Farmers Weekly NZ September 16 2024

Red faces at OSPRI as upgrade fails

Bryan Gibson TECHNOLOGY Livestock

OSPRI has apologised to farmers and its shareholders after major flaws were found in a technology upgrade project.

An independent review of its Information Systems Strategic Programme (ISSP) identified issues with the technology project that was meant to integrate its animal disease management and traceability systems.

The review identified problems in every aspect of the programme, including the way it was governed and the suitability of the technology itself.

The costs of running it would be ridiculously high.

Dr Paul Reynolds

Chair Dr Paul Reynolds said OSPRI had let itself and its stakeholders down.

“The OSPRI board and management apologise to farmers and partner organisations that the improvements promised have not been delivered in a timely manner.”

Reynolds stressed that this issue did not impact OSPRI’s current disease management and animal tracing systems.

“There is no risk to the

assurances needed for export purposes and our shareholders can be assured that with their continued participation, our warning systems are as good as any in the world.”

Early progress on developing the new platform went well, but Reynolds said delays and cost concerns raised the alarm.

“The board was asking questions and receiving assurances and it put in independent reviewers to check on progress and to ask the question, ‘Is it reasonable for us to assume that this platform is going to be delivered on time or within the new timeframe, and is going to be successful?’

“And we received those assurances. However, delays continued and our former chief executive was increasingly uncomfortable and in the end the board decided that we would pause the program.”

Reynolds said the independent review made it clear that the project would not deliver what was required.

“Most importantly, and catastrophically, [the review found] issues with the complexity of the technology, platforms and architecture. It became increasingly apparent that what ultimately was going to be built was just going to be ruinously expensive to run.

“So we had issues about the complexity of the platform, issues

Continued page 3

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PEOPLE 14 Century-old farm and a lifelong nurse

Spring growth, rising schedules create perfect storm for store cattle market. NEWS 4

NZ’s new free trade agreement with Europe already working as intended. MARKETS 5

The dairy shed is a peaceful escape for nurse Megan Moore, who regularly changes between overalls and scrubs.

17-25

A strategy without a team behind it is just words on a page, says Kate Scott.

OPINION 13

News in brief

EDITORIAL

Bryan Gibson | 06 323 1519

Managing Editor bryan.gibson@agrihq.co.nz

Craig Page | 03 470 2469 Deputy Editor craig.page@agrihq.co.nz

Claire Robertson

Sub-Editor claire.robertson@agrihq.co.nz

Neal Wallace | 03 474 9240

Journalist neal.wallace@agrihq.co.nz

Gerald Piddock | 027 486 8346

Journalist gerald.piddock@agrihq.co.nz

Annette Scott | 021 908 400

Journalist annette.scott@agrihq.co.nz

Hugh Stringleman | 09 432 8594

Journalist hugh.stringleman@agrihq.co.nz

Richard Rennie | 027 475 4256

Journalist richard.rennie@agrihq.co.nz

Nigel Stirling | 021 136 5570

Journalist nigel.g.stirling@gmail.com

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Farmers Weekly is Published by AgriHQ PO Box 529, Feilding 4740, New Zealand Phone: 0800 85 25 80 Website: www.farmersweekly.co.nz

ISSN 2463-6002 (Print) ISSN 2463-6010 (Online)

Focus

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Fieldays chief executive Peter Nation will step down from the role in December.

This will end nearly 30 years of his involvement with the New Zealand National Fieldays Society, which owns and operates Fieldays and the 114 hectare site at Mystery Creek and the Events Centre. “I have made the decision to step aside so I can pursue more personal interests and time with family,” Nation said.

Nation steps down Welfare petition

A petition has been launched to stop imports entering New Zealand from countries that allow farming practices that would be illegal in this country.

The petition, by animal law expert and University of Auckland Associate Professor Marcelo Rodriguez Ferrere and supported by Animal Policy International, urges the government to enact legislation ensuring all imports meet New Zealand’s domestic animal welfare standards.

Costly disease

A foot and mouth disease incursion could cost New Zealand $14.3 billion a year in lost export values, according to a new report.

Biosecurity Minister Andrew Hoggard said the NZ Institute of Economic Research report reinforces his government’s commitment to “stamp out” any New Zealand foot and mouth disease incursion. The Ministry for Primary Industries presented the government with three management options for consideration – stamping out the disease, managing an outbreak over a longer period using vaccination, or living with the disease.

Quad bike fatal

Worksafe is investigating the death of a child in quad bike accident in Waikato on September 7. Police said emergency services were called to the Kaihere property after reports a quad bike had rolled. WorkSafe said it is too early determine the cause, but investigators are working to establish the circumstances and factors involved.

LIC joins cows for Africa bid

Staff reporter NEWS Genetics

LIC is collaborating with United States-based precision breeding company Acceligen and the Bill & Melinda Gates Foundation to breed heattolerant and disease-resistant dairy cows for sub-Saharan Africa.

The initiative seeks to address food insecurity in the region by providing highperforming dairy animals to help grow sustainable dairy markets.

It will combine LIC’s knowledge in breeding efficient dairy cows for pasture-based systems, with Acceligen’s cutting-edge gene-editing capabilities to produce animals that can produce more milk than native species.

LIC chief executive David Chin said the co-operative is proud to be involved with the initiative.

Embryos bred from LIC’s world-class pasture-based genetics will be sent to the US, where Acceligen will perform gene edits on the stem cells.

Continued from page 1

in the program, about its timely delivery. But even if all that was swept away, we came to the understanding that the costs of running it would be ridiculously high.”

In a joint statement, shareholders Beef + Lamb NZ, Deer Industry NZ and DairyNZ said they were incredibly disappointed with OSPRI’s performance.

“We are working with the OSPRI board and recently appointed chief executive to take urgent

Synlait rescue plan back on track

Hugh Stringleman NEWS Dairy

SYNLAIT Milk’s do-ordie special meeting on Wednesday, September 18 will go ahead despite the complaint lodged by co-founder, former chief executive and former chair John Penno.

Penno sought to have only minority shareholders eligible to vote on two crucial resolutions to raise capital from majority owner Bright Dairy of Shanghai and major customer a2 Milk Company.

His complaint was dismissed by the sharemarket regulator NZ RegCo and the Takeovers Panel.

Synlait has warned several times that the recapitalisation is essential to ensure the future of the listed dairy company.

The votes will now proceed with Bright able to vote on the a2 Milk resolution and a2 Milk able to vote on the Bright resolution.

The intended outcome is that Bright contributes $185 million and becomes a 65% controlling shareholder and a2 Milk contributes $33m to maintain its 20% stake.

Both big brothers have said they favour the recapitalisation plan and therefore the resolutions are expected to pass.

The special shareholders meeting will be held at 9am

steps to get this project back on track. Shareholders have added representatives to the OSPRI board’s ISSP sub-committee to ensure additional expertise is available to recommend the way forward.”

The OSPRI shareholders, in consultation with the Ministry for Primary Industries (MPI), have also initiated an independent review of the OSPRI governance framework.

“The review has made a number of recommendations for strengthening OSPRI’s governance

on Wednesday at the Synlait Dunsandel plant and online.

“The support of all shareholders remains essential to safeguard the future of Synlait, and all shareholders are encouraged to exercise their right to vote at this important meeting,” the company said.

That appeal is directed at minority shareholders, whose collective influence will fall from 40% to 15%.

Synlait has argued that any other form of capital raise, or liquidation of the company, would wipe out shareholder value.

Meanwhile Synlait has decided to stop receiving milk at its Pōkeno plant in South Auckland and has called on Open Country to process the supply of 54 Waikato farms.

“They will remain Synlait suppliers until the end of their supply agreements and we will remain their first port of call for support,” chief executive Grant Watson said.

Pōkeno will change over wholly to non-dairy, plant-based proteins for the manufacture of advanced nutrition products.

Watson said that after a thorough review the company now had insight to lift the financial performance of world-class assets.

Switching between dairy and non-dairy had hindered operational efficiency.

and shareholder oversight. The shareholders are discussing the governance recommendations with OSPRI and OSPRI’s other funder, MPI, and have committed to all involved that changes will be made promptly over the next few months.”

Reynolds said he acknowledged the criticism.

“I think that in hindsight, the business case could have been clearer, more robust, more fulsome. I think the level of clarity around what was needed was probably not there.”

The support of all shareholders remains essential to safeguard the future of Synlait.

Synlait

Pōkeno began processing plantbased products for nutrition and healthcare multinational Abbott after an expensive refit. Analysts said that the Pōkeno

OSPRI is now working to fix key programme management foundations, is simplifying the new platform’s architecture and prioritising the replacement of the NAIT system, Reynolds said.

“OSPRI is confident that the measures implemented in response to the review will enable us to deliver a NAIT replacement system that meets the needs of New Zealand’s primary sector.”

There will be a significant impairment to the value of the current MyOSPRI asset, but the figure is yet to be confirmed.

site cost about $400 million to build over six years and is running with annual losses as high as $40m.

A buyer for Pōkeno will not be actively sought but if a compelling offer is made the company may consider it.

Synlait has raised its forecast farmgate milk price for the current season by 60c to $8.60 and will confirm its final price for last season with the annual results on September 30.

Chief executive Sam McIvor said as well as the independent review, he is taking a “deep dive” into the technology in the business.

“We’ve pulled in some expertise to do that and I guess that will give us the clear path on whether we fix what’s been built, or is it an alternative route, for example, of starting again. We’re deep into that process at the moment.”

McIvor stressed that the development of the new NAIT system user interface, created in collaboration with farmers, has progressed well and will be used.

REARRANGED: Synlait Milk CEO Grant Watson says a viable pathway to profitability for the Pōkeno plant has been settled on.

Store cattle market goes ‘ballistic’ as stars align

Annette Scott & Gerald Piddock NEWS Livestock

THE earliest spring pasture flush in recent years across large parts of the country, coupled with rising processor schedules, has created the perfect storm for the store cattle market.

The sudden price spike in store values at saleyards, especially in the South Island, has been influenced by the autumn drought that brought good numbers of both prime and store cattle to the market, PGG Wrightson livestock manager Joe Higgins said.

“There’s also been minimal numbers of beef cross calves retained in the dairy industry and there’s no doubting the recent strengthening in the market has been fuelled by confidence from the surge of early spring pasture growth.”

Most processor schedules are $1.10-$1.25/kg stronger than a year ago, hovering around the $7 mark.

“This would be the best store beef prices I can recall for this time of the season.

“There is positivity; farmers are sitting pretty comfortable. The market has reached its pinnacle and holding.

“I wouldn’t like to say whether it’s market or procurement driven, but the positivity is there so we’re good to run with that,” Higgins said.

Hazlett livestock manager Ed Marfell said the early spring pasture flush coupled with the large number of calves that went to the North Island earlier, clearing out the yearling stock numbers in the South Island, has impacted the market.

In the last two months, there doesn’t seem to be anything holding it back.

Vaughan Larsen PGG Wrightson

“A lot of calves left Canterbury with the autumn drought, and we have certainly felt the recent buying power of the North Island pushing exceptional prices across the board and above expectation.

“We have seen huge inquiry from the North Island for young stock

Notice of change to TB Slaughter Levy Rate

and two-year cattle and once they cross the water they don’t come back to the mainland.

“These are not one-off sales, these hyped sales have been going for a month or so and while the market down here is strong, we are not at the level of the North.”

The agents said the margin would be reasonable for farmers selling prime stock at $7/kg and who have done their sums; they can afford to buy replacements, despite the inflated store market.

“Farmers want something to eat the grass and make money and if replacing killed prime stock it’s not a problem, it can be justified paying in the current store market.”

According to NZX data, growth rates in Canterbury for the August–September period have been above average while the rest of the country is similar to previous years.

Waikato-based PGW agent Vaughan Larsen described the prices at the weekly cattle sale at Frankton as “ballistic”.

“In the last two months, there doesn’t seem to be anything holding it back. It’s a perfect storm for the store price.”

Heifers are selling at $4.55/kg

Pursuant to Clause 10 of the Biosecurity (Bovine Tuberculosis – Cattle and Deer Levy) Order 2016 notice is hereby given that commencing 1 October 2024 the rates of slaughter levies for Dairy and Beef Cattle will change. Levy rates from 1 October 2024 are (GST exclusive):

• Dairy cattle

$12.25 per head (increased from $11.50 per head)

• Beef cattle $4.50 per head (decreased from $4.75 per head)

Background to change

The National Pest Management Plan for Bovine Tuberculosis is funded by agreement between the Ministry for Primary Industries, DairyNZ, Beef + Lamb New Zealand, Deer Industry New Zealand, and TBFree New Zealand. Funding is through a combination of fixed funding and levies charged on the slaughter of cattle.

The respective industry shares of this funding are subject to annual adjustment based on shifts in the relative size and value of each industry. The funding received is also affected by the actual cattle slaughter volumes for the dairy and beef sectors. Each financial year a reconciliation is made of the amount contributed by each industry and levy rates may be adjusted accordingly.

Sam McIvor, Chief Executive, TBfree New Zealand Limited.

For further information on OSPRI’s TBfree programme, please visit ospri.co.nz

LW, which equated to over $1000 for a 250kg animal, 430kg twoyear heifers averaged $3.58/kg, up around $1/kg LW on 12 months ago.

It is not just store prices. The prime market remains strong and the price for manufacturing beef from cull cows is also high.

AgriHQ senior analyst Mel Croad noted in the latest Livestock Outlook report for September that farmgate beef prices for bull, prime and local trade are sitting at record highs for this time of the year.

AgriHQ data shows that due to

the lack of killable cattle through winter, prime and local trade prices have lifted by double their usual amount since June.

“This boosted confidence and it’s clear there is a lot riding on the beef job to hold up through spring to ensure on-farm returns are met.

“Although we have very strong prices now, the general trend is for slaughter prices to seasonally ease as we get closer to summer.”

By how much will be determined by export demand and how quickly spring cattle supplies build, Croad said.

Growers want contracts before committing

Gerald Piddock NEWS

MAIZE growers are playing a waiting game regarding their planting intentions for this spring after a difficult past season marred by low prices and falling demand.

Waikato Federated Farmers arable chair

Don Stobie described those intentions as “the $64,000 question”.

“A lot of them are stepping back and having a deep think about what they are going to do going forward. A lot of growers at the moment are saying they are going to reduce their planting intentions for the coming season.

“The other thing they are talking about is any ground they do plant, they are wanting a contract on for the crop.”

This will give them surety of price at harvest time because so many got badly burned last season from the low price and lack of demand, he said.

Corson Maize national business manager Graeme Austin described the silage industry as static and the grain industry as hesitant.

“There are a whole lot of things happening, they are not sure about contract prices yet, so end users haven’t committed to contract amounts and growers are waiting to hear what contract prices will be.”

The other issue at play is the shortage of natural gas, which companies such as Vittera use to fuel their maize grain dryers, he said.

The contracts these companies for gas have ceased, meaning they will have to purchase the gas on the open market.

“The likelihood is there will be gas available, but we don’t know what the price will be.”

Stobie said the early spring will have little impact on planting dates as farmers are wary of an early spring cold snap that could affect a freshly planted or emerging crop.

“Growers will be wanting some surety that someone is going to want their crop later on. I wouldn’t envisage that there will be many people growing without a contract this season.”

One positive for the maize growers is they could benefit from Fonterra and Nestlé’s push to reduce Scope 3 emissions, he said.

“Maize grain has a very good emission intensity rating compared to palm kernel and currently we import around 2 million tonnes of palm kernel into New Zealand. If they reduced that by even 10%, that would be potentially 20,000t of grain farmers could swap to using.”

IMPACT: Hazlett livestock manager Ed Marfell says the early spring pasture flush, coupled with the large number of calves that went to the North Island earlier, has impacted the South Island market.

Flow of goods brings trade pact to life

Neal Wallace MARKETS Food and fibre

THE first consignment of New Zealand beef has arrived in Europe, and European construction supply companies are reciprocating with exports to NZ. This is proof, according to officials in Brussels, that the free trade agreement (FTA) is working as intended.

Signed in July last year and having come into force in May, the FTA could potentially provide a $1.8 billion boost to the NZ economy by 2035.

There was some criticism at the concessions achieved by NZ, but the word in Brussels is that our negotiators achieved more than expected due to tough bargaining.

NZ successfully secured improved access for politically sensitive beef, sheepmeat and dairy products, with the terms of the FTA accepted by member states and the European Parliament.

The terms of the FTA are such they NZ could potentially supply up to 60% of the European Union’s butter imports, up from 14% currently, and NZ cheeses could make up 15% of the EU’s imported cheeses, up from 0.5% today, Access for beef increases eightfold to 10,000 tonnes while in sheepmeat, NZ could supply up to 96% of EU imports.

In comparison, the FTA being negotiated by the EU and Mercosur and large beefproducing countries Uruguay, Argentina, Paraguay and Brazil, allows for tariff-free imports of only 99,000t of beef.

