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Vol 19 No 15, April 20, 2020
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Adapt quickly Colin Williscroft
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RACEABLE, trusted and safe food will be more important than ever before in postlockdown society but consumer behaviour has changed and New Zealand food producers must adapt quickly, KPMG agribusiness global head Ian Proudfoot says. An understanding of food’s importance in peoples’ lives is greater today than it has been in decades, probably since the 1940s, he told an AgriTech webinar. “We’ve always assumed food will be there but now there is an awareness we could face food insecurity. “Now we recognise food supply is not certain. Food availability will no longer be taken for granted.” There have been empty shelves around the world and people will remember that. With restaurants and takeaways closed people have had to learn to cook for themselves. That will lead them to reconnect with their customary foods because when people feel a threat to their lifestyle they generally move back to traditional eating patterns. Governments will recognise that and will focus on creating more local production. Food security is now the priority of every government around the globe. For food exporting countries like NZ a big part of that will involve how to get food to people.
Global freight paths are changing and will need to be reinvented, which will initially be more expensive, pushing more towards grow-local models. Proudfoot expects a shift to countries putting themselves first, which will lead to them protecting their own food producers though they won’t want to be seen to disrupt international trade. What that means for NZ is a need for more government investment in helping to tell the NZ food story in overseas markets. Face-to-face contact with customers overseas will be out for a while so the Government has to work out how to use its footprint in those markets to help sell NZ food in different ways. Social isolation is already accelerating the use of digital solutions in day-to-day life and that is encouraging more directto-consumer supply channels. There has already been a dramatic jump in the popularity of click and collect delivery services worldwide. In recent weeks the number of businesses operating in that area in the NZ food space has jumped from about 65 to more than 600. Businesses have used face-toface marketing in supermarkets to help create loyalty but that won’t be possible in the foreseeable future so cyberspace is going to become even more important. But just sticking an ad on Facebook won’t work. Businesses will need to work out how to create loyalty, such as providing an initial discount to try a product. The big challenge for nonessential food-supply businesses will be re-opening.
Much will depend on established relationships and experiences because once people have learned new behaviours they generally don’t go back to what they did before. Those businesses will have to change their marketing focus to attract customers and much of that will come back to digital platforms. There will need to be innovative use of digital solutions to keep customers connected, especially when they can come back so they will want to. For restaurants that might involve providing cooking classes or tips. Consumers will increasingly seek food products that build immunity and minimise the risk of contagions so Proudfoot expects an emphasis on helping people discover the unique health benefits of different food products. That will mean nutritional components will be highlighted, moving from the back to the front of packaging. “It’s not necessarily what people want to read but they will want to see it there.” He also expects human-free handling systems to increase rapidly, with the mantra “this product has not been touched by human hands” a big driver. That will reverse the trend to minimal packaging, with more packaging to provide increased confidence around food safety but that can’t be at the expense of the environment so the challenge will be how to provide it in a circular way so it can be reused, recycled or composted. Staying the course on environmental issues like
Food supply is not certain. Food availability will no longer be taken for granted.
EVOLVE: Consumers are likely to return to traditional foods but will want them delivered in new ways with greater food safety, welfare and environmental assurances, KPMG global agribusiness head Ian Proudfoot says.
greenhouse gas mitigation and improving freshwater quality must remain a key focus because those issues have not gone away and they cannot be forgotten. That commitment to the environment is a chance to lead global markets and attract premium prices. But the pace of progress must match the ability to pay and that won’t be the same as it was three months ago. Businesses will need to be viable if changes are going to be made. That means there could be room for more sector-based approaches, such as He Waka Eke Noa, the primary sector climate change commitment, in other areas such as freshwater quality. Unfortunately for food
producers, Proudfoot says history will record the global pandemic as a food safety failing, which will raise questions among some people about the place of animals in the food system, meaning the animal/plant products debate will intensify. Consumers will want to better understand the safety and traceability of the products they buy. Controlled growing systems such as controlled environment, vertical farms will become more attractive. Now and in the near future is a time of disruption for many in the agrifoods sector but with that comes opportunity. Businesses can benefit from knowing that food will always be central to peoples’ lives, he said.
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22 Belligerence sparks union career
It wasn’t a social justice or political calling that led Graham Cooke to a career as a trade unionist but the actions of a belligerent union branch secretary.
REGULARS Newsmaker ��������������������������������������������������� 22 New Thinking ����������������������������������������������� 23 Editorial ������������������������������������������������������� 24 Pulpit ������������������������������������������������������������� 25 Opinion ��������������������������������������������������������� 26 World �������������������������������������������������������������� 30 Real Estate ���������������������������������������������� 31-33 Employment ������������������������������������������������� 34
4 Rising protectionism worries exporters A new wave of trade-distorting subsidies is about to break over global agricultural markets already struggling to deal with a hit to demand from the coronavirus outbreak.
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CORRECTION The story on P19 of this edition states Potatoes New Zealand and associated organisations have secured funding for the Sustainable Vegetables systems project. Potatoes NZ has now clarified that no funding had yet been approved by Ministry for Primary Industries or any other funder. The project is still at the application stage.
7 SFF has good result in tough
16 You’ve got to be kind to
On the back of its best financial annual result in a decade Silver Fern Farms has the cash and liquidity to help weather what is looming as a tough year.
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
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Sector wants deal on reforms Neal Wallace & Colin Williscroft PRIMARY sector leaders have been in discussions with the Government to try to reach a consensus on freshwater reforms. The 11-member Food and Fibre Leaders’ Forum, which represents the primary sector, is adopting a similar approach to last year’s accord on reducing agricultural greenhouse gas emissions and for several months has had regular meetings with Prime Minister Jacinda Ardern and senior Cabinet ministers. The Government’s Essential Freshwater reforms have been temporarily stalled by covid-19 with Environment Minister David Parker saying dealing with the crisis necessitates the reconsideration of priorities and timing. That aside, forum facilitator Mike Petersen says the Government is receptive to working in partnership with the sector. “The Government is receptive that we are sitting down and doing this collectively as a partnership,” he says. Last October the forum and the Government agreed to He Waka Eke Noa, a partnership requiring the primary sector to develop a system to measure greenhouse gas emissions and establish a farmgate price on agricultural emissions by 2025. In return the Government agreed not to include agriculture in the Emissions Trading Scheme or introduce a processor levy on agricultural emissions. Disruption to the global economy from covid-19 means primary sector exports will shoulder much of NZ’s immediate economic burden, which makes it even more necessary to agree to what it sees as workable freshwater regulation, the forum says. Petersen acknowledges
THEY LIKE US: DairyNZ chairman Jim van der Poel senses improved public goodwill for the agriculture sector.
But, do I think we can improve the proposals and the policy? I believe we can. Mike Petersen Food and Fibre Leaders’ Forum agreement will be difficult given forum members have disparate views, heightened community interest in freshwater and Parker’s concern at the lack of progress on improving water quality. “But do I think we can improve the proposals and the policy? “I believe we can.” He notes the Land and Water Forum, which includes agricultural and environmental
groups, tried unsuccessfully for seven years to reach a consensus. The forum is not seeking the deferment or abandoning of freshwater reforms. “The industry is very clear. It needs to be the right policy and that does not mean the sector is seeking to back away or ask for concessions because the direction of travel is well understood.” Beef + Lamb chairman and forum member Andrew Morrison says post covid-19 NZ’s priority will be exports, employment and the environment. NZ has the advantage of being a producer of low-carbonemitting food and it needs the right regulatory environment to enhance that advantage. “We are encouraged the Government wants to work with us because we all want the same outcomes – employment, exports and environment.” Three areas Morrison says the
forum wants to focus are water use and storage and nutrient leaching regulations. Farmers need certainty and flexibility, which means land is not locked into one use. “Nobody is going to invest in anything if they think the rules are going to change and that is one reason why I think we need to carry on with this dialogue.” DairyNZ chairman Jim van der Poel says the wider impact of covid-19 has reawakened the community to the importance of agriculture and he senses improved pubic goodwill towards the sector. That creates an opportunity to promote water quality initiatives under way in the sector and to also advance new science-based proposals that will make new water regulations workable. “This is not an opportunity to not do anything. That is not what farmers want. What they do want
are rational and practical solutions and certainty going forward.” The Food and Fibre Leader’s Forum consists of B+LNZ, DairyNZ, Horticulture NZ, Federated Farmers, Apiculture NZ, the Federation of Maori Authorities, Foundation for Arable Research, Fonterra, Deer Industry NZ, Meat Industry Association and Irrigation NZ. Green Party co-leader James Shaw says now is not the time to postpone proposed new regulations. He says the long-term challenge of improving NZ’s freshwater is not going to go away but should instead be prioritised. “NZ’s reputation as producing high-quality food in a sustainable manner is going to be more important post-covid than it was pre-covid. “We need to be doing everything we can to buttress that reputation.”
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Rising protectionism worries exporters Nigel Stirling nigel.g.stirling@gmail.com A NEW wave of trade-distorting subsidies is about to break over global agricultural markets already struggling to deal with a hit to demand from the coronavirus outbreak. The Government’s top trade negotiator Vangelis Vitalis told Parliament’s Epidemic Response committee the prospect of rising protectionism in overseas markets was among the top concerns exporters had been reporting to officials in the early stages of the crisis. Trade Minister David Parker warned of an even more dramatic downward spiral in world trade than was already being predicted if such policies were adopted. “We are worried about the aggressively protectionist tendencies that may come to the fore in some countries which we do not think are in the economic interests of the world and certainly not in the economic interest of New Zealand,” Parker said. Already heavy subsidisers of their agricultural industries, the United States and the European Union have come under fresh pressure to shovel yet more taxpayer dollars into their farmers’ pockets.
WORSE OFF: DCANZ chairman Malcolm Bailey said the pandemic would only harden the resolve of European farmers already opposed to trade talks.
News agency Reuters reported last week that the Trump administration is preparing a US$15.5 billion package to prop up farmer incomes hit by the pandemic. Dairy farmers in the US have been forced to dump milk as schools, restaurants and cafes close, while meat packing plants have shut as workers fall ill or die from the virus. The coronavirus aid follows $US16b last year for American farmers hit with Chinese tariffs and which was questioned by NZ and others at the World Trade Organisation. Meanwhile in Europe the farmer
lobby group Copa and Cogeca is calling for restrictions on meat imports and payments for private stockpiling of dairy products. It also wants direct payments in excess of those already provided to its members through the existing Common Agricultural Policy’s (CAP) €58b annual budget to protect them from weakening demand as a result of the virus. “While we recognise the European Commission’s and member states’ efforts to ensure that the internal market functions smoothly, we reiterate the need for additional targeted market measures for the livestock sector, including exceptional measures,
financed outside of the CAP budget,” Copa and Cogeca secretary general Pekka Pesonen said on April 7. Dairy Companies Association of NZ executive director Kimberly Crewther said prices were for now above the level at which the European Commission would directly purchase dairy products. However if they fell further the Commission could begin purchases as it did between 2015 and 2017 when the removal of EU dairy production quotas and Russia’s import ban led to a slump in international dairy prices. Such interventions in the past have stabilised EU farmer incomes but kept global production higher than it otherwise would have been without them and lengthened the time prices took to bounce back. Trade negotiator Vangelis Vitalis said NZ aimed to counteract increasing protectionism by signing agreements to reduce tariffs and other barriers to trade faced by exporters where it could. He acknowledged that strategy also faced obstacles from the pandemic. “Some of the major economies that we would look to normally lead on these things look unlikely to be able to do that in the near future.” Crewther said the EU’s top trade
We are worried about the aggressively protectionist tendencies that may come to the fore in some countries which we do not think are in the economic interests of the world and certainly not in the economic interest of New Zealand. David Parker Trade Minister official had already signalled trade talks with NZ were unlikely to be completed this year as scheduled. DCANZ chairman Malcolm Bailey said the pandemic would only harden the resolve of European farmers already opposed to the talks. “Any industry that is going through a period of not knowing which way is up the last thing they are going to want to see happen is their government sign up to a new trade deal. “I would have thought our job has become harder not easier.”
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Moving to alert level three WHEN New Zealand moves to alert level three all primary sector businesses can operate as long as they can do so safely, the Ministry for Primary Industries says. That includes businesses that provided essential goods and services during alert level four, forestry including harvesting, wood processing and forestry sales and exports, floriculture including bulb and seed growing, harvesting, processing and sales and exports, wool and fibre industries including handling, shearing, scouring and sales and exports and farmgate and cellar door sales for delivery or contactless pick up only. Businesses providing support services to the primary sector can operate at alert level three if they can operate safely. They include farriers, fencers, farm advisers, pest management operators, farm property sales agents, agricultural supply stores – for delivery or contactless pick up only, companies involved in routine farm plant and gear maintenance and those involved in relocation to new farm properties. For a full list of types of support services that can operate go to the MPI website. Stock sales and wool auctions are permitted but the public must not attend. Where possible they should be run online. Business owners should also seek advice from key sector groups such as DairyNZ, Beef + Lamb, Horticulture NZ, their co-ops and Federated Farmers regarding business continuity, animal welfare and labour needs.
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SITUATIONS VACANT: AgStaff director Matt Jones says he’s got hundreds of primary industries placements to fill and there will be hundreds more as New Zealand climbs out of lockdown.
Wanna job? We’ve got it Annette Scott annette.scott@globalhq.co.nz PRIMARY industries face a serious staff recruitment pinch of grave concern to AgStaff director Matt Jones. The impact of covid-19 is already starting to bite and with hundreds of vacancies on his books it’s only going to get worse over the next year, Jones said. Through his employment businesses Jones recruits staff for jobs from farm and agricultural contracting and food processing to seasonal staff and quality assurance experts, many coming from around the globe to work in New Zealand. Without the seasonal influx of internationals who usually arrive in May Jones is struggling to fill placements. “We are expecting staff from overseas to start in May but we are not expecting to see them. “A lot of seasonal workers have gone back home, backpackers have left in droves as have staff who were in highly skilled positions. “These people and these sources of recruitment won’t be able happen. “That puts a lot of pressure on the balance of the year and going into next year depending
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on how long our border is closed. “I have hundreds and hundreds of placements to fill right now and there’s going be hundreds more as we climb out of this covid pandemic.
Bringing in these specialist skilled people is not going to happen and effectively that’s going to put pressure on exports. Matt Jones AgStaff “We are struggling big time.” Jones works with parent companies around the world to recruit staff, particularly for the more highly skilled quality assurance positions across the dairy and food processing industries. “Bringing in these specialist skilled people is not going to happen and effectively that’s going to put pressure on exports. “We are going to see unemployment soar over the coming months and, of course,
not everyone will be cut out for a career in the primary industries. “I want people to be aware there are opportunities and bloody good ones, too, in primary industries. “I want to hear from anyone who is interested in the primary industries as a career whether it be from newbies to the industry or those who want to further existing primary industries careers. “And I am prepared to train as I can do that too. I’ll grab them if they’re keen to learn.” Jones also facilitates agricultural training programmes, which include the recent opening of the Canterbury AgTraining facility near Ashburton. AgTraining plans to offer 100 diplomas to attract people to join the agri sector. “We have got the likes of the construction sector and consultancies and the tourism industry virtually doing nothing. In the primary sector we are busy. “If you want long-term security in your job get into primary industries, it’s always innovative, diversified. NZ has got a good global reputation for the food we produce and it evolves. “It’s not all just about shifting a mob of sheep. A lot of people don’t get that there’s a lot more involved.”
Over the lockdown AgStaff has experienced a 30% increase in business because of more intensification of food production. “We have spent three weeks drawing up declarations with clients to have our staff keep working under the lockdown. I just need more staff. “I have been working from 10 in the morning until 2am. I just couldn’t sleep, There’s been so much to do to get it right.” Jones has hundreds of jobs available immediately in food manufacturing and seasonal agricultural work. He recruits staff for most of the dairy food producers and manufacturers and on any given day there are 900 vacancies across the dairy industry. “We are aggressively going out to find Kiwis to get involved in the dairy industry.” The agricultural contracting industry will also be heavily impacted with immigrant staff going home and unable to return. “Everyone just ran and is still running, contractors know they won’t get them back. “I’m not expecting any international workers exchange for at least the remainder of the year, probably longer. “We are going to need Kiwis,” Jones said.
