Farmers Weekly NZ July 20 2020

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7 Exemption is no free pass Vol 19 No 28, July 20, 2020

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Wool revival coming annette.scott@globalhq.co.nz

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OUTH Island farmer Kate Acland says the Government’s report on the wool industry is a chance for the sector to come together and realise its potential. The Vision and Action for the wool sector put together by the Government-appointed wool industry Project Action Group suggests New Zealand is on the cusp of a natural fibre renaissance being led by more environmentally and socially conscious consumers. A new approach is needed to seize the opportunity and turn things around. The report recommends the appointment of an executive officer and establishment of a wool sector governance group to oversee development of an investment case. Mt Somers Station farmer and project action group member Acland said bringing the report together was always going to be fraught with issues. “There was great expectation that the report would save the industry but if the answer was easy it would have been done before now. “People who expected a silver bullet will be disappointed,” Acland said. “The report steers a direction to look at a strategic vision, which is what the sector needs in some form of co-ordination that everyone can support. “This is a first step, it’s a start, it’s not going to save the industry overnight.

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The report is saying let’s make a strategic plan with strategic investment and this requires bigger outside thinking. Kate Acland

READY: Kate Acland says the wool report is a first step and recognises the industry is poised for change.

product through the market close to the consumer.” Shadbolt said the report is remiss in not highlighting the significant work already done. “There’s a lot more happening in the industry, a lot more going on in the market adding value to wool than the report recognises. “Let’s not write off the good that’s been done and not recognised in the report.” Shadbolt said it is an opportune time to consider structural industry changes. “I would see that as a nonnegotiable part of our industry going forward.” Primary Wool Co-operative

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chairman Hamish de Lautour said there are no surprises in the report. “The industry is at rock bottom, we already know that, it can only get better. “Detail now will be key to future progress,” de Lautour said. “We agree that reform is required in the commercial supply chain and it must be addressed by those entities. “These are tough times for the entire supply chain and hopefully this will help focus influential entities on what is really important, which is keeping sheep farming profitable,” de Lautour said.

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Watch or listen to the interview at farmersweekly.co.nz/sarahscountry

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Federated Farmers meat and wool chairman William Beetham said harnessing outside expertise and being market driven will be keys to developing a sound strategic roadmap for reviving the strong wool sector. Making sure the process is customer-focused and open about what needs to change will be critical, Beetham said. Achieving the right governance will be the prime factor if the sector is to avoid a repeat of earlier failed attempts to turn around the fortunes of strong wool. “The governance oversight recommended in the plan, in my opinion, should be professional and selected, based on skills and insights with the ability to deliver strong governance systems. “The governance must create accountability and drive the vision. “If we can effectively highlight to global markets and consumers the incredible qualities of natural wool to warm themselves and their homes we can make wool shiny and new again,” Beetham said.

TRACTA63197_NZFW

Annette Scott

“The report recognises we are poised for change, there are a whole lot of steps to come and there’s wide sector agreement on that. “The report is saying let’s make a strategic plan with strategic investment and this requires bigger outside thinking. “It’s a start for all across the sector to get on board for the journey.” Acland said there is some industry funding in place for the executive officer role with consultation under way as to how that role is best filled. The governance group will not be a continuation of the Project Action Group. “This group will need a different skill set,” Acland said. But Banks Peninsula farmer and Wools NZ founding chairman Mark Shadbolt says the report lacks a substantive action plan and there’s no detail around the implementation and funding of the recommendations. “I do have major concern over this establishment of a board and appointment of an executive officer – who is going to do this to get it right and how will it be paid for? “The industry has been in decline for more than 20 years and this report recognises that but despite waiting two years we still don’t have an action plan to move forward.” Shadbolt said change in the industry must come about commercially not politically. “The real focus must be in the market with the consumer. No more money needs to be spent on wool behind the farm gate. “Anything else now needs to be driven by the value of the wool


NEWS

ON FARM STORY

32 Honey business finds sweet spot

When James Annabell’s budding rugby career wasn’t quite going the way he hoped the former Taranaki Bulls hooker put his drive into honey, which has led to the development of a multimillion dollar business.

REGULARS Newsmaker ��������������������������������������������������� 26 New Thinking ����������������������������������������������� 27

10 UK trade deal still some way off

Editorial ������������������������������������������������������� 28

Britain is scrambling for trade deals before it leaves the European Union at the end of the year. Nigel Stirling asks just how easy getting a free trade deal with the United Kingdom will be for New Zealand.

Pulpit ������������������������������������������������������������� 29 Opinion ��������������������������������������������������������� 30 On Farm Story ���������������������������������������� 32-33 Real Estate ���������������������������������������������� 34-35 Farm Trader ������������������������������������������� 36-37 Employment ������������������������������������������������� 38 Classifieds ����������������������������������������������� 38-39 Livestock ������������������������������������������������� 40-43 Weather ��������������������������������������������������������� 45

26 Group to set beef’s priorities

12 Milk comes with carbon

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FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

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Bank breach makes Mataura a target MILK formula exporter Mataura Valley Milk has breached its banking covenants so needs a financial lifeline by December to keep its head above water, making it a likely investment target to help A2 Milk scale up its manufacturing capacity. The Southland processor plunged to a $47.1 million loss on the back of high start-up and loanservicing costs last year. It said it will face a funding shortfall of $26m this year, with an new funding line now necessary to keep its plant running past December. Mataura is known to have a relationship with A2 Milk already. In April chief executive Bernard May said the $300m Gore plant will transition to processing A2 nutritional milk over the coming two seasons. Of the 180m litres of milk processed during its first full season, its 29 farmer suppliers delivered about 100m litres with

the rest bought from other South Island sources. A2 Milk has been tight lipped in response to earlier speculation it’s keen on Mataura. In a statement to the NZX last month A2 Milk said only that it has had discussions with a number of parties in relation to potential strategic options relating to participation in manufacturing capacity and capability. But Mataura wants and needs an investor with deep pockets. Its $114.5m revenue in 2019 was eroded by finance expenses and high payments to farmer suppliers. The South45Milk programme, at 20 cents a kilogram of milksolids above Fonterra’s price, is the highest price in the South Island. In its financial statements filed on Tuesday the firm also confirmed it is in breach of covenants with both the China Development Bank, over a loan of US$52.6m and China

Construction Bank over loans of US$116.6m. And neither bank has waived its right to call in those loans. Accordingly, they have been treated as current, resulting in total current loans and borrowings climbing from $3.7m to $239.7m. The firm will be jittery knowing that CCB also holds security over the company’s Gore properties. The implications of covid on the kiwi/US dollar exchange rate haven’t helped, with Mataura affected by what was an effective 16.7% correction since balance date that saw the NZ dollar value of the US dollar liability to China Development Bank increase by $15.7m. Majority shareholder China Animal Husbandry Group, which holds 82.15% of the processor, has provided a guarantee to the two banks, for which it charged the firm a hefty $1.2m in interest and fees, now capitalised at more than $2.9m to date. The China Development Bank guarantee

HEADWAY: Mataura Valley Milk chief executive Bernard May has confirmed the company has made progress in its search for a strategic shareholder.

is dependent on the China Animal Husbandry shareholding remaining above 60%. May confirmed the firm has made progress in its search for a strategic shareholder, targeting potential investors with the capacity to inject $100m to $150m and to accelerate the company’s nutritional strategy through supply agreements for nutritional product. To help out, last year it brought in investment advisers Macquarie Capital and DG Advisory who have billed more than $500,000 to date. May said the season has also

presented operational challenges but supply chains are still open and the company has been able to sell whole and skim milk products at prices above Global Dairy Trade levels. Since the December 31 balance date the company confirmed it has entered working capital agreements in March with China Development Bank and with Rabobank Hong Kong for a combined US$49.5m of working capital funding. It also settled its $57m working capital loan with HSBC. – BusinessDesk

Open Country discharge consent declined OPEN Country Dairy’s application for a resource consent to discharge contaminants from its Waharoa factory into the Waitoa River has been declined. However, the hearings committee granted the company a 35-year consent to discharge contaminants into the air. The two consents were for OCD to continue the expansion of its Waharoa factory. The dairy company wanted to introduce a summer discharge to the Waitoa River, when previously the wastewater has

been irrigated onto land in summer. OCD said the quality of the wastewater it proposed to put in the Waitoa River under a year-round consent would be significantly improved by a new, $17 million treatment plant. Phase one of the upgrade has already been commissioned. The evidence presented on behalf of OCD said the effects of the discharge would be less then minor. However, the committee was told by Beca, acting on behalf

of Waikato Regional Council, the cumulative effects of the discharge in summer would have more than minor adverse effects on the river and in the Firth of Thames. The committee found adverse effects were likely to occur in summer in the Waitoa Stream, in the lower Piako River and potentially the Kopuatai Wetland and in the Firth of Thames. It said the inner Firth of Thames is under significant stress in summer and autumn when

dissolved oxygen sags below a 70% guideline. The OCD summer discharge should be considered a cumulative effect that will add to ecosystem stress, it decided. “We have found that the OCD discharge in summer/autumn adds to potential cumulative effects on the Kopuatai wetland, the lower Piako River and the Firth of Thames.” A discharge under summer/ autumn conditions to aquatic environments where the lifesupporting capacity is already

under threat does not meet the definition of sustainable management. In a separate matter, OCD is scheduled to take part in a sentencing hearing in Hamilton District Court on July 17, having pleaded guilty to one charge of unlawfully discharging contaminants to air. The charge relates to odour affecting the local community and follows a previous conviction for unlawful discharges to land and air in 2018. OCD was asked for comment.

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FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

A Fonterra-like co-op for wool? Annette Scott annette.scott@globalhq.co.nz THE wool industry needs a real plan to be profitable and the Government’s vision and action report for wool has failed to deliver, according to some industry leaders. While the report is a step in the right direction a concrete plan is needed to lift the industry from its doldrums, National Council of New Zealand Wool Interests chairman Craig Smith said. “It’s a report that tells us what we know, the wool industry in general is in a really bad place. “What needs to happen very quickly now is another report with a clearly defined strategy then we can put some structure around that strategy,” Smith said. “It’s been recommended we have a governing body and an executive officer – that’s structure in place to do what? “We need a clear strategy first on how to get crossbred wool back to above $6 a kilogram then get structure in place to

fit and drive the strategy. “The report has got the cart before the horse.” Smith is also concerned with the lack of funding detail. “The (Agriculture) Minister (Damien O’Connor) is challenging industry to do stuff. As an industry there is lots of stuff going on already. “We will get behind this report when there is a clear strategy to support,” Smith said. Carpet and yarn maker Godfrey Hirst has invested more than $200 million in NZ, primarily to make woollen yarns and carpets. Despite being excluded from the consultation there was some hope the wool report might deliver a strategy that would enable industry and government partnerships to better leverage export potential, group chief executive Tania Pauling said. “We are very keen to promote our NZ wool carpets both within NZ and to export markets. “We don’t see this report as a solution. We see it as acknowledgement of the issue,

which industry has been aware for some time,” Pauling said. “It sets out a vision but is delegating to solve the problem to somebody else. “It seems to us the structure proposed is a repeat of Wool Partners International and it’s silent on funding. “From my point of view it hasn’t delivered.” Peter Weber of Feilding-based PV Weber Wools said when wool is worth less than straw you know you are in trouble. He is concerned at the lack of consultation by the wool group. “It’s taken two years. My biggest concern is the lack of consultation. Nobody called me, did they call anybody? “Right now I’m making more money crushing shit for pellets than selling wool for insulation. “Advertising must describe wool as product from sheep.” NZ carpet and wool company Cavalier Corp chief executive Paul Alston said the report is spot on in identifying opportunities for NZ’s quality strong wool as the

SPOT ON: It is now incumbent on Kiwis to support and own their wool industry, Cavalier Corp chief executive Paul Alston says.

preferred choice for leading fabric, carpet and materials. It is now incumbent on Kiwis to support and own their own industry. “We support the call for Government to show greater leadership by incorporating criteria requiring sustainable and environmentally friendly products into purchasing decisions. “Wool is the forgotten fibre. “The world is changing and synthetic fibres have had their day. While the report has not shot a silver bullet, NZ Woolscouring supports the concept. “It’s a good catalyst as the first part of a platform to move from, industry needs that first step,” chief executive Nigel Hales said.

“I would like to think that this report doesn’t just get shelved, the impetus is there to carry on, the next steps are critical, especially choosing the right people to get involved from here. “Let’s make this a revitalisation of coarse wool farmers and coarse wool manufacturers in NZ along with research and development providers,” Hales said. NZ First primary industries spokesman and south Otago farmer Mark Paterson suggests a Fonterra of Wool as an alternative model for the wool industry. “A successful co-operative for NZ wool similar to that of our dairy industry could reap great rewards for our wool farmers,” Patterson said.