Australia is still to secure an FTA with the EU and the consensus is that it is not finalised because it broke down when Australia attempted to backtrack on mutually agreed quotas for market access.

NZ trade officials said a golden era of international trade has ended but in Brussels they term it the end of the age of innocence for trade.

The EU and China are engaged in

a tit for tat dispute over imports of Chinese-made electric vehicles.

The EU is considering imposing tariffs, claiming China is competing unfairly due to excessive government financial support.

Europe’s biggest manufacturer, Volkswagen AG, announced last week it is considering closing a plant that makes electric Audi cars due to the flood of vehicles from China.

China has retaliated by targeting imports of EU dairy and brandy, and observers say the tit for tat action is only going to intensify.

What the world has previously known as free trade is being redefined in Brussels as free and fair trade.

To EU officials that means sustainability and climate change are priorities when negotiating market access.

Covid tested its supply chains, but the Ukraine-Russia war has forced a rethink, prompting Europe to diversify supplies of key products such as energy and food to ensure security.

Prior to the conflict, Europe

To EU officials sustainability and climate change are priorities when negotiating market access.

MEETING the MARKET

was reliant on Russian gas but as European countries sided with Ukraine, Russian President Vladimir Putin used its supply as a political weapon.

Europe has accordingly made a huge effort to diversify away from Russian gas. The share of Russia’s pipeline gas as a percentage of EU imports dropped from over 40% in 2021 to about 8% in 2023.

In 2022, just 23% of energy was from renewables but the EU has set a goal of taking that to 42.5% by 2030.

In efforts to strengthen the supply-chain resilience, it is partnering with what it calls the G7-plus.

That group includes the G7, the world’s seven most advanced countries – Canada, France, Germany, Italy, Japan, United Kingdom and United States – plus sympathetic countries South Korea, Australia and NZ.

Europe is still seeking trade deals.

Negotiations with the selected Mercosur countries continue. They have been underway for 25 years, looking for opportunities in the Indo-Pacific and India.

• Wallace is visiting

in six weeks to report

a

Forestry frustration remains

Neal Wallace MARKETS Regulation

THE potential trade flashpoint of the European Union’s deforestation regulations does not look like going away.

The view in Brussels is that implementation of the regulations, which obligate importers and European producers to provide evidence that certain products have not caused deforestation, will not be dropped but its implementation could be delayed.

The regulation covers products and their derivatives such as beef, leather, furniture, wood, paper, soy, cereals, chocolate, coffee, palm oil and rubber, including tyres.

Exporters say it is too far reaching, impacting countries

such as New Zealand that do not have deforestation.

They claim that meeting the required EU standards will require historic and current satellite imagery or geolocation data of where the product was sourced.

The regulation, strongly promoted by non-government organisations, is designed to prevent deforestation of natural areas for production, such as the Amazon.

The policy applies to imports of related products into the EU and is scheduled to be implemented from January 1.

Such has been the backlash, including from NZ, that some in Brussels believe its implementation could be delayed to allow more consultation and deliberation but is unlikely to be abandoned.

seven countries

on market sentiment,

trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.

SENSITIVE INDUSTRY. The first consignments of NZ beef have arrived in European markets under the free trade agreement, achieved despite it being a particularly sensitive sector. Photos: EU Commission

TRADE PROGRESS. The EU-NZ free trade agreement could see NZ supply significant volumes of butter and cheese.

A growing appetite for sustainable dairy

Neal Wallace MARKETS Dairy

ASENIOR executive of one of New Zealand’s largest dairy customers, Mars, is applauding sustainability efforts by NZ dairy farmers and is urging them to continue working with their customers.

7 COUNTRIES IN 6 WEEKS

Srikanth Ramachandran, Mars Snacking’s global category director for dairy, said Mars is similarly improving its sustainability, and he acknowledged gains made by pastoral farmers despite significant challenges.

Speaking to Farmers Weekly in Chicago, Ramachandran said continuous improvement will come from farmers embracing new tools and systems as they become available. He said farmers are not alone.

“We at Mars share their sustainability mindset, which is why we are supporting NZ dairy farmers.

“But we need to go further and drive continuous improvement on farms so NZ can retain its production advantages. It is not just about driving environmental impact but also making it economically viable.”

Dairy is Mars Snacking’s second-largest greenhouse gas contributor behind cocoa.

Mars Snacking has a goal of halving its greenhouse gas emissions from a 2015 baseline by 2030, which will impact NZ dairy farmers by virtue of Fonterra being its largest global dairy supplier.

“Dairy and cocoa are the top two sources of emissions for Mars Snacking.

“Cocoa growers are making progress reducing their emissions and as dairy we have a huge potential to make a significant impact.”

Raw ingredients used by Mars Snacking contribute roughly 60% of its total emissions.

Ramachandran, who regularly visits NZ, acknowledges that NZ has the world’s lowest dairy production greenhouse gas footprint, but said housed-cow farm systems are likely to have earlier access to methane mitigation technology than pastoral.

Retaining that title requires NZ to relentlessly chase farm emission reduction tools.

“It’s a mindset to want to continuously drive a reduction of emissions on farm,” he said.

The ace card for Fonterra suppliers is the extensive farm-level database, which he said provides a foundation to determine the volume and source of emissions.

“It gives farmers a huge advantage. You can’t improve what you can’t measure.

“It will also help us set up an incentive or rewards system that is objectively based because we know exactly what that starting point is.”

Mars’s sustainability drive comes from its owners, the Mars family, but is increasingly raised by customers

Ramachandran said sustainability is part of the company’s DNA, which means balancing both the financial and societal sides of ledgers.

In hand with that is a mutuality policy of sharing benefits throughout the supply chain.

“Shared benefits will endure,” said Ramachandran.

Mars is investing NZ$75 million over the next three years in dairy sustainability alone under a “Moo’ving Dairy Forward” programme.

It includes farm-level investment in programmes alongside dairy companies Fonterra, Land O’Lakes, Interfood and Friesland in methane emission reduction, manure management and feed production.

With Fonterra it is exploring use of the asparagopsis seaweed as a feed supplement to reduce methane and in Poland it is launching one of the first and largest Bovaer feed additive trials with Interfood and Mlekovita.

In a further example of how seriously Mars is taking sustainability, he said remuneration for leaders is linked to progress against Mars’s sustainability goals.

“The approach here is that each manager has to own and drive performance.”

This multi-pronged focus has helped the company achieve a 16% net reduction since 2015 – while the business has grown 60%.

Mars Snacking, of which dairy is a key ingredient, is a NZ$29 billion business that has brands such as Bounty, Celebrations, Wrigley’s gum, M&M’s and Snickers. It is part of Mars Inc, a NZ$80bn-plus family-owned business, with a diverse and expanding portfolio of pet care products and veterinary services, snacking and food products.

• Wallace is visiting seven countries in six weeks to report on market sentiment, a trip made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.

FLAG targets a signal of change to come

Neal Wallace MARKETS Sustainability

FOOD producers need to be preparing now to meet the sustainability targets required by their markets, says a Rabobank business strategist.

Marjan van Riel, a Rabobank senior business strategist in food and agribusiness for Rabobank in the Netherlands, said sustainability issues are a priority for companies and remain so for governments, evidenced by their importance transcending changes in administration.

These challenges are not going away, but food producers have time to meet emission targets, she told Farmers Weekly.

“You better start preparing today instead of rushing to do more in the future,” she said.

Sustainability concerns include climate, water quality and quantity, land use, biodiversity loss and social issues.

The Paris Accord recognised the importance of not putting food production at risk while reducing greenhouse gas emissions, but, Van Riel said, it did not provide a free pass.

The growing global population requires more food and, as wealth increases, so does demand for carbon intensive food.

But that does not mean the environmental impact of that production can be ignored.

The United Nations Intergovernmental Panel on Climate Change (IPCC) recognises that the agriculture sector cannot completely decarbonise because biological processes will always occur.

The IPCC aims for carbon dioxide to reach net zero sooner than all other greenhouse gases combined, including methane and nitrous oxide.

But Van Riel said consumers, banks and governments are asking producers what progress they are making.

“The direction and momentum is clear. Steps are being taken but we need some time to come together in practice.

“But this will not go away.”

It is also not just a European Union issue but is spreading globally and surviving changes in government.

You better start preparing today instead of rushing to do more in the future.

Marjan van Riel Rabobank

“It can swing depending on how fast a government wants to go, but the direction is one way and is probably not going to disappear with another government.”

At corporate level, Van Riel said, companies that have 20% or more of their emissions from the forest, land and agriculture (FLAG) sectors are required to set FLAG-specific emission reduction targets to retain certification by the Science Based Target Initiative (SBTi) climate organisation.

Danone and Rémy Cointreau were among the first with approved FLAG targets but are being followed by a who’s who of the food industry: Charoen Pokphand Foods, Domino’s, Heineken, Hilton Foods, Sainsbury’s, Mars, McDonald’s, Nestlé, Sime Darby Plantation, Sodexo, and Tesco.

The aim of signatory companies is for a

MEETING the MARKET

7 COUNTRIES IN 6 WEEKS

TIME: Marjan van Riel, a Rabobank senior business strategist in food and agribusiness, says food producers have time to reduce their emissions.

30% decline in FLAG emissions by 2030 and a 72% reduction by 2050. They also require a 90-100% reduction in energy and industrial emissions by that date.

FLAG-accepted reductions can be steps such as stopping land-use change emissions, including from deforestation, reducing on-farm emissions by improving agricultural practices, changing diets, reducing food loss and waste as well as increasing carbon removals or carbon sequestration below and above ground.

The removal or sequestration of carbon from the atmosphere can include the restoration of forests, sustainable forestry management and agroforestry, and an increase in agricultural soil and biomass carbon sequestration.

A recent analysis of 843 European companies by the Carbon Disclosure Project reported significantly more companies had absolute emissions reduction targets approved by the SBTi, with 47% in 2022 versus 14% in 2019 but that these targets covered only 13% of the total GHG emissions disclosed.

This suggested that Scope 3 emissions – activities from assets not owned or controlled by the reporting organisation but which indirectly affect its value chain –remain a challenge despite in some cases contributing 90% of a company’s emissions.

Ben & Samantha Tippins

Sharemilking 950 cows in Tokoroa

Par tnering wit h farmers like t he Tippins to reach milk quality targets.

Dairy farmers like Ben and Samantha know that being proactive with udder health from the star t of calving is crucial for a successful season

With 950 cows and a switch to once-a-day, maintaining a consistently low somatic cell count was always going to be a challenge. But by teaming up with FIL and implementing a 10-step milking routine, they ’ve seen significant results: fewer mastitis cases, lower SCC, and more milk in the vat.

They ’ve also shaved an hour and a half off milking time, giving them and their team more family moments.

Now that ’s what we call a successful par tnership.

Learn more about Ben and Samantha’s success by scanning the QR code or visiting FIL.co.nz.

New pan-industry organisation mooted

Hugh Stringleman NEWS Agriculture

COLLABORATION

Aplatform called The Common Ground has been launched by AGMARDT and KPMG, for the food and fibre sector to tackle shared problems.

It is aimed at the 150-plus industry good organisations in the sector, AGMARDT general manager Lee-Ann Marsh said.

“The call is to everyone to join a constructive conversation about our collective future,” she said.

“We are proposing one potential vision on The Common Ground platform, to stimulate discussion and debate on how to break down silos and meet the many shared challenges and opportunities ahead.”

A 40-page report on the platform is available on thecommonground. org.nz website, written by Marsh and three KPMG authors, Ian Proudfoot, Andrew Watane and Brig Ravera, and citing input from 26 industry subject matter experts.

Proudfoot, who has led the annual KPMG Agribusiness Agenda publication for the past 12 years, said The Common Ground concept can help unlock new funding opportunities and reorient the sector’s focus.

It needs to be aiming outwards towards global markets than inwards behind the farm gate.

Although the industry-good structure has been successful in the past, its constraints can no longer be ignored, he said.

“An erosion of trust, shortterm decision-making, siloed inefficiency and the lack of focus on global markets are limiting our ability to confront risks and compete for global capital and market share.”

The Common Ground approach will pool resources and act as a back-office engine room.

Areas of collaboration include on-farm energy, rural wellbeing, high value exporting, zero carbon production systems, sustainable oceans, protection of Taonga (IP/mātauranga), water quality and quantity, diversification of producer income, future workforce and agri-education, soil health, rural prosperity, biodiversity, animal welfare and adapting to climate volatility.

The engine room functions include a standard enterprise platform shared by all participating organisations, cutting the estimated $9-plus million spend annually on duplicated back-office services like software, accounting, legal or HR.

Another goal is to reduce data entry duplication for individual

producers. Marsh said The Common Ground is just one vision of the future of industry-good in the sector and the proponents would like to hear back from all corners, especially from producers.

The authors considered alternative industry-good structures and models here and abroad and while all had their strengths and weaknesses none were able to address the collective issues.

The nine-month exercise began with a question: Are industry-good organisations good for industry?

The 150 organisations are mainly producer funded with 33 commodity levy orders gathering about $164m annually, plus $16m of membership subscriptions.

Biosecurity levy orders account for $75m of the $183m total annually.

In other countries industry-good organisations are majority funded or co-funded by the government. For example, in Australia $300m annually goes into rural research and development.

In NZ, duplication of effort and resource is a commonly identified problem and organisations, both levy-funded and subscription, must regularly demonstrate their value.

Increasingly, populism has taken over value demonstration, and addressing the immediate needs

of producers has become the focus rather than addressing the most critical needs.

“Organisations are choosing not to address complex needs in order to prioritise remaining relevant and surviving.”

Four key constraints appear to be holding the sector back from its potential, the report says.

These are a lack of trust, inadequate aspirational thinking, turf wars and inward thinking, not outward.

The belief that industry-good organisations are acting in the best interests of producers has been eroded.

Lack of trust between

organisations and with regulators means no confidence that anyone else would have the capability or credibility to do the job better.

“Too few are thinking of an aspirational future for New Zealand.”

Territorialism around land use is creating barriers to working together and encourages siloed thinking.

The export sector is oriented upside down, missing connections to customers and markets.

The proposed Common Ground structure would be voluntary and host communities of action that identify the right people and seek funding to find solutions.

UNLOCK: Ian Proudfoot says The Common Ground concept can help unlock new funding opportunities and re-orient the sector’s focus.

Colraine focus pays off in record price

Hugh Stringleman MARKETS

Livestock

COLRAINE Herefords at Ohaupo, near Hamilton, has set a yearling bull price record for the breed of $37,000 in what is only the second on-farm auction for the stud.

Colraine Washington 23 421 was bought by Mahuta Herefords and sold with a guaranteed oneyear dairy semen contract from LIC for 10,000 straws. He was independently identified by LIC beef genetics team as the very top Hereford yearling bull, suited to what the dairy beef semen market is demanding.

John and Mary Allen, Mahuta Herefords at Tuakau, will still hold all semen rights for the beef cattle market in NZ and overseas.

Colraine principal Colin Corney said the sale vindicates a 10-year dedicated breeding programme focusing on calving ease, growth and a drive to improve eye muscle area along with intramuscular fat.

“The improvements are due to us working along with our

good friend Dave Warburton, a production veterinarian who set up a group of breeders to join him importing genetics from the United States, Canada and Australia to help lift key traits within the NZ Hereford population.

“On top of this we have invested heavily in recording as much as we can on all our animals to provide a genetic package that is as reliable as possible.”

Colraine sold all 10 of its bulls and averaged $6100, compared with last year’s $3480.

The sale was in conjunction with Kanuka Polled Herefords, which sold eight out of eight and averaged $3112 with a top of $4200 for Kanuka Seismic 2302.

The third vendor was Arabica Herefords with a complete clearance of nine bulls, averaging $2733 and a top of $3200 paid by Tawanui Herefords.

Waimaire and Otengi Herefords at Kaeo in the Far North kicked off the spring bull sale season with a top price of $9500 for a yearling paid by Bluff Herefords.

The average price paid for two-year-olds was $3960, with a top of $5000, and the averages for 18-month and two-year

bulls were $2943 and $3851 respectively.

Bluff Herefords at Glenbrook, South Auckland, had a full clearance of 48 bulls, averaged $3389, nearly $1000 up on last year, and had a top price of $7700 paid by Streamlands Herefords.

Staying in Northland, Te Atarangi Angus at Te Kopuru had a complete clearance of 120 bulls and averaged $3856 compared with last year’s $3457.

Top price was $8500 paid by J Marchant.

Maranui Herefords and Angus at Waihi cleared the offering of 25 Herefords and 14 Angus, averaging $3000 and $3614 respectively.

Top price was $11,500 paid by

Matapara Angus at Te Puke.

Totaranui Angus, Pahiatua, sold 76 of 79 bulls offered, averaged $4453 and had a top of $9000 paid by Ross Bolt of Horoeka.

