Farmers Weekly NZ August 19 2019 by AgriHQ

Best trade/specialist publication and website – Voyager Media Awards 2019

Vol 18 No 32, August 19, 2019

farmersweekly.co.nz

Banks want billions back $3.95

Incl GST

It’s a laughing stock Hugh Stringleman

hugh.stringleman@globalhq.co.nz

ONTERRA’S farmershareholders can no longer ignore the creaky capital structure of their co-operative. If Westland’s sale to the Chinese wasn’t warning enough last week’s massive asset write-downs of five Fonterra businesses drove home the message. Three $200m non-cash impairments were announced for DPA Brazil, China Farms and the New Zealand consumer business. Smaller write-downs were attached to its Australian ingredients processing business and the foreign exchange reserve effects of its exit from Venezuela. Jarden research head Arie Dekker said Fonterra’s balance sheet is catching up with its earnings and cashflow reality. Whereas in the past an investment like the Beingmate stake was carried in the books with a premium attached for strategic value, the new approach is a more open and honest way of assessing value. “Clearly, that remains a subjective exercise but this announcement does reflect a meaningful cleansing,” he said. The Beingmate holding was written down to near market value last year and now the challenge is achieving that value in small share sales. Efforts to find $800 million of debt repayment through the sale of non-core assets fell short in the 2019 financial year.

NEW PATH: Fonterra chairman John Monaghan and chief executive Miles Hurrell will present the co-operative’s strategy to shareholders in September.

Chief financial officer Marc Rivers conceded the target was missed but said total debt has been substantially reduced. Sales proceeds will, at best, have been eclipsed by likely writedowns of $820m to $860m. Fonterra has now forecast a loss in 2019 of $590m to $675m to follow the previous year’s $196m loss. Chairman John Monaghan says the size of the forecast loss could not be ignored and it will not pay a dividend this year. “Not paying a dividend is part of our stated intention to reduce the co-op’s debt, which is in everybody’s long-term interests.”

The market capitalisation of 1.6 billion Fonterra supply shares fell from $8.2b to $6b during FY2019 then lost a further $400m in the last week. That is an average $250,000 loss of share value for every Fonterra dairy farm. Such an equity loss now has to be reflected in 10,500 farm balance sheets and asset valuations at the end of this financial year, plus whatever loss of confidence and liquidity in farmland has ensued. At $3.50 Fonterra Shareholders’ Fund tradable units are a laughing stock in the sharemarket, near to the worst performer on the board since listing in late 2012.

Therefore, the structure of Trading Among Farmers has been badly weakened at the fundamental link between unit price and supply share price. Fonterra’s reputation has suffered major blows on the sharemarket and among the wider public, from golden handshakes to former chief executive Theo Spierings, who after eight years left behind a ship holed below the waterline. His final pay of $4.67m included salary for one month of FY2019, superannuation and final performance payments. It was paid at the time of his departure in August last year

and contractually could not be withheld by the board. The latest asset devaluations in the hundreds of millions of dollars, euphemistically called one-off accounting adjustments, show the ship has been rusting for some time. The new strategy, to be unveiled on September 12 with the annual results, will have to be backed by structural changes, including to capital. Coming up with structural options could be comparatively easy compared with getting 75% approval from farmers. A split between the core business of milk supply and processing and the value-add products, reflected in compulsory supply shares and optional, tradable market shares, seems a possibility. On the positive side, Fonterra confirmed trading in FY2019 will produce earnings of $160-$240m and the forecast milk price of $6.30 to $6.40/kg will be paid. Monaghan said the cooperative remains strong at the core. “Over the last 12 months we have improved our cashflow, reduced our debt and removed significant cost from within the business but there is still more to do. “The business units that are at the heart of our new strategy are delivering for us and we look forward to discussing our new strategy and our performance with our owners in September. “It’s important that we now implement our new strategy and deliver value back to them,” he said.

0800 862 010

NEWS

WEATHER OVERVIEW This week kicks off fairly mild by day with northerly quarter winds kicking in for Monday and Tuesday as high pressure slinks away to the east. On Tuesday rain moves up the West Coast with heavy falls but dry and mild elsewhere until night. Wednesday to Friday looks unsettled with a large low trying to form bringing rain, showers, some snow to the ranges again and varying winds, mostly westerlies, then turning colder southerly later in the week. This weekend might kick off cold with a southerly but becoming dry as yet another huge high from Australia moves our way. This next big high looks like it will track north of New Zealand, bringing westerlies and West Coast rain back next week.

5 Bank plans put pressure on

farmers

The Reserve Bank proposal to increase the capital requirements of trading banks has put more pressure on farmers for debt repayment and made loans harder to get.

Newsmaker ��22

NZX PASTURE GROWTH INDEX – Next 15 days

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Rain While rain generally leans west over the next week we do have some rain spreading into northern and eastern areas too. Rainfall looks about normal for the North Island if not slightly wetter than usual and the same for the West Coast.

Wind Northerly quarter winds turn stronger northwest on Tuesday then westerly by Wednesday. Later this week winds get pushed more southerly for a time then fade across this weekend as high pressure moves in, likely making for westerlies next week.

New Thinking ��23 Opinion ��24

ON FARM STORY

Temperature We’ve had some cold nights over the past weekend but this week things warm up for a time thanks to northerly and westerly quarter winds until about Thursday. Then we get a colder southerly until Saturday. Warmer by Sunday but colder nights return.

Highlights/ Extremes Some areas of heavy rain this week. It’s a bit messy and complicated but a chance of heavy rain on the West Coast on Tuesday and that might spread into other parts of NZ midweek. Colder southerly late week too.

14-DAY OUTLOOK

Most of NZ has no soil moisture deficit now. More rain is on the way in the week or two ahead with a number of weak lows and western fronts. Frosty weather is limited with many more nights frost-free. We also have some warmer than average days in the mix and sunny days too so overall this is a positive forecast nationwide for some pasture growth bump over the next seven days, even if it’s small.

SOIL MOISTURE INDEX – 15/08/2019

28 Turning meat into money The McFadzean name is well known to farmers looking for top-quality weaners but the family is now turning its attention to producing affordable yearling bulls based on top-of-the-line genetics.

REGULARS Real Estate ��30-31 Employment ��32 Classifieds ��32-33 Livestock ��33-35 Markets ��36-40 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $711. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.

Source: WeatherWatch.co.nz

This product is powered by NIWA Data

For more weather information go to farmersweekly.co.nz/weather

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Debt down despite balance slide Richard Rennie richard.rennie@globalhq.co.nz DESPITE plunging Fonterra share prices and soft land values hitting their balance sheets Waikato dairy farmers have managed to put some debt to bed over the past year and will continue to do so this season. Agfirst’s annual financial survey of Waikato-Bay of Plenty dairy farms provided advisers and farmers with some benchmark indicators for farm performance, and expectations for the coming season based on a model farm (see table for survey details). Agfirst agribusiness consultant Phil Journeaux said the hit to balance sheets represented a 17% loss of farm equity, driven in part by a 10% fall in land values and the 27% slide in Fonterra share values over the past year. He also cautioned that figure is now due for further downward revision thanks to the slide last week in Fonterra shares by another 20c a share. “But we have seen some principal debt repayments coming through. “On average about $60,000 has been repaid per farm and we expect this amount to be similar in the current season.” This is a marked contrast to back in 2015-16 when the average farm was $175,000 in deficit. Since then the funds available for reinvestment have been building. Journeaux said the repayment for last season and this season represents 67% of the amount needed to repay a 20-year table mortgage on a farm. It also came in a season when dry weather after Christmas and higher farm costs had pushed dairy farm profit before tax down 15% on 2017-18. “Ideally, of course, we would all like those repayments to be 100% of the required amount but 67%, that is pretty good compared to where we have been.”

But we have seen some principal debt repayments coming through. On average about $60,000 has been repaid per farm and we expect this amount to be similar in the current season. Phil Journeaux Agfirst The lift in repayments represents both bank pressure to make principal a priority and farmer recognition farm debt must be cut to buffer against volatile milksolids payouts. The payout has had a significant deviation of +/-$1.55/kg milksolids in the past decade. “So with $110,000 available for farm reinvestment, including into debt and capital expenditure, that is not too bad a picture.” The average survey farm’s debt level is now at $19/kg milksolids. All things being equal it could be down to $18.50/kg MS by end of this season, below the national average of about $23-$24/kg MS. Journeaux estimates a more comfortable debt level for farms is $15/kg MS. “And if we got it down to $10$12/kg MS then we would really be steaming along.”

LESS ROOM: Tighter balance sheets mean farmers have less money to deal with environmental issues, Agfirst consultant Phil Journeaux says.

Journeaux predicted the milksolids break-even payment for this year will be $6.06/kg MS, plus 43c/kg MS for cattle income. With predictions of $6.25-$7.25/ kg MS payout, operating costs will be covered. But a $7/kg MS payout will be necessary to cover greater capital investment into growing compliance demands. Farm cost rises also continue to inch ahead of any longer term

Agfirst model farm profile Location

Waikato-Bay of Plenty

Size

127ha

Production (kgMS)

125,000-130,000kg

Cows

360

Debt (2018-19)

$2.467 million

Farm working expenses 2019-20 ($/kgMS)

$4.11

Breakeven payout 2019-20 ($/kgMS)

$6.06

average increase in milk prices. Cost increases have outstripped milk price increases by 1.4% a year over the past decade. Journeaux notes constant cost creep is making smaller farms of 40-60ha far less economic than they once were and pushing them into amalgamation. The slide in land values is an estimate, given the lack of data and sales to base harder numbers on. Journeaux said there is a definitive variance in those values, depending on farm location. “Really, since 2008 we have not seen land prices rise that much and sales have been lower recently. Values have really hit a brick wall. “This is going to take more time to play out. We feel there is also likely to be more downward pressure on farm values over this time.

“Coming over the horizon we have greenhouse gases and carbon tax costs that are likely to hit dairy harder. “Dairy farmers usually face fewer land use options than sheep and beef farmers – not many can plant as many trees.” The longer-term implications of the balance sheet slide are that while farmers can finance their daily operations and make much-needed debt repayments there is less available to deal with the GHG, carbon and environmental demands already on their way. Waikato farmers face the impact of the Healthy Rivers Plan possibly affecting profit levels in the coming five years through nitrogen and stocking level limits. Gas reductions of 10% by 2030 might or might not be required at a rate of 1% a year from next year, also possibly affecting profit.

Nine record years Each year since they started using Wairere genetics, Robin and Gill Murray have produced more lambs from the same land area. “It’s not all about the sheep, but they certainly have helped! One of the biggest improvements has been our hogget lambing. We have mixed and matched our rams. Starting with Wairere composites, then moving back to Wairere Romneys has added more hybrid vigour. Using Dominators for our ‘B’ ewes and hoggets means we get everything we need from Wairere, and they do the job.” Robin & Gill Murray ‘Awarua’ Mt Bruce

Wairere, making your sheepfarming easier and more profitable

www.wairererams.co.nz | 0800 924 7373

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Banks want farm billions back FLOATING farm mortgage rates and some fixed rates fell after the Reserve Bank slashed the Official Cash Rate but not all farmers are benefiting. The country’s largest rural lender, ANZ, said it will cut its agri variable base rate by 40 basis points from today and its fixed base rates by between 20 and 30 basis points. Other banks also signalled cuts to rural lending rates after the Reserve Bank moved to head off a slowing economy by lopping 50 basis points off the benchmark interest rate to a record low 1%. Federated Farmers general policy manager Nick Clark is keeping a close eye on how much the banks are passing on to rural clients. “It does not look like there has been much movement on fixed term rates or floating rates for overdrafts but there appears to have been, for some farmers anyway, reductions in floating mortgage rates of between 30 and 40 basis points.” Farmers the banks have not passed the cuts to are most likely to be those in need of them most,

Fraser Farm Finance principal Don Fraser said. “It will be passed on to those who have got strong balance sheets but those who are struggling and have got poor ratios I would suggest that the banks are not going to reduce their rates at all because they see that (level of debt) as risk.” Banks face increasing regulatory capital requirements from the Reserve Bank and have decided they want the most indebted farmers off their books. “They will be saying we want more principal back and their interest rate will stay the same and they will force the hand of the farmers. “That is how they roll up the people they do not want.” Fraser said a banker told him of a billion dollars of farm debt the banks are no longer prepared to carry in Northland and another billion in Southland. Federated Farmers’ Southland vice-president Bernadette Hunt said farmers there are definitely coming under more pressure from banks to repay debt. “Because they are being firm on their requirements for debt reduction they are not approving finance on capital spending or development projects as readily

Who’s making the cut • ANZ cut its variable agri base lending rate by 40 basis points today. It cuts its Agri fixed base rates 20-30 bps tomorrow. • Westpac cut its agri variable rate by 35 points. • ASB cut its base lending rates by between 29 and 36 points. • Rabobank cuts its variable base rate by 30 points next.

CLOSED: Winter grazing rules could force farmers into cow barns but the banks are unlikely to help pay for them.

and also potentially approval of farm purchases or additional stock.” Tighter credit is bad news for the most indebted dairy farmers who, without the help of their banks, could struggle to fund the improvements their properties need to comply with stricter winter grazing rules proposed

by Environment Southland and possibly central government. “Who knows what the impact will be if farmers are pushed into wintering barns or concrete standoff pads which can be great on a farm but have a very large capital outlay.” Hunt fears changes to winter grazing rules could force farmers

The Science Behind Ultra-Fine Particle Lime When buying any Lime product, there are two critical factors that will determine its efficiency and costeffectiveness. 1 - Purity: Fact - It’s the Calcium carbonate in Lime that raises soil pH. New Zealand Limestone quarries range in Calcium carbonate purity from 99% down to less than 50%. As the Calcium carbonate purity of the Lime decreases, the quantity required to achieve the same result increases. 2 - Particle size: Fact – It’s the exposed surface area of Calcium Carbonate that determines Lime’s efficiency. As Lime particle size is reduced, its surface area, as well as its effectiveness, increases exponentially. Contrary to popular belief, it is a scientifically proven fact that large particles of applied Limestone do not have any significant slow release effect in pastoral applications. Understanding Fine Particle Lime Consider grandad’s Lime rule of thumb, “A ton to the acre”, if we place a 1-ton boulder of limestone in the middle of a 1-acre paddock we have a ton to the acre, however, that obviously won’t

be very effective. If we crushed that same boulder down to Track Lime and spread it in the same paddock, you can guess how effective that’s going to be. Grind that same Limestone boulder down to Lime flour, (far smaller than Ag-Lime), and spread that, you know it will work. So, when it comes to Lime, you already know that particle size is an important factor. Micron sizes: Very small particle sizes are measured in microns. There are 1,000 microns in a millimetre. The smallest size that a healthy human eye can see is about 4 microns. Bacteria are 1 to 2 microns. The smaller the micron number, the smaller the particle size. For agricultural use, Lime is sold under many generalised descriptions that are relative to the particle size of that product. As particle size is such a critical factor when you are buying Lime, it’s important to understand these general descriptions. • Ultra-fine particle: An average particle size of less than 10 micron. • Lime flour: A particle size range of up to 150 microns.

• Fine particle Lime: Crushed, then usually sieved to 250 micron maximum particle size. • Crop-fine Lime: Similar to Fine Particle Lime. • Ag-Lime: Limestone crushed and sieved so that 95% is less than 2mm, (2,000 micron). • Track Lime: Limestone crushed to 20mm, (20,000 micron). Note: These descriptions and sizes may vary from supplier to supplier, therefore when buying Lime, it is important to ask, “What’s the particle size”? When buying Prilled, Granulated or Slurries, ask “What was the particle size before it was processed”? REMEMBER: When it comes to Lime, the finer the particle size and the higher the purity, the better the results. Call Sandra on (06) 858 5235 for our free sample pack, further information, or to arrange an obligation free soil or herbage test and recommendation, or perhaps to just have a chat. © Andrew de Lautour 2019

to reduce cow numbers and struggle to maintain sufficient cashflow to service existing debt. That could undermine land values, worsen debt-to-equity ratios and compel the banks to demand even faster repayments. At the other end of the country it is the dry rather the wet that has left farmers vulnerable. Federated Farmers Northland vice president Colin Hannah said successive droughts mean many of the province’s dairy farmers have struggled to recover from the low payouts of 2014-15 and 2015-16. “There has been a lot of accumulated debt and the banks have funded it up until now but now they want out. “Our expectation is that we are going to see a number of farm sales.”

www.pfpfert.co.nz

Andrew de Lautour

Low Application Rates • Cost Effective • Easy to Spread • Excellent Results • Perfect for Hill Country 06 858 5235 or email: info@pfpfert.co.nz

Ultra-fine particle technology working for you

LK0095925©

Nigel Stirling nigel.g.stirling@gmail.com

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

RBNZ plans put pressure on farmers

The dairy sector is susceptible to higher interest costs or working expenses and to changes in banks’ business practices. Reserve Bamk

The Reserve Bank dropped the Official Cash Rate to 1% on August 8 but the effect will take a long time to show up in reduced farmers’ interest rates, if ever. Hugh Stringleman looks at the background to the shifting balance between farmers and their financiers.

HE Reserve Bank proposal to increase the capital requirements of trading banks has put more pressure on farmers for debt repayment and made loans harder to get. The changes in borrowing policies and much more restrictive foreign investment rules have already affected farmland sales and purchases, real estate agents say. The major Australian-owned trading banks have been accused of scaremongering in advance of the proposed capital rules and leaning on farmers prematurely. Reserve Bank governor Adrian Orr said the banks had been aggressive in lobbying and scaring the public, particularly in the agriculture sector. While the banks have warned of substantial impacts on their margins, Orr said the proposed rules will trim only 0.2%. ANZ chief executive Shayne Elliott said he will review the bank’s size, nature and operations in NZ if the rules are applied. Associate Finance Minister Shane Jones visited the ANZ head office in Melbourne and said he received the strong impression banks will pass on any extra costs to their customers.

And the farming community will bear the brunt of any changes. The Reserve Bank’s intention to review the capital adequacy framework followed regular expressions of concern about high dairy industry debt. In financial stability reports it said dairy debt is one of three key risk areas for the NZ financial system. In its May update RBNZ said 35% of the $40 billion debt in the dairy sector is held by highly indebted farmers with debt of more than $35/kg of milksolids. “On average, these highly indebted farms require a milk price of $6.20/kg MS just to break even and Fonterra is forecasting a range of $6.30 to $6.40 for this season.” Strong prices and production have allowed many farms to make progress in repaying debt and the proportion of dairy loans on principal and interest terms continues to increase. “Banks have so far taken a longterm view in supporting stressed dairy farms and working with them to strengthen their financial positions. “But given its high debt levels the dairy sector is susceptible to higher interest costs or working expenses and to changes in banks’

100% KIWI OWNED AND BUILT! • Farm Workers Accommodation • Additional Family Dwelling (Great for the Kids or Parents) • Rental Income 25% + Yield • Bed & Breakfast

PROPOGANDA: Reserve Bank governor Adrian Orr says trading banks have been aggressively scaring people, particularly in the agriculture sector.

business practices,” the RBNZ said. Vulnerable farms must reduce their debt to improve their resilience to future downturns. However, options for addressing problems at financially stressed farms appear constrained as demand for dairy farmland is low. The Reserve Bank’s sector lending figures show agricultural debt has continued to increase over the past year, particularly for horticulture, and growth in dairy debt has slowed but not yet reversed. Federated Farmers’ latest banking survey of its members shows satisfaction with their banks remains strong but the satisfaction level is declining. It dropped from 74% to 71% over the previous six months and was the lowest since 2015, when the biannual survey series began. The average interest rate being paid now is 5%, down 0.1% from the previous survey. But the average rate for dairy farms has

increased slightly. Most farms, 85%, have an overdraft, averaging $225,000, with a 7.4% interest rate, a level that has hardly moved since the survey began. Members reported a substantial increase in perceptions of bank pressure, with one in five dairy farmers feeling under pressure. The average mortgage of all farms with one is $3.75m and the average for dairy farmer’s is $4.8m. Sharemilkers have an average $1m of borrowing and they pay an average 5.3% interest rate. There has been a reduction in the average rate charged over the past four years, down from 6% to 5%. ANZ has 35% of farmers’ business, Rabobank 20%, BNZ 18%, ASB 16% and Westpac 11% while 19% of farms have no mortgage. One in four farmers reported a change in conditions from their banks over the previous six months. Examples included

Deluxe One Bedroom with Kitchen, Lounge & Bathroom • • • • • • •

interest rates, margins, shifting from fixed to floating interest rates or vice-versa and more information or security required. “This is consistent with banks wanting farmers to pay down debt after supporting them during the 2014-16 dairy downturn and also consistent with banks moving to implement the Reserve Bank’s proposed changes to bank capital requirements.” Federated Farmers also submitted to the Reserve Bank on its capital review, saying it is anxious about the potential increases in lending rates and tighter credit conditions. It notes the estimated total cost of the proposed requirements to the banking sector will be about $20b. While the RBNZ estimated the effect of bank margins to be between 20 and 40 basis points other estimates by KPMG and UBS were more than 100 basis points (1%). The federation was concerned the impact could be higher on riskier sectors such as agriculture. “For farmers an increase in costs along the lines of the Reserve Bank’s modest estimate would be unwelcome enough while the worst-case scenario would be devastating.” It called for more modelling by the RBNZ and if it is to go ahead with the higher capital requirements that a transition period be used to mitigate any unreasonable costs on bank customers and the economy.