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
7
SFF has good result in tough year Neal Wallace neal.wallace@globalhq.co.nz ON THE back of its best financial annual result in a decade Silver Fern Farms has the cash and liquidity to help weather what is looming as a tough year. Silver Fern Farms has reported a net profit after tax of $70.7 million for the year to December 31 compared to $5.8m for 2018. That has given Silver Fern Farms Co-operative, which owns half of SFF, a net profit of $34.9m. Chinese food producer, distributor and retailer Shanghai Maling owns the other half of SFF. In 2018 SFF Co-op reported a $900,000 net profit. SFF’s improvement was across the board. Revenue for 2019 was $2.6 billion ($2.4b in 2018), earnings before interest, tax, depreciation and amortisation including a share of associate earnings was $123.4m ($32.4m) and net profit before tax was $89.6m ($6.3m). Total equity in SFF rose $70m to $571m and in SFF Co-op it increased $35m to $304m. The coop’s return on equity was 12.2%. SFF Co-op chairman Richard Young said while the company benefited from greater demand It’s was good year in China because of African swine fever, changes to the way the for all products but beef company operates in that market certainly performed by getting closer to customers well. and general operating efficiencies mean it can fully realise those opportunities. Richard Young “We made some changes within the business which made us Silver Fern Farms nimble and efficient so we can capture more value than we have approach to liquidity and done in the past,” Young says. cashflow management, which While all products performed includes deferring a dividend well, Young says being a large payment until there is more player in beef certainly helped. economic certainty. “It was a good year for all “We remain confident that products but beef certainly SFF is in a strong financial performed well.” position. With cash on hand in the Given global uncertainties it business they will be equipped was the right decision for the SFF board to take a 265W conservative FARMERS WEEKLY X 120H MM to respond to the pending rise in
CLEARING: Silver Fern Farms is working to quit stock as drought and covid-19 put on the pressure, chief executive Simon Limmer says.
consumer demand post covid-19 disruption,” Young said. SFF chief executive Simon Limmer described the 2019 performance as a significant step towards its 2023 goal of achieving an aggregated profit over the fiveyear period of more than $150m. Limmer says 2019 was challenging, starting with an uncertain international geopolitical and trade environment but then it became all about China. “The impact of African swine fever on Chinese pork stocks drove global consumer demand for protein and countered any downsides of Brexit and United States-China trade issues. “With customers in China looking to beef and lamb items to fill some of the void left by the
culling of pigs it set a positive benchmark for other markets to follow and they responded accordingly,” Limmer said. And this year has been full of challenges starting with volatility in China and stability in the rest of the world but then those positions completely reversing. “Thankfully, those things all happened at different times,” he said. Then came the countrywide shutdown because of covid-19 and the meat industry negotiating to operate under new protocols. Now Limmer says the company is working with suppliers and shareholders trying to quit stock under those restrictions as late autumn dawns and drought lingers.
Global markets are very uncertain though he is confident China will bounce back reasonably strongly, noting signs Chinese are starting to relive their lives again. During the lockdown there was substantial growth in online sales and retail and Limmer expects some of that trend will be permanent, which its Chinese partner Shanghai Maling is assisting with. The company invested more than $32m in capital expenditure in 2019 and $90m over the last three years and Limmer says further capital investment is planned but will be delayed till later in the year where there is greater economic clarity.
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Turmoil chops milk price forecasts Hugh Stringleman hugh.stringleman@globalhq.co.nz THE outlook for next season’s farmgate milk price has become gloomier as increased northern hemisphere production and covid-19 disruption meet weaker world markets, New Zealand dairy analysts say. In their first forecasts for next season, six weeks before the changeover date, analysts have begun $1 to $1.50 below where dairy companies confidently say this season will finish. For 2020-21 Rabobank analysts Emma Higgins and Michael Harvey predict only $5.60/kg milksolids whereas others are picking the mid-$6s. The spread of covid-19 has brought elevated risk in global commodity markets, the Rabobank analysts say. “A significant global demand shock will lead to an extended down cycle (in milk prices) with most of the impact anticipated over the first few months of the new production season.” Higgins and Harvey also factored in a cushioning effect on farmgate prices of a falling NZ dollar value, averaging US57c next season. However, in recent days the NZD has climbed back over 60c. They suggest dairy companies will have to open their new forecasts conservatively and keep a close watch on considerable upside and downside market forces. Their advice to farmers is to batten down the hatches and strip out any unnecessary costs over 12 to 18 months. ASB senior rural economist Nathan Penny said the 2021 season has considerable unknowns and many moving parts. Initially, the lower NZD will help offset any lost demand but looking further into the season he foresees a return to volatility
BIG CUT: Rabobank analyst Emma Higgins and her colleague Michael Harvey have cut their next season milk price prediction to $5.60.
and a significantly wide range of possible milk prices because of covid-19. “Accordingly, we believe it pays to be prepared for a range of milk prices, including the possibility of a sub-$6/kg result.” In her April edition of ANZ Agri-Focus, agriculture economist Susan Kilsby took the 2021 milk price forecast down from $7.10 to $6.45 and referenced the renewed volatility of world dairy prices and the NZD. On the plus side, a decent chunk
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of demand for dairy products is not particularly sensitive to the economic cycle. Kilsby thinks world milk production continues to contract, in contrast to the Rabobank duo who said production levels are rising modestly in the major exporting countries. Dairy products will also be displaced from much-reduced food service demand where restaurants and cafes have been closed. “We remain extremely cautious
as regards China’s appetite for dairy imports in 2020,” they said. Westpac analyst Michael Gordon also points out milk supply in Europe and the United States rose gradually in the early months of this year. “The European Milk Board is now calling for voluntary reductions in milk production. “Part of the issue is limited processing capacity right now due to lockdowns and social distancing. “But it clearly has an eye towards weaker demand within Europe as well.” The EMB plan calls for an early warning call if prices fall 7.5%, a crisis call at minus 15% and obligatory cutbacks if prices fall 25%. Gordon said demand for dairy products will be hit hard in markets outside China. While infant formula might be considered essential, other dairy products like milk powder and butter as ingredients for processed foods will suffer. “Weaker world demand combined with steady supply will put further downward pressure on world dairy prices in the coming months. “We expect a further drop in the near term with some recovery from the second half of this year but remaining below their current levels on average over the next year.” Westpac’s revised forecasts are $7 for this season and $6.30 for next season. In Britain covid-19 disruption to supply chains has resulted in falling prices and delayed payments by processors, some of whom have told farmers to dump milk. The UK spot market price for milk dropped to 15p a litre (NZ$3.75/kg MS) on April 1 as processors lost food service customers. The UK Farmers Guardian published market prices for
May supply in a range of 24p to 31p (NZ$6-$7.75/kg) with the higher ones being dairy product manufacturers like Saputo, Arla, Wensleydale and Lactalis. Dairy farmer organisations called for the government to introduce a 25p floor price and/or subsidy price for lost production.
Scenarios … include possibility of sub-$6/kg. Nathan Penny ASB In the United States futures prices for milk, cheese and milk powders on the Chicago Mercantile Exchange have dropped about 30% since the outbreak of covid-19 in midJanuary. For example, class 3 milk futures contracts were US$18 a hundredweight (44 litres, NZ$8/ kg) in January and are US$12.50/ cwt (NZ$5.60/kg) now. Closures of US schools and restaurants have stopped the flow of food service products like cream, ice cream, butter and sour cream, resulting in about 10% more milk for processing. Many dairy co-operatives have asked farmers to cut production, right at the spring peak, or penalised them for overproduction. Industry bodies have proposed to the US Department of Agriculture a temporary supply management plan and reimbursement of farmers for dumped milk. Fonterra is not due to make its first forecast of the 2021 milk price until the third week in May, only a few days before the season begins on June 1.
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10 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Kiwifruit labour proves patchy Richard Rennie richard.rennie@globalhq.co.nz THERE are mixed messages in the kiwifruit sector about how many more workers can be put in harvesting roles as the industry enters the peak harvest weeks. Seeka chief executive Michael Franks said the sector’s labour shortage over the past two seasons has been exacerbated by covid-19. His company continues to seek more workers for both harvesting and packing as it adjusts to the loss of Recognised Seasonal Employer workers. The kiwifruit sector is estimated to have lost 1300 RSE workers when borders closed on March 19. “The reality is we have struggled all along. Three weeks ago we were 750 short when we had 400 RSE workers that could not show up. All of these workers were experienced.” Meantime Franks, like other processing heads, reports a high churn rate for the workers they have been able to attract this season and the industry is concerned over what a move from level four to level three will mean to labour supplies. “I would say the situation is still very challenging. Picking is okay, numbers come and go, but pruning later in the season is going to be very tough. Those RSE workers were all skilled and won’t be here for that.” Franks said there are still plenty of jobs going at Seeka with 100-150 vacancies. Key shift management and control staff are very short with no prospect overseas RSE staff will be able to come here this season. “It could only ever happen if one of the Pacific Islands
without covid-19 could send staff here.” The one covid-free island is Vanuatu, also the source for many of the industry’s RSE workers. Seeka has been working to deliver Zespri layered packs of fruit requiring more time to pack. Pushing packhouse throughput down to 80-85% while managing staff remains challenging. Hume Pack N Cool director Mark Hume said the next 35 days are critical for the industry as the flood of SunGold fruit hits packhouses and continual operations are essential.
The reality is we have struggled all along. Three weeks ago we were 750 short when we had 400 Recognised Seasonal Employer workers that could not show up. Michael Franks Seeka After some uncertainty early on his Katikati facility has a solid number of staff turning up for work. “Until now it has just been early maturing blocks, the really hard work is just beginning.” Kiwifruit Growers chief executive Nikki Johnson confirmed there are still several hundred vacancies in the industry but efforts are in play to contact people who registered interest in working. “The majority of those vacancies would be in
packhouse night shifts and that is probably where the RSE workers are being missed the most.” The shortages experienced are often on specific sites, rather than generally. Johnson confirmed churn rate is a problem this year, possibly because first-time workers are grappling with the physicality of the job and the longer shifts. Overall, however, she is optimistic the industry will manage through the busy two-week peak period and can then focus on how to fill winter pruning positions. It is unlikely Vanuatu RSE workers will be able to come to NZ now and the focus is on redeploying existing RSE workers from around the country to work in Bay of Plenty. Apata chief executive Stu Weston said his operation has also experienced high staff churn but he expects a normal level as work settles down. The arrival of a team of RSE workers from Nelson, who come out of quarantine this week, will bolster a night shift. Packhouse operations are running at 90-100% capacity a shift. “One of our biggest issues now is complacency around biosecurity and keeping to the covid-19 rules about hygiene and separation.” Having the taste profile assessment removed has helped fruit flow through packhouses and Weston said the industry has harvested 40% of its crop, up from 33% at the corresponding time last year. Typically, peak harvest will be in a week’s time. “One of my biggest concerns now is whether we will lose many people to their old jobs if we step down to level three.”
SQUEEZED: Seeka chief executive Michael Franks is lamenting the loss of 400 Recognised Seasonal Employer workers this season.
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
11
Rural covid data is still too opaque said thinly stretched rural health services would benefit from a better understanding of where testing and infections are. DISTRICT health boards have More than 640,000 people been urged to release more are part of the essential services location details on covid-19 cases workforce, including 510,000 who and testing to inform people and can’t work from home. rural health services. Those numbers would be The Ministry of Health reports weighted towards rural districts covid-19 statistics on a district where food production and health board basis, with a very fruit harvesting is a priority and wide range across 20 boards, infection in any rural businesses from more than 200 cases each in and communities would be a big Southern and Waitemata to just a concern, he said. handful in Tairawhiti. Breakdown by the ministry of Waikato University population more than 40,000 tests done until health expert Professor Ross April 9 shows a national rate of 8.1 Lawrenson said the case numbers cases per 1000 people. and testing details should be Lawrenson pointed out the broken down into council areas. differences in testing rates For example, Waikato contains between more rural boards and 10 councils and numerous the urban centres. population centres. For example, the rates in The province has more than Whanganui, Taranaki, Tairawhiti, 170 covid-19 cases but the only South Canterbury, MidCentral and approximate location mentioned Canterbury are under six per 1000 is the cluster of more than 60 and the highest is in Wairarapa at linked to a St Patrick’s Day bar 16. function in Matamata. Maori and Asian people are also Lawrenson, a Rural General FARMERS WEEKLY HALFmember, PAGE 265W X 200H MM under-represented in the testing. Practice Network board
Hugh Stringleman hugh.stringleman@globalhq.co.nz
“We just don’t know whether the infections in rural districts are being picked up or whether country people are getting to the testing stations.” In the South Island a lot of the rural hospitals are run by community trusts so are not getting the information they need from the relevant board. “Public testing stations have been set up, often without help from rural GPs who are left in the dark about cases in their locations.” Health boards had been advised by the ministry not to publish locations for cases in their areas. But some have provided a broad breakdown – Southern divided its table-topping number into council regions like Queenstown-Lakes, Invercargill, Dunedin etc. MidCentral also specified Palmerston North, Manawatu, Horowhenua and Tararua. But when approached the Northland board refused to give any details about its 26 cases
CHANGE NEEDED: Professor Ross Lawrenson says it is not good enough for the Health Ministry to tell health boards not to release covid-19 data and the excuse of protecting patient privacy is not a valid one.
within a geographically diverse region with 180,000 people on the grounds of patient confidentiality. “Privacy is not an issue when locating a few cases without names and addresses within a population of say 40,000,” Lawrenson said. Supposed cases are often on social media but it is better to have accurate information published. Director-general of health Dr Ashley Bloomfield has widened the criteria for people to be tested to boost the test rates and inform
any decision to end level four lockdown. Lawrenson called on the ministry to release locations for tests and cases to lead to better research and modelling. “When the MOH goes to community testing to uncover the asymptomatic infections it will need to plan and publish locations in greater detail.” His own research project concerns health services access and outcomes in the rural population, including trauma rates.
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12 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Industries must face reality Annette Scott annette.scott@globalhq.co.nz NEW Zealand needs to return to a free-market economy operating in an environment where businesses are enabled but not subsidised or unduly restrained by government, Federated Farmers general policy manager Nick Clark says. Federated Farmers has been considering what an economic recovery might look like and what needs to happen to help rather than hinder it. At a macro level Feds supports the Government’s short-term crisis measures such as the wage subsidy but a quick-as-possible return to normality is needed, he says. “We need a return to fiscal responsibility with operating spending brought under control, surpluses restored and debt being repaid. “This will take time but should be done wherever possible without the imposition of new or increased taxes.” From a Feds perspective recovery measures must include helping the primary sector remain a key export and economic driver because, with the hard times for international tourism and other services exports such as international education, the primary sector will have to do even more of the heavy lifting. Feds strongly supports commitments to boost infrastructure investment. “There’s plenty that can be done to invest in rural infrastructure, which will help stimulate the economy and improve resilience of rural communities.” It includes roads, telecommunications and greater and more effective use of seasonally variable water resources to generate electricity, irrigate farms and orchards and provide more reliable sources of drinking water for rural communities and for livestock. “We’re very keen on measures to improve skills in the workforce and enable people who have
DON’T DREAM IT’S OVER: Federated Farmers policy manager Nick Clark says protecting industries from economic reality will not help a return to fiscal responsibility.
been made unemployed to be redeployed where the jobs are and will be. “It’s great to see the big increase in New Zealanders working in horticulture currently and looking ahead we have a great opportunity to get people employed to deal to weeds and pests, including wilding conifers and the possums, stoats and rats wreaking havoc on native bird populations.” Though the economic fallout from covid-19 is unprecedented, fiscal responsibility isn’t an impossible dream. In 2010-11 NZ’s fiscal deficit blew out to a whopping $18.4 billion following the double whammy of the global financial crisis and Canterbury earthquakes. That the government of the day managed to return to surplus four years later in 2014-15 without tax
increases shows what is possible, Clark said. “We also want a new approach to the environment with regulatory proposals such as Essential Freshwater revisited in the new reality. “There are existing regulations in place in relation to these concerns and instead of adding further regulation the focus should be on investment in projects that will bring lasting environmental benefits.” They include funding to improve urban and commercial sewage discharges, rural and urban water supplies and stock drinking water in rural areas. That would improve environmental outcomes while providing stimulus to the economy. Funding for native plantings and biodiversity work like
planting, pest control and fencing will also be needed. Financial and other support for farmer catchment groups is another action that will result in immediate environmental benefits. Better state-of-the-environment monitoring and reporting is another need. “This doesn’t mean the primary industries are doing nothing. We’re already committed to a path of ongoing environmental improvements. “It means ensuring what we do commit to is effective and will efficiently deliver the environmental outcomes we’re seeking.” More generally, the Government needs to stop imposing more and more costs on businesses, especially small businesses, Clark said. “It was very disappointing the Government went ahead with the huge increase to the minimum wage. “Looking ahead it needs to ease off and give businesses breathing room and a bit of much-needed confidence.” While Federated Farmers has positive ideas for the recovery there’s concern about a wave of protectionist sentiment, including enthusiasm for the Government to do more to promote onshore manufacturing. “There’s logic in NZ having capacity to manufacture essential supplies in the fight against coronavirus or a future epidemic. “It’s great local businesses have jumped at the opportunity, which shows their great flexibility and innovativeness in responding to demand. “But some people want to go further, encouraging the Government to promote manufacturing on a larger, broader scale to drive us towards a new economy. “For many years this idea has been on the fringe but the Government sees other countries flirting with similar ideas and it’s seriously considering promoting manufacturing as part of its
thinking for longer-term recovery.” While promoting manufacturing sounds seductive it’s unclear what it could mean, Clark said. It could mean manufacturers getting preferential treatment from regulations, like overseas investment, it could mean using taxpayer money to subsidise new and existing manufacturers through tax breaks, grants or soft loans. It could mean giving NZ manufacturers an advantage for government procurement and it could even mean going further to protecting them from cheaper and better imports using tariff and non-tariff barriers. “It would be a very bad idea to subsidise domestic manufacturers to provide goods we currently easily and cost-effectively source from more efficient overseas producers or to erect trade barriers to impede those imports. “It would reverse 35 years of policy where we let the market decide what’s produced here versus what’s produced overseas, something which has served farmers, businesses and consumers very well. “Reversing course is not a good idea.” Protecting industries from economic reality, including manufacturing and even farming, and borrowing heavily to pick so-called winners like the Think Big projects, were two of several reasons why NZ’s economic performance was so woeful that its economy came close to collapse in 1984. “Another worry is that our trading partners will not look kindly upon us if we were to subsidise domestic manufacturers, erect tariff and non-tariff barriers against imports or impede the export of commodities like logs. They could quite easily retaliate against our agricultural exports and impede further progress to reduce trade barriers. “Neither would be in the interests of farmers or the economy,” Clark said.