Craigmore Herefords at Ohaupo sold 97 bulls with an average of $3037 and top prices of $6000 paid by Riverton Herefords and $5000 paid by Colraine Herefords.

Hoobees Herefords, Coroglen at Coromandel, sold 10 of 10 offered and averaged $4570 with a top of $8000 paid by Te Puna Herefords.

bull sales.

Trade union critical of govt over mill closures

Staff reporter NEWS Energy

THE New Zealand Council of Trade Unions Te Kauae Kaimahi has criticised the government for failing to bring a plan to the table to save around 300 jobs in the Ruapehu district, following Winstone Pulp International’s decision to close two mills.

Hundreds of people are set to lose their jobs after Winstone Pulp, one of the Central North Island’s biggest employers, announced last week it will be pulling the plug on the Karioi pulp mill and the Tangiwai sawmill for good.

NZCTU president Richard Wagstaff said the mill closures will be devastating for the Ruapehu district, which is already dealing with high unemployment and a lack of opportunities.

“Government has a responsibility to keep rural communities alive by supporting regional economic development and stepping in to show leadership when critical industries are struggling. Writing off whole communities is simply unacceptable.”

In recent weeks, the company had been meeting with energy company Mercury and government ministers to find a way to keep the mills open.

RECORD SETTER: Colraine Washington 23 421 has set a breed price record for Herefords in the first batch of spring yearling

From the Editor

The world is changing and we need to adapt

Neal Wallace Senior reporter

FOR most of us the list of positives about living in New Zealand is extensive and far exceeds the negatives.

But a lack of an international perspective is one point counting against our South Pacific paradise, something you quickly appreciate when in places like Europe.

In Europe you have 500 million neighbours and in just a few hours’ drive you are in a different country, usually with a different international view of the world.

In comparison, NZ’s isolation and distance from key markets restricts that global context, more so when your focus is fixing a fence, milking the cows or sowing a new crop.

Yet this broad perspective is crucial for food producers because the pace at which the world is changing is accelerating and we need to keep up.

And we aren’t.

It wasn’t so long ago the growth of plant-

based protein was such that eulogies were being prepared for animal protein products. Just a few short years later, those imposters have virtually disappeared.

Recently animal fats were being categorised as the new tobacco, yet as we reported last week the world wants dairy protein because of its health and wellbeing benefits.

Fads and trends rapidly wax and wane and we need to keep up.

The world’s leading food companies, such as McDonald’s and Mars Wrigley, still want our meat and dairy, there is absolutely no disputing that.

But it’s no longer a linear equation and that is where our lack of international perspective hampers us.

They acknowledge we have a low greenhouse gas emissions footprint, but want more than just our milk powder, butter, cheese or beef. They also want evidence that we take seriously their sustainability and animal welfare concerns.

These standards reflect what their consumers, communities, financiers, owners and, ultimately, their governments require.

Sustainability is no longer a nice-to-have in business these days. It’s a bottom line.

The European Union – unkindly anointed by some as the world’s leading exporter of regulations – has a suite of environmental sustainability policies dubbed the Green Deal.

An indication of its priorities is that they are being implemented despite independent

analysis calculating that they will reduce livestock numbers by 10-15%.

Sure we can tell them to take a jump, but these are the high-paying, A-grade customers.

Do we really want to be playing with those in the second and third divisions?

We need to act because, as McDonald’s revealed, some countries previously considered pariahs are competing for our spot in the starting XV.

Amazon biome beef farmers are now supplying McDonald’s, prepared to provide irrefutable evidence their production methods are not contributing to rainforest loss.

The world is rapidly changing.

Obviously these additional requirements are daunting for NZ farmers squeezed between low returns and rising costs and facing a financial loss or breakeven situation.

But these major customers are not about to hang us out to dry.

They are investing billions of dollars into supply chain resilience and research into greenhouse gas emission mitigation and they talk openly about paying premium prices to suppliers who meet certain standards.

This may sound fearful, but it also provides an opportunity if we can change our mindset.

The world is changing and we need to adapt so we don’t lose our privileged position.

Letters of the week Exotic forests a growing problem

Laurie Collins West Coast

I READ “Rural NZ risks being measured for a pine box” (August 26) and was left questioning the message that planting pines would improve freshwater.

I don’t know the credentials of the Our Land and Water National Science Challenge but I doubt whether science backs up a case for more pines. After all, the cases of pine slash covering farms, rural communities and beaches has been headline news in recent times. Pines suck water out of the natural ecosystem.

Then there are the wilding pines that originate from commercial plantings whether commercial or carbon farming. Wilding pines are a problem in almost every region, threatening iconic landscapes and high-country farms.

Then there’s carbon farming being used by speculators to invest in carbon prices.

The Labour government stupidly opened the door wide for foreign corporations to cash in, meaning large-scale loss of quality sheep and beef farms. Even the New York Times ran an article on how New Zealand’s climate fight is “threatening NZ iconic farmland”. Americans can see the folly, New Zealand governments cannot.

The units are bought by big polluters to offset their emissions and to generate carbon credits that can be traded for value in the Emissions Trading Scheme.

The ETS was another giant mistake by prime minister John Key and his government.

The policy of climate change is skewed and needs searching scrutiny of its integrity.

The practice of offsetting emissions is an “easy out” for industry polluters at the expense of New Zealand’s farming, the backbone of exports and the economy. Again it’s more stupidity.

The widespread establishment of exotic forests and, in particular, permanent exotic forests, is problematic because it:

• Takes out productive land use, ruins rural economies and communities.

• Increases environmental risks and damage – debris, fire, disease, pests, wilding pines. It reduces stream flows and deposits heavy silt loads in streams.

Best letter WINS a quality hiking knife

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

Letters of the week

You can’t eat a tree

Pippa Hawke Lincoln University student

WHY is New Zealand planting out so much farmland in trees if they are not able to be consumed by humans? The United Nations expects the world population to increase to 9.7 billion by 2050, so there needs to be food production systems that can produce high-quality protein foods to feed the world, and this is exactly what NZ sheep and beef farmers specialise in.

As an 18-year-old with the intention of a career in agriculture, I am questioning where the future in sheep and beef farming is when so much of our farmland is being converted into trees.

The roll-on effect of all this planting is devastating for our communities, economy and country. So many people, businesses and their services will no longer be required. This includes staff, mechanics, shearers, contractors, transport drivers, vets, agents and the list goes on. So what happens next? You get unemployment as businesses

Happier people, happier farms

Alex

White Lincoln University student

I AM writing to say how much I enjoyed your article “Have you hugged a farm worker today?” (farmersweekly.co.nz).

It is great to see the importance of dairy worker wellbeing getting recognised so prominently, as it can have such a profound impact on the dairy production system that is so important in New Zealand.

Championing the workers on the ground is the ethical and humane way to go. In society the welfare of animals on farm is, quite rightly, protected and valued. It is equally important to treat our farm workers just as well. It is a tough job that has exceptional people doing it; they are out there no matter the weather, and let’s not forget that they carried on throughout the pandemic when most of NZ sat safely at home waiting for the storm to pass.

With suicide rates and mental health issues in farming at scary levels, it has never been more important to enable farm workers to have a good work-life balance, while also earning a decent wage.

Looking after our farm workers will lead to better outcomes on farm, too. The article suggested providing professional development opportunities for staff members enhances mana for the staff by giving them responsibility, recognition and self-esteem, but also results in a bigger skills pool. It even frees up farm manager time, by enabling them to delegate a greater range of duties. Everybody wins!

My favourite thing about this piece was that it shared so many useful ideas about possible ways to look after staff that other managers could consider. As an active member of Young Farmers myself, the power of coming together with like-minded people to get advice, share experiences or just let your hair down cannot be underestimated.

Coming originally from rural England as I do, this article also brought back fond memories of arriving at the local pub to find groups of farmers from all backgrounds having a yarn and laughing the evenings away while supporting each other.

From the simple idea of one-to-one staff conversations to dropping off meals when people are unwell, there are easy ideas that any farm could use.

cannot survive. All this is going to lead to poverty.

It is not only the local communities affected, but the whole of NZ. With less livestock being farmed, prices will increase – which will push up the prices in the supermarkets. Meat processing facilities such as ANZCO and Alliance will have less work and risk having to cut staff or shut down as there will not be enough animals to keep the plants running. This leads to more unemployment.

Another contributing factor will be an increased risk of pests and Tb, which puts our food-producing industries at risk.

Once the land is planted in trees there is no converting it back, because if you do you have to repay the money for carbon credits that were earned off the land.

What is going to happen when all these

trees need harvesting after having been planted in the past few years? The timber market will get flooded.

I disagree with polluting companies that are buying land to plant trees or buying carbon credits to offset their carbon emissions.

This is just giving them an easy option to keep polluting and not taking any responsibility to improve their practices.

Trees that are planted now will be harvested in 30 years’ time, which means 30 years of lost sheep and beef export revenue. NZ farmers are among the most carbon efficient in the world, so why do we not keep doing what we are good at rather than destroying our country to offset other industries’ carbon emissions?

Rather than using plantations as a bandage, why do we not focus on cutting

want to be munching on pine trees in 30 years?

ECLIPSE® and MATRIX® are right at home in engineered to deliver optimum protection. Just like this oilskin vest - they stand the test of time when you need them most

greenhouse emissions in all industries? Do you really

FUTURE: As an 18-year-old with the intention to pursue a career in agriculture, Pippa Hawke is questioning where the future in sheep and beef farming is when so much farmland is being converted into trees.

We happen to grow plastic’s natural enemy

Alternative view

Wairarapa farmer and businessman: dath.emerson@gmail.com

I’M CERTAINLY over all the experts and politicians telling me what a great product wool is. I’m also over reading about our representatives going to international trade shows and conferences, rapturously selling the advantages of using New Zealand wool.

Wool is a magnificent product, we all know that, but my approach would be to develop a strategy to promote wool that goes back to basics.

We should be thinking outside the square and not continuing with the failed policies of the past.

We all know that wool ticks all the boxes regarding the environment and sustainability but that hasn’t been enough to encourage the purchasing of wool products and that needs to change.

For example, while researching this article I came upon a report from 2022 telling me that the United Nations Environmental Agency had agreed to develop a plan aimed at ending plastic pollution. The competition for wool is plastic in its many forms.

I read that “Heads of state, ministers for the environment and other representatives from UN member states endorsed the

resolution to proceed with the plan.”

Our Ministry for the Environment (MfE) said in June this year that we were “working with other countries on an international treaty on plastic pollution”.

It went on to outline the problem that “every year 19-23 million tonnes of plastic waste leaks into aquatic systems alone, harming marine life and ecosystems”.

The cynic in me would suggest that if that pollution came from the agricultural sector it would be front page news but because it comes from the oil industry that’s fine.

The prime minister’s Chief Science Adviser, Professor Juliet Gerrard, has been concerned about the amount of pollution that plastics have created and published her views on our options to reduce the problem.

They include wanting a National Plastics Plan, rethinking plastics in the government agenda and the need to mitigate environmental and health impacts of plastics.

We shouldn’t pursue the issue on our own but should present it as a campaign from the woolproducing countries.

According to the UN, microplastics have “infiltrated our oceans, soil and even the air we breathe”, and “humans constantly inhale and ingest microplastics”.

Microplastics “are linked to serious health issues such as endocrine disruption, weight gain, insulin resistance, decreased reproductive health and cancer”.

In addition, 8 million tonnes of plastic flow into the oceans annually with a correspondingly toxic effect on fish. These include severely affecting marine life and microplastics residing in tissue waiting to be consumed by a third party. Plastic is also a problem with our soil as the product in

landfills can “take up to 1000 years to disintegrate”.

In the United States, 32 million tonnes of plastic goes into the landfills annually and will remain there for 1000 years.

Microplastics can also have a major effect on our flora and fauna and can be present in tap water.

Imagine for a minute if that amount of pollution had been generated by farming pursuits?

There would be riots in the streets.

There has been much hue and cry about nitrates in waterways but the reality is microplastics are much worse. People wring their hands about glyphosate but it is more environmentally friendly than plastic.

We need to front-foot the issue by strongly arguing for the environmental friendliness of wool versus the environmental degradation caused by plastics.

We tax fuel, why not tax plastics? Synthetic carpets would be a good start. We limit nitrogen application, why don’t we limit plastic use?

We were going to tax food production. Why not tax plastic pollution?

We tax alcohol and tobacco because of the harmful effects on health. Why not tax plastics for the same reason?

The only reason I knew about the proposed UN policy on plastics was from personal research and not from mainstream publications. I only figured we were a signatory by going through the MfE website. Again, it was private research that showed me how environmentally destructive plastic was, how it was a major risk to our land, oceans and human health. Those stories need to be shouted from the rooftops.

As an aside, we shouldn’t pursue the issue on our own but should present it as a campaign from the wool-producing countries. Like what used to happen before New Zealand decided to go alone.

In the current debate rankings I’d give the oil companies 10 and

the conservation and farming lobbies zero.

How I came onto the story was from a Greenpeace missive asking me to sign a petition opposing plastics. It called on the NZ government “to support a strong Global Plastics Treaty at the UN”. At the time of writing it had over

73,000 signatures, which should tell us that there is strong support for a move away from plastics. That also tells me that we need to tell the story of wool a lot better than we are currently doing. Maybe even a visit to Greenpeace to tell them what’s missing in their debate.

How fast and low are rates set to go?

Straight talking

Cameron Bagrie Managing director of Bagrie Economics and a shareholder and director of Chaperon

BAD news has become good news with interest rates coming down, setting in motion a better economic climate for 2025. The catalyst has been a third recession in two years, only this one has really broken the back of pricing behaviour. Tough times have crimped spending, meaning discounting has become more widespread as firms seek to shift product.

Firms have spare capacity for work, so the pricing of work becomes sharper, especially in construction.

Higher unemployment has tempered wage demands as job

Continued next page

IMPACT: Alan Emerson says 8 million tonnes of plastic flow into the oceans annually with a correspondingly toxic effect on fish. These include severely affecting marine life and microplastics residing in tissue waiting to be consumed by a third party.

Alan Emerson Semi-retired

Doubling our ag exports starts with us

Eating the elephant

Kate Scott

This week’s guest columnist, Nuffield scholar Scott of Bannockburn Vineyard is an environmental consultant. She writes in her personal capacity.

LAST week’s Eating the Elephant column by David Eade was about the “how” of our sector’s strategy to double exports. I want to talk about the “who”.

If you’re like me, all this talk of sector strategy feels like déjà vu. The fact that we’ve tried a few times to have this conversation is a sign of two things. One, that it’s a burning issue and two, we have to address the reasons previous conversations and attempts have gone nowhere.

If we want to grow exports in a way that also takes care of our land and our people, a clear strategy

Continued from previous page

security becomes more important. This is the basic disinflation playbook.

There are still some sticking points that will add some persistence to inflation. Local authority rates and energy prices being examples not linked to the economy at all. Geopolitical concerns at any time could set of further disruptions to supply chains or oil prices.

However, there are enough “bad news” economic disinflation forces that point lower for inflation to give the Reserve Bank of New Zealand comfort to start cutting the Official Cash Rate (OCR). With an easing cycle underway the obvious question is how fast and low will interest rates go?

The trajectory for inflation will have a big say over how fast they can fall. A steady decline in interest rates over 2025 is dependent on the RBNZ’s “confidence that pricing behaviour remains consistent with a low inflation environment, and that inflation expectations are anchored around the 2% target”.

Let’s assume it all goes to plan and inflation keeps falling.

The first port of call for assessing how low they will go is the neutral OCR. This is where the RBNZ has the foot on neither the accelerator nor the brake. Think of it as when the RBNZ is on holiday basking in

has to be the first step. But a strategy without a team behind it is just words on a page.

To build that team, let’s focus on four things – herding the politicians, building future leaders, collaboration by design and the consumer.

Firstly, herding the politicians, or “multipartisanship” for the policy wonks out there. This might sound like the least likely place to start given the past few years, but hear me out.

Having all political parties across the spectrum agree on a regulation and investment framework to double exports would be a gamechanger. No more sudden rule changes after elections, and imagine the progress we could make with guaranteed priorities and investments alongside government.

To gently nudge the politicians through this gate, though, we first need to lock in the fundamentals of what the sector wants to achieve. What priorities can everyone, across all of our industries, agree on? Sure, there will be plenty of matters where we don’t agree (and shouldn’t). But by focusing on the shared goals (such as water quality, emissions and biodiversity), we can make agriculture one of those “bigger than politics” issues.

The second pillar we need for a strong team is a step-change in how we invest in future leaders.

Technology is going to help to double exports – no doubt about it – but it will be people who drive that change. People who intuitively understand technology

the sunlight of having inflation at 2% and not having to do a lot.

The neutral OCR has moved over time. Back in 2000, it was up around 5% and the OCR wobbled around it. By 2020 it was estimated to have fallen to 2%, allowing interest rates to be a lot lower on average.

