
the carbon footprint of the extra houses, schools, hospitals and motorways the country will need. As I recently wrote, I don’t believe electric cars are the answer. They’re more ‘feel good’ than ‘do good’. We have an EU study that showed that GMO crops reduce our carbon footprint. It proved that the crops would have reduced the EU’s GHG emissions from agriculture by 7.5%. It was equal to the total emissions of between 10 and 20 coal-fired power stations, so a major contribution. Why aren’t we discussing GMOs as a way of reducing our environmental footprint? It’s a proven way of doing just that. My point, as I’ve previously mentioned, is that we’re playing with the problem, we’re not fixing it. We’re offering up simple, easy, feel-good solutions. We’re adopting a simplistic local approach when what we need is a workable, long-term solution capable of getting universal buy in. With climate change we’re into ‘feel good’ and not ‘do good’. Doing good would be to stop importing coal, introduce GMOs and to not increase our population. Finally, we need a credible longterm solution that the country and all political parties buy into and not soundbite based quick fixes.
Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com
A picture sparks a thousand words From the Ridge
Steve Wyn-Harris
AUGUST 2021 was a time when a form of mass hysteria swept through the halls of New Zealand’s parliament. Psychologists prefer to use the term “mass psychogenic illness”. This episode began with the Green Party. They had begun to resent a portrait of Sir Winston Churchill that hung outside the entrance to the corridor that leads to their offices. Not because it was a bad portrait. In fact, it was a very good likeness. They resented it because of the man it depicted. Now, most people remember Churchill as the man who stood up to fascism when others just caved in. Not only did he stand up to Hitler, but after a torrid five years beat him and preserved freedom and democracy in Europe. But the Greens have other
memories of Churchill. They remember the man who was undoubtedly a racist with a strong Victorian belief in Anglo-Saxon Protestant superiority. Perhaps they also resented him for his contribution to the 1943 Bengal famine that saw two million people starve to death. He had Australian wheat bypass India for Europe and insisted India continued to export rice to fuel the war effort. Judith Collins was incensed and found it deeply offensive. Having just told her party faithful at the National Party conference that she and her team would not be distracted and be focusing on the matters that matter, she took this one by the throat and had her way with it. She claimed the Churchill painting for National and had it sent to their floor. The problem being that they had no room on the walls for such a fine piece. Something had to go. Stuart Smith pointed with a long accusing finger at the Colin McCahon painting in their foyer with the word Aotearoa written across the width of the canvass. He said he didn’t have an objection to the name itself but that it was crooked and each letter was written in a different colour.
He reckoned he could have done it himself. He also complained bitterly how Labour had sneakily put the word Aotearoa onto his passport until Tim van de Molen pointed out that it was John Key who did that. However, his colleagues agreed that it should be replaced by the Churchill painting. The Māori Party were incensed. Māori had been using the name Aotearoa for centuries and besides, admired a good colour scheme. Rawiri Waititi personally went down to the National Party foyer and collected the McCahon himself. On his return, Debbie Ngarewa-Packer looked at the painting covered walls in the Māori Party vestibule and reckoned the Dick Frizzel ‘Mickey To Tiki Tu Meke’ had to go immediately. The cultural appropriation by this Pākehā artist rubbed salt into the suppurating wounds of our pain as a people. Jacinda Ardern was incensed. Dick Frizzel is a national taonga and that particular offering was one of the most iconic images of the nation. She sent Kieran McAnulty immediately down to retrieve the piece for the ninth floor. Again, the walls were covered but a photograph had always
TIT FOR TAT: A portrait of Sir Winston Churchill became the catalyst for redecorating the walls of Parliament. Steve Wyn-Harris shares his take on how it played out. Photo: Wikimedia Commons
rankled with Labour-types. A beaming Jim Bolger was enthusiastically pumping Nelson Mandela’s hand. Not many years earlier he had been in the cabinet of Muldoon that had supported the apartheid regime by breaking the Gleneagles agreement. It was taken down. Act’s David Seymour was incensed. He said this was appalling, given the photo was of one of the greatest figures of the 20th century. People were surprised until they realised he
was talking about Mandela. He sent his MP, that even he couldn’t remember the name of, to retrieve the framed photograph. Meanwhile in the debating chamber, the Government passed two pieces of legislation while the opposition were doing their interior decorating.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
27
Easy country now makes carbon sense The Braided Trail
Keith Woodford
MY PREVIOUS article on carbon farming focused on the North Island hard hill country. If financial returns are to be the key driver of land-use, and based on a carbon price of $48 per tonne, then the numbers suggest that carbon farming on that class of country is a winner. By my calculations, sheep and beef farms on this hard hill country provide an internal rate of return (IRR) of around 2%, whereas my recent estimate for carbon farming was 9.7%. Here I extend the analysis, still using a price of $48, by looking at the easier hill country that Beef + Lamb NZ (B+LNZ) categorises as Class 4 North Island hill country. This fits between their Class 3 North Island hard hill country and the Class 5 North Island intensive finishing farms. The Class 4 hill country totals around 1.8 million effective farming hectares, according to a B+LNZ 2020 Fact Sheet. These farms average 434 farming hectares, with the land and buildings worth about $12,400 a hectare. The average return on total capital invested, which includes livestock and machinery, is around 2.5%, but this still has to pay the owner’s drawings. In general, trees don’t mind too much whether they are on medium or steep hills. It is all about moisture and light interception. Accordingly, the official Look-up Tables (LUTs) setting the allocation of carbon credits do not discriminate by slope or aspect. Land area is always measured as the equivalent flat area, as if all the land was bulldozed to a flat condition. Accordingly, a steep slope will have more sloping
surface area than a flat area, but the light interception per square metre of that sloping surface area will be less. In assessing the economics of carbon farming on this land and using the official Schedule 6 LUTs, there is only one important change needed to the figures I recently used for the hard hill country. That change is that land and buildings for this more moderate land are valued by B+LNZ at $12,400 a hectare, rather than the $8100 for the hard hill country. I also increased the land rates from $23/ha to $32/ha, but the overall effect of that is trivial. So here is the comparison for B+LNZ Class 4 hill country: under carbon forestry, the estimated IRR is 7.0%, compared to about 2.5% under sheep and beef. In response to my last article, I received numerous emails both from foresters, farmers and others. Some of the points they were making apply to both hard and more moderate hill country, and I will respond to key points here. The risk of disaster The calculations I have reported so far do not include allowance for disaster by fire, pests or disease. What happens to the carbon credits in that situation? The disaster regulations are not necessarily set in concrete yet, but my understanding is that if disaster occurs, then carbon credits take a ‘holiday’. The forest owner does not have to repay anything, but there are no more credits until the forest recovers to its previous stage, with this including replanting if necessary. As an example, I analysed a scenario whereby disaster strikes after eight years, and that it then takes another 10 years to recover to the previous state. On the hard hill country, that reduced the IRR from 9.7% down to 6.9%. On the moderate hill country, it dropped the IRR from 7.0% % down to 4.9%. In both cases, it extended the claimable credits out further into the future, with the 50 years of credits still claimable but now over a longer period. Delaying the disaster until the
IMPACT: Keith Woodford says if financial returns were all that mattered, then it is clear that current carbon prices are sufficient to justify turning much of the North Island sheep and beef land into carbon forests, but adds its full impact needs to be considered in light of its growing popularity.
forest is 20 years of age has a lesser effect. For example, on the easier hill country and assuming the same recovery period of 10 years, the IRR now becomes 5.9% rather than 4.9%. This smaller effect may seem surprising, but it is caused by the carbon credits having already substantially exceeded the initial investment by the time of the disaster. Accordingly, for carbon forestry and in marked contrast to production forests, a late-stage disaster is a lesser disaster from a purely financial perspective. Extending the benefits beyond 50 years In my previous article, I stated
In general, trees don’t mind too much whether they are on medium or steep hills. It is all about moisture and light interception.
that the benefits were only valued out to 50 years because that is as far as the LUTs extend. However, an MPI specialist confirmed in a recent webinar to members of the NZ Institute of Primary Industry Management, which I attended, that these tables will be extended once more data become available. Based on discussions with foresters, I have assumed as one scenario that the forests will continue to earn credits for another 30 years through to 80 years at 20 tonnes per annum a hectare. That is sufficiently far
off that those additional years have only a minor effect on the IRR, raising it by only around 0.1%. This is trivial in terms of the overall financial returns. The benefits of scale The advice I have received from foresters has emphasised that the LUTs are conservative. However, for forests of less than 100ha, I am told these are the numbers that must be used. In contrast, for forests larger than 100ha, the numbers to be used must come from surveys by professionally accredited forest surveyors. This obviously comes with a cost, but the additional benefits on well-managed and favourable sites can be considerable. One forester advises me that he recommends a permanent forest should be planted at 1600 trees a hectare, instead of the normal 1000. Also, there is no need to thin or prune such a forest, and this gives a further advantage over the Schedule 6 LUT numbers. The upside from doing things this way is considerable. It is a big advantage for the big boys. What happens if the carbon price crashes? I don’t expect that to happen. But if it did – let’s say that it dropped to $2, which is where it was for several years earlier this century. The financially optimal investment strategy would then be to cut down the forest and repay the credits at that miniscule price of $2, and then change the landuse back to whatever had become more profitable. This is exactly what happened some 10 years ago with big areas in the Central North Island, and also to a lesser
extent elsewhere, with the most profitable alternative land-use being dairy. Pulling it all together If financial returns were all that mattered, then it is clear that current carbon prices are sufficient to justify turning much of the North Island sheep and beef land into carbon forests. However, financial returns are not everything. To explain that a little more, the commercial world operates on the basis of maximising profits within a regulatory environment. It is up to the regulatory environment to take other things into account. Those issues include the need for export earnings, with carbon trading being essentially an internal market. There are also big issues as to whether locking up land in this way is actually the right moral thing to do. Those issues are too big to address here. However, I am likely to have more to say about those issues in the near future. The big message right now is that carbon farming is becoming a game-changer in New Zealand rural land-use. It is where the money lies. We need to think carefully about the full implications thereof.