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Onion exports to Indonesia set to resume ONION growers are celebrating after being told they can resume exporting their crop to Indonesia. Indonesia has re-opened its market to New Zealand onions after imports were halted when new import rules were introduced by its government in January.
Twenty percent of our exports go to Indonesia so we’re heavily reliant on that market. James Kuperus Onions NZ Exports were stopped while NZ sought clarification about the new rules, Onions NZ chief executive James Kuperus said. The suspension coincided with the industry’s main export
months to a critical market for the industry. “Twenty percent of our exports go to Indonesia so we’re heavily reliant on that market and every New Zealander would have had to double their consumption if we couldn’t work through what the new regulations were.” The vegetable is as an important crop rotation to prevent disease build-up in soils, he said. “For onions to carry on that rotation we have to have that strong demand internationally otherwise we’ll be reducing our hectarage down to 500-1000 hectares. “The Indonesian market with 20% of our exports is critically important. If we didn’t have that market we’d have 38,000 tonnes to be exporting to other markets or to domestic markets.” About 85% of NZ’s onions are exported with the Indonesian trade returning $28 million to regions last year. Total onion exports rose to
13
UNDER WAY: New Zealand onion producers are again able to export to the critically important Indonesian market.
$172m in 2019, up by $83m on 2018. Trade between Indonesia and NZ is equal, with exports/ imports worth $1.1 billion to each economy. Apatu Farms joint managing director Paul Apatu is confident long-term, international demand for NZ onions will grow. “We were pretty nervous that there might be some international supply chain disruptions as a result of covid-19 but reports are that things are currently going pretty well. The Hawke’s Bay onion grower said global demand for onions is high. “We’ve seen export markets
making decisions to secure supplies, long-term. Onion growers are doing a great job
giving the world a really highquality, healthy and great tasting product.”
Farm awards go online THE Farm Environment Trust has cancelled the rest of its awards functions for 2020 because of the covid-19 restrictions. Instead, it will run weekly videos announcing the winners for each region. Starting on April 22 at 7.30pm the trust will release regional 40-minutes videos on YouTube.
It will also post links to the videos on its website or people can get alerts by joining its Facebook page at https://bit. ly/3aTpDvK. The schedule is: Horizons April 22, Waikato April 29, Otago May 6, Southland May 13, Taranaki May 20, Auckland May 27, Northland June 3 and Wellington June 10.
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WE’RE HERE FOR YOU. WHEN WE WORK TOGETHER, WE'LL WEATHER TOGETHER. Right now we are experiencing a natural moment of change. We’re having to embrace a new norm, changes in behaviours, new technologies, fresh uncertainty and the outcome might not be entirely business as normal but business as different. To get us through, information we can trust is king. Which is why we have mobilised our GlobalHQ content team of 26 reporters, AgriHQ analysts
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
15
Growers head to Supreme Court Richard Rennie richard.rennie@globalhq.co.nz AN APPEAL Court decision on the Government’s liability for the Psa infection in kiwifruit has ruled in favour of the Crown, stating it is immune from responsibility for allegedly negligent acts. Kiwifruit growers behind the case are now preparing to go to the Supreme Court. In 2017 more than 200 growers and post-harvest processor Seeka alleged negligence and sought compensation from the Ministry of Agriculture, now Primary Industries, for allowing Psa infected pollen into New Zealand. The ensuing outbreak resulted in the high value Hort16a kiwifruit being heavily infected and major orchard losses were incurred over the following two seasons. Latest government estimates put the total losses at more than $800 million. The High Court ruled the Crown was negligent and breached its duty of care by allowing Psa into the country through infected pollen and was liable to growers for its negligence. But the Crown was also cleared of liability for failing to inspect the pollen and of any liability to Seeka. The Crown appealed against
the ruling while growers crossappealed over the failure to inspect the pollen. The Court of Appeal allowed the Crown appeal against its liability to the growers but dismissed the Seeka and the growers’ crossappeals. Grower spokesman John Cameron said there was always been a belief that whatever decision was made the Supreme Court would be the next step in the process. “The key thing from the appeal is that there was no doubt MPI’s actions were behind Psa coming into NZ. That to us is justification to take the information to court and have it verified,” he said. “What has been difficult to prove is the duty of care and liability around that.” The Court of Appeal found the Crown has statutory immunity that precludes liability for alleged negligent acts or omissions. The court also found the Biosecurity Act provides immunity for any omissions made by ministry staff and any individuals who might have been in breach of duty of care have immunity against civil liability. The court did, however, reason that if the ministry had owed a duty of care it would have found
We’ve got the country covered Covering the country from Cape Reinga to Bluff, our Area Managers are here to support you as an essential business service. We‘re still on the ground, actively helping dairy farmers do things right on farm - from achieving healthy teats and training your staff, to troubleshooting mastitis issues.
LIMITED LIABILITY: The Court of Appeal’s decision has left growers with only one option in the Supreme Court, John Cameron says.
ministry staff breached their duty of care by granting import permits without doing an effective risk assessment on the use of the pollen that caused the outbreak. But the court reasoned vague policy factors mean it would not be fair, just and reasonable to impose a duty of care in the circumstances. The ruling also noted had the ministry owed a duty of care the
court would have found the failure to inspect the pollen consignment fell well below the test for care expected of skilled and informed staff. “However, that failure had no causative effect because the permit made provision for unmilled pollen.” Cameron said the case is a monumental one that sets precedents over future government liability so going to
the Supreme Court is a fitting move. “From a grower’s point of view we are very satisfied that both courts have acknowledged MAF’s actions were responsible for it coming here.” A welcome outcome has been a sharpening up of biosecurity standards. “I think it is something everyone is far more conscientious about when it comes to doing their job. But it still does not deal with the losses and hardships that continue now. “But getting it over in the Court of Appeal, that was always going to be a hard shoe to fit. The fact it has taken 13 months to come out with this decision implies it was by no means black and white. There must have been a bit of variation in opinion there.” Seeka chief executive Michael Franks said the company was conditioned to any possible verdict and it will be up to the claims committee to determine if Seeka will continue to the next stage. The class action suit was underwritten by Auckland based company LPF Group. Cameron said he expects any Supreme Court ruling will be at least a year away.
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16 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
You’ve got to be kind to yourself farmstrong.co.nz
LOCKDOWN has made Marian Hirst’s blueberry business more challenging to run but it’s also made her appreciate why she loves the job. It’s harvest time on her Hawke’s Bay orchard but the lockdown has prompted a major change in approach. “We’re an essential workforce but we’ve pared everything back to the minimum. “We’ve allowed people who would have been at risk to step back. For example, in our blueberry packhouse we have quite a few mature ladies who have retired from other industries and they are a vulnerable group so we’ve narrowed it down to our core team. “My sons are helping pack blueberries right now and I’m handling the deliveries so we’re trying to decrease the risk as much as possible.” Hirst and her partner Graham manage an award-winning 40ha pipfruit and blueberry operation at Longlands, Hastings. She’s responsible for the blueberries, an important part of the business diversification strategy. She’s also in charge of staff, administration and compliance across the business, which has nine permanent employees and a seasonal workforce of up to 100, including Recognised Seasonal Employer workers from Vanuatu. Hirst says the lockdown has reinforced the importance of relationships to their business. “It’s made me realise the biggest reward for me managing this business has been watching the people I love working with grow and take that next level of opportunity. That has been a huge motivator for me.” That investment in people over
the years is paying dividends now. The challenge is to continue the harvest and get the fruit sold, she says. “The good thing is we are small compared to some of the large corporates so we are able to be light on our feet and make changes. “On the blueberry side of the business we are keeping things ticking along. We’re lucky to still be able to deliver blueberries into our local supermarkets. We said we are working hard to keep supplying and that’s what we are doing.
Getting through this as a business means considering other people’s households, not just your own. Marian Hirst Grower “Our customers know it’s a family business and I think it raises people’s spirits that we are doing everything we can to keep those berries going into stores.” With a reduced team the Hirsts continue to put in long hours and are mindful of the need to look after themselves. Structure and space are the keys to a wellfunctioning family bubble, she says. “What we are doing is making sure we all have some space at home to do our own thing. One son is a gamer so we make sure he has time and space to do that and another son is more active and likes to do more on orchard and physical work so we are giving him a lot of opportunities to do that. “At the moment my husband is working long hours but he likes television so we will often leave him to watch his shows and
destress when he needs it. It’s about giving people their space.” As a farming mum looking after the needs of a whole household as well as running a business Hirst realised some time ago about the importance of setting aside time for herself. “You’ve got to be kind to yourself as well as looking after your family and your team. Our foremen and whole team need me to be well. “My husband and sons are into squash but that’s not my thing. However, a few years ago I realised I enjoyed weight training. It’s been a good way to mix with people outside the industry. The other positive thing is seeing your body change. It’s such a personal journey. I think with the increase in muscle and strength your mental strength improves too. I love it. “I’m struggling a bit with the lockdown but my trainer has sent out a challenge to us each week that you can do at home. It’s tailored to each person and there’s a WhatsApp group so credit to them. I’m doing the challenge at home around work commitments.” One of her tips for managing pressure during lockdown is to choose a single, reliable source of industry information. “In the first couple of weeks my inbox was overflowing with varied messages from all over the place. “We decided there and then to take only industry advice. Both the apple industry and blueberry industry have been amazing. They are giving us clear leadership which is all I want from them – the facts and compliance. “It’s taken a lot of stress out of my inbox because I’m choosing one source of information.” Despite the long hours Hirst remains energised and optimistic. “What’s driving me right now is trying to keep this business alive delivering apples and blueberries
WORTH IT: Blueberry grower Marian Hirst says her investment in people over the years is paying dividends now.
but also looking after our team. “Getting through this as a business means considering other people’s households, not just your own. Everyone’s got their home and their bubble and we are counting on their bubble to keep our bubble safe. “We’ve had to reduce our blueberry team to keep people
safe but I’ve had two beautiful texts this morning from them saying that their wage subsidies had gone in, thanking us and sending their love. That’s gold really.”
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News
FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
17
Ag contractors must recruit now Gerald Piddock gerald.piddock@globalhq.co.nz RURAL contractors need to start planning now to train and recruit staff to prevent staff shortages. Overseas travel restrictions caused by covid-19 mean contractors can no longer rely on tractor drivers and other experienced farm machinery operators from the northern hemisphere coming to New Zealand to work over the busy spring and summer months. Conversely, many contract employers rely on their staff going to Europe or North America over the winter, removing the need to pay them when there is little work. The global border restrictions meant contractors cannot expect to recruit foreign staff as they usually would to work in the new season, Rural Contractors Association chief executive Roger Parton said. “My advice to contractors is that they need to start planning for this now. There is an issue of you not being able to get overseas staff when you want them. “You may have to train NZ staff to fit in. You need to consider how you will train them and you need to consider when you need
ACT NOW: Agricultural contractors need to start thinking about training and recruiting staff for the new season now because of the likelihood of ongoing international travel restrictions.
to start training them so they are productive at the time.” There is now a large pool of unemployed people the industry could recruit and train to fill any shortfall. Parton knows of one contractor who recently employed several former forestry workers as machinery operators. “There is a pool of people out there used to using big machines.” It will be relatively simple to re-
train them to operate agricultural machinery. “A big machine is a big machine. It’s the finer points that really matter.” He estimates about 40% of staff employed by agricultural contractors are foreigners. Rural Contractors usually advertises quarterly for overseas workers and is about to do that again. Parton expected a significant number of New
Zealanders will apply for the roles. “We usually get two or three but I suspect we’ll get a lot more this time and those will be circulated to all of our members.” He pointed to the recent coverage of airline pilots working in a supermarket. “There may be some who decide that in view of all that has happened and what is likely to happen that this might be a good time to look at a career change
because one thing that is always going to be needed is food.” The level of training new workers need to make them competent depends on the worker’s skills. The technology in some machines such as harvesters means they could virtually be run on autopilot while others, such as mowers for silage, require more training, he said. “When you’ve got a machine with 20-metre rolling blades at the front you have to be sure the person in the cab knows what they are doing. “My gut feeling is that we will have some hiccups with staff in the forthcoming season but I think if we are flexible in our outlook and those who are seeking employment are prepared to expand their horizon then we may well not have as much difficulty as we would.” Parton said the industry is fortunate the lockdown occurred as the season was winding down in April rather than coming to peak in spring. “There was a number of people who saw the writing on the wall and said, ‘sorry mate, we’re off’ and got out and got home quick, which is completely understandable.”
VOTE FOR YOUR FUTURE All dairy farmers are urged to have their say in the milksolids levy vote now underway. DairyNZ represents all New Zealand dairy farmers. The levy is invested in practical on-farm tools, research, resources, support and advocacy to ensure farmers can respond to change and access opportunities.
VOTE ONLINE OR BY POST BY 30 MAY
This is an important vote and every vote counts.
VOTING
IS NOW OPEN
17 APRIL - 30 MA Y 2020
YOUR LEVY , YOUR FUTURE
Keep an eye out for your voting pack in the mail. For more information on where your levy goes, visit dairynz.co.nz/vote
YOUR LEVY, YOUR FUTURE
News
18 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Soil carbon still needs more work Annette Scott annette.scott@globalhq.co.nz
WORK TO DO: Soil nutrition consultant Paul Smith says soil degradation figures show New Zealand might not be as flash as it thinks it is. Photo: Annette Scott
NUTRIENT management has quickly become the latest farming buzz term and indications are New Zealand might not be as good at managing soil degradation as it thinks it is, soil nutrition consultant Paul Smith says. Speaking at a recent regenerative soil solution conference at Lincoln University Smith presented
Sending animals off to grazing?
figures from soil health indicator research comparing 1995-2008 with 2009-13. “Indications are we may not be so flash as we thought,” Smith said. With a background in agriculture, eventually owning his own high country sheep and beef farm, Smith has been researching soil carbon, it’s role in climate change, international practice and NZ’s options. Working with Hawke’s Bay fertiliser company Abron, Smith has followed an American soil carbon project using regenerative agriculture and adaptive multi-paddock grazing. Changing from conventional to no-till in 2007 Smith tracked down the Wisconsin project and started working with it. “Now we do have an international means to measure,” he said. Regional plans will affect future land use and farming intensification options or require changes to farming systems. So farmers are looking for higher production and profitability while consumers and local authorities are demanding it be done in an environmentally sustainable way.
We can help save the planet, It’s got potential to be huge but we need more information.
The movement must be recorded in NAIT
Paul Smith Soil consultant
• Farmer must create the sending movement • Grazier must confirm the movement (or create a receiving movement).* Need help? Call 0800 482 463 or contact your information provider.
* Failure to record and confirm farm to farm livestock movements in the NAIT system may result in a $400 fine per animal or prosecution. The requirement to record livestock movements within 5 business days in the NAIT system is temporary and will return to 48 hours after the National State of Emergency is lifted.
Adaptive multi-paddock (AMP) grazing with long rotations letting grass grow long rather than continuous grazing is proving an option for NZ soils. “With our heavier soils and rainfall in NZ we can actually increase soil carbon quite fast. “There are some systems out there but they are really only just getting off the ground.” In Canada, Alberta is managing an offset system, a model measuring conventional to conservation cropping. Australia is progressing with a carbon farming initiative that measures soil carbon changes under grazing, cropping and horticulture with provision to sell carbon credits. NZ is still to get up and running with its on-farm soil carbon benchmarking and monitoring for pastoral farms. “It’s in discussion, the Ministry for Primary Industries has not released it yet. “But it looks hopeful that we can get one that we can rely on and we can use. “But there’s no mechanism in it yet that credits carbon.” Smith said the soil monitoring is not comparing farm systems so there’s no idea really of differences between systems. “We can help save the planet. It’s got potential to be huge but we need more information.” The models need to show soil carbon in the same soil types can be increased with different management. The bottom line is healthier soil, pasture and animals meaning healthier financial returns, Smith said.