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FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

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Nappies in plan to revive wool petroleum-derived textiles in consumer hygiene products, adding significant value to the raw material produced by NZ strong USING New Zealand strong wool farmers. wool to produce biodegradable The trial aims to commercialise disposal nappies for a multiWoolchemy’s neweFlex range of billion dollar global market is biodegradable and disposable gaining traction as a new avenue absorbent textiles at scale so they for farmers desperate to find new can be supplied by the roll for use places to sell their product, with on machinery that mass produces multinational companies showing fast-moving consumer products interest in NZ technology. like disposable nappies, feminine hygiene and incontinence pads. The trial will also involve putting neweFlex into nappies to ensure there is no adverse reaction from babies to it. Potroz-Smith says it’s worldleading technology and the aim is to give NZ strong wool a foothold in the US$47 billion-ayear non-woven textile sector. Woolchemy’s materials are derived from 33-39 micron NZ coarse wool and the company’s strategy is to collaborate with pharmaceutical and fastmoving consumer goods companies to license intellectual property and supply sustainable nonwoven textiles. Non-woven fabrics, created by placing fibres together then using mechanical bonding to combine them into a cohesive material, are used to make many widely used consumer goods, Potroz-Smith says. Incorporating wool into the fabrics has a definite advantage – and not just for farmers. “Most non-woven consumer products are derived from petroleum, which, as well as being non-renewable, does not decompose when sent to landfill. “We have developed a commercially scalable process to re-engineer wool, initially for use in non-woven hygiene and medical products. “Our process gives wool greater absorbency, enabling liquids to penetrate the outer cuticle of the fibre, therefore matching the performance ON A ROLL: Woolchemy co-founders Derelee Potroz-Smith, left, and her mother, of petroleum-derived textiles Angela Potroz, are confident their non-woven textile made of NZ coarse wool is a while adding benefits that only way of reinvigorating demand for wool. Colin Williscroft colin.williscroft@globalhq.co.nz

As part of the recent launch of the strong wool sector’s plan for the future Agriculture Minister Damien O’Connor said Wellington-based company Woolchemy will get $80,000 from the Ministry for Primary Industry’s Sustainable Food and Fibre Futures Fund. Woolchemy co-founder and chief executive Derelee PotrozSmith says the money will pay for a commercial trial of technology that enables wool to replace

wool provides, such as natural temperature regulation and odour control. Alongside that, our wool products are fully biodegradable.” International companies from Europe, the United States and China are already interested in the product. Potroz-Smith says not only are they aware of the natural qualities of wool there is a growing understanding of the need to better harness natural products in the fight against climate change while synthetic fibres are becoming increasingly harder to get as governments step up efforts limit single-use plastic products. The plan was to have the trial under way by now but covid-19 pushed it back because the machinery used to produce nonwoven materials has been in high demand to produce personal protective equipment. There is no machinery used to create non-woven products in NZ so initially manufacturing would need to be done overseas but Potroz-Smith says if the trial proves successful and the commercial process can be scaled up, then a manufacturing plant in NZ is worth investigating. Having that machinery in NZ would also mean that if and when another global pandemic arrives PPE could be made here, reducing reliance on buying it in from overseas. Woolchemy was set up in 2010 by Potroz-Smith and her mother, Angela Potroz. Its initial creation was neweZorb, a technology that works on wool fibre, yarn, wovens and non-wovens and provides permanent absorbency 25 times that of regular wool and wettability to wool or wool blended textiles so they can be washed and worn over and over again. However, recognising that 90% of families who buy nappies buy disposables, the company widened its innovation focus to create a natural product that is not only sustainable, it is biodegradable. Potroz-Smith says about 70% of non-woven nappies are made

of plastic and it’s estimated there’s a cup of crude oil in every disposable nappy. “Although there is huge demand for ecologically sustainable products, consumers still prefer the convenience of disposability and this demand is not likely to change quickly. “Our basic material combines the two key characteristics consumers seek – disposability and sustainability.

Our basic material combines the two key characteristics consumers seek – disposability and sustainability. Derelee Potroz-Smith Woolchemy “We aim to assist the production of biodegradable products by manufacturers who currently rely on unsustainable petrochemical based materials.” Following the trial Woolchemy plans to process up to 12,000 tonnes of coarse wool in the first year. Potroz-Smith, who grew up on a Taranaki sheep and beef farm, says the versatility of the technology will ultimately see its expansion into other applications including in the medical and industrial sectors such as aerospace. “We intend to help revive wool. “Our purpose-driven, solutionoriented strategy focuses on environmental benefit, using renewable, biodegradable wool to replace fossil fuel-derived materials. “This should reinvigorate demand for coarse wool, adding value to a commodity that has been in decline for decades. “Our process offers wool growers entry to this large global sector, which should markedly increase their returns.”

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

7

No free pass for market gardens Richard Rennie richard.rennie@globalhq.co.nz HOROWHENUA market gardener and Manawatu-Whanganui regional councillor Emma Clarke is adamant any removal of the district from Government nitrogen rules is far from a get-out-of-jail card for growers. Government officials have recommended Horowhenua and Pukekohe be treated separately from the latest national freshwater rules when limits on nitrogen toxicity are set. The Government has delayed setting firm national nitrogen loss limits, citing a need for more scientific analysis over the coming year. The recommendation to take account of the two areas’ importance as vegetable growing centres has drawn the ire of local iwi, claiming Environment Minister David Parker failed to consult on the separation. Clarke, of Woodhaven Gardens near Levin, said she finds herself between a rock and a hard place as a market gardener and a councillor. “My understanding is the council is not happy that our region is to be made exempt. This puts the council at odds with the Government, even though everyone in this region has submitted very clearly we wanted a pathway for continued vegetable production in Horowhenua.” The Clarke family is one of the country’s largest producers, with

NO FREE PASS: Emma Clarke said continuing pressure on Horowhenua growers makes urban development the next most appealing land use.

more than 700ha in production and 220 staff. Vegetable production has become fraught under the regional council’s One Plan with almost 60 growers having to operate without consents and unable to meet the nitrogen limits being imposed. Applying rules as they were is estimated to result in vegetable production being cut by 64% in a region responsible for growing about a third of the country’s greens. Clarke said the plan was too dairy focused when it was established and vegetable growers have since been at odds with council over the limits set. “So, the council has failed to grasp where their policy would land.” With vegetable growing now

limited to defined areas and the plan preventing any further development elsewhere in the region it is impossible to spread the nitrogen load from vegetable growing across the wider region. Clarke’s concerns are shared by Pukekohe grower Bharat Bhana, vice-chairman of Potatoes New Zealand. He operates part of his business under Waikato Regional Council’s Plan Change One (PC1). As in Manawatu-Whanganui it is not possible to shift land use to intensive vegetable growing. “What the Government has said is lip service really. “There are still very tight rules around nitrogen losses. Some might say it is a gift to be exempted, it is far from that. PC1 is tough and the Auckland region will be next.” Both growers maintain that

regardless of any Governmentsanctioned separation from national rules the regional councils’ rules could risk accelerating land loss from market gardening to urban development. “If it gets too difficult to grow vegetables the next best land use is not sheep and beef. It is to turn it into houses,” Clarke said. Levin is experiencing massive growth and the completion of the Otaki to Levin expressway will only open greater development opportunities. “As producers we are feeling pretty browbeaten and the cost of producing is already becoming prohibitive.” Bhana said he too has considered developing land near Tuakau as production becomes more regulated and limited. Clarke said it is a shame regional councils have not worked more closely with Horticulture NZ when setting rules, to deliver a more workable solution specifically for growers. “We are happy to meet rules around protecting the environment. “However, I feel there needs to be a more practical approach to this.” Bhana said the impracticalities of PC1 are only just starting to bubble up for growers. “Suppose you set a farm environment plan with a nitrogen input level then the crop is damaged by hail part way through and you have to add more nitrogen to help it recover

What the Government has said is lip service really. There are still very tight rules around nitrogen losses. Some might say it is a gift to be exempted, it is far from that. PC1 is tough and the Auckland region will be next. Bharat Bhana Grower then I am over my limit.” Hort NZ chief executive Mike Chapman said while the removal of the two districts is what HortNZ sought there is still work to do improving regulations for growers under regional plans. “Vegetable production differs significantly from pastoral production and the Government has recognised that with this.” He agrees with Clarke that if regional councils had taken greater account of vegetable production’s different nitrogen loss profile there might be greater consistency now across the country. “But to get that national consistency you need a national policy statement. We are looking at a national environmental standard to try to achieve that consistency.”

Good demand pushes prices Annette Scott annette.scott@globalhq.co.nz WOOL grower Scott McFadden from The Acheron, North Canterbury, was on hand with PGG Wrightson auction manager Dave Burridge to see the sale of 52 bales of his halfbred wool at the South Island wool sale on Thursday. Despite the difficult market conditions McFadden said he was happy with the outcome.

WE MISSED THESE ROLLS

A top class offering of mainly pre-lamb shorn wool met good demand. The improved market tone saw more stylish hogget wool types and sub 29.5 micron lambs’ wool, up 10%, benefiting the most. Crossbred fleece 31-40 microns while generally unchanged, did see some of the super graded styles lift by up to 8%. Crossbred second-shear

fleece was up 2% and oddments up 2-3% on the last sale of June 25. An early season offering of finer micron wool also saw the market respond favourably, supported by a full bench of buyers including representation for a major Australian wool exporting company. Just 12% of the offering was passed in. The next sale is on August 6.

NOT THESE ROLLS

SOLD: Farmer Scott McFadden, right, was on hand to see PGG Wrightson auctioneer Dave Burridge lower the hammer on his halfbred wool.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Bank credit squeeze may have peaked Nigel Stirling nigel.g.stirling@gmail.com FARMERS might find it a bit tougher to borrow in the next six months but there are signs the credit crunch they have faced in recent times may be easing. A Reserve Bank survey shows the squeeze on farmers by the trading banks may have peaked in September last year. A dozen banks, including the four major Australian-owned lenders, answered questions from the central bank on expected credit availability over the coming six months for all sectors of the economy. The responses were given a score between -100, indicating credit was expected to tighten significantly, and 100, signalling significant easing in availability. Agriculture recorded a score of -9.8 at the end of June, indicating banks expected a mild tightening of credit to the sector in the second half of the year. However, this was an improvement from -11.3 recorded at the end of March

and significantly better than September’s score of -36.4 – the worst for the sector in the survey’s 11-year history.

Banks reported appetite for new dairy lending was limited due to uncertainties around the impacts of new environmental standards. Reserve Bank Banks reported improvements in expected credit availability over the next six months for all parts of the economy except commercial property owners, with housing mortgages experiencing the biggest turnaround with a barely negative score of -0.9 compared to -15.8 at the end of March. The banks were also questioned about demand for credit over the

preceding six months and what level of demand they expected in the following six months. Agriculture scored -12 in the first of half of the year for credit demand, indicating a mild falloff in borrowing demand and an improvement on March’s -19 result. For the coming six months borrowing demand from the sector is expected to remain flat, indicated by a score of 0.3, a decline from at the end of March when a score of 6 indicated slightly higher expected demand. Banks reported demand from sheep and beef farmers for credit was barely positive at the end of June, contrasting dramatically with the situation at the end of March when there was strong demand. “During the first half of 2020 banks observed an increase in demand for working capital from sheep and beef farmers experiencing drought conditions and delays to the processing of livestock caused by supply chain disruptions,” the Reserve Bank said in a statement.

NO APPETITE: For the coming six months borrowing demand from the sector is expected to remain flat, the Reserve Banks says.

The survey showed trading banks expected demand for new borrowing by dairy farmers to remain unchanged in the second half of the year, an improvement on the preceding six months when demand was solidly negative. “Banks reported appetite for new dairy lending was limited due to uncertainties around the impacts of new environmental standards and banks’ continued focus on ensuring farmers take advantage of good commodity prices and low interest rates to deleverage. “Banks observed very

low demand for dairy farm purchases.” The Reserve Bank survey lines up with a recent one by Federated Farmers which found 19% of 1400 farmers surveyed in May felt under pressure from their bankers, down from 23% in August last year. Monthly lending figures published by the Reserve Bank show farming debt peaked at $63.8b in July last year. At the end of May farm debt had fallen to $62.8b while lending to all other parts of the economy continued to increase.

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News

farmersweekly.co.nz – July 20, 2020

9

Waikato farmers add more fences Gerald Piddock gerald.piddock@globalhq.co.nz A WAIKATO Regional Council shows 61% of the region’s waterways are now fenced. That’s up from 28% in 2002. The proportion of bank length fenced has steadily increased over the past 15 years at a rate of about 2.2% a year. It is the fourth such survey since 2002 and the latest figures were collected in the summer of 2017 from 432 sample sites. The survey is designed to establish and track changes in the state of riparian fencing, vegetation and stream-bank erosion associated with pastoral waterways. The findings were presented to the council’s environment performance committee by soil and land scientist Matthew Norris. “As of 2017 about 40% of our bank length remains unprotected,” he said. The proportion of bank length effectively fenced is 87% and 36% for dairy and drystock land use, respectively. The high percentage of dairy land fenced reflects the work done by the dairy industry around the Clean Streams Accord, he said. About 90% of waterways on low sloped land on dairy farms is fenced as is 63-72% for drystock farms. On steeper land 13-16% of waterways on dairy farms and 56-57% on drystock farms is unfenced. “Overall, it shows that good progress is being made towards stock exclusion but the job is not finished yet. We need to push on,

FENCING UP: A new survey shows that 61% of the Waikato region’s waterways are fenced off to keep livestock out, up from 28% in 2002.

particularly in drystock land use, which does seem to lag behind somewhat.” Cr Andrew MacPherson said the scientists need to understand the ramifications of the data for the drystock industry and walk a mile in a sheep and beef farmers’ shoes. “It is horrendously expensive to put a water system in a sheep and beef station. “They can put fences in but how are they going to get water to their animals?” In contrast, fencing waterways on a dairy farm is relatively straightforward, he said. However, Cr Fred Lichtwark said he is still seeing poor practices from farmers when travelling around the region. “For us to be saying we have done the job or have complied with fencing requirements is an absolute nonsense when it comes to water quality and what

we are trying to achieve because it isn’t.” Much of the fencing in Waikato is of little use apart from stopping animals from drowning themselves in waterways, he said. He believes the council has to look again at what is considered acceptable riparian fencing to achieve water quality. “Not just a ‘we comply with the Fonterra plan’, which is a one-wire setback from maybe a metre, which doesn’t achieve the outcome.” “To get trees in the ground, to uptake carbon, to have biodiversity corridors we need to have a decent strip and we need to have a decent strip to have water quality improvements. If we don’t do that then we’re letting down our region.” The council will do its next riparian survey in the summer of 2022-23.

“Before we changed to FIL we had a shocking season, with 15 demerits. We decided to make the switch, and it’s been a grade free year, this year.“ Andrew Sillac, milking 630 cows, South Waikato

Bertram saga under review THE fallout from the Dairy Industry Awards Trust’s decision to strip Nick and Rose Bertram of the national Share Farmer of the Year title continues. “We are happy to see that NZDIA have reflected on their mishanding of the situation,” Nick Bertram said. The trust decided to remove the title from the Bertrams on July 10 for offensive social media posts on Twitter that Bertram made in 2016 and 2017 that were brought to light by animal rights group SAFE. Bertram said he was under the impression the issue of the tweets was dealt with at the time after he was told to “pull my head in” by the trust. “The trust confirmed their prior knowledge and investigation into the tweets three years ago,” he said. As a result he thought he was free to compete in

STRIPPED: The Dairy Industry Awards Trust revoked the Share Farmer of the Year title won by Nick and Rose Bertram after animal rights group SAFE released a series of offensive tweets Bertram made in 2016 and 2017. this year’s awards without recrimination. “When we questioned them why did they allow us to enter, their response was they didn’t know we were going to win.” He said the after their national win, a trustee contacted him to delete the tweets and he and his wife then spent two hours cleaning up their Twitter feed. It was the first time anyone had asked

him to delete his tweets. When approached to comment further on Bertram’s claims, the spokeswoman said “As you know the New Zealand Dairy Industry Awards Trust is undertaking an independent review of its procedures, processes and entry criteria, therefore it would be inappropriate to comment at this time.” The review will be done by Susan Hughes QC.