Your View Keith Woodford was Professor of Farm Management and Agribusiness at Lincoln University for 15 years through to 2015. He is now Principal Consultant at AgriFood Systems Ltd. He can be contacted at kbwoodford@ gmail.com Previous articles can be found at https://keithwoodford. wordpress.com
RICK ALEXANDER
for the RAVENSDOWN BOARD
I will bring a life time of practical farming experience to the Ravensdown Board. Multiple years of governance experience running a large commercial multi-site healthcare organisation strongly supports my candidacy. Hard working, genuine and honest, I care deeply about the success of New Zealand’s agriculture sector. For many years I have benefited from sound management at Ravensdown and wish to contribute to the future success of the co-operative.
Rick Alexander Standing to ensure strong farmer representation on your board.
Nominator: Chris Grace Seconder: Hugh Donald Area: 5
r_alexander@xtra.co.nz
027 979 8900
linkedin.com/in/rick-alexander-52b033219/
World
28 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Strong start to the season STORE lamb sales are seeing strong demand off the back of a firm finished trade and plentiful grass. Weekly store numbers are rising as the sales season gets under way, and the dip in the finished lamb price a couple of weeks ago saw some store buyers around the primestock rings to pick up extra numbers. At Longtown, Cumbria, auctioneer John Walton sold just under 3500 store lambs on August 10, at an average of £87-£88 (about $171-$173) a head. This was £7-£9 a head up on the previous week’s sale, thanks to a recovery in finished prices at the start of the week. Walton says the trade saw Beltex-cross store lambs most in demand and making £105£112 a head. Strong Mules were in the late £80s a head, with commercial Suffolk and Texelcrosses in the same range. In terms of the outlook for finishing those store lambs, several factors point to a continued tightness in primestock supply through the autumn (NZ spring) and into next year, say auctioneers. These include the strong finished price encouraging sales of lambs earlier and at lighter weights through the season so far, reducing the overall potential sheepmeat supply. A good number of these would have been gimmer lambs that would usually be kept back as replacements. The AHDB forecasts that lamb slaughter numbers in the
CALL OUT: Climate activist Greta Thunberg blasted fast fashion brands for damaging the environment, as well as exploiting workers and communities. Photo: Wikimedia Commons
Greta reinforces wool benefits WOOL’S vital role as a sustainable clothing textile has been highlighted by Swedish activist Greta Thunberg, who has slammed the fast fashion industry for its contributions to the climate and ecological emergency. The 18-year-old, who appeared to be dressed in a Merino wool dress and a woollen blanket, blasted fast fashion brands for damaging the environment, as well as exploiting workers and communities, in a series of tweets alongside a link to her interview in Vogue Scandinavia’s inaugural edition. “You cannot mass produce fashion or consume ‘sustainably’ as the world is shaped today,” Thunberg wrote. “That is one of the many reasons why we will need a system change.”
Agrievents Know Your Mindset. Grow your influence Programme run across two sessions: Module 1: Online Zoom • Invercargill (1) - Southland Monday 6 September, 7.00-8.30pm • Invercargill (2) - Southland Monday 6 September, 7.00-8.30pm • Lake Karapiro (1) - Waikato/Bay of Plenty Wednesday 22 September, 7.00-8.30pm • Lake Karapiro (2) - Waikato/Bay of Plenty Wednesday 22 September, 7.00-8.30pm Module 2: In person • Invercargill (1) - Southland Tuesday 21 September, 12.00-2.30pm • Invercargill (2) - Southland Tuesday 21 September, 6.00-8.30pm • Lake Karapiro (1) - Waikato/Bay of Plenty Wednesday 29 September, 9.00-11.30am • Lake Karapiro (2) - Waikato/Bay of Plenty Wednesday 29 September, 12.30-3.00pm Light refreshments (lunch or supper) will be provided at the face-to-face workshops. Cost: $30 per person, covering both sessions To register: https://www.awdt.org.nz/applying/
second half of this year will be 4% lower than July-December last year. However, it says this will be balanced by higher slaughterings in the first half of 2022. “Lambs had a difficult start in the dry spring and didn’t thrive, which pushed prices up,” Walton said. “But farmers have got on top of their lambs now and if the price dips, they can just shut the gates and make them a bit heavier – the farmers are in control.”
Ruthin Farmers Auction Company auctioneer Elfor Morris had 1000 head booked for a sale on August 12 and was expecting an average in the mid-£80s a head for shortkeep lambs. Ruthin’s previous sale of 700 store lambs (August 5) saw the strongest short-keep lambs at £85-£90, with longer-keep crossbred lambs from £60-£70. The strongest Welsh lambs made up to £55 a head, with lighter lambs from £30-£50. Elwyn Davies of Hobbs
Parker at Ashford says the sale of finished lambs at lighter weights so far this season will serve to tighten supply further, where 5000 store lambs were booked for a sale on August 13. This is slightly down on the number at the same sale last year, when the drought forced earlier sales of stores than producers would have liked. Davies says the strong finished prices and plentiful keep would make for a strong store trade. UK Farmers Weekly
Tapping into soil carbon potential
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Saturday 06/11/2021 – Sunday 07/11/2021 Marlborough A&P Show Horse classes, Livestock, Animal Nursery, Childrens Entertainment, Trade Exhibits. Town and Country Together Venue: A & P Park Blenheim For more infomation, phone 03 578 5822 www.marlboroughshow.co.nz Email: marlborough.show@xtra.co.nz Should your event be listed here? Phone 0800 85 25 80 or email adcopy@globalhq.co.nz
FORECAST: The AHDB forecasts that lamb slaughter numbers in the second half of this year will be 4% lower than July-December last year.
UK FARMERS can tap into the carbon potential of non-peat soils, but must consider the wider picture if adopting carbon-friendly practices on grass and arable land. That was the message from leading scientists at an NFU-led Soil Carbon Science webinar last month. Dr Anne Bhogal, of ADAS, says With one-third of the UK’s soil carbon stocks under managed grasslands, the priority is to protect them. “UK grassland soils are an important carbon storage, so it is key to protect them by avoiding degradation, such as poaching, compaction and erosion,” Bhogal said. “Improving grassland productivity, applying organic materials and increasing the biodiversity of the sward can also help improve soil organic carbon storage, but the opportunities for additional sequestration through grassland management are limited and the evidence base is lacking.” Professor David Powlson, of Rothamsted Research, says arable soils, which are lower in organic
FOCUS: The priority is to protect the UK’s soil carbon stocks under managed grassland. Photo: Wikimedia Commons
carbon stocks, had scope to increase in principle, but says in practice it was difficult to achieve large increases. “For climate change mitigation, there must be a net transfer of carbon from the atmosphere to the soil, not just redistribution within soil,” Powlson said. “Adoption of ‘carbonfriendly’ practices, such as reduced tillage, cover crops, residue retention, crop
biodiversity and converting unproductive areas into pasture land can help improve organic carbon stocks in arable soils, but it is important to recognise limitations and be modest within ongoing arable systems. “Farmers must also be careful of leakage, as loss of production could mean it is replaced by clearing land elsewhere globally.” Professor Pete Smith, of
Aberdeen University, says while there was great potential for soil carbon sequestration in cropland and degraded pastures, “sink saturation, reversibility risks and leakage risks” were disadvantages compared to greenhouse gas emission reduction. “When we implement a management practice, the first five years will see a large increase of carbon stocks, but this increase will start to decrease until it reaches an equilibrium and no more carbon is stored,” Smith said. “Farmers also need to maintain a practice to keep the carbon stocks increasing or within the soil, as any change back to bad management practice can lose all gains, causing reversibility issues. “Also, decreasing carbon stocks in one area while increasing them in another will have a zero effect over the whole cropland area.” Smith says the biggest barriers to implementation were monitoring, reporting and verification. UK Farmers Guardian
Taumarunui 102 Valley Road Open Day
A real change in real estate.
Sitting pretty! For Sale Buyers $850,000+ This beautiful farm house has been lovingly restored and sits on View Sun 22 Aug 1.00 - 2.00pm 16.69 ha (more or less) of farm land. There are three generous Web pb.co.nz/TUL86278 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 three 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 Katie Walker home, large land size and handy location. M 027 757 7477
The Property Brokers and Farmlands partnership means great things for provincial real estate Together our combined strengths complement each other to create bigger networks, more buyers and better results. For more information call 0800 367 5263 or visit pb.co.nz/together
Proud to be together
Property Brokers Ltd Licensed REAA 2008
Central Hawke's Bay 708 Old Hill Road Tender
Stoneridge Farm 609 ha breeding property in the Porangahau district, 40 km south of Waipukurau and on the boundary of the Porangahau Village. An approx. 30 min drive from Waipukurau. Contour is classified as easy, medium, steep hill rising from sea level to 260 m. The country is relatively clean with poplars and willows providing shade and erosion control. Reticulated water from elevated dam reservoirs. Improvements include, four bedroom and office, renovated homestead with views to the coast and over the farm. Four stand woolshed, covered yards and an excellent set of cattle yards. A feature of the property are two lane systems providing for good access to the farm. The property is run in conjunction with other land and is utilized as a breeding property for lambs and cattle. Being offered as a 609 ha block Stoneridge does comprise four titles. The vendors have sold their capital stock ewes and are committed to selling. Viewing by appointment.
Property Brokers Ltd Licensed REAA 2008 | pb.co.nz
Tender closes Thursday 30th September, 2021 at 2.00pm, Property Brokers, 98 Ruataniwha Street, Waipukurau View By appointment Web pb.co.nz/WR94108
Pat Portas M 027 447 0612
E patp@pb.co.nz Proud to be here
30
farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
FARMERS WEEKLY – August 16, 2021
Accelerating success. NEW LISTING New Listing
Finishing Boundary lines are indicative only
Waipawa Delight - 97ha For Sale By Tender closing Thurs 2 Sept 2021 at 2pm (plus GST) 418 Tikokino Road, Waipawa, Central Hawke’s Bay
Cambridge 859 Maungatautari Road Rare lakeside opportunity Rarely does an opportunity such as this present itself in our district. This supremely positioned 19.48 hectare (more or less) property with access to Lake Karapiro has a choice of building sites offering magnificent views. Here you can build your dream home and enjoy rural living and all the water sports Lake Karapiro has to offer, while being only a short drive to the busy and vibrant town of Cambridge. There is also a two-level concrete block house which was built in the 1970s and in original condition. This is a rare lakeside opportunity which a savvy property investor will not want to miss.