Contact us NAIT is an OSPRI programme
ospri.co.nz
Editor: Bryan Gibson Twitter: farmersweeklynz Email: farmers.weekly@globalhq.co.nz Free phone: 0800 85 25 80 DDI: 06 323 1519
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FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
19
Covid tracker keeps people OnSide Richard Rennie richard.rennie@globalhq.co.nz FARMERS, growers and contractors grappling with staff and property access over the covid-19 crisis have a New Zealand-built app giving them peace of mind that staff are safe and lockdown rules are being met while work goes on. OnSide, a farm access app developed four years ago, has come of age in the covid-19 outbreak, gaining support from industry groups and farmers alike for its ability to check farm visitors in and track their on-farm movements. OnSide sales and marketing manager Sam Jones said the smartphone app has moved a step beyond the original intent, which was to meet increasing health and safety regulatory demands. Originally a subscription model, OnSide’s latest free app iteration means anyone entering a farm property can register their presence, accept the access rules that now include covid-19 requirements and be tracked. A farm owner can chat with other users, eliminating face-toface contact. “Should one of your farm visitors then find out they have
covid-19 they can notify the farm owner and it is possible to track who else they were around and where they went during that particular visit, making trace back a lot simpler.” For a paid subscription farm health and safety requirements can also be added to the app with specific farm risks and hazards highlighted on a farm map. Jones says adoption of the app has accelerated rapidly over the lockdown as regulations require essential industries to have clear policies and procedures around covid-19 management. “The uptake around regions like Bay of Plenty has been exponential.” The company has not intended to capitalise on the distress covid-19 is causing but a phone call from a client crystallised its purpose. “They said the free version was perfect if you wanted to stay open and operate within the new rules. “He pointed out to me that it would be little use knowing we had something that was so applicable and available after the crisis.” Industry endorsement has included avocado company Avoco, Beef + Lamb, Federated Farmers and Horticulture NZ
recommending it to members. With about 15,000 rural properties on board it is conceivable it could ultimately be used for biosecurity mapping and predictive purposes, he said. “And we are working with a number of industry organisations on this front. “Industries like pork are particularly interested in this given the real risks of African swine fever spreading through Australia to here.” The subscriber level of the app for health and safety has OnSide maintaining an open platform approach to health and safety companies that provide services to farm and contractor operations. “So, rather than just being the company that hands the client a health and safety folder, the company can remain engaged with that operation’s success in implementing their plan. Any incidents will be recorded on the app and can be viewed by the health and safety company, who can advise on how to deal with it.” The company, which includes Synlait founder Juliet Maclean among its backers, has also developed the Teams app for contracting businesses. It lets big contractors with many staff more easily keep track of
Mates’ rates. We work with our mates at Farmlands, Farm Source, PGG Wrightson and Ruralco to make paying your bill a piece of cake. And between us, if you’re after a sweet deal on pricing, discounts, and rewards*, we’ve got your back on that too. Give us a call on 0800 496 444 or visit meridian.co.nz/agri *Terms and conditions apply. Visit meridian.co.nz/agriterms
IN PLACE: The OnSide app will indicate who is where on the farm property.
their locations and safety. Failure to report in after a predetermined time will send an automated message and ultimately call the manager to notify the member’s failure to respond.
Jones said the future holds more potential for biosecurity mapping. “But right now we feel we can be the go-to company for keeping staff safe on-farm.”
News
20 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Veg growers to work on emissions Annette Scott annette.scott@globalhq.co.nz POTATOES New Zealand has secured $5 million of Ministry for Primary Industries money giving the green light for a nationwide project to transition crop production to more sustainable land management. The multi-stream project is designed to protect industries’ ability to grow, process and export products while meeting environmental standards and maintaining international competitiveness. In February Potatoes NZ adopted a new strategic objective of zero net emissions by 2050. It is now one of three central objectives for the sector including doubling export value by 2025 and increasing domestic value by 50% by 2025. Communications and engagement officer Gemma Carroll said PNZ is focused on reducing emissions while continuing industry growth. In September PNZ launched the Emissions Taskforce, underpinned by a multi-workstream project knows as the Emissions Project PNZ 79. Earlier this year the project expanded and became the Sustainable Vegetable Systems Project (SVS) to reflect its relevance to the whole vegetable sector. It included the expansion of industry stakeholders to include leafy greens, onions and brassicas and adjusted the focus of some workstreams with the goal of eventually extending the tools and outcomes to all in the vegetable sector. With Onions NZ, Vegetables NZ and Horticulture NZ on board, PNZ applied for MPI Productive Sustainable Landuse Funding. “We have just this month had $5m confirmed in what will now secure NZ vegetable production for NZ growers and consumers,” Carroll said. PNZ will lead the project with an independent project manager and a governance committee with representatives from all
INFORM: Growers will be kept informed of updates at industry events such as this field trial update in Mid Canterbury.
Potatoes New Zealand has observed the push to transition to more sustainable production practices and we’ve not sat on our laurels. Gemma Carroll Potatoes NZ stakeholders, including MPI. “The SVS project is a multistream nationwide project that will transition crop production to more sustainable land management practices while growing resilient communities and economies.” The project data will inform industry and MPI on practices and help develop new system strategies and tools to manage leaching. The project will analyse nitrate uptake and nutrient leaching, investigate nutrient modelling and validate Overseer predictions for
potato and vegetable crops. “This will result in a suite of tools to help growers implement good management practice and provide leaching assessments to regulators.” It might also involve adapting existing tools, such as Overseer. “We will build on existing management practices in industry codes of practice and further equip growers with the tools and capabilities to address nutrient management risks identified in farm environmental plans. “This will help growers transition to a more sustainable future and maintain farmers’ licence to operate.” Carroll said Overseer is not informed by empirical data specific to NZ vegetable crops, growing conditions and management practices used by growers of potatoes, onions, brassicas and other field crops. “This lack of data limits the ability to reliably use Overseer in these systems and in turn affects the trust that growers and regulators alike can have that farm practices are environmentally and economically sustainable.”
The outcome of this project will be a greater understanding of nitrate and nutrient management and an informed means of measuring environmental impact based on sound scientific data. “This will help growers improve their nutrient use efficiency through the adoption of best management practice.” Plant and Food Research will be the primary research provider with trials already under way. “Plant and Food will also provide modelling expertise and we will work with them to ensure research is translated into real impact for our industries.” Carroll said the potato industry has a strategic goal of doubling exports from $130m to $250m by 2025. “To do this we need to have a social and regulatory licence to increase the area planted by 30%.” The industry’s expansion is driven by the increased export of frozen French fries, a value-added market where NZ is the ninth largest exporter globally and is growing in emerging economies and regions such as southeast Asia.
Photo: Annette Scott
To meet the market growth farmers need access to another 2500 hectares of growing land and need to increase productivity. Suitable land access is not permanent with rotational cropping the best practice for pest and disease management. “Potatoes NZ has observed the push to transition to more sustainable production practices and we’ve not sat on our laurels. “We predicted that these new sustainable practices would require data-based decision systems and support to enable local and central government to develop policy that supports and sustains industries. “Our project will enable growers to make sustainable decisions economically and environmentally and ensure government targets are met,” Carroll said.
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Ten Basic Fertiliser Facts You Must Know and Adopt to Meet 2025 Water Quality Limits: Dr Bert Quin
Fact 1. The overuse of soluble P fertiliser is by far the largest cause of P run-off and leaching, and therefore of the decline in the quality of Kiwi waterways. Fact 2. Once you have Olsen P levels that are more than a third of the P retention (ASC), application of additional soluble P is very prone to loss to the environment. Fact 3. If you want to build up your soil P in an environmentally-protective way, simply apply RPR. It does not get leached or lost directly in run-off, but releases P in a sustained fashion for plants. Fact 4. There is nothing to lose and everything to gain. RPR-based fertilisers are even cheaper than super-based products as well! Added sulphur bentonite (sulphur 90) is far more efficient than the excess sulphate in super. Fact 5. Following 1-4 above will greatly reduce P run-off and leaching. This should be done before anything else, and the situation reassessed before spending huge amounts of money! Fact 6. It is nonsensical to give in to pressure to install expensive mitigations riparian strips, excessively large wetlands and ‘phosphorus walls’ when you have no idea of their long-term effectiveness and maintenance costs, and before you have established whether changing to sustained-release RPR is all you need to do! Fact 7. in any case simple fenced-off 3-metre wide grass riparian strips are essentially as effective and vastly cheaper than more complex strips. Both reduce bacterial and sediment losses. Neither will have any significant long-term beneficial effect (on a whole -farm basis) on soluble P and nitrate-N loss. But grass strips can be harvested in summer to be fed out, to improve P and N cycling. Fact 8. In a nutshell, for maintenance of P levels any genuine RPR (not an RPR/Boucraa mix please!) can be used. Just check the Cd content. For low fertility situations or low rainfall, use a blend of RPR and high-analysis soluble P. Fact 9. For N, rather than granular urea, use prilled urea, sprayed immediately prior to, or during, the spreading with urease inhibitor. Use of N can be literally cut in half with big savings. Fact 10. Potash is more efficient, and must less likely to cause metabolic problems, if applied in small doses 4 times a year, adding up to 50-60% of the total annual amount you are using now. Easy to mix with your prilled urea. Leaching of anions like nitrate will be minimised as well. For more info, email Bert Quin on bert.quin@quinfert.co.nz, or phone 021 427 572, or visit www.quinfert.co.nz
AginED ED
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FOR E FUTURIA G R R S! U PR EN E
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Volume Three I April 20 2020 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz
Photo of the week: Archie Dennis-Milne
In your paper 1 Take a picture of what you have been doing on your farm during the lockdown. 2 Go outside draw us a picture of your outlook. 3 Write a caption and share them on our Facebook page or email to agined@globalhq.co.nz
STRETCH YOURSELF: 1 Choose an article from the opinion section and form a response to the writer. 2 Tell us why you chose this piece/topic and send us your response to agined@globalhq.co.nz Archie Dennis-Milne, 5 years, gets to work grubbing thistles in Blueskin Bay, Otago.
Have a go: 1 Go to www.farmersweekly.co.nz 2 Find and watch the OnFarmStory on Ella Wharmby, “You do get attached to them”. 3 Where in New Zealand is the farm that Ella works on?
STRETCH YOURSELF: 1 What was the degree that Ella studied? 2 How much of this farm is a milking platform? 3 What are the other parts of the farm used for? 4 How much milk solids does the farm produce annually on average?
1 Go to the AgriHQ Market Snapshot page. 2 What is this week’s South Island Lamb price? 3 Is this better or worse than last week? 4 How does it compare to last year?
STRETCH YOURSELF: 1 Look at the NZ beef exports graph. 2 In which month and year were exports to this destination at the highest level? 3 How many thousand tonnes of NZ Beef was exported in March 2020?
FILL YA BOOTS: 1 Have a look at the jobs on offer, which would you like to apply for and why? 2 Find the weather page, what is the soil moisture level in your area? 3 Have a look at the adverts and choose one piece of farming machinery or equipment, how would this help on your farm?
* Share your AginEd photos on our Farmers Weekly facebook page * Remember to use the hashtag #AginEd * Letters to: agined@globalhq.co.nz
We may choose your letter to feature in Ewe said!
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SCAVENGER HUNT 1 Find and identify three different types of birds around your property. 2 Find and record the names of two different types of weeds. 3 What effect do these weeds have on your property if left unchecked?
Newsmaker
22 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Belligerence sparks union career Pretty much every aspect of the meat industry was blood and guts when Graham Cooke started working at Horotiu in 1968. And that was just the employeremployee relationship. On the eve of his retirement the national secretary of the Meat Workers Union tells Neal Wallace that in later years those relationships have mostly improved.
I
T WASN’T a social justice or political calling that led Graham Cooke to a career as a trade unionist but the actions of a belligerent union branch secretary. Cooke, who retires on April 28 as the New Zealand Meat Worker’s Union national secretary, was raised in a family that was not politically active and traditionally voted for the National Party. Politics never interested him. He never voted as a young man, even when he was a university student and was exposed to more radical political activity. Cooke says he is driven by a conviction everyone should be treated fairly though he did not see that or any other aspecta of life as a political issue. That changed when he unseated a belligerent union secretary in branch elections. “I didn’t see room for politics in the union. When I was elected I realised politics goes into everything we do.” Cooke started his meat industry career as a seasonal worker in the fellmongery at Affco’s Horotiu works in 1968. One of 1651 employees, it was a means to fund his business management studies at Victoria University but it nurtured a deeper interest in the meat industry. In 1978 he went to the Ruakura Farmers Conference to listen to the then Minister of Labour Peter Gordon, Meat Industry Association chief executive Peter Blomfield, Federated Farmers chairman J B Falconer and Meat Workers Union secretary Blue Kennedy. Cooke was so impressed by Kennedy’s speech he suggested to the Horotiu sub-branch secretary that Kennedy be invited to speak to the workers. He got a less the cordial response and, unbeknown to Cooke, he had stepped into the bear pit of inter-union politics. Kennedy represented a separate union entity. There was little love between Kennedy’s union and
Cooke’s Auckland and Tomoana Freezing Workers Union. So disgusted was Cooke by the response he successfully stood against the incumbent secretary, starting a lifelong career in the union management. His business management degree was initially abandoned by the challenge of funding the purchase of a share in yacht to sail to the America’s Cup then by marriage and the rapid addition of two children. One of his first challenges as a union official was dealing with the fallout from the 1981 Meat Act, which deregulated the meat industry and saw Affco close its Southdown plant. The closure became a flashpoint in a nationwide dispute between employers and unions over the obligations of paying redundancy. In 1987 Cooke was elected secretary of the Auckland and Tomoana Freezing Workers Union and became one of 10 union assessors negotiating the NZ Freezing Worker’s Award with employers. He described some of his union colleagues at that time, such as national secretary Jack Scott, as rugged individuals, which meant relative youngsters like Cooke had to learn how to rephrase and promote ideas to win the support of their superiors. Cooke is not a fan of the use of strikes. “The employers lose out, we lose out and it wasn’t a satisfactory way of resolving issues.” But that did not preclude strikes as a tactic for making a point or changing the way employers look at a point. As a union assessor and collective agreement negotiator Cooke and nine union officials sat opposite 10 meat company representatives and it was there Cooke met a formidable negotiator. Former lawyer Anne Knowles was employed by the meat industry as its industrial executive and legal adviser. On
TOUGH EDUCATION: Retiring Meat Workers Union secretary Graham Cooke was schooled in meat industry politics in its blood and guts days but prefers the more harmonious and collaborative atmosphere that now prevails.
“I didn’t see room for politics in the union. When I was elected I realised politics goes into everything we do. Graham Cooke Meat Worker’s Union
her appointment union leaders joked that having a woman at the negotiations might reduce the amount of swearing. It did, but she was so imposing and able the unionists also concluded she had ice in her veins. Cooke says she researched every arbitration decision by the then
equivalent of the Employment Relations Authority to see if it could be applied to the meat industry in the employer’s favour. That approach had a negative impact on the industry because it tried to screw the advantage in favour of employers. The 1991 Employment Contracts Act also screwed the scrum in favour of employers, which, Cooke says, took years for employment conditions to recover though not to the level they were before the legislation. Because it restricted union coverage those working for a new business could be paid less and with poorer conditions than those working for the same company in an existing role or site. The 1999 the Helen Clark-led Labour Government changed the legislation and Cooke says the union was able to renegotiate some parity.
By 1994 meat workers were served by two unions but the collapse that year of the Weddel meat company, which overnight lost Meat Union Aotearoa’s 2200 members with the closure of the Tomoana, Feilding, Aotearoa, Whangarei and Kaiti works prompted the unions to restructure. In 2005 Meat Union Aotearoa joined the NZ Meat Workers Union as a branch. “This transformed the way the union operated. “Meat companies found it easier to work with one union than a disjointed and undisciplined bunch of members. “The NZ Meat Workers Union found one voice and delivered better results.” In 2012 Cooke was appointed the union’s national secretary, which confirmed for him a trend that he had been observing: workplace relations with most companies had markedly improved. “There seems to be a diversification of people running the meat companies that see an importance in working together. It is a change on 40 years ago which, to put it bluntly, was a blood and guts industry.” He singled out Anzco chief executive Peter Conley and Simon Limmer, the chief executive of Silver Fern Farms as initiating sector co-operation. Virtually all companies want to work constructively with unions in areas such as productivity instead of slashing wages and conditions, Cooke says. There is lingering animosity with Affco, which, he says, is anti-union and highlighted by a lengthy dispute that culminated in the 2012 lockout of workers. Cooke describes it as the most vicious dispute he dealt with, splitting families in small communities such as Wairoa. On one side were those who had signed individual contracts with Affco and on the other those who had signed the union’s collective agreement. Cooke has a love of yachting which he will pursue in retirement. His two sons Rohan and Simon both represented NZ in yachting at Olympic level, sailing the 470 class. Now he is looking forward to teaching his grandchildren the art of sailing.
Tomato crop demands more staff Richard Rennie richard.rennie@globalhq.co.nz A BUMPER tomato crop is creating a shortage of workers to harvest and process the fruit. An exceptional growing season and surging supermarket demand have put pressure on Wattie’s staff, particularly in the Hastings processing plant. The demand and crop size have the company seeking 200 extra staff to join the ranks of the 1000
already employed in Hastings while shortages also start to bite in Auckland and Christchurch. Hastings Mayor Sandra Hazlehurst has added her voice to calls for more staff to support essential food producing companies in the region. She is focusing on ensuring people who have lost their normal jobs are aware of other opportunities. Hawke’s Bay Regional Councillor Jerf van Beek, who was
instrumental in establishing the Recognised Seasonal Employer scheme, is confident the jobs will ultimately be filled. “Once we get to Anzac Day we will have most of the apple harvest completed and RSE workers can move to other jobs being essential workers. I do also believe the people will be there for these jobs. “At present the wage subsidy may be holding some back, taking a wait and see approach on their old jobs. But in coming weeks
they may find those jobs are not there and people don’t want to be heading into winter unemployed.” An increasing amount of RSE accommodation is becoming available though not all is suitable for people with families. Heinz Watties managing director Neil Heffer said with tomato harvesting scheduled to continue until April 22 social distancing requirements have had to extend to field harvest operations.
Precautions have extended to shift changes, operation distancing in processing areas and seating arrangements in staff cafeterias. “Our people there and in the other plants have been amazing and we take our hats off to them. They have had to deal with altered family situations, households in lockdown and new workplace protocols and they come to work eager to do what they can.”
New thinking
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
23
We’re buying our own wood back Technology developed by the New Zealand forestry sector more than 20 years ago and now used overseas could still offer some value-add options for Kiwi foresters today. Richard Rennie spoke to industry experts on how acetylising wood processing technology can turn pine into a high-value building product.