Coverage continues next week.

Only $60,000+gst!

Double Glazing Fully Insulated Top to bottom Quality Oven, Hobs, Rangehood and Fridge/Freezer TV Outlet and Wall Mounting Bracket Washing Machine Taps and Plumbing Bedroom Storage & Wardrobes Delivery $2,000 to $3,000+gst (Depending on North Island Location)

Show homes available to view 10am – 4pm at 51 Hunua Rd, Papakura, Auckland For more information P. 0800 468 736 E. info@houseme.co.nz / houseme.co.nz

RAV-19AUG-FW

Is your flock fighting fit? Essential minerals and fly protection

Healthy ewes and lambs are key to a successful season. Let us lend a hand with a full range of essential minerals. Plus our fly prevention range will provide comprehensive protection during docking.

Smarter farming for a better New ZealandÂŽ

Talk to your agri manager to see how we can help keep your flock fighting fit.

0800 100 123 ravensdown.co.nz

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Ministers snubbed methane advice Neal Wallace neal.wallace@globalhq.co.nz CONFLICTING advice on methane reduction targets the Government should adopt is being blamed by Climate Change Minister James Shaw on differences over how to restrict global warming to less than 1.5C. It has emerged Shaw ignored advice from Ministry for Primary Industries officials, the Climate Change Executives Board and Parliamentary Commissioner for the Environment Simon Upton who advocated for 2050 methane reduction targets of between 10% and 35%. The variation is dependent on the global response. MPI recommended a cut of 25% be included in the proposed Zero Carbon Bill but Shaw chose a range of 24% to 47% to apply from 2030 to 2050. In a joint statement Beef + Lamb, DairyNZ and Federated Farmers criticised the Government for its chosen target, saying it is beyond what scientists say is needed for New Zealand to meet its 1.5C Paris Agreement commitment. They labelled it purely a political decision made in Cabinet, based on selective references from the Intergovernmental Panel on Climate Change (IPCC). B+LNZ chief executive Sam McIvor says the decision also ignores the IPCC’s caveat that global targets should not be imposed on individual countries. “The combined effect of the excessive methane targets and net zero target for nitrous oxide, which go beyond the IPCC’s advice for this gas, means that NZ is effectively aiming to go below 1.5C and, by doing so, letting other countries off the hook,” McIvor says. But Shaw disagrees. “The upper targets that they suggested do not meet that 1.5C limit that the IPCC says we need to stay within to avoid catastrophic impacts of climate change. “And maintaining biological methane at levels that contribute no additional warming would also

TOO MUCH: By setting excessive emissions reduction targets New Zealand is letting other countries off the hook, Beef + Lamb chief executive Sam McIvor says.

It’s purely a political decision made in Cabinet. B+LNZ, DairyNZ, Federated Farmers not keep the world within that 1.5C threshold.” Shaw said the Zero Carbon Bill includes a 2024 review of the 2030-2050 methane target range to take account of progress on emissions reductions along with economic and other factors. DairyNZ chief executive Tim Mackle says the chosen target range is proof agriculture is being

asked to do more than is required than what is being asked of other sectors. In a briefing paper to Shaw last November released under the Official Information Act, MPI recommended a 2050 target of a 25% reduction in methane below 2016 levels, consistent with the objectives of the Paris Accord to limit global warming to below 1.5C. The paper says it is also realistic and can be achieved with known technology. “The Paris Agreement does not specify that emissions of biogenic methane need to be offset to zero,” Mackle said. The officials recommend it be regularly reviewed by the Climate Commission.

A brilliant story brewing.

The briefing paper reveals the Climate Change Chief Executives Board, a committee of heads of Government departments, suggested a potential methane reduction range for 2050 of 2235% below 2016 levels, saying it is also consistent with temperature control objectives of the Paris Accord. MPI says that target range is also achievable with existing technology. Officials note the IPCC says methane emissions need to fall by between 24% and 47% from 2010 levels by 2050 then stabilise to restrict warming to less than 1.5C. But the IPCC also noted there is no requirement for methane and nitrous oxide to reach zero

and MPI says a 25% target would achieve the IPCC’s goals. “Based on the range above we recommend that if a target for biological emissions is set in the Climate Change Bill that the target be 25% below 2016 levels by 2050.” “We consider that this would be consistent with the objectives of the Paris Agreement to limit global warming to below 1.5C and would represent a realistic emissions reduction that can be achieved with currently known technologies and avoiding significant land use change.” MPI said reductions above the 22% to 35% range are possible only if there is a significant breakthrough in mitigation technology or land use changes from pastoral agriculture.

5 -14% p.a.*

Galloping global consumption of craft beer has brewers crying out for more New Zealand grown spray-free hops and the unique flavours they bring to beer. Wairua Hop Garden Limited Partnership – a 115 canopy hectare development. • Located in the Nelson hop heartland. • The property will be managed by Hop Revolution – responsible for marketing and selling directly to craft brewers overseas.

• *Forecast cash returns start at 5% p.a. in year 3 – rising to 14% in year 7. • Minimum investment $100,000*.

Register for an Information Memorandum at myfarm.co.nz/wairua or phone Grant Payton on 029 445 5871. This offer is open to persons investing no less than $100,000 and who fall within the exclusions applicable to offers made to “wholesale investors” as set out in Schedule 1, clauses 3(2)(a)-(c) and 3(3)(a)-(b)(ii) inclusive of the Financial Markets Conducts Act 2013 (FMCA). You can obtain further information on FMCA requirements, and whether you come within the exclusions and their requirements at www.myfarm.co.nz/fmca

This offer closes 5pm, FRIDAY September 6th.

myfarm.co.nz

News

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

EU free-trade deal hopes fade Nigel Stirling nigel.g.stirling@gmail.com THE chances of concluding a trade agreement giving New Zealand farmers a fairer crack at the lucrative consumer markets of the European Union this year as planned are receding rapidly. The two sides are so far apart on the key issue of access to Europe’s markets that NZ did not even bother sending its agricultural negotiators to the most recent round of talks in Brussels last month. Dairy Companies Association chairman Malcolm Bailey backs taking a hard line with the Europeans. “It is a clear signal to the other side to do some work on a credible offer and then we have got a reason for our guys to be there and we can move forward with the talks.” The Government’s agricultural trade envoy Mike Petersen said he has not seen the offer on the table from the Europeans because the market access improvements are so pitifully small the Government has decided it is not worth distributing them. He understands it excludes significant products for both the beef and dairy industries. “We need something that does take into account particularly our interests in our main agricultural

It is a clear signal to the other side to do some work on a credible offer. Malcolm Bailey Dairy Companies Assn

THINK AGAIN: Agricultural trade envoy Mike Petersen has not seen the latest European trade deal offer. It was so bad the Government didn’t both distributing it.

products lines and it is simple as that but that has not been forthcoming.” International Business Forum executive director Stephen Jacobi, representing major exporters including Fonterra, Anzco and

Zespri, said without concessions on agricultural market access there can be no progress on items of interest to the Europeans. Of greatest interest to them is the recognition of geographic indications restricting the use

by NZ producers of food names linked to European place names. “What it shows is that they are just not making the progress on the agricultural side of things and until they do that they are not going to make progress on GIs

and until they do that they are not going to clinch the whole thing are they?” With Europe now essentially closed for the summer holidays and negotiators not scheduled to meet again until October the deadline set by both sides for wrapping up the talks by the end of this year must now be in doubt. “You never want to dial back your negotiators’ ambition but it does look ambitious at this stage,” Bailey said. The impasse is especially disappointing given the slew of trade deals the Europeans have recently concluded. “They have been pretty active in concluding deals and have had reasonably credible market access offerings so why on earth they would think NZ would accept anything less is hard to understand,” Bailey said. “If the willingness emerges this could be concluded quite quickly.”

Trade stress blunts China wool-buying Alan Williams alan.williams@globalhq.co.nz MID micron and finer wools suffered a significant fall at Thursday’s Christchurch auction, influenced by drops the previous day at Australian sales. The continuing trade war between the United States and

China is now having a greater impact on global wool trading, PGG Wrightson South Island sales manager and auctioneer Dave Burridge said. Less new business is being written with Chinese traders. Mid micron fleece, 25 to 30 microns, was 5% to 8% cheaper at Christchurch as was 17 to

19 microns Merino wool. There was an excellent but limited offering of new season, pre-lamb crossbred wool but it was also in buyers’ favour, Burridge said. Most crossbred second shear wool was 1% to 2% cheaper. The pass-in rate was 33%. Sales, by micron, price/kg clean:

Full wool, good to average colour: 25, $13.60, down $1.31; 26, $12.61, down $1.19; 27, $11.58, down 77, 28, $9.56, down $1.47; 29, $8.82, down 94c; 30, $8.26, down 99c; 33, $4.08, down 82c; 34, $3.63, down 26c; 35, $3.27, down 23c; 36, $3.07, down 16c; 37, $3.05, down 5c; 38, $3.05, down 5c; 39, $3.04, down 5c.

Crossbred second shear: 35, 3-to-4 inches, $2.95, down 13c; 2 to 3 inches, $2.57, down 6c; 37, 3 to 4 inches, $2.86, down 2c; 2 to 3 inches, $2.51, down 7c; 39, 3 to 5 inches, $2.80, up 3c; 3 to 4 inches, $2.75, up 5c; 2 to 3 inches, $2.50, down 4c. Merino best topmaking style: 17, $23.04; 18, $21.74; 19, $19.38.

28-29 August 2019 | Crowne Plaza, Auckland

Adapting and Thriving in the Changing Rural Environment

Expert Insights from: Farmstrong | Ravensdown | Fonterra Gallagher | Norwood | Dairy NZ

TO REGISTER GO TO CONFERENZ.CO.NZ/RURAL

Together, Creating the Best Soil and Feed on Earth

Together, helping New Zealand grow

Shareholder Rebate

$45/Tonne* New Zealand farmers continue to set the benchmark globally and as your co-op partner, weâ&#x20AC;&#x2122;re proud to help you achieve that. What you do lifts the bottom line for all of us, and weâ&#x20AC;&#x2122;re glad we can reflect that in our Annual Rebate.

ballance.co.nz | 0800 222 090 *The average rebate is $45 per tonne. Individual rebate will vary based on the mix of fertiliser product purchased.

News

10 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Future in value, more than volume Colin Williscroft colin.williscroft@globalhq.co.nz THE primary sector’s future lies in more value rather than more volume, Environment, Trade and Export Growth Minister David Parker says. Many farmers are already responding to market signals and meeting consumer and public demand for more sustainable, high-value products, Parker told the Our Land and Water Symposium in Wellington. New Zealand’s agricultural industry is in the process of working out how to capitalise on its farming systems’ points of difference with other countries to build its brand values. However, NZ’s future farms will be different from today’s singlepurpose enterprises and farmers are being challenged to choose the best use for each part of their properties. Managing the environmental impact of agriculture and horticulture requires different actions depending on the

operation, including the location and type of land, the stock and crops being grown and other local circumstances.

The aim is to spread the word about the latest science and best farm practices known to make a difference.

This year’s Budget included $35 million to improve advisory and extension services providing on-the-ground support to adapt farming operations and building on services and approaches already known to work. The aim is to spread the word about the latest science and best farm practices known to make a difference. Getting every farmer and grower operating at best practice, which customers can see and value,

will be a significant step forward, Parker said. Help for farmers will go handin-hand with new rules that will have to be met and that will be enforced. Economic growth needs to occur within environmental limits and a healthy economy depends on a healthy environment. The key to achieving the Government’s environmental goals is making the right choice around land use, he said. Changing the way land is used can help improve the environment and economy. It not only benefits waterway health but can also contribute to climate change goals and increase productivity. The Budget’s $229m Sustainable Land Use Package will invest in projects to protect and restore at-risk waterways and wetlands and provide support for farmers and growers to use their land more sustainably. Some of the money will improve the tools and advice needed to turn research and development

CHANGING: Future farms will be different from today’s singlepurpose enterprises, Environment Minister David Parker says.

into best practice and action, including Overseer, is one of the key tools for making on-farm decisions, Parker said. Parliamentary Commissioner for the Environment Simon Upton said it is an imperfect tool for modelling outputs but is still one of the most important available, an opinion Parker agrees with, though he said it needs to be improved to maximise its usefulness for farmers and regulators.

The Government is investing $59.6m over four years to strengthen support tools and environmental data and monitoring in the primary sector. The money will be used to examine whether other support tools are needed. It will also support a research fund for freshwater and greenhouse gas mitigation trials to be set up in 2020-21.

“My message to people is ‘health and safety is making sure I don’t have to call your family and tell them you aren’t coming home’. I’ll call them out if I see them doing something unsafe and I expect them to do the same.” DAVID KIDD farmer, Kaipara Harbour

worksafe.govt.nz

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Hi-tech planes save farmers cash Alan Williams alan.williams@globalhq.co.nz RAVENSDOWN hopes to have all 13 planes in its aerial topdressing fleet set up for the IntelliSpread mapping and application technology by 2021. The fertiliser group is getting excellent results from the system but chairman John Henderson said the issue is to get all the planes fitted to meet the unbelievable demand. Only four planes have the technology. In the latest year the more precise fertility scanning and application resulted in 18% of farmland belonging to IntelliSpread customers being avoided because it is environmentally sensitive or unproductive. Those results had great cost and environmental savings for farmers and the group wants to get the gains across the country, Henderson said. “We’re not building up the plane numbers as we’d like but there’s Civil Aviation Authority regulations to work through as well. We want to do them all.” Higher world fertiliser prices increased costs for Ravensdown,

TIGHTER: Holding prices meant squeezing margins, Ravensdown chief executive Greg Campbell says.

reducing earnings and leading to a lower rebate. The group’s fertiliser prices were held at a level that squeezed margins, chief executive Greg Campbell said. The profit before tax and rebate for the year ended May 31 was $52 million, down from $63m a year earlier. After the rebate, tax and impact of discontinued operations, the profit was $12m,

up from $7m. Ravensdown is paying $35m back to shareholders through a $30 a tonne rebate on fertiliser sales. That is down from $47 a tonne last year. Half the rebate was paid in June with the balance paid this month. The co-operative will retain $12m of net earnings to invest in infrastructure, research and development, product innovation

and new technology, Henderson said. “After five years of consistently profitable results our shareholders tell us that the rebate in any one year is not the be all and end all.” A sustainable co-operative with competitive prices across 12 months is more important for the long term. “We could have charged an extra $5 to $10 a tonne, depending on the product, and it’s a good chunk of money but it is the shareholders’ money.” It is a subject the co-operative will be thinking about for the future as well as the impact on the group equity ratio, which was 70% after the rebate payment from 71% a year earlier. Fertiliser tonnages were virtually static year-on-year but sales of the coated urea product N-Protect increased by 75%. It helps reduce the amount of nitrogen lost to the atmosphere and though it is more expensive the overall gain to farmers is 10% to 15%. “They’re starting to realise the value for their farms is worth it,” Henderson said. The higher-value product will replace standard nitrogen fertiliser over time and if the market doesn’t do it then regulation will. He also reported increasing

Measure bility P rofita HOW DO YOU

ON YOUR DAIRY FARM

We’re not building up the plane numbers as we’d like. John Henderson Ravensdown sales of the ClearTech dairy effluent product after a number of award wins this year. Total group revenues of $750m were up from $678m a year earlier. As well as pricing strategy cutting into profits Ravensdown has also built up its inventory to $159m at balance date from $134m a year earlier as a protection against supply risk from global geopolitical issues. A foreign exchange loss of about $1m and setting aside $1.3m for a Holiday Act remediation also figured. During the year Ravensdown spent $27m on infrastructure, $6m on new technology and $5m on research and development. Operating cashflow fell to $32m from $98m previously. Part of that was because May is a big sales month showing up in receivables in the year-end balance sheet, Henderson said.

SHEATHS

S E LT R SU G N M TI R A E TT G E B GETTIN

BUILDING BETTER HERDS 0800 220 232 | info@samen.co.nz | www.samen.co.nz

News

12 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Embrace change, crop growers told Hugh Stringleman hugh.stringleman@globalhq.co.nz

TAKE ACTION: New Zealand agriculture is losing its leadership and failing to capture opportunities because it won’t embrace new things like alternative proteins, Arable Research Foundation chief executive Alison Stewart says.

ADVANCES in food production are moving rapidly and it is difficult not to get caught up in the hype, Foundation for Arable Research chief executive Professor Alison Stewart says. Speaking to the Horticulture New Zealand annual conference she tackled the doomsayers who predict conventional agriculture is a sunset sector. While it is not possible to predict what success stories NZ will come up with, decades of advanced plant breeding and entrepreneurial efforts by farmers and orchardists have given and will continue to give us a good launching platform. Among the trends Stewart

ONE-STOP-SHOP EVENTS Safely dispose of it all at our one-stop recycling events LOCATIONS Westport - 29th August

Geraldine - 11th September

Winton - 4th September

Matamata - 16th September

Selwyn - 9th September

Gisborne - 19th September

ITEMS ACCEPTED FOR RECYCLING: • Chemical containers & drums

• Waste oil from agricultural users

• Silage & bale wrap

• Unwanted agricultural chemicals

• Woven Polypropylene e.g. Fertiliser & feed bags

identified are the increasing demand for safe, sustainable and traceable food, some shifts in dietary habits, the development of new food types and production systems, an increased emphasis on health and well-being and the advent of designer foods. More foods will be plant-based, insect-based or from a marine origin, she said. NZ should embrace that diversity and explore how it can be part of the innovation. Hydroponic food has been grown for many decades so why is NZ averse to using dwarfing systems and growing in vertical farms? Printed 3D food and engineered meat alternatives synthetically grown in a laboratory might not become mainstream in the near future but they will certainly have a place in niche gastronomic markets. Food futurists said animal protein is a sunset industry, that 100% Pure NZ is a fraud and plant proteins are the way of the future. That takes a very black and white view of the world and NZ’s potential future in the global food market. “Why does it have to be an either-or? Why cannot NZ capture the best of both worlds and be known for its diversity of highquality, animal and plant-based production systems?” For the last 50 years NZ plant scientists have developed novel tree, vegetable and arable crops with unique varieties of kiwifruit, apples, potatoes, onions and avocados underpinning horticulture exports. “This success was underpinned by unique NZ-owned germplasm,

Click, 'register for pop-up event'

Indicate the types of waste you wish to bring. You can dispose of: empty agchem containers and drums, unwanted and unused agchems, motor oil and their containers, bulk fertiliser bags, and silage and baleage wrap

Select a time slot

Save your booking! - you will receive a confirmation email shortly after.

GET INVOLVED!

VISIT OUR WEBSITE AGRECOVERY.CO.NZ OR CALL US ON 0800 247 326

More foods will be plant-based, insectbased or from a marine origin. Alison Stewart FAR Its clean air and water resources will provide growth opportunities in oil and seed crops and it can capture high-value, niche components of the plants for protein, plant-based milk and added-value grains markets. For those risk takers in the industry there are many opportunities to explore GMOfree soy, corn and canola, plantbased ingredients for 3D printing and seeds for vertical farming. Stewart warned the loss of leadership in the development and use of advanced breeding technologies is a major threat to NZ being able to capture the new opportunities. New products will be produced by overseas competitors that provide the health and well-being attributes global consumers want and NZ is at risk of being left behind.

Hong Kong woes hit Comvita sales Alan Williams alan.williams@globalhq.co.nz

STEPS TO REGISTER:

constant innovation, control of the value chain, unique value propositions and being first to the market.” Stewart said the predicted effects of climate change will open up many new opportunities for NZ growers, such as subtropical crops like bananas, mangoes and paw-paws.

HONG Kong’s riots were a factor in lower sales for Comvita leading into the end of the financial year, pushing it to a deeper loss. The operating after-tax loss will be $7.6 million, compared to the early May guidance of a $6m loss, the manuka honey company told the NZX. New requirements on the grey daigou channel customers exporting to China also contributed to lower sales. Comvita traded profitably in the June quarter, with after-tax operating earnings of $2.8m,

chairman Neil Craig and executive director Brett Hewlett said. The Chinese company, bought out of a joint-venture in early July, is trading profitably. Despite the full-year loss Comvita has positive operating cashflow and net debt was reduced to $89m from $103m on December 31, they said. An internal review of the inventory of $110m, excluding China, showed there are no material issues in the inventory valuation. Comvita shares slipped 4c to $3.01 on the NZX after the latest release, completing a 46% fall from $5.52 over the last year.

MSD_MB12_01

MULTINE B12

BOOSTED with Vitamin B12

NZ’S LEADING 5-IN-1 VACCINE

New Zealand’s leading 5-in-1 boosted with Vitamin B12 for convenience. MADE FOR NEW ZEALAND, IN NEW ZEALAND.

THE SPECIALISED PRE-LAMB VACCINE

FOR IMMEDIATE TETANUS PROTECTION

Boosted with Vitamin B12. Boosted for convenience. Multine B12. We know New Zealand, so for 80 years we’ve been making world leading sheep vaccines, in the heart of our country, for the whole of our country. Thousands of Kiwi farmers rely on our vaccines because they trust them to work, protecting valuable stock, increasing productivity and boosting farm income. So does it get any better than this? Yes it does. New Zealand’s leading 5-in-1 clostridial vaccine1 just got better. Ask your animal health advisor for Multine B12.