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1
1
1
Land Area: Sheep/Beef 97.6995 ha finishing unit (more or less)
Auction (unless sold prior) 11am, Tue 7 Sep 2021 Lakewood Block C, Unit 1, 36 Lake Street, Cambridge View 11am-12pm Wed 18 Aug, Sat 21 Aug & Wed 25 Aug Dave Kilbride 027 436 7082 dave.kilbride@bayleys.co.nz Alistair Scown 027 494 1848 alistair.scown@bayleys.co.nz
4 bedrooms 2 bathrooms
Hamish Goodwin 027 291 2156 hamish.goodwin@colliers.com Doug Harvey 027 262 6153 doug.harvey@colliers.com
Stunning rural views
This delightful rural property offers superb lifestyle living on an easily maintained small farm containing a range of infrastructure and excellent laneway access to all paddocks. The modern, 225sqm (approx.) homestead is fully double glazed, has extensive decking providing for alfresco entertaining and an oversized internal access garage with workshop area. You need to see this property to appreciate all it has to offer. Call Hamish or Doug today to arrange your private viewing.
CRHB Limited Licensed under the REAA
colliers.co.nz/p-NZL67015749
SUCCESS REALTY LIMITED, BAYLEYS, LICENSED UNDER THE REA ACT 2008
colliers.co.nz
bayleys.co.nz/2312580
Farm for sale State Highway 2, Takapau Plains
1
338ha available • 135ha irrigated • 102ha silt flats • 101ha silt loam Two valley electric pivot irrigators Irrigation dam – capacity 200,000 cube with consent to take 350,000 cubes
2
Extras:
3
4
4 stand woolshed Covered and uncovered sheep yards
4
66 Cameron Road, Waiuku
Cattle yards
• Private location set well back from Road.
Various sheds
• 18.11ha well fenced with water in every paddock.
3-bedroom cottage with deck and vegetable garden
• Modern 4 bedroom 2 bathroom home. • Large shedding. • Spring water LK0108124©
All enquiries please email: takapaufarm@gmail.com
rwpukekohe.co.nz/PUK23303 Southern Corridor Realty Limited Licensed (REAA 2008)
For Sale Deadline Sale Thurs 2 Sep 4pm (unless sold prior) View Sat & Sun 2:15pm-3:15pm
A 2 E 2 F 4 I 10 K Anne Lowe 0274 865 576 Derek Sullivan 021 750 067
JHI
Tech & Toys
FARMERS WEEKLY – August 16, 2021
farmersweekly.co.nz/advertising 0800 85 25 80
Waste Treatment Systems
31
WHERE RELIABILITY & PERFORMANCE ARE GUARANTEED
Supplying and installing separators since 2002 Dairy and Pig Farms, Meat Works & Truck Wash Stations
Serving NZ farmers since 1962
INNOVATIVE AGRICULTURE EQUIPMENT
www.pppindustries.co.nz sales@pppindustries.co.nz
1962 - 2012
0800 901 902
50 years
LK0107794©
• Inspection door to check screen • Reinforced stainless steel screen • Tungsten tipped auger
Primary Pathways – Jobs, Education & Training
LK0108066©
All aspects of stock handling and feeding plus farm maintenance and tractor driving. Must be a self starter and physically fit. Housing not available. Feilding area.
Phone Geoff Corpe 027 435 7832
Shepherd 1500ha Drystock Operation Taringamotu Otamakahi Trust operates a 1500ha sheep and beef enterprise 20 minutes northeast of Taumarunui carrying 16,500 stock units. With a mixed stocking policy including both sheep and beef with a focus on both quality breeding and finishing, this is a fantastic opportunity to be involved in the running of a diverse farming operation. You will be working alongside the Farm Manager and two other permanent farm staff to ensure a smooth-running operation. The position will include some additional responsibility overseeing one of the farm blocks with the support of the Manager so is a great opportunity for someone looking for a shepherd position with that “little bit extra”. You will have: • The ability to work efficiently on your own and as part of the team • Good pasture and stock management skills • A strong work ethic to “get the job done” • Excellent communication skills and an attention to detail • A team of dogs under good command
The Salvation Army Jeff Farm
Our Head Shepherd is moving on to a Management role and his position has become available here at Jeff Farm. Jeff Farm is situated on Old Coach Road, Kaiwera, Eastern Southland. The property is 2360ha and runs 28,000su comprising of 18,000 sheep,1100 cattle and 1350 deer. Jeff Farm is a Training Farm for young people passionate about farming. There are four cadets here at one time over a two-year cadetship. You would be working with the Farm Manager, four other permanent staff members plus the four cadets and several casual staff The successful applicant will receive: ➩ A very competitive remuneration package ➩ A warm and comfortable 3-bedroom cottage with garage and tidy, fenced section
Applications To apply please send your cover letter and CV (including referee details) and application to: John Chittock jefffarm@yrless.co.nz Or post to John Chittock Jeff Farm 2150 Old Coach Road, 2 RD Gore 9772 Southland
JOBS BOARD
Seeking an experienced livestock individual to audit farm-based livestock standard Reporting to Australian based Brisbane head office Contract arrangement Suit individual seeking part time work
About the Opportunity AUS-MEAT is seeking an individual based in proximity of the King Country region to conduct audits of livestock producers against red meat supply chain requirements. Supported by the AUS-MEAT head office, the Auditor will be responsible for completing assigned work in accordance with program requirements. A minimum of five (5) years experience in livestock production with a demonstrated working knowledge of livestock handling and management systems. Current Auditor Qualifications (including registration with Exemplar Global) and certification in chemical use and handling (e.g., Growsafe or equivalent) is preferred with current driver’s licence essential. A strong desire to learn relevant on-farm standards and audit requirements. About AUS-MEAT Limited AUS-MEAT Limited (AUS-MEAT) is a Certification Body and professional services firm supporting the agriculture, agribusiness and associated industries in Australia and New Zealand, in the fields of Standards Development, Audit, Compliance and Certification. Formed in 1998 and owned by Meat & Livestock Australia (MLA) and Australian Meat Processor Corporation (AMPC), AUS-MEAT has become a highly regarded leading provider of professional services to the agricultural and further processing sectors.
Contact Information For more information about this role please contact John Chittock by email: jefffarm@yrless.co.nz
For more information phone Manager, Dion Mathieson on 022 423 6451 / 07 894 5987.
AUS-MEAT is a medium-sized business built with passionate people who drive a profitable and sustainable industry and export brand for Australian meat and fresh produce through leading-edge policy standards; international and national audit programs; accreditation; quality management; and strategic services building value for our members. AUS-MEAT is a long-term service provider to New Zealand meat supply chain industries. Expressions of interest along with a current CV should be supplied to: Logistics@ausmeat.com.au Attention: James Bracy
farmersweeklyjobs.co.nz
• Assistant Manager
• Livestock Auditor
• Business Development Manager
• Nuffield New Zealand
• General Hand
• Senior Leadership Team Position
• Head Shepherd
• Shepherd
• Labourer
Send CV and covering letter directly to: LK0108187©
• • •
The successful applicant would also need to be: ➩ Fit and healthy (must disclose any existing medical conditions for Health & Safety) ➩ Hold a current NZ Drivers Licence
Applicants for this position should have NZ residency or a valid NZ work visa and will be required to have a clear pre-employment drug test.
Applications close: Friday 27 August 2021
•
The successful applicant will also have these essential skills: ➩ A good team of dogs and experience working with large mobs of stock ➩ Be willing to teach young cadets in all aspects of farming and H & S inconjunction with our Farm Plan ➩ Be excellent with communicating and working with other staff ➩ Have a great work ethic and lead by example ➩ Have the ability to keep records and have good IT knowledge ➩ Be competent with fencing and maintenance ➩ Have the ability to operate tractors and machinery competently and safely at a high standard when required
We offer excellent remuneration for the right skills, good quality housing and a location close to town and schooling.
Dion Mathieson 1050 Ngakonui Ongarue Road, RD 4 Taumarunui 3994 or email tot@farmside.co.nz
LIVESTOCK AUDITOR
*FREE upload to Primary Pathways Aotearoa: www.facebook.com *conditions apply
Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz
See Page 32 Business development and key partnership manager role
LK0108175©
Required for sheep and beef farm
Head Shepherd Position
LK0108178©
General Hand
Primary Pathways
Noticeboard
Business development and key partnership manager
NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....
0800 436 566
GlobalHQ is an innovative multimedia agri-information hub and digital community. We invest in great people to create best-in-class products that include daily newsletter Pulse, flagship newspaper Farmers Weekly, online community www.agripreneur.com, the AgriHQ suite of data and analysis products, leading weather forecaster WeatherWatch and specialist site www.ruralweather.co.nz, Dairy Farmer magazine, the On Farm Story video series, vocational training system Agricademy and AginED, a wide range of podcasts, education and information resources, and various social and website destinations.
ANIMAL HANDLING
DOGS FOR SALE
FORESTRY
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
18-MONTH HUNTAWAY, good bark, excellent confirmation, willing worker. Phone 027 243 8541. HEADING DOG, Head with Bark, make good general all-round – needs more work. Surplus to requirements, 2yrs, $750.00. Ph 07 871 9934 / 027 476 2579. NZ BIGGEST SELECTION. Deliver NZ Wide. www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.
NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide. We can arrange permits and plans. Also after milled timber to purchase. NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.
DOGS WANTED
PROMOTES QUICK PASTURE growth. Only $6+gst per hectare delivered. 0508-GIBBGRO [0508 442 247] www. gibbgro.co.nz. “The Proven One.”
CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com
We have an exciting new role for someone with great communication skills, relationship-building abilities, and an innate talent for creating and developing new business opportunities.
BIRDS/POULTRY PULLETS HY-LINE brown, great layers. 07 824 1762. Website: eurekapoultryfarm.weebly. com – Have fresh eggs each day!!!
You will bring a passion for the agricultural industry, and already have a good understanding of the new media, social, and digital spaces. Be prepared to learn, grow and lead by example, among a team that is driven by a strong sense of social purpose and a determination to share knowledge and build a successful, connected, agripreneur community.
CALF TRAILER MATS LK0105456©
Only apply if you’ve looked into the work of GlobalHQ and agripreneur.com, and feel you can add real value to our team. You must have a good understanding of the G-suite cloud computing tools and all the usual office computer products. Efficient administration skills and good writing accuracy is also expected. Your base will be at our head office in Feilding and your remuneration will reflect your skills and experience.
CONTRACTORS GORSE AND THISTLE SPRAY. We also scrub cut. Four men with all gear in your area. Phone Dave 06 375 8032.
Ph 021 047 9299
We look forward to your application, sharing our vision, and getting to know you. Please request a job description and application form by emailing Cushla: hr@globalhq.co.nz
FOR SALE
SUREFOOT MAT 1.5m x 1m x 24mm $99ea + freight and gst. Phone 0800 686 119.
Heavy duty long lasting
12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. BUYING DOGS NZ Wide. email: mikehughesworkingdogs@ farmside.co.nz 07 315 5553.
BALAGE $70 PER round. Horowhenua. Phone 027 567 7930. CONCRETE CULVERT PIPES. Farm grade pipe stocked in Taupo. 450mm & above. Call Wayne for more info. 027 405 6368.
VETMARKER
Call Debbie
0800 85 25 80 classifieds@globalhq.co.nz
LAMB DOCKING / TAILING CHUTE
With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)
MOWER MASTER
Noticeboard
Assembled with SKF bearings
TOWABLE FLAIL MOWER
GO THE MOA!
13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut Assembled with SKF bearings.
$4400 GST INCLUSIVE
To find out more visit www.moamaster.co.nz
Ph 028 461 5112 • Email: mowermasterltd@gmail.com
FREE FREIGHT
LK0107961©
Assembled by Kiwis for Kiwi conditions – built to last.
Cattle Handling
ON ALL PURCHASES OVER $7,000 TO YOUR NEAREST MAIN CENTRE
We are dedicated to delivering our farmers the best service and best returns.” ASSISTING WOOL GROWERS since 1983
WOOL
Built to last
Passionate about your wool and committed to its future p.06 835 6174 e.office@kellswool.co.nz
www.kellswool.co.nz
Simple yet versatile Animal Welfare Sheep Handling
VETMARKER
®
Dock and weigh your lambs the easy way
NEW PRODUCT
Fenemor Innovations www.vetmarker.co.nz
Vaccination, earmarking and tagging, castration, drenching, fly strike application and tail removal
LK0107967©
™
FULL LENGTH STAINLESS STEEL TRAY See website gallery:www.vetmarker.co.nz or Vetmarker on Facebook to view
Freephone 0800 DOCKER 0800 362 537
NAKI GOATS. Trucking goats to the works every week throughout the NI. Mustering available. Phone Michael and Clarice. 027 643 0403. 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.
GRAZING AVAILABLE
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
PERSONAL
Country Romance A country lady who is seeking a likeminded gentleman. Standing at 5’5 with a slim build, blonde hair & hazel eyes. She is an outdoors lady, who enjoys fishing, tramping, cooking, travelling, gardening and spending time with that someone special.
To meet, please call & quote code 63
0800 446 332
RAMS FOR SALE WILTSHIRE & SHIRE® Meat rams. Low input. www.wiltshire-rams.co.nz 03 225 5283.
SADDLERY BRIDLES THREE TYPES. Heavy leather. Breastplates two types. Hobbles. Leg straps. Cruppers etc. Phone Otairi Station. 06 322 8433.
WANTED TO LEASE EAST TARANAKI FARM LAND. Sheep and beef. Phone 020 4018 9927.
Travel further with Farmers Weekly
To advertise your travel products and services contact: Debbie 06 323 0765 or email classifieds@globalhq.co.nz
OPTIONAL EXTRA
For more information give us a call on 0800 227 228 or visit the website at combiclamp.co.nz
GOATS WANTED
WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. RED DEVON BULLS. Waimouri stud, Feilding. Phone 027 224 3838. RED DEVON CATTLE. Heifers and bulls. Also Wiltshire sheep. Taranaki. Phone 022 151 4344. SOUTH DEVON R2 BULLS, 750+kg. EBVs available. Polled and scurred. Rosewood Stud, Manawatu. Ph 027 230 6686.
Promote or find your next adventure in our Travel & Tourism section published monthly. Next issue – September 13 Booking deadline: Wednesday September 8 – 12 noon
Independent wool brokers
Health and Safety
GIBB-GRO GROWTH PROMOTANT
GRAZING AVAILABLE for dairy heifers or weaners. Bay of Plenty. Ph 027 632 7457.
LK0107929©
LK0108171©
Applications close Wednesday August 25, 2021
Selling something?
WANTED
LIVESTOCK FOR SALE
LK0108156©
DOLOMITE
Livestock Noticeboard
FARMERS WEEKLY – August 16, 2021
Check out Poll Dorset NZ on Facebook
www.dyerlivestock.co.nz
Yearling Heifers For China Export
Enquiries to: Paul Tippett 027 438 1623
Ross Dyer 0274 333 381
WEANER HEIFERS WANTED
A Financing Solution For Your Farm E info@rdlfinance.co.nz
NATIONWIDE
Recorded Heifers by Recorded Sires F12 + with Friesian sire 100kg plus J12 + with Jersey sire 80kg plus Contact: Barry Ward 027 413 0687 Email: Barry Ward barry.ward@geneticdevelopment.co.nz or Genetic Development NZ 07 843 7577 Email: PurchasesHFM PurchasesHFM@geneticdevelopment.co.nz
Stay ahead of the rest Sign up to AgriHQ’s free upcoming saleyard notifications to find what’s on offer before sale day. Choose which sale yards you want to follow and find out the number and class of stock being entered at the next sale. farmersweekly.co.nz/enewsletters
Price on Application www.austrex.co.nz
GRAZING WANTED North Island – South of Auckland
NZ’s Virtual Saleyard
Payment options to meet your requirements. Register your interest now.
UPCOMING AUCTIONS
Tuesday, 17 August 2021 7.00pm Gloriavale Deer Hind Sale Friday, 20 August 2021 11.30am Feilding Saleyard - Store Cattle Sale
Dairy bull open day
Wednesday, 1 September 2021 12.30pm Te Atarangi Angus Yearling Thursday, 2 September 2021 12.00pm Waimaire & Otengi Hereford Bull Tuesday, 7 September 2021 7.00pm PGG Wrightson Genetics SEMEN SALE
At school, Little Johnny’s classmate tells him that most adults are hiding at least one dark secret, so it’s very easy to blackmail them by saying, “I know the whole truth.” Little Johnny decides to go home and try it out. Johnny’s mother greets him at home, and he tells her, “I know the whole truth.” His mother quickly hands him $20 and says, “Just don’t tell your father.” Quite pleased, the boy waits for his father to get home from work, and greets him with, “I know the whole truth.” The father promptly hands him $40 and says, “Please don’t say a word to your mother.” Very pleased, the boy is on his way to school the next day when he sees the mailman at his front door. The boy greets him by saying, “I know the whole truth.” The mailman immediately drops the mail, opens his arms, and says, “Then come give your Daddy a great big hug
11am - 1pm, Wed 8 September 451 Mangamaire Rd, Pahiatua All welcome, BBQ lunch provided.
Contact: Nick Dromgool 027 857 7305 Email: Nick Dromgool nick.dromgool@geneticdevelopment.co.nz or Genetic Development NZ 07 843 7577 Email: PurchasesHFM PurchasesHFM@geneticdevelopment.co.nz
M: 027 4888 635 E: info@koanuiherefords.co.nz
For more information go to bidr.co.nz or contact the team on 0800 TO BIDR
LK0107893©
F1 WAGYU
027 870 4434
LK0107894©
BUYING NOW
R2 YR BEEF BULLS 420-500kg
www.progressivelivestock.co.nz
AUSTREX NZ LTD L IV E STOCK EXPO R T E R S
R1YR ANGUS HEIFERS +250kg
R2 & 3YR STEERS 450-600kg
Please Contact
Colin Old
180-250kg
R1 YR BEEF BULLS 220-280kg
Weaner Jersey Bulls Min 95kg - $500.00
LK0108184©
Contact John 027 633 1775
R1 YR FRSN BULLS LK0108078©
Auahi Charolais See the bulls in action on facebook
STORE LAMBS 34-45kg
WANTED
33
SALE TALK
STOCK REQUIRED
PROGRESSIVE LIVESTOCK LTD 2021 Autumn Born
2yr old Bulls available now
livestock@globalhq.co.nz – 0800 85 25 80
www.koanuiherefords.co.nz
Secure your bull team now with no upfront cost. Apply for a Defer-A-Bull purchase agreement today – a simple, cost effective solution when sourcing your dairy service bulls. Secure your bull team early with no repayments until bulls are sold. • • • •
Buy Now. Pay Later.
•
No upfront cost No repayments until bulls are sold Secure as many bulls as you need Get expert advice and support from your local dairy specialist Backed by our nationwide team of specialist dairy representatives.
SCAN ME Find out more
>>
pggwrightson.co.nz/deferabull
Helping grow the country
34
livestock@globalhq.co.nz – 0800 85 25 80
Livestock Noticeboard
FARMERS WEEKLY – August 16, 2021
Heather Dell Angus focuses on Low Birth Weight, High Growth Rate and Docility.
Bull Walk – Monday 23 August 2021 at 11am Sale – Friday 10 September 2021 at 11am – Viewing from 9am
August report out now!