A
BRITISH firm is using a process developed in New Zealand to turn pine logs into high-value building timber then selling it back to Kiwis. The fast-growing NZ pines are among the most suitable to be turned into high-value building material that can be used in place of hard woods by the acetylation process. The British firm Accsys uses that process, partially developed in NZ by Scion predecessor the NZ Forest Research Institute, and bought by Accsys in 2006. The process alters molecules in the wood, modifying its physical properties to protect the timber from wood-eating insects and organisms without the use of the usual toxic preservatives. It is known by its trademark, Accoya. The sale enabled the technology to be scaled up from its initial pilot plant plan that wasn’t built in NZ at the time. The technology was touted as a method to create a hardwood type wood as an alternative to harvesting endangered tropical hardwood trees. Today the attractive wood product has applications for decorative building finishes but also forms the basis for weather-proof, leak-proof core construction material. It is also
used for decking, window frames and even to line canals. Forest Growers Research chief executive Russell Dale laments the loss of the technology. He believes there could still be potential for such a plant to be developed here, given the demand for the product and the valueadded margins embedded in it. “You are taking pruned logs at $180-$200 a tonne and converting them to a product valued at $3000-$4000 a tonne. It sounds like a good option.” NZ pine is felled, sawn, dried, shipped to Europe and processed as Accoya only to be shipped back here as high-value building material. However, Dale is also realistic about the economics of long-term forestry plantings in NZ. “If you went that way you rely on pruned logs to supply the plant and owners still have to make that significant decision about pruning in the hope there will be a market to pay the premium for that cost in 25-30 years’ time.” Most big central North Island forestry operators have now chosen to cease pruning, opting for the industrial log market in China rather than incur the higher pruning costs. But the slide in log prices last year and again because of covid-19 has exposed how vulnerable NZ is to such a market. Dale said for many smaller farm
LONG HAUL: Russell Dale questions the loss of income from sending timber to Europe and getting it back again as a finished product.
forestry owners pruning logs to supply an Accoya type plant is quite feasible. It is a way to hedge their bets against another slide in log values. Premiums for pruned logs run at about $60-$70 extra a tonne over unpruned. Long-time farm forester Dennis Hocking said the technology ticks the boxes for its nontoxic, sustainable, value-added opportunities. “NZ is also one of the very few places in the world where we do prune our pines. Thanks to our shorter growing time the return is always sooner than you would get in the northern hemisphere forests.” He suspects having a plant in NZ with the technology might be unlikely but there could be more opportunity to expand the supply NZ delivers to the European company producing Accoya. “No doubt, pruning is labour
intensive but it could also prove a worthwhile investment and employment source in these forests in coming years.”
You are taking pruned logs at $180$200 a tonne and converting them to a product valued at $3000$4000 a tonne. It sounds like a good option. Russell Dale Forest Growers’ Research His own operation is 50:50 forestry to farm and he credits the higher-value pruned harvest
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from his forestry operation for keeping the operation viable and profitable. Wood Processors and Manufacturers chief executive Jon Tanner said certainty of supply and quality are critical for providing the feedstock to a capital-intensive acetylising plant. “One of the problems in NZ is this is a long-run business but most forest estate is owned privately. “This is unlike in Europe where government ownership lends more longer-term certainty and therefore underpins investment. Even pension funds here which we thought would provide that longer-term view are now reconsidering their investments in forestry after only seven years.” Dale said it is a tragedy the technology developed here in NZ was not picked up at the time.
Opinion
24 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
EDITORIAL
Covid is not an excuse to let up
T
HE covid-19 pandemic has thrown the world into turmoil as nations try to minimise sickness and loss of life. The social and economic impacts of the virus and the lockdown to stop its spread will be long-lasting and hard to navigate. As usual, there are opinions circulating about whether the response in New Zealand has been the right one. Have our measures been too strong? Not strong enough? Is the medicine worse than the cure? These reckons usually compare where we are now with where we were, though, which is a false comparison. Businesses are struggling while shut but they would have struggled just as much if the virus took hold. Farming, of course, is an essential service and while it is tough going in the industry milk is still being collected and stock are still being processed. Some in the industry have picked up on things like the reduction in greenhouse gas emissions during the lockdown to point the finger away from their own responsibilities to the environment. That is foolish. Agriculture’s need to progress its sustainability credentials are the same now as they were before covid-19. Yes, with less money in the economy there will be less to spend on mitigations in the short to medium term. But the rhetoric must remain the same, that farmers want to do their bit. The agreement reached on the Zero Carbon Bill that saw agriculture retain control of its own destiny was a win all round. It took a common goal and a willingness to work with the Government to bring about a solution that can work. Now, on freshwater reform, the industry is looking to do the same thing. Let’s hope it is successful. Throwing stones at the cities is no way to set farming up for such an agreement. If this pandemic has taught us anything it has taught us these major issues affect us all equally and that communities, industries and the nation must work together to reach a common goal.
Bryan Gibson
My dark days at home in feijoa hell Gerald Piddock gerald.piddock@globalhq.co.nz WHEN I look back in years to come about my period in lockdown I’ll remember the feijoas. The green fruit seems to polarise people into two camps – they either love them or hate them. I’ve got my feet in both. Let me explain. The house I rent in Hamilton has a large tree heaving with this fruit. It has been falling on the ground by the dozen every day since the country went to level four. So, of course, I collect them. Who really knows when this country will move back to normality so, like one of those supermarket fiends hoarding toilet paper and flour, it’s become a ritual for me over the last three weeks: collect, core and freeze. I now have bags of them in my freezer and in what must
rank as the ultimate of first world problems I am running out of freezer space because it is filled with the bloody things. I live near a major public thoroughfare where hundreds go by on their daily walks and cycles and have left large boxes for people to take, which they have done. My relationship with this fruit has evolved from early joy to tolerance and now just blind hatred where I force myself to eat them. This is the heavy burden I’ve carried over the past three weeks. Of course, I do save and eat some fresh, throw them in the NutriBullet and use them in crumbles, baking and anything else I can think of. I’ve had to. In a moment of shopping madness, I recently bought a 20kg bag of flour, despite there being plenty of bread available at my local Pack N Save.
NOT ALONE: Gerald Piddock has a continuous supply of feijoas and a 20kg bag of flour for lockdown company.
What that means, of course, is whatever happens in the future with covid-19 I can survive the apocalypse on a diet of baking and feijoas. I also had the crazy notion of being able to go to Tauranga to my parents’ home and offload some feijoas in exchange for their breadmaker, which is sitting idle. It’s not worth the risk. If I was stopped by a police officer I’m pretty sure I would lose an
argument over such a journey being qualified as essential travel. There is light at the end of this darkest of tunnels. The fruit quantity falling on the ground has slowed significantly in the past week and I’m down to my last fruit bowl, which will probably be destined for the giveaway box outside my letterbox. My feijoa hell is slowly coming to an end. Thoughts and prayers.
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Opinion
FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
25
Environment moves must be fair Andrew Morrison
T
HE past few weeks have served to remind New Zealanders about the importance of the country’s primary
sector. Food has become big news. Every day the media brings us stories of supermarket queues, panic buying and supermarket workers going the extra mile to try to keep shelves stocked against a rising tide of worried consumers. As farmers we are fortunate to be able to continue producing nutrient-rich food for our nation and our export markets. Agriculture is one of the few industries generating export income and we are privileged in the extent we can continue to operate, even though it might not always feel that way. This virus is indiscriminate and we all need to take steps to prevent its spread among farmers, rural communities and our processing sector. Many farmers are sole operators, which puts their businesses at particular risk if they fall ill. Processors face disruption if there is transmission among people in their plants. We cannot take our eye of the ball when it comes to following strict health and safety protocols. Covid-19 will have a significant impact on many aspects of our society and has led to a rethink around the importance of farming and food production to our society and our economy. It has also shown the vulnerabilities of industries such as tourism, international education and forestry. Recent surveys have shown a renewed awareness and appreciation of farmers by the wider public and this is extremely gratifying. As NZ charts its way to economic recovery it is critical our sector provides jobs and export revenue and invests where it will drive returns for the country.
In this regard the Government needs to take a more considered and collaborative approach to environmental policies to deliver the environmental outcomes we all want while not restricting the export revenue, employment and wellbeing so desperately needed by New Zealanders. For example, the essential freshwater proposals threaten to do the opposite. We’ve committed as a sector to keep playing our part in protecting the environment. That’s not in question. What we are saying is the Government needs to take time to reflect and ensure the alignment and fairness of policies. It’s vital it also understands the scale of impact and focuses on quality and long-term outcomes. For sheep and beef farmers the proposed regulatory burden from water, climate change and biodiversity far outweighs their environmental impact and the planned reforms in these areas are unacceptable. We need to protect our planet and natural resources but in doing so we need any policies to be proportionate to their impact on the environment. Beef + Lamb welcomed the Waikato Plan Change One decision last month where independent commissioners recommended a more flexible management framework for farms with a light environmental footprint and rejected the original grandparenting proposal, a mechanism that effectively rewards high emitting land uses. The Government needs to use the Waikato Plan Change One decision as an important precedent when considering its Essential Freshwater policies. The Climate Change Commission has urged the Government to continue with its reform of the Emissions Trading Scheme. We support efforts to improve the ETS so it achieves actual reductions of greenhouse gas from fossil fuel emitters. However, in its current form, the proposal simply incentivises
REFOCUS: The Government must take aim at fossil fuel users rather than farmers in its environmental measures, Beef + Lamb chairman Andrew Morrison says.
The
Pulpit
fossil fuel emitters to offset their emissions by planting exotic trees on farmlan rather than reducing those emissions. This will be exacerbated as the carbon price rises as the cap will be lifted through the proposed reforms.
Without limits on the volume of greenhouse gases that can be offset we can expect an acceleration of sheep and beef farms being converted to pines. The Climate Change Commission told the Environment Select Committee the lack of limitations is a gap in the proposed legislation, one we believe could lead to severe consequences for our sector and communities. It is vital the Government ensures there is a mechanism to limit offsetting by fossil fuel emitters in this reform. I want to stress that agriculture is not using the devastation wrought by covid-19 to wriggle out of taking responsibility for its environmental impact. We cannot and will not do that. But it is more important than ever the Government ensures its policies take a holistic approach and consider exports, employment and the environment so NZ can get back
on its feet as quickly as possible in a sustainable way. We strongly encourage the Government to follow the codesign partnership approach taken with climate change and the establishment of He Waka Eke Noa across other policy areas. Covid-19 has shown us as a society we can all pull together when we need to. We have seen bipartisan leadership and we have all been prepared to make sacrifices to protect our communities. Let us carry that spirit on.
Who am I? Andrew Morrison is chairman of Beef + Lamb.
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
LETTERS
Bad times are ahead for the private sector THE longer we go and the deeper we get into this disastrous covid-19 virus the worse things will be for the private sector. Alan Emerson keeps singing the praises of our Prime Minister Jacinda Ardern’s handling of the Government response and I won’t argue with that but further down the line things are going to hit the fan. Apart from Adern, the occasional announcement from Grant Robinson and Health Minister David Clark there is no one else saying anything much publicly in the Government ranks. A serious worry that talent in the ranks to get New Zealand up and running again is very thin on the ground indeed. Thousands in the private sector will lose businesses and
jobs while we have an everburgeoning army of government employees not only continuing to be paid but given an income raise as well. Then we get the beneficiaries getting an increase, a boost to the warmth subsidy and another huge dollop to the doomed Pike mine project to satisfy a very small number of people. We have to keep the political fires burning though and obviously greenkeepers aren’t of any political value here. We need to be very mindful as and when we come out of this mess the country does not fall into a communist-type state of mind. Philson Sherriff Marton
Subsidies not the answer THE article in the April 13 edition of Farmers Weekly regarding the intention of Forestry Minister Shane Jones to politicly limit log exports to, effectively, have foresters subsidise local wood uses raises concerns. This country turned its back on this economic approach 35 years ago and no government to date has shown any inclination to return to it. In 1973, after a period of depressed returns, the price of export meat rebounded. The government responded with the Meat Price Reference Scheme to have duel pricing, with lower rates for domestic consumers. It would have been unworkable but, in any case, never took flight
before the export price proved to be a spike and subsided. In fact, a few years later we were rendering down lamb because we were over-supplying the market, that too being he result of political interference in production rather than the market. The Kirk Government also tried to introduce an even more unworkable stunt, the Maximum Retail Price scheme where bureaucrats would establish how much a manufacturer could charge for his product. Its first staggering steps proved to be its last and the government’s too, for that matter. Like other commodities, the future of log prices is uncertain, as it always has been, but certainly so now. If the local buyer meets the market he’ll get the logs. Why
should a forester who has spent 30 years growing and managing a tree have his market freedom restricted to satisfy a political interest? Jones says his message to log exporters is they have had their rights for profits by selling in a laissez faire way but they also have an obligation to fellow New Zealanders. He also implies log exporters owe the country some payback for the Government’s Billion Trees planting programme and simplifying foreign ownership rules. The connection between this and the interests of the owner of a mature forest ready to harvest remains obscure. Ewan McGregor Waipawa
Opinion
26 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Everyone is on the right track Alternative View
Alan Emerson
WHEN you read this it will only be a few days before, hopefully, we move downwards from level four. In our area of the country people have played by the rules. There’s been little traffic on the road and few have needed to drive into Masterton and risk the supermarket. Playing by the rules has worked for the country. Saying that, I’d love the Government to introduce instant fines for breaking the lockdown. I’ve been proud of how our politicians and representatives have worked over the crisis. I’ve mentioned Agriculture Minister Damien O’Connor on previous occasions and he’s worked behind the scenes doing a great job. New Zealand First’s agriculture spokesman Mark Patterson has been active as well. He certainly understands the issues and is prepared to fight on our behalf. I’ve been similarly impressed with the understanding of the sector by National’s Todd Muller. As a sector we’re fortunate. What’s really impressed me is the work of Federated Farmers. In times of crisis it’s easy to blow it by either going too hard or too
soft. I believe Feds has played it right. They’ve represented our interests firmly and factually. Getting that balance isn’t easy. Everyone has stepped up. Chris Allen fronted Friday Flash, the Feds weekly e-newsletter acknowledging up front the Government has handled the covid-19 crisis well. He talked about returning to normal and smart, green investment in the primary sector. He then provided a link to Parliament’s powerful Epidemic Response Committee chaired by Opposition leader Simon Bridges with all parties represented. Feds president Katie Milne and vice-president Andrew Hoggard fronted the committee from their farms with Hoggard having some technical difficulties. As well as Bridges there’s heavyweights like National’s Paula Bennett, Paul Goldsmith and Michael Woodhouse, Labour’s Ruth Dyson, Michael Wood and Kieran McAnulty, Green Party co-leader Marama Davidson and Act’s David Seymour along with NZ First representative Fletcher Tabuteau. I’ve covered more Parliamentary committees than I care to remember and I don’t think I’ve seen a better all-round performance than that from Katie Milne. She appeared relaxed, sounded confident and certainly knew her stuff. She told it as it was down on the farm. She started by acknowledging
STERLING: In a remarkable performance Federated Farmers president Katie Milne left politicians in no doubt what life is like for farmers.
the seriousness of the situation and explained the broad representation Federated Farmers enjoys. She explained the issues with the drought compounded by covid-19, Mycoplasma bovis and difficulties with meat processing. That farmers need to stay healthy and there are still non-essential jobs on the farm like track maintenance that have to be done before winter. Farmers are conservationists but want the Essential Freshwater reforms to be halted and properly costed. She pointed out if the reforms don’t go ahead farmers will still protect the environment. It stuck me that a way forward for the Government would be to have a reform package for all water not just rivers in rural areas. That would include harbours and urban streams. You can get just as ill from a polluted harbour
as you can from a polluted river and many more people swim in harbours. In addition, many rivers are fine in rural areas but become polluted when passing through towns and cities. Milne gave Trade Minister David Parker strong support for his work keeping our borders open. I agree. She described the situation on farms clearly, painted farmers as responsible, conservation-minded people who care deeply for the welfare of their livestock. She also supported the Government’s infrastructure thrust talking of rural broadband and the need for improved roads and bridges. Question time was interesting. Asked about Moving Day the politicians were told Feds is working with the Primary Industries Ministry. It was acknowledged the only real way out of the crisis we are in
through no fault of our own is with food production and that farmers produce food. Free trade must be maintained, subsidies eliminated and NZ farmers are the world’s most efficient food producers. The Green Party expressed support for what farmers are doing for the environment and talked of employing Kiwis in the provinces, on farms, with pest control and helping to eliminate wilding pines. At the end of the committee hearing no politician would have had any doubt about what life was like on the farm today, the reality, the challenges and the threats and opportunities. It was a remarkable performance. The board of Feds is focused and effective. As well as Milne, Hoggard and Chris Allen there’s little happening in dairying Chris Lewis isn’t on top of. Miles Anderson has already appeared in Farmers Weekly talking about rural security under covid-19 and there isn’t a cropping farmer in Wairarapa who wouldn’t support Karen Williams. The road ahead is rocky but we are privileged to have the politicians supporting our sector in Parliament and Federated Farmers representing grassroots farmers and doing it well.