ACVM No’s A11311, A3832, A3977, A0934, A1011. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz. NZ/MLT/0518/0001b. © 2019 Intervet International B.V. All Rights Reserved Ref 1: Baron Audit Data. June 2019.

News

14 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Alliance progress good but more to do: Stacy Alan Williams alan.williams@globalhq.co.nz

GOING HOME: Alliance livestock and shareholdeer services general manager Heather Stacy is returning to Australia to be closer to family.

ALLIANCE has set its minimum price contract for chilled lamb for the Christmas export market at $8.10kg, departing livestock and shareholder services general manager Heather Stacy says. That is slightly down on last year but a sensible level given the expected volatility in world markets, largely round the United States-China trade dispute and Brexit unknowns. “There’s no downside for farmers. It’s the

BUYING CALVES? Record and confirm the movement on-farm within 48 hours Check the calves are correctly tagged

Ensure the calves are registered online in NAIT

Expect an animal status declaration (ASD) form from the seller or sender.

Support disease management and help build lifetime animal traceability

minimum price and we have contracts in place.” Stacy has another two months in the job before returning home to Australia to be closer to her family. “It’s been a tough decision. It’s been extremely rewarding here and I’m proud of what we’ve achieved.” With continuing firm global demand for protein the outlook for red meat is positive for the next 12 months, she said. Prices will be helped by a likely shortage of lamb supply in New Zealand, with up to a million fewer lambs for export than last year, continuing drought impact on sheep meat and beef supplies out of Australia and the demand resulting from the African swine fever impact on Chinese pork supply. Part of the NZ shortage will be caused by farmers keeping more ewe lambs for breeding, a positive for the years ahead, and some lambs will be pushed though into next season for processing.

There’s no downside for farmers. It’s the minimum price and we have contracts in place. Heather Stacy Alliance Stacy came to NZ in late 2016 to take up the new combined livestock and shareholder services post, put together because the two parts service the cooperative’s shareholder suppliers. One of the group’s goals was to make the business more agile and flexible in responding to supplier needs and improving their connectivity to the co-op. “We’ve made major improvements and strengthened relationships though there’s always more to do.” The group’s Livestock Excellence Programme has focused on improving frontline staff expertise and technical skills. “The field team are at the coal face so we’ve trained them up to be able to communicate the strategy of the organisation to farmers and we’re committed to build the connection so that suppliers can know your co-op and understand how the business operates.” Stacy said shareholder numbers are increasing every year. “We think farmers appreciate a strong cooperative in NZ, that it underpins the industry.” Alliance is increasing market share in the North Island, getting new shareholders and investing in the processing plants there. Stacy is part of the executive team developing strategy. “We’ve had big investment progress to ensure a sustainable co-op and future growth as well, such as the pet-food investment.” She believes a good balance has been set between livestock schedule levels, profit distribution and reinvestment of profit in the business.

Have your say on this issue: farmersweekly.co.nz

Need help? 0800 482 463 7am–6pm (Mon-Fri)

ospri.co.nz

Editor: Bryan Gibson Twitter: farmersweeklynz Email: farmers.weekly@globalhq.co.nz Free phone: 0800 85 25 80 DDI: 06 323 1519

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Bad sin tax will ruin farmers Annette Scott annette.scott@globalhq.co.nz LIVESTOCK farmers are working with, not against nature and people don’t get that, food science and biotechnology expert Professor Frederic Leroy says. The challenges of the posttruth era are not going away and as a matter of urgency red meat producers need to tell their story, he told the Red Meat Sector conference. And the message should not be apologetic. “Yes, we are facing a substantial public health crisis and there is a threat to our planet and life on it. “The status quo is not acceptable but we need to work with the best evidence. “We need to stop blaming farmers, livestock and animal source foods and integrate them respectfully as part of the solution instead. “We must refrain from scapegoating for redemption to divert focus and start dealing more seriously with the actual priorities,” Leroy said. According to a vocal minority the future of food is non-food. That is being promoted by leading companies such as Impossible Foods and Beyond Meat and, surprisingly, global

We need to stop blaming farmers and integrate them respectfully as part of the solution. IT’S NOT ON: Belgian food scientist Professor Frederic Leroy says farmers are being lumbered with an unjustified sin tax.

Professor Frederic Leroy health organisations also appear intent on eliminating animalbased products from the food chain. Leroy said systemic change requires social engineering. The reports advocating a tax on red meat to save the planet have been designed by policy people. “So don’t underestimate their real value. These are high level policy makers.” Livestock and their derived products are being used as a scapegoat. “Dietary comparisons need to be done on a fair basis and nutrition is changing the picture of true and reliable facts. “We are facing a global challenge to feed a population with nutrient dense food. “A similar contextualisation is needed for water, biodiversity and animal welfare. It’s not fair to lump them into the calculations.”

Unfortunately, the antilivestock product campaigns gain credibility by being backed by eminent scientists being selective with the facts they use to justify their position. The EAT-Lancet report has fuelled diet recommendations with the need to reduce carbon emissions to reduce the rate of climate change. “We have been eating red meat for 2.6 million years. Without red meat we would have died. It’s been essential to our ancestors.” Leroy produced figures showing the universal adoption

of veganism would reduce the carbon footprint by only up to 6% while livestock are responsible for 4% of greenhouse gases and transport and energy production for 50%. “So is a sin tax justified? “Fossil fuels is the elephant in the room here. “So is animal protein unhealthy food? Is it what we need to combat?” Red meat consumption is decreasing globally and in New Zealand. “Don’t try and cut corners, you are going down the right

path, stick to it,” he advised. He urged farmers and industry stakeholders to tell their story with passion and pride. “Show meat is more than a patty. “The pride and passion is there but it has to be brought to the public. “Livestock farmers are working with nature, not against it. “People don’t get that and you have to change that, communicate that, get the science that shows that, get the people backing. “Don’t just treat meat as a commodity,” Leroy said.

Kiwi to follow the Chinese yuan down A WORSENING world growth outlook caused by the United States-China trade war has forced BNZ to slash its year-end forecast for the kiwi dollar. The new number is US$0.62, down from the 0.70 in place for several months. The higher figure assumed the trade war would eventually be resolved but it has been escalated

by new tariffs imposed by US President Donald Trump and the Chinese responding by weakening their currency, BNZ currency strategist Jason Wong said. The yuan has broken above seven to the US dollar and BNZ’s Asia-based expert believes China will move it out to 7.4. Because the kiwi dollar and yuan typically move in tandem, that rate puts the

kiwi in the US$0.615 to 0.62 range. NZ’s exports to China are traded in US dollars but the yuan-kiwi mix is relevant and they have been closely aligned since the trade war started, he said. “The kiwi is a commodity currency and a proxy for global growth and China is a key market in that, so we are a slave to what happens to China.”

The situation is volatile and one positive tweet from Trump could change the picture overnight to push the dollar back up strongly but such a development is seen as increasingly unlikely now, he said. The US dollar is strong against all comers despite markets pricing in four Fed rate cuts to take its overnight rate to 1% from the

current 2%. So, to weaken the big dollar significantly, the Fed would need to cut well below 1%. The BNZ has retained its Aussie dollar comparisons for the kiwi because they are subject to the same forces but cut the kiwi forecasts against the euro to 0.55 at year-end and the Japanese yen to Y64. – Alan Williams

It protects sheep and boosts Vitamin B12. Multine B12: NZ’s leading 5-in-1 with the boosted convenience of Vitamin B12. Multine® is New Zealand’s leading 5-in-1 clostridial vaccine1, protecting against pulpy kidney, tetanus, blackleg and malignant oedema in sheep, cattle and goats. And now it’s even better with the boosted convenience of Vitamin B12. Ask your animal health advisor for Multine B12.

MSD_MB12_02

MADE FOR NEW ZEALAND, IN NEW ZEALAND.

ACVM No A11311. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz. NZ/MLT/0518/0001d. © 2019 Intervet International B.V. All Rights Reserved Ref 1: Baron Audit Data. June 2019.

News

16 THE NZ FARMERS WEEKLY â&#x20AC;&#x201C; farmersweekly.co.nz â&#x20AC;&#x201C; August 19, 2019

PGW invests for farm spending reboot Alan Williams alan.williams@globalhq.co.nz PGG Wrightson is confident of further growth for its Fruitfed business in an expanding horticulture sector and is planning expansion of its Go funding product for sheep and cattle farmers. After what the rural services group calls a challenging and transformational year, the directors and management are taking a positive but cautious approach, chief executive Stephen Guerin said. Though the new financial year is just a few weeks old they expect to achieve operating Ebitda of more than $30 million, up from $24.4m in the June year just completed. The outlook encouraged the directors to pay a fully-imputed final dividend of 7.5c a share on the $4m of ordinary after-tax earnings in the latest year, which provided earnings a share of just 5c. The profit was down from $9m a year earlier. The Ebitda forecast is based on a more normal trading year, expected continued strong world demand for protein leading to good sheep meat and beef prices and better confidence in the ability to manage the Mycoplasma bovis issues flowing through into improved trading, chairman Rodger Findlay said. The group is buoyed by ongoing horticulture confidence, believing Fruitfed will go from strength to strength. PGW is building its business

for a recovery in farm spending, continuing to invest in IT, notably e-commerce activity. The agency and retail and water divisions had lower Ebitda, the groupâ&#x20AC;&#x2122;s favoured measure of operating performance, in the latest year but in the latter division Fruitfed increased its earnings despite a $1.8m net cost over a defective product supplied to it to sell to customers, Guerin said. Fruitfed has a national market share well above 50% in its business and is benefiting especially from the crops planted in the last couple of years coming into production. That is expected to continue in the kiwifruit, apple and avocado sectors with some developments also likely with vegetable crops on the Canterbury Plains. Fruitfed makes up about 30% to 40% of the retail and water earnings. Water is a difficult sector because of curtailed irrigation development so about 20 staff have been put off as it was downsized. The Go funding business increased its lending to farmers to $47.7m from $39.4m a year earlier, Guerin said. Expansion is planned but was put on hold as the company dealt with the sale of the seeds and grain business as well as executive and board changes. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got an internal cap on how much we lend and after doing some preliminary work we will be picking up on it again soon to decide what level we can go to.â&#x20AC;? Go is a good business with a

A challenging year PGG Wrightson, year ended June 30 (previous year in brackets) Agency $m

Retail & Water $m

193.84 (200.57)

611.7 (603.81)

Ebitda

15.39 (20.11)

19.62 (23.81)

Ebit

11.45 (16.18)

15.92 (17.88)

After-tax profit

9.60 (10.43)

11.64 (13.58)

Revenue

ON THE UP: Fruitfed Suppliesâ&#x20AC;&#x2122; Malcolm Duncan monitors of a crop of broccoli with Mike Arnold, general manager of Leaderbrand South Island, at their Chertsey farm.

quite rapid turnover period of nine to 12 months for cattle and shorter for sheep, for which most lending is done. PGW retains title to the livestock while they are finished on-farm, gets a margin on the holding costs over that time and receives the buy-and-sell commissions. The year just gone provided the most challenging operating conditions in recent times, cutting into revenues and profits, Findlay said. It coincided with the sale of the seeds and grain business to Danish group DLF Seeds. Lower confidence in some sectors reduced farm spending. Doubts caused by M bovis affected the livestock business with dairyrelated activity lower. A tightening in the credit environment also influenced farm spending. At $24.4m, the operating Ebitda was down from $34.5m a year earlier and slightly lower than guidance in May. That was caused by on-farm conditions, Guerin said. Revenue was steady at $809m. An operating cash outflow of $49m, including the seeds business, was recorded compared

to positive cashflow of $5.76m previously. About $12m of the outflow related to the seeds business and the group also made a $10.3m pension fund payment.

Weâ&#x20AC;&#x2122;ve got an internal cap on how much we lend and after doing some preliminary work we will be picking up on it again soon to decide what level we can go to. Stephen Guerin PGG Wrightson The agency business profit was also back on the prior year because of market conditions. Livestock earnings were lower at the half-year and did not recover to the extent expected despite strong sheep and beef prices and demand. Some sheep and beef finishing was delayed.

In the dairy sector M bovis reduced herd settlements and dairy beef trading. PGW will continue to work with DLF, distributing seeds to it clients. PGW paid down its borrowings after the sale of the seeds business. At the June 30 balance date, it had total assets of $565.5m and an equity ratio of 70%. The profit on the seeds sale was $134m. PGW had booked a $6.4m loss on the division before the sale, leaving a net gain of $127.8m. That left a bottom line profit of $131.8m. PGW paid out $234m in a return of capital to shareholders after the sale. In July the company set up new core banking facilities of $50m, plus a working capital facility of $70m, both on competitive terms, Guerin said. Findlay said the group will provide earnings guidance at the annual meeting in October, once the busy spring trading period has started. A smaller corporate model following the seeds sale is expected to produce $2.5m in savings this financial year.

GET THE WHOLE PICTURE AND MAKE BETTER DECISIONS. TESTING FROM THE GROUND UP With over 30 years testing for NZâ&#x20AC;&#x2122;s agriculture sector, Hill Laboratories is your one-stop-shop offering a suite of tests, to give you the complete picture! We have the technology and expertise to test your soil, plants, crops and water for nutrients and spray residues. And with methods developed specifically for NZâ&#x20AC;&#x2122;s unique conditions, your results will give you the information you need to make the best nutrient and farm management decisions.

FREEPHONE 0508 HILL LAB (44 555 22) www.hill-laboratories.com

NUF0311_FW

DON’ T JUST SPRAY WEEDS, NAIL THEM.

When you’ve got really tough weeds to tackle, you want to nail the job once and for all. Nail 600EC is the new super strong companion herbicide to complement and super charge your glyphosate. With 600g per litre of carfentrazone-ethyl, a little goes a long way – so you can increase your uniform brownout in no time.

Visit your local Rural Supplier today and ask about Nail 600EC. nufarm.co.nz

Nail 600EC is a registered trademark of Nufarm Limited.

ONE NAME FOR IRRIGATION The Precision VRI system that has been leading the way in efficient irrigation for more than a decade is now going to become a whole lot simpler. We’re aligning with a name known the world over for having the strongest line of irrigation solutions, that offers the best field tested systems and industry-leading technology. And it’s a name you probably already know, Zimmatic®. Zimmatic® Precision VRI is the same awardwinning technology you’ve come to know

and love, designed right here in New Zealand with the same ability to allow customised irrigation to make sure you’re getting the most out of your resources. You see, all we’re changing is the name – from Growsmart® to Zimmatic®. New name, same product. It’s that simple.

Find your local Zimmatic® dealer at www.ZimmaticANZ.com

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Far North iwi buys market garden Hugh Stringleman hugh.stringleman@globalhq.co.nz FAR North iwi Te Rarawa has spent a substantial but undisclosed sum buying the Bell’s Produce horticulture business near Kaitaia. More than 200ha of orchard and market gardens at Pukepoto adjoins the irrigated Sweetwater dairy farms already owned by Te Rarawa and being managed by Landcorp. Bell’s employs more than 100 people in peak season and all staff members have been offered continuity by the new Maori owners. Bell’s will be owned and managed by Te Rarawa’s commercial arm Te Waka Pupuri Putea along with the iwi’s existing commercial investments and asset base, now worth $70 million. Founded in 1995 by brothers Nick and Allan Bell and cousins Jeff Moore and John Reed, the business specialises in mandarins, kumara, corn, pumpkins, melons, cabbages, cauliflowers, broccoli and silverbeet. In-house freight and

TOGETHER: Bell’s founders with Te Rarawa representatives, from left, Nick Bell, Bertha Bell, John Reed, Allan Bell, Haami Piripi, Jeffrey Moore and June McCabe.

preparation such as washing, waxing and labelling means produce moves directly from the

grower to market with maximum freshness. Te Rarawa chairman Haami

Piripi said the purchase gives the iwi a 10-year head start on its horticultural aspirations since

its Treaty of Waitangi settlement in 2015 with assets of about $40m. The purchase will provide work and training opportunities for iwi members and fits with the iwi’s Four Pou principles governing economic, cultural, social and environmental wellbeing. Holding company chairwoman June McCabe said the purchase followed a robust due diligence and negotiation. “We can potentially amalgamate adjoining lands and work with Bell’s to use their intellectual capital and infrastructure to expand production. “In the Far North we have plenty of sunshine hours and a warm climate – all perfect for growing sweet, juicy fruit and fresh vegetables,” she said. The families were very pleased to sell to the local iwi and Allan Bell will join the board of directors while Reed will manage the field operations for 12 months. Iwi members were invited to a handover ceremony last week and have been encouraged to keep buying their fruit and vegetables from the Bell’s roadside premises.

T&G challenges outweigh better apple prices Alan Williams alan.williams@globalhq.co.nz DIFFICULT weather has affected T and G Global’s pipfruit business. Harvested apple volumes and fruit size were smaller than expected, chairman Professor Klaus Josef Lutz said. Quality issues in the New Zealand and European pipfruit operations also resulted in less fruit available for the market. Lutz said the negatives were partly offset by better prices for the group’s premier Envy and Jazz apples but division revenues were still lower. Pipfruit sales for the six months ended June 30 fell to $298 million

from $329m a year earlier and the operating profit slipped to $11.4m from $13.1m. T and G’s overall revenues were $560m for the six months, down from $581.7m previously. The fall would have been greater but for an improvement in the international produce division, helped by good exports of grapes from Australia and strong Australian sales of citrus, berry fruit and plums. The NZ produce division revenues were lower, mainly because of the sale of the Northland-based kiwifruit business last financial year, which reduced volumes for sale this year. As well, the mild start to the NZ winter caused unusually low

prices for important products such as tomatoes and most green vegetables. Lutz said the division’s earnings remained relatively steady as gross margins improved and operating expenses fell. The gain on the sale of the kiwifruit assets made up most of the $3.1m in one-off gains, which were important in the group’s earnings for the half-year. Finance costs of $7.4m exceeded the Ebit operating profit of $6.79m, which was down heavily from the $10.45m at the same time last year. The bottom line after-tax figure of $3.97m from continuing businesses include an income tax credit of $977,000. The half-year

figure a year ago was $5.33m, after paying $1.37m in tax. An operating cash outflow of $5.6m compared to positive cashflow of $3.38m previously. Lutz said the outlook for the second-half of the year is positive compared to last year’s second-half, which face several operational challenges. Gains from reorganising the business should start to show-up in this period. T and G Global will continue to recycle non-core assets and invest in the growth of Envy and Jazz. The company, 74%-owned by German group BayWa, had total assets of $979.7m at balance date, with borrowings of $233,6m making up nearly 24% of assets.

Docking? Get sorted in just two shakes...

FAR_09163_FW NI

At Farmlands we’ve got everything you need in one place!

0800 200 600 www.farmlands.co.nz

14 WEEKS PROTECTION

LOOKING UP: The prospects for T and G Global are positive and gains from the business reorganisation should show up in the next six months, chairman Professor Klaus Josef Lutz says.

HawkEyeÂŽ by Ravensdown HIGH TIDE DAIRY

Use HawkEyeâ&#x20AC;&#x2122;s map-based software to order nutrients and spreading from your mobile or computer. Track nutrient placement data, streamline record keeping and simplify compliance. Make your farm nutrient data easier to see. Join the thriving HawkEye community today. hawkeye.farm 0800 73 73 73

HIGH TIDE DAIRY

RAV-19AUG-HE-FW

Decisions made. Made easy.

News

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Gas culprits identified in rumen Richard Rennie richard.rennie@globalhq.co.nz A JOINT effort by New Zealand, Australian, American and Japanese scientists has discovered another way to cut livestock gas emissions. Researchers have, for the first time, been able to identify the main rumen microbes that produce and consume hydrogen, a vital gas for rumen methanogens that feed on it in the process generating the greenhouse gas methane. The work by AgResearch and Otago, Illinois, Hokkaido and Monash Universities. The findings have just been published online by the International Society for Microbial Ecology. The scientists’ work contrasts to other recent discoveries around methane inhibitors that focus on reducing the methane microbes produce. “So this work is not so much focusing on the methanogens. It is more about the organisms that produce the hydrogen that the methanogens love to live on and grow on in the rumen,” research head Dr Graeme Attwood of AgResearch said. The microbes are an important part of the rumen ecosystem with

WEBSITE

their hydrogen providing fuel for methanogens that form 70% of its methane-forming microbial population. “From here the trick is to find ways to control the process of hydrogen production.

Low methane emissions animals are something you can select for but we would like to identify pathways that encourage lower levels in the general animal population. Dr Graeme Attwood AgResearch “The hydrogen is produced when fibre is digested in the rumen so we will need technologies that do not compromise the animal’s ability to digest that fibre,” Attwood said. “Our best scenario is to redirect the hydrogen to organisms that do not make methane as a result of consuming it.” He said the team was fortunate

www.crmcphail.co.nz

to have access to data generated from trials studying low and high gas emitting sheep. That world-leading research was also done in NZ and found there was as much as a 38% difference in gas emissions between high and low emitting sheep. “We were lucky enough to also get some rumen samples from those animals and we did a whole lot of DNA sequencing on them. “We found the low emitting animals had a whole different set of organisms consuming hydrogen, effectively competing with methanogens for that hydrogen. “Low methane emitting animals are something you can select for but we would like to identify pathways that encourage lower levels in the general animal population. “We are looking at molecules that will reduce the hydrogen levels without compromising fibre consumption.” While much of the industry would love to see an easy, oneshot fix to methane, Attwood cautions it is a difficult path to develop one. “You can see quite rapid changes when you introduce inhibitors to the rumen but the trick is to make sure you get

enquiries@crmcphail.co.nz

GASSED: Identifying gas-producing microbes might help cut emissions off at the pass, scientist Dr Graeme Attwood says.

inhibitors quite specific to the target bacteria and that their effects last long enough to be useful. “There is also the opportunity for resistance to develop in microbes, just as it does with antibiotics. “So we require a suite of molecules on hand to choose from and possibly rotate over time to reduce the likelihood of that happening.”