801A Paradise Valley Road, RD 2, Rotorua Yearling bulls available by GAR Ashland, SS Brickyard, Schiefelbein Attractive 4565 and Varilek Geddes 7068
BEEF - PRICE PROJECTIONS
Brazil/Uruguay target China.
Could farmgate beef prices hit a new spring peak?
LAMB - PRICE PROJECTIONS
US imported beef market nudges higher.
NE WITH
BID ONLI
11:30am TUESDAY 7 TH SEPTEMBER 2021 Richard and Christine Lansdaal and Family 200 Luck at Last Road RD2 Cambridge Sale held Under Cover with Lunch + free coffee van on site
On Offer:
15 R2 Jersey Bulls BW up to 308 190 R1 Jersey Bulls BW up to 304 10 R1 Murray Grey x Bulls
Enquiries to Richard and Christine 027 353 5693
Ollie Carruthers 0274 515 312
Catalogue available soon, on mylivestock.co.nz and http://www.linklivestock.co.nz/upcoming-sales/
LK0108188©
Neil Heather 027 421 4050 – Jon & Nerida Evans 027 490 7783 PGG Wrightsons – Finn Kamphorst 027 493 4484
Inside this month’s issue:
Pricing expectations still signal downside to December.
Prime price strengthening.
Average export values need to keep lifting.
Kill rates still slipping to winter low levels.
Lamb supply tight now, but what about the next few months?
Beef price projections - table.
NZ lamb slaighter price projections - table.
NZ cattle slaughter price projections - table. BEEF - OVERSEAS MARKETS US beef herd falls as liquidation ramps up amid droughts.
LAMB - OVERSEAS MARKETS UK sheepmeat prices start seasonal descent. NZ increases US market share.
US beef excites China.
Prices into China hold.
Japan demand settles.
LAMB - COMPETITOR WATCH
BEEF - COMPETITOR WATCH
Australian sheep flock on the rise after bottoming out last year.
Australia determined to rebuild herd quickly.
For a copy of August’s Livestock Outlook, contact Grant on 027 887 5568, or subscribe online for only $25+GST/month (300+GST/year).
agrihq.co.nz | info@agrihq.co.nz
Ross Riddell 0272 111 112
Online sale at
Sign up at www.bidr.co.nz
Kokonga iPod 6003
379 Kokonga East Road RD5 Tuakau (end of road by woolshed)
Quiet and easy to handle. Instant white face recognition. Lower birth weights. These are just some of the traits that define the HerefordX advantage. To find out more about buying a registered Hereford bull, view our breeders online sale catalogues at herefords.co.nz. SEPT 2 3 8 9 10 13 14 15 16 16 17
Waimaire & Otengi Hereford Studs, Kaeo Matapouri Hereford Stud, Marua Charwell Hereford Stud, Whakatane Maranui Hereford Stud, Waihi Hukaroa Hereford Stud, Te Kauwhata Craigmore Hereford Stud, Ohaupo Kokonga Hereford Stud, Waikareu Valley Shadow Downs Hereford Stud, Waverley Kairaumati Hereford Stud, Thames Mangaotea Hereford Stud, Tariki Mahuta Hereford Stud, Drury
20 22 22 24 23 24 27 27 28 29 29
Hillcroft Hereford Stud, Huntly Herepuru Station Hereford Stud, Whakatane Gembrooke Hereford Stud, Dannevirke Bexley Hereford Stud, Mokau Riverton Ezicalve Hereford Stud, Fordell Maugahina Hereford Stud, Masterton Penny Lane Hereford Stud, Stratford Riverlee Hereford Stud, Kimbolton Ezicalve, Morrison Farming, Marton Bushy Downs Hereford Stud, Te Awamutu Shrimpton’s Hill Hereford Stud, Cave
www.herefords.co.nz
OCT 1 5 6 11 11 12 14 20
Seadowns Hereford Stud, Oamaru Matariki Hereford Stud, Kaikoura Bluestone Hereford Stud, Cave Orari Gorge Herefords, Geraldine Okawa Hereford Stud, Ashburton Richon, Beechwood & Woodburn Hereford Studs, Amberley Kane Farms Herefords, Tapanui Pyramid Downs Hereford Stud, Gore
MARKET SNAPSHOT
36
Market Snapshot brought to you by the AgriHQ analysts.
Mel Croad
Suz Bremner
Reece Brick
Nicola Dennis
Sarah Friel
Caitlin Pemberton
Deer
Sheep
Cattle BEEF
SHEEP MEAT
VENISON
Last week
Prior week
Last year
NI Steer (300kg)
6.10
6.10
5.60
NI lamb (17kg)
9.10
9.10
7.25
NI Stag (60kg)
6.10
6.10
6.20
NI Bull (300kg)
6.00
6.00
5.55
NI mutton (20kg)
6.50
6.50
4.95
SI Stag (60kg)
6.00
5.90
6.20
NI Cow (200kg)
4.50
4.50
4.15
SI lamb (17kg)
9.05
8.95
7.00
SI Steer (300kg)
6.00
5.85
5.00
SI mutton (20kg)
6.70
6.70
4.65
SI Bull (300kg)
5.80
5.80
5.00
Export markets (NZ$/kg)
SI Cow (200kg)
4.80
4.70
3.90
UK CKT lamb leg
12.06
12.08
9.64
US imported 95CL bull
9.19
8.92
8.12
US domestic 90CL cow
9.19
8.63
7.51
Slaughter price (NZ$/kg)
Export markets (NZ$/kg)
6.50
10.0 South Island lamb slaughter price
4.50
Oct
Dec 5-yr ave
Feb
Apr 2019-20
Jun
Dairy
Oct
Dec
Feb
Apr
Jun
Aug
2019-20
2020-21
Fertiliser
Aug 2020-21
FERTILISER Last week
Prior week
Last year
2.83
2.83
1.95
37 micron ewe
-
2.10
30 micron lamb
-
-
Coarse xbred ind. Jun
2019-20
7.0
5-yr ave
(NZ$/kg)
5-yr ave
8.0
5.0
7.0
WOOL
5.00
Apr
9.0
6.0
5.50
Feb
South Island stag slaughter price
11.0
5.0
6.00 $/kg CW
5.0
6.0
South Island steer slaughter price
Dec
7.0
$/kg CW
8.0
$/kg CW
$/kg CW
4.50
Oct
8.0 6.0
5.50
6.50
9.0
7.0
9.0
Last year
10.0
8.0
5.00
Last week Prior week
North Island stag slaughter price
11.0
5.0
4.00
Aug 2020-21
Last week
Prior week
Last year
Urea
821
799
572
1.95
Super
339
339
294
-
DAP
1103
1055
750
Grain
Data provided by
MILK PRICE FUTURES
NZ average (NZ$/t)
Top 10 by Market Cap
CANTERBURY FEED WHEAT
Company
Close
YTD High
Fisher & Paykel Healthcare Corporation Ltd
30.9
36.55
YTD Low 27.1
Meridian Energy Limited (NS)
5.175
9.94
5.04
Auckland International Airport Limited
7.23
7.99
6.65
Mercury NZ Limited (NS)
6.715
7.6
5.79
8.50
430
8.00
420
7.50
410
Spark New Zealand Limited
4.73
4.97
4.37
400
Mainfreight Limited
85.3
86.99
64.85
390
Ryman Healthcare Limited
13.71
15.99
12.46
Fletcher Building Limited
7.74
7.99
5.67
380
Contact Energy Limited
8.17
11.16
6.6
370
Infratil Limited
7.4
7.9
6.74
$/tonne
$/kg MS
Slaughter price (NZ$/kg)
6.0
6.00
4.00
Last year
North Island lamb slaughter price
9.0 $/kg CW
North Island steer slaughter price
Last week Prior week
$/kg CW
Slaughter price (NZ$/kg)
William Hickson
Ingrid Usherwood
7.00 6.50
…
Sept. 2022
A
Sept. 2021
J…
A
…
F…
D …
O …
A
5.50
…
6.00
DAIRY FUTURES (US$/T) Nearby contract
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
CANTERBURY FEED BARLEY
Listed Agri Shares Company
5pm, close of market, Thursday Close
YTD High
YTD Low
ArborGen Holdings Limited
0.32
0.335
0.161
430
The a2 Milk Company Limited
6.2
12.5
5.42
Comvita Limited
3.27
3.6
3.06
Delegat Group Limited
Prior week
vs 4 weeks ago
WMP
3565
3605
3725
420
15.5
12.9
2835
2830
2825
410
13.05
SMP
Fonterra Shareholders' Fund (NS)
3.8
5.15
3.61
AMF
4140
4100
4050
400
Foley Wines Limited
1.59
2.07
1.58
Livestock Improvement Corporation Ltd (NS)
1.19
1.35
0.81
Butter
3500
3460
3430
Marlborough Wine Estates Group Limited
0.245
0.65
0.24
Milk Price
7.61
7.61
7.61
380
New Zealand King Salmon Investments Ltd
1.46
1.72
1.39
370
PGG Wrightson Limited
3.5
3.65
3.11
Rua Bioscience Limited
0.42
0.61
0.37
5
5.23
4.3
Scales Corporation Limited
4.62
5.09
4.22 4.66
$/tonne
Last price*
* price as at close of business on Thursday
Jul-20
WMP FUTURES - VS FOUR WEEKS AGO 3800 3700
$/tonne
US$/t
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
WAIKATO PALM KERNEL
3900
3600 3500 3400 3300
390
Sanford Limited (NS) Seeka Limited
5.04
5.68
400
Synlait Milk Limited (NS)
3.51
5.24
2.85
T&G Global Limited
2.98
3
2.85
350
S&P/NZX Primary Sector Equity Index
13417
15491
12865
S&P/NZX 50 Index
12682
13558
12085
S&P/NZX 10 Index
12354
13978
11776
300 250
Au g
Sep Oct Latest price
Nov
Dec 4 weeks ago
Jan
200
Jul-20
S&P/FW PRIMARY SECTOR EQUITY
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
13417
S&P/NZX 50 INDEX
12682
S&P/NZX 10 INDEX
12354
37
FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
Analyst intel
WEATHER
Overview Typical August weather across New Zealand at the moment, with stormy Southern Ocean lows brushing our country, along with windy pre-spring westerlies. While the southerly injections are cold (and another one this Tuesday/Wednesday), the westerly winds are soon quickly bulldozing these wintry changes out east of NZ, limiting their stay here. This week is a messy week, with Tuesday and Wednesday most exposed to winter weather. Later this week, milder westerlies return. High pressure is generally exiting Australia and is quite powerful, but this week a storm in the Southern Ocean ‘punctures’ that belt of high pressure, allowing this more wintry change to head northwards. Generally speaking, this weekend and next week will be milder.