New Zealand has a clear structural problem where home lending is being prioritised at the expense of lending into the real productive sector.

and millennial and Generation Z value sets. Tomorrow’s leaders.

A Path to Realising Leadership Potential in Aotearoa NZ’s Food and Fibre Sector, by Rural Leaders and the Food and Fibre Centre of Vocational Excellence (FFCoVE), sets out a principles-centred approach for leadership in the sector, allowing us to foster highperforming teams capable of successfully doubling exports.

I love this wisdom from Ta Tipene O’Regan (Ngai Tahu) on the difference between “future takers” and “future makers”.

Future takers, he says, “accept the future for what it is, feeling powerless to change what will be, and allowing today’s realities to obscure tomorrow’s potential”.

Future makers, on the other hand, “shape the future by reading the signs, determined to create future spaces for people to excel, undaunted by today’s problems, and ready to lead change”. We need future makers now.

The third bit is a tired record these days, but that doesn’t make it wrong. A focus on genuinely collaborating with each other, building on existing foundations. It’s pretty straightforward – we’re not going to succeed unless we work together.

It’s about realising that collaboration around an ambitious future is the only way to tackle this beast of a strategy. And yes, we might bump into a few challenges along the way, but with the right high-performing teams, the right leadership ecosystem and clear areas of agreement (and disagreement), we’ll manage.

If policy rates are below the neutral rate, policy is stimulatory and, conversely, rates above neutral make policy contractionary.

The RBNZ estimates the neutral OCR is now around 2.75-3%, which it is projecting the OCR will fall to. Demographic changes, productivity growth, and changes in consumers’, businesses’, and governments’ attitudes towards savings and investment can all influence the neutral OCR. Future neutral interest rates may be higher due to de-globalisation (adds to costs), ageing populations as they start to spend as opposed to save, decarbonisation (adds to

such as water quality, emissions and biodiversity, we can make agriculture one of those ‘bigger than politics’ issues, says Kate Scott.

of any future strategy.

Imagine the progress we could make with guaranteed priorities and investments alongside government.

Finally, let’s not forget who we’re doing this for – the consumer, our global oyster. Sure, doubling our exports sounds great, but even then, we won’t be feeding the whole world. Instead, we need to focus on a strategy that provides value to both our global consumers and New Zealanders at home with affordable, healthy food. Domestic food security must be a clear part

costs and inflation), and higher government debt.

Westpac economists and I put the neutral OCR around 3.5-4%.

Irrespective of the RBNZ or Westpac view of the neutral OCR, the good news is that they are both well below the current level of the OCR.

Historically, monetary policy spends periods both contractionary (above neutral) and stimulatory (below neutral), and here we are simply talking about rates going back to neutral from a period of being contractionary.

Other factors will also play a role over the coming years on borrowing costs. Two key ones are bank funding costs, of which the OCR is one factor, and the pricing of risk relative to the taking of it.

As people have invested more in term deposits in recent years, this has added to bank funding costs. As the Funding for Lending (FLP) programme also winds down (which gave the banks cheap funding from the RBNZ), banks will likely replace FLP funding with retail and/or wholesale funding, although this is more expensive.

New Zealand has a clear structural problem where home lending is being prioritised at the expense of lending into the real productive sector. There is also a related issue regarding the pricing of risk (think bank margins, which drive profits) relative to the taking

Staying stuck in our ways won’t cut it. We need to anticipate what our global consumers want before they even know it themselves. We’ve got the potential to offer the best of the best. The world really is our oyster – it’s just up to us to deliver.

In the end, realising our ambition to double exports will be a team effort. If we can nail multipartisanship, nurture strong leadership, foster greater collaboration, and stay laserfocused on our consumers, we’ve got a real shot at making this strategy work. And who knows, maybe we’ll even enjoy the ride along the way.

of risk (think about the volatility of bank earnings, which tend to be very stable). The Commerce Commission has highlighted an inconsistency between the two. Banks deliver superior returns without the risk.

This is where a key part of the upcoming Finance and Expenditure Committee’s inquiry into banking competition needs to focus.

Rural lending will always be more expensive than residential lending. Banks need to hold more regulatory capital against the former. This inquiry needs to put the spotlight on the risk-adjusted returns across residential, business and rural lending, though. We need to see attention on the return on capital from business, rural, and residential mortgage lending. The bottom line is that lower interest rates are welcome news but there is still some uncertainty over the magnitude of the decline we will see. Assuming inflation remains contained and monetary policy goes back to neutral, a 150225 basis points drop in borrowing costs from the peak seems in the ballpark with the lower estimate based on a higher assumed neutral rate and the impact of some changes in bank funding costs. More sunlight on bank rural lending margins could accentuate more competition and that projected decline in borrowing costs.

In this series, the team each offer a big-picture strategy for food & fibre.

SHARED GOALS: By focusing on the shared goals,

RELATIVE: While rural lending will always be more expensive than residential, Cameron Bagrie says the banking inquiry needs to put the spotlight on the risk-adjusted returns across residential, business and rural lending portfolios.

This global brand builds on a base layer

The Merino action-sports brand Mons Royale is the result of a winning partnership between a high-country couple. Annette Scott reports.

TWO Kiwi farm kids who had no interest in farming instead created the Merino clothing brand Mons Royale and showcased it to the world.

Born from the mountains of New Zealand and founded by Hamish and Hannah Acland in 2009, 15 years of Mons Royale has grown into a global success story.

Both from high country farms – Hamish grew up on Mt Somers Station in the foothills of Mid Canterbury, and Hannah (née Aubrey) hailed from Dalrachney Station near Wānaka – the couple knew there was potential to do something special with NZ Merino wool.

They pioneered Merino in action-sports apparel, creating garments that provide superior warmth, breathability, and durability.

It all started from a somewhat ambiguous email subject line.

Acland grew up in an entrepreneurial family learning how to see things differently, identifying opportunities and adding value.

His grandfather Sir Jack Acland farmed Mt Peel Station and was a former chair of the NZ Wool Board and vice-president of the International Wool Secretariat.

His father Mark, with Sir Tim Wallis, pioneered the NZ farmed deer industry and with his brother John introduced flexible cattle ear tags to NZ, and later the Lynn River gloves.

“My family has played a big part. Looking back I grew up in an entrepreneurial environment.

“I come from that sort of family where you are always looking at designing a better way, solving a problem.

“When I first met Hannah, I asked her to give me her opinion of Mons.”

The email subject line was “an anatomy of an idea”.

“Her feedback was quite brutal.”

Said Hannah: “I kind of dissected the anatomy of an idea.”

From that dissection the thread was woven.

“Essentially it was two Kiwi farm kids not interested in farming, ended up husband-and-wife business partners creating Merino clothing brand Mons Royale.

“There were very strong links: wool, farming, sports, design to connect the dots and have a real positive impact.

“Mons sits at the intersection of farming and a customer base; it was our job to create connection and demand.

“Starting a brand was quite hard. Hannah brought style and energy that balanced the sporting person I was.”

Hamish was a professional freeride skier, ranked fifth globally in 2005.

“As a professional skier I travelled the world for 10 years living out of ski bags, and I noticed that I wouldn’t wear the Merino base layer that I had at the time other than on the mountain.

“The outdoor industry was all about making everything look like it was for climbing Everest.

“This led to the idea of creating a brand that designed technical products that could be worn as easily on the mountain as off.

STRIKE FLIES AND LICE

That’s where the idea of Mons came from.”

Acland identified a gap in the market for stylish and functional base layers for extreme sportswear.

“The job was to replace the cotton T and synthetics to something that could be worn for days and not need washing.

“I wrote what you might call a blueprint and how the brand would develop over the first years, focusing on the gap in the market and how to differentiate itself against what was an established category.”

Come the end of 2008 Acland developed samples and sold them to NZ retailers.

It was then he met his wife to be, who was just back from a threeyear stint in New York at an idealed innovation company.

From the anatomy of an idea, Mons Royale was born in 2009 and is now stocked in more than 1000 stores globally.

Why the name? “Mons” is Latin for mountains “and because we hold the mountains supreme, we treat them like royalty”, hence Mons Royale, representing the culture and the energy of the mountains, and made from premium-quality NZ Merino wool.

The brand was designed to be global from the start, but the couple’s first trip to ISPO, the

world’s largest trade fair, in that first year was a “big failure. We realised the original translation wasn’t quite right.

“We returned home, stalled production and Hannah redesigned all of the graphics and identity in a week.”

Hamish’s contacts from his skiing career were key to targeting some of the world’s best athletes.

“Another key part of sales was that the outdoor and snow industry was extremely male dominated.”

Mons targeted women. More than 50% of its sales were to women, half its staff were women, and they made clothing women wanted to wear.

“A lot of brands missed that.”

They also connected with their fans year-round in ski towns. Dirt was the new snow with the rise of mountain biking, which had become another target market.

In 2009 Mons Royale shipped its first orders overseas and by the next ISPO trade show “we were on a roll”.

A flagship Mons Royale retail store opened last month as part of the 15-year anniversary celebrations.

It’s in Wānaka, where the couple live with their young family, Ted, 10 and Frankie, 7.

Mons Royale has four other retail outlets in NZ, two in Queenstown and two in Christchurch.

Globally Mons Royale has a base in Innsbruck, Austria and

Squamish, near the Canadian ski resort town of Whistler.

“We are based with teams in mountain towns; mega cities are not us.”

Hannah continues to design all the clothing while Hamish runs the business.

The business is the largest NZ company buying fine wool through contract with the NZ Merino company.

“We are still buying from some of the same farmers we bought from on Day 1.”

Future plans for the business include scaling up the impact of wool through innovative constructions and natural fibre blends such as hemp.

Learning the retail game in NZ is something the couple have both enjoyed as they look forward to now taking that overseas.

While tiny in scale on the global stage, commitment to succeeding globally has paid off.

“We have probably flown under the radar here in NZ but we wanted to put our heads down, do the work and let the brand do the talking.

“To succeed globally a brand needed to stand for something and for Mons it has been its distinctiveness, energy and performance.

“There’re challenges out there, but it’s about navigating them. One of the challenges is the willingness to take risks,” Hamish said.

WORLD STAGE: Two Kiwi farm kids, Hamish and Hannah Acland, hit the world stage with their Mons Royale sportswear.

STORE: The flagship store was opened in Wānaka last month to celebrate 15 years of Mons Royale.

Computer says yes to colour for strong wool

Machine learning and a bit of nifty programming identify which strong wool attributes are key to getting the best returns. Gerhard Uys reports.

CAMPAIGN for Wool NZ’s chair Ryan Cosgrove has used machine learning, a branch of artificial intelligence, to identify what strong wool attributes are key to maximising returns.

Cosgrove, who is also the head of sourcing and materials for Mons Royale, and co-founder of Fusca, a wool sales data platform, recently published a paper outlining his methods and findings.

The paper, A Statistical Analysis of New Zealand Strong Wool Sold at Auction Between 2022 and 2024, showed that colour, micron and length are critical factors affecting wool prices.

Colour was, however, shown to be the most deterministic feature of price by far, accounting for 48% of price variability, regardless of other external economic factors.

For the paper, data from January 1st 2022 to June 30th 2024 was analysed.

The periods are significant and affect what attribute of strong wool is the most important, he says.

When Cosgrove moved the lens

to 2013-2015, micron was the biggest driver of value.

“I chose the most recent years because it’s what we’re exposed to now. If you say 48% of the variance in price comes from colour, that’s something a grower can use right now.”

I chose the most recent years because it’s what we’re exposed to now.

Cosgrove says as a wool trader he was always frustrated at the lack of sophistication used to analyse data.

“Every week we used pen and paper to value and put a price on wool.

“We’d invoice by hand. None of the data was analysed. I thought, if only I could find a method to do that, so I turned to machine learning to have a look.”

He used two machine learning methods, Random Forest Regression (RFR) and Gradient Boosting Analysis (GBA) to build accurate models predicting wool

prices, across short periods of consistent economic conditions.

He wrote the code for the models himself.

Machine learning can be used to constantly update growers on what aspects are more important to focus on at farm level, he says.

Efforts should be concentrated on achieving consistent colour and optimal micron through genetic selection, improved grazing management, and careful handling practices, he says.

Continued focus on reducing vegetable matter contamination will further enhance wool quality and value, the methods showed.

“The findings allow farmers to make more informed choices about farm management practices and to focus production and handling where it matters most.”

The GBA model was able to create a model where 91% of the variability of the wool price could be explained.

“Analysis aims to uncover how controllable variables, such as wool colour, length, vegetable matter, and micron, as well as uncontrollable variables

Crops grow successfully in sludgy Gabrielle silt

Gerhard Uys TECHNOLOGY Soil

CROPS were grown successfully across 34 sites that suffered serious silt incursion during Cyclone Gabrielle, a study shows.

Hawke’s Bay researcher Alan Kale, who worked with colleague Diana Mathers, said the study was aimed at growers to support their recovery and that of the land impacted by silt.

“We found that land covered by sludgy clay-based silt could grow good vegetable and arable crops in the next season, with minimal additional effort.

“However, the story was considerably different for land covered by sandy silt. Crops grown on this land did not thrive,” Kale said.

The study looked at the recovery of siltcovered land at 34 different sites in Hawke’s Bay and Wairoa.

The study was managed by the Foundation

for Arable Research with funding from the Ministry for Primary Industries, North Island Weather Event Fund and Vegetable Research and Innovation.

Kale said initial conclusions from the study showed cropping on silted sites in the Heretaunga Plains was very successful.

No extra pest and disease inputs were required.

Some fields had an extra side dress applied, otherwise fertiliser practice was as normal

Most sites grew and produced crops at or above normal pre-cyclone levels, and current season non-silt crops.

Generally, growers were comfortable to return to normal cropping cycles on these sites.

The exception was the sandy silt type sites, where at one site the sandy silt layer severely impacted maize plants growth and yield by preventing roots reaching the soil below.

Kale said some extra remedial cultivation was required to deal with silt.

“Once you can, stir the silt up to help with the drying process.

“The silt holds onto moisture. Be prepared to wait longer between cultivation passes.

“Post harvest, growers still report needing a longer gap between cultivation passes.

“Extra ripping was often reported as the flooding created a tighter profile.”

The study covered sites where arable, seed, market gardener, processing and cucurbit crops were grown.

“The whole idea of the study was to create a body of knowledge that could be used immediately, as well as in future similar flooding events. We believe we have achieved this outcome.”

PAPER: Campaign for Wool NZ chair Ryan Cosgrove has published a research paper on a machine learning method he developed that will enable growers and the industry to prioritise attributes of strong wool that lead to maximum returns.

like month and the NZD:USD exchange rate impact the market price of wool and to use these insights to optimise practices both on the farm and during wool preparation.”

While most brands looked at wool through the lens of increasing wool value or offering a new product and changing demand to try to improve the value for farmers, the machine learning methods are ignorant of economic factors and market demand.

But they use data to “tell growers, here are things you can do to make sure you’re at the top

end of the bell curve, that you’re always maximising the value regardless of the market. Instead of just hoping the market is good next year.

“The research provides a powerful new tool to analyse wool markets. By understanding and leveraging these predictive models, markets may be stabilised, quality improved and profitability boosted across the industry.”

In future Cosgrove aims to include other variables, such as environmental conditions and market trends, to improve the predictive capability of the models.

Dairy, velvet hoping for smoother progress

AFTER being disappointed by New Zealand’s trade agreement with South Korea nearly a decade ago, the dairy and deer velvet industries are hoping for better treatment second time around.

Prime Minister Christopher Luxon and his South Korean opposite number Yoon Suk Yeol recently announced the two countries would explore upgrading the 2015 agreement although did not set out a timeframe for doing so.

“I look forward to continued growth in our trade relationship and was pleased to announce that we will explore the possibility of an upgrade to our bilateral free trade agreement,” Luxon said.

Five years of often testy negotiations concluded with an agreement in November 2014, entering into force a year later after being ratified by Korean lawmakers in December 2015.

Kiwifruit had been the major winner with tariffs of 40% eliminated in six years, compared

to the nine years major rival Chile had achieved in its 2003 deal with the Koreans.

Beef exporters were also reasonably content, achieving the same 15-year phasing-out of tariffs as Korea’s deals with competitors in the European Union, Canada, Australia and the United States.

The same could not be said for the dairy industry.

It would be really helpful if we got ... free access as soon as possible.

Rhys Griffiths Deer Industry NZ

While hefty tariffs on butter, cheese and infant formula were to be phased out over a respectable 15 years, the Koreans were harder to budge on NZ’s key milk powder exports.

The Koreans conceded an initial tariff-free quota of a mere 1500 tonnes per year, equivalent then to three days’ production at Fonterra’s Edendale factory. This was to rise by a paltry 3% each year to a maximum of 1957t after

10 years. For all other milk powder exports the existing tariff of 176% was to remain.