PHONE

(06) 357 1644

The ideal outcome would be if an animal could be vaccinated and produce the required response itself. But that is tough given the range of microbes, compared to the usual one target-one needle approach for vaccinations in humans, for example. With the microbes identified now the researchers are sifting through compound libraries, seeking out those compounds that deliver the greatest gas-reducing response from the microbes. Massive Dutch chemical company DSM has claimed its methane inhibitor 3-NOP is due for commercial release this year on ration-fed livestock. Attwood said he and his colleagues do not see it making their work redundant. “Far from it. It is quite complementary to our work, given we are looking at the supply of hydrogen while it focuses on the methanogens directly. The two can work together.” The work was funded by the Government in support of the activities of the Global Research Alliance on Agricultural Greenhouse Gases, a NZ initiated alliance of 57 countries working together to reduce greenhouse gas emissions from agriculture.

Newsmaker

22 FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Distant experts fight bug threat Two scientists on opposite sides of the world are at the forefront of the battle to keep some of the most insidious, damaging pests at bay from valuable food crops. This summer in northern Italy they are working closely in an effort to try to stymie the spread of the voracious brown marmorated stink bug there and keep it out of New Zealand entirely. Richard Rennie spoke to Professors Claudio Ioriatti of Foundazione Edmund Mach and Max Suckling of New Zealand’s Plant and Food Research and University of Auckland about their battle with bugs across the hemispheres.

TANDING in an orchard in the warm north Italian sunshine Professor Max Suckling casts a rueful eye towards the mountains surrounding the Trento district. “I am sure those hills are crawling with them,” he observes, referring to the brown marmorated stink bugs flitting and crawling across the ripening apples next to him. The voracious bugs inject an enzyme making the fruit fall early, rot and become unsaleable before moving on to indifferently wreck the next ripening crop. Seconded to the Fondazione Edmund Mach research centre for the summer, Suckling is one of New Zealand’s leading experts on insect pests and control. This summer spent in the idyllic alpine setting in Trento brings him face to face with what he calls one of the most devastating, difficult pests he’s ever met. The stink bug has already almost wiped out Italy’s €300 million pear industry and now threatens Trento’s 10,000 hectares of apple crops. Its impact in NZ would devastate the horticultural sector and significantly increase the amount of sprays used on remaining fruit, losing NZ fruit’s premium as a low-residue fruit supplier. The bug’s spread from further north into the fruit bowl of Europe gives his work extra serious implications for both his Italian hosts and growers half a world away in NZ.

Claudio Ioriatti is head of extension at the nearby Foundazione Edmund Mach research centre and an expert on the bug. The two men share an acquaintance of over 25 years, moving from presenting at conferences around the world to a recognition they were following similar research paths at opposite ends of the world.

Over the years it was very reassuring to see the work Claudio was doing. It can be a pretty lonely path as a research scientist down at the bottom of the world. Professor Max Suckling Plant and Food Research That includes work on integrated pest management, combining biochemical and biological controls in a way that reduces reliance on pesticides in orchard and crop systems. “Over the years it was very reassuring to see the work Claudio was doing. It can be a pretty lonely path as a research scientist down at the bottom of the world. “Knowing Claudio has been working on similar areas has given me the confidence my ideas are worth pursuing. I often quote him,

INVEST IN A portfolio of 12 properties

he often quotes me,” Suckling said. Suckling oversaw the research response to the painted apple moth outbreak in Auckland in 1999, with a $65m eradication price tag, well under the $300m cost if it had become established. It was an effort that earned his team a science excellence award. More recently a codling moth control programme he helped develop in Hawke’s Bay releases sterile male Canadian moths via drones. It has successfully knocked the moth population numbers back tenfold, ensuring orchards can use less spray and the industry retains valuable market premiums. “Every country has issues,” Suckling says. “Next month I will be visiting Chile, dealing with a moth incursion there. “There is no single solution and it often comes down to a combination of techniques, using pheromones, sterile males and other newer approaches.” Ioriatti oversees 150 staff in his extension role while traversing the globe working with cropping industries in countries grappling with pest incursions. Biotremology, an emerging science with Ioriatti’s Fondazione at its centre, involves using synthesised insect mating calls to draw pests into traps. This pied piper technology uses mechanical engineering, insect science and high-tech equipment to record insect mating calls. Early indications are it could play a key role in stopping the

GLOBAL TEAM: Professors Max Suckling and Claudio Ioriatti in Trento, northern Italy.

stink bug spreading further and be a critical monitoring tool in the early stages of an outbreak in NZ. A day spent with the men reveals they are in for a tough fight and not only with the stink bug. Italy is also grappling with the equally devastating spotted wing drosophila fruit fly in Tuscany and most other areas. The fly damages high-value crops like cherries, grapes and blueberries and is likely to spread further as global temperatures climb. Ioriatti is heartened by what he has seen achieved in NZ. Controlling pests like codling moth in Hawke’s Bay has provided some good pointers for the Italians’ work. “There are lots of ideas coming out but getting funding for them, that is the hardest part,” he said. Suckling says it is only when

PROJECTED RETURN *

people’s food choices are limited because of pest impacts that the importance of the scientists’ work really hits home. “And for some nations in subSaharan Africa that has already happened. “Their ability to grow high-value crops like mangoes is now nonexistent due to insect incursions like the oriental fruit fly. With that goes an economic opportunity but also a dietary opportunity. “They are left only capable of growing starch crops like cassava, which are not an ideal part of a diet. From there you have the risk of geopolitical impacts of hungry nations and displaced populations. “The work we share with our Italian counterparts, it is really about taking a global approach to problems caused by globalisation,” Suckling said.

Investor presentations in all major cities featuring

Cameron Bagrie For more details visit our website

per annum

OFFER OPEN FOR A LIMITED TIME

Minimum investment 20,000 shares **

$1.05 per Share

*The projected cash distribution for the full financial year to 31 March 2021 of 7.35 cents per share at the issue price of $1.05 per share equates to a 7.00% gross distribution yield. The cash return is indicative only and is net of expenses and fees, but pre-tax. **20,000 Shares ($21,000) and parcels of 10,000 Shares ($10,500) thereafter. The offer is for shares to be issued in Pacific Property Fund. A product disclosure statement for the offer is available and can be obtained by visiting our website www.pmgfunds.co.nz Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser who takes into account their personal circumstances.

Download a Product Disclosure Statement today at www.pmgfunds.co.nz or call us

P 0800 219 476

pmgfunds.co.nz

New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

NZ has ingredients for new foods New Zealand has a great opportunity to diversify its farming base by growing protein in pulses and grains and that might extend to edible natives, arable adviser and researcher Nick Pyke says. His company name spells it out – Leftfield Innovation – as Hugh Stringleman finds.

HE company purpose statement says Leftfield Innovation aims for a better New Zealand through sustainable food production delivering higher nutrition and value. No argument with that, let’s get on with it. Founder Nick Pyke says much of the research work has been done and he needs farmers who share his vision so crops can be grown, agronomic challenges overcome and trust established between growers and processors. Rather than circling the wagons around our livestock farmers should use some strong points of difference to build that better world, he says. Our temperate climate, good soils, traceability, high quality and good farmers position this country for producing innovative, nutritious and tasty foods. Speaking to the second ProteinTech conference in Auckland last month Pyke said we can’t compete in the mass production of grains and peas and shouldn’t try. He cites hundreds of millions of dollars of investment into new pea fractioning plants in Canada, raising its capacity fivefold in four years. “We shouldn’t bother to compete in fractioning any type of plant protein, really.” Meatless burgers will quickly become cheap and ho-hum but NZ has a unique opportunity to put animal and plant products together in the same food types. They will be new niche products with dependable flavours and

TAKING THE PULSE: Leftfield Innovation founder Nick Pyke says New Zealand farmers could grow pulses like fava beans, which have high protein content.

sensory attributes, Pyke says. They might incorporate our higher protein natives such as karaka berries, tawa and hinau, green leaves from kawakawa, seaweeds like karengo and huhu grubs. Foods could be based on oats, blackcurrants, hemp, quinoa, dairy, sheep meats and venison, all of which we grow well and which have a good reputation. We would specialise in infant formulas, sports recovery and repair, the needs of aged people and proteins for breakfast, as Fonterra is already doing. Pyke thinks NZ has the right ingredients to be a world-leading, nutrition-based, beverage supplier. Consumer insights must determine what NZ develops as plant proteins, he said. We would then grow the right foods in the right places with the right motives and not have enforced differentiation between primary industries.

Water use in cropping and mixed farming would be less than with dairying under irrigation. Pyke says NZ grows a huge amount of plant protein already, in ryegrass and lucerne, for example, and runs it through livestock before humans get to eat it. “I am not saying we would use the best red meat cuts (for new products) but all the lesser value protein obtainable through rendering, perhaps.” NZ also has good growing conditions for pulses and grains. Pulses like fava beans, lupins, chick peas and lentils have high protein levels in the 20-40% range. They do have agronomic challenges to raise consistent yields and combat diseases and pests. “Our past work at FAR (the Foundation for Arable Research) was on growing them for animal feeds so we would need to select varieties for their nutritional characteristics.”

Pulses have a great deal going for them: no gluten, low fat, high in good fibre, low glycaemic index, high in iron, zinc, folate and the B vitamins, cholesterolfree, they fix nitrogen and the weeds can be controlled. Grains have lower protein contents – in the 10-15% range – and offer complete proteins that contain the nine amino acids essential in the human diet. Wheat, oats, quinoa, millet, spelt and buckwheat all have their challenges that skilled NZ farmers could overcome. Pyke wants co-operation across scientific disciplines to bring the plant and animal proteins together in what would be uniquely NZ products. Value has to be created throughout the supply chain so that those with the opportunity, skills and knowledge to grow different crops get sufficiently rewarded for doing so. An example is Champion, NZ’s largest flour milling company

I am not saying we would use the best red meat cuts (for new products) but all the lesser value protein obtainable through rendering, perhaps.

owned in Japan, that has returned to processing NZ wheat, especially for the Countdown North Island in-store bakeries. “We have redesigned the value chain to ensure enough buy-in from wheat farmers to view the crop quite differently.” Leftfield is working with a group of like-minded growers to iron out the agronomy, establish the viability of new products and find processors and food manufacturers who want to go in a new direction by collaboration.

After winter grazing

capturing soil nutrients with catch crops

What soil type are you dealing with?

Is your soil dry enough to sow early enough?

Choosing the right crop for your paddock.

For more information and useful resources visit: www.beeflambnz.com/wintergrazing

Opinion

24 FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

EDITORIAL Don’t give critics any ammunition

ARMERS are under greater public scrutiny than ever before. While most accusations pushed by those with environmental or animal welfare agendas are baseless, they resonate with an urban public that has little or no knowledge about farm practices and are increasingly sceptical given the constant flow of criticism being leveled at farming. For a sector under the glare of critical public scrutiny, why then do farmers make it easy for the critics? It was public knowledge activists were scouring Southland and Otago this winter looking for examples of what they consider sloppy management of stock on crops to then brazenly release to mainstream and social media. But that is not the worst part. As we reported last week an aerial inspection by Environment Southland left it less than impressed with winter management practices. So why are calves left lying in the mud? Why aren’t stock back-fenced? Why isn’t portable freshwater provided? Why aren’t stock taken off crops in extreme weather? Farmers might view these as impractical but they are rules and failure to follow them adds to the perception farmers are uncaring and willing to snub their nose at authority. Photography angles and lack of context make it easy to portray a situation as worse than it actually is but the public don’t see that. We rightfully claim farmers are making great strides and efforts to improve their environmental and animal welfare standards but a minority continue to let the industry down. They need to be held to account. We can defend ourselves, create context or try to explain why we do what we do but usually that is in reaction to an event and of no consequence to a millennial in Auckland who only sees farmers abusing animals or the environment for financial gain. We can also question the ethics and motives of activists sneaking around looking for incriminating evidence but, as they have shown previously, these individuals will go to extreme lengths in pursuit of their agenda. We simply can’t give them oxygen.

Neal Wallace

LETTERS

Best to sell Fonterra to China OVER the last few months there has being a lot of talk about what Fonterra has done wrong but not so much about how to fix it and make it the great dairy company it should be. Our family has being involved in dairy farming all our life and has been through many dairy company mergers over the years. We sold out of dairy this season and have gone to beef as part of our succession plan for our parents’ retirement. Our Fonterra shares are worthless and hard to sell because no one wants them. Whatever happens to Fonterra will be too late for us because we want out but for the many other thousands of shareholders Fonterra should be sold to China to persevere any value left in the business.

Its best future is to have Chinese ownership with plenty of new capital to build a great future for our dairy industry and the wider agri sector. We are too small as a country to hold such major assets and our management has got to the point now where options of holding it 100% under New Zealand farmer ownership are near the end. Farmers are working hard to save their own farming businesses so the muchneeded capital Fonterra will need cannot come from the shareholders any more. Fonterra needs outside capital to get it back to the sound dairy company it used to be and the farmers can’t be used as its bank any more. Westland is the start of what will be a Chinese takeover of the dairy industry over the next few years but this will

be a good thing because they need dairy products and we are good farmers who produce good products so if the deal is negotiated well then it will be a win-win for NZ and China. Remember, it’s not China’s fault Fonterra is in this position, it’s the board and shareholders’ fault because this all happened under their watch and now it might be time to accept we failed doing big business around the world and just look after what we are good at and that’s farming and making top dairy products in NZ to export to the world. Matt Muggeridge Palmerston North

Low fertility I WOULD like to respond to your letter to the editor, Are vegans too idle to breed, dated July 15.

As a fellow organic farmer and one who likes to explore data I would like to table perhaps another reason for the falling fertility rates, particularly in the western world and one not necessarily caused by the dietary choices of a rather generalised group of people, though it is certainly related to diet. Several studies have shown the increasing number of environmental contaminants, principally those used in agriculture, such as glyphosate, have been linked to falling rates of fertility giving rise, in particular, to oxidative stress and cell damage, with global fertility rates taking a steep decline since the late 50s, almost halving for westerners over the past 60 years. Continued next page

Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Stephen Bell 06 323 0769 editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 06 323 1561 colin.williscroft@globalhq.co.nz Annette Scott 03 308 4001 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Alan Williams 03 359 3511 alan.williams@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com PUBLISHER Dean Williamson 027 323 9407 dean.williamson@globalhq.co.nz

ADVERTISING Steve McLaren 027 205 1456 Auckland/Northland advertising 09 375 9864 steve.mclaren@globalhq.co.nz Jody Anderson 027 474 6094 Waikato/Bay of Plenty advertising jody.anderson@globalhq.co.nz Donna Hirst 06 323 0739 Lower North Island/international advertising donna.hirst@globalhq.co.nz Sophie Hurley South Island advertising sophie.hurley@globalhq.co.nz

021 605 795

Shirley Howard 06 323 0760 Real Estate advertising shirley.howard@globalhq.co.nz Nigel Ramsden 06 323 0761 Livestock advertising or 027 602 4925 livestock@globalhq.co.nz

Debbie Brown 06 323 0765 Classifieds/Employment advertising classifieds@globalhq.co.nz Andrea Mansfield 027 446 6002 Business Development Manager andrea.mansfield@globalhq.co.nz Steph Holloway 06 323 0142 AgriHQ Commercial Leader steph.holloway@globalhq.co.nz PRODUCTION Lana Kieselbach 06 323 0735 Production Manager 027 739 4295 production@globalhq.co.nz Advertising material adcopy@globalhq.co.nz SUBSCRIPTIONS

0800 85 25 80

ISSN 2463-6002 (Print) ISSN 2463-6010 (Online) Circulation: Delivered free to 78,632 farmers from Monday (Current audited circulation figure)

Best letter each week wins a quality Victorinox Hiker knife

So go on! Stick the knife in WRITE TO The Editor, Farmers Weekly P.O. Box 529, Feilding EMAIL farmers.weekly@globalhq.co.nz • FAX 06 323 7101

LK0096006©

Farmers Weekly is published by GlobalHQ, PO Box 529, Feilding 4740. New Zealand Phone: 0800 85 25 80 Fax: 06 323 7101 Website: www.farmersweekly.co.nz

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Govt creating climate crisis Derek Daniell

EW Zealand has always had poor native biodiversity. What a contrast to Africa with 1150 species of mammals, 68 species of snakes, 431 species of birds and 1279 species of freshwater fish. NZ has one mammal, no snakes, 196 birds (but 48 extinct, 32 during Maori civilisation) and 58 freshwater fish.

Government policy is full of contradictions, double standards and symbolic gestures.

In Africa the waters are always muddied by the large population of hippos. Elephants, estimated at 26 million 200 years ago, have dwindled to 400,000 so there are fewer of them to make the water dirty. But it’s obvious these huge mammals and lots of other species bring nutrients to freshwater habitat and have allowed a proliferation and abundance of species. By contrast, NZ has such clean water that feed supply for fish is very limited. In North America it is common practice to spread fertiliser on fishing lakes to improve plant growth to boost the food chain and promote the growth of fish. In NZ the Fish and Game lobby group has an ongoing campaign

to berate farmers for allowing stock to walk through streams and to fence waterways. Fish and Game is slow to admit the Opuha dam has allowed a better summer flow down the Opuha River, resulting in a twelvefold increase in the trout population. That has to be a win-win for both farming and fishing. The harshest man made impact on our freshwater environment has come from Fish and Game introducing trout, salmon, Canada geese and mallard ducks. But like all lobby groups, sustainability is of utmost importance for the organisation itself, and the people working for it. The global funding for Greenpeace in 2018 was US$650 million. Two other global environmental groups had funding of more than US$400m last year. The key to obtaining that funding is to think up campaigns that leave people in a constant state of anxiety about the future of the world. Given the wealth of these lobby groups it is very difficult to get air time for a common sense, balanced view that takes account of economic and social implications of policy as well as environmental. Government policy is full of contradictions, double standards and symbolic gestures. Contradictions include allowing NZ’s population to swell by 95,000 a year over the past five years with each extra person adding to gas emissions. By contrast, ruminant numbers

The

Pulpit

have declined and the pastoral farming area has shrunk. The Government is also promoting long-distance tourism as a better business than farming despite the risk world governments might decide to impose a heavy tax on air travel, though that is unlikely given the tenfold growth in global air travel since 1995. Double standards include the Queenstown Lakes District Council has had more than 200 transgressions of sewage and storm water spillages with total fines of $62,000 or $310 a time. A dairy farmer will pay up to $100,000 for a single transgression. Has the Auckland City Council had to pay fines for polluting the beaches with raw sewage? Among symbolic gestures banning oil and gas exploration

CLEAR: There are no elephants to muddy the waters in New Zealand.

Continued from previous page Ironically, central African countries have maintained a relative steady fertility rate at nearly four times that of the western, developed nations. Why ironic, because meat consumption rates in central Africa are some of the lowest in the world. Yet, in European and North American countries, where the fertility rates are at their lowest, they consume the highest rates of meat. And in the central African countries where meat consumption rates are beginning to increase, fertility rates are beginning to decline. Countries such as Norway, which consumes large amounts of fish, New Zealand, where we consume some of the highest

rates of meat, and Australia, again a huge consumer of meat, the fertility rates are at some of the lowest levels, 1.56; 1.81 and 1.74 respectively. Anecdotal evidence to suggest that all wwoofers are either vegan or vegetarian doesn’t stack up with me either, I have worked alongside many in my organic farming career and most, if not all, have enjoyed sampling some of our home-grown goods including milk, meat, butter, cheese and fresh fruit and vegetables. And if they were, who are we to challenge their beliefs and personal choices anyway? It is attitudes like this that are going to leave the NZ agricultural industry behind in a cloud of blood-tainted dust as the rest of the world realises the excessive amounts of meat and dairy we consume have far-reaching,

detrimental consequences on our own human health, the health of our country and the health of our planet. Did I mention NZ has one of the highest rates of bowel cancer in the world? I will leave it to you to research that one. T Williams Wellington

Good methane DR HARRY Clark’s articles are again so misleading. He states methane accounts for 43% of New Zealand’s emissions. That is not incorrect but designed to mislead because it is gross emissions he is talking about. We do not pay tax on gross profit or we would go broke. It’s the same with emissions. We should use only net figures, as Parliamentary Commissioner for

STOP IT: Good, food-producing land should not be planted in pines, farmer Derek Daniell says.

has to be a stupid move in a remote country reliant on an oil tanker steaming into the Whangarei refinery every six days. It would make much more sense to be self sufficient. Bicycle lanes have been painted on city streets but no increase in cyclists has resulted. Climate emergency hysteria has been created despite NZ’s primary sector exports rising 19% over the past two years. Allowing wealthy investors from anywhere in the world to buy food-producing farmland, in contravention of the stated intent of the Paris Accord, as a carbon sink then using taxpayers to fund social welfare for those investors is a crazy idea. Has it not struck the idealists

the Environment Simon Upton says. Clark lists the sources of methane all together including from fossil fuel extraction and ruminant animals as if they are the same or have the same effect. That failure to differentiate is totally deceptive. As an example of gross and net emissions, when oil and gas is extracted from under the ground methane is released into the environment as a byproduct. That methane has been locked up for millions of years. Ruminant-produced methane has sourced its carbon from the atmosphere in the grass it eats, to where it is returned. Both forms of methane are exactly the same but one is cumulative and the other is not. That is why ruminant methane, when livestock numbers are

that our food-producing area is shrinking fast and our population is growing by 2% a year and one day we might go hungry? Allowing good food producing land to be planted in pines is a policy that should be abandoned.