14-day outlook A storm in the Southern Ocean is the main feature of NZ’s weather this week, bringing a more wintry change into both main islands for Tuesday and Wednesday. Beyond this, things do actually calm down to some degree, with an uptick in high pressure from Australia and more west to northwest winds developing next week, which helps lift temperatures a bit more. The next big ‘main’ low looks to be at the end of next week over the Southern Ocean.
Retail misaligned with beef exports Nicola Dennis nicola.dennis@globalhq.co.nz
N Highlights
Soil Moisture 12/08/2021
Wind
It’s windy this week, especially on Tuesday, where west to north west gales blow through Central NZ (upper South Island and lower North Island/ the regions surrounding Cook Strait). Gusts on Tuesday might reach 100140km/h.
Source: NIWA Data
Temperature Another shot of colder air is coming up the South Island on Tuesday and over the North Island on Wednesday, bringing winter conditions. However, it does look fairly short-lived, with milder weather returning late week and into next week too.
7-day rainfall forecast The rain maps below look ‘normal’ for August, with heavy rain events on the West Coast fading out the further north you go into the North Island’s western side. Eastern NZ leans drier than average – a fairly normal set up when westerlies are starting to dominate more often. The bulk of the rain this week will be from Monday to Wednesday, then it’s more showery after that. To drill down deeper, use NZ’s most accurate hyper-local rain data at www.RuralWeather. co.nz 0
5
10
Highlights/ Extremes
20
30
40
50
60
80
100
200
400
Heavy West Coast rain earlier this week, with heavy snow on Tuesday in the Southern Alps. Severe NW gales move through Cook Strait on Tuesday (100-140km/h) and there’s some chance of snow in the Central Plateau on Wednesday. Driest in the east this week.
Weather brought to you in partnership with WeatherWatch.co.nz
EW Zealand consumers are unhappy with their grocery bills and the supermarkets are quick to point to the export markets to justify higher food
prices. But, are export prices and NZ retail prices really that closely aligned? We will take a look at that in a moment. First, it is important to note that food price inflation is not strictly a NZ problem, or limited to meat prices. Pent up global demand caused by the reopening of foodservices, hotels and restaurants is driving strong competition for food. The FAO global food price index has been climbing for the past 12 months. AgriHQ subscribers will also recall that food price inflation led Argentina to temporarily limit their own beef exports in an attempt to control domestic pricing. And, since a few armchair economists are suggesting a similar tactic for controlling NZ prices, it is worth pointing out that the last time Argentina throttled its beef exports it led to a substantial reduction in the nation’s beef production and prices ultimately rose even higher. In light of the growing frustrations, AgriHQ took a look at the local trade market this week, focusing on beef prices, since this is the main fare of the domestic red-meat market. The domestic market consumes roughly 13% of total NZ beef production, in contrast to around 6% for sheepmeat. If we look at retail prices for beef mince, courtesy of StatsNZ, we can see that mince prices first climbed beyond $16/ kg in late 2019. This was in response to a very strong Chinese beef export market, which correspondingly pushed up NZ cattle prices. However, when covid-19 very quickly knocked the wheels off the export market in early 2020, retail prices held their ground. One could argue that the supermarkets may have had more costs to cover while NZ was socially distancing through the middle
of 2020. However, the $16/kg-plus mince price persisted beyond this period and held steady when shipping issues strangled the export market and an oversupply of prime animals brought about the lowest cattle prices in six years. The gap between export values and the NZ retail prices for beef grew to record levels, but has been narrowing since the start of 2021, as the easing of lockdowns overseas have rejuvenated the export beef prices. Since then, NZ retailers appear to have stuck to the $16/kg mince price rather than following the export price upward. It would seem that margins remain good at this level and/or the retailers have recognised that further price lifts would not be accepted by their customers. Some of the misdirected anger that farmers have been coping from angry shoppers would support the latter.
The commission isn’t the only player taking a shot at supermarket margins, however. American food giant Costco intends to open a store in Auckland next year.
Further price lifts would also be unpalatable for the Commerce Commission, which has released a report pointing to a lack of competition amongst NZ supermarkets. Poor competition is a likely driver behind this uncoupling of retail and export prices. The commission isn’t the only player taking a shot at supermarket margins, however. American food giant Costco intends to open a store in Auckland next year. While Costco runs a slightly different model to the average supermarket by focusing on bulk buying, the extra competition could give the local supermarket prices a bit of a tickle up.
38
SALE YARD WRAP
Cattle fairs bring spring forth A sign that spring is not far away is always in the early spring cattle fairs and many North Island yards got in on the action. Wellsford held a split fair – steers and bulls on Monday, followed by heifers on Wednesday, while Te Kuiti split adult cattle and yearling cattle over two Friday fairs, totalling nearly 1800 cattle including big entries of annual draft. Also holding Friday sale slots were Paeroa in Waikato and one South Island fair at Castlerock in Southland. Taranaki’s weekly Wednesday sale grew to 720 head and Stortford Lodge kicked off the season with 680 mainly traditional R1 cattle. Riding on the coat-tails of good schedule prices for cattle the season has got off to a good start, and the potential is there for higher than usual pricing once a grass market is established. Variance between pricing at the different fairs largely came down to local pasture levels and outside buyer interest, as well as the quality and type of the cattle offered. NORTHLAND Wellsford spring fairs • R1 Angus steers, 227-229kg, realised $3.23-$3.26/kg • Top Hereford-Friesian steers, 236-263kg, earned $3.95-$4.06/kg • Hereford bulls, 178-226kg, were secured for $630-$745, $3.30/kg to $3.54/kg • R1 Angus heifers, 237-291kg, realised $2.55/kg to $2.77/kg, while ten at 223kg pushed to $3.03/kg WELLSFORD hosted two spring fairs last week – steers and bulls on Monday and heifers last Wednesday. Just on 640 steers and bulls were presented and Angus and AngusHereford steers improved with 271kg up to $2.95/kg and 183-199kg, $3.67-$3.77/kg. Angus-cross and Charolais, 241-256kg, softened to $2.99-$3.01/kg. Hereford-dairy, 230-254kg, softened to $2.93/kg to $3.17/kg, while 202210kg held at $2.85-$2.93/kg. Top Friesian bulls, 239kg, held at $2.93/kg while second cuts, 212kg, firmed to $3.18/kg. Autumn-born Friesian bulls filled 50% of their section and 287-319kg returned $2.74-$2.79/kg. Just over 540 R2 and R1 heifers were penned at WELLSFORD last Wednesday. Quality was good throughout and second cut R2 traditional heifers, 353-388kg, realised $2.75-$2.82/kg. Top HerefordFriesian, 328-395kg, firmed to $2.71-$2.83/kg while 300320kg held at $2.83-$2.90/kg. Autumn-born yearling beefdairy heifers, 265-315kg, varied from $2.95/kg to $3.12/ kg. R1 Angus and Angus-Hereford, 150-198kg, improved to $3.23-$3.37/kg. Hereford-Friesian over 200kg were mostly $660-$805, $3.03-$3.13/kg with 185-189kg up to $645-$650, $3.41-$3.51/kg. Read more in your LivestockEye.
AUCKLAND Pukekohe cattle • Light R2 crossbred steers sold up to $2.62/kg • Light autumn-born yearling heifers fetched $2.30/kg • Small R1 steers achieved $3.94/kg, $780 Quality cattle sold well at PUKEKOHE on Saturday 7th. Better prime steers firmed to $2.95-$2.98/kg, $1860-$2230 and heifers $2.86-$2.94/kg, $1560-$1680. Store cattle were mostly of light weights and mixed breeding. Small autumnborn weaner steers fetched $310-$350 and medium heifers $430-$450.
COUNTIES Tuakau sales • Good Hereford-Friesian steers, 203kg, made $805 • Heavy Friesian bulls, 596kg, managed $2.92/kg • Heavy prime steers earned $3.05-$3.13/kg • Prime lambs reached $257 Last Thursday’s store sale at TUAKAU featured quality lines of black-whiteface cattle and the market remained firm, PGG Wrightson agent Craig Reiche reported. The 360 head yarding included 580kg Friesian-cross steers, at $2.91/ kg, and 401kg Hereford-Friesian, $3.07/kg, with 154kg at $620. Hereford-Friesian heifers, 486kg, returned $2.92/kg, while 385kg managed $3.04/kg and 245kg, $750. Prime steer and heifer prices lifted 5-10c/kg on Wednesday, medium steers realised $3.00-$3.05/kg and light, $2.80/kg to $3.00/ kg. Heavy prime heifers made $3.03-$3.09/kg, with medium at $2.91-$3.03/kg and light, $2.74/kg to $2.91/kg. Beef cows ranged from $1.99/kg to $2.51/kg and medium-heavy boners, $1.97/kg to $2.25/kg. Monday’s sheep sale drew a small yarding and the market firmed. Heavy prime lambs sold at $239-$257 and medium, $175-$239. Store lambs ranged from $100 to $156. Heavy prime ewes returned $170-$226, medium $150-$170 and light $100-$150.