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

UK trade deal still some way off Britain is scrambling for trade deals before it leaves the European Union at the end of the year. Nigel Stirling asks just how easy getting a free trade deal with the United Kingdom will be for New Zealand.

RESERVATIONS: Former Trade Minister Lockwood Smith does not believe the UK is completely committed to free trade.

MOST of the time New Zealand negotiators are on the back foot in trade talks. Our small consumer market and the dismantling in the 1980s of tariffs protecting local industries from imported competition leaves them precious little to bargain with. Tougher still when top of your list of demands is the most difficult nut to crack in international trade negotiations – free trade in agricultural products. Rarely does NZ enjoy the leverage as it has over the UK in talks now under way. The UK is desperate for trade deals to replicate the EU’s own network of agreements it loses access to when it departs the 28-country trading bloc at the end of this year. Along with the United States, Japan and Australia, NZ was one of the first countries the UK announced it would begin negotiations with. NZ’s inclusion is more than a nod to the shared history of the two countries. As a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership a deal with NZ would smooth the way for the UK to join the 11-country trade agreement and underpin market access for its exporters in the AsiaPacific region. Former Trade Minister Lockwood Smith agrees the pressure is on the UK to do a deal with NZ but still has reservations about its commitment to free trade. As a recent High Commissioner to London and a member of the pro-free trade think tank advising Boris Johnson’s government, the Legatum Institute, Smith is

intimately involved in the trade debate in the UK – and he is not encouraged by what he is seeing. The beginnings of a shift in attitudes under the previous leadership of Britain’s historically protectionistminded National Farmers Union is being undone by the current president Minnette Batters. “The previous NFU president had accepted change needed to happen and had started work with his organisation on what sort of transition time was needed. “He was thinking in terms of 5-10 years to transition to an unsubsidised future ... the current leadership of the NFU seems to be taking a step backwards.”

The US is bigger and more of a threat to UK farmers than NZ will ever be. Charles Finny That backsliding had spread to key figures in Johnson’s Cabinet including the Secretary of State for Environment, Food and Rural Affairs George Eustice and his influential predecessor Michael Gove. Eustice is behind a proposal for a system of tiered tariffs which Smith claims will be based on “perceptions” of animal welfare and health standards rather than scientifically-based World Trade Organisation rules. The highest tariffs would likely target chlorinated chicken imported from America which is banned in the EU and has become the focus of those in the UK opposed to a trade deal with the US. “It would be a real shame if the UK goes down that path,” Smith said. “One of the great benefits of the UK leaving the EU is to assume a greater leadership in international trade. “And it sure is not going to be respected as a leader if it comes up with WTOincompatible proposals like tiered tariffs depending on how politically they perceive food safety issues ... we are still trying to get Boris’s team to understand that.” Former trade negotiator Charles Finny is optimistic NZ will strike a reasonable deal with the UK but not quickly. Delays in decisions on agricultural market access were likely while the UK

negotiated the same with the US and the EU, which was likely to take some time given the size of the economies involved. “Why would the UK want to give NZ a fantastic deal on agriculture when they know that the US will grab that deal and try and get better? “In terms of dairy and everything else you name except sheep meat the US is bigger and more of a threat to UK farmers than NZ will ever be. “We are never going to flood that market whereas the US could overnight – I assume that is why they started the US negotiation before ours.” Dairy Companies Association chairman Malcolm Bailey said NZ exporters had not crashed prices in other markets where it had trade agreements, although he accepted that could be a difficult message for British farmers to absorb right now. “They are faced with a lot of uncertainty. This is not just about a deal being done with NZ. “They have to digest Brexit and what it means and I understand why the NFU on behalf of its farmers will be taking a stance which is very hesitant. “But the desire of NZ exporters of these primary products is to get a good return in the market and not to lower pricing. “We have got a long track record of being very constructive in the market and I think they should reflect on that.” Smith believed British farmers would eventually be forced to give up the production-linked subsidies and tariffs protecting them from competition from the rest of the world, although it could take longer than NZ would ideally like. That meant a trade deal with the UK similar to NZ’s 2003 agreement with China could be on the cards. That provided NZ with immediate tariff-free entry for key dairy products but built in safeguards to protect Chinese farmers from surges in imports above pre-agreed levels by restoring tariffs to their preFTA levels till the start of the following year. The key for NZ was that the safeguards all expire by 2024. Smith said such an agreement would deal with the fear of British farmers that they would be bankrupted by a tide of increased imports, while satisfying NZ’s demands for free trade. It would also give British farmers time to sharpen up to better handle increased competition.


News

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Hurst takes arable reins at Fed Farmers Annette Scott annette.scott@globalhq.co.nz REIGNING arable farmer of the year Colin Hurst has been elected chairman of Federated Farmers’ arable section. The South Canterbury cropping farmer replaces Wairarapa farmer Karen Williams, who has completed her three-year term. Hurst brings wide experience and an acknowledged reputation for hard work, tenacity and leadership to the role. He is keen to lift the profile of the arable sector among consumers and fellow farmers. Sales of arable production and spending generated by the industry contributed $863 million to GDP in 2018. Hurst will also be following his interest in science and innovation driving improved production and a lighter environmental footprint. “Most people know we produce cereal grains used in bread and a host of other staples and all the malting barley needed by our brewers. “We also grow the pasture seeds essential to our livestock farmers not to mention brassicas and other feed crops and seed production for domestic and international markets,” Hurst said. The arable industry’s export receipts are forecast to hit $260m, a 10.2% increase, this financial year. Hurst has farmed with his family on a 700 hectare mixed arable farm at Makikihi, south of Timaru, since the mid eighties. The farm includes 250ha under irrigation, growing mostly autumn wheat, grass seed, plantain seed, radish seed and forestry with heifer grazing, dairy wintering and beef cattle finishing. As well as serving Federated Farmers at national, regional and branch level Hurst has also dedicated countless hours to the South Canterbury Rural Support Trust, United Wheatgrowers and the Foundation for Arable Research.

11

TOP MAN: Colin Hurst brings wide industry experience and an acknowledged reputation to his new leadership role as Federated Farmers arable industry group chairman.

He has been a staunch advocate for farmers around the Seed Quality Management Authority table, on the Fertiliser Quality Council driving the development of a physical standard for fertiliser and at a multitude of local authority planning and hearing processes. Vice-chairmen elected to the Federated Farmers arable board for 2020-21 are Brian Leadley, grains, David Birkett, seeds, Dion Fleming, maize, and Chris Dillon, forage. FAR chairman Hugh Ritchie also takes a place on the board.

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Big boost to kiwi numbers Hugh Stringleman hugh.stringleman@globalhq.co.nz GOVERNMENT funds will be a big help in predator control in the Whangarei Heads area, Northland conservation groups and local authorities say. Conservation Minister Eugenie Sage and Regional Economic Development Minister Shane Jones announced $6 million delivered through a government provider, Predator Free 2050, to rid some 10,000ha of possums in five years. The money will also help efforts to trap possums, mustelids and rats on 60,000ha from Whangarei city to the Heads. Total budget for the plan is $27m, using significant in-kind contributions from community conservation groups, Northland Regional Council, Whangarei District Council, Kiwi Coast and the Department of Conservation. Jones has put $19.5m from the Provincial Growth Fund into nine predator control programmes in Northland, Bay of Plenty, East Cape, Hawke’s Bay, Manawatu-Whanganui and the West Coast. Predator Free 2050 intends creating 12 jobs.

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News

12 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Milk comes with carbon credits Hugh Stringleman hugh.stringleman@globalhq.co.nz STANDARD milk with carbon credits earned partly in regeneration of native forest on a sheep and beef farm near Kaikoura is now on sale. Simply Milk will come in standard and light varieties and be the same as Foodstuffs home brand Value milks but with new labelling and higher prices to pay for the carbon offsets. Certification for what is called carbon-zero milk has been obtained by buying credits through Toitu Envirocare, a subsidiary of Manaaki Whenua Landcare Research. The milk comes from Fonterra’s two processing plants for domestic liquids, Auckland’s Takanini and Palmerston North. The emissions profile is broadly representative and is not calculated for any particular source farm or district. The equivalent of 2.1kg of carbon dioxide is emitted in the production of each two-litre bottle of milk. It varies a little from farm to farm according to feeding regime and cow efficiency and is calculated over a full season, Fonterra’s sustainability director Carolyn Mortland, said. About 75% of the greenhouse gas emissions in milk come from the farms and only 25% from transporting and processing. Liquid milk has a lower footprint than milk used for making exportable powder. Toitu chief executive Becky

CHILLER: Fonterra sustainability director Carolyn Mortland and Chris Anderson, Foodstuffs North Island, with the first Simply Milk to go on sale.

Reaching net zero by 2050 requires all NZ businesses to start measuring and reducing their emissions now. Becky Lloyd Toitu Envirocare

Lloyd said the carbon emissions for the liquid milk include farming, production, distribution and consumption and disposal. Credits will come from

Winter milk runs smoothly Hugh Stringleman hugh.stringleman@globalhq.co.nz

FONTERRA’S winter milk season is drawing to a close with supply and demand balanced and little disruption because of lingering drought. Between 700 and 800 dairy farms supply winter milk, mostly in the North Island, either contracted or uncontracted. The season runs from May 16 to July 15 in the North Island and from June 1 to July 31 in the South Island. There are four payment periods of 14 or 15 days each and in the north the winter premiums this year were $2.85/ kg MS in the first and fourth periods and $3.50 in the second and third periods. In the south the premiums were $3.60 and $4.25 respectively. They were unchanged from 2019 and the contracted supply volume was steady. Fonterra also provides an uncontracted winter supply option at much lower rates

under standard terms with no volume commitments. Waikato regional head Debra Kells said supply and demand for winter milk were balanced and did not change significantly from last year. Food service market cutbacks for products like UHT cream, cream cheese and mozzarella did not dictate a reduction in winter milk volumes. Neither did contracted farmers have any shortfall in milk supply because of the drought during summer and autumn. “Farmers in the top half of the North Island were under pressure due to drought extending into the autumn period. “But this impacted more on uncontracted milk supply than on our core of contracted milk supply.” Along with its own liquid milk requirements Fonterra contracts winter supply for independent processors and for the year-round manufacture of UHT products at Waitoa and mozzarella at Clandeboye.

regeneration of 7.5 square kilometres of native forest near Kaikoura and renewable energy projects in India and Bangladesh. Toitu deals only with voluntary carbon credits like the permanent native forest sink initiative, not the compulsory Emissions Trading Scheme, in which Fonterra is already involved. “Reaching net zero by 2050 requires all NZ businesses to start measuring and reducing their emissions now. “Developing low-carbon technologies is vital but will take time and Fonterra and Foodstuffs North Island are demonstrating that in the meantime it’s possible to take meaningful action.”

CREDITS: The Kaikoura property where half of the Simply Milk carbon credits will be earned from regenerating native forest.

Mortland and colleague, sustainable solutions senior manager Lara Philips, say the Simply Milk introduction will establish whether local consumers are prepared to pay for carbon offsets. “This is starting to put some value on the sustainability initiatives of our farmers, which they have asked us to try to do. “NZ produces milk with one of the lowest carbon footprints in the world.” If consumers are keen then carbon-zero options will be extended to other dairy products from Fonterra Brands on the domestic market. Philips said it is like a test market for overseas customers

already interested in participating in zero-carbon schemes and reducing their environmental footprints. “This can really help us drive more value offshore from NZ’s low-emissions in dairy products.” Fonterra shares co-operative values with Foodstuffs and the Simply Milk introduction is a joint initiative, Mortland said. The retail price including the carbon credits is a matter for Foodstuffs and the owners of Pak’n’Save, New World and Four Square stores. Simply Milk would be priced midway between home brands and Fonterra’s own Anchor varieties, about $4 for two litres.

Food service finds new pathway Hugh Stringleman hugh.stringleman@globalhq.co.nz A REFRESHED strategy for its food service business is being introduced by Fonterra to counter the disruption caused by covid-19 to eating out in restaurants and hotels. Food service revenue is bouncing back, especially in the number one market of China, but positioning has changed, Asia and the Pacific chief executive Judith Swales told a webinar for Fonterra shareholders. Covid-19 has accelerated trends already apparent in the market like more home cooking, outsourcing in food preparation, more home delivery and investment in digital and contactless technologies. “We need to ensure our products are fit for purpose in this altered environment,” global food service director Paul Harvey said. Speaking from isolation after returning from the United States, Harvey said the early impacts of the pandemic were severe – 80% revenue losses for quick-service restaurants in China and the US were reported. “Now recovery is happening more quickly for Fonterra than our competitors. “We must also use this advantage to develop new

HOME: Fonterra’s global food service head Paul Harvey has moved to Auckland from Chicago in the United States.

solutions and services and grow our market share for when it opens up.” Harvey and Swales say elements of the new strategy include new products, digital transformation, sustainability stories, new markets and business channels and diversification away from China. Anchor Food Professionals are now presenting their ideas to customers using on-line forums. Local economies will be hit hard and meals and prices might need to be repositioned for local tourism rather than overseas tourism. Centralised cooking and greater takeway distances might dictate changes to retain the characteristics of ingredients such as stretchy mozzarella cheese, for example.

Traditional food service products like cooking cream might be repackaged in different formats to move into home cookery. Harvey said the food service division has doubled its contribution to Fonterra’s annual earnings over the past five years. To continue that growth it will need new customers, channels and profitable market shares. “It is all about performance in food to remain relevant for our customers. “We earned the right over the past five years to be the world’s leading dairy experts. “Food service has been wellsupported by the board and shareholders and we must deliver a great return on capital for the next five years.”


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FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

15

Irrigation awards finalists named FOUR New Zealand farmers are finalists in the inaugural Zimmatic Sustainable Irrigation Trailblazer Awards. The awards aim to celebrate excellence in sustainable irrigation and encourage Australasian farmers to share ideas for achieving sustainable freshwater management.

It was obvious these farmers have a deep understanding of their properties and their unique challenges. Keri Johnston Irricon Resource Solutions The competition is run by agricultural irrigation systems firm Zimmatic with support from IrrigationNZ, Farmers Weekly, Vantage NZ and Irricon. It recognises farmers leading the way in responsible irrigation, innovative water management and environmental stewardship.