Your View Alan Emerson is a semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com
Daily survival trumps activists’ doings
LK0100740©
I’M LOOKING forward to level three primarily because I was so frantic during the two days when it last happened I completely missed it. I’m glad I’m not the one in charge of making the decision to relax the restrictions. Go too
Heavy duty long lasting Ph 021 047 9299
early and undo all the good work of recent weeks and, even worse, the pain and ruinous economic impact were for nothing. Go too late and the ruinous impact will be even more ruinous. But we are starting to get our heads around the consequences of what we are going through and just how the new world order will be quite different to BC, which now means Before Covid. PC will have a new connotation. The obvious casualties are the tourism and airline industries that are already in serious trouble. The good folk living in the Queenstown basin have long been complaining about the crowding, the stretching of resources and the lack of accommodation, all problems that evaporated overnight. Now restaurants, hotels, shops, buses, adventure attractions and all the thousands of other businesses that depended on tourists have no income. Air New Zealand saw its business, within a few short weeks, plummet from $6 billion to less than $500 million. The expected massive job cuts have already begun. I have a young nephew who wanted to be a pilot since he was 15. He did his training, flew little mail planes around in dangerous
weather and worked his way up the ladder over the years to finally get his captain’s wings a few months ago. Now he is doing voluntary work delivering prescriptions to the elderly. Billions have flown every year because it was relatively cheap while so many were flying. Now it’s going to be very expensive. And when you get to your overseas destination you will be shut in a hotel room watching Netflix for two weeks and when you get back home it will be another two weeks holed up in a hotel. Not much of a holiday or a business trip. I’ll stay here thanks. And of course, there’s the flow-on affecting travel agents, engineers, caterers, cleaners, airport staff and all the other dependent industries. The mainstream media were already in trouble given the big offshore social media companies have been stealing their content then their advertisers and not even contributing tax. With the sudden plunge in remaining advertising we see how fragile their businesses are. A functioning, robust democracy requires a decent media so this is a problem. I was wondering how the carbon market might be affected.
One might expect it to be collapsing given big emitters like airlines are literally falling out of the sky. I see the carbon price has gone only from $29 to $25 but this is a government-fixed price and emitters pay in retrospect so are covering last year’s emissions. Our total emissions will certainly be heading towards some of the set targets and no one will be in the position to pay more tax so this must have some impact on the future pricing and thus on farmland being converted into trees surely? With dairy payouts forecast to be much lower and forestry conversion less of a player, one might expect land values to suffer. Oh yeah, and our equity. The great news is that as food producers we are in the box seat. Criticism of our sector and activities is already muted and activists will have less of a following as folk focus on more pressing issues such as their daily survival. The Greens might even struggle to return to Parliament whenever we have an election. But the drought’s lasting effects mean we won’t be able to greatly capitalise on the benefits of food production next season. Finally, a couple of correspondents raised interesting matters from last week’s column.
From the Ridge
Steve Wyn-Harris
Kevin, my new best friend, pointed out smallpox is not the only virus to ever be eradicated. Cattle plague or Rinderpest, which used to kill almost all cattle that caught it, was finally extinguished in the 1990s after a 50-year vaccination programme by vets, of which he was one. John is reading a book on the amazing navigational skills of the Polynesians and the chapter explaining why this intellectual property of navigational lore suddenly disappeared says it coincided with the arrival of Europeans and the resulting virus epidemics wiped out 60% of Maori and up to 95% of Polynesian cultures, putting this plague and even bubonic plague into context.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
27
Ritchie drove meat sector to change Meaty Matters
Allan Barber
TIM Ritchie came to the Meat Industry Association as chief executive at the end of 2007, initially intended to be for 18 months, and retired earlier this month more than 12 years later. His first task was the planned merger of the processor representative organisation with Meat and Wool, the forerunner of Beef + Lamb, which was strongly promoted by Keith Cooper, then chief executive of Silver Fern Farms and Meat and Wool chairman Mike Petersen. The merger was doomed to fail after dissent among the processors, some of which failed to see how the two organisations, one a member-funded trade association and the other a farmer levy-funded body, could possibly work as one. History has clearly shown the logic behind the eventual outcome, which has seen MIA and B+LNZ each with a clearly defined role to the ultimate benefit of the red meat sector. Ritchie was originally involved as secretary of the MIA’s forerunner organisations, the Freezing Companies Association and Meat Exporters Council, in the late 1970s and early 1980s before joining Towers
International, which represented the British interests of several meat companies including Waitaki International, Southland Frozen Meats and Hawke’s Bay Farmers. That partnership fell apart when SFM was sold to Challenge and the Meat Board took over Towers though the rise of the supermarkets and decline of high street butchers had by then lessened its importance. He joined Waitaki as sales manager and went to Britain where he spent the most exciting time of his career negotiating with the supermarkets, which no longer wanted frozen carcases but specific cuts to specification. At the time New Zealand meat companies were busy setting up cutting rooms ideally designed to benefit from the United Kingdom’s membership of the Common Market and the quota providing access to both UK and Europe. According to Ritchie UK farmers are still stuck in the carcase and live export trade which, in the event of a hard Brexit, means they won’t have adequate cutting facilities. During Ritchie’s time at the MIA he has witnessed and, according to Greenlea’s Tony Egan, quietly encouraged a change from competition to collaboration between the meat companies, achieving a shift of emphasis from brinkmanship to consensus. Instead of trying to shaft their competitors processors now focus on industry best practice, industry protocols and investment in their business. The MIA has taken a leading role in the development of
good working relationships with government departments, particularly the Primary Industries and Foreign Affairs and Trade Ministries, trade organisations and representative bodies and overseas government trade and customs departments. Ritchie says the MIA has worked really well in the past decade with members changing from a mindset of finding a buyer to today’s practice of product allocation and rationing to ensure optimum prices while preserving established relationships. The MIA is a lightly resourced organisation with the depth and skills that enable it to spot key opportunities and encourage the companies to approach them on a common basis. Major initiatives include the HR Leaders’ Group, meat industry health and safety committee and the Strategic Directions Group, jointly chaired by MIA and MPI, which looks at issues such as innovation, cost recovery, meat inspection and market access. The industry has seen the enormous value to trade of NZ’s reputation for product verification and certification. The industry sat down with MPI to design what the desired regulatory system would look like in 10 years’ time. The process introduced real accountability for delivering agreed outcomes instead of devolving responsibility to a committee. There are excellent examples in overseas markets of the success of taking a strategic approach to business improvement and regulation. Ten years ago halal
SELFLESS: Retired Meat Industry Association chief executive Tim Ritchie worked for the good of the industry, Greenlea boss Tony Egan says.
access problems and constant changes to audit requirements encouraged the MIA to suggest to the government it was an area where NZ could use its knowledge to establish a regulatory framework for halal certification. As a result MPI can now approach all markets that import halal product and obtain authorisation for the NZ regulatory model. In 2016 China, now our most important market, accepted the NZ inspection process for imports, which has encouraged other markets to follow suit. Though there has been little growth in demand from exclusively halal access markets, Indonesia, Malaysia and the Middle East, there are more than 40 other markets like China that take halal product and are prepared to pay more for it. Virtually all meat is now slaughtered, separated and stored under halal procedures as standard but only product requiring halal certification is identified as such to avoid incurring the extra costs. NZ certification is now accepted by these markets, thereby avoiding access difficulties.
After the intended merger between MIA and Meat and Wool fell apart, both organisations have successfully concentrated on their respective sides of the farm gate. MIA and its members have taken responsibility for market access, logistics, operational requirements, customer relationships and individual company brands while B+LNZ has focused on keeping its levy payers informed and educated, at the same time recognising it has an important role in building general awareness of the health and taste benefits of naturally raised red meat. Much of the credit for the improvement in red meat sector relationships, performance and planning should go to Ritchie who, in Egan’s words, doesn’t take sides but works well to achieve the best outcomes. His agenda has always been the good of the industry.
Your View Allan Barber is a meat industry commentator: allan@barberstrategic. co.nz, http://allanbarber.wordpress. com
Rare cattle can’t go on list DEAR Aunty Thistledown, Could you tell me how many buffalo are being farmed in New Zealand? When I register my calves in Nait I am presented with a lovely list of breeds to choose from. Ayrshire, Milking Shorthorn and Buffalo, etc but no Angus or Hereford. I spend all day typing these breeds into the Other box. Am I missing something? Yours sincerely Counting Buffalo Dear Counting, Yes, you are missing something. You are missing the overwhelming uptake of buffalo breeding in NZ. According to Ospri there are no fewer than a couple of buffalo herds in in NZ. Buffalo make wonderful cheese and wonderful beef. They are particularly popular in India, where the Hindu culture is prevalent, because they are not technically cows – at least according to the eyes in the skies – so buffalo beef can be eaten without jeopardising one’s happiness in the next life.
I rang Nait to ask if they would consider adding a rarer breed such as Angus or Hereford to the dropdown list. The person at the other end of the phone did not seem like they had been consulted on the breed list. They were not sure why Angus or Hereford did not make the cut but buffalo are new to NZ and have certain restrictions and different rules. The poor call taker who, to be fair, was aptly prepared to help me adjust my TB testing date, couldn’t elaborate further. But I can confirm, upon studious googling, that buffalo are different enough from the the rest of the breeds in the list to warrant their own category. The Customs Service likes to know if your package contains cattle or buffalo. They are pedantic about these things. Also, buffalo might be susceptible to different diseases to cattle. Nait is supposed to help prevent the spread of disease so that is a very important thing to keep in mind. You see, your other breed cattle are susceptible to traceable and
costly diseases such as persistent infections of BVD, Johnes and Neospora the Nait system could help us eradicate once the rest of the world proves it is worthwhile. Nait can also help with much less traceable diseases such as Mycoplasma bovis that NZ will, for whatever reason, go to great lengths, including sending out staff amid the apocalypse, to see if eradication is possible. While buffalo are susceptible to all the above they are also a bit more likely to drop dead from malignant catarrh fever so some NZ buffalo breeders recommend keeping them away from sheep and goats, which can carry the disease. Does this answer your question? I fear it doesn’t but I want to be helpful so I will chip in with some extra advice. If you farm the even rarer breeds such as the Hereford-dairy cross cattle you will want to make sure they are listed as beef nnot dairy in the Nait system or you will incur higher processing levies when they are slaughtered.
Ask
Aunty
Thistledown
Though why you would be so callous as to slaughter the founding members of an establishing rare-breed is beyond me.
MORE:
Please contact aunty.thistledown@ globalhq.co.nz to ask a question
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Opinion
28 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
Now we will realise what is important The Voice
Craig Wiggins
WHAT will become important is what has always been important. Last month I wrote about all the things we could do coming up in the rural calendar and within five days the whole world changed and we were heading into lockdown. There are no two ways about it, the world has changed and we might never again see the likes of what was deemed important before the covid-19 pandemic. What seemed to be important in the world we were part of was the ideological lifestyles of the rich and famous or those who found themselves in a position of governance and what their opinions meant. That was driven by their social and mainstream media presence, how many followers they had and who was making money off the star attractions’ following. It often gave the star an over-inflated sense of self-worth and in their mind they thought they had the right to comment on everything and anything that added support to a liberalised world.
Let’s look at some examples. The Kardashians found themselves famous overnight and the crazier they got the more people followed them, the money poured in to allow more of a presence and a so-called reality television show. But I ask what did they really contribute to society? It seemed that every singer, television personality and politician who has had absolutely nothing to do with farming and rural lifestyles had an opinion on the way farming around the world was done. They all joined the feel-good movement encompassing the world, a new religion, something you had to be a part of so you were seen to be a part of something, the movement under the umbrella of climate change. Now don’t get me wrong, the world does need less pollution and to reduce the toll humans have put on the environment. To question the path we take is always good for the sustainability of the world we live in. That’s not my argument here. My issue is how many people jumped on that bandwagon and sang, no, preached from the rafters about how rural people making a living was killing the world. Award ceremonies were held where superstars got up and preached how we needed less meat and we must look to a new way of life to save the planet while
TAKE THAT: Pollution has fallen during the lockdown.
the flowers on the tables and on stage had been flown in from another country by private jet. I could go on about this but I am sure you get the picture. In the short time since covid-19 turned up we have seen huge drops in pollution levels around the world as air travel and vehicles cease to burn fuel and yet the numbers of livestock have stayed the same. We needed to make changes on the pollution front but maybe covid-19 made the transition of less environmental effect by the human race in the shortest of times by locking down our movements. New Zealand is going to hurt. Tourism and trees, as some politicians endorsed over farming to reduce the effect on the environment are now found wanting. We will need to support the tourism industry from within our shores and the only way to do that is to ensure those inside our borders who can earn and
spend will have the ability to do so. I am not saying all the good work farmers have done up till now in sustainability can be reduced or the importance of that work is irrelevant. What I am saying is that it is no longer a race. We need to balance the ability to be financially sustainable while being environmentally sustainable, not be expected to reach lofty targets set when the world was burning more fossil fuels and living beyond its means before the pandemic. For NZ those targets need to be readdressed as soon as possible. We must lift the lid on the pressure cooker the primary industries have been under as we look to the future. We will get more community spirit from this pandemic. It’s already obvious as we see people checking in on their neighbours and showing patience in queues for groceries, things like the Top Twins driving through Methven
What has become important now has always been important – food, shelter and good company.
playing music from their ute and urban streets coming together to work out at a distance. All these things add up to increased community spirit. As we have lost international sport and events I look forward to going back to the future where local sports events are a place to go and catch up, communicate and get a feel for how everyone is. Maybe less isolation, maybe less mental health issues, who knows? One thing I do know is that what has become important now has always been important - food, shelter and good company. Brought to you by PGG Wrightson Livestock.
It starts with something as simple as a smile Off the Cuff
Andrew Stewart
“THAT should stop the bastards.” It’s a quick throwaway comment I should not have been so shocked by except it came from the mouth of my four-year-old daughter. We had just finished fixing some goat holes in the boundary fence and my two girls wanted to know why I thought the wild goats that push through from the neighbour’s farm are such pests. After the initial surprise and smiles faded with what she had just said I realised taking the kids out on the farm during lockdown adds many different elements to my day that I am not familiar with. Remembering not to swear in front of them had just become an essential service on my behalf. Like many families in rural New Zealand our lives over the lockdown have been incredibly
different but similar in many regards. We are privileged to have the freedom to go about our daily jobs reasonably unrestricted but with greater elements of isolation and organisation. Our little bubble of four has spent lots of time together, enjoying each other’s company for the most part, rediscovering the many enjoyable facets of farming life. I don’t think there is any doubt we all feel very lucky to live where we do and enjoy a lifestyle in lockdown many around the world would envy. But our lockdown bubble burst just one week into the experience when an unfortunate accident took down one of our family. After enjoying a bucket-list horse ride with our daughter, wifey made a couple of errors in judgment around two horses. The end result was she got herself in the way of some quickfire kicking while our daughter looked on in horror. Our brave little eight-year-old girl had the presence of mind to get herself out of the way and come running to the house to find her dad,
yelling “mum has been cut”. My first reaction was to think she must have grabbed onto some barbed wire or the like and cut her hand so the shock at what I saw when I went around the side of the shed was real and horrific.
We need to afford the same affection to total strangers as we have offered to those within our bubbles.
She was as white as a sheep, trembling and struggling to stay conscious with a number of visible cuts and bruises. After assessing her injuries to the best of my ability it became very clear 111 was needed. Luckily, an ambulance was only 10 minutes away and two of our frontline heroes, the paramedics, cared for and medicated her for the trip to hospital. After a number of x-rays and tests she had her right elbow operated on to repair a broken bone and plenty of bruised ribs and cuts.
Because of covid-19 we were not allowed near the hospital, which was not ideal, but the staff were incredibly efficient and helpful for us to deal with. She was fixed up within 24 hours and our little bubble of three was allowed to pick her up from the hospital entrance. Now the patient is home and recovering and making good progress and our bubble is readjusting to the hand we have been dealt. So why am I sharing this story? Like anyone who witnesses a loved one suffer some terrible injuries I went through a whole range of emotions – fear, anxiety, worry for our children, gratitude for the support we have received and relief the injuries were not life threatening as they could so easily have been. We all live with emotions in our lives daily but traumatic events accentuate them sometimes and there are those in our communities who cannot bear this extra burden. This world that we live in is filled with fear, uncertainty and worry. What such upheaval has also highlighted is our need to care for and be kind to one
another as human beings. Before this virus upended our world we all could be accused of living busy lives. But busy lives don’t always translate to lives of fulfilment and enforced time with those we love has provided us a wonderful opportunity to readjust workloads, life goals, values and ambitions. The world that comes out the other side of this outbreak will be dramatically different. We will need to innovate like never before, love each other unconditionally and help those in need such as we do in times of war. We need to afford the same affection to total strangers as we have offered to those within our bubbles, for the enrichment of everyone. So let’s start our post lockdown lives (touch wood) with compassion, empathy and kindness, none of which cost a cent. It starts with something as simple as a smile.
Your View Andrew Stewart is a sheep and beef farmer and tourism operator in Rangitikei.