Who am I? Wairarapa hill country farmer Derek Daniell is principal of Wairere and is known for his breeding programme producing Romney sheep.

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

constant, creates very little warming and methane from under the ground creates a lot of warming. I have read the Farming Matters website, which also does not explain this basic fact of gross and net emissions. I can only assume it is deliberately left out. Maybe jobs depend on it being left out. Phil Murphy Waipukurau

Letters to the Editor Letters must be no more than 450 words and submitted on the condition The New Zealand Farmers Weekly has the right to, and license third parties to, reproduce in electronic form and communicate these letters. Letters may also be edited for space and legal reasons. Names, addresses and phone numbers must be included. Letters with pen names will generally not be considered for publication.

Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

A cunning plan to pay Spierings From the Ridge

Steve Wyn-Harris

IT WAS in the wind that Fonterra was going to announce some bad news but the scale of what came out last week was shocking. Dairy farmers have every right to be disappointed and angry with their co-operative. Fonterra expects to make a loss for the year just finished of $590 million to $675m. The previous year, the first loss in the company’s history, was $196m. That year shareholders got just a 10c dividend on their shares and this year just gone they get nothing. So much for value add. They’ve seen their share value go from $6.60 at the beginning of 2018 to $3.55 now. This is a massive loss in value – all up, somewhere between $1 billion and $2b. And that loss in value reflects on shareholders’ and suppliers’ own balance sheets and makes conversations with the bankers even more difficult at a tricky time. The loss was brought on by the

writing down of up to $860m of mostly offshore businesses. We’ve seen it time and again where New Zealand companies get to a certain size and run out of ideas. They then incentivise the senior executives to do something really clever so the next big step is to invest offshore and it invariably turns out to be a very bad idea. Our farming co-operatives have not been covering themselves in glory of late. I was a long-time member of the Ravensdown co-op and when it started talking about heading off to South Australia for an investment that was going to add value, I remonstrated. Of course, they didn’t listen to me, so I changed co-ops and inevitably the investment was exited after disappointing performances putting pressure on the company’s finances. We saw Farmlands and CRT do a no-brainer merger but then fail to execute it properly and post a decent loss within a few years. They are only now just getting it together. Of course, Westland made such a hash of running it own business farmers no longer even own it. PGG Wrightson isn’t a cooperative but has just posted a big slide in its annual earnings. It has had to sell off the family silver, the seed division, to keep chugging along.

It blames lowering spending by farmers but last time I checked sheep and beef farmers are in the best and longest run of good prices in my farming career and dairy payouts have been pretty good. Imagine how good the commission cheque has been with current livestock values. As an aside, while mentioning PGW, when Agria took a controlling interest in 2011 I had a look at that company and wrote a piece saying it looked dodgy. I had a call from a lawyer to pull my head in, which I did because what would I know? Also, I’m very easy to intimidate when I might lose the farm. Turns out Agria was later found guilty in the United States of fraudulent accounting and fined here for breaching the good character test. It then had to cede its controlling interest in PGW but still picked up $104m on the seeds division sale, which is what attracted it to the company in the first place. If all these farming support businesses are having problems through the longest commodity boom in memory how are they going to fare when things go off the boil? Back to Fonterra. To rub salt into the wounds of long-suffering shareholders former chief executive Theo Spierings has his hand out for the final chunk of

DO THIS: Former Fonterra chief executive Theo Spierings bonus should be paid with 10 cheques given to farmers he has to visit to get his hands on the loot.

his so-called bonus payment. Not content with the $40m in salary and bonuses over his sevenyear reign he’s back for one more cheque. He’s getting paid out for his bonus over his, at the time, much-lauded V3 strategy – driving more volume into higher value at velocity. It sounds like a strategy dreamed up by a communications company and given the way it worked out it probably was. We won’t know how much until the annual report is released in September but I’m guessing there won’t be much change out of a million. It’s obscene and if the man has any integrity at all he will decline it.

But I bet he doesn’t. Here’s my suggestion. The amount might be set in stone in his contract but the method of payment probably isn’t. I’d like to see the board tell Spierings the sum has been split into 10 parts and lodged with 10 different shareholders. If he wants his money he will need to visit the farmers to collect his cheques. I’m sure they will have a few things to tell him before handing over the dosh.

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

Seaweed can help climate change Alternative View

Alan Emerson

I’VE been following the progress of the Zero Carbon Bill through Parliament. As I’ve written, my problem with the legislation is that it won’t work but it’s also going to cost the country plenty. It started with the dairy industry claiming the law sets farmers up to fail with the methane target. That position was reinforced by Forest and Bird, which claimed no targets will be reached without significant land use change. The Government estimated the cost to farmers at $2500, a figure DairyNZ disputes. For dairy farmers fortunate enough to stay in business it estimates the cost at $37,000 annually or half a dairy farmer’s drawings. The problem is the extra costs will inevitably lead to a further reduction in dairy with the

inevitable cost to the economy. And farmers hit with increased costs are going to retrench and employ fewer people. That’s a further cost to the provinces. Treasury’s economic impact report puts the annual cost at $5 billion to $12b a year. Like all parts of the legislation it’s not very scientific and there’s one hell of a difference between $5b and $12b. What’s important is the Statistics Department put the cost to each of New Zealand’s 1,793,000 households at an incredible $3000 to $7000 a year for each and every year until 2050. Over those 31 years the total household cost is $93,000 at the lower figure and $217,000 at the top. You can buy a house in Masterton for $200,000. It actually gets worse with Associate Transport Minister Julie Anne Genter saying she is going to tax big vehicles and offer rebates on little ones. The figures are an increase of upwards of $2000 on a ute, a Prius will be $1700 cheaper and a used Swift gets an $1100 reduction. What a stupid, city-centric policy. Take a farm worker out our way. A Prius is no use at all and

neither is a Swift in my view. A ute has four-wheel-drive, which a farm worker on our type of country needs. He’s going to get whacked another $2000 on top of the $3000 to $7000 annually.

Farmers hit with increased costs are going to retrench and employ fewer people.

On the other side of the argument Australian documentary maker Damon Gameau has produced a documentary entitled 2040 where he outlines the options for mitigating climate change. I had little argument with his approach, especially his statement the environment movement is destructive in the demands it is making. People are disengaging from the climate debate because it is too hard and his documentary is an exercise in fact-based streaming. He claims there are great reasons for optimism.

Part of his answer involves seaweed. Seaweed is the fastest growing organism in the world, growing half a metre a day. It absorbs a lot of carbon and can be easily farmed. You can eat it, cattle can eat it and it provides a good breeding ground for fish. There are seaweed farms in the United States, Bali and Singapore. I’m unaware of any discussion on seaweed as regards climate change in NZ. He also added if you use cattle the right way they can sequester carbon. As I’ve said, the guy had scientific arguments to back up his claims. It was all very interesting. That begs the question why we’re wearing a hair shirt by developing legislation that won’t work, isn’t based on modern science and is going to cost us all and considerably so. Farming seaweed would be a lot better than taking 1400 hectares of good farmland for trees at a cost of $22.7 million as happened between January and May this year. So, there are options available for climate change. It’s just that we’re ignoring them.

I suppose what offends me most is the cost the elite in Wellington is foisting on ordinary Kiwis. With the increased transport costs and the extra costs for farmers our food will be more expensive. Looking at the best possible scenario a family in central Auckland will be $60 a week worse off and that is crippling if you’re on the breadline. A worker in the provinces will be treated even more harshly. This has all been decreed by Cabinet ministers earning $300,000, six times the average wage and don’t forget their massive tax-free perks. And ministers have chauffeurdriven, gas-guzzling limos on call and fly business class with the extra carbon that produces. They then effectively tax ordinary Kiwis with legislation that won’t work and is based on old science. Talk about casting pearls before swine and taking food from the mouths of babes.

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

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Choking on cocktail of challenges Meaty Matters

Allan Barber

IN CONTRAST to its positive social agenda to improve the average person’s lot by lifting the minimum wage, increasing teachers’ pay rates and trying to increase home ownership, this Government seems to have gone missing in action with respect to the farming sector. Apart from Primary Industries Minister Damien O’Connor’s rather lonely efforts as a cheerleader for agriculture other Government ministers only pop their heads above the parapet when there’s some good environmental news or forestry initiative to crow about or a new and scientifically flawed methane reduction target to ask farmers to meet. Agriculture contributes about 80% of merchandise exports and employs 15% of the workforce, which underlines how critical the sector is to the economy. Yet, to observe the Government’s attitude, one would think agriculture’s contribution to the economy is relatively insignificant or easy to replace. When it comes to addressing climate change and formulating the Carbon Zero strategy, agricultural production, at least red meat and dairy, appears to be an inconvenience that must be discouraged so New Zealand can meet a set of unachievable targets. These targets are being negotiated against a backdrop of dire predictions about the catastrophic effect of global temperature and sea level increase the world’s economies should have addressed 50 years ago to avoid disaster. So, in spite of present trading

conditions across agriculture as a whole forecast to generate the highest-ever annual export sales of $45.7 billion, many farmers feel nervous, threatened and undervalued. There are several reasons for this, not necessarily the fault of farmers or the Government, but the latter has a responsibility to encourage and provide leadership where I believe it falls a long way short. The Government can claim it is responding appropriately to the challenges the country faces, including climate change, immigration settings, foreign investment, health and safety, environmental issues, water quality and regional development. One of the problems posed by the coalition Government is the sharing of portfolios between three parties, which leads to individual biases being reflected in various policies. The Greens dominate the environmental space while New Zealand First drives regional development as well as exerting pressure on immigration and foreign investment. When significant on-farm cost increases and bank pressure, particularly but not exclusively on dairy farmers, are added to the mix, there is a cocktail of challenges facing farmers. On top of all this is the worry over the sustainability of trading conditions with Trump’s ratcheting up of his trade war with China, which some commentators see as a preamble to a trade war with the European Union. On top of the Brexit saga, it could cause serious disruption to agricultural trade with all three of our most important markets. A major cause of the loss of farmer confidence is the largely urban public’s attitude to farming, which, admittedly, might be the view of only a vocal minority but appears to carry more weight with the Government than logical arguments based on science. The Interim Climate Change Committee’s proposals for

CONTRADICTION The Government is busy negotiating free-trade agreements while actively discouraging the sector best placed to take advantage of them.

methane reduction by 24-47% by 2050 are unnecessary and unachievable without massive loss of production, which would be economically unsustainable.

Many farmers feel nervous, threatened and undervalued.

The Primary Sector Climate Change Commitment is a practical alternative the Government should evaluate and respond to positively instead of hiding behind its incorrect assumptions that fly in the face of scientific facts. Federated Farmers vicepresident Andrew Hoggard emphasises the importance of correctly set targets for greenhouse gas reduction and the need for incentives to invest in finding scientific and technological solutions to achieve them. B+LNZ’s Jeremy Baker says farmers are getting unclear signals about whether they will

be rewarded for bush blocks on their farms while all the incentives are directed at carbon farming speculation. Both Hoggard and Baker see carbon speculation as a greater problem for sheep and beef than the Billion Trees programme because of the more permissive requirements for overseas forestry investment as opposed to land purchase for pastoral use. They are also concerned by the unintended consequences of providing carbon offsets that enable corporates like Air NZ to convert pastoral land to forestry and earn the incentives from pine trees, which they can leave in the ground. What an incredible waste of land and resources. Baker points to the massive carbon sequestration difference between exotics and natives, where natives absorb carbon for 300 years, albeit at a slower rate. The soil under natives also produces an infinitely better carbon sink but exotics are being rewarded while farmers get no recognition for native bush. This example is typical of a Government that appears not

to understand the contradictory impact of a number of its policies. For instance, it is busy negotiating free-trade agreements while actively discouraging the sector best placed to take advantage of them. The Just Transitions Conference earlier this year to consider how NZ can transition to a lowemissions economy invited James Cameron, arch vegan and antilivestock farmer, as its keynote speaker. It’s about time the Government woke up and realised just how much progress the sector has made on improving water quality, land erosion and reducing its environmental footprint before it chucks the baby out with the climate change bathwater. It needs to support NZ agriculture to encourage progress towards feeding the world’s growing population sustainably.

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

Need for regenerative farming is urgent Sue Edmonds DOES it seem as if things are moving faster and faster and our need to change our farming systems looks more drastic every day? Well, there are already different systems around and perhaps more farmers than you think are giving them a go. We’ve been coddled along for more than a decade now with urgings for more cows, more land, more fertiliser, more overdraft and indebtedness and a more complex lifestyle as a result. The more I’ve read about regenerative farming, the more I believe it could well be the answer to a lot of farmers’ prayers and they might actually make money doing it. I first met mycorrhizae in the 1960s helping my new husband

do the lab work for his doctorate on those little yellow critters living on pine roots and taking up all the nitrogen those trees need.

We haven’t got time for years of argybargy. And in the last 18 years I’ve read and read and learned a heap about farming, soil, climate change, new farm technologies and how to look after stock. The international reports I’ve read of late have all urged the need for action, speed and change of thinking. Finally, it’s having an effect here, too, with the introduction of the Climate Change Response (Zero Carbon) Amendment Bill, which

will at last put some levels, dates and defined requirements in a statute future governments will have to comply with. And, if some wishful thinkers imagine we could ignore it, well the most recent extinction paper from the Intergovernmental Science Policy Platform on Biodiversity and Ecosystem Services puts the future fairly clearly. There has been a lot of gossip lately on how, whatever the Government comes up with, there will be a lot of farmers out of business. But it doesn’t have to be that way. When the American Gabe Brown started work on changing to regenerative farming he was on the brink of giving up farming after hail and storms wiped out his crops two years in a row while

leaving his immediate neighbours unscathed. His 2018 book Dirt to Soil explains what he did, both right and wrong, in subsequent years, But it worked. And our farmers, both arable and animal, can, with a change in thinking, regenerate that all important soil life and get back to growing food that’s worth eating, lower their workload, start making profits and become cheerful yolos (you only live oncers). Microbiology is a much newer science than most people think. My next article will reveal how those early thinkers of the second half of the 20th century made their discoveries and initially were told they couldn’t possibly be right. Some things never change. But this time we haven’t got time for years of argy-bargy. We have to change things now.

SAVED: American farmer Gabe Brown went from near ruin to success using regenerative farming.

28 FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

On Farm Story

Turning meat into money The McFadzean name is well known to farmers looking for top-quality weaners but the family is now turning its attention to producing affordable yearling bulls based on top-of-the-line genetics, as Colin Williscroft discovered.

OHNIE McFadzean is helping take a wellrespected family business to the next level. The son of Wairarapa farming stalwart John McFadzean, who has been achieving top prices at the Masterton weaner fair for about 40 years, Johnie wants to build on his father’s work that has attracted weaner prices that stack up well nationally, often the top in the country, illustrating a successful breeding programme. The idea now is to use technology like intramuscular scanning to build on that impressive breeding history, making quality bulls that will improve the productivity of commercial herds at an affordable price.

Dad’s always loved cattle and taken a real interest in the genetic side of it. I just followed suit. Johnie McFadzean Farmer Last year McFadzean Cattle Company held its inaugural yearling bull sale and it recently launched a newsletter, providing a quick update on the 2018-19 season ahead of the second sale, in September. Johnie puts his interest in cattle genetics down to his father. “Dad’s always loved cattle and taken a real interest in the genetics side of it. I just followed suit.” John has been breeding stock in Wairarapa for more than 40 years, first at the inland Glenbrae Station then on the coastal Glenburn Station he bought in 2007.

Early in his farming career John looked at cattle performance data from Clay University in the United States where different breeds were compared over a range of attributes. The two top performing breeds were Simmental and Angus, particularly in relation to New Zealand grass-fed conditions. Armed with that information he bought three Simmental bulls and began 40 years of crossbreeding, something Johnie has learned from and is now adding to in his own way. Growing up on the farm with his dad’s interests, Johnie said he was always going to like cattle. After a two-year cadetship at Smedley in 2002-03 he went shepherding for about five years in the South Island. First he worked for Willie and Sarah Ensor at Rakaia Gorge, an experience that has stuck with him. “I really loved it down there. They just treated me as part of the family.” From there he went to Mendip Hills Station in North Canterbury before a job at South Canterbury’s Blue Cliffs Station. Then, after spending about 15 months overseas, it was time to go back to Wairarapa. Today he and his wife Laura run Glenbrae Station, originally a 360ha property near Carterton his father bought in 1978. These days it’s closer to 2000ha and while Johnie is responsible for it, his father and brother Lachie run Glenburn Station with the help of two shepherds. The two properties complement each other. The family also runs a deer farm at Ngahere, roughly on a direct line between the two sheep and beef farms, which provides the overall business with a bit of diversity. The 340 hinds and roughly the same number of weaners are low maintenance

FOCUS: Johnie McFadzean is looking to the future as he builds on his father John’s impressive stock breeding history. Photos: Damon Hyland

though timing on a deer farm is everything. However, the bread and butter of the business has always been sheep and beef and the way that side of the operation is run is always evolving, particularly with beef. “We try not to sit still too much.” Over the years, as the farm grew in size so did the number of cows, with today’s herd numbering

around 1100 high-quality Simmental-Angus. It also carries about 11,000 ewes. To build up the cattle herd’s quality Johnie, Lachie and their brother Corey, who shepherds north of Masterton at Wairere, have, over the years, joined their father travelling around the country sourcing top quality Angus and Simmental bulls. They invested heavily in top

QUALITY: The Meat Maker bulls come from top-of-the-line genetics.

sire bulls, which often means competing with stud breeders to get the ones they want. While building up the herd years ago capital stock cows of varying breeds were bought. Nothing compared with AngusSimmental and their offspring, many with only a small percentage of either breed. Both breeds are strong maternally and both marble while there are other complementary traits with Angus cattle generally more medium-framed and Simmentals stronger muscled, so they see the combination as perfect. Cows and replacements are selected on performance, not colour or pedigree. At Glenbrae heifers and second calvers have always been mated to Angus bulls, with mixed age cows mated to Simmental and Angus bulls. Replacements are selected on their merits, regardless of whether they are from heifers or mixed aged cows. On most NZ hill country farms cows come under pressure at times from seasonal conditions but they have to thrive and rear

On Farm Story

good calves regardless of the season. The McFadzeans have found Simmental or even first-cross Simmental-Angus cows take too much to maintain on many farms but cows with a lesser proportion of Simmental are hardy and very productive. Cattle finishers have bought Glenbrae weaners for many years with outstanding results, the farm’s top pen at the March sale of August-born calves weighed an average of 404kg. Farmers have asked them to keep bulls over the years. The bulls have always done well and lifted the productivity in those herds. To Johnie, last year’s inaugural sale of yearling bulls they call McFadzean Meat Makers showed they are on the right track, proof that what they offer is meeting the market. All 29 bulls sold, with an average price of $5553 and a top of $6600. They weighed an average of 600kg on sale day and most went into breeding herds, with only three going to farmers who run terminal sire systems. Johnie was more than happy with that sale. “I was blown away,” he said, both with the initial interest and the sale itself. He has since received very positive reports from happy buyers, with the bulls achieving very good in-calf rates with few injuries. Though last year’s sale was new ground for the McFadzeans they are not re-inventing the wheel, instead emulating what has proved to be a successful model for the Wairarapa Romney Improvement Group and others. Many top-producing flocks throughout the country have an influence of another breed in their make-up. So McFadzean Meat Makers are selected from a large number of bulls with only the best making the grade. Less than 10% of calves are selected. Breeding is all about the numbers and to be successful and be able to select a top line of even bulls a large pool of calves is needed. The goal is to sell mediumframed, well-muscled bulls with a high genetic background to commercial farmers at an affordable price.

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Figures are important but if that’s all you do and your focus is on the hill country then you’ll come a guttser. Johnie McFadzean Farmer

FAMILY AFFAIR: Laura and Johnie McFadzean with sons, from left, George, Jack, Harry and Angus. All bulls sold are supported by information that contains weaning weights, yearling weights, daily weight gain, eye muscle area, rib and rump fat percentages, intramuscular scans and fertility tests. Gathering that information and then knowing how best to use it is a big challenge but one he’s pleased to have met because providing that data will only make the business stronger, with many farmers these days using it. Intramuscular fat has come to prominence in recent years and is now another trait to look at. The long-term goal is to create a database of McFadzean Meat Maker bulls that rivals the Angus and Simmental equivalents.