But in 2015 hopes were high South Korea’s imminent application to join the TransPacific Partnership (TPP) would allow NZ to use its leverage as a foundation member of the 11-country trade agreement to gain more than the Koreans had been willing to give up in bilateral negotiations.

Fonterra’s director of global stakeholders affairs Simon Tucker said the withdrawal of the United States from the TPP by Donald Trump on his first day as United States president in 2017 dashed those hopes.

Tucker said the dairy industry welcomed the agreement being re-examined.

He said NZ exporters had been disadvantaged by not having the same market access as European and US rivals had achieved through their countries’ own trade deals.

“The Europeans are the biggest dairy exporters and the US and NZ are second and third.

“We all have market access deals into Korea so it is a pretty competitive market and obviously we would like to have the best

possible access and where it is not as good as what our US and European competitors [have] we would like at least equivalent so we could compete on a level playing field.”

Deer Industry NZ chief executive Rhys Griffiths said when negotiations concluded the deer velvet industry had been disappointed at the outcome for tariffs for its single largest market.

While tariffs had been reduced on dried velvet, the 20% tariff on unprocessed velvet was left untouched.

At the time unprocessed velvet made up 75% of NZ’s velvet exports to Korea.

However Griffiths said the

gradual reduction in tariffs on dried velvet coincided with a sharp increase in demand from Korean contemporary health food companies for the product.

Velvet exports to Korea had since increased from $20 million to $40m, with much of that growth in exports of the dried variety.

“It came just as we were beginning to engage with these healthy food companies that preferred the velvet dried in NZ just because of our regulatory system.

“Of course we said we were disappointed that we did not get unfettered market access but in reality having that outcome put us in a very good position to add more value here.”

Nigel Stirling MARKETS Deer

UPGRADE: Prime Minister Christopher Luxon and his South Korean opposite number Yoon Suk Yeol recently announced the two countries would explore upgrading the 2015 bilateral trade agreement.

Sector Focus

A century-old farm and a lifelong nurse

THE dairy shed is a peaceful escape from the bustle of an urgent care clinic for Megan Moore, who regularly changes between overalls and scrubs.

She has a hybrid career of caring for cows and caring for people as a nurse for 24 years and a fourth generation farmer.

“Sometimes I feel like I care more about the cows than human patients,” Moore laughed.

“But I guess I am more emotionally invested in the animals, and the worst they will do is poop on me.”

The farm is on the outskirts of Pironga, between Te Awamutu and Hamilton, and has been in the Lorimer family for a century. This season Moore and husband Gary have gone into partnership with her brother, Scott Lorimer, making it a real family affair.

“Scott used to work at Yashilli at the dairy factory in Pōkeno, but they had some changes last

year and he decided to come give farming a crack,” Moore said.

“We are schooling him up to grow into a herd manager role so between him and our other manager, Blake Craw, the dayto-day will be covered and I can step back into more of an overseer role.”

They run two herds as the farm splits nicely from the dairy shed.

One herd has the heifers and older cows and the mixed age cows are on the other side with slightly longer walking distances and a few more hills. But the farm is generally flat to rolling. Typically, the year is split into

There is a shortage of nurses so anything is better than nothing when it comes to sharing my time ... sometimes I’ll even milk in the morning then head into the clinic for a shift.

Megan Moore Pironga

six-month blocks for Moore. She is dedicated to the farm during the busy period and spends less time nursing; when it quietens down on the farm, she picks up more shifts nursing.

Nurses are in high demand, which allows Moore that flexibility to be involved across both. She has been involved with setting up a new GP clinic in Horotiu, near Hamilton, for a good chunk of the past year, and is also working casually at Angelsea Clinic in Hamilton.

“There is a shortage of nurses so anything is better than nothing when it comes to sharing my time across both.

“Sometimes I’ll even milk in the morning then head into the clinic for a shift.”

Growing up, she loved being on the farm and would come back every summer during her nursing studies in Auckland. Not long after she graduated she went to England where she did a bit of nursing and dabbled in farming.

She also met her Englishman husband Gary who was a builder. After seven years in England she managed to convince him to come back to New Zealand with her in 2009 and get involved in the family farm.

There was a sharemilker on the farm until 2011 and other contract milkers until June 2021, when Megan and Gary took up contract milking the farm themselves.

“Mum and Dad had their herd 30 years before they sold it to the sharemilker, so we had to start again by buying a herd when the sharemilker’s contract finished.”

They are milking 430 cows that are a mix of Jersey and Jersey cross and Moore puts a big emphasis on breeding for quality. She is heading towards more Jersey content but aims for slightly bigger stature and capacity.

“I spend a lot of time picking bulls for AI.

“We even have a couple of contract matings now, we are

starting to get the rewards we are aiming for.”

She concentrates on health, getting rid of anything with any issues. They maintain a low bulk tank somatic cell count, between 77 and 115,000, and have a low rate of mastitis.

The farm had issues with lameness in the past, but she has been focused on reducing problems and her parents invested in significant race maintenance last year to help.

They are also becoming A2A2 and DNA test the calves every year to understand their status.

They operate a System 2 to 3, depending on the season. They have a feed pad but it is only used for certain times of the season.

Moore’s parents bought a support block part way up Mount Pirongia in Te Pahu about four years ago that her dad manages.

“We run quite a closed herd

after the Mycoplasma bovis scare and we had concerns around youngstock management.”

Silage comes back from the support block and they grow maize on the home farm.

Between the farm and nursing, Moore is relatively busy, but she still has time for their children, 11-year-old Nathan and five-yearold Chelsea, who also enjoy the farming lifestyle.

Moore plays a bit of tennis in her spare time, and she, Gary and Nathan are into table tennis. She is involved with the local sports complex in Pirongia, making sure her schedule is never quiet. Into the future, they will continue to evolve their business dynamic, giving Lorimer a good chance to submerge himself into farming. And Moore looks forward to continuing to improve the herd’s, and her patients’, health and wellbeing.

Samantha Tennent ON FARM Health

HISTORY: The family farm is on the outskirts of Pironga, between Te Awamutu and Hamilton, and has been in the Lorimer family for a century.

SEASONS: Megan Moore’s year is a game of two halves: she is dedicated to the farm during the busy period and when it quietens down on the farm, she picks up more shifts nursing.

Catchment groups are excelling on the ground

Gerhard Uys NEWS Environment

PROJECT lead at Thriving Southland Richard Kyte says catchment groups have incredible value because that’s where science is applied and put into the hands of the people who can implement change.

That, in a nutshell, is what the team at Thriving Southland does – it builds relationships with farmers, their communities, researchers and scientists and acts in the extension and facilitation space.

“You can’t market change through a webinar. Farmers and communities want to talk to each other about challenges, brainstorm and build ideas. That’s hard to do if you’re not in the field and not talking to people,” Kyte said.

Kyte is not a born and bred Southlander. Thirty-six years ago he immigrated from the United Kingdom, where he studied business and finance, and farmed dairy.

He first came to New Zealand on an agricultural exchange programme.

When he went back to the UK after the programme he landed a job as a herd manager.

He said as a young up-andcomer in the industry he looked at his colleagues, and with the average age of a herd manager of 56, he decided he would head right back to New Zealand.

He landed a dairy farm job in the Bay of Plenty.

“I thought I’d come to paradise. I came from the Lake District, it was wet all the time.”

But fate had other plans and he married a woman from Southland and moved there in 1997.

Southland is one of the best farming areas in the world from a grass base pastoral perspective, he said.

Kyte and wife Eleanor worked their way up the sharemilking ladder and owned 600 cows.

In 2008 they sold the herd and pursued another passion, people.

When conversions from sheep and beef into dairy took off, Kyte changed tack and advised sheep farmers on conversion.

Thriving Southland was

Catchment groups look for solutions and when they have the relevant science and support they often move at incredible speed.

Richard Kyte Thriving Southland

founded in 2018 as a response to regulation.

“A cross-sector of farmers came together and said ‘We’re in a negative space, but there’s a better way of looking at the challenges.’ Science has been used to find problems, but they wanted to use it to find solutions.”

Kyte said the narrative in agriculture is that New Zealand is the best in the world, but that means some see it as a position they hold and can become complacent.

“We need to adopt a ‘leaders in the world’ perspective, which means staying ahead. Catchment groups are in that space, and constantly want to move ahead.

“Catchment groups look for solutions and when they have the relevant science and support they often move at incredible speed.

“You think something is a good idea and the next thing you see they’ve begun implementing it.

“Regulators can look at catchment groups and see it as a place to put regulation in place.

Farmers don’t want to be the tool of the regulator. Give farmers the science and they deliver change.

Regulation becomes a backstop.”

Thriving Southland is funded by the Ministry for Primary Industries’ sustainable land use fund, as well as other organisations that support on-theground projects.

Thriving Southland takes pressure off farmers who have to run their businesses, Kyte said.

“They’ll run the project and we’ll support the financials and reporting.”

Farmers know the value of money and anything not spent goes right back into the next project, he said.

“They simply wouldn’t accept a project that looks like it’s wasteful.”

An independent project panel advises the group on project funding.

Being driven by farmers means a ground-up approach.

Thriving Southland can find topics and information they may be interested in, but ultimately the group decides.

Working closely with farmers and

communities means they also have flexibility that other similar groups often don’t have.

“Often a project sets out with a solution in mind. There can be tunnel vision of the deliverable. But if we are halfway through a project and a better solution than the one we started with presents itself, we will shift gears and adapt,” he said.

“Farmers and communities are about outcomes. As long as we’re delivering what the catchment group wants and make a difference, we’ll be there. If we’re not making a difference, nobody’s interested.”

Kyte said because strength lies in relationships, the coordinators at Thriving Southland are all from the community and were hired “on passion”.

“It’s about the ability to work with people. An understanding of the ebbs and flows of communities and catchment groups. That’s the beauty of the team. They’re really good at getting alongside that energy and stoking the fire with information.”

The group has four catchment group coordinators who, along with support staff, manage 37 catchment groups, and have run over 120 projects.

DELIVERY: Project lead at Thriving Southland Richard Kyte and his team have delivered over 120 projects and manage 37 catchment groups.

Photos: Gerhard Uys

MODELS: At a recent Thriving Southland farm visit, Clint Rissmann from Land and Water Science, centre, spoke about a project that used LiDAR, drone-based photogrammetry and ground-based radiometric surveys to create high-resolution landscape models of farms.

ogies — ricultural Gene technol the latest ag revolution

The histor y of agriculture is a stor y of innovation and revolution.

Since our Neolithic ancestor s shif ted from hunting and gathering to shepherding and cropping 12,0 0 0 year s ago farmer s all over the world have harnessed new ideas to transform food produc tion

We can see fascinating examples from the Islamic Empire in medieval times, Britain in the 17th-19th centuries, the Pacific and into Aotearoa during Polynesian set tlement and the Green Revolution of the 20th Centur y Each revolution has had flow- on effec ts to population grow th and societ y

Right now, we are in anot her agricultural revolution with t wo themes The fir st is social – a drive for food securit y, with a broad concept of sustainable food produc tion The second is technological where science is generating new oppor tunities

from gene technology, automation and AI and the microbiome

In New Zealand these t wo themes are coming together in innovations that aim to deliver food produc tion with a lower

environmental footprint and higher produc tivit y

Modern gene technology is a central par t of this revolution By 2040, Australia’s national science agenc y C SIRO projec ts a $19 2 billion benefit and 31, 20 0 new jobs from gene technology in the food and agriculture sec tor s Right now, AgResearch have new plants in glasshouses that should decrease methane emissions, reduce N loss to water ways and improve animal health These plants are gene edited or genetically modified and have been developed over 20 year s of research The y have been tested over seas and now need to see the light of day in New Zealand to test their true merits This is no longer a theoretical discussion; we now face a real choice

My view is it is time for change D air y farmer s are looking for solutions to the challenges that the public and our customer s

have laid down We want to explore all promising avenues that could help us deliver bet ter farming

By Dr Bruce Thorrold, Dair yNZ Chief Science Advisor

to update the rules But there are three impor tant considerations as we see it

We believe a regulated approach is needed that consider s the wide range of views, oppor tunities and risk s D ecision making needs to recognise mātauranga Māori to provide enduring set tings We’re commit ted to working to inform the polic y within the dair y farming contex t

We must consider carefully the views of our customer s around new gene technology

Choice is paramount

And if we proceed there must be a way for all farmer s to choose We have been talking with dair y farmer s over the past few months, and respec ting individual s ’ choice is a clear theme that emerged How do we have a GM plant such as pine tree or a grass in the landscape in a way that

o allows for other grower s al s

producer s of agricultural duc ts to maintain the status ?

Ho thri cha

The science of gene technologies has moved on, and we suppor t the Government ’ s recent moves and pro quo

w do t wo farm systems ve as neighbour s if these nges are made? We have the oppor tunit y here to learn from the world In Australia and the US, organic farmer s and GM cropper s work in the same communities

Gene technology has applications beyond agriculture including medicine and pest control – helping our native birds enjoy a predator free lifest yle, reducing the risk of wilding pines in tussock grasslands and helping solve the wasp problem in Abel Tasman National Park

This revolution doesn’t belong to agriculture, but it ’ s an agricultural revolution nonetheless

We n eed to begin now to deliver the tool s to meet the challenges that will determine our future

Stay tuned for the latest episode talking about the state of play of genetic technologies in New Zealand and Dair yNZ with Dr Bruce Thorrold on Wednesday 18 September The go -to podcast for New Zealand dair y farmers Tune

Hear from farmers, scientists, and exper ts ever y for tnight as they share practical tips and insights to help you succeed It ’ s all about giving you the tools and knowledge to make the best decisions for your farm Brought to you by Dair yNZ, we help farmers lead the world in sustainable dair ying by investing in research, new solutions and advocac y

dair ynz .co.nz/talkingdair y

Dairy Data team delve for deeper insights

Hugh Stringleman MARKETS Research

DAIRY farmers looking for insights to Global Dairy Trade prices and their effect on milk price forecasts are being offered a new report by those in the know and with figures at their fingertips.

It is the SGX-NZX Dairy Derivatives Pre-GDT Digest, published bi-monthly about 24 hours before each crucial GDT event.

The report provides a comprehensive analysis of key market elements with the aim of helping readers make informed decisions in the trade of milk and dairy derivatives, futures and options.

The Pre-GDT Digest covers futures prices, cross-commodity exchanges from SGX-NZX, EEX, and CME, along with a detailed view of NZX’s stream return forecast and volatility indicators.

“This bi-monthly report can help readers with insights to assist in understanding the dairy futures market,” NZX Dairy Data and Insights team leader Cristina Alvarado said.

“We estimate that almost 25% of NZ’s milk production (at a farmer and processor level) is

now utilising some form of price risk management tool but we are a long way behind the use by farmers of these tools in the United States and Europe.”

Alvarado’s team at NZX monitors all aspects of global dairy markets and their NZ implications, writing nine regular reports and custom reports on request.

Former Fonterra senior adviser Alvarado is the commercial manager for services and subscriptions, assisted by dairy analysts Rosalind Crickett and Lewis Hoggard.

Venezuelan-born Alvarado has a BA and LLB plus a Master’s in international business (Hons) from the University of Auckland.

From a rural background, Crickett graduated from the University of Waikato with a BMS in agribusiness and strategic management, and Hoggard graduated from Auckland with a BCom in finance and economics. Their work timetables are calendar driven and dominated by the fortnightly GDT Trading Events and alternating Pulse auctions, including pre- and post-market reports, along with the cycle of daily, weekly, fortnightly and monthly reports (see below).

NZX has one-third ownership of the GDT platform with Fonterra

and the European Energy Exchange (EEX).

About 30%, or more than 6000, NZX report users/subscribers are outside of NZ in more than 25 countries as market participants and observers seek information about our dominant dairy industry.

Farmers, processors, traders, brokers, buyers and financial services subscribe to bundles of up to six regular reports, along with access to market data and historical information going back 25 years.

Dairy farmers may find most useful these six relevant reports: the Daily Dairy Update, Dairy Insight, Grain and Feed Insight, NZ Pasture Growth Index (PGI), Milk Production Predictor and the latest, PreGDT Digest. The Milk Production Predictor goes back to farm level with the Farmgate Milk Price Calculator, updated two days after every GDT event, with a forecast view into the current season and the next.

to generate a personalised price forecast.

The PGI weekly reports regionally and nationally and the data is updated daily, with access to a forecasting tool on pasture growth expectations.

Farmers use Dairy Insight to understand the drivers of their milk price and forecasts for the coming seasons, and benchmark feed input costs.

This bi-monthly report can help readers with insights to assist in understanding the dairy futures market.

Cristina Alvarado

NZX Dairy Data and Insights

The Grain & Feed Insight is a practical tool to assist in making profitable decisions as a buyer or seller of feed grains.

It has international and national prices and commentary on market trends.

CONNECTED:

It is also an organiser of the annual SGX-NZX Global Dairy Seminar, to be held this year, October 7 to 9 in Singapore.