Four finalists from each country have been selected. The NZ finalists are: Ben and Anna Gillespie of Central Otago, Brock and Gemma Hamilton, North Otago, Ted Rollinson, Mid Canterbury, and Nick Webster, North Otago. Each entrant was judged on sustainable irrigation management, irrigation-driven improvement that might include cost reductions, environmental outcomes, yield improvements and improved efficiencies, waterway protection; stewardship and community involvement. Irrigation NZ chairwoman and Irricon Resource Solutions principal Keri Johnston is head judge. All four finalists demonstrated a high-level of achievement across all four categories, which set them apart from the others, she said. “Our finalists all have farm businesses with values and philosophies based on environmental stewardship, care of the land, water and community and being caretakers for the next generation. “These finalists also demonstrated a level of considered decisionmaking in relation to irrigation

CARETAKERS: Irrigation Trailblazer Awards head judge Keri Johnston says the finalist all have farm business philosophies based on environmental stewardship.

system design. They are all using technology to their advantage while taking steps to maximise efficiency and minimise environmental impacts. “It was obvious these farmers have a deep understanding of their properties and their unique challenges.

“They have used clever thinking and an innovative approach to tackle these challenges rather than just trying to tick the box. “From supporting their peers to helping with education in schools, we were also impressed by the outstanding community leadership demonstrated by

some of our finalists. “While we could choose only four NZ finalists all our entrants should be commended for their commitment to responsible water management both on and off the farm,” Johnston said. On-farm judging will be done in spring.

New research links stress to farm injuries Colin Williscroft colin.williscroft@globalhq.co.nz MORE than half of farmers injured in on-farm accidents link their accidents to stress associated with farm work, a new report says. Farmstrong research found 58% said stress including exhaustion, lack of sleep, coping with the ups and downs of farming and being too busy to take a break or connect with friends and family contributed to their most recent injury.

The injuries accounted for two-thirds of ACC farmers’ claims costs. And 24% said stress was a major contributor to their injury and those injuries accounted for 30% of ACC farmers’ claims costs. There are about 13,500 agriculture-related injury claims every year costing about $50 million. The industry has one of the highest workplace death rates at an average of 17 a year since 2011.

Northland farmer Chris Biddles knows the risks. He’s recovering from a quad bike accident last year that left him with serious ankle, knee and shoulder injuries. “I was really tired and because of that I made a dumb decision,” he said. “That’s the danger of fatigue. You do something you wouldn’t normally do.” ACC workplace safety and levies head Paul Gimblett said farmers know how to make their livestock thrive and how to be good stewards of the land but they

need to look after themselves as well. The research, which involved 500 injured farmers, showed those under the age of 35 (35%) and dairy farmers (31%) are more likely than others to report aspects of stress as being a major contributor to their injury while 30% went back to work earlier than recommended. Staff shortages also had an impact, with 16% of farmers reporting being short staffed when injured. On those farms the rate at

which aspects of stress were a major contributor to the injury (32%) was almost three times the level of farms without staff shortages (11%). Just over half of the farmers (53%) said they would have been willing, while injured, to give an online programme a go that could be used to identify their top injury risks and develop their own plan for managing them.

MORE:

Watch and listen to the story at farmersweekly.co.nz/sarahscountry

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16 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

FAR Crops day is back on calendar Annette Scott annette.scott@globalhq.co.nz

ON AGAIN: Crops 2020 will focus on the future of New Zealand cropping, highlighting sustainable new technologies and market opportunities for grain, seed and supplementary feed crops.

NEW Zealand’s largest one-day cropping event is back on the calendar for December. Plans for the 25th anniversary of the Foundation for Arable Research’s annual Crops day began last year but in March it was put on hold while covid-19 unfolded. Organiser Anna Heslop said there has been good industry support.

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“In June we went back and consulted our sponsors and were delighted that they, like us, were keen to continue. “We’re now back in full-on planning mode,” Heslop said. Work on the research plots at FAR’s Chertsey arable site has been going on since lockdown lifted. However, the industry demonstration sites have been affected by the delay. “Many of the industry demonstration sites would usually have been sown in autumn but this year they will all be spring-sown plots. “This has required our sponsors to do some quick thinking around crop types, cultivars and treatments.” Since its inception in 2002 Crops has developed into NZ’s largest one-day agricultural extension field event, a must-do for farmers and other in the industry. Visitors can see demonstration plots investigating everything from cultivars to cultivation and see and hear the latest research findings from NZ and international experts. “The aim is to provide every attendee with new information to take away and apply to their own farming operation,” Heslop said. Crops 2020 will focus on the future of NZ cropping, highlighting sustainable new technologies and market opportunities for grain, seed and supplementary feed crops. It will be on December 2 at Chertsey, a 13-hectare mix of irrigated and non-irrigated land north of Ashburton.

Delegat sees profits rise on record sales WINE maker Delegat Group’s unaudited profit after tax for the year to June 30 rose 37% to $64.1 million, the company reported. The figure includes fair-value movements in its vines and derivatives, which increased profit by $3.3m this year but had reduced earnings by $4m the year before. Delegat said it achieved record case sales, up 9% to 3.3m cases, a touch above its February guidance of 3.2m cases. Unaudited operating profit after tax was $60.8m, up 20% on last year’s $50.8m, and exceeding analysts’ forecasts of $54.2m. Earlier this month Delegat appointed former managing director Graeme Lord to the board, The 52-year-old Lord worked at Delegat for almost 20 years from 1999 to 2018 but also spent some time in the 2000s as chief executive of Macpac. At the annual meeting last year founder Jim Delegat was challenged on the age and diversity of its board members, which include 70-year-old Delegat, managing director John Freeman, 45, Rose Delegat, 69, Bob Wilton, 76, and independent directors Alan Jackson, 66, and Shelley Cave, 49. The group’s stated strategic goal is to build a premium global wine company with a range of brands focused on internationally renowned New Zealand wine regions. Brands under the group umbrella are Oyster Bay and Delegat and Australian brand Barossa Valley. Shares recently traded at $12.76, having gained 10% in the last year. Delegat will announce its audited full-year results in August 2020. – BusinessDesk


News

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

NZ has to define its regen ag

OUR WAY: New Zealand has to define regenerative farming for itself if it is to capitalise on the brand value, Agriculture Minister Damien O’Connor says.

Gerald Piddock gerald.piddock@globalhq.co.nz NEW Zealand needs to establish its own definition of regenerative farming, Agriculture Minister Damien O’Connor says. The term regenerative originated in the United States and many of its concepts are similar to rotational pastoral grazing, already common on New Zealand farms, he told a webinar organised by B.linc Innovation. He was responding to questions from participants in the webinar. There is logic to regenerative farming’s philosophy where better soil nutrition and management ultimately flow to products. “I think we have to look at all of those opportunities and we have got, particularly in the US market, a focus on pasture-fed protein and there’s a premium being paid for that.” If Beef + Lamb’s Taste Pure Nature campaign can be linked to regenerative farming it could take advantage of those premiums. “Regenerative has a brand value. We just have to define what it will mean for us,” he said. The recent launch of the Government’s Fit for a Better World blueprint for the primary sector fits into the story NZ produces food and fibre that adhere to regenerative principles. “We think that if you buy a product from NZ you’ll be buying a product that helps the world.

Reduce clostridial loss Clostridial disease is complex, protecting stock doesn’t need to be Farms across NZ lose stock to clostridial disease. Some lose a few, some a few more than they would like.

That’s an incredible story that can have incredible brand value.

A couple of lambs or calves, an inlamb ewe or two, or maybe even some cattle. Reducing clostridial loss starts with protection.

Damien O’Connor Agriculture Minister “That’s an incredible story that can have incredible brand value.” There is some truth to claims there is not enough science to support the claims being made about regenerative farming. So NZ has to develop its own science. Farmers he has spoken to advise others to try it on a small portion of their farm and see if it works. “Plant one paddock in 40 different species and see how that goes and graze it in a different way before converting your whole farm. “There are a number of ways we can move forward on this. There are a number of different technologies that enable us to monitor it but we do need scientists alongside us, reassuring us that the direction where we are heading is the right one.” O’Connor also hinted there might be a new food and fibre ministry if Labour can form a government after the election. “It’s one of the discussions we should have.” O’Connor was responding to a question whether there are plans to better align the country’s food producers with the Ministry of Health in light of the covid-19 outbreak. Too many New Zealanders cannot get access to quality food in their daily lives, he said. “That is terrible for a country that claims to produce the healthiest and safest food for 40-50 million people who we export to.” “We have a reputational risk here that unless we ensure that obesity levels are reduced and that people have access to good nutrition on a daily basis we’ll be exposed as we market offshore.” The food production sectors needed to get together and somehow ensure there is a delivery system available so people can afford that food.” “The duopoly that we have in the supermarkets does not help in my view.”

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1. JS Munday,H Bentall,D Aberdein,M Navarro,FA Uzal &S Brown, Death of a neonatal lamb due to Clostridium perfringens type B in New Zealand, New Zealand Veterinary Journal 2020. 2. West, Dave M., Bruere, A. Neil and Ridley, Anne L. The Sheep, Health, Disease and Production. Auckland: Massey University Press, 4 th ed., 2018. Print.

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News

18 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Dairy challenges the world over Hugh Stringleman hugh.stringleman@globalhq.co.nz

NOT SEEING RED: Fonterra is not a socialist organisation, director and farmer Andy Macfarlane says.

LABOUR shortages and tougher environmental requirements are the concerns of dairy farmers worldwide, an NZX Derivatives webinar has highlighted. Three industry leaders were asked to speak on the challenges and opportunities in their countries and on their farms. Irish dairy farmer Patrick Fenton, Molanna Farm, County Limerick, said there is a looming labour shortage as farms amalgamate, now freed from the shackles of European Union dairy quotas. “We do have opportunities to grow and there is more land available but labour and environmental

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regulations have to be reckoned with,” he said. Further environmental requirements are unknowns and the sustainability of adequate milk prices also presents challenges for the future, Fenton said. Craig Caballero, principal of Caballero Dairy Farms and chairman of United Dairymen of Arizona, said labour problems in the United States are now dire because the immigration system is broken and qualified workers are hard to find. The strength of the US dollar is presenting difficulties for dairy exports, he said. Among the opportunities US dairying intends to work towards zero-energy status and use biodigesters to generate power to sell to urban consumers. Andy Macfarlane, a Mid-Canterbury dairy farming shareholder and Fonterra director, said New Zealand and other major dairy-producing countries are close to peak dairy production and the emphasis needs to be on boosting value. “We need to work together around the world to get the right products in the right places at the right times,” he said. Fortunately, all dairy companies are not pitching to the same group of consumers at the same time. The demand for alternative proteins is strong in western countries but eastern countries remain short of high-quality milk proteins and fats.

Consumers want to feel good about where the products come from. Craig Caballero United Dairymen of Arizona The value proposition to consumers must be backed by trust that farmers and companies are doing the right things, Macfarlane said. “We need to up our communication with consumers – as the farming sector globally we would barely get a pass mark.” Caballero agrees farmers are not marketing their products adequately. “Consumers want to feel good about where the products come from. “They want stewardship of the land accounted for, with milk from cows treated ethically and in convenient packages.” Fenton said slurry spreading is evolving towards dribbler bars or ground injectors but on-farm digesters are in the future. Macfarlane said Fonterra is creating equal opportunities for farmers to respond to market requirements. “I would strongly disagree that incentivisation is against co-operative principles. “Fonterra is not a socialist institution.” Farmers are good at changing when they need to but often lack the confidence to do so. Therefore, they need professional support or mentoring by early-adopters. Fenton said Irish banks consider dairy farming to be a good investment and, in general, farmers are not heavily indebted and can put forward a business case for expansion. Caballero said Arizona dairy farmers export as much as 40% of their production, mainly to neighbouring Mexico to the south. “Before now we had what I would call balancesheet borrowing but now banks want to know about your markets, long-term management and your hedging plan.” Macfarlane said NZ farmers need to build in financial buffers against prices going down by paying off debt in the good years and regarding their personal costs as variable, not fixed. Both Fenton and Caballero said the NZ nosubsidy regime is enviable, especially the control farmers have over their cost structures. NZX Derivatives runs a fortnightly series of webinars on dairy markets, risk management and trade negotiations.

MORE:

nzx.com/markets/nzx-dairy-derivatives/webinars-2020


News

farmersweekly.co.nz – July 20, 2020

19

Complex business leaves very little time for sleeping SYNLAIT Milk’s outgoing chief financial officer Nigel Greenwood has some simple advice for his replacement: learn to sleep faster. Greenwood is leaving the business after 10 years that saw the processor go from being in breach of its banking covenants in 2010 to reporting its maiden profit two years later to now having a market capitalisation of $1.3 billion. His replacement, Angela Dixon, is coming in at a pivotal point in the business,” he said. “The time is now right for a transition from me to someone new,” he said. His main advice, however, is to be prepared to find out the business is a lot more complex than it might appear from the outside. When Greenwood took on the role Synlait was a holding company with two main subsidiaries, Synlait Farms, which owned about 16 dairy farms and 10,000 cows, and Synlait Milk, aimed at manufacturing. Both were in breach of their banking covenants with two separate banking syndicates. “Part of my responsibilities coming on deck was to work with (then chief executive) John (Penno) and the board to get the companies out of breach because whilst you are in breach you are really operating at the whim of the banks,” he said. It sold a 51% stake in Synlait Milk to Bright Dairy for $80 million that resolved the breach and let the company finish building its first infant formula dryer at Rakaia. “The initial dryer that Synlait had was really a commodity dryer or an ingredients dryer and really didn’t enable us to pursue the strategy the company had to become an infant formula manufacturer,” he said. On the farming side he negotiated with a new banking syndicate and the farms were eventually spun out completely though they continue to supply Synlait Milk. The company didn’t make its first profit till 2012. “It was quite a challenging period for the business as we tried to get on our feet … there were plenty of sleepless nights,” he said. “Working in a growth company the challenges just keep on coming. You are constantly having to focus on managing the balance sheet, managing the capital strategy.” When asked about his main achievements he pointed to the

CHANGE: One of the moves Synlait made under Nigel Greenwood’s financial direction was to sell its farms. Bright Dairy transaction and the initial public offering in 2013, which had the added challenge of finding a model that let Bright Dairy dilute its stake from 51% to 39% while still being able to consolidate Synlait’s accounts into its own statements as an in-substance subsidiary. “It ticked all the boxes and was quite clever the way it was all put together,” he said. He also pointed to a receivable financing scheme the firm has used with four major customers. It means Synlait invoices a company and its banks take the credit risk on the customers, which have high credit ratings. They give Synlait the cash, funding it at a lower cost than the working capital costs it normally faces.