WAIKATO Frankton cattle 10.8 • R2 Hereford- Friesian heifers, 403-443kg, held at $2.77-$2.82/kg • Autumn-born yearling Hereford-Friesian steers, 395-450kg, firmed to $2.94-$3.03/kg
A smaller yarding of 171 cattle was penned by PGG Wrightson at FRANKTON last Tuesday. R2 Murray Grey steers, 470-540kg, realised $2.91-$3.01/kg. Autumn-born yearling Hereford-Friesian heifers, 275-323kg, traded at $2.45-$2.48/kg though a pen of seven at 294kg managed $2.60/kg. Autumn-born weaner Hereford-Friesian bulls and heifers, 119-131kg, earned $330-$390. Forty prime cattle were presented and Angus-Friesian steers, 600-668kg, held at $3.17-$3.19/kg while same breed heifers, 520kg, firmed to $2.97/kg. Read more in your LivestockEye. Frankton cattle 11.8 • Prime steers, 539-605kg, realised $3.01-$3.06/kg • Eight R2 Hereford-Friesian steers, 450kg, firmed to $3.11/kg • R1 Hereford-Friesian steers, 211kg, also firmed to $3.63/kg An increased offering of 276 store cattle was penned by New Zealand Farmers Livestock at FRANKTON last Wednesday. The balance of R2 beef-dairy steers, 396457kg, traded at steady to firm levels of $2.99-$3.03/kg. Twelve exotic-cross heifers, 399kg, topped their section at $3.02/kg while the balance of better types, 357-390kg, improved to $2.91-$2.95/kg and second cuts, $2.74-$2.78/ kg. R1 beef-dairy steers, 233-263kg, held at $2.98-$3.09/ kg and 10 autumn-born weaner Hereford-dairy heifers, 95kg, managed $310. Good yielding heifers, 429-558kg, firmed to $3.04-$3.10/kg. Better boner Friesian and Jersey cows, 455-497kg, held at $1.96-$2.02/kg. Read more in your LivestockEye.
KING COUNTRY Te Kuiti cattle and sheep • Heavy prime ewes earned $220 and lighter types $130-$139 • R1 Speckle Park-cross steers, 305kg, fetched $3.45/kg • R1 Hereford bulls, 356kg, earned $3.06/kg • R1 Angus-Friesian and Angus-South Devon heifers, 310-321kg, realised $2.90-$3.00/kg There was a medium yarding of prime lambs at TE KUITI last Wednesday. Heavy lambs made $240-$250, medium $190-$196 and light $177-$184. Top store male lambs fetched $150-$159 and the best of the ewe lambs $145-$149 and longer-term types $90-$100. There was a good bench of local buyers for the yearling cattle fair on Friday. The top end consisted of Angus steers, 307kg, which fetched $3.73/ kg, and 321kg Charolais-cross to $3.27/kg. There was a good line-up of heifers. Autumn-born Hereford-Friesian, 340kg, made $2.90/kg and the next cut of 322kg to $2.85/kg. Lighter types below 180kg were bought for $500-$550.
BAY OF PLENTY Rangiuru cattle and sheep • Prime Hereford-Friesian bulls, 782kg, earned $3.38/kg • Prime Angus steers, 630kg, fetched $3.24/kg • Prime Angus heifers, 576kg, made $3.13/kg A moderate yarding of store cattle had something for everyone at RANGIURU last Tuesday. A sizable consignment of capital stock beef and beef-cross cows that were 497-652kg and had been run with an Angus bull managed to sell for $2.31-$2.41/kg. The bulk of the R2 steers were either Angus, Angus-cross, or Hereford-Friesian, 370-429kg, and consistently earned $2.95-$3.05/kg. Heifers sold well relative to quality and condition and Angus-cross, 392kg, topped the section at $3.00/kg. R1 Angus-cross steers earned $630-$770 while Hereford-Friesian were $650-$740. Angus-Hereford heifers, 242-285kg, made solid returns at $750-$870 while Angus, 230kg, returned $710. Sheep volume was low, and most were prime lambs that earned $168-$175. Read more in your LivestockEye.
POVERTY BAY Matawhero sheep • Top ewe lambs earned $141 with the balance $95-$119 • A small number of prime lambs mostly fetched $158-$166
• Better store ewes sold to $110-$180 with the bottom end $80-$92 Store lambs were limited at MATAWHERO last Friday. Medium male lambs earned $97-$137 and mixed-sex to $138. Heavy prime ewes lifted to $218-$232, medium $190$196 and light $162-$179. Read more in your LivestockEye.
TARANAKI Taranaki cattle • Quality R2 Angus-Friesian and Charolais-cross heifers achieved $3.03-$3.12/kg. • R1 heifers, 240-263kg, firmed to $740-$785 • Hereford cows in-calf to a Hereford bull mostly earned $1580$1600 Older cattle were the focus at the TARANAKI cattle fair last Wednesday. The top end of three-year plus steers sold to $3.28-$3.31/kg. Heavier R2 steers above 500kg were sought after to achieve $3.25-$3.35/kg. Lighter and lesserbred lines still made decent money at around $3.00/kg to $3.20/kg. The bulk of R1 steers traded at $670-$770, though the top end consisted of 287-301kg Charolais-Friesian and ¾ Hereford which made $865-$970. In-calf cows had good demand with the lion’s share destined to be farmed on in the Waikato. Very heavy 706kg Hereford cows vetted-in-calf to a Hereford bull sold very well and topped this category at $1840. Read more in your LivestockEye.
HAWKE’S BAY Stortford Lodge prime sheep • Heavy to very heavy mixed-age ewes held at $193-$233.50 • Seven very heavy wethers pushed to $218 • A pen of very heavy male lambs topped their section at $247 Ewe throughput lifted to 1080 head at STORTFORD LODGE last Monday. Over 50% of the mixed-age pens were good condition ewes. These sold in two bands as the top portion maintained levels of $154-$162 while the balance softened to $147-$148. Very good types held at $171-$180 as did lighter types at $75-$114. The balance of very heavy males, cryptorchid and ram lambs traded at steady to firm levels of $208.50-$225. Very heavy mixed-sex lines pushed to $212.50-$228. The handful of heavy to very heavy ewe lambs offered sold well at $174-$233. Read more in your LivestockEye. Stortford Lodge store cattle and sheep • R1 Angus steers, 202-231kg, sold well at $822-$932, $4.04-$4.07/ kg • 40 R1 Angus and Angus-Hereford steers, 265kg, returned $1018, $3.84/kg • Top R1 Angus heifers, 252-263kg, fetched $910-$915, $3.49-$3.61/ kg • Good male lambs eased to $147-$175 • Medium ewe lambs came back to $115-$139 Spring cattle sales kicked off at STORTFORD LODGE last Wednesday and 680 head were yarded. Older cattle volume was limited but Angus featured and R3 steers, 536kg, made $3.33/kg and R2, 398-461kg, $3.12/kg to $3.40/kg. A pen of 474kg heifers of the same breed fetched $2.96/kg. R1 steer prices varied from $685 to $1070 for the traditional and beef-cross offering and the balance of the R1 traditional heifers, 179-222kg, returned $590-$680. R1 Hereford bulls, 224kg, sold well at $785, $3.51/kg. 4900 lambs were offered and, aside from better ewe lambs, the market eased. Heavy males sold for $177-$193 and good ewe lambs, $143-$167. One pen of blackface ewes with older, docked lambs achieved $138.50 all counted. Read more in your LivestockEye.
MANAWATU Feilding prime cattle and sheep • Friesian heifers, 420kg, earned $2.70/kg • Friesian cows, 525-600kg, returned $2.65-$2.76/kg • Friesian cows, 470-520kg, mainly earned $2.39-$2.45/kg
39
FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021
• Prime lambs earned $240-$242 with most of the yarding $181$198 • One prime ewe managed $350 with other heavy pens $190-$230 Steers dominated a big yarding of prime cattle at COALGATE last Thursday. Breed was irrelevant as most steers over 400kg sold within a 15c/kg range of $3.20/kg to $3.35/kg while heifers were close behind at $3.18-$3.28/ kg. R2 beef and beef-cross steers and heifers, 230-336kg, consistently earned $2.95-$2.98/kg with the only exception 324kg Angus steers that made $3.21/kg. R1 Angus heifers fetched $780-$935. Store lamb numbers jumped to over 800 head, helped by a consignment of 500 good-framed shortterm male lambs. The top cut of the section mostly made $135-$148 followed by second cuts at $120-$127. Read more in your LivestockEye.
SOUTH-CANTERBURY
TOP SHELF: An outstanding day at the Te Kuiti sale yards was matched by the quality of the cattle penned.
Low volume and strong demand continued to work in lamb vendors favour at FEILDING last Monday. Very heavy lambs made $221-$230 while heavy pens returned $197$216. A small offering of medium-good lambs made $181$191. Ewe volume was also limited, and they were topped by 74 very heavy types at $230. A selection of very good pens fetched $198-$199 but most of the action was centred around good and medium-good types at $155-$185. Read more in your LivestockEye. Feilding store cattle and sheep • R2 traditional steers, 365-400kg, were mainly $3.25-$3.45/kg • Autumn-born 1-year Friesian bulls, 455kg, made $3.20/kg • R2 traditional heifers, 470-560kg, lifted to $3.15-$3.30/kg • Ewes with lambs-at-foot made $122-$131.50 all counted • All store lambs averaged $135 A thousand store cattle mainly sold well last Friday at FEILDING. Large numbers of 435-545kg R2 traditional steers sold for $3.10-$3.35/kg while 420-485kg dairy-cross types were $3.05-$3.15/kg. R2 dairy-cross heifers, 385445kg, made $3.00-$3.10/kg, whereas 335-400kg traditional types were usually $3.20-$3.35/kg. R1 Angus-Hereford steers, 220-265kg, were $3.50-$3.80/kg with 235-265kg R1 Friesian bulls at $2.85-$3.00/kg, and 225-245kg R1 traditional heifers made $2.90-$2.95/kg. It was a small sheep sale, with 1500 ewes and 2500 lambs penned. The lamb yarding was mixed-quality, often small lines. Through these heavy lambs were $170-$190, good types $160-$170, mediums $140-$155, light lines $110-$135, and the tailenders $70-$110. A few pens of dry ewes were mostly $178.50-$199.50 for the better-types, and $135-$150 for the lighter ewes. Inlamb ewe quality was below-average as a whole, where $211 for some 177% five-year ewes was the highest price. Read more in your LivestockEye. Rongotea cattle • R3 Friesian heifers, 505kg, sold to $2.97/kg
Photo: Andrew Jardine
• R1 Charolais-cross steers, 154kg, fetched $3.57/kg • R1 Hereford-Friesian heifers, 183-185kg, made $2.65/kg to $3.27/ kg • Autumn-born weaner steers and heifers traded to $350-$510 • Boner Friesian cows, 520kg, earned $1.94/kg There was a large yarding of R1 cattle at RONGOTEA last Tuesday, New Zealand Farmers Livestock agent Darryl Harwood reported. R1 Hereford-Friesian steers, 151-215kg, made $2.70/kg to $3.70/kg and 196-213kg Speckle Parkcross $2.81/kg to $3.12/kg. The top end of R2 HerefordFriesian steers realised $3.01/kg, and Angus-cross, $3.16/ kg. R2 Friesian bulls, 448kg, achieved $3.04/kg, and R2 Hereford heifers, 390-505kg, ranged from $2.44/kg to $3.03/ kg. Feeder calves eased with the top end at $110-$180, medium $70-$80 and light $20-$40.