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
29
Is M bovis job back on track? The Braided Trail
Keith Woodford
IT IS now more than five months since I last wrote about Mycoplasma bovis in late October 2019. Since then another 44 farms have gone positive, bringing the total to 245 farms since the disease was discovered in July 2017. All the farmers have been required to slaughter their herds. There are 31 farms where that process is still ongoing. During this latest five-month period farms infected with M bovis have been identified at an average of two a week – slightly higher than the overall average of 1.75 a week since the disease was discovered. That raises a legitimate question whether it is the Ministry for Primary Industries or the disease that is running faster. Has MPI got better at its job or is it because the disease is running ahead and leaving increased calling-cards behind? I am often asked whether M bovis can be eliminated. I have always been sceptical. Right now I still do not know. There is definitely a chance but the evidence remains murky. Ever since the Government gave the full steam ahead decision in April 2018 the official line has been the programme is going well. Then, in April last year, we learned things had in fact not
been going well at all but would supposedly go well thereafter. That was when MPI said there would be a big surge in activity. April 2018 was also when we learned the official figures had been fudged over at least the previous five months with MPI using one criterion to decide whether herds should be considered infected and slaughtered but using another criterion, and hence a totally different number, to disclose to the public. Quite simply, we had been manipulated and lied to. Those of us close to the onfarm action had known for many months, indeed right from the outset, that MPI had been fudging and hiding its gross inefficiencies. However, we found it more than a little challenging to communicate our concerns to the authorities. It was something the then director-general, a former military man who by instinct and training relied on information passed to him through the formal system, did not wish to acknowledge. He did respond but through personal attacks on the messenger rather than dealing with the issues. A problem with fudged figures, including mid-level underlings hiding their own inefficiencies, is that top officials themselves can get misled. In many organisations the top people are the last to know when things are going wrong unless they also have informal networks. In the case of MPI and M bovis it also meant Agriculture Minister Damien O’Connor was not getting the full story. But he did tell me very firmly one day in his office he believed the formal information he was getting was correct and
anything I might say publicly about programme defects was not helpful and risked the ongoing social licence from the community to keep the programme going. When the new director-general took over at MPI in late 2018 he quickly recognised by talking to farmers and other people in the field there were many problems but it still took time for full recognition to develop that he was getting fed the same mushroom treatment of animal fertiliser and darkness as the rest of us. Since then MPI has had a major makeover and the public face of MPI in relation to M bovis is a different set of people than previously. The people away from the public eye have also changed considerably. One of the advantages of the new guard is that they no longer have to dig bigger and bigger holes for themselves while trying to defend and cover up prior fudgings. However, those matters of fudgings and laying blame for the past do still have to be handled with discretion. Anything else would not be a good career move. Those of us from an older generation who used to watch Yes Minister and Yes Prime Minister got many laughs from the parodies of government and bureaucracies. A friend of mine who was himself a mandarin in that English system tells me it was all so true. In fact, the traits are universal. So, the question becomes when the new guard says it is cautiously optimistic about eradicating M bovis can we trust it given the way the old guard behaved? My judgement is we can, as long as due weight is given to the fact these people at the top
are indeed still cautious in their assessment and there are still lots of unknowns. In contrast, when the messaging comes from within the industry organisations, they are still driven by maintaining social licence from their members. In any case, the industry spin doctors don’t really know themselves, as they are simply communicators.
I am often asked whether M bovis can be eliminated. I have always been sceptical. Right now I still do not know.
So, now a little more as to where we are in a technical sense. The key question is whether the estimated dissemination rate (EDR) between herds, which is essentially the same concept as R, the transmission rate for covid-19 between people, has been driven down below 1? An EDR of 1 is the crucial separation point that determines whether the disease will proliferate or fade away. Alternatively worded, does each infected farm on average infect more or less than one other farm? Eventual outcomes depend totally on the correct answer to that question. One thing we do know is that the bulk-milk Elisa testing of every dairy farm each month is a powerful tool for filtering out those dairy farms likely to be infected and therefore needing closer scrutiny. That tool was not available till August 2018. Even
then it still had to be validated in the field. Without it, we would have been stuffed. It is notable that in the last five months only five dairy farms have gone positive, with 25 newly diagnosed farms being beef farms and 12 further farms being other, mainly dairy youngstock. But some caution is appropriate with MPI sometimes shifting farms between categories and even transferring between islands. The biggest unknown relates to whether M bovis has got into the beef breeding as well as finishing herds, where it has been highly prevalent. With hindsight, we will be able to answer that question but only with hindsight. The biggest weakness is too many service bulls with uncertain backgrounds are still going back onto dairy farms from beef finishing farms where they have some fun with the cows before being sent to slaughter. I am trying to get MPI to put more focus on that part of the system. We also should never forget the distress the programme continues to impose on affected farm families. In contrast to diseases like tuberculosis that we continue to fight against for good reason or the endemic Johne’s disease that we will have to fight in the future, M bovis is a minor disease that farmers elsewhere in the world simply live with.
Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com
RED LIGHT: Keith Woodford wants the Primary Industries Ministry in its fight against Mycoplasma bovis to focus more on the movements of service bulls between beef and dairy farms.
World
30 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020
No loss of kiwi tariff advantage A RANGE of import restrictions affecting New Zealand beef exporters to China will be swept away for their American competitors as part of the new United States-China trade deal. However, US producers will continue to face tariffs on beef as high as 47% while NZ beef exports enter the Chinese market duty-free under the free-trade agreement in place since 2008, according to initial analysis of the deal by the Meat Industry Association. Details are still emerging but newly appointed association chief executive Sirma Karapeeva said there is no suggestion NZ has lost its tariff advantage over US exporters to China. “But on the administrative side of things, at least on paper, it looks like they are streamlining systems and leapfrogging where countries like NZ are at.”
SEPARATE: New Zealand’s grass-fed beef competes in a different part of the Chinese market to American grain-fed product, Meat Industry Association chief executive Sirma Karapeeva says.
Of particular significance is China’s decision to allow
American beef containing some level of hormone growth
promotants to be imported, reversing the existing ban. “Given the widespread use of HGPs in US beef production this development has the potential to significantly increase US beef exports to China,” Karapeeva said. However, full details have yet to emerge, including a start date for the new pact, the wider effect of which has been to calm global trade and financial markets, which had become highly focused on the simmering trade war between the two major powers. Grass-fed NZ beef is also competing in a different part of the market from US beef, which is predominantly grain-fed. The NZ product is likely to continue to resonate with Chinese consumers looking for a premium, natural, safe product. That said, US producers will
benefit from the removal for their products of some 50-odd technical measures on US farm goods such as beef, pork, poultry, seafood, dairy, rice, potatoes and pet foods including removal of restrictions on animals’ age, use of veterinary drugs, traceability and product scope. A backlog of applications by US processing facilities for approval from Chinese authorities to export to that market has the potential to open up the Chinese market to more US facilities while NZ has been waiting for approvals relating to more chilled meat plant listings since the completion of a trial in 2018. That delay curtailed the opportunities in the Chinese market for a number of NZ meat companies because they can’t compete on a level playing field, Karapeeva said. – BusinessDesk
British push red meat message Shopping habits THE pot of levy money to promote red meat in Britain and abroad has been almost doubled from £2m to £3.5m. The increase, which came into effect from April 1, will help levy bodies the Agriculture and Horticulture Development Board, Hybu Cig Cymru (HCC) and Quality Meat Scotland (QMS) market the nutritional benefits of British red meat and its high standards. The extra money will focus particularly on bolstering the reputation of red meat with consumers, addressing misconceptions and promoting the benefits of sustainable meat consumption. A joint statement from the three levy boards said “We believe the time is right to strengthen this collaboration and increase the overall investment made in the joint fund for the next 12 months. “The industry is under tremendous pressure and we feel we can make even bigger progress on market development and export work to find new markets for our products overseas and the ongoing reputation work to promote all that is good and defend the industry from myths and misinformation.” Farm Minister Victoria Prentis said she looks forward to working closely across governments and levy boards to open up more opportunities for red meat to be enjoyed both at home and around the world. “Our red meat levy boards do brilliant work together to promote British meat so I’m very pleased to see this £1.5m increase to the ringfenced fund. “I’m proud to champion our hardworking farmers who produce red meat to exceptionally high animal welfare standards while also leading the way on
likely to change
BOOSTED: The budget for promoting red meat is increasing from £2m to £3.5m.
sustainability and protecting our environment.” National Farmers Union Scotland president Andrew McCornick said the extra cash will be welcomed by Scottish livestock producers. “It’s never been more important that every part of the industry collaborates to ensure that our fantastic story on sustainable, climate-friendly meat production is heard by all,” he said. The AHDB lists the environmental benefits of grazing livestock as: • Britain is one of the most sustainable places in the world to produce beef and lamb thanks to its temperate, maritime climate and geography; • Grazing ruminants actually help manage permanent pasture as an effective carbon sink; • Grazing cattle and sheep aid
biodiversity and managing the unique countryside and; • Without grazing ruminants more than 60% of agricultural land in Britain would be taken out of food production because it is not suitable for cropping. It said the benefits of eating red meat are: • Meat is bought by 99.2% of British households and 91% of households buy red meat; • Lean red meat is packed with vitamins and minerals that help boost good health and wellbeing; • Meat is a valuable source of protein, iron, zinc, B vitamins, vitamin D, selenium and iodine and; • There is no proven, causal link between red meat and cancer. Any alleged link is from an associative study only. UK Farmers Weekly
THE coronavirus outbreak could have long-term implications for people’s shopping habits, supply chains and the government’s attitude to food security, a British business expert says. Richard King, partner and head of business research at the Andersons Centre, said people will have got used to doing more online because of social distancing requirements and the government imposed lockdown. “The step change to deliveries could alter people’s shopping habits and this could be a longer-term trend,” he told an online spring seminar. Since the lockdown there have been difficulties in terms of imports and exports and supply chains have come under pressure. “Will this change the Department of Environment, Food and Rural Affairs’ view of food security? “The United Kingdom has been seen as a modern economy, a wealthy economy
that can import what we need if we are not 100% selfsufficient. “There may be a little change there. “There could be shorter supply chains and more transparency and also buyers looking for more diversity of supply in order to be more robust. “Consumers may become more interested in local food. “Buying a few eggs from a local farmer’s honesty box because it is the only way to get hold of them could lead to habits which continue in the long term.” The Government debt taken on to tackle the crisis will need to be paid back, which might have implications for infrastructure projects and more widely. “The effect of all this borrowing will be inflationary and may have an effect for months and years as businesses and individuals rebuild their finances,” “People will be paying off their debts rather than buying new goods or services,” King said.
DIFFERENT: Shopping habits will change as a result of the coronavirus lockdown, British business expert Richard King says.
Boundary lines are indicative only
Wairoa 821 Tiniroto Road and 14 Kent Road, Ruakituri
57ha freehold, maize crops, machinery and leases
7
An A'maize'ing opportunity located 16km north of Wairoa, Northern Hawke's Bay, is a fantastic cropping business opportunity. Bound by the Wairoa river the picturesque home title of 37ha includes approximately 15ha of maize with the four bedroom villa and numerous implement sheds with a large lockable workshop/three bay high stud shed. The 20ha Kent Road title includes approximately 11.5ha of maize, a three bedroom weatherboard home with the balance easy hill. The going concern sale includes a large list of tractors, cultivation and harvesting equipment as well as over 80ha of maize crop soon to be harvested and the opportunity to enter into a longer term lease of approximately 45ha of cropping land in Wairoa. An opportunity to start your own cropping business or for farmers wanting to extend into a mixed/cropping business with the ability to finish livestock.
Tender (unless sold prior) Closing 4pm, Wed 13 May 2020 17 Napier Road, Havelock North Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Stephen Thomson 027 450 6531 stephen.thomson@bayleys.co.nz
bayleys.co.nz/2852103
EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008 MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
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farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
FARMERS WEEKLY – April 20, 2020
Wairoa Coastal Opoho Station 2225 State Highway 2
Unprecedented contour ripe for diversification A farm steeped in history flowing to the Pacific Ocean, with enviable contour and climate. Held in the same family for four generations, cared for and nurtured throughout, Opoho Station provides extraordinary contour. The 128ha of fertile, tile drained flats, and an additional 110ha of arable, sand country and valley flats opens multiple opportunities for diversification. Currently farming a total of 759ha, the residual land consists of easy, medium and steep hill country, and approximately 69ha of neighbouring lease. Recent decades have seen Opoho undertake successful diversification in the form of horticulture, sheep/beef, breeding - finishing, mixed cropping, dairy and honey production. Three homes, including a grand four bedroom traditional homestead and a raft of well equipped farm infrastructure, along with all weather roads make this station a compelling offering.
bayleys.co.nz/2751653
Tender (unless sold prior) Closing 4pm, Wed 10 Jun 2020 10 Reads Quay, Gisborne View by appointment Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz Stephen Thomson 027 450 6531 stephen.thomson@bayleys.co.nz MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
OAMARU Property Brokers Limited Licensed REAA 2008
211 Thames Street Oamaru Office 03 307 9176
Exciting opportunity with irrigation
Your destination For Rural real Estate farmersweekly.co.nz/realestate
PRICE REDUCED
WEB ID OMR72871 MAHENO 39 Whartons Road Buyer enquiry over $3,000,000 plus GST will be given serious consideration for this exciting opportunity with irrigation. Property Brokers is proudly presenting to the market this high production irrigated fattening property located in the fertile Kakanui Valley of the North Otago region. 152.1329 hectares. • Fertile soils achieving high production dry matter. • 78 hectares of Irrigation utilising two centre pivots. • Primary water consent via Kakanui River (33 ltr/sec) in combination with NOIC (North Otago Irrigation Co).
pb.co.nz
BY NEGOTIATION + GST (IF ANY)
3 2 Ross Robertson
Mobile 021 023 27220 rossr@pb.co.nz
2
RURAL rural@pb.co.nz 0800 FOR LAND
Property Brokers Limited Licensed under the Real Estate Agents Act 2008
Lifestyle with multiple options
WEB ID WHR74289
WELLSFORD 23 Biddle Road Within a short drive from Wellsford Township on a quiet rural road is this well presented lifestyle block of approximately 40 hectares. A wide array of improvements is on offer including a sunny and spacious farmhouse of three-plus bedrooms, separate garage with attached games room or office and has been rented at $450/week. Close to the farm house is a large implement shed (20m x 8m approximately). Other farm buildings include a calf rearing shed, old 13-aside herringbone milking shed, large workshop with three phase power (ex-woolshed), and two haybarns.
The farm is set up on gently rolling pasture divided into 24 main paddocks and four smaller ones connected by a u-shaped limestone race. There are two dams for stock water which supplied good quantities of water through the recent drought and are fed by a spring and farm runoff, plenty of mature shelter trees, and well maintained fences, gates and troughs. Please call for more information.
3 Catherine-Anne Wilson
Mobile 027 271 8551 Office 0800 367 5263 catherinew@pb.co.nz
Vendor instructions are clear!
2 1
Investment potential plus!
NEW LISTING
DEADLINE SALE
WEB ID OMR75319 OAMARU 266 Eastern Road, Otekaieke DEADLINE SALE closes Friday 22nd May, 2020 at 4.00pm, (unless sold prior) Offers over $30,000 plus GST per hectare will be considered. Large scale dairy farm, location, soils, reliable water, modern infrastructure, all provide for a very efficient low input dairy unit. Return on investment will impress. â&#x20AC;˘ 423 hectares located at Otekaieke, Waitaki Valley North Otago. â&#x20AC;˘ Five-year production average of 619,000 kgMS or 1,518 milk solids per hectare effective Price plus GST(if any) Deadline Sale closing at 4pm Friday 22nd May 2020 or Ross Robertson other date TBA subject to Covid 19 restrictions being Mobile 021 023 27220 rossr@pb.co.nz lifted (all prior offers will be considered)
DEADLINE SALE
pb.co.nz
BY NEGOTIATION
WEB ID OMR72668 HILLEND 17 Tongue Road DEADLINE SALE closes Friday 22nd May, 2020 at 4.00pm, Offers over $4 million + GST will be considered. Property (unless sold prior) Brokers are proud and privileged to present this 352.7058 hectare dairy farm to the market as sole agent. The farm is well situated in strong & fertile country in the hinterland of South Otago with an RV $4,630,000. The property has a history of sound Ross Robertson production at lower cost meaning potentially higher Mobile 021 023 27220 returns. Plus GST(if any.) Deadline Sale closing at 4pm rossr@pb.co.nz Friday 22nd May 2020 or other date TBA subject to 4 Covid 19 restrictions being lifted (all prior offers will be considered) Andy Kelleher
DEADLINE SALE
Mobile 027 666 6811 andyk@pb.co.nz
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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.
DAGS .25c PER KG. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.
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GOATS WANTED
FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916.
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
WELL INSULATED – AFFORDABLE
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12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.
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Experience Essential Hillcroft is a 700ha hill-country farming operation in the north-Waikato, 20 minutes north-east of Huntly, running Angus and Hereford, and Romney stud stock. The position requires: • Honesty and reliability • Clean and current drivers licence • Sound fencing skills • Ability to work independently and as part of a small team Hours and terms negotiable. A comfortable 3-bedroom cottage is available. Contact Liz on 07 828 5755 or 0274 547 687 or email application with CV to: crawfordfamily97@gmail.com
DOLOMITE
Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz
NAKI GOATS. Trucking goats to the works every week throughout the NI. Phone Michael and Clarice. 027 643 0403.
w w w. e l e c t r o t e k . c o . n z STOP BIRDS NOW!
P.O. Box 30, Palmerston North 4440, NZ
Shepherd
ZON BIRDSCARER
SELLING
Stud Stock Manager
PH DEBBIE 027 705 7181
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le att C D n H ck! o i e l lab be qu i a o av 00 last s 0 2 s to $ stock 0 0 e 15 hil m $ nly w o r f O ngs shes. i v Sa Cru
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HOOF TRIMMER
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13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut
TOWABLE TOPPING MOWER
TOWABLE FLAIL MOWER GST $4400 INCLUSIVE
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11.5HP Briggs & Stratton Motor. Industrial. Electric start. GST $4200 INCLUSIVE
50 TON WOOD SPLITTER
GST $4200 INCLUSIVE
To find out more visit www.moamaster.co.nz
Phone 027 367 6247 • Email: info@moamaster.co.nz
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SOMETHING?