You are going so fast and trying to change the wheels on the bus while you are going down the motorway at 100 miles an hour is pretty difficult. Nigel Greenwood Synlait “It’s just sweet. It’s a very effective way to manage capital financing,” he said. He also pointed to the 2016 capital-raising that saw it raise $97.6m in new equity and was a big undertaking, in particular given the major Chinese shareholder. “I have been on the plane to

China way too many times to work through these things,” he said. Finally, he is proud of the country’s first environmental, social and governance linked loan that was a “feather in our cap” and the $180m bond issue that happened at lightning speed late last year. Regarding anything he would have done differently, he said he would have put greater emphasis on ensuring the systems, processes and technology kept improving at the same pace as the company was growing. “You are going so fast and trying to change the wheels on the bus while you are going down the motorway at 100 miles an hour is pretty difficult.” He noted, however, the company has always had clean audits but “I’d like to think I could have put more effort into that”. That said, the ability of the finance team to work through the covid-19 restrictions was impressive, he said. “Within half an hour of closing the ledger we know our result for the month … it just shows what can be achieved. You don’t have to all be physically in the same place to do that. “Working in a growth company you learn to sleep faster,” he said. “The hours, the commitment, the work, the belief, you have these challenging times, you have sleepless nights sometimes but jeez you wake up in the morning with the adrenaline going and you just love the excitement and the achievement.” “It’s been a hell of a journey.” - BusinessDesk

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RIGHT? THAT’S ALRIGHT! NOT ALL

W

5 ways to wellbeing

z

Dairy Women’s Network Neil Bateup, Rural Support Trust

“They say you can’t teach an old dog new tricks, but I’d rather say there’s life in the old dog yet and the science backs me up” Training your brain to learn new things makes your brain function better and can also help you feel better about life in general as you learn new skills and make new connections. Keeping your brain active and engaged also has a positive effect on your mood and wellbeing. Thankfully, that doesn’t mean study or sitting exams. Try something you’ve always wanted to do but never made time for, and encourage those around you to do the same, like: ➔ Working with others around you to

develop a new industry solution to a problem

➔ Using free tutorials online or asking

someone to teach you a new DIY project or hobby

➔ Try cooking or baking something new ➔ Signing up for a course like music,

learning to paint, or a new language

➔ Invest a few hours or a day in a First

Aid course

This page has some other ideas and links for you to get inspired to learn something new. Maybe you can use it to spark a conversation with someone you think could do with a boost at the moment?

Want to work on your own wellbeing at your own pace? Melon

Mentemia

Sparx

“In our industry today women play a major role in running million-dollar businesses. They are CEOs, health and safety managers, environmental watchdogs, labourers and policy writers – as well as balancing family life.

“Dairy Women’s Network is a place for those who are passionate about farming to thrive, whether you milk cows or are a rural professional. We welcome both women and men!

Groups offer regional events around the country. Events cover animal welfare, Human Resources, compliance, and also health and wellbeing, so dairy women can continue to support their own communities.

“Join us at an event, become a member, gain knowledge through our library of resources, or just get in touch! We would love to hear from you.”

“The Network is a not-for-profit organisation that creates opportunities for women to get off-farm and connect with each other. We offer industrystandard knowledge and soft skills, through a mix of workshops and webinars and our network of Regional

www.dwn.co.nz

Invest in your skills and reap the benefits “I feel like I’ve gained knowledge from the courses that you don’t always get from work. Studying is also a great way to meet new people and make new friends. It’s always interesting seeing what their farm is doing compared to yours at different times of the year.” SHEPHERD, MOERAKI At Primary ITO, we recognise how learning helps people develop not only their skills, but also their overall wellbeing. Our training advisers provide support and guidance whether you’re just starting out, in management, or even own the farm.

“Over the years I have seen the confidence training has given my team as they ask more questions, which in turn puts their thoughts and understanding into perspective.” FARM MANAGER, NORTH CANTERBURY

Right now the Government will pay training fees for people working in farming – there will never be a better chance to invest your time into your career. See www.primaryito.ac.nz or call 0800 20 80 20.

Now more than ever, people are turning to Apps or online resources to help manage ongoing anxiety, depression and their overall mental health. The following Apps and e-therapy tools are all developed in New Zealand and evidence tells us they can make a difference. Melon – App developed in NZ which is a health journal, resources and self-awareness tool to help you manage your emotional wellbeing. Available on the App Store and Google Play (www.melonhealth.com)

Mentemia – App developed by Sir John Kirwan to monitor, manage and improve your mental wellbeing by setting daily goals and tracking

your progress. Available on the App Store and Google Play (www.mentemia.com)

SPARX is an online game developed to help young people with mild to moderate depression and anxiety. SPARX is available on the App Store and Google Play. Also available as an online programme

0800 787 254 www.ruralsupport.org.nz

rural people helping rural people

Staying on track – an e-therapy course that teaches you practical strategies to cope with stress and disruption of day to day life from a wide range of issues. (www.justathought.co.nz) The Journal - a personalised online program that focuses on positive, lifestyle changes and problem solving (www.depression.org.nz)

Wellbeing WORKSHOPS:

Being a good boss means knowing how to both look after yourself and those who work for you. Having the confidence and knowledge to start a conversation with someone you’re concerned about is a key skill to have under your belt.

GoodYarn workshops are specially designed for farmers to help recognise and respond to friends, family or farming mates who are feeling under the pump. They are practical short courses which will get you better equipped to understand how people cope with stress, and how to help them. Contact your local RST to learn more about the next GoodYarn in your area (www.rural-support.org.nz, 0800 787 254, 08000 RURAL HELP) A one-day workshop or webinar series to equip you to respond to people experiencing mental health challenges, both at work and in everyday life. Check out their site for rural specific workshops or contact Blueprint to ask for one in your area. (www.blueprint.co.nz/workshops)

MH101

MH101 gave myself and the other Ag“ facilitators the ability to move past subjects such as budget and grass growth to start engaging in different conversations .

A one-day workshop or webinar series to increase awareness and reduce the stigma associated with addiction and help you understand addiction and recovery. (www.blueprint.co.nz/workshops)

ADDICTION 101

A national suicide prevention training programme, which can be attended face to face or completed online, LifeKeepers give you the skills to recognise and support those at risk of suicide. (www.lifekeepers.nz)

LIFEKEEPERS


News

farmersweekly.co.nz – July 20, 2020

21

Apiarists feared being stung twice Richard Rennie richard.rennie@globalhq.co.nz A STOUSH between New Zealand Beekeeping and Apiculture NZ has resulted in the beekeepers’ group accusing the national body of shabby, shameful and bullying behaviour, a claim firmly rejected by Apiculture head Karin Kos. The tension arose after NZ Beekeeping sought changes to a shift in levy payments on the American foulbrood levy, which, the group said, would result in members having to pay annual levies twice. The payment is made to eliminate American foulbrood from NZ beehives, something not achieved elsewhere in the world but viewed as possible because of the ability to control imports possibly infected colonies. The levy is managed by Apiculture NZ. Beekeepers have been paying $15 an apiary a year, which was to change to a per-hive payment with a shift from advance to arrears payments. But NZ Beekeeping president Jane Lorimer said an error in invoicing meant beekeepers were being charged twice in one year and also being asked to pay a full levy rather than only the difference between the two. “We wanted to put that right and instead we kept getting duck-shoved and it was not until we employed our barrister that we made any progress.” Some members had been threatened with legal action for non-payment. Lorimer said it was disappointing Apiculture NZ claimed there was no problem even after NZ Beekeeping had threatened to seek a High Court order. “We had offered to work with them to get the error fixed

NOT SO: Confusion caused beekeepers to wrongly think they were being charged an annual levy twice, Apiculture New Zealand chief executive Karin Kos says.

quickly and quietly and were rebuffed.” She said it was only by working with Primary Industries Ministry officials that beekeepers’ interests had been served.

We had offered to work with them to get the error fixed quickly and quietly and were rebuffed. Jane Lorimer NZ Beekeeping Kos said the change in invoicing was the result of some confusion around the technical definition of the levy billing and Apiculture NZ had raised that with MPI, which had looked at it and recognised it could be changed. “The key issue right through this is that there is no change

to the levy, the payment is still the same, there was never any risk of double payment. It was obviously a significant issue for NZ Beekeeping and we raised it.” The stoush highlights a level of tension between the two organisations over funding and levy allocation stemming back to early last year when NZ Beekeeping openly opposed Apiculture NZ’s efforts to impose a commodity levy on honey production. That was defeated resoundingly when only 24% of beekeepers voted for the levy’s introduction, a move described as disappointing by Apiculture NZ’s chairman Bruce Willis. Lorimer had expressed concern before the vote that Apiculture NZ was not the right group to administer levy income and it amounted to a tax at a time when honey income was falling. Kos said a better way for NZ Beekeeping to address issues over the foulbrood levy was to nominate a candidate on the pest management board to help oversee the levy process.

Speedy to lead ASB’s rural team ASB has appointed Ben Speedy as its rural general manager. Speedy joins ASB from his role as New Zealand country manager for Core Logic International. Speedy grew up on a farm and started his career with BNZ after graduating from Massey University with a science degree in farm management and rural valuation and a post-

graduate business diploma in business administration (marketing). He worked his way up to agribusiness manager in Hawke’s Bay. In the BNZ’s head office he worked in a number of roles including business and commercial national manageer, business transformation head and customeer

fulfilment services chief operating officer. ASB business banking executive general manager Tim Deane said “Ben’s passion for banking and the rural sector clearly shone through in all of our interactions with him as did his passion for leading transformational change and strong focus on customers and his team”.

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News

22 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Two funds support river projects Neal Wallace neal.wallace@globalhq.co.nz TWO Government departments are separately funding almost identical programmes to encourage fencing of waterways and planting of riparian strips. The two programmes are a $10 million fund repurposed from the Ministry for Primary Industries’ Billion Trees programme announced in late May and $100m from the Primary Growth Fund as part of the Government’s covid-19 recovery plan. A Provincial Development Unit spokesman said the funds are designed to create jobs but differ in that the PGF programme also aims to stimulate economic activity while the Billion Trees fund is designed to enhance water catchments. Both funds are available to catchment groups, Maori trusts, councils and landowners to pay for labour, pest control, fencing, land work and planting. Rangitikei River Catchment Collective chairman Roger Dalrymple welcomed having access to two lines of funding but says the timing and pressure from the funders to get projects under way was a bit rushed. The Government is looking for shovel-ready catchment projects to employ people who have lost jobs but also to enhance the environment.

WORK TOGETHER: Government plans to encourage waterways fencing and riparian planting feel rushed and are not being driven by farmers, Rangitikei River Catchment Collective chairman Roger Dalrymple says.

Dalrymple believes that can be achieved but the onset of lambing and calving, wet late-winter ground conditions restricting earthworks, a shortage of plants and missing the planting season are issues. “We just can’t put a fence up and plant the next day,” he says. As well as being rushed it feels like it is being pushed from the Government rather than being driven by farmers and landowners. His group, which represents nine sub-catchments, is applying for funding. The Pomahaka Water Care Group in West Otago and the

Otago South River Care Group also confirmed they are seeking funding. On May 24 Regional Economic Development Minister Shane Jones announced the repurposing of $100m from the Provincial Growth Fund (PGF) for waterway fencing, riparian planting and stock water reticulation. A Provincial Development Unit spokesman said the funding is part of the Government’s post covid-19 recovery plan and designed to create jobs. It comes with three requirements. Projects must create jobs and generate income, be under way within six months and have

Worker shortages worries pig farmers PORK producers are calling on the Government to urgently review its policies on skilled migrant workers as severe staff shortages hit. Pig farmers rely on experienced workers from overseas to meet a shortfall in staff with the necessary skills required to work with the country’s herd. However, they are concerned skilled migrants already working on farms might not have their visas renewed or existing workers trying to return from overseas will be blocked, leaving many farmers with significant staffing shortages. “The sector’s strong preference would be to have a pool of available skilled and unskilled New Zealand workers,” New Zealand Pork chief executive David Baines said. “However, pig farming is a relatively niche sector in NZ and the reality is that there is a significant shortage of New Zealanders applying for roles. “The industry relies on a supply of skilled migrant workers who have been trained

in their home countries. “The numbers in total are small, particularly compared to major industries such as dairy, but the productivity of the industry is very vulnerable because of the precision nature of pig farming.” NZ Pork has requested an urgent meeting with Immigration Minister Iain Lees-Galloway. A survey of pig farmers found many fear their existing skilled migrant staff might be required to leave NZ as a result of immigration measures taken in response to the covid-19 pandemic. Multiple farmers raised concerns migrant staff might not have their visas renewed this year, that migrant workers cannot enter NZ and existing staff on visas are facing difficulties returning from overseas visits. Further concerns include the cost of visas, processing times, a lack of pathway to residence and a lack of consistency from Immigration NZ in terms of visa length and conditions. “While we recognise that

NOT ENOUGH: There is a significant shortage of workers on pig farms, New Zealand Pork chief executive David Baines says. covid-19 has and will continue to leave New Zealanders out of work and hopefully create some opportunities for New Zealanders who are prepared and willing to work on pig farms, the sector cannot wait for such people to perhaps become available. “Our animals need continuous, skilled and committed care to be provided,” Baines said.

a high degree of visibility in the community. “Projects most likely to be approved will create employment outcomes, including working with Ministry for Social Development to employ displaced workers,” he said. Successful applications must improve water quality and include associated activities such as riparian planting and stock water reticulation, be in regions with the greatest water quality issues, benefit the wider community, have had costs scoped and be able to start within six months. “A number of applicants are Maori trusts, regional councils

and incorporated societies which can organise workers and do the fencing and planting work on behalf of landowners.” The response to the fund has been positive and the spokesman expects it to be fully subscribed. “The PDU has received more than 50 applications so far from a range of groups throughout the country.” Jones sees the funding as making waterway protection achievable. “Some farmers wish to protect their waterways but find the costs of fencing prohibitive in the short term.” In late May Agriculture Minister Damien O’Connor and Jones announced changes to the funding criteria from the Billion Trees programme, freeing up $10m for large-scale planting to enhance waterways at catchmentwide level. MPI said a key aspect of the fund is that work must follow a catchment plan or strategy and show impact or scale. “Projects must also align well with catchment group funding criteria, the broader objectives of the Billion Trees Fund and the Government’s response to water quality and ecological outcomes.” Final funding allocations are under consideration and there have been 37 expressions of interests from catchment groups.