It is the cornerstone event for the dairy industry to convene, share perspectives and stay informed on the latest market developments with international stakeholders across Asia, Oceania, Europe and the Americas.

The Dairy Trade Statistics reports provide insights into exports and import statistics of dairy commodity figures from Australia, the United States, European Union, Argentina and China.

The NZX Dairy team has taken over the release of New Zealand’s national milk production, previously published by the Dairy Companies Association of NZ, which is available to the public on its website and by email distribution list upon request.

Farmers can input their own figures

Growers who are members of the Foundation for Arable Research (FAR) receive a subscription discount.

NZX has a group of farmers who are partners, receiving free or discounted subscriptions in return for regular conversations with NZX analysts to better understand regional differences in factors leading to production.

NZX Data and Insights also undertakes special surveys and reports on request, seeking to bring better understanding of topics such as a region’s milk production or dairy market country.

NZX Dairy Team Products

Alvarado said all new accounts have free trial periods and that customers can select to bundle different reports to suit their needs and budgets.

Free trial: NZX, New Zealand’s Exchange

NZX holds seminars for farmers and other industry participants on the education of dairy derivatives as risk management tools, guiding but not providing financial advice.

Global Dairy Seminar: SGXNZX Global Dairy Seminar 2024Singapore Exchange (SGX)

Dairy Update: Incorporates the latest relevant news from local and global dairy markets. It includes daily, weekly, GDT forecast and GDT results reports.

Pre-GDT Dairy Derivatives Digest: Bi-monthly report covers futures prices, cross-commodity exchanges, a view of NZX’s stream return forecast and volatility indicators to help readers make informed decisions in the trade of milk and dairy derivatives futures/options.

Monthly Dairy Report: In-depth analysis on key factors influencing the dairy industry, both internationally and within NZ.

Global Dairy Snapshot: Weekly NZX survey prices for WMP, SMP, cheddar, butter, casein, and AMF. It also contains prices from across the globe.

Dairy Trade Statistics: Monthly export data for the main dairy commodities for NZ, Australia, US, EU and Argentina. This subscription includes access to use of raw data.

• NZ Pasture Growth Index (PGI): Weekly report on this topic and access to the PGI tool.

• Milk Production Predictor: This subscription includes access to the NZX Milk Price calculator. Dairy Insight: Weekly insights report that interprets what is happening in the global dairy commodity markets and what this will mean for farmgate milk prices here.

Grain & Feed Insight: Bi-monthly report on independent commentary and analysis of prices and industry trends.

NZX Dairy Data and Insights team members, from left, Lewis Hoggard, Cristina Alvarado and Rosalind Crickett.

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NEW Zealand’s dairy industry started the 2024-25 season on a positive note, with July marking a production recovery after a slower June, though output remains on the lower side of the seasonal milk curve.

Milk production for the month reached 27.4 million kilograms of milksolids, up 9.2% year on year (YoY) – the highest July on record, surpassing the five-year rolling average by 6.2%. In tonnage terms, production totalled 310,000 tonnes, an 8.4% YoY increase, reflecting a strong earlyseason performance despite the initial June dip.

Peak production, typically occurring between September and November, is still ahead.

According to our revised NZX milk production predictor, YoY increases of 3.7%, 1.8%, and 0.8% are expected for August, September, and October, respectively. However, weather patterns could affect pasture growth, leading to potential volatility in production levels.

Globally, dairy markets displayed mixed trends. United States milk production in July fell by -0.4% YoY, while Argentina and Uruguay saw sharper declines of -4.8% and -9.2%, respectively.

Conversely, Australia reported a 1.6% YoY increase in July production, while Europe saw 1.3% growth in June.

Upcoming US and European production reports may reveal further constraints. In the US, ongoing avian flu cases, now confirmed to be spread to California dairy cattle, and a shortage of heifers are expected to weigh on production in the coming months.

Similarly, European milk production, while recently positive, faces growing challenges, including adverse weather and disease outbreaks such as bluetongue and lungworm, which may affect output.

On the trade front, New Zealand dairy exports showed robust growth in July. Export volumes increased by 10.2% YoY, with values rising by 10.7%.

Total export volumes reached 282,715 tonnes, driven by strong gains in skim milk powder (SMP), cheese, infant formula, and casein.

SMP rebounded sharply, up 57% YoY, thanks to strong demand from China and other Asian markets. However, anhydrous milk fat (AMF) and butter exports saw declines in volume.

August’s Global Dairy Trade (GDT) auctions reflected this varied landscape. GDT Event 361 on August 6 saw a modest 0.5% rise in the index, driven by gains in whole milk powder (WMP) and AMF, while SMP prices continued to decline.

The market bounced back strongly later during the next August auctions, with index growth in pulse and the GDT average index surging 5.5% at Event 362 on August 20 –marking the largest increase since March 2021.

September’s first auction, Event 363, saw a slight -0.4% dip, with WMP prices easing by -2.5%, while SMP showed strength, rising 4.5% reaching US$2,753 per tonne, its fourth-highest average price in the past 12 months.

As the industry navigates these developments, stakeholders are encouraged to stay informed through events like the upcoming SGX-NZX Global Dairy Seminar, scheduled for October 7-9, 2024.

This annual event offers a key platform for sharing insights and strategies in response to the evolving global dairy landscape.

Cristina Alvarado Alvarado is commercial manager, data and insight at NZX

ROBUST: On the trade front, New Zealand dairy exports showed robust growth in July, when export volumes increased 10.2% year on year.

Dryer upgrade to tap colostrum supply

Gerald Piddock NEWS Food and fibre

FOODWAIKATO’s spray dryer is about to undergo a $7 million upgrade as it eyes expanding its colostrum collection and processing capabilities.

The company, located at the Waikato Innovation Park in Ruakura, is in the middle of colostrum collection as dairy farms across the country calve their cows.

The plant upgrade will allow the colostrum to be “taken to bits”, Food Waikato chief executive Trevor Lock said.

The best “highly bioactive” parts of the colostrum will be processed into food supplements for gut health by plant owner, South Auckland-based New Image Group, and the rest used to create other products starting in 2025.

“We’re moving from dietary supplements – formulated products which we are making right now – to true nutraceuticals, where we are making soft claims.”

A research programme is in place to support those claims and $4.5m is being spent on research and development over the next few years.

Lock said they are looking for more farmers with the aim of having 100 farmers supplying the dryer with colostrum by next year. They are also investigating the viability of collecting from farms that autumn or split calving.

Colostrum is the first secretion from a cow’s udder after giving birth and farmers are not permitted to put it into the milk supply until eight milkings have been completed – which is usually around four days.

Apart from Westland Milk and New Image, no other major dairy

company collects colostrum. It is costly and its small volume makes it difficult to process in the large dryers most modern dairy companies use, Lock said.

“It’s very difficult to make. It’s difficult to collect and it’s difficult to manufacture.”

In their first run using the dryer, they processed the colostrum and tested its viscosity before drying it and it came out at 700 centipoise.

“It was like a thick paste. It’s very sticky, it’s very difficult.”

By comparison, regular cow’s milk has a viscosity reading of 20 centipoise, he said.

The flipside is there is enormous market demand for colostrumbased nutraceuticals. This is because the main global exporter, the United States, stopped exporting the product.

“Outside the US, New Image would be the largest colostrum user in the world,” he said.

The company exports its product to 26 countries, turning colostrum into a powdered drink for both adults and children to promote gut health.

The demand along with the factory upgrade has enabled Lock to hire four more staff.

The expansion means the company is now operating 24 hours a day, seven days a week.

The factory currently has a single dryer that can produce 500kg an hour and operates on four shifts with two people working on each shift.

When it processes nutritional formulas, it processes around 400kg an hour.

It also has a “wet side” operation that makes up all the ingredients for the nutritional formulas. That crew has two people and is about to double. Next year, he hopes to add two more as the operation moves to 24/7 too.

The company has a chequered

history, having been put into liquidation last year before being purchased by South Aucklandbased company New Image Group (NIG) in December. Lock has 25 years of experience in the colostrum market, having worked on developing the process to develop colostrum.

If a farmer has 600 cows and they earn $2.25 a litre, it’s worth around $43.20 per cow for six weeks’ work.

Trevor Lock FoodWaikato

Lock also has a fraud conviction and spent time in prison, which he is open about, saying he “did his time”.

Last year the company collected from four farms in South Waikato and this has expanded to more farms for this calving. Lock contracted the spray dryer at the Innovation Park on behalf of New Image to manufacture the colostrum, making 2 tonnes for the market.

Lock then put a business case to New Image to buy the plant and employ Lock to run it.

The colostrum collection does not interfere with the farmer’s relationship with the milk supplier, nor does it prevent the calf from getting all the colostrum it needs.

The payment for the colostrum is based on the product’s immunoglobulin G (IgG) levels measured from three milkings done while the cow is producing colostrum.

The higher the IgG, the higher the payment. At the top end, the company pays $3.35/ litre for a 25-28 IgG level per litre and this is usually measured during the cow’s

first and second milking. At the bottom end, it pays $1.35/L when the IgG is at 10-12/L.

The average payment would be $2.25/L from around 18L of colostrum from the first 36 hours since calving.

“If a farmer has 600 cows and they earn $2.25 a litre, it’s worth around $43.20 per cow for six weeks’ work.”

It adds up to around $25,920.

“We have one farmer in Southland who will earn in excess of $100,000,” he said.

“It’s good for the New Zealand farmer.”

On farms outside the tanker pickup area, the colostrum is bagged and frozen while it waits for collection for transport back to the dryer.

During the times of the year when cows are not producing

colostrum, the major dairy companies use the dryer to test and trial new products and make specialised nutritional products. Once the upgrade is completed, Lock also plans to process milk for specialised ingredient products for NIG.

The dryer is also collecting and processing goat’s milk products via NIG, providing income for those cash-strapped farmers and supply security for them.

It also provided a lifeline earlier in the year for sheep-milking company Maui Milk, agreeing to process and sell the milk for 11 of its suppliers.

“Where this plant was going into liquidation into December, we have turned it around completely into a significant profit-making entity, hired more staff – the lights are staying on.”

GROWTH: Food Waikato chief executive Trevor Lock says they are looking for more farmers with the aim of having 100 farmers supplying the dryer with colostrum by next year.

Routine change makes all the difference

Staff reporter ON FARM Animal health

BEN and Samantha Tippins milk 950 cows once a day on 300 hectares just north of Tokoroa.

With three young kids in tow, they’re in their sixth season on the farm and their third season variable order sharemilking. In their first season, the switch from twice-a-day milking to once-a-day led to a spike in mastitis cases and higher somatic cell counts.

“We thought we could keep doing what we’ve always done, but some of the cows didn’t handle it well,” Samantha said.

“You’re only seeing the cows once a day, so you have to be more onto it.”

Long milking times, increased labour costs and ongoing treatment expenses prompted Ben and Samantha to seek outside help.

Early in the 22/23 season, they reached out to their local FIL area manager, Tania Earnshaw, who observed their milking routine and suggested several changes for the rest of calving.

“Tania has been a massive help. The first time she came into the shed, she rolled up her sleeves and was milking cows.

“FIL is more than just a chemical company; they offer technical support and staff training. We didn’t realise until we went with FIL that the support you get as part of the package is priceless,” says Ben.

The first step was teat spraying the springers before calving.

Earnshaw recommended wearing milking gloves to prevent bacteria spread, pre-spraying with an iodine-based teat spray, and trimming tails while waiting for the iodine to work. This was followed by fore-stripping, teat wiping, milking, and post-spraying. They also did a rapid mastitis test (RMT) to check cows before they entered the supply vat.

“Tania showed us the importance of spending time with our cows during the first milking and the procedures involved around cleanliness,” says Ben.

With two permanent full-time staff and two casuals over calving, they organised staff training with Earnshaw to make sure everyone understood the new procedures and their benefits.

“The staff really responded to hearing things from an outside perspective.”

With a plan in place and training complete, the Tippins started the new milking procedures.

“We saw results pretty quickly,” Ben said. But during peak calving,

with around 60 new mums coming in each day, they skipped some steps to save time and noticed somatic cell count (SCC) levels started to rise again. Determined to turn things around, they committed to the full 10-step process from the start of the 23/24 season. Another team refresher with Earnshaw before calving helped set the stage.

This time, they stuck to the plan throughout the season.

The results were impressive. They had 100 fewer mastitis cases, their average SCC dropped by 100,000 and they have cut treatment costs.

“There’s been less red drugs purchased and needed on farm. There wasn’t as many repeat cases of mastitis as well,” said Samantha.

You’re only seeing the cows once a day, so you have to be more onto it.

Samantha Tippins

South Waikato

They have also saved time in the cowshed, reducing milking times by an hour and a half.

Ben said they’ve still got a long ride ahead but if they keep implementing the procedures, they’re on the right track.

“We’ve saved a lot of time and labour by preventing mastitis and spending a little extra time with the mums after they calve. The team’s motivated by the results. It’s more positive to be preventing mastitis rather than treating it.”

Success with udder health has also boosted morale for Ben, Samantha, and their staff.

“Spending less time in the shed means more time at home with family, and we want that for our staff too,” Samantha said.

Going into the 24/25 season, Ben and Samantha continue to follow the calving milking procedures, aiming for an average SCC of under 150,000 and less than 8% mastitis cases. With their first pickup of the season at 62,000, they are well on track to achieve their goal.

FARMING: Ben and Samantha Tippins sharemilk 950 cows once a day in Tokoroa. Success with udder health has boosted morale for the whole team.

GAUGE: Body condition scoring is a practical method for assessing whether cows are at an ideal weight and health status.

How to prep cows for successful mating

Sector perspective

FARMERS are in a critical window now to ensure optimal fertility and high in-calf rates in their dairy herds. Once lactation begins, we are aiming to get our cows to peak milk as quickly as possible and it is important this is well supported with good nutrition so that cycling and fertility do not suffer. Finding the balance between peak milk and fertility can be done, and it involves more than just feeding and breeding management.

Many farmers ease off mineral supplementation as mating approaches and become very complacent mid-season once cows have been mated and are well into lactation. Mineral deficiencies can directly impact the health of the cow, particularly fertility and reproduction, at any time of the season.

Conception is just the beginning – maintaining the pregnancy needs to be the goal. Mineral composition and liver health play key roles throughout the season, making sure your cows are ready for mating and that a healthy pregnancy is maintained through to the next calving.

Minerals such as selenium, copper, cobalt, iodine,

manganese and magnesium all play an important role in a cow’s reproductive health and correct forms and ratios are critical in supporting fertility.

Selenium, for example, is critical for good immune function and overall health, which impacts fertility.

Copper influences enzyme systems related to fertility and energy metabolism.

Selenium and iodine support thyroid function, and cobalt supports good digestive health.

These all come together to support metabolism and reproductive cycles. Cows need to receive a balanced mineral supplement alongside quality nutrition.

Regular blood tests will help monitor mineral levels and signal any necessary supplement adjustments.

A cow’s powerhouse is her liver – without healthy liver function, she’ll struggle at every step, with potentially fatal results. Central to many bodily functions, the liver supports detoxification, metabolism, and nutrient storage.

Proper liver function drives the cow’s ability to metabolise energy efficiently. During early lactation, the liver works overtime to manage energy demands. High-energy diets, including high-quality pasture and feeds, are essential.

Incorporating specific types of bypass fat in the diet can boost energy density without overloading the liver. Practical steps farmers can take to support a healthy liver include ensuring that the cow is eating well and maintaining healthy body condition, while monitoring liver health through regular vet checks and blood tests to catch any potential issues early on.

Body condition scoring (BCS) is a practical method for assessing whether cows are at an ideal weight and health status. A BCS of 5.0-5.5 is generally

recommended for cows at the start of mating.

Cows in this range have enough body fat reserves to support the demands of lactation and pregnancy.

Energy density in their diet is crucial – ensure cows have access to high-quality pasture and supplementary feeds.

Peak milk production places significant energy demands on cows, making it all the more important to provide balanced nutrition to maintain their body condition.

Planned feeding that will put condition on cows during periods when the cow is still lactating, yet past the peak of lactation, works well. This ensures the fat is stored below the skin (adipose fat) and not around the organs (visceral fat).

Adipose fat acts as a natural energy reserve and can be readily mobilised, whereas visceral fat, when mobilised, tends to clog the system and is particularly detrimental to liver function (fatty liver disease). Proper BCS management is critical and leads to better reproductive performance and overall herd health.

Correct mineral levels, healthy liver, and good body condition work together to put cows in a strong position for successful mating. Adequate mineral levels ensure all physiological processes related to reproduction are functioning correctly. Healthy liver function supports efficient energy metabolism, which is essential for maintaining body condition and supporting reproductive cycles.

By focusing on highquality pasture and feed and including bypass fats, you can provide the necessary energy to support peak milk production and pregnancy. When these elements are managed effectively, cows are more likely to have good fertility, be actively cycling, and be ready for mating.