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Shepherd / General
Information packs now available for 2020/21 season
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Livestock Noticeboard
FARMERS WEEKLY – April 20, 2020
HORTICULTURE
SALE TALK
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
A middle-aged couple were having a marriage counselling session as the wife felt like her husband was just not understanding her. The councillor emphasised the need for greater communication in the relationship. The councillor said it is also important for them both to know each others likes and dislikes etc. Turning to the husband she asked, “So, what is your wife’s favourite flower?” He hesitated then said “Self rising flour.” Supplied by Naomi Broadbent
HUNTING ACCESS WANTED MID NORTH ISLAND. Retired farmer looking for somewhere to hunt at rear of farm/station bordering bush. Would consider buying part of it. Contact Warren 022 687 3164.
LIVESTOCK FOR LEASE 100 IN-CALF HEREFORD M.A. beef cows for lease. $100+GST per head, PA. Beginning 1st June 2020. Phone John 07 88 88 240.
LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. RED DEVON BULLS; Also in-calf cows + heifers, BVD vaccinated + weaners. Hill country stud. TB-C10 - 06 376 3966
PUMPS
RAMS FOR SALE WILTSHIRE & SHIRE® Meat rams. Low input. www.wiltshire-rams.co.nz 03 225 5283.
SHEEP SCANNING DUE TO COVID 19 foreign scanners may not be available to assist in NZ this year. Don’t be caught short. Space available servicing Wairarapa, Taihape, Hawkes Bay, Wairoa regions. 20 years experience. 3-way drafting and marking done. Phone to discuss availability 0274 588 900.
DAIRIES FOR SALE
Farmers want a deal - Good Value 32 Jersey Cows BW195 PW125 RA100% DTC 10/7 to LIC 11wks, closed herd $1600 Tim Williamson 027 511 7778 Ref: DH 1791
STOCK FOR SALE
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Livestock Noticeboard
RANUI BULL SALE
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CHAROLAIS BREEDERS NEW ZEALAND Inc P. O Box 503, 75 South Street, Feilding 4740 P:06 323 4494 E: charolais@pbbnz.com
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byllivestock
36
livestock@globalhq.co.nz – 0800 85 25 80
Est 1993
Livestock Noticeboard
Key: Dairy
LIVESTOCK ADVERTISING Are you looking in the right direction?
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To advertise Phone HANNAH GUDSELL 0800 85 25 80 or email livestock@globalhq.co.nz
in-calf
NATIONAL TEAM. LOCAL KNOWLEDGE.
FARMERS WEEKLY – April 20, 2020
Cattle
Sheep
NORTH ISLAND HERDS & IN-CALF HEIFERS FOR SALE 95 Jsy, Jsy/Jsy X Incalf Hfrs BW 164
PW 169
$1,350+GST
•
RA 100% Nice Capital Stock line, Will computer split or you can pick at higher price. Rex Playle – 027 594 6512 Agonline ref: 6545
42 Capital Stock Friesian 1st X InCalf Heifers BW 76
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$1,250+GST
•
RA 92% Capital Stock Friesian 1st X Heifers. Farm sold last year. At scanning will identify any late calving Heifers. The Friesian type Heifers were sold as Weaners. Tim Pickering - 027 446 9963 Agonline ref: 6886
Freephone 0800 10 22 76 | www.pggwrightson.co.nz
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MARKET SNAPSHOT
38
Market Snapshot brought to you by the AgriHQ analysts.
Suz Bremner
Mel Croad
Nicola Dennis
Cattle
Reece Brick
Graham Johnson
Caitlin Pemberton
Sheep
BEEF
William Hickson
Deer
SHEEP MEAT
VENISON
Last week
Prior week
Last year
NI Steer (300kg)
4.85
4.90
5.45
NI lamb (17kg)
6.70
6.85
7.25
NI Stag (60kg)
7.00
7.00
9.05
NI Bull (300kg)
4.85
4.90
5.15
NI mutton (20kg)
4.60
4.60
5.05
SI Stag (60kg)
7.00
7.00
9.05
NI Cow (200kg)
3.30
3.30
3.90
SI lamb (17kg)
6.45
6.70
6.75
SI Steer (300kg)
4.40
4.60
5.05
SI mutton (20kg)
4.00
4.20
4.85
SI Bull (300kg)
4.35
4.65
4.80
Export markets (NZ$/kg)
SI Cow (200kg)
3.05
3.20
3.45
UK CKT lamb leg
10.37
10.55
9.30
US imported 95CL bull
7.90
8.15
7.92
US domestic 90CL cow
8.76
8.81
7.17
Slaughter price (NZ$/kg)
Export markets (NZ$/kg)
6.50
7.0
$/kg CW
$/kg CW 5-yr ave
Jun
2018-19
Dairy
Aug 2019-20
Oct
Dec 5-yr ave
Feb
Apr 2018-19
Jun
Prior week
Last year
-
-
2.96
Jan-20 Sept. 2021
2700
SMP
2500
2390
2600
AMF
4050
3950
4200
Butter
4175
3825
3780
Milk Price
7.22
7.22
7.18
787
833
Close
YTD High
Fisher & Paykel Healthcare Corporation Ltd
28.53
32.22
21.1
The a2 Milk Company Limited
19.5
19.71
13.8
Meridian Energy Limited (NS)
4.35
5.8
3.61
Auckland International Airport Limited
5.95
9.21
4.26
410
Spark New Zealand Limited
4.25
4.93
3.445
Ryman Healthcare Limited
11.9
17.18
6.61
400
Mercury NZ Limited (NS)
4.3
5.62
3.595
380
Mar-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
* price as at close of business on Thursday
390
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
WAIKATO PALM KERNEL
2800
400
2700
8.08
4.9
6.19
7.74
4.54
38
43.99
24
Listed Agri Shares
Close
YTD High
YTD Low
19.5
19.71
13.8
Comvita Limited
2.79
3.25
1.66
Delegat Group Limited
9.3
12.1
6.39
Fonterra Shareholders' Fund (NS)
3.85
4.06
3.62
Foley Wines Limited
1.63
1.91
1.35
Livestock Improvement Corporation Ltd (NS)
0.76
0.82
0.75
Marlborough Wine Estates Group Limited
0.21
0.21
0.191 1.29
New Zealand King Salmon Investments Ltd
1.84
2.3
PGG Wrightson Limited
2.25
2.47
1.55
Sanford Limited (NS)
6.9
8.2
5.55
4.8
5.17
3.3
SeaDragon Limited
Scales Corporation Limited
0.105
0.205
0.001
Seeka Limited
4.25
4.74
3.4
Synlait Milk Limited (NS)
7.39
9.1
4.36
S&P/NZX Primary Sector Equity Index
200
5pm, close of market, Thursday
The a2 Milk Company Limited
T&G Global Limited
300 $/tonne
6.69
Contact Energy Limited
Company
400
2.58
2.93
2.35
15999
16941
12699
S&P/NZX 50 Index
10473
12073
8499
S&P/NZX 10 Index
11040
12096
9100
100 Apr
May Jun Latest price
Jul
Aug 4 weeks ago
Sep
0
Mar-19
S&P/FW PRIMARY SECTOR EQUITY
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
YTD Low
Port of Tauranga Limited Mainfreight Limited
May-19
420
370
2500
787
Company
380
2600
321
Top 10 by Market Cap
410
WMP FUTURES - VS FOUR WEEKS AGO
625
314
DAP
$/tonne
2635
567
314
-
vs 4 weeks ago
2725
567
-
CANTERBURY FEED BARLEY
WMP
Urea
-
Mar-20
DAIRY FUTURES (US$/T) Prior week
Aug 2019-20
Last year
30 micron lamb
390
Last price*
Jun
Prior week
-
$/tonne
6.25
Nearby contract
Apr 2018-19
Last week
-
420
6.75
NZ average (NZ$/t)
-
7.25
2400
Last week
37 micron ewe
430
Nov-19
Feb
FERTILISER
CANTERBURY FEED WHEAT
Jul-19 Sep-19 Sept. 2020
Dec
Fertiliser
Aug 2019-20
Super
7.75
May-19
Oct
5-yr ave
Grain
Data provided by
MILK PRICE FUTURES
5.75
8.5
6.5
Coarse xbred ind. Apr
9.5
7.5
(NZ$/kg)
4.50
$/kg MS
South Island lamb slaughter price
WOOL
5.00
Feb
South Island stag slaughter price
10.5
5.50
Dec
8.5
7.0
5.0
Oct
9.5
11.5
8.0
6.00
4.00
10.5
6.0
South Island steer slaughter price
6.50
North Island stag slaughter price
11.5
$/kg CW
$/kg CW
4.50
Last year
6.5
9.0
5.00
Last week Prior week
7.5
5.0
5.50
Slaughter price (NZ$/kg)
8.0
6.0
6.00
US$/t
Last year
North Island lamb slaughter price
9.0 $/kg CW
North Island steer slaughter price
Last week Prior week
$/kg CW
Slaughter price (NZ$/kg)
Ingrid Usherwood
15999
S&P/NZX 50 INDEX
10473
S&P/NZX 10 INDEX
11040
39
FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020 NI SLAUGHTER BULL ( $/KG)
4.85
SI SLAUGHTER LAMB ( $/KG)
6.45
SI SLAUGHTER COW ( $/KG)
3.05
PULSE MEL CROAD
Reputation sells here and abroad
E
VEN in these unsettled times reputation sells. In our export-driven industry there has always been plenty of focus on how great our products are on the global market. The red meat industry works tirelessly to showcase our lamb and beef products to willing buyers across the world. Farmers up and down the country pride themselves on what they produce for the export market. But it’s not all about our reputation on a global scene. What we do as farmers locally can also underpin our business success. There are plenty of farmers across the country who have put in the hard yards. They have moved with the times, embraced technology and genetics and educated themselves on government regulations. And they are winning. They are building a reputation for producing top-quality stock, that is paying for itself. In the face of uncertainty as the implications of covid-19 spread far and wide farmers want certainty. Among
many things, they want to know the stock they buy will perform and we are seeing it with clarity right now. With saleyards closed and the ability to host on-farm sales removed some farming operations are opting for online auctions. Some auctions come and go with little fanfare but then there are the standout sales, the ones buyers have been waiting for. AgriHQ has been following the results of these online auctions and even in these testing times has seen farmers stumping up and paying premium prices well in excess of market indicators. That stretches from store lambs to weaner calves, underpinned by repeat buyers chasing reputable stock. Premiums as high as 35-45c/kg were paid over and above the market for weaner calves last week and store lambs were often breaking $100 when indicators are wallowing. In this environment where farmgate prices for lamb and beef are struggling it is testament to both the buyers and the sellers that if you have a good, reputable product you will always find a market for it.
WEATHER
Overview
Soil Moisture
The Southern Ocean is stormier than normal and is producing some powerful storms, like the one early last week. This week kicks off with high pressure which lingers until about Wednesday then the westerlies return with showers on the West Coast. The North Island has a few Monday showers possible in the north then might be mostly dry till about Thursday night/Friday when a weak cold front moves north. On Friday/ Saturday another deep low, 960hPa or 970hPa, in the Southern Ocean will encourage stronger westerly winds across the nation with strongest winds further south. More storms well south of New Zealand next week will encourage more westerlies over the country.
16/04/2020
Source: NIWA Data
Highlights
Highlights/ Extremes
Temperature
Wind
Fairly light winds start this week but the westerlies build as the week goes on with westerly quarter gales possible from the lower North Island southwards around Friday/ Saturday in the usual exposed places.
This week looks fairly mild. We have some cooler air flows skirting the very south but generally the westerly quarter winds developing this week will be mild, especially in the east of both islands.
Some wet weather on Monday for the very north of the country then showers later in the week in the west. Refer to www. farmersweekly.co.nz/weather for new rainfall accumulation maps for the next seven days ahead.
14-day outlook
7-day rainfall 7-DAY RAINforecast MAP
High pressure pushes across NZ for the first part of the week, bringing lighter winds and mostly dry weather. Wettest weather this week looks to be on the West Coast but, perhaps, the very upper North Island might kick off wet this week too. We see stormy weather in the Southern Ocean and high pressure north of NZ putting us in the classic autumn westerly flow set-up this week and likely next.
Some wet weather might linger across Monday in the upper North Island then will likely clear away. The week ahead sees more showers in the west, especially the West Coast. Eastern areas of both islands are drier than average this week and possibly into next week because of the strong westerlies.
Weather brought to you in partnership with weatherwatch.co.nz
THE WORD: Farmers with a good reputation will always find willing buyers for their stock.
For more maps and insights go to farmersweekly.co.nz/weather
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The news you need to see in a daily newsletter from the biggest rural newsroom in the country.
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Markets
40 FARMERS WEEKLY – farmersweekly.co.nz – April 20, 2020 NI SLAUGHTER COW
NI SLAUGHTER LAMB
SI SLAUGHTER STEER
($/KG)
($/KG)
18-MONTH TRADITIONAL STEERS IN THE SOUTH ISLAND
($/KG)
($/KG LW)
6.70
3.30
4.40
2.30-2.50
high $2.80-$2.90/kg $3.05-$3.25/kg Valley Trust lights Traditional weaner steer Burnett Calf Sale on Bidr, Angus in the North Island making
Stock backlog adds to processor pressure Neal Wallace neal.wallace@globalhq.co.nz
W
INTER has signalled its imminent arrival with a skiff of snow on alpine regions, elevating anxiety among farmers who have learned waiting time for killing space has reached six weeks. Adding to their anxiety, schedule prices, especially for South Island lambs, are falling, dropping up to 30c a kilo in the last week alone. Beef prices also falling, albeit at a slower pace. Silver Fern Farms has told suppliers waiting times for sheep are four to six weeks in the South Island and two to three weeks in the North Island. For beef it is four to six weeks in the south and two to three weeks in the north. Adhering to covid-19 regulations has reduced plant throughput by 50% for sheep and 30% for cattle. A Beef + Lamb and Meat Industry Association analysis forecasts the South Island sheep backlog not clearing till the end of May but further delays to those now experienced are not expected in the North Island. With lambs being prioritised a backlog is developing for ewes. By May the analysis forecasts the prime cattle and cull cow backlog to increase a week in both islands but extend into June in the North Island. “This is most pressing in the South Island where the bulk of cull dairy cows have yet to move to processing.” Ceri Lewis, manager of the 12,100ha Mt Linton Station in Southland, still has 18,000 lambs to kill at a time when he usually has only 3000 to 4000 left. The lateness of the lamb kill means Lewis won’t mate ewe hoggets this year.
MORE SPACE: Silver Fern Farms is considering adding killing chains if it can find enough staff, chief executive Simon Limmer says.
This week we have increased our ovine efficiency by 8% and bovine by 12%. Danny Hailes Alliance
AgriHQ senior analyst Mel Croad says farmgate prices are easing because of the backlog, falling market demand and companies processing fewer animals. The price for manufacturing beef in the United States has started to fall as demand weakens while demand for high-end, foodservice lamb cuts such as French racks has virtually disappeared.
However, demand for manufacturing beef from Canada is increasing. Silver Fern Farms chief executive Simon Limmer said plants are working overtime including Saturday and extra nightshifts, staff who can’t work are being kept on for when they’re needed and the addition of extra chains if staff can be found is being investigated. Alliance livestock and shareholder services manager Danny Hailes said throughput has increased despite the restrictions. “This week we have increased our ovine efficiency by 8% and bovine by 12%. We are also planning to run overtime. Both SFF and Alliance are moving stock between plants and islands and processors and exporters are also moving inventory out of cold storage to free up space for incoming stock.
steer calves made
ACROSS THE RAILS SUZ BREMNER
Trickle-down effect begins to have impact on weaner prices ROLL back the clock 12 months and the sale yards around the country were alive with the sound of newly weaned calves and even the distraction of a long weekend would not alter the flow. The South Island was now well into the swing of them and fairs were continuing in the North Island, accumulating to 12 weaned calf-specific sales spread from Wednesday to Friday following the Easter break. Back to today, though, and these unprecedented times have thrown the sale of livestock into uncharted territory. The perfect storm continues to make selling conditions tough and despite significant rain in some areas the trickledown effect from limited processor space is having the biggest impact on the weaned calf market. As cattle are not going out the top-end buyer interest for short-term cattle is constrained, leaving those who traditionally target the weaner markets with reduced space on farms to take on extra stock. Reports are that it is harder now to shift weaned calves than it was even a few weeks ago, with all selling platforms under pressure and vendors meeting the market on any that are moving. For those that are moving there have been some success stories, particularly for annual draft lines of top-quality calves that tend to attract return buyers. Never has there been a year quite like this, though, with influences on the market that are new to everyone so sellers can take some comfort in the fact the prices seen for traditional calves are in fact where the market was expected to kick the season off back in early March and that was pre-covid-19. Traditional steers are largely trading at $2.80-$2.90/kg LW and heifers $2.30-$2.60/kg LW, which is in line with 2012 pricing and similar to the 2014-15 period. suz.bremner@globalhq.co.nz
Find out more about AgriHQ at agrihq.co.nz
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