Growers get behind seed levy renewal Annette Scott annette.scott@globalhq.co.nz GROWERS have overwhelmingly supported the seed levy, ensuring the availability of non-proprietary and uncertified herbage seeds for the next six years. The seed levy order, backed by 91% of growers, has been approved by Cabinet. Federated Farmers herbage seedgrowers chairman Hugh Wigley said the levy safeguards supply of non-proprietary and uncertified seeds. “Grasses and clovers are vital to our sector but contracts for growing from proprietary seed are not always available and are more expensive. This levy provides different options to our farmers.” The Commodity Levies (Nonproprietary and Uncertified Seeds) Order, known as the Commons, was first mandated in 1997 when the responsibility for maintaining the cultivars was transferred to the industry from the government. Levies are collected from the Commons including Nui, Moata, Manawa, Tama, Ruanui, Huia and Pawera, as well as uncertified ryegrass and red and white clover. Wigley said for the Commons to continue to be publicly available, live nucleus and pre-nucleus seed

of each of the Commons must be maintained to make both breeder seed and basic seed available to growers. “It costs about $180,000 for Grasslanz Technology to ensure this base material is available to growers. “About 15% to 20% of this material comes from the commercial sale of breeders and basic seeds while the remainder comes from the levy.” The levy is collected on behalf of Federated Farmers by all seed testing stations on the first purity and germination test. It is set at a fixed per kilogram cost on the projected harvest of each of the Commons seeds and the estimated kilogram price received by the growers. The maximum levy rate is 5% though it is typically around 1.5% to 2%. “Federated Farmers doesn’t make any profit from the levy. It’s only about generating enough revenue to pay Grasslanz Technology. “It’s an industry-good activity we do for the sector and to have growers affirm support for the levy is satisfying and means that these cultivars will continue to be available for growers over the next six years,” Wigley said.


News

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

23

Chips glut threatens the local spud sector Annette Scott annette.scott@globalhq.co.nz POTATOES New Zealand wants anti-dumping tariffs imposed on imported chips as it fears a real threat to the $1 billion local potato industry. It fears frozen chips from Belgium and The Netherlands are being dumped on the NZ market. PotatoesNZ wants the Ministry of Business, Innovation and Employment to impose antidumping duties to avoid devastation of the domestic potato industry. “There’s a significant amount of inventory of frozen fries sitting there that could basically wipe out our entire domestic industry almost overnight,” PotatoesNZ chief executive Chris Claridge said. Cheap chips are in oversupply because covid-19 has closed hospitality outlets worldwide. The surplus combined with European subsidies will drive export prices down further, increasing the threat to the NZ industry, Claridge said. He expects the prices of imports to undercut local prices by 18-38%. “The damage this will cause will destroy the NZ industry.” PotatoesNZ says it has shown huge inventories of foreign potato products exist and are being dumped, making it clear the threat is real and an investigation into anti-dumping duties is warranted, Claridge said. A separate PotatoesNZ commissioned Economic and Community Impact Report from Business and Economic Interest (BERL) said in the absence of a duty potato processors will be forced to cut production and demand for potatoes from local growers will drop. Inevitably, that will lead to a loss of employment and threat to the viability of some potato-growing businesses.

While potato growing and processing is a relatively small industry it still directly and indirectly provides employment for 5000 people. Potatoes are one of the few crops grown outside, produced in most regions and harvested all year round. “The industry is therefore an important provider of widely distributed and stable employment,” Claridge said. MBIE is considering the PotatoesNZ applicaton.

NOT FAIR: PotatoesNZ chief executive Chris Claridge says a significant amount of frozen fries dumped on New Zealand could wipe out the entire domestic industry almost overnight.

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The damage this will cause will destroy the New Zealand industry. Chris Claridge PotatoesNZ Imposing an anti-dumping duty on imports will help maintain demand for local potatoes and ensure the continuity of employment and business in the growing sector, the BERL report said. A duty will mean potato growers will experience the same market conditions, including competition between themselves and fluctuations in market prices, as they did before dumping. Claridge warned five NZ processors employing 450 people will be directly affected if no duty is imposed. “These processors will be the first to be harmed by the dumping of frozen potato products in the NZ market.” The principle downstream industries from potato processing are the food service industries, particularly the fast food sector. “These industries might enjoy lower input prices while dumping continues but they could face disrupted supplies and higher prices once the European market conditions improve.” Claridge said there is no guarantee the benefit of lower prices will be passed on to consumers. Dumping occurs because overseas producers have a glut of produce or a collapse in demand in their own markets and both these conditions are unlikely to be sustained. “A longer-term consequence for consumers is that they could face higher prices if NZ-based processors and growers are forced out of business by dumping, “You may get cheap chips for a period time and then, when the domestic producers are wiped out, I will guarantee you the price will go up.” Claridge warned there could be job losses.

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ASK FOR MULTINE B12 SELENISED. ACVM No: A11766 Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz NZ-MUL-200500001 © 2020 Intervet International B.V. All Rights Reserved. *Baron Audit Data, March 2020


AginED Ag ED

#

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

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Volume 16 I July 20, 2020 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz

with Beef+Lamb NZ We thought you might be interested in learning about someone who has made nose-to-tail culinary cuisine their career.

A LADY FARMER

Hannah Miller is the lady behind ‘A Lady Butcher’. She realised by the age of 10 that she wanted to work with food and more specifically become a chef. Later while studying at the Culinary Institute of America she was introduced to the idea of nose-to-tail dining. Following a move to London to pursue this new interest she landed a position at the Paternoster Chophouse in London and there her butchery career began. Hannah found a “zen” in butchery that she hadn’t in cheffing and developed an understanding of the connection between the meat (this animal) and the food it was becoming. She says, “It was my awakening; what did it mean to eat sustainably, to eat consciously?” “You have to have respect for that animal, for the life that’s been taken. For me, that means nothing goes in the bin – everything is used, which in turn is the most sustainable approach. This sums up my sentiment from that day till now.” After leaving London Hannah continued experiencing different cultures and food choices. Including four months in Antarctica where her sustainability resolve was firmly tested and she found herself eating a vegetarian diet, as her principles wouldn’t allow her to eat the commodity meats they were cooking. After a move to Australia and a brief stint back in the US to hone her skills under a master charcutier in Washington DC, she came to New Zealand. A Lady Butcher was born from a desire for better charcuterie (cured meats) in New Zealand. “Back then it was nearly impossible to eat New Zealand charcuterie. It was mostly imported, which seemed insane (to me) as New Zealand has some of the best quality meat in the world. There was nothing to be done but cure meats myself.”

After honing her practice with her boyfriend’s beer fridge and a few home-kill pigs, she took her wares to a couple of Auckland’s top chefs to see if they would like to have traditionally made, Italianstyle New Zealand charcuterie on their menus. They answered yes and ‘A Lady Butcher’ became a reality. The range includes moorish delights like Southland Lamb Prosciutto, Free Range Pancetta, and New Zealand Wagyu Bresaola, available at specialty retailers nationwide. Hannah sums it up best; “The meat is a vessel from which we can tell the New Zealand story. I teach butchery and charcuterie classes, present in schools, and offer tastings in my local retailers. Each of these endeavours are about educating Kiwis on the foods they are eating. We, New Zealanders, should be proud of our produce. It is pure and the world has come to seek it. I use Organic Marlborough sea salt and foraged herbs and spices from Central Otago to cure all of our meats and to me this is a no-brainer. Upon moving to New Zealand, I never expected to truly see the clean and green New Zealand that is presented in the pamphlets, and now that I call this place my home, I’m so proud to verify that these pamphlets were right. So, enjoy our meats, their natural unadulterated flavours, and thank your famers, for without them, none of this would be possible.”

For more information on A Lady Butcher head to: https://www.beeflambnz. co.nz/nose-to-tail-month

1

Go to the AgriHQ Market Snapshot page

1 Go to www.farmersweekly.co.nz 2 Find and watch the OnFarm Story of Lisa and Kurt Portas “Showing people what we’re about” and read the accompanying article “Helping Farmers tell their stories”. 3 How big is Palliser Ridge? 4 What do the Portas farm?

STRETCH YOURSELF: 1 Kurt was given the opportunity to become the farms stock manager at a relatively young age of 22. What were his qualifications and experience for the role? 2 Lisa would like to help farmers share their stories to benefit the industry as a whole. Including things like the Open farm’s initiative. What is this initiative? Do you think things like this are beneficial to the food and fibre industry? Tell us why or why not. 3 The Portas and Laws have a number of diversifications other than just beef and lamb production, including brand recognition for their products. Can you list some of the brand recognitions they have and types of diversifications they are doing on-farm? 4 Lisa talks about agricultural tourism, what is this? Do you think it has a sustainable or equitable place in the food and fibre industry? Send us your thoughts to: agined@gmail.com

SHOW US YOUR BOOTS! Send us photos of your much loved or repurposed gumboots. Over the next four weeks we are looking for the best photos of your favourite gummies! Perhaps you have made yours into some other footwear, or maybe your dad has a pair that are older than you are. So, send in your photos by July 26 and thanks to Skellerup you could win yourself a brand-new pair of Red Bands if you are chosen as one of our winners!

2 What class of cattle had the highest value last week?

Make sure you follow these steps to enter:

3 Were lamb prices stronger in the North Island or the South Island last week?

1 Head to: www.redband.co.nz

This graph shows the total NZ lamb export volumes. In June, just over 26,000t of lamb headed overseas, this is higher than last season, but just below last month. 1

As can be seen by the graph, each year displays a typical pattern where export volumes are highest and lowest at similar times. What months would you expect exports to be at their highest and lowest this season if similar trends occur?

2 Can you give any reasons for this? A hint: Does the supply of lamb to the processors stay constant throughout the year or does that fluctuate as well with the supply of lambs that are ready?

2 On their website, find the answer to this question: When was the first pair of Red Band Gumboots manufactured? 3 Include the answer in your email, attach your gumboot photo, and send through to us at: agined@globalhq.co.nz For answers to last week’s questions and more content head to our website: www. sites.google.com/view/agined/home


News

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

25

Trees, vines still need workers Richard Rennie richard.rennie@globalhq.co.nz THE first graduates from the Government-funded winter pruning programme have stepped onto kiwifruit orchards as the industry continues to eye more workers amid continuing labour shortages. The programme has $200,000 specifically to train winter pruners. The kiwifruit sector was hard hit by covid-19 when more than 1000 Recognised Seasonal Employer workers from the Pacific Islands were prevented from coming here for the work. Many are skilled pruners required for the intensive work after harvest. The funding has enabled the sector to develop two courses for potential trainees. One was a one-day taster to provide an insight to the industry while the other was a five-day intensive training programme aimed at building pruning skills. Between them the courses drew in 56 participants with 26 completing the five-day programme. New Zealand Kiwifruit Growers chief executive Nikki Johnson said course costs were fully funded with participants also receiving a complete set of pruning gear to aid employability. Typically, winter pruning is regarded as the sharp end of the orcharding skill set and it can take two or more seasons to master. Once trained a capable pruner can expect to earn about $1500 a week on contract. Johnson said by the end of the five-day course participants had gained a strong start, understanding different pruning styles for different varieties, with a focus on practical skills. Labour coordinator Gavin Stagg said the first intake was a broad cross-section of people aged 20 to 50 from a wide employment spectrum.

TASTER: Trainee staff getting practical training for winter kiwifruit pruning programmes in Bay of Plenty.

Of course, it is not for everyone but for those who did train up there are good job opportunities there. Gavin Stagg NZ Kiwifruit Growers “We had people who had lost their jobs in the hospitality sector who may have picked kiwifruit before. We even had someone who had been a builder and we had a good balance of males and females.”

Having a one-day taster proved invaluable in sorting out those committed to training over the five days. “Of course, it is not for everyone but for those who did train up there are good job opportunities there.” All the five-day trainees were given a list of potential employers. “And there were far more employers than there were people on the course.” Some are now working in winter pruning operations. Stagg said there is still a strong demand for pruners and Kiwifruit Growers is looking at arranging a second course and using the template to set up courses outside Bay of Plenty,

including in Gisborne and Northland. Meantime, in Rotorua pine tree country there is still opportunity for displaced workers to get a foothold in the silviculture industry. Forest Industry Contractors Association chief executive Prue Youngeer said numbers have been quite light nationally for the $2.5 million funding provided for silviculture training. Earlier this year estimates were that about 1000 extra workers would be needed to help meet planting targets nationally. “I am hearing most contractors are on track and have staff with one or two saying they could use a few more.”

The $2.5m is enough to train 500 new staff and Younger suspects there might be a surge in interest in September when the Government wage support stops. “So far we would only just be knocking on 100 people. We have had quite strong uptake from around East Coast but, perhaps surprisingly, a shortage of people applying in the Rotorua district given the impact of covid on tourism.” Younger said the industry is keen to promote the many opportunities for people keen to work in forestry. She cautioned the $2.5m came on a use-it-or-lose-it basis and the support package has been extended till late September.

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ACVM No: A11766 Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz NZ-MUL-200500002 © 2020 Intervet International B.V. All Rights Reserved. *Baron Audit Data, March 2020


Newsmaker

26 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

ASPIRATIONS: Roundtable for Sustainable Beef inaugural chairman Grant Bunting says it has some lofty goals but those who know him will know that if he is involved there needs to be practical, achievable actions.

Group to set beef’s priorities Grant Bunting never thought he would become so passionate about sustainability but says the sustainability challenge cannot be ignored if New Zealand producers want to improve their standing on the world stage. He talked to Annette Scott.

G

RANT Bunting has long had a genuine interest in farming systems and practices but new and evolving industry challenges have somewhat changed his outlook. The inaugural chairman of the recently formed New Zealand Roundtable for Sustainable Beef said the growing importance the world puts on sustainability credentials across the supply chain has changed many a view. “I have to admit I am quite traditional in my views but these sustainability challenges can’t be ignored. “To fight against them will achieve nothing. “I am more passionate now about sustainability than I would ever have thought I would be and the fact remains it’s consumerdriven and we have to play in the game.” A collaborative approach is needed to move the beef industry from a compliance mindset. For NZ beef to maintain or improve its standing on the world stage sustainability will need to evolve from compliance and regulation to a more equitable discussion where all parties involved can contribute without the need to take sides or defend a position. “The recent approach where political point-scoring results in alienating stakeholders is not conducive to a successful outcome,” Bunting said. “The underlying principle of the roundtable philosophy is to stimulate discussion and identify solutions that naturally fit with all stakeholders’ objectives.”

The roundtable was launched in November on the back of the growing importance the world puts on being able to spell out sustainability credentials across the supply chain. It is about beef industry stakeholders working together to position NZ as a leading producer of beef that is safe and produced in a way that is environmentally sound, socially responsible and economically viable. “Countries around the world want their beef to be recognised as the best.