It will be based on actuals, beginning with mother and sire with the plan to eventually get back to grand dams. However, the data is only part of the plan and Johnie said it’s important not to lose sight of the whole picture. Bulls must have a strong constitution and correct shape with meat in the right places. Ultimately, the bulls must sire top females, the foundation of any productive herd. “You can’t ignore constitution. You’ve got to get them in-calf, make sure they calve and then get them out there and in-calf again. “The figures are important but if that’s all you do and your focus

is on the hill country then you’ll come a gutser.” Having had that first sale there’s now a line in the sand that future sales can be compared to. Keeping the bulls for longer has changed the way Johnie looks at them. He enjoys selling bulls as yearlings rather than weaners. “It’s nice to see them grow,” he said, adding that when he sends stock to weaner fairs he misses that opportunity. Now he mentally compares them to what they look like compared to last year’s mob while also looking for faults and what can be done better to improve future sale offerings. We aim to supply information

that has a positive effect on increasing the productivity of commercial herds. The actuals are as good as they can get. Weight information is taken as close to sale day as possible while weight gain is taken from weaning onwards. Calves are born on the hills so actual birth weights are not possible. The sale bulls are a mix of threequarters Angus and a quarter Simmental and three-quarter Simmental and a quarter Angus. On harder or drier conditions the three-quarters Angus bulls have a positive effect on calf size, milk production and muscling without being detrimental to constitution while the threequarters Simmentals will have a substantial effect on calf size, growth and muscling but if replacements are kept the cows will be a little bigger and heavier. They decided to call the bulls McFadzean Meat Makers because more prime meat is what they have been breeding for. “What we are offering is bulls with exceptional genetic backgrounds, which will have a very positive effect in hill country herds while still maintaining those very important maternal traits.” They also have very good temperaments. Johnie says the potential is there to supply a lot of bulls to other farmers. “That would be really exciting.” This year’s sale bulls have grown well, with an average daily weight gain of about 1.35kg from April to August. They are likely to average 600kg or more on sale day. This year’s sale is on September 12 at 2pm at 216 Wiltons Road, Carterton. >> Video link: bit.ly/OFSmcfadzeans

PULLING OUT ALL THE

Bayleys pulls out all the stops to find the right buyer for your rural property. The spring 2019 edition of Bayleys’ Country magazine will see all systems GO for sellers of farm, specialty and lifestyle properties around New Zealand. For 20 years, Country has sent a clear signal to active and passive buyers – nationwide and beyond – that the rural and lifestyle property market is laden with opportunity. A multi-channelled Country campaign, with its combination of printed and digital promotion, brings more buyer eyes to your rural asset and the Bayleys’ team has proven strategies to set the sales wheels in motion. That’s why Bayleys is New Zealand’s number one rural brand.

Not easy being green

FEATURING

Pressure is on for more farmland to be put into trees, but there is a cost to going green.

Pest patrol and control

Dealing to predators so lifestyle blocks and tracts of native bush can survive and thrive.

FARM, SPECIALTY AND LIFESTYLE PROPERTIES FOR SALE ISSUE 1 – 2019

Talk to your local Bayleys office today about a cost-effective Country campaign – the spring edition is in the works and if you’re quick off the mark, you’ll get pole position.

Bayleys will pull out all the stops to get an altogether better result – so, let’s GO!

RURAL REAL ESTATE BRAND

To learn more about Country magazine, call 0800 BAYLEYS or visit bayleys.co.nz/country. LICENSED UNDER THE REA ACT 2008

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

Residential / Commercial / Rural / Property Services

FARMERS WEEKLY – August 19, 2019

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

T RA NSF O RM I N G R E A L E S TAT E INTO R E A L A DVA NTAGE FOR SALE WAIHUE QUARRY MAMARANUI, KAIPARA

SMALL-SCALE OPERATIONAL QUARRY PLANT AND MACHINERY INCLUDED This small-scale operational blue and brown metal quarry located in the Kaipara district is offered for sale on a ‘walk in, walk out basis’, with significant plant and machinery included in the sale. A perfect opportunity for a passive investor, quarry operator or contractor to take control of this operational asset and continue to supply the current client base of local farmers, first rotation foresters and roading contractors. Contact CBRE today to obtain a detailed Information Memorandum and access to the Dataroom. + + + +

15.1710ha freehold land title Significant resource remaining Resource consent until 2026 Plant and machinery included

ASKING PRICE $1,000,000 + GST (if any)

JEREMY KEATING 021 461 210

www.cbre.co.nz/216334Q48 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

THE DESTINATION FOR RURAL REAL ESTATE

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

farmersweekly.co.nz/realestate

Boundary lines are indicative only

Pukekohe/Patumahoe 131 Kingseat Road Chicken broiler farm - Good income Chicken meat farming is a proven business model that offers: a rural lifestyle, good income opportunities and a modest work week, so that you can enjoy a balanced lifestyle. Located near Patumahoe, in rural south Auckland, this 6.975ha lifestyle farm features a 220sqm approx. brick and tile home, land and an excellent income from three, well maintained, chicken rearing sheds with a supply contract to Brinks NZ Limited. Training and support will be provided for the new owners. Property information memorandum (PIM) and annual turn over available on request.

bayleys.co.nz/1970932

Tender (unless sold prior) Closing 5pm, Wed 28 Aug 2019 8 Massey Ave, Pukekohe View by appointment Benjamin Jameson 021 568 800 ben.jameson@bayleys.co.nz BAYLEYS REAL ESTATE LTD, PUKEKOHE, LICENSED UNDER THE REA ACT 2008

Agri Job Board

Noticeboard LAMB DOCKING / TAILING CHUTE

We are looking for an experienced Shepherd General to join our team. We are a deer only farm located in the Rerewhakaaitu, between Murupara and Rotorua.

A unique opportunity has arisen on an intensive bull finishing farm located mid-way between Matamata and Cambridge. The farm is 180ha effecting finishing up to 450 bulls a year, and is run using a cell grazing system with many small mobs of bulls. 100kg calves are purchased in the spring and are killed from 18 months of age before their second winter.

With automatic release and spray system. www.vetmarker.co.nz 0800 DOCKER (362 537)

EARMARKERS

On occasion you will be required to work on two other Company farms to help out and cover periods of leave. No dogs are required.

• Someone with an interest in intensive bull farming systems and bull management • A self-starter with the ability to work independently • Attention to detail and ability to problem solve • A passion for farming, stock welfare and pasture management • Preferably practical farming experience • Good dog would be beneficial but not essential • Interested in development work

Success in this role may lead to a management position, in time. A 3 bedroom house is available, so could suit a couple or family.

Please apply with your CV and cover letter to: hra@crusadermeats.co.nz

HOOF TRIMMER

(All volumes – big or small)

Applicants must have NZ residency or valid NZ work visa.

Contact Lance McNicholas PHONE 027 294 7504 EMAIL mcnicholas@xtra.co.nz

BIRDSCARER

For Farming & Shearing Clothing and Accessories

We purchase standing trees, land and

LK0098977©

• An environment and opportunity for the successful candidate to learn, grow and take more responsibility within the role and farm operation • A warm 3-bedroom house with phone and internet provided • An opportunity to be a part of a very high performing system • A favourable location only 20 minutes to Matamata and Cambridge, 40 minutes to Tauranga and Hamilton, 1 hour to Rotorua • Location allows partner to work off farm and very good schooling for children. • Diverse range of work

(FROM PRIVATE BLOCKS)

DE HORNER

WANTED FORESTRY/ WOODLOTS

For more information please contact Mike Ramsey on 07 878 7077

We Offer

PURCHASING FERAL DEER Our aerial operation can selectively cull your feral deer population and pay a royalty.

We are looking for an enthusiastic and motivated person, preferably with previous experience working with deer. Ideally, you will have tractor, fencing and chainsaw experience.

We require

LK0094587©

VETMARKER

SHEPHERD GENERAL

Stockperson General

trees or harvest and market on your behalf. Working the Waikato area 2019/2020. health and safety, resource consent application and management.

Applications close Friday 6th September 2019

AgriHQ market analyst We have a vacancy in our AgriHQ team

We are looking for a motivated person with attention to detail and excellent stockmanship skills. Stock and feed management, both breeding and finishing, are key aspects of this role.

Fuelcon Farm and Trailer Tanks by:

For more information call Clem on 027 410 0264 or send CV to: wbstockco@gmail.com

of six analysts to produce in-demand red meat, livestock and forestry sector

FROM THIS

“Your Fuel Storage Solutions”

Your week will be spent creating quality

Nominate a school on booking and we’ll donate $100 on payment of your account.

0800 383 5266 www.petrotec.co.nz/ products

Applications close 25 August 2019

reports and analysis.

Coming back into the Manawatu area.

✁

You will be working alongside our team

SCOTTY’S CONTRACTORS

0800 436 566

STEEL TANK SPECIALISTS

Check out our website: www.squires.co.nz Or phone Shane: 06 388 1201

Under Woolshed/Covered Yards Cleaning Specialist www.underthewoolshed.kiwi

NZ’s finest BioGro certified Mg fertiliser For a delivered price call ....

LK0098956©

business of farming.

no obligation appraisal

The block manager position is an operational role with responsibility for the day-to-day running of the farm, working towards the goals of the business as a whole.

There are options available around accommodation and the remuneration package will be tailored to the successful applicant.

genuine interest and knowledge of the

aaron@westtreenz.co.nz for a

DOLOMITE

A capable team of 4-6 dogs will be required.

for a smart-thinking candidate with a

Aaron West 027 562 3832

LK0098276©

A competitive pay will be offered to the right person.

Call or email

Brooklands winters around 7500 sheep and cattle stock units (comprised of terminal mated ewes, trade cattle and lambs) and is run as a semi intensive breeding/finishing operation. Brooklands operates in conjunction with two other farms where replacements and trade stock are sourced. During busy times we share labour between the blocks and everyone works together to get the job done so enjoying a team environment is important.

New Zealand’s Number 1 service provider for under woolshed and covered yard cleaning since 2004

JOBS BOARD

the value chain. You will build professional relationships from a wide range of industry sources.

Analyst

GlobalHQ is an agile multi-media

Expression of Interest

enterprise with plenty of scope to grow,

Grower Liaison Officer

delivering exciting opportunities for the

Check out our website and let results speak for themselves www.aotearoastockman.com

Ph: 027 959 4166

Manager

This position would ideally be based in our Feilding office, although location

Shepherd

and hours are open for discussion.

Shepherd / General

To register your interest and request a

Stockperson

job description, please email:

aotearoastockman@gmail.com maiexperiencejohnnygray

Working alongside Crusader Meats

FO SALR E

Various opportunities

steph.holloway@globalhq.co.nz Applications close: August 23, 2019

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

SELLING

SOMETHING?

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

LK0096815©

*conditions apply LK0098949©

JOHNNY

Specialists in mustering Wild Goats, Cattle, Horses and Sheep across New Zealand

Horizons Regional Council

right candidate.

NUTRITION FROM THE SEA

LK0098950©

primary sector business at all levels of

TO THAT

Phone Scott Newman Freephone 0800 2SCOTTY (0800 27 26 88) Mobile 027 26 26 27 2

farmersweeklyjobs.co.nz

analysis and commentary relied on by

3-layer over-trouser

Manufactured to the highest standards, Squire’s clothing & accessories stand the test of time.

GUARANTEED PAYMENTS

LK0098228©

LK0098925©

If you are fit, energetic and have a clean drug record then send us a covering letter and CV with two references to gjtrower@farmside.co.nz

3-layer jacket

✁

Brooklands Station is a 710ha hill country property located at Puketapu, only 10 minutes from Napier/Taradale.

Vest oilskin

PH DEBBIE 0800 85 25 80

LK0098874©

All paper work is done for you around

LK0098923©

Block Manager

WWW.BIOMARINUS.CO.NZ

Noticeboard FARM MAPPING

ANIMAL HANDLING

ATTENTION FARMERS

DOGS FOR SALE

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

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

FOR SALE, HUNTAWAY, 15 months, keen to work, $800. Phone 06 863 9815. HEADING DOG, 15 months. bt&w. Needs work experience. Fixed commands. $1400. HEADING pups, two dogs and four bitches. Medium eye. Friendly, sheep or cattle. Not hard. Six weeks. $300. Phone 07 543 3422. Tauranga.

CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80 to book.

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

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

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

CALF TRAILER MATS SOFT, DURABLE, FREE draining rubber mats. Easy to clean. Call to order on 0800 686 287 – www. numat.co.nz

POWER CABLE We could save you hundreds of $$

HOMES FARM SHEDS SUBDIVISIONS PUMPS

GOATS WANTED

$500-$2500 CLEARANCE sale! Numerous dogs at or below cost! 30 day trial. Ends August 23rd. Deliver North Island 24/8/19. South Island 25/8/19 www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

DOGS WANTED

GOATS. 40 YEARS experience mustering feral cattle and feral goats anywhere in NZ. 50% owner (no costs). 50% musterer (all costs). Phone Kerry Coulter 027 494 4194.

12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. NORTH ISLAND BUYING trip 24/8/19. South Island buying trip 25/8/19. No one buys or pays more! 07 315 5553. Mike Hughes.

WANTED

LK0098189©

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

FOCUS ON YOUR strengths with a farm map showing paddock sizes. Contact us for a free quote at farmmapping.co.nz or call us on 0800 433 855. FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80 to book.

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.

FORESTRY

Prices include delivery to your door!

Livestock

NATIVE FOREST FOR MILLING also Macrocarpa and Red Gum, New Zealand wide. We can arrange permits and plans. Also after milled timber to purchase. NEW ZEALAND NATIVE TIMBER SUPPLIERS (WGTN) LIMITED 04 293 2097 Richard.

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

LEASE LAND AVAILABLE 300 HECTARES, sheep and cattle, North Canterbury coast. Phone 03 310 6305.

LIVESTOCK FOR SALE

SITUATIONS VACANT

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. 60+ R1 RED DEVON bulls for sale. TB tested, and 5-in1 and 7-in-1 treatments. BVD tested negative. All bulls raised on hill country. Good temperament,Good growth rate. Easy calving. $1950 + GST. Call John Cameron 027 644 1143. HEREFORD BULLS, purebred yearlings. BDV negative and vaccinated. Phone 027 4944 262.

C L AY T O N - G R E E N E & Welch Shearing Ltd. Looking for experienced shearers for the 2019/2020 main shear. Job starts early November to the end of January. Need to be a clean shearer who averages 300 a day. Full clean drivers license a must. Your job will include driving vans to work and also ganging responsibilities. Must get on with others. Contact Emily Welch 09 233 3104 Emilywelch648@gmail. com

MANUKA SITES WANTED CENTRAL NORTH ISLAND. Whanganui, Taranaki, Wairarapa. Excellent site rental paid on quality honey. We are looking for long term relationships. We are experienced and honest. Contact 027 372 0842. Email: zerbywerby@ gmail.com

PROPERTY WANTED FARM SOLD. Require a hundred hectares or more. Distance from town and a bit rough ok. Prefer NI. Up to $850,000. Phone 07 876 7440. HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654.

RELIEF MILKER. Position available for experienced milker. CASUAL weekend and some weekday milkings, 5 minutes from Rangiora, 200 cows. 24 ASHB. NOW until May. Drive in position. Phone/text 021 185 6691.

STOCK FEED HAY 12 EQUIVALENT squares $70. STRAW 12 equivalent squares $55. BALEAGE at $80. Unit loads available. Phone 021 455 787.

TRACTOR PARTS JD 6510, 6420, 6430, 6434, dismantling Andiquiparts. Phone 027 524 3356.

SELLING SOMETHING? Advertise in Farmers Weekly

ANGUS

YEARLING BULL & HEIFER SALE

Late January delivery 2020

FRIESIAN HEIFERS 18 Born In Calf – $1550 19 Born Autumn – $1100 North Island Luke McBride 027 304 0533 Wayne Doran 027 493 8957 Harry Van De Ven 027 486 9866 South Island Richard Harley 021 765 430 Greg Collins 027 481 9772

LIVESTOCK ADVERTISING Have you got a bull sale coming up? Advertise in Farmers Weekly

Phone Debbie Brown 0800 85 25 80

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

Livestock

RANUI

EXPORT WANTED

PARADISE VALLEY MURRAY GREYS

12 noon Tuesday, 10th September, 2019 Karamu, 662 Rangitatau East Rd, Wanganui

YEARLING BULL & HEIFER SALE

ON OFFER: 30 yearling bulls • 35 yearling heifers

12 noon Tuesday, September 25, 2007

Karamu, 662 Rangitatau East Rd, Wanganui ENQUIRIES

TO: Lindsay Johnstone 027 445 3211 On offer: 25 yearling bulls Lin Johnstone 027 445 3213

30 yearling heifers, which will be sold in lots

 Vet inspected  Quiet temperament

Ryan Shannon 027 565 0979

INQUIRIES TO: Lin Johnstone Lindsay Johnstone 06 342 9833 06 342 9795 W & K AGENTS Blair Robinson Don Newland 027 491 9974 027 242 4878

FROM HERE...

LK0098773©

PGG WRIGHTSON AGENTS:

 All cattle BVD & EBL tested Callum Stewart 027 280 2688  All cattle electric fence trained Ken Roberts 027 591 8042  TB status C10

Phone Mike Phillips on 0274 045 943 to secure your Murray Grey bull team for this seasons mating.

THIS SEASON’S CROP FIRST LIGHT WAGYU IS QUIETLY GROWING IN LINE WITH DEMAND FROM OUR DISCERNING NEW ZEALAND AND INTERNATIONAL CUSTOMERS.

THIS YEAR WE HAVE A LIMITED RELEASE OF HEALTHY, WAGYU DAIRY CALVES AVAILABLE TO PURCHASE.

• • • • •

90kg+ calves to purchase Proven sustainable premium returns Guaranteed buy-back of finished cattle Producer group of NZ’s elite cattle farmers Bred and reared under strict bio-security protocols

ANTIBIOTICS OR ADDED HORMONES EVER

Talk to us - 0800 4 Wagyu (0800 492 498) livestock@firstlight.farm www.firstlight.farm

...TO HERE

LK0098859©

classifieds@globalhq.co.nz

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

Livestock

FARMERS WEEKLY – August 19, 2019

Stokman Angus Yearling Bull and Heifer Sale 95 Registered Bulls 60 Commercial Angus Heifers

WEANER FRIESIAN BULLS

Wednesday 18 September 2019

Offering these weight ranges, on a per kilogram basis: 70, 80, 90, and 100kg.

1708 Te Kopia Road Rotorua - 12.30 p.m.

Your Angus Bull Source NZ Breed Average EBV’s on Stokman Sale Bulls Average Calving Ease

+2.1

+0.2

Birth Weight

+2.9

+4.3

400 Day

+83

+81

600 Day

+106

Self Replacing

+147

+112

Angus Pure

+170

+131

Ready September and October.

* Fertility and semen tested * HD50K Genomic tested for better EBV accuracy * All Bulls carcass scanned * BVD tested and vaccinated * EBV recorded, C10 TB status * Well grown, suitable for heifers or cows

Orders taken now.

Phone 027 44 22 429 Kokonga Ironside 5005 Boehringer Ingelheim Dairy Sire

Call for a catalogue or view on www.angusnz.com PGG Wrightson Cam Heggie 027 501 8182 Pete Henderson 027 475 4895 Central Livestock: Shane Scott 027 495 6031

WILLIAMS JERSEYS HIGH BW JERSEY BULL SALE Mark & Sherrie Stokman 07 3332446 Mark 027 640 4028 Sherrie 027 499 7692 mtkiwi@farmside.co.nz

Monday 2nd September, 11.30 AM On Farm: 1013 Wiroa Road, Okaihau Northland

Kokonga East Road (end of road by woolshed) off the Port Waikato - Waikaretu Valley Road, RD5 Tuakau

Comprising: 7 2yr Jersey Bulls BWs 144-198 weights up to 354kg 6 A2A2 Bulls including 1 Cross Bred 2yr Bull 42 Yearling Jersey Bulls 9 Bulls over 200 BW up to 233.

Sires include: Kaino, Bastian, Goldie Index, Integrity, Conrad, P.C.G. Favour, Desi, Terrific, Kingpin, 5 Star Sultan, Thor, Limerick, & Frankie. Please note: ‘Up-to-date’ weights available on sale day. Yearlings include 31 A2A2 bulls & 3 A1A2 bulls. The high genetic Williams herd of 230 cows is milked at Puhi Puhi under Mary Williams guidance. Bull calves, when 4 days old go to Okaihau to be reared/cared for by Brian & Gillian. The Williams stud has bred 148 bulls for the industry with 25 premier sires. The herds BW is currently making it one of the top in the country. Mary also sells females annually.

LIVESTOCK ADVERTISING

HAVE A SALE COMING UP?

HUKAROA

POLLED HEREFORDS

Call Nigel 0800 85 25 80

ANNUAL ON-FARM BULL SALE

PGG Wrightson Agents: Vaughan Vujcich 027 496 8706 Andrew Reyland 027 223 7092 Bernie McGahan 027 590 2210

Helping grow the country

Friday 6 September 2019 12 NOON - UNDER COVER PAULSEN ROAD, WAERENGA, TE KAUWHATA, NORTH WAIKATO

Bid, buy, sell all things rural

Bred, reared and raised naturally on strong hill country

Trade livestock like never before

90 quiet, easy-calving Hereford bulls 2 year olds & yearlings

Head to bidr.co.nz to find your accredited livestock agent today.