CANTERBURY Canterbury Park prime cattle and all sheep • Prime Hereford-Friesian steers, 707kg, traded at $3.54/kg • Prime Speckle Park heifers, 540kg, earned $3.51/kg • Overall, a quarter of the prime steers and heifers over 510kg achieved $3.43-$3.53/kg • Most other steers and heifers over 440kg managed $3.20/kg to $3.42/kg Sheep volume was very low at CANTERBURY PARK last Tuesday as recent snow hampered enthusiasm to get stock to sale. Store lambs numbered 35 head and sold from $130 to $161. Prime lambs sold very well with nearly 200 at $245$286 followed by a similar number of heavy types at $215$234. Most of the balance earned $161-$211. Ewes were very scarce, and the top pens managed $210-$218 followed by the remainder that ranged from $91 to $178. Read more in your LivestockEye. Coalgate cattle and sheep • Prime Angus-Hereford heifers, 530kg, earned $3.50/kg • Prime Angus heifers, 535kg, fetched $3.45/kg
Temuka prime and boner cattle; all sheep • One 560kg Murray Grey-cross steer managed $3.34/kg • Beef and beef-cross steers over 520kg were consistently priced at $3.20-$3.30/kg • Charolais-cross steers, 486kg, earned $3.17/kg • Angus and Angus-cross heifers, 528-590kg, traded at $3.18-$3.24/ kg • Beef-cross heifers, 442-507kg, typically made $3.08-$3.15/kg There was plenty of competition evident for cows at TEMUKA last Monday. This included a consignment of 508-579kg Angus that achieved $2.82-$2.85/kg. Boner cows had a solid sale and $2.36/kg to $2.68/kg was a common occurrence in the 425-614kg range. Many sheep postponed their appearance as a result of weather conditions although nearly 150 prime lambs managed $220-$260 and the balance mainly fetched $180-$218. Not many ewes could be scratched together, and a pair made $280 while the rest were spread from $125 to $248. Several pens of Merinocross in the store pens earned $181-$211. Other forward types earned $148-$157 and medium pens $136-$139. Read more in your LivestockEye.
OTAGO Balclutha sheep • Heavy prime ewes lifted to $180-$230, medium $140-$170 and light $80-$120 • Capital stock 2-tooth ewes, scanned 145% to a terminal, ram made $170-$200 Prime sheep throughput dropped to the lowest number this year. Prime lambs sold to $170-$210, medium $160, and light $130-$140. In the store pens, the top end of ewe lambs made $140, medium $120-$130 and light $80.
SOUTHLAND Charlton sheep • Heavy prime ewes lifted to $230, medium $160-$170 and light $120 • Local trade rams earned $65-$80 There was a medium yarding of store lambs at CHARLTON last Thursday. The top end made $155, medium $130-$140 and light $100-$110. Heavy prime lambs eased to $197, while medium held at $170-$180 and light $150. Castlerock cattle fair • Top R1 traditional steers reached $1000-$1070 • Top R1 traditional heifers made $800-$880 CASTLEROCK in Southland is an early starter for yearling fairs but held a very successful sale last Friday. Though older cattle were yarded, 95% of the tally were R1 cattle and Hereford, Angus and Angus-Hereford dominated as annual draft lines were penned. Values lifted approximately $50 on 2020 as medium steers returned $850-$950 and third cuts, $650-$800 to trade around $4.00/kg. Medium heifers sold for $680-$750 and small, $500-$650 and sold in the range of $3.00-$3.30/kg. Most of the buying power came from a local bench as well as Maniototo and Canterbury.
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Markets
40 FARMERS WEEKLY – farmersweekly.co.nz – August 16, 2021 NI STEER
SI STEER
SI LAMB
($/KG)
($/KG)
($/KG)
6.10
6.00
9.05
HOGGET AVERAGE AT FEILDING MARTON FAIR ($/HD)
193.30
$3.40-$3.50 high $2.32-$2.37 Top South Island prime cows, 497-652kg lights Angus steers and heifers and run with Angus bull, at Rangiuru
Prime cattle prices up Annette Scott annette.scott@globalhq.co.nz
A
SHORTAGE of prime cattle is pushing prices up at the sale yards, as farmers carefully monitor the market. With plenty of urgency for finished cattle in the South Island, strong demand for a diminished supply of cattle is underpinning the current weekon-week lift in prices. At this time of the year, local trade is usually driving the beef market but this winter the exporters are giving the local butchers a run for their money in the sale yards, AgriHQ Livestock Insight analyst Nicola Dennis says. After an advanced prime kill this season, because of the lack of feed that saw farmers offloading stock early, cattle are now hard to find. “Most vendors have already cleared out due to the feed concerns,” Dennis said. “A few who were planning on holding out until spring have been enticed to hit the offload button by rising beef prices and persistent muddy conditions. “Those with crops ahead of them are prepared to wait for spring when prices promise to be even stronger.” North Island beef farm gate prices remain firm, with indicators mainly steady. PGG Wrightson South Canterbury livestock manager Joe Higgins says farmers are watching the market and sale yard tallies are higher than usual for this time of the year, as they divert killable stock to the yards. “There’s a very definite shortage of prime cattle at the moment and the sale yards are virtually dominated by traders buying on behalf of processors,” Higgins said. A large percentage of the big yardings at Temuka are dairy cross cattle. He expects buoyancy in the market will continue through the next four to six weeks. Against the backdrop of limited supply, steer prices firmed at Temuka
APPEAL: AgriHQ analyst Nicola Dennis says farmers who were planning on holding out until spring have been enticed to hit the offload button by rising beef prices.
The sale yards are virtually dominated by traders buying on behalf of processors. Joe Higgins PGG Wrightson last week to the highest level since 2019, with most good yielding lines of beef and beef-cross over 520 kilograms consistently priced at $3.20-$3.30/kg. Canterbury Park was also a sellers’ market as buyers competed and pushed prices higher. While a smaller yarding than Temuka, there was little to separate the betterquality steers and heifers over 510kg that fetched $3.43-$3.53/kg. Meanwhile, there is an upward swing in store cattle prices as beef schedules rise. The R2 cattle remain the flavour of the month, but there has been some renewed interest in yearling steers from buyers hoping to beat the spring market. “There is still plenty more upside to
come for yearling stock, which remains undervalued relative to beef schedules,” Dennis said. She says most regions are struggling to find supplementary feed to purchase so this could put hay and baleage harvesting, rather than store cattle purchasing, at the forefront of everyone’s minds. Rabobank beef analyst Genevieve Steven says strong demand, particularly from China, in addition to less market competition from Australia, has culminated in the elevated farm gate pricing in New Zealand. Rabobank anticipates that beef pricing will remain strong through to September off the back of continued demand from the US and China. Steven says limitations of beef exports from Argentina into China also provide an upside for pricing and demand for NZ beef. The US cow cull is tracking well ahead of normal, with demand remaining strong for beef. She says it’s expected US domestic pricing will appreciate over the coming years and could further help to strengthen demand and pricing for NZ beef, particularly while the Australian beef herd rebuilds.
ACROSS THE RAILS SUZ BREMNER
Hoggets hold court at the Feilding yards IT’S that time of year again, when old season lambs suddenly become hoggets and hold court on a Wednesday at Feilding. It certainly feels like this comes around quicker each year and this fair really does mark the beginning of the end of the old season lambs, as they make room for those bounding around the paddocks now with their mothers. For many years this sale has not only provided lamb buyers with the last big opportunity to secure old season lambs, it has also provided much to the Cancer Society. The annual Cancer Society appeal was once again very wellsupported by all involved in the sale. First and foremost the vendors, but also stock agent companies, trucking companies and buyers all played their part in making it a success, as over $12,000 was raised. The fair is an event that is etched into many calendars and not just by the buyers; for many it is a good excuse to simply head off the farm and catch up with the neighbours. But there is of course a business side to it and this year’s yarding featured just over 15,000 hoggets – a tally that was on the lower side than most years. That was largely due to high prices earlier in the season, which tempted lambs out and they have continued to flow with regularity into the strong Monday prime market. But what they lacked in numbers was made up for in size, as the top hoggets reached 60kg and few fell below 34kg liveweight. PGG Wrightson auctioneer Phil Transom says the results were pleasing. “It was a typical hogget fair; well-supported by all and just a really good day out,” Transom said. “Vendors offered up a sharp line-up and they sold on a good market, especially the lambs that fitted into the premium processor ranges”. The sale average was $193, up $36 on last year and even up $5 on the strong results of 2019. Top male hoggets achieved $215-$259 and the next cut, which covered almost all the balance, made $170-$210. Top ewe hoggets reached $200-$224, but most sold from $125-$191. suz.bremner@globalhq.conz
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