We need to ensure we not only keep up with other countries but we want to be world leaders. Grant Bunting Roundteable for Sustainable Beef “We need to ensure we not only keep up with other countries but we want to be world leaders,” Bunting said. As part of that process the roundtable has defined the standards for a NZ setting and identified metrics to achieve those standards so they can be put into practice. “We have some lofty goals but those who know me will know that if I’m involved there needs to be practical, achievable actions. “The first step is to grow the membership so that we have as

many industry stakeholders as possible represented. “A united industry is a stronger industry, which, in turn, benefits those involved today and in the future.” Roundtables have been functional in several countries for some time and Bunting has experienced it in action in Canada. “Canada has been held up as an example of just how successful it can be and that success comes from being producer-led, as it is in Canada. “While it’s early days for NZ we do have a handful of good producers in discussions with us and it is the plan for the NZRSB to be producer-led. “It has been industry-supported to get it off the ground but to be successful we need producers on board and leading it.” Bunting is confident that will happen as membership is rolled out to producers in coming months. Bunting, who is also Anzco Foods systems and supply general manager, expects his tenure as chairman will be only till the incorporated society has its inaugural annual meeting in March. “Then we are hoping for it to be producer-led. That’s the ultimate objective and globally that’s the way it’s been exceptionally effective. “The perception of the roundtable, being round, therefore, means encompassing. “We want all voices around the table to get a wider collective understanding and there’s nothing novel about that. It’s putting into practice in NZ what is

all-inclusive practice happening globally. “We need producers to be part of the solution so the focus now is to get producers engaging. “We have positive support to date and a membership drive is due to kick off to promote membership and demonstrate the benefit of leveraging partnerships. “It’s not about us taking a position. “It’s about us learning what people want to understand in relation to their farming systems, such as the Emissions Trading Scheme, what it is it they want to understand about ETS? “It’s then about providing good, factual, accurate information.” From the NZ perspective there is a handful of priority issues to address. They include climate change and freshwater policies, the ETS, regenerative agriculture, plant-

based proteins and afforestation. The founding members are Anzco, Beef + Lamb, Greenlea Premier Meats, Fonterra, McDonalds, Silver Fern Farms, World Wildlife Fund for Nature and farmers. AgResearch joined earlier this year. “The NZRSB, which is aligned to the Global Roundtable for Sustainable Beef, differs from other organisations active in this space because its members span the supply chain so we can take a more holistic approach to implementing the standards that will help us achieve the vision of NZ beef being recognised as the world’s most sustainable beef,” Bunting said. Anyone from the supply chain can join.

MORE:

www.nzsustainablebeef.co.nz

The NZRSB so far A STEERING group has been working to establish the NZRSB since 2017. Most recently it has done an independent sustainability materiality process in conjunction with the Red Meat Profit Partnership. The research was done independently in 2019 under Global Reporting Initiative (GRI) standards to determine sustainability issues and criteria material in the NZ context. The research canvassed the views of stakeholders across the supply chain,

with customers globally and, importantly, with the Government, academia and civil society. The work will shape how the NZ Roundtable prioritises its efforts. While the breadth of issues is significant given the scale of the beef value chain the five highest rating material sustainability issues identified by stakeholders are animal welfare and ethics, on-farm environmental management, water quality and use, transparency, measurement and verification, and industry leadership and vision.


New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

27

Reading the digital tea leaves Psa, Mycoplasma bovis, covid-19 and the global financial crisis are all tumultuous events that threw industries and countries into chaos. But two AgResearch scientists are working on an artificial intelligence system that might be the fortune teller helping protect New Zealand from such disruptive events in future. They spoke to Richard Rennie.

A

GRESEARCH data scientist Munir Shah and supply chain researcher Mark Wever are intent on identifying the warning signals of threats to agriculture and trade as early as possible. They are analysing the world’s data flows using an early warning system powered by artificial intelligence in collaboration with researcher Niall O’Leary from Cork Institute of Technology in Ireland. “If you can identify threats earlier and asses their impact both quicker and much more comprehensively you have more time to react. “For covid-19, that would have meant, for example, that users of our system would have been able to anticipate shortages of items like face masks and disruptions in supply chains earlier. We could have taken timelier mitigative actions,” Wever said. The work comes as the primary sector checks its footing postcovid, following on from an assortment of threats it has been forced to deal with over the past decade including Psa and Mycoplasma bovis. The proposed early warning system could help regulators and the industry by continuously and more comprehensively scanning for risk. They are essentially looking to read the globe’s digital tea leaves, sifting through gigabytes of data surging through global information outlets, identifying links and relationships often too subtle to be detected through simple human observation. Wever has a background in finance, an industry that has spent years trying to home in on market behaviour and build predictive capacity.

“But this is something of a first for the agri-sector. “It involves breaking things down into micro, meso and macro areas and using AI to identify nonobvious patterns and relationships in data sets using machinelearning algorithms.” At a macro level that might be scanning how regulatory institutions are doing their job, even what legislation and rules are coming into play in a certain sector. Meantime, at a meso level it could be identifying clusters of behaviour in the supply chain, such as particularly large volumes of purchases of certain products like personal protective equipment in one part of the world. The AI technology includes tools like natural languageprocessing algorithms capable of scanning written media like newspapers and social media posts combined with video and image processing and speech to text algorithms to efficiently dissect vast and varied data sets. “So, you may have a system that is agri- focused but it needs to be able to look wider at financial, economic factors like all imports and exports,” Wever said. In the case of M bovis AI scanning might have detected unusual patterns of live animal transfers or imports of farm machinery as potential risk factors early on. Similarly, Psa infestation might have been flagged sooner by the unusually higher levels of pollen and budwood importations that ultimately were linked to the disease’s outbreak. The work will help speed up the process by which new risk forecasting models can be developed, tested and adjusted, making them less reactive.

FORTUNE TELLER: The AI work by Mark Wever, right, and Munir Shah might help make New Zealand better able to predict and manage future diseases and incursions.

In the context of a disease outbreak that could help authorities quickly test the accuracy of existing epidemiological models in real time against latest disease spread data. “We can identify warning signals much earlier and provide more-up-to-date measures of the system’s fragility against these risks.” The work has been done through AgResearch in recognition NZ’s largely biologically driven export sector needs greater resilience in the face of ever-widening biosecurity and economic threats globally. “In general people tend to deal with systemic risk in a reactive manner when that risk has already transpired,” Shah said. It is also human nature for people to forget relatively quickly after an event what needed to be learned from it and applied to

avoid having to react to the next one rather than be equipped to deal with it. The men predict the assorted crises already experienced are likely to become more frequent as countries become ever more connected and dependent on each other for trade. Supply chain disruptions are more likely to have cross-border impacts that ripple all the way back to this part of the world. “We can see such a system being a collaborative effort across industry with all parties contributing and benefitting from it.” They are already in the early stages of having discussions with interested parties about how to take the work live. They believe it will put NZ at the global cutting edge of predictive AI capacity. But both men are emphatic their system is not a big-brother means of controlling individual

So, you may have a system that is agrifocused but it needs to be able to look wider at financial, economic factors like all imports and exports. Mark Wever AgResearch behaviour. Rather, it is a system for preventing industry-level threats by collecting and analysing anonymised data through AI. “Farmers, in particular, already have to submit a lot of data. We just want to use that data more efficiently to develop a more sophisticated early warning system for the benefit of them and NZ.”

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Opinion

28 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

EDITORIAL Hey, let’s call it the Wool Board

I

T WASN’T that long ago farmers voted against paying a wool levy. One wonders if, given the opportunity again, wool growers would do the same. Prices paid for strong wool have been on a steady descent for some years and for many sheep and beef farmers the shearing bill can be bigger than the wool cheque. This is a strange situation, given we live in a world that is increasingly aware of the detrimental environmental affects of plastics. Just over a week ago the Government released the longawaited Wool Industry Project Action Group report. Its Vision and Action for New Zealand’s Wool Sector made three recommendations to kickstart the fibre. As well as creating a marketing investment strategy the report called for a governance and co-ordination group to implement the strategy. Sounds a bit like the Wool Board. Various groups have been working on their own innovations and partnerships to reclaim strong wool’s rightful value and some have been very successful. In this issue you can read about Woolchemy, a New Zealand company looking to make personal protective wear and disposable nappies out of strong wool fibre. Other companies are partnering with niche clothing and footwear brands. These individual successes haven’t filtered through to wool prices across the board, however. The fact is that wool’s value has dropped in line with its unsustainable nemesis, polyester. The tide has been turning for a while, though. People are sick of seeing plastic waste wherever they go. Drinking straws and single use plastic bags are history and that’s probably just the start. Wool’s time has been now for a few years now, the industry as a whole just hasn’t siezed it. Could a unified, strategic and bold strategy and vision finally return the fibre to value? For the sake of our farmers and the planet, let’s hope so.

Bryan Gibson

LETTERS

Farming does affect ecology AS A farmer with experience in forest ecology and management and a keen interest in the truth of New Zealand’s history I was staggered David Skiffington (June 22) should call the forest industry a leech on the public purse. He is presumably unaware of the history of forest clearances in NZ by Maori settlers and our British farming forefathers. In 1861 the total area of established grassland was about 70,000 hectares but by 1901 it had reached 4.5 million hectares. Forests once covered 80% of the country. Now it’s about 23%. There is no question pastoral farming has been the principal component of our economy, despite being subsidised until the 1980s.

However, farming has had a profound impact on our ecology and in some places, land stability. The highly erodible North Island east coast, Rangitikei and other North Island catchments and the South Island high country have been flooded and eroded, stripped of the natural forest. The poor quality of freshwater resources through nonchalant farming and fashionable nitrogen use is the latest attack on our land and water. There have been some localised and dramatic occasions of poor forest harvesting but nothing that compares with our imperfect farming history. If Skiffington is really interested in the truth of land use in NZ he should read Whose High Country?

A history of the South Island high country of NZ by Roberta McIntyre. Many home truths are revealed there and the real leeches become apparent. David Field Rotorua

Not a saviour I AGREE with Rob Hewett (Farmers Weekly, July 13). Under the headline, Don’t be cynical, regen can sell, he sets out the reasons why New Zealand agriculture should embrace regenerative agriculture as a brand to sell our products. But let us not confuse marketing principles with scientific principles. NZ farmers are, in many important ways, already practicing regenerative

agriculture and to use it as our marketing message has some integrity. If that is the message that is going to get our products over the line then so be it. Good marketing. However, if we adopt regenerative agriculture believing we will save the world we are deluding ourselves. To claim regenerative agriculture will reduce or even eliminate the need for fertiliser contradicts science and reason. Similarly, the claim it can mitigate climate change by increasing soil carbon stocks is implausible in our clover-based, pastoral climate system. Good science. Dr D C Edmeades agKnowledge

Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Stephen Bell 06 323 0769 editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 027 298 6127 colin.williscroft@globalhq.co.nz Annette Scott 03 308 4001 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Gerald Piddock 027 486 8346 gerald.piddock@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com Riley Kennedy 027 518 2508 Cadet journalist riley.kennedy@globalhq.co.nz

PUBLISHER Dean Williamson 027 323 9407 dean.williamson@globalhq.co.nz

Jody Anderson 027 474 6094 Waikato/Bay of Plenty advertising jody.anderson@globalhq.co.nz

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

29

Regen ag can’t wait for science Janette Perrett

E

ACH time the Farmers Weekly arrives in the letterbox I search for articles that refer to New Zealand’s future in agriculture. I enjoy reading Jacqueline Rowarth’s opinion page but of late I have felt a little annoyed by the stance she portrays. Lately there was another stab at the country’s race towards regenerative farming. While the name might be new and fresh it has been in the organic sector for decades thanks to the Rodale Institute so it’s not really a new fad. According to Rowarth NZ agriculture has always been regenerative, strip grazing the pasture, returning carbon and nutrients to the soil. The author holds all the relevant qualifications to support her article and it is obvious no one will change that. I have been dairy farming for 45 years and have had the privilege of working on properties in Taranaki, King Country, Waikato, South Auckland and Northland. Every farm was different and had to be treated as such. I have witnessed NZ’s conventional, industrial methods, both good and bad, mostly the latter. I have seen the girls suffer diarrhoea while I couldn’t wait to feed them meal to bung them up. I have had to send beautiful animals to the freezing works because antibiotics weren’t going to kill the mastitis. I would shut the cows into a paddock of ryegrass up to their knees and all they wanted was out of there. Then there were the paddocks that looked like the harrows had been

The

Pulpit

through after grazing because the herd pulled every plant out of the ground when the roots were too shallow. I found my way out of all that in 2006 and not a minute too soon. My health and that of my family was suffering and milking the cows had become a chore and

I now look over the boundary fence and see other farmers suffering like I was.

a bore. The fun had gone, it was getting harder and harder to get out of bed each morning. In November 2006 I ditched all the mechanical toys, all the meal bags, truckloads of carrots, all the urea, synthetic fertilisers and chemical inputs to begin a completely new and exciting journey.

I have never looked back but I now look over the boundary fence and see other farmers suffering like I was. Regenerative agriculture has been taken up by a young, very passionate group of farmers who want to enjoy their land, their animals and have time for their families. They are out there looking for the solutions themselves, alternatives to the chemical regime our peers have instilled in us. They also know there are already farmers worldwide who have discovered those alternatives and are very successful at using them. They are starting at the same place I did but they have been able to give it a name. It has been nearly 15 years since I turned the corner. I don’t need a degree to share my new-found discoveries. I haven’t used antibiotics for 15 years and don’t need them. Regenerative farming doesn’t mean fewer animals. They are our composters so we need more not fewer. I whip cream off the milk billy at any stage during the season, not just after Christmas. The dogs love eating the cowpats. Weeds are succession plants and nature has asked them to grow for a reason so I don’t kill the messenger. The paddocks are covered with cowpats in perfect pavlova shapes all year round. Dung beetles have arrived in their thousands so we must be doing something right. We shouldn’t be discouraging regenerative farmers, we should be learning from them and sharing knowledge. We don’t have time to wait for scientific proof on a lot farm issues. For example, it will take

BIG CHANGE: Janette Perrett, a dairy farmer of 45 years, says she has never looked back since finding her way out of traditional ways of farming in 2006.

400 years to fully investigate the periodic table to see whether we need some of the elements in our fertiliser. We have to discover the alternatives ourselves. The biocides farmers add to the environment every year are unsustainable. Consumers demand better and so should we. The world needs younger workers in the agricultural sector. Regenerative agriculture just might be the way to get them there.