FREE GRAZING UNTIL 1 OCTOBER 2019 BVD tested clear and twice vaccinated Tb C10 and Lepto Vaccinated

LK0098532©

ALL BULLS FERTILITY & SEMEN TESTED

& Lisa Hansen 07 826 7817 or 0274 40 30 24

Vendor Contact: Brian Williams 027 447 5491 or 09 401 9086

livestock@globalhq.co.nz

FOR BUTTS, NUTS AND GUTS

Enquiries to: Dean

Williams Jerseys are still in the business of selling top bulls. • Delivery to suit up to end of October, trucks go south regularly. • A2 tested. • Tested negative & vaccinated twice for BVD. • 7n1 & Lepto Vaccinated. • Bulls are very quiet - moved daily with electric fence. • Weights available & in catalogue - weights up to 293kgs 10/7/19 on 1YR old bulls.

LK0098940©

Livestock

FARMERS WEEKLY – August 19, 2019

SALE TALK

When the examination is over, he says, “Okay Doctor, in plain English, what’s wrong with me?” “Well, in plain English,” says the doctor, “you’re just lazy.” The man nods. “Now give me the medical term so I can tell my wife.”

Red Devon Yearling Bulls for sale

Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’ve keen to hear more! If you’ve got a joke you want to share with the Farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@globalhq.co.nz with Sale Talk in the subject line and we’ll print it and credit it to you. Conditions apply

STOCK FOR SALE 120 AUT FRSN BULL CALVES Owner Reared 100 R2YR FRSN BULLS 330kgs

STOCK REQUIRED

AUT FRSN/HERE BULL CALVES 105kg+ 1YR FRSN BULLS 170-240kg 1YR ANG & AX or Ex X HEIFERS 230kg 2YR FRSN BULLS 450-500kg SIL MA EWES DUE Aug/Sept MA BEEF or BEEF X COWS Due Sept

Pure bred, registered, docile, closed herd. Refer Red Devon website and WillsNet Stud for details of all stock for sale.

www.dyerlivestock.co.nz

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

Inquiries to Don 06 375 8589

LK0098943©

A man tells his doctor that he’s incapable of doing all the things around the house that he used to do.

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

craigmore

polled herefords We’ve done the work for you!

All bulls are: • Performance recorded • Genomics tested to improve accuracy of EBVs

• Polled gene tested • Sire verified

All bulls are ready to perform!

YEARLING BULL SALE

Craigmore Hereford bulls carry the Hereford Blue tag.

Monday 9th September 2019, at 12.30pm On A/C D.B & S.E Henderson At the stud property: 429 Rukuhia Road, RD 2, Ohaupo 101 Registered Well Grown Bulls

For further information or inspection, please contact: Vendors: David 07 825 2677, 021 166 1389 or the selling agents: PGG Wrightson: Vaughan Larsen 027 801 4599, Cam Heggie 027 501 8182

TURANGANUI ROMNEYS

LK0098623©

We have bulls that will suit beef and dairy farmers www.craigmoreherefords.co.nz

Luncheon available

MEAT-MAKERS

“Reliable performance you can count on”

Second Annual Sale September 12, 2019 at 2pm 216 Wiltons Road Carterton

Michael Warren 06 307 7841 or 0274 465 312 Holmes Warren 06 307 7802 Jared Pead 027 363 0899 RD 2 Featherston 5772

TURANGANUI ROMNEYS “Reliable performance you can count on”

Lot 29 Tag 8288

40 Years of Proven Performance 37 Top Quality Simmental Angus Bulls For more information or a catalogue contact us: John McFadzean 06 372 7045 Johnie McFadzean 06 379 7401 / 027 429 5777 Andrew Jennings PGG Wrightson 027 594 6820

www.mcfadzeancattlecompany.co.nz 7% rebate for non participating agents

LK0097450©

LK0098685©

Lot 25 Tag 8361

MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Mel Croad

Nicola Dennis

Cattle

Reece Brick

Caitlin Pemberton

Sheep

BEEF

William Hickson

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.00

5.70

NI lamb (17kg)

8.30

8.25

NI Stag (60kg)

9.00

11.40

NI Bull (300kg)

5.60

5.50

5.40

NI mutton (20kg)

5.50

5.15

SI Stag (60kg)

8.95

8.85

11.40

NI Cow (200kg)

4.50

4.40

4.50

SI lamb (17kg)

8.05

7.90

8.10

SI Steer (300kg)

5.80

5.70

5.65

SI mutton (20kg)

5.40

5.30

SI Bull (300kg)

5.30

Export markets (NZ$/kg)

SI Cow (200kg)

4.25

4.50

UK CKT lamb leg

9.81

9.82

8.70

Slaughter price (NZ$/kg)

Last week Prior week

Last year

Export markets (NZ$/kg) 8.13

8.11

6.63

US domestic 90CL cow

7.65

7.54

7.09

North Island steer slaughter price

6.0

North Island lamb slaughter price

8.5 $/kg CW

US imported 95CL bull

$/kg CW

South Island steer slaughter price

Feb

Apr 2017-18

Oct

Dec 5-yr ave

Feb

Apr 2017-18

Jun

Last week

Prior week

Last year

3.12

Mar-19

DAIRY FUTURES (US$/T) Nearby contract

Last price*

616

503

314

313

304

787

783

750

DAP

Top 10 by Market Cap Company

YTD High

Westpac Banking Corporation

29.25

30.56

24.437

Australia & New Zealand Banking Group Ltd

27.56

30.75

24.198

Telstra Corporation Limited

4.09

4.19

2.867

Meridian Energy Limited

4.75

5.03

3.316

Auckland International Airport Limited

9.65

9.9

6.967

400

The a2 Milk Company Limited

15.76

18.04

10.42

Fisher & Paykel Healthcare Corporation Ltd

15.97

16.82

12.192

360

Australian Foundation Investment Co Ltd

6.5

6.669

5.955

Spark New Zealand Limited

4.025

4.185

3.49

F&C Investment Trust PLC

13.16

13.723

11.853

320

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

vs 4 weeks ago

YTD Low

Jul-19

Listed Agri Shares

CANTERBURY FEED BARLEY Prior week

616

30 micron lamb

May-19 Jul-19 Sept. 2020

Aug 2018-19

Urea

3.42

$/tonne Nov-18 Jan-19 Sept. 2019

Jun

Last year

440

Sep-18

Apr 2017-18

Prior week

480

5.75

Feb

Last week

37 micron ewe

7.25

6.25

Dec 5-yr ave

NZ average (NZ$/t)

Super

CANTERBURY FEED WHEAT

6.75

Oct

Fertiliser

Aug 2018-19

Grain

Data provided by

7.5

FERTILISER

Coarse xbred ind.

Aug 2018-19

MILK PRICE FUTURES

$/kg MS

$/kg CW

$/kg CW $/kg CW

Dairy

Jun

8.5

5.5

(NZ$/kg) Dec 5-yr ave

9.5

6.5

WOOL

Oct

South Island stag slaughter price

10.5

6.5

4.5

8.5

11.5

7.5

5.5 5.0

9.5

6.5

South Island lamb slaughter price

6.0

10.5

6.5

8.5

4.5

Last year

7.5

4.5

5.0

Last week Prior week

North Island stag slaughter price

11.5

7.5

5.5 5.5

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

440

5pm, close of market, Thursday

Company

YTD High

YTD Low

The a2 Milk Company Limited

15.760

18.040

10.420

Comvita Limited

2.870

5.420

2.860

Delegat Group Limited

12.000

12.500

9.400

2990

2985

3120

420

SMP

2425

2455

2530

400

Fonterra Shareholders' Fund (NS)

3.500

4.850

3.450

1.900

2.000

1.470

AMF

5620

5830

5900

380

Foley Wines Limited Livestock Improvement Corporation Ltd (NS)

0.900

0.962

0.624

Marlborough Wine Estates Group Limited

0.220

0.240

0.192

340

New Zealand King Salmon Investments Ltd

2.200

2.980

1.760

320

PGG Wrightson Limited

2.260

2.531

2.024

Sanford Limited (NS)

6.810

7.000

6.269

Scales Corporation Limited

4.600

5.028

4.253

SeaDragon Limited

0.002

0.003

0.001

Seeka Limited

4.940

5.350

4.096

Synlait Milk Limited (NS)

9.530

11.350

8.450

Butter

4750

4955

5100

Milk Price

6.38

6.41

$/tonne

WMP

360

Jul-18

* price as at close of business on Thursday

WMP FUTURES - VS FOUR WEEKS AGO

Jan-19

Mar-19

May-19

Jul-19

350

$/tonne

3100 US$/t

Nov-18

WAIKATO PALM KERNEL

3200

3000 2900 2800

Sep-18

Sep

Oct Nov Latest price

Dec

Jan 4 weeks ago

Feb

300

T&G Global Limited

2.620

2.810

2.550

S&P/NZX Primary Sector Equity

16117

17434

15063

S&P/NZX 50 Index

10704

10898

8732

S&P/NZX 10 Index

10417

10696

8280

250 200

Jul-18

S&P/FW PRIMARY SECTOR EQUITY

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

16117

S&P/NZX 50 INDEX

10704

S&P/NZX 10 INDEX

10417

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

6.00

NI SLAUGHTER LAMB ( $/KG)

8.30

SI SLAUGHTER STAG ( $/KG)

8.95

R1 TRADITIONAL STEERS, 295KG AVERAGE, AT STORTFORD LODGE ( $/KG)

3.95

Okay, that’s enough rain NORTH ISLAND

ORTHLAND was a bit more wintry last week with some rain and a chill to the air but some uplifting sunshine between showers. The east coast has been drier than usual so there are not too many complaints about the wet. Feed levels on farms are low but passable. Lambs are arriving as are calves on dairy and beef properties. Around Pukekohe the last 18 days have brought rain or showers. Finding a long dry spell to complete necessary work is becoming a challenge and a totally fine day or two would be welcome. At least the weather isn’t cold. Growers are relieved the Government is finally considering protecting New Zealand’s most productive land. In Waikato a dairy consultant says it’s been the mildest winter he can remember. It’s relatively dry and pasture covers are at record highs for the time of year. Milking cows are being fully fed on grass in many cases. Nothing extra is needed and controlling the pasture is an issue but the past couple of weeks have been a bit damp. As for last week’s announcement from Fonterra’s that there’ll be no dividend for its shareholders, we’re told that while farmers are very disappointed generally they believe in the co-operative structure and think it’s better to air the dirty laundry now and go on to fortify the balance sheet. King County had 200mm of rain in July and there’s been 100mm since. Paddocks near Piopio have been under water. In the past 30 days Taranaki has had 25 days with rain. Dairy farmers who are dusting their pastures with minerals the cows need after calving are frustrated because it’s washing off in the rain. The farmer we spoke to is now adding magnesium and calcium to supplementary feed just to make sure the cows are getting what they need. He says all of his low breeding worth or less productive cows were mated to the Speckle Park beef breed and have produced beautiful calves that are fetching $300 each at a week old. Gisborne has had exceptional lambing weather and back-country farmers have their fingers crossed they don’t get a big storm when lambing starts there in a couple of weeks. People are a little concerned they’re behind on average rainfall. The order is for a couple of hundred millimetres between now and October but not in one big dollop. Navel oranges are coming off trees. A citrus grower says people like them because they are sweet and delicious but don’t want to pay for them. They’ll buy one or two but they require a bit of work getting into and are over-juicy so you can’t eat them over your desk. Hawke’s Bay needs a winter soaking. There’s been enough rain to grow the most grass ever seen at this time of year but not much more. Lambs are arriving in good weather. A bit of barley is starting to go in. It’s destined for breweries. Stags in Hawke’s Bay, Waikato and Canterbury are being well looked after in the build-up to velveting. It’s worth a lot at the moment

If you love the information you get from these pages, you will love AgriHQ’s livestock reports.

LivestockEye

We create transparency for the industry with these independent, objective reports providing full sale results and informed commentary covering 10 saleyards across NZ that are emailed directly after the sale.

BETTER: Rangitikei farms are starting to dry out, which is good news for farmers who sold stock at the Marton hogget fair in Feilding last week.

– $100 to $140 a kilogram and some animals yield 5kg. The velvet will start to be taken off late next month. Rangitikei has been incredibly wet but after a few days of sunshine it’s started to dry out and the world is looking like a better place. The first lambs have arrived on our contact’s farm. He says it’s a bit daunting when you know a tidal wave of 10,000 are expected in the next few weeks. Horowhenua has had some great weather, which has allowed the fields to dry out. Soil temperatures are a little above average and the production of green veggies is going well. They’re a bargain. The first of this season’s asparagus is starting to poke its tips out of the ground, a couple of weeks early. The only problem is the Recognised Seasonal Employer workers from the Pacific to help harvest the crop might not arrive in time to pick it. SOUTH ISLAND There’s still four or five weeks of apple pruning to go in the Nelson region. In kiwifruit orchards the bulk of the grafting’s done and pruning and training should be finished by the end of the month. The weather’s been settled enough for contractors to get trucks into orchards to apply fertiliser and lime. Marlborough’s been chilly, wet and windy and there’s a fresh dusting of snow on the mountains. Despite this, temperatures are ahead of normal and grass is growing. Some fruit trees are starting to blossom early and daffodils are

coming out. Lambing’s under way on hill farms. Even though scanning percentages are down farmers are hoping for excellent survival rates. It hasn’t been great weather for calving up the Grey Valley on the West Coast. Our contact says it’s been raining in fits and starts with heavy weekend showers in the forecast. His heifers are calving first. The main herd starts this week. A good week of weather in Canterbury has allowed cropping farmers to get on with planting spring barley before the next period of wet weather. Lambing is mostly under way across the region and everyone’s hoping for an improved schedule for the coming year. There was a very cold start to calving in south Otago with blizzard-like conditions. Since then conditions have improved and our contact in the Taieri region says his herd is now about two-thirds of the way through. His cows are on balage and grass. Milking is going well. It’s been wet and cold in Southland. A farmer at Waimahaka had 20mm in the rain gauge last week, so not a huge amount, but after recent snow it’s very muddy under foot. She’d love a spell of dry weather now that calving is under way. Calf rearers in the shed are feeding colostrum, meal and hay to new born calves. Most of the bobbies will go to the works at four days. With enough cows coming into the shed the tanker was due for the first time on Friday. On sheep farms there’s plenty of grass around and ewes are behind wires getting ready for lambing that starts in three weeks.

Courtesy of Radio New Zealand Country Life You can listen to Country Life on RNZ at 9pm every Friday and 7am on Saturday or on podcast at rnz.co.nz/countrylife

Livestock Insight

Every week, we explain the context of the current market situation, drivers which are impacting the livestock markets and what to expect in the coming week.

Livestock Outlook

For those who want to see and understand forecasting, this monthly report projects farmer operating prices six months ahead and supports these prices with analysis of supply/demand, procurement factors, key export markets and exchange rate effects.

INDEPENDENT • OBJECTIVE TRUSTED • WORTHY Discover how we can help you keep up to date with market conditions.

agrihq.co.nz 0800 85 25 80

2476AGHQ

NI SLAUGHTER STEER ( $/KG)

DON’T STOP HERE...

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

Strong start to market for ewes and lambs

Angus-Hereford; the best weighed 303kg and made $970, with other heavy lines $790-$880. Other heifers over 190kg almost matched the steers at $660-$765. A selection of autumn-born weaners presented, and the top pens of Hereford-dairy steers, 120kg, sold at $520 and HerefordFriesian heifers, 80-90kg, $395-$495. Prime supply remains limited with Hereford-Friesian steers, 644kg, top at $3.18/ kg. Most other steers sold for $3.02-$3.11/kg.

New season lambs can now be seen frolicking around paddocks on the earlier lambing country in the North Island and a few forward-thinking vendors have tested the water of the ewes with lambs-at-foot market. Early sales of genuine five-year Romney ewes with multiple blackface undocked lambs at Stortford Lodge have earned $128-$131 all counted, already bettering record prices of $122-$125 seen at this time last year for similar lines.

Matawhero sheep • Very heavy male store lambs made $168-$183.50 • Heavy ewe lambs earned an average of $175 • Medium-heavy ewe lambs sold for $136-$162 Store lambs at MATAWHERO last Friday had a strong sale with buyers looking to secure numbers and supply tightens. Male lambs in particular sought after with mediums selling for an average of $157 and medium mixed-sex lines were a little cheaper at $126. Prime lamb numbers were limited, although what was on offer sold well with males earning $189-$195 and ram lambs at $223.tem aditium earions equiant, sin earum ad qui omnisqu

NORTHLAND Kaikohe • Two-year beef-cross steers sold for $2.90-$2.92/kg • Two-year bulls made $2.65-$2.75/kg • Beef-cross cows with calves at foot sold for $950-$1000 There were 450 head at last Wednesday’s KAIKOHE sale PGG Wrightson agent Vaughan Vijcich reported. Generally, good quality cattle sold well with good demand, although poor weather recently meant those lesser quality types were harder to move. Yearling Hereford-Friesian steers, 206-223kg, made up to $780-$800, $3.50-$3.70/kg with lesser types at $3.20-$3.40/ kg with heifers battling particularly at the bottom end. Yearling beef-cross bulls varied with better types up to $3.10/kg. In-calf dairy cows fetched $2.20-$2.25/kg, with empty cows making $2.00-$2.05/kg.

AUCKLAND Pukekohe • Medium prime steers made $3.01-$3.10/kg • Boner cows varied from $1.65/kg to $2.67/kg • Light R2 crossbred steers varied from $2.60/kg to $3.05/kg There was a good yarding of cattle on offer at PUKEKOHE last Saturday. Prime prices were generally firm with the best prime heifers making $2.97-$3.07/kg and steers sold well for the quality on offer. The store cattle section lifted with quality lines of both yearling and weaner cattle attracting strong competition. Medium R1 steers sold for $690-$830, while heifers were $700-$815. Small crossbred weaner steers fetched $530-$580, while heifers returned $430-$570 depending on breed.

COUNTIES Tuakau sales • Hereford-Friesian steers,570kg, made $3.10/kg • Angus heifers, 400kg, fetched $3.08/kg • Autumn-born weaner steers, 140kg, earned $720. • Good-medium boner cows were $1.85-$2.05/kg • Good ram lambs sold to $230 About 580 store cattle were yarded at TUAKAU last Thursday, PGG Wrightson agent Chris Elliott reported. Steers 300-400kg earned $2.90-$3.30/kg and heifers over 400kg typically making $2.90-$3.08/kg. Hereford-Friesian weaner steers, 220-250kg, fetched $800-$900 with heifers, 160-220kg, at $650-$710. Steer and heifer prices eased by

JUST THE TWO OF US: These two Angus steers, 607.5kg, sold for $3.04/kg at the Canterbury Park prime cattle sale last week.

4-5c/kg at last Wednesday’s prime sale. Good Angus steers, 705kg, fetched $3.26/kg, with other heavy types earning $3.05-$3.18/kg. Heavy heifers sold at $3.00-$3.12/kg and medium, $2.90-$3.00/kg. Heavy beef cows made $2.30$2.50/kg and heavy Friesians, $2.10-$2.35/kg. Monday’s sheep market was strong heavy lambs making $160-$230 and light-medium, $140-$160. Most store lambs returned $100-$145 and heavy ewes, $140-$200. Medium ewes made $100-$140 and light, $50-$80.

WAIKATO Frankton cattle and feeder calves • R2 Hereford-Friesian steers, 375-469kg, held at $3.13-$3.20/kg • R2 beef-dairy heifers, 328-429kg, strengthened to $3.00-$3.10/kg • Nine R1 Angus steers, 258kg, earned $930 • R1 Hereford heifers, 253-290kg, sold for breeding at $980-$995 • All prime beef-dairy heifers, 438-542kg, earned $2.93-$3.05/kg Just under 800 cattle were penned at FRANKTON last Wednesday. R2 Angus steers, 428kg, sold to $3.22/kg, and Hereford-dairy, 420-473kg, $3.04-$3.18/kg. R1 beefdairy steers, 175-258kg, eased to $630-$830 and heifers, 193-273kg, traded at $600-$780. Hereford-Friesian bulls, 194kg, held at $620, though 232-242kg eased to $665-$715. Autumn-born weaner Angus steers, 101kg, returned $535 and heifers, 99kg, $475. Most other heifers, 88-123kg, earned $330-$425, while Hereford-Friesian bulls, 119kg, earned $642. Prime beef-dairy steers, 563-652kg, improved to $3.01-$3.05, as did four South Devon-cross, 542kg, to $3.19/kg. Just over 1280 feeder calves were penned and Friesian bulls eased with medium to good at $80-$150, and light, $30-$50. Good Hereford-Friesian bulls lifted to $390, though medium eased to $250-$280 and light $130-$140. Good Hereford-Friesian heifers eased to $220, medium $150-$160, and light $40-$70.