Chris Balemi Balemi is founder and managing director of Agvance Nutrition

FEDERATED FARMERS

Vol 2 No 36, September 16, 2024

Speaking up for farmers since 1899

Uniting farmers from across dairy, meat and wool, and arable to present one strong and united voice is no easy feat at the best of times.

To have done it consistently for 125 years is something Federated Farmers are incredibly proud of, the organisation’s president Wayne Langford says.

“Since the day we were founded, we’ve been standing up for farmers and rural communities, giving them a strong voice, and advocating for what’s fair.

“We’ve been there through it all: the booms and busts of farming, significant land use change, market downturns, and the removal of subsidies,” Langford says.

The Federation’s roots go back to 18 September 1899, when the first properly constituted Farmers’ Union branch was formed in Kaitaia by Northland dairy farmer Thomas Portland Smith.

Langford says, since that day, the organisation has played a significant role in New Zealand’s history that even detractors or critics find difficult to dismiss.

“Federated Farmers has one of the most recognisable, trusted and respected brands in the country –and that’s taken time to build over the years.

“I look back at some of the respected names that have gone through Federated Farmers’ leadership since the organisation began in 1899.

“Those are the names the organisation’s reputation has been

built upon, and that’s a legacy I’m very, very proud to be a part of.”

While Federated Farmers’ core mandate has always been championing farmers’ interests, that brief has grown over time to include the rest of rural New Zealand too, Langford says.

“Whenever there’s an issue that’s important to rural communities –whether that be roading, education, or health – Federated Farmers has been there as an advocate.

“That’s still the case today, where we engage on everything from banking issues and council rates through to digital connectivity and pest control.”

Langford says the organisation has to navigate differences between various sectors and provinces, but that’s where the organisation’s strength comes from.

“We’re an incredibly democratic and diverse grassroots organisation, and there’s always plenty of robust debate on the big issues affecting farming.

“That’s what really sets us apart from other organisations. We can’t just take a position that works for dairy, meat and wool, or arable farmers.

“We have to really confront those tough discussions as a collective group and find a pan-sector position

that will work for all farmers – not just one sector.”

None of the work Federated Farmers do would be possible without the support of loyal members who choose to pay a sub each year, Langford says.

“It might feel good to have a rant on Facebook, and sure you might get a few likes, but does that really make a difference when it comes to Government regulation?

“I don’t think it does. What makes a real difference for farming families is having a strong team of policy experts behind you who are really across the detail.

“Having those people working on the big issues, engaging with politicians, and providing evidence

Federated Farmers has one of the most recognisable, trusted and respected brands in the country – and that’s taken time to build over the years.

Wayne Langford

Federated Farmers national president

to change decision-makers’ minds is what secures the wins.”

If you support Federated Farmers’ work for New Zealand’s rural communities, call 0800 327 646 and become a member today.

A few Federated Farmers milestones:

1922 – Meat Export Control Act initiated by NZ Farmers’ Union president Sir William Polson to ensure a fair share of export meat profits for farmers.

• 1925 – Women’s Division of the NZ Farmers Union was founded by Florence Polson, Sir William’s wife. It grew to become today’s Rural Women NZ.

1969 – first Fieldays held at Te Rapa racecourse. The idea of John Kneebone, later a Federated Farmers president, it was a success and grew to become a multi-billion-dollar event.

• 1977 – Farming leaders worked with the Government to establish the QEII National Trust. Now more than 5000 covenants protect 200,000ha of special natural areas, most of it on farms.

The Outdoors Access Commission was sparked by Federated Farmers’ 2005 – orange ribbon campaign, pushing back on a government proposal for mandated access across farmland to rivers and lakes.

• 2019 – Federated Farmers helped stop the Government bringing in a capital gains tax, saving an estimated $3-6K per farm.

2024 – Federated Farmers led the charge to see He Waka Eke Noa and unscientific methane target dumped.

2024 – Federated Farmers secures inquiry into rural banking competition and interest rates.

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LEGACY: Federated Farmers’ advocacy for rural communities over the past 125 years is something to be incredibly proud of, Wayne Langford says.

A brief history of Federated Farmers

As we mark 125 years since the establishment of New Zealand’s most influential rural advocacy organisation, it’s timely to reflect on the journey that has shaped Federated Farmers into the organisation it is today.

The founding era: the birth of the New Zealand Farmers’ Union

The story begins in Kaitaia on 18 September 1899 with the formation of the New Zealand Farmers’ Union (NZFU) by Thomas Portland Smith, an early pioneer of the dairy industry who had settled on raw land in the Far North.

By the late 19th century, our budding agricultural sector was facing increasing headwinds, with market fluctuations, land management issues, and the emerging challenge of navigating complex government policies.

Smith, a forward-thinking farmer and rural advocate, quickly recognised the need for a single unified voice to strengthen farmers’ position to create leverage when engaging with the government.

The NZFU provided a platform for farmers to come together, discuss common issues, and negotiate collectively for better pricing and fair land management rules.

Founding members understood

that a strong, organised group could better negotiate with suppliers, government officials, and other stakeholders.

The union quickly gained traction, particularly in the North Island, offering services and becoming a powerful advocate for farming families.

The organisation’s first national conference was held in 1902.

A South Island collective: the Sheep Owners’ Federation

Only a decade later, in 1910, similar manoeuvring was happening in Canterbury with the formation of the New Zealand Sheepowners Federation by Henry Acland, of Mt Peel Station.

During this era, Canterbury, with its expansive pastoral lands, was a major hub for sheep farming – the

cornerstone of the New Zealand economy at the time.

Like Smith, Acland recognised the need for a unified voice to promote the interests of sheep owners and address issues like fluctuating wool prices, disease outbreaks, and the need for improved farming practices and infrastructure.

Early members banded together to share knowledge and leverage their collective influence to negotiate better terms for wool and mutton, and to secure more favourable conditions for their operations.

Acland served as president of the Sheepowners Federation until his death in 1942.

Merger and birth of Federated Farmers: 1945

In the aftermath of World War 2, a significant milestone was reached as the New Zealand Farmers Union and the Sheepowners Federation merged into one organisation: Federated Farmers.

Although controversial at the time, the merger was driven by a desire, and need, to form a more united and influential agricultural body that could effectively address the needs of all farmers, not just one sector.

Federated Farmers’ formation marked the beginning of a new era for farming advocacy in New

Zealand. The organisation emerged as a stronger, more cohesive body with a broader mandate to represent all farmers.

In the decades after the merger, Federated Farmers continued to grow and adapt to the changing agricultural landscape, with developing technologies, shifting market dynamics, and evolving government policies.

A proud legacy: celebrating 125 years of farmer advocacy

The journey of Federated Farmers, beginning with the vision of both

Thomas Portland Smith and Henry Acland, is a testament to the enduring importance of organised farmer advocacy in New Zealand.

The merger of the two organisations led to the formation of a powerful and inclusive crosssector body that remains committed to advancing the interests of farmers, supporting rural communities, and contributing to the growth of our agricultural sector to this day.

We’re incredibly proud of our 125-year legacy of advocating for farmers – and we’re looking forward to the next 125 years too.

PROGRESSIVE: Florence Polson, founder of the Women’s Division of the NZ Farmers’ Union.

UNITED: Delegates to a NZ Farmers’ Union conference in the 1920s.

INAUGURAL: Bert Cooksley was the first president of Federated Farmers, from 1945-1947.

F.A.R.T: MP Shane Ardern famously gunned a tractor called Myrtle up Parliament steps in 2003, protesting a tax on ruminant methane. Even though methane is burped by livestock, Federated had dubbed it the FART (Fight All Ridiculous Taxes) tax, and it fired the public’s imagination. The Labour government of the day dropped the idea.

Training reform crucial for farming

Overhauling the vocational training system is a chance to build something that works for farmers and makes farming “sexy again”, Toby Williams says.

The Government has decided to disestablish Te Pūkenga, the organisation responsible for vocational education and training across New Zealand.

This follows concerns that the system hasn’t been delivering for key industries like farming.

Williams, Federated Farmers education spokesperson, says the agricultural sector desperately needs the Government to get it right.

“We’ve really lacked good training and education for young people coming into farming over the past decade. The whole thing needs a reset,” Williams says.

“The Government’s reform is a great opportunity to create something that serves farmers and the wider agricultural sector much, much better.

“Both farm employers and young people entering the industry have suffered because of the current broken model.”

Williams says farmers are an ageing population and new blood is needed.

“We really need to find a way of making this whole industry sexy again, and providing high-quality education is a big part of that.

“If we can set up a training system that gives young farmers an amazing experience, with lots of hands-on learning, that’ll help draw them in and keep them on our farms.”

Federated Farmers has made a number of recommendations to the Government, one of them being that experienced farmers are heavily involved in the design and review of course content.

“What we’ve seen is all these people appointed into high-up positions making decisions about farm training, but they have no practical farming experience,” Williams says.

“As we set up a new system, we need farmers or ex-farmers up there at the highest levels to ensure the training works on the ground.”

Training must also prioritise practical, hands-on learning over theoretical learning, Williams says.

“Training in recent years has

become way too book-heavy. That just doesn’t work because most farmers prefer learning on the job.

“It’s ok if they need to go offfarm occasionally for some of their training, but it should be in small groups with other young local farmers, and it shouldn’t be for lengthy periods.

“Experience shows us that if you try to get these kids to go and do classwork off the farm for a week, some just won’t show up.”

Federated Farmers also supports the use of micro-credentials.

“We’d like to see young farmers doing lots of little learning modules that help them gain the specific skills they need,” Williams says.

“Dairy, sheep and beef, and arable are all different to each other, so the modules need to be specific to each one.”

Federated Farmers is calling for a system that helps farmers easily identify which training providers are delivering the best results.

“This kind of system would allow the top ITOs (Industry Training Organisations) to build strong reputations for quality and practical education,” Williams says.

“By recognising those who consistently perform well, it’ll be clear to farmers which providers are worth their time, and others will be motivated to raise their standards to earn the same level of trust and respect.”

Excellent pastoral care must also be central to agricultural training programmes, William says.

“It’s very common for us to have 15- or 16-year-old kids leaving home for the first time to go and work on a farm.

“We need to make sure these young people are wrapped in great support and looked after, so they have a very positive experience, or they’ll leave farming and never come back.

the wider primary sector, could be ignored in the submission process.

If we can set up a training system that gives young farmers an amazing experience, with lots of hands-on learning, that’ll help draw them in and keep them on our farms.

Toby Williams Federated Farmers education spokesperson

“Kids also need to have a way of reporting back to the people in charge about how they’re feeling, so there’s a really good monitoring system in place.”

Williams is also concerned the farmers’ voice, and advice from

“The vocational education and training system covers a vast array of industries, so we have concerns around how well this will land for farming.

“All the other industries have similar issues with attracting and retaining talent, so I just hope we don’t get lost in this process.

“On the flipside, if this is done well, we could end up with a model that sets young farmers up to flourish, which is an exciting thought.

“This is our chance to get it right – we won’t have another one for a long time.”

Submissions on the vocational education and training reform closed on September 12.

PRACTICAL: Toby Williams says young farmers need more practical learning, rather than the theoretical, book-based learning that’s become common.

HANDS ON: Training systems need to give young farmers an amazing experience with lots of hands-on learning, Toby Williams says.

Govt must pull councils into line

Federated Farmers says regional councils are continuing to plough ahead with changes to freshwater rules and the Government needs to take urgent action to pull them into line.

“It’s completely outrageous what’s going on with these regional councils,” says Colin Hurst, Federated Farmers vice-president and spokesperson for freshwater.

“We’ve got a situation where a number of councils around the country are deliberately choosing to ignore the direction of central Government and push ahead with plan changes.

“These councils don’t seem to care in the slightest that Ministers have said the national rules are changing, or that they’ll be needlessly wasting ratepayers’ money.”

Otago Regional Council (ORC) has recently faced intense media and political scrutiny for its continued insistence on pushing through expensive new freshwater rules in October.

Environment Canterbury (ECan) has recently started a 10-day consultation on a plan change that will incorporate new rules for winter grazing and dairy land use into its regional plan.

Environment Southland (ES) is also planning to notify a new regional plan in the coming months that will introduce onerous new freshwater rules for farmers.

“The situation has now become so dire that we’re calling on central Government to take drastic measures and intervene,” Hurst says.

“This is serious stuff that could completely reshape our farming landscapes and rural communities, in spite of a new national direction coming for freshwater management.”

This week Federated Farmers has formally written to Environment Minister Penny Simmonds urging her to intervene.

The letter calls on the Government to take urgent legislative action to prevent regional councils from

notifying these plan changes until a new national direction is in place.

“We’re asking the Government to put a ‘pause’ in place while it establishes a new framework to replace the Resource Management Act (RMA),” Hurst says.

“The Government has been very clear it will be setting a new national direction for how freshwater should be managed by councils and rewriting resource management laws.

“By continuing to move forward with these plan changes, regional councils are essentially giving central Government the middle finger and actively undermining that work.”

ECan intends to push go on new regulations before the National Environment Standards expire on 31 December, which Hurst says is overriding the Government’s repeal of those regulations.

Several other regional councils have also signalled their intent to push through plan changes in the first half of 2025.

“The sheer arrogance of these regional councils needlessly pushing ahead with these plan changes is completely unbelievable,” Hurst says.

“By turning a deaf ear and blindly

changing ahead, all they’re going to end up doing is wasting time and money, and completely eroding

what little trust may remain with their ratepayers.”

Federated Farmers is concerned that councils passing new freshwater plans and regional policy statements risk locking in the previous Government’s unobtainable freshwater bottom lines and Te Mana o Te Wai requirements.

With the RMA set to be repealed, there’s also a very real prospect that ratepayer money will be wasted developing rules that councils will need to change almost immediately, Hurst says.

“These regional councils have made it very clear that they’re hell-bent on notifying these plan changes and won’t stop unless they’re forced to.

“This means, unless the Government intervenes, the likes of Canterbury, Otago, and Southland will ram through new rules before the national direction is reviewed.

“In practical terms, this would

essentially mean that despite the Labour Government being voted out of office, its National Policy Statement for Freshwater Management 2020 will be locked in.” Hurst says that would be a bitter pill for farmers to swallow.

“If that were to happen, all of the new Government’s efforts to make freshwater regulations more practical, affordable or workable will make absolutely no difference behind the farm gate.

“The most frustrating thing about all of this is that farmers are really committed to improving freshwater outcomes and want to do the right thing.

“We just need an enabling regulatory framework that allows us to make those improvements in a way that doesn’t stop us from farming altogether.”

Federated Farmers has invited Minister Simmonds to discuss the matter further.

ARROGANCE: It’s deeply concerning that regional councils are choosing to ignore central Government and push ahead with freshwater plan changes, Colin Hurst says.

RIGHT THING: Farmers are committed to improving freshwater outcomes and want to do the right thing, says Colin Hurst.

Takapau 499 Whenuahou Road

232 ha dairy farm

Hilldale Farm is on the market for the first time in over 100 years This 232 ha dairy operation in the Norsewood/Otawhao district of Central and Southern Hawke's Bay boasts a rich dairying tradition and high production potential.

The farm averages 253,530 kgMS, with 409 kgMS per cow from 620 cows, from 210 effective ha. At the heart of the operation is a centrally located 50 bail rotary cowshed, built in 2006 and upgraded with automatic cup removers in 2023. The property, subdivided into 42 paddocks, features easy rolling contours, well fenced gullies, and optimal fertilization for maximum dry matter production. Three 4 bedroom farmhouses are situated on the property, making it ready for continued success. An 80 ha dairy support unit is also available for purchase

Takapau State Highway 2

Prime dairy support block

Achamore - Located on State Highway 2 in Takapau, this 80 ha (more or less) block has been the supporting backbone of a 620 cow dairy farm, with the added benefit of winter grazing and supplement production. The property's flat contour and strategic proximity to both Takapau township and Waipukurau enhance its appeal.

Intensively utilized from June to August, this land has proven its capability in supporting significant winter grazing operations along with 75 ha of mowable land

This is a rare opportunity to secure a highly productive piece of farmland.

4 2 Auction 2.00pm, Tue 29th Oct, 2024, Centralines, 17

Auction 2.00pm, Tue 29th Oct, 2024, Centralines, 17 Coughlan Road, Waipukurau

By appointment

pb.co.nz/HR189511 Pat Portas M 027 447 0612 E patp@pb.co.nz

Simon Hunt M 021 404 079 E simon.hunt@pb.co.nz

Your First Farm

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• For all makes and models of cars, SUVs, UTVs, motorcycles and minivans; Trucks: Light and Medium Duty

• 5 year/150,000 mile protection

• Compatible with gas and diesel engines

• Safe for cast iron, aluminum and brass systems

“I use Waterwetter in all my machinery and my recreational 4-wheel drive vehicle. Regardless of conditions, none of the vehicles have overheated and remarkably when serviced there has been no corrosion in the cooling systems.“

Scaife and Sons Ltd Contractors

INDEPENDENT DIRECTOR

Passion, integrity, and a genuine desire to do our best for farmers are what drives us at Beef + Lamb New Zealand (B+LNZ). We are 100% farmer-owned and funded and work on behalf of New Zealand’s sheep and beef producers. Our vision is for thriving sheep and beef farmers, now and into the future. Beef + Lamb New Zealand’s investments underpin New Zealand’s second-biggest export sector.