Who am I? Janette Perrett is an organic dairy farmer north of Whangarei and author of You Have Been Given a Gift. She manages land and animals as a whole and by farming with nature has made some amazing discoveries.

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 Vote for tahr I HAVE had much first-hand experience of tahr during years of employment with the Forest Service. The Himalayan tahr is native to the Himalayas in southern Tibet, northern India and Nepal but is listed as near threatened on the International Union for Conservation of Nature Red List. Yet in New Zealand tahr are treated as pests – vermin to be exterminated. While the Tahr Foundation and Deerstalkers’ Association are seeking High Court injunctions

DECIDED: The treatment of tahr has determined how many hunters will vote at the election.

it’s worth noting Forest and Bird is too but for opposite reasons. Conservation Minister Eugenie Sage has been a prominent member of Forest and Bird, whose deranged, zealot-based ideology is extermination of introduced wild animals. Are not humans an introduced species too? Such is hypocrisy. Whereas tahr, deer, wapiti, chamois and other game animals are managed population-wise overseas, NZ has crazed polices based openly or covertly, depending on species, of extermination.

The tahr is an asset that browses snow grass and other alpine plants. It’s no different, generally, than moa, the various species of which for millions of years browsed the shrublands, forests and alpine herbfields of prehistoric NZ. Then, in a matter of centuries, they were wiped out. So browsing game animals have generally replaced the browsing component of the million-yearold ecosystem. Shot tahr are left to rot, in itself a shocking waste of valuable protein. The cruelty of crazed culling is to leave young kids motherless and facing a slow death by starvation. A major criticism is the extermination ideology is the lack of justification, a waste of taxpayer money, ironical in view of the Government’s covid-19 massive borrowing. For myself and many of the hunting public this will dictate how I vote in the coming election. Laurie Collins Sporting Hunters Outdoors Trust Westport

Who to blame? WITH all the recent talk, again, of revival of the strong wool industry I am compelled to air my annoyance at the way wool carpet has been shafted by the dominance of Kevin Milne promoting solution-dyed nylon. He has singlehandedly convinced the New Zealand public nylon carpet is the only way to go and through Carpet Mill with its Consumer endorsement. His familiarity from the Fair Go television programme, which is undoubtedly considered the honest show on television, has been very carefully manipulated into the advertisements he fronts. When Jeanette Maxwell was the chairwoman of Federated Farmers meat and fibre section I raised it with her but failed to get any traction from her. Until a counter advertisement is aired there will be little to stop the established traction Milne has achieved. Such is the demise of woollen carpets that when one is looking to buy, the choice is very limited, when you get to deciding between

loop or cut pile, and then there is a very small colour range. And yes, I did put my money where my mouth is, buying 68 broadloom metres for recarpeting our house. Julian Hughes Rotorua

Take your carp Dear Department of Conservation and Waikato Regional Council. Could you please assist the farmers of the Whangamarino catchment by removing your koi carp from our waterways. We cannot do our part successfully without your co-operation. Stu Jefferis Waerenga

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


Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Great reports get scant attention Alternative View

Alan Emerson

YOU have to wonder what Agriculture Minister Damien O’Connor needs to do to get some reasonable coverage in the mainstream media. Prime Minister Jacinda Ardern released his report on the farming sector’s future, which I thought was a well-researched document. The coverage he received in the non-farming media was scant. For the record, I totally agree with the thrust of the document. For it to be successful, however, we need to remove the central and local government blockages. I thought the document on the future of wool was excellent though it achieved little media coverage outside the specialist agricultural media. I suppose if O’Connor wants media exposure he could grab a piece of alcathene pipe and touch a cow with it. That would get him on the front page of every newspaper in the country and be the lead item on television and radio news. It is a sad indictment. I’ve covered the wool industry on and off since 1972 and it never ceases to amaze me. I remember the great acquisition debate well and how

farmers shot themselves in the foot over it. The late Wilson Whineray outlined a strategy for the wool industry, which I thought was a great way forward. It was roundly rejected by farmers who demanded to be able to sell their wool at auction. A new farmer organisation, the Sheep and Cattlemen’s Association, which Donald Trump would have been proud to lead, was formed. Iniquitously, the anti-campaign was funded by the carpet companies. They obviously figured that if Whineray was successful they’d have to pay more for wool, meaning farmers would earn more.

I remember the great acquisition debate well and how farmers shot themselves in the foot over it.

Farmers accepted the carpet companies’ cash and the Whineray initiative was dead. Subsequent to that I remember covering an Electoral College meeting when one of the candidates came up with the astounding statement that if a farmer couldn’t afford to hold his wool for three to five years till prices came right he shouldn’t be farming. He was voted onto the Wool Board.

The board achieved nothing other than developing a culture of extravagance into an art form. More recently I went to a meeting at the Tinui pub where Wools of New Zealand provided a jump-for-joy presentation. At the time I wrote it wasn’t a thing I’d invest in, which annoyed some. Realistically, my decision was the right one. Their vision to be the leading innovative sales and marketing company for NZ strong wool is just that in my view, a vision removed from reality. Over the years I found the demise of the strong wool sector disappointing because it has so much going for it. In an era when micro-plastics pollute the oceans we have little commentary on the value of the natural fibre that is wool. When we are subsidising some home insulation we are ignoring wool in that role. As well as being a good insulation it is also a fire retardant. Local and central government happily put synthetic carpets in their buildings, ignoring the natural wool fibre. SAFE’s honey, the late Anna Nicole Smith, was the star of their advertising campaign, I’d rather go naked than wear wool. Really? Honey it’s cold outside. So now we have a new report called Vision and Action for the NZ Wool Sector. I thought it was excellent. Those on the pilot committee were well chosen, covering all aspects of the industry. I did approve that a large number

STRENGTH: Federated Farmers meat and wool chairman William Beetham says wool sector governance oversight should be professional and based on their skills and insights with the ability to deliver strong governance systems.

enjoyed a Lincoln education. The document itself is practical and focused where previous strategies have missed on both counts. The report does suggest our wool sector has a long proud history, which, for the reasons outlined, I disagree with. It goes on to say natural fibres are on the cusp of a renaissance, which I totally support. There are three recommendations for action. They are to develop a market-focused investment case and strategic roadmap for the strong wool sector, to establish the capability necessary to get the sector match fit and ready for the opportunities ahead and to establish a governance and coordination capability. That governance and coordination capability is what will make the initiative sink or swim.

Feds Meat and wool chairman William Beetham said the governance oversight should be professional and based on their skills and insights with the ability to deliver strong governance systems. I agree. The strong wool sector has sunk in the past as a result of all the experts offering opinions and advice, informed or otherwise. The steering committee selectors ignored that and came up with a diverse, well-qualified crew with several new faces. That same focus needs to be a priority. So, I’m feeling better about the report than I have over many years of wool industry initiatives. We need to get behind it.

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

Is Collins a reincarnation of Rob Muldoon? From the Ridge

Steve Wyn-Harris

FROM the Ridge: Thanks Judith for agreeing to have a chat with us. Congratulations on finally securing the top job as leader of the National Party. I had a brief fancy that an unnamed homeless guy who tagged along at the back of caucus ended up being elected. Judith Collins: There’s one more job I’m after and that is not too far away. More than happy to talk to you, surprised you were interested. FTR: I did think about that. I’ve never been tempted into having one of these illusory interviews with Jacinda, Simon or Todd but you are hard to resist. When you just told me about the other job you are after, I’m interested in how you can raise your eyebrow and smile at the same time and make

yourself appear sinister, deadly serious and dangerous in the same moment. I’ve been trying to do it myself in the mirror but I just look goofy. JC: Keep practising. FTR: Great initials by the way. Reminds me of that anecdote when some wag handed David Lange a glass of water and challenged him to turn it into wine. He said he’d do one better and poured it onto the floor and walked on it. JC: No, I hadn’t heard that one but I will be saving it up for the right moment. FTR: Don’t worry about appropriating good jokes. One that is attributed to a past predecessor of yours is Muldoon’s line, “Every New Zealander who leaves this country to live in Australia raises the IQ of both countries”. We were all rather amused and impressed with Muldoon’s wit and it was years later that I discovered the joke was originally used by Will Rogers talking about the Okies moving to California. Muldoon might have pinched it but is still credited with it. You are National’s fifth leader in

four years. That’s a faster turnover than Aussie prime ministers. It does look like you have been elected leader by your caucus to save the furniture as Mike Moore put it when he got the job as PM when Labour was in similar disarray in 1990. You’d have to think that if you are defeated in September that number will be six. JC: I doubt that is a scenario that will play out. I plan on winning this election. That is why my colleagues have elected me their leader. FTR: I admire your positive attitude, which of course you must portray. Losing both Kaye and Adams last week after a couple the week before makes your job tougher. It’s a long time since our last single-term government. It was Labour’s 1972-75 which was deeply wounded by the death of Norman Kirk in 1974 at just 51 years of age. Rowling was no match for the ferocious Muldoon. In a way you remind me a little of Rob. JC: Well it’s time we had another single-term government then isn’t it? Arr, Arr, Arr.

FTR: You are channelling him. That’s just how he used to laugh. That brings us to talk about your style because that will be a big focus of the upcoming election. Like it or not, democratic elections have turned into a presidential type of contest. Muller started off saying he wasn’t going to oppose for opposition’s sake then immediately did just that. When in opposition it’s exceedingly difficult to do anything else if you want airtime. At your first press conference just after being elected leader you talked about crushing the Government and repeatedly talked about fighting. It doesn’t seem that your Crusher Collins image is going to be put to bed in favour of a more constructive and considered manner. JC: I’m not going to be something I’m not. People will decide if they want to have the nice but not fit for rebuilding this country person leading them or me, I suppose. FTR: Well, you won your own colleagues over on your third leadership attempt even though it’s well known many have never been fans. They’ve always claimed

you are not a team player but now it’s your team. Its amazing what people will do when their own head is on the block. Core National Party folk will be delighted with you as leader but it remains to be seen how the floating voters of middle New Zealand react. I think you have a long shot at being our next PM with ACT’s help but that would require both NZ First and the Greens not making it over the 5% threshold and that could mean the redistributed votes could nudge Labour near the unattainable 50%. What do you think? JC: I think you don’t know what you are talking about. FTR: That’s fair enough. Whatever happens, it will be a fascinating election with two women with completely different styles head-to-head as we saw 20 years ago with Shipley and Clark. Good luck. JC: Thank you.

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 – July 20, 2020

31

The future takes a step forward The Braided Trail

Keith Woodford

ON JULY 7 Prime Minister Jacinda Ardern released the Government’s document Fit for a Better World - Accelerating our Economic Potential. The press release from the Beehive says it provides a 10-year roadmap for the food and fibre industries. At the same function where this report was released Agriculture Minister Damien O’Connor released a companion document from his Primary Sector Council of chosen industry leaders. That document is also titled Fit for a Better World but lacks the title extension about accelerating our economic potential. That second document is indeed a different document, singing from the same song-sheet but with considerably different material. Very confusing indeed.

In terms of the overall theme of the song-sheet it was all good news.

My focus here is on the Government’s version of the report because that is the one signed off by Cabinet. Also there were Fisheries and Small Business Minister Stuart Nash and Forestry and Regional Economic Development Minister Shane Jones. I downloaded the document and worked my way through the first 24 pages but my computer refused to proceed any further. My initial thought and frustration, now that I had worked my way through all the introductory fluff together with six historical case studies, was that I was ready to get into the core of the supposed roadmap. Then it dawned on me that I had indeed read the full document. That was it. Before I take up some resultant criticisms I first need to state there is good news in the document for all of those who believe in the importance of the food and fibre industries. The Government is indeed acknowledging the food and fibre sector is vital to New Zealand’s economic recovery. Ardern also stated the primary sector is a huge part of our economy and our brand. O’Connor said he would also soon release another new report setting the path for future growth of the strong-wool sector and it will also be a key part of delivering the roadmap. Really? The wool report was indeed

released three days later and it was the same aspirational highlevel fluff. If strong wool does have a future it will be as building insulation but I saw no specific mention of that. Mainstream adoption requires technology yet to be developed. Getting back to the Fit for a Better World report, Nash said sustainable aquaculture presents massive growth potential and the sector will grow fivefold to $3 billion by 2035. Jones added forestry has opportunities to develop domestic and export markets for more sustainable products. In terms of the overall theme of the song-sheet it was all good news. There were lots of words about sustainability but there was no mention of any specific, new environmental regulations. The soundbites indicate the assembled industry leaders were supportive even if not necessarily enthused. The stated intent is that export earnings will increase by a cumulative $44 billion by 2030. What was less clear in media reports is that this is the aggregate extra income over the decade with the extra annual income having grown by $10 billion by 2030. That represents an annual growth rate of just over 2% though the communication spin doctors did not actually say that. I reckon growth of around 2% a year might well prove to be realistic. But if we want to grow at that rate in real terms after allowing for inflation then some hard work is going to be needed. On a per-capita basis that will still be close to a gain of zero if NZ goes back to pre-covid population growth rates. In another five years when we look back and can see the first two decades of this 21st century in better perspective we are likely to recognise the extent to which the food and fibre industries have underpinned the economy for the last 20 years. During this period there was a strong upward trend in global prices for most of the products NZ produces. Much of the urban community does not understand the reasons living standards increased, at least as experienced by middle and upper-income demographic groups. Rising export prices plus increasing volumes led to much stronger foreign exchange rates than in the prior two decades. All consumers benefitted from this one way or another. In 2015 I wrote a series of articles exploring where NZ’s future food and fibre income might come from. My thinking was that some of the big gains we had made in dairy, wine, kiwifruit and seafood, much of it stimulated by growing trade with China, would be challenging to replicate. I have been positive about kiwifruit for many years and I remain positive. Kiwifruit has to be one of the greatest NZ success

NO SUBSTANCE: The reports released by Agriculture Minister Damien O’Connor, Prime Minister Jacinda Ardern and Fisheries Minister Stuart Nash were full of fluff.

stories, built on breeding and consequent ownership of new varieties. There might well be bumps along the way but the future continues to look bright. I have also been intrigued for a long time by the prospects for mussels and other shellfish. It is clear further development depends on the success of offshore fisheries. The environmental limits have largely been reached in relation to enclosed waters. I also remain positive about the future for dairy but considerable transformation of that industry will be needed. I am sure the industry of the future is going to look very different to the current industry and I remain of the perspective that major parts of the industry are locked in the past. I will have more to say about that in future. I am cautious about forestry. The Government policy

allowing foreign investment for forestry is distortionary. It results in NZ earning up-front income from the sale of the land but the subsequent income flows from sale of carbon credits will flow straight back