BAY OF PLENTY Rangiuru cattle and sheep • R2 Hereford-Friesian steers, 259-381kg, made $3.18-$3.25/kg • Other R2 beef-cross lines sold at $3.01-$3.09/kg • Boner Friesian cows, 515-526kg, held at $2.24-$2.31/kg • The best store lambs made $185, with the top ewes $169 An increased yarding of store cattle featured at RANGIURU last Tuesday. R1 cattle continued to sell solidly with steer lines over 190kg at $670-$775. R1 heifer numbers were boosted by a special entry of Angus and

POVERTY BAY

TARANAKI Taranaki cattle • R2 Hereford-Friesian heifers, 409-507kg, sold for $2.82-$2.90/kg • R2 Angus-Friesian steers, 390-397kg, earned $3.08-$3.15/kg • R1 heifers sold in a range of $610-$725 Last Wednesday’s TARANAKI cattle fair was strong, with 904 head on offer. Hereford-Friesian was particularly popular with those looking to restock. Most R2 steers sold above $3.00/kg, with top quality Hereford-Friesian selling for $3.25-$3.32/kg and another large portion at $3.12-$3.23/ kg. R1 steers also had strong demand with owner bred Hereford-Friesian, 220-252kg, at $900-$1030.

KING COUNTRY Taupo cattle sale • R2 Hereford-Friesian steers, 390kg, made $3.31/kg • R2 Angus-Friesian heifers, 373-415kg, earned $3.03-$3.08/kg • Top R1 Angus steers, 220-222kg, fetched $910-$920 • Autumn-born Hereford-Friesian weaner bulls, 183kg, traded at $720-$732 Despite still being in winter mode, the TAUPO cattle sale last Thursday was strong with 811 head of mainly dairybeef cattle on offer. R2 steers averaged $1345, $3.25/kg, with owner bred Hereford-Friesian having strong demand. R2 Angus heifers, 345kg, were sought after at $3.11/kg. R1 cattle made up the majority of the yarding. Good quality R1 Hereford-Friesian steers made $960-$1030 at the top end, with same breed heifers, 251-260kg, selling well at $790-$800. Owner-bred and reared autumn-born HerefordFriesian weaners were a highlight, with heifers averaging $535 and bulls at $640.

HAWKE’S BAY Stortford Lodge prime sheep • Top mixed-age ewes earned $172 • Medium to medium-good mixed-age ewes held at $123.50-$133 • Very good cryptorchid lambs held at $186.50-$195.20 • Very heavy ram lambs improved to $213-$215 • Top ewe lambs rivalled the males at $191.50-$204 A very mild day greeted salegoers at STORTFORD LODGE last Monday, and with no cattle on offer focus was firmly on the sheep pens. Ewe throughput lowered with just on 190 penned, and very heavy ewes softened to 150-$162.50, as did the top end of good types at $138.50-$147. Lamb quality was good throughout the 1500 head yarding, with solid demand from the rails. All heavy male lambs held at $204-$229, with top mixed sex lines nearly on par at $200$221. Heavy mixed sex lambs improved to $168-$180, as did heavy ewe lambs up to $162-$186.50 Stortford Lodge store cattle and sheep • Five-year Romney ewes with blackface lambs made $128.50-$131 all counted • Good to heavy ewe lambs were steady to firm at $154-$176 • R2 Angus steers, 534-562kg, firmed to $3.31-$3.34/kg • R1 traditional steers, 320-345kg, sold well at $1325-$1410 • R1 Angus & Angus-Hereford steers, 280-313kg, achieved $1130$1290 A quiet winter for selling cattle came to an end at STORTFORD LODGE last Wednesday, with just over 1000 penned, most of which were R1. Bidding was selective on the R2 steers and 325-381kg Angus & Angus-Hereford, realised $3.05-$3.11/kg. A good winter meant average weights for R1 cattle were up and Charolais-Angus heifers, 274-315kg, sold well at $970-$1090. Angus bulls, 251-316kg, made $880-$1100, and Friesian, 175-197kg, $590-$695. A smaller yarding of store lambs was well timed to match a reduced buying bench, and the market was steady to firm.

SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019

cows varied, although heavier Angus and Simmental-cross sold very well at $2.23-$2.27/kg. Good quality prime lambs were on offer which lifted the market, with nearly half of the offering selling for $200-$248. Prime ewe quality was typically low and most made $90-$97. Store lambs varied, although medium lambs remained popular at $121-$135. Coalgate store and prime cattle; all sheep • R2 Charolais & Charolais-cross steers, 401-538kg, made $3.10$3.14/kg • R2 Hereford steers, 450kg, fetched $3.13/kg • Prime steers, 525-575kg, at $3.09/kg were 4c/kg above last year’s high • Prime cows, 526-738kg, held at $2.01-$2.09/kg Well-presented beef lines were the highlight at COALGATE last Thursday. A special entry of R2 Angus steers, 346-446kg, sold for $3.12-$3.19/kg, with AngusHereford, 381-443kg, at $3.14-$3.23/kg. Of interest to buyers were 15 autumn-born Hereford-Friesian weaners, 124-127kg, that fetched $470. Half the large tally of prime steers weighed 605-740kg and made $3.12-$3.20/kg. The top prime lambs made $200-$219, while there more midrange types at $171-$198. The few top end prime ewes achieved $193-$201, with medium to good at $150-$188. However, most offered were light types at $90-$125. Good store lambs made $157-$168, with the next cut down at $140-$144.

SOUTH-CANTERBURY

SELLING WELL: Romney ewes with undocked lambs bettered record prices at Stortford Lodge last week.

Heavy males made $173-$186.50, while medium-good ewe lambs traded at $127-$154. Ewes with lambs-at-foot made their first decent appearance and interest was high.

MANAWATU Feilding prime cattle and sheep; feeder calves • Very heavy male lambs firmed to $195-$247 • Heavy ewe lambs steady at $171-$188 • Boner cows, 445-542kg, firmed to $2.26-$2.33/kg • Speckle Park bull calves fetched $400-$450 Buyers braved the rain at FEILDING last Monday where, for the second consecutive week, half of the lamb tally sold above $200. Of the 1800 mixed-sex, 1000 were very heavy with the top third at $227-$236 and the balance $196-$216. Heavy lines were $179-$194. Ewe quality and prices dropped, with very good lines $158-$165, and good lines $136-$156. Boner cow throughput and quality fell but prices are above the same point last year. In-calf lines proved of interest to buyers, and Friesian, 480-600kg, sold at $2.44-$2.56/kg. Medium and good Friesian bull calves steadied at $110-$190, while good Hereford-Friesian bulls earned $270-$350. Good Hereford-Friesian heifers made $150-$200, and medium, $80-$120. Feilding store sale • Capital stock VIC 3yr-8yr cows, 525-540kg, were $1400-$1500 • Nice 490-515kg R2 Friesian bulls were $3.19-$3.20/kg • Good 285-320kg beef-cross and Friesian R1 bulls were $3.00$3.10/kg • Ewe with lambs-at-foot were $132-$134 all counted • Average store lamb price was $156.50 Mixed quality held back the market in the store cattle, but good lines still sold well. Traditional R2 steers, 520-540kg, were $3.35-$3.40/kg, with anything else mainly $2.95$3.20/kg. The better 490-515kg Friesian bulls were $3.19$3.20/kg, but a lot of more average types 380-440kg were more like $2.95-$3.05/kg. R1 cattle were very hit-and-miss. Big lines of 215-255kg traditional steers made $870-$960 and some 230kg Hereford-Friesian at $3.53/kg, $805. Good Friesian and beef-Friesian bulls, 285-320kg, were $3.00$3.10/kg, while some traditional 235-260kg heifers went well at $3.62-$3.74/kg, $875-$935. The attention was on the ewes as much as the lambs down in the sheep pens. In-lamb ewes were weaker through the medium cuts but the rest were strong enough. Good mixed age ewes with singles to a terminal ram were $194-$205 while medium two-tooths SIL 118-126% were $146-$168. Ewes with lambs-at-foot sold very well - one

consignment of 133 ewes with 212 lambs were sold in three cuts, each $132-$134 all counted. Around 3500 store lambs strengthened on last Friday. Good males were $170$184, down to $150-$161.50 on the mediums. Most were ewe lambs though where good lines were $158-$172 and medium-to-lighter pens made $136-$154.50. Feilding hogget fair • Top line of male hoggets were $254 • Good male hoggets averaged $197-$224 • Good ewe hoggets average $172-$182.50 The annual MARTON HOGGET FAIR last Wednesday had the largest tallies in a few years at 22,500 head. High lamb throughput lately meant demand wasn’t quite as strong as last year which meant prices were generally back $15/ hd. Heavy male hoggets were mostly $195-$220, easing to $175-$190 on the medium options. For ewe hoggets $170$190 covered much of the better types while $145-$165 was standard on the rest. Rongotea • Two-year Hereford-Friesian steers, 470-475kg, earned $2.76 /kg • Two-year Friesian steers, 451kg, traded at $2.60/kg • Friesian boner cows, 513kg, lifted to $2.05/kg • Friesian cows with calves at foot made $101 • Big Friesian bull calves fetched $140-$165 At RONGOTEA last Wednesday the highlight was a big line of owner bred and reared autumn weaner Friesian bulls, New Zealand Farmers Livestock agent Darryl Harwood reported. These had good competition and 124-147kg bulls sold for $610-$640, while 109kg Murray Grey-cross returned $530. Two-year Hereford-Friesian heifers, 357-470kg, sold well at $2.42-$2.97/kg. Yearling Hereford-Friesian bulls, 275kg, made $700, $2.55/kg, with same breed heifers, 166-187kg, at $2.94-$3.37/kg.

CANTERBURY Canterbury Park • Top prime beef steers earned $3.00-$3.12/kg • Boner cows, 585-710kg, strengthened to $2.00/kg • Heavy prime ewes made $162-$216 • Ewes with lambs at foot sold for $92 all counted A decent bench of buyers at CANTERBURY PARK last Tuesday made for a positive sale. Good quality wellfinished cattle sold well, with the top end of the dairy-beef steers at $2.95-$3.04/kg. Good yielding, 500-600kg, prime heifers lifted to $2.90-$3.03/kg regardless of breed. Prime

Temuka prime and boner cattle; all sheep • Medium-good to heavy mixed sex store lambs firmed to $142$150 • Light mixed sex store lambs sold for $95-$128 • Boner Friesian cows, 500-680kg, rose 14c/kg to $2.06/kg • Boner Friesian cows, 425-490kg, also lifted 14c/kg to $1.99/kg Store lamb volume and quality improved at TEMUKA last Monday, with mixed-sex pens lifting in price in several key categories. Very heavy ewe lambs returned $167-$185, with the top line purchased for breeding. The top prime lambs made $218-$234, while a quarter of the yarding were heavy lines at $191-$214. The balance were mid-range types at $150-$189. The top mixed age ewes achieved $190-$262, though the bulk ranged from $80 to $178. Prime steers remained strong as most lines over 500kg sold above $3.00/ kg. Angus, 490-640kg, were the best at $3.14-$3.18/kg. Heifer prices firmed with 497-595kg at $3.01-$3.04/kg, with most mid-range lines $2.82-$2.90/kg.

OTAGO Balclutha • Heavy prime lambs made $170-$200 • Heavy prime ewes sold for $160-$190 • Light one-year breeding ewes made $145 • Top store lambs earned $140-$150 At BALCLUTHA last Wednesday prime lambs strengthened, with light to medium types earning $130$160. Prime ewes eased slightly, although most made over $100 and heavy two-tooths fetched $130. A quality offering of store lambs strengthened the market, while a stand-out line of Romney ewe hoggets sold for breeding at $153. Castlerock yearling sale • Top yearling steers made $1020-$1100 • Top yearling heifers made $900-$1020 • Two-year forward store steers sold for $1250-$1400 There were around 700 yearling cattle at the CASTLEROCK sale last Friday. This was made up of predominantly traditionally bred cattle and the market was reported to be generally on par with last year. Medium yearling steers made $920-$1000 with the bottom end around $700-$880. Medium heifers were bought for $820$880 with the bottom end at $650-$750.

SOUTHLAND Lorneville • Two-year Angus-cross steers, 390kg, earned $3.07/kg • Yearling beef-cross steers and heifers, 170-190kg, made $520$540 • Prime steers, 510kg, fetched $2.69/kg • Heavy prime lambs sold for $162-$188 • Heavy prime two-tooths held at $162-$190 At LORNEVILLE last Tuesday there was a medium yarding of store cattle, with two-year Hereford-cross steers and heifers, 350-358kg, selling at $2.82-$2.88/kg. There was also a small yarding of bobby calves. Good beef-cross bulls made $150-$170, with same breed heifers around $100. Prime numbers were limited, lighter prime steers earned $2.38/kg and dairy type heifers, 435kg, were $1.90/ kg. Heavy prime lambs lifted, with light to medium types steady to softening at $130-$159. Shorn store lambs traded at $130-$140 for the top end, with light to medium types at $100-$125.

Markets

40 FARMERS WEEKLY – farmersweekly.co.nz – August 19, 2019 NI SLAUGHTER BULL

SI SLAUGHTER STEER

SI SLAUGHTER LAMB

($/KG)

VERY HEAVY EWE HOGGETS AT FEILDING MARTON HOGGET FAIR

($/KG)

($/HD)

5.60

5.80

8.05

180

high lights

UK still top for sheep Top 10 sheepmeat markets by volume, month of June 2019 Top 10 sheepmeat markets by volume, month of June 2019

1 2 3 4 5 6 7 8 9 10

Alan Williams alan.williams@globalhq.co.nz

Country China 1 United Kingdom 2 United States 3 Netherlands 4 Germany 5 Canada 6 Taiwan 7 Malaysia 8 France 9 Japan 10 Other markets Total

of total Volume (tonnes)Volume%(tonnes) Country 12,643 50% 12,643 China 8% 2,104 United Kingdom2,104 7% 1,791 United States 1,791 1,061 4% 1,061 Netherlands 1,001 4% 1,001 Germany 849 3% 849 Canada 771 3% 771 Taiwan 705 3% 705 Malaysia 548 2% 548 France 542 2% 542 Japan 13% 3,219 Other markets 3,219 25,234 25,234 Total

Top 10 sheepmeat markets by value, month of June 2019 Top 10 sheepmeat markets by value, month of June 2019

Change from Change from same month same month previous % ofyear total previous year -1% 50% -1% -44% 8% -44% -27% 7% -27% -7% 4% -7% -38% 4% -38% 6% 3% 6% 0% 3% 0% 46% 3% 46% -31% 2% -31% -48% 2% -48% 13% -17% -17%

Top 10 sheep meat markets Volume

1 2 3 4 5 6 7 8 9 10

Change from Change from same month same month % of total previous year previous year Country % of total Country Value (NZ$m) Value (NZ$m) 95.1 37% 20% China 1 95.1 37% 20% China 32.7 13% -22% United States 2 32.7 13% -22% United States 19.0 7% -44% United Kingdom 3 19.0 7% -44% United Kingdom 17.1 7% -10% Netherlands 4 17.1 7% -10% Netherlands 16.5 6% -43% Germany5 16.5 6% -43% Germany 9.4 4% -1% Canada 6 9.4 4% -1% Canada 7.3 3% -40% Japan 7 7.3 3% -40% Japan 7.2 3% -11% Taiwan 8 7.2 3% -11% Taiwan 6.1 2% 61% Malaysia9 6.1 2% 61% Malaysia 6.1 2% -33% France 10 6.1 2% -33% France 38.4 15% Other markets Other markets 38.4 15% 255.0 -15% Total 255.0 -15% Total

Value

Source: CompiledSource: by MIACompiled from Statistics overseas merchandise trade data by MIANew fromZealand Statistics New Zealand overseas merchandise trade data

France 2%

Japan 2% France

Japan Other marketsOther markets 2% 13% 13%

France 2%

Other markets Other markets 15% 15% France

2% REXIT might be a big worry 2% Malaysia Malaysia but Britain is still easily New Malaysia Malaysia 2% 2% 3% China China Zealand’s major chilled sheep3% Taiwan 37% Taiwan 37% Taiwan Taiwan 3% 3% meat customer. 3% 3% Japan China Japan In the year to June 30 China 3% Canada 50% 3% Canada 50% 4% Britain imported more than France, 4% Canada Canada 4% 4% Germany, the Netherlands and Belgium Germany Germany 4% Germany 4% combined. Germany 7% 7% However, together they were ahead inNetherlands Netherlands 4% Netherlands 4% Netherlands United States 7% terms of value. Individually, the United United States United 7% 13% United United States United 13% Kingdom United Kingdom 7% States is also a bigger customer than the United7%States Kingdom Kingdom 7% 7% 8% 8% continental nations on their own. Volumes of frozen meat going to China Source: Compiled by MIA from Statistics New Zealand overseas merchandise trade data dwarf shipments to all other countries but it does not figure among the major buyers of the higher-value chilled sheep meat. In the year to June An emerging trend might be that in June it had the 10th highest volume 30 Britain imported more though it was outside that list by value. than France, Germany, the It was not in the top 10 on the annual Netherlands and Belgium or June quarter chilled export figures. Britain’s year to June imports by combined. volume, 20,445 tonnes, were down 10% on a year earlier and by value of $227.3 million, also down 10%. % of value and Germany 8% of volume This year’s figures will make and 11% of value. Switzerland was fascinating reading when they are only 2% by volume but 4% by value. released about this time next year Britain’s 34% of volume dropped to 26% because Brexit is due on October 31, a BIG BUYER: China took 51% of all NZ’s sheep by value. crucial time for Christmas chilled British meat exports for the June year. In the June quarter Britain took and European sales. 3918/t for $44m of chilled sheep meat, It might or might not go ahead and 12% and Germany at 10% by volume but a period marked by all top 10 customers the outcome could be anywhere from 13% by value. importing less and paying less than at smooth-sailing to calamitous. No-one The data shows there has been in a the corresponding time in 2018. It was knows. mainly downward trend in chilled supply followed in order by the US, Germany, For the year, the US, in second place, to Britain since 2014 though sales in April Japan and Jordan though the latter was imported about 8000/t for a value of were higher than in the previous four only eighth by value. $155.4m, according to a Meat Industry Britain had a 31% share by volume and years. Association report based on Statistics NZ China took 80/t of chilled sheep only 23% by value. The US 14% and 18% trade data. meat in June, up by 161% on the and Germany 10% and 13% were again The European countries were next, corresponding time last year, whereas the highest per-tonne values. with France at 5246/t, Germany 5139/t all but Canada of the other major buyers In June the US was the biggest buyer, and the Netherlands 4423/t. Germany had significantly lower volumes. taking 489/t compared to Britain’s 477/t, was the high-value market at $100.3m, China took 51% of all NZ’s sheep meat both tallies being well down on a year followed by the Netherlands $74.5m and exports for the June year at 203,865/t, earlier, the latter by 43%, though June is France $61.9m. ahead of the UK at 42,878/t, based on the always one of the low-supply months. As the chart shows the US and dominance of the frozen market. China Germany were the highest-value markets The US had 17% of the supply by volume and 20% by value with the UK at 16% and had a 36% share by value. per tonne, the US at 13% of total volume

HARVEST GRASS EFFICIENT AND

FAST A perfect match for maximum productivity, efficiency & results. Finance now from 0%

$128.50-$131 $3.03-$3.08/kg Five-year Romney ewes R2 Angus-Friesian heifers, 370-415kg, at with blackface lambsTaupo at-foot, at Stortford Lodge

ACROSS THE RAILS SUZ BREMNER

Everyone gets behind charity at big Marton hogget fair AT A time where it seems there’s a constant stream of bad news aimed at rural New Zealand it is nice to shine a light on some of the positive actions taking place. One shining example of this was last week’s annual Marton Hogget Fair in Feilding. For pure farming reasons it is one of those sales a fair share of lower North Island farmers have circled on their calendars. Each year it’s a sight to behold as upwards of 15,000 lambs congregate on the yards, offering buyers the rare chance to secure big numbers of very heavy, top-quality lines. It’s not uncommon for them to weigh in at 55kg or more while only a minority are below 40kg. But that’s not why I’m talking about this sale. Instead it’s because of the growing charitable aspect to the event. Only three years ago the Cancer Society and the sale yards combined to begin an initiative where vendors could choose to donate one or more hoggets per pen sold, with the value of the hogget going straight to the charity. And it’s safe to say it’s been a roaring success. The first year saw $11,000 raised, a number that has only risen since. Donating one hogget doesn’t seem like much of a sacrifice until you consider the fact that many were selling for $200 plus. You’d be hard pressed to find any situation where that many people are giving away that sort of cash. Even some vendors who weren’t part of the programme made other contributions privately. It’s not only the sellers who were feeling charitable. One vendor, John Turkington, put the challenge out to auctioneers and bidders whereby $1000 would be donated for each line of hoggets that reached a target price. In both situations bidders paid above the odds to get the donation across the line. One of these pens were some 64kg males which topped the auction at $254. reece.brick@globalhq.co.nz

Find out more about AgriHQ at agrihq.co.nz

FINANCE*

2 X 6 Monthly PAYMENTS

CLAAS

DISCO MOWER f f f f

Top chop quality with MAX CUT Perfect cut, no marks on the bar Smooth running, at higher speeds Advanced max impact resistance

CLAAS

VOLTO TEDDER f f f f

13 models in series 4.5 m - 13 m working width Trailed or 3-point linkage options 4 - 10 rotor options

CLAAS

LINER RAKE f f f f

20 models in series Trailed or 3-point linkage options 3.5 m - 15 m working width Single, twin or quad rotor options

For your local dealer go to:

claasharvestcentre.com

* Standard CLAAS Financial Services terms, conditions and fees apply. 0% p.a requires 33% deposit followed by 2x6 month repayments in arrears over 12 months. Subject to CLAAS Greenline Category 2 assets only (excludes triple mowers & quad rotor rakes). Offer valid until 30/09/2019.