The position of Independent Director will bring independent judgment, outside experience, and objectivity to the board. The board seeks a candidate with proven experience in Māori agribusiness and strong commercial acumen. The ideal candidate will have demonstrated experience in governance and a solid commitment to the success and growth of the New Zealand sheep and beef sector. They should be collaborative, have sound judgment, and be willing to demonstrate strong leadership to the sector and B+LNZ management.

The attributes and skills we are looking for are:

• Evidenced Māori Agribusiness connection to sheep and beef farmers and their rural communities.

• Independence in thinking; be prepared to challenge and be challenged.

• Be future-focused, value continuous improvement, innovation and responsiveness to the sector’s challenges and opportunities.

• Proven and effective governance and commercial expertise, strategic planning and execution.

• Effective, persuasive and respectful communicator.

How to apply:

• Please apply via the B+LNZ website https://beeflambnz.com/about-blnz/work-for-us

• Applications close 5pm, Sunday 29 September 2024

This is a remunerated position, and the appointment is for a three-year term. The commitment required will be approximately three days per month.

For further information, contact Bridget McIlraith, B+LNZ People & Culture Manager, at bridget.mcilraith@beeflambnz.com

ASSOCIATE DIRECTOR - 1 Year Term

At Beef + Lamb New Zealand (B+LNZ), we are passionate about the sheep and beef industry and committed to growing a sustainable and profitable future for our sector. We are farmer-owned and funded and work on their behalf.

Our vision for the sheep, beef, and dairy industry is Thriving sheep and beef farmers now and into the future. Our priorities are focused on three key areas: championing farming excellence, advocacy, and energising the sector.

B+LNZ has a vacant Associate Director position starting in November 2024 for a one year term. This role provides developmental opportunities by offering governance experience and mentoring to aspiring farming leaders in the sector. It aims to expand knowledge and understanding of governance, the B+LNZ Board’s role, the legal framework, and Directors’ responsibilities. The position offers a unique opportunity to experience strategy and governance in action within a sector organisation.

All prospective Associate Directors must have a direct connection to a levy-paying farm, be strongly committed to furthering our farming sector, have the highest levels of integrity, be collaborative in nature, possess sound judgment, and be innovative and strategic in their thinking.

The qualities we are looking for are:

• Passion and commitment to the sheep and beef sector

• Highest of ethical standards and behaviours

• Independence in thinking; be prepared to challenge, and be challenged

• Innovative and values continuous improvement and responsiveness to the sector’s challenges and opportunities

• Effective, persuasive and respectful communicator

• Empathy with farmers and their rural communities

• A role model for the values of the organisation.

How to apply:

• Please apply via the B+LNZ website https://beeflambnz.com/about-blnz/work-for-us

• Applications close 5pm, Sunday 29 September 2024

The commitment required will be, on average, one to two days per month, with the majority of the six-weekly meetings held in Wellington. This is an unpaid position; however, all expenses related to fulfilling this position will be covered.

For further information, contact Bridget McIlraith, B+LNZ People and Culture Manager, at bridget.mcilraith@beeflambnz.com

PLASTIC REPAIRS

WATER TANKS, troughs, calf feeders and more. South Island coverage. Work grouped geographically to reduce travel costs. www.mpws. co.nz or phone 027 565 7282.

RAMS FOR SALE

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

SERVICE BULLS

LEASEABULL.CO.NZ

Pedigree Herefords, Jersey’s pure breed Angus, pure breed Hereford’s and X breed Friesian. leaseabull.co.nz or phone 027 292 4889.

SHEEP CRUTCHING AND SHEARING TRAILERS. Triple and single trailers. Operating in Canterbury and Southland areas for over 30 years. Call Shaun Adams 021 204 1274.

SILAGE BALES FOR SALE 10 BALE EQUIVALENT Otorahanga area. Enquiries please phone 027 471 3856.

06 326 8363.

SLINK COLLECTIONS

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 027 688 2954 Richard.

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. GOATS WANTED

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

HALLMARK BULL SALE

VERMONT ANGUS ALFORD FOREST CANTERBURY

NZAGRI SEEKS TO expand slinks collection area. Previous slinks skins collectors are encouraged to contact us. And skilled skinners to work from 25th August to 15th of October. Apply on site 30 Frazer Road Tuturau or contact Eddie eddiezhi@gmail. com or 027 464 8866.

WANTED TO BUY

WHAT’S SITTING IN your barn? Ford, Ferguson, Hitachi, Komatsu, JD. Be it an excavator, loader or tractor, wherever it is in NZ. Don’t let it rust. We may trade in and return you a brand

bucket for your digger or cash for your pocket. Email admin@loaderparts.co.nz or phone Colin 0274 426 936.

LINK LIVESTOCK

FOR SALE WAIKATO

• Well grown yearling Jersey bulls (Recorded & Unrecorded)

• Well grown yearling XBred Recorded bulls

• Very good Hereford & Jersey 2yr Herd bulls

LEASE

Full range of LEASE bulls available WANTED

• We have multiple clients looking for IN-MILK COWS, All breeds

• Jersey Herd FOR IMMEDIATE DELIVERY In-Milk (up to 300 cows)

All enquiries to Stewart Cruickshank 027 270 5288

For a full list of services & current listings check out our website at www.linklivestock.co.nz

LINKING BUYERS AND SELLERS

SERVICES INCLUDING:

• Buying and selling

• Forward Sale & Purchase

• Livestock Valuations

• On-Farm & Online Auctions

• Service Bulls With options for:

• Purchasing

• Finance-A-Bull

• Lease with Link-A-Bull

CONTACT OUR TEAM OF EXPERIENCED AGENTS COVERING ALL OF NEW ZEALAND www.linklivestock.co.nz Or contact Head Agent Stewart Cuickshank 027 270 5288

BULL & HEIFER SALE

13th Annual Bull Sale - Monday 23rd

VALDA ROSE HEREFORD BULL SALE 5TH ANNUAL SALE

60 Hutchinson Road, Walton Tuesday 24th September 2024 - 12 Noon

50 x Registered 1yr Hereford Bulls

Bulls have been DNA tested - because 2 Bulls went into 1 Mob of Cows Exceptionally quiet and well grown low birth weight bulls. To view full catalogue www mylivestock co nz

Live Streamed with online bidding available on MyLiveStock (please register 48 hours before auction) www.mylivestock.co.nz

Vendors: L E Baker & S L Redman - 021 043 1422

NZFL Agent Chris (Spagz) Martelletti - 027 497 3802

NZFL Stud Stock Agent Brent Bougen - 027 210 4698

Friday 27th September 2024 at 12.00 noon

To be conducted at Bexley Station, 3715 State Highway 3, Awakino Gorge, Mokau 4376

Registered and Unregistered Bulls comprising of: 39 Yearling Pedegree

High Performance Beef Bulls For Dairy Heifer & Cow Mating

• Short gestation length, calving ease & low birth weight

• High growth rate & high carcase

• Quiet temperament guaranteed

THE CHOICE IS

Sale: Tuesday 24 Sept, 12noon On-farm auction, Marton or buy online with 25 TWO-YEAR-OLD BULLS 80 YEARLING BULLS

WILLIAM MORRISON 027 640 1166 ardofarm@xtra.co.nz Ardo Herefords www.morrisonfarming.co.nz

Carrfields Upcoming Dairy & Bull Auctions

Monday 23rd September

Riverlee Herefords & Angus Spring Dairy Bull Sale

2354 Rangiwahia Rd, Rangiwahia, 11.30am

Agent: Dan Warner 027 826 5768

Wednesday 25th September

Bushy Downs 60th Annual Hereford Bull Sale

660 Ngaroma Road, Te Awamutu, 12pm

Agents: Mike Mikenzie 027 674 1149 Kelly Higgins 027 600 2374

Thursday 26th September

Premier Cattle Co Annual Spring

Speckle Park & Murray Grey Bull Sale

400 Brunskill Rd, Cambridge, 12pm

Agent: Kelly Higgins 027 600 2374

Friday 27th September

Premier Cattle Co Pedigree Ayrshire & Jersey Herd Dispersal Sale

510 Fencourt Rd, Cambridge, 12pm

Agents: Luke Gilbert 027 8492112 Kelly Higgins 027 600 2374

Friday 27th September

Bexley Herefords Annual Yearling Bull Sale

3715 State Highway 3, Awakino Gorge, Mokau, 12pm

Agent: Grant Ross 021 174 8403

17th ANNUAL IN-MILK AUCTION

HIGH INDEXED – A2/A2 COWS

VERIFIED – BW318, PW441, LW444

A/c FINCH CONTRACTING

(Darcy & Rachael Finch)

Date: Thursday 19th September 2024

Address: 972 Paterangi Road, Te Awamutu DN 73654

Start Time: 11:30am (undercover, luncheon provided) will be available for online bidding

COMPRISING:

261 x Friesian & Friesian Cross and Jersey & Jersey Cross Cows

DETAILS:

• BW318, PW441, LW444, Herd Tested, x 158 A2/A2

• 20th August 2024 herd test – 2.0KG/MS/ COW – SCC 118,000

• BWs up to 439, PWs up to 844 (7 x Cows with PWs above 700)

• Breed breakdown – 25% Friesian, 50% Crossbred, 25% Jersey

• TB CM – the cows are BVD Bulk Milk tested and Lepto Vaccinated

AUCTIONEERS

NOTE:

Due to a robust selection by Brian Slater and Darcy, Rachael Finch, this will be one of the highest offerings to be presented. Selected from top end empty cows out of elite herds. Cows calved from May onward. Young, all sound, these cows will be presented in optimum condition for mating. Annual buyers have confidence in the standard of cows being offered. All breeds to suit all buyers, A2A2 cows can be selected.

PAYMENT TERMS:

Deferred payment is 20th October 2024 –deliveries immediate to suit trucking CARRFIELDS

Proudly sponsored by

US serves up a juicy beef burger, for now

Prices for fresh US lean grinding product have hit all-time highs, and that’s bringing a lot of ships to its shores.

Reece Brick MARKETS Sheep and beef

ANYONE wired in to sell cattle during winter/ spring has raked in record-breaking prices, whether that’s selling store or plugging finished stock into processing plants. Grass has clearly been a major factor, exaggerating processor shortages and in turn pushing schedules higher. This and an early “spring grass market” have sent store cattle silly too.

But strong export returns from the United States have allowed processors to offer good money as well. The question is how much longer can we expect the US prices to stay afloat?

If we rewind a few months, backto-back years of drought meant the US walked into 2024 with the smallest breeding herd since 1941. Combined cow and replacement heifer numbers dropped to 46.5 million, down 4.5 million from the start of the decade.

Since bull farming is a rarity in the US (less than 2% of the total cattle kill), there’s a major reliance on cows to supply the lean grinding beef used in making beef patties.

With the drought over, suddenly the number of cull cows arriving at the US processors fell sharply, creating major shortages and

$15,37

US imports of frozen boneless beef from Australasia and South America through JanuaryJuly were the highest since 2015.

sending prices for fresh US lean grinding beef to all-time heights. However, there’s a second side to this story that’s slid under the radar – how much beef is being shipped to the US. It’s not surprising that Australia is funnelling much more beef into the US.

Its herd is well and truly rebuilt

and its cattle kill is flying at the quickest rate since the big droughts in 2018/2019.

This is a major reason why frozen imported beef (that is, what Australia and New Zealand supply) has traded at a big discount to equivalent fresh beef from within the US, especially since not all US buyers are set up to use frozen beef.

But Brazil has been a bit of a wildcard. It was always going to cash in on the strong demand too – though it operates under a restrictive quota. Tariffs jump to 26.4% for any beef sold beyond this limit.

Usually, this squeezes most of its US sales into the start of the year.

However, with its main buyer, China, in a weak position, Brazil has kept sending boatloads of beef to the US even after the tariff-free quota was filled.

In total, US imports of frozen boneless beef from Australasia and South America through January-July were the highest since 2015, up 119,000 tonnes or 44% versus only a year earlier.

The lift is even sharper when you include other cuts of beef.

When you map those US beef imports against their cow/bull production, suddenly there’s a 6.5% lift in manufacturing beef traded versus last year.

Admittedly, total beef inventories in the US at the end of July were

4

BACK ON TRACK:

It’s not surprising that Australia is funnelling much more beef into the US, says Reece Brick. Its herd is well and truly rebuilt and its cattle kill is flying.

low compared to the past decade, but it shows that demand has been just as important as supply when it comes to driving prices higher. And this is where it gets interesting. Over the past few weeks, the US imported beef prices have been strong, but with limited upside. Labor Day in the US (the first Monday of September) is the traditional marker for when demand for grinding beef starts to slow and cow production starts to lift.

Whether the prices can hold with the current amount of beef on the market is debatable, yet we’ll have a lot more to sell into the US between now and Christmas as our cattle kill picks up steam.

Weekly saleyards

The second Feilding and Marton hogget fair in Feilding was timed perfectly around messy spring weather, and the sun shone warmly on the backs of buyers. This, and a bit of positivity in the lamb schedule, made for a strong result. Males predominantly weighed over 50kg and returns ranged from $180 to $221. A good portion of the ewe hogget offering traded from $159 to $201, and two lines with Wairere genetics sold for breeding at $155 and $165.

Yearling Angus heifers, 271-331kg

Mixed-age ewes,

lambs, very heavy

Prime mixed-sex lambs,

Charlton | September 5

Lorneville | September 10

2-year beef-cross heifers, 338-476kg

(black)

Hereford-Friesian (red) heifers, small to good

Other dairy-beef heifers, small to good

Hereford-Friesian (black) bulls, small to good

Hereford-Friesian (red) bulls, small to good

Exotic-Friesian bulls, medium to good

Hereford-Friesian heifers, small to good

Exotic-Friesian heifers, small to good

CREAM OF THE CROP: These ewe hoggets have been enjoying the easy life at Kairanga and it showed in their condition at the Feilding/Marton Hogget Fair last Wednesday. They sold for $191.

AgriHQ market trends

Cattle Sheep

Philip Duncan NEWS Weather

NE of the messiest weather patterns so far this year is now tracking around New Zealand and it means a changeable forecast –for some, a highly repetitive one.

Messier doesn’t mean stormier – but it does mean we’re not in a settled, calm, period.

Over winter we had a season of “big” weather systems, from at least two large low-pressure systems that engulfed the entire nation for several days at a time, to the most powerful high-pressure zone ever recorded in New Zealand. Big weather systems can take weeks to move through.

Fast-forward to September and while this new season looks to also be a season of “big”, this month in particular also looks to be the month of “changeable”. That’s because weather systems (anticyclones and depressions) are moving through much faster now –classic spring!

There are two things standing out about our weather pattern this month: One, just how very

powerful the storms over the Southern Ocean are this year. In recent weeks most storms have had air pressure between 920 and 950hPa, which does happen at this time of year but it’s the frequency and large number of storms reaching this depth that is standing out to WeatherWatch this year. And two, the warmer-than-average airflows in the mix.

The warmer-than-average weather won’t be consistent – the volatile weather south of NZ and the generally faster-moving, more chaotic pattern we have means NZ will still get regular cold injections – but because things are moving fast from west to east, these cold air injections may not linger long, and may struggle to go north –limiting northern frosts.

Storms south of NZ will send several cold fronts into NZ so the lower South Island in particular may feel winter this year is taking longer to ease, while those in northern NZ may be talking more about how fast the grass is now growing as an early spring starts to establish itself.

High pressure may cross NZ giving us a pause from this all –and a return to cold nights with a

heightened frost risk. At the time of writing this, high pressure was forecast to cross NZ next Monday the 23rd – but modelling was conflicted about if it would linger very long or directly affect both main islands.

Outside of that, many highs may skirt to our north for a time, allowing for more cold fronts to come in from the west and south.

Due to the dominating westerly flow, rainfall over the next 15 days looks to be mostly on the West Coast with over 300mm likely around mid to south Westland, and around 100mm for parts of the western North Island, like Taranaki and Waitomo. Gisborne and Northern Hawke’s Bay may have the lowest totals.

Highlights this week

• Monday/Tuesday kicks off colder with a southwesterly flow across NZ

• Wednesday/Thursday has milder west to northwest winds returning

• Another cold front moves up NZ on Friday/Saturday

• Most wet weather in the west to southwest of both main islands LET IT RAIN: Rainfall accumulation over seven days starting from 6am Sunday September 15 through to 6am Sunday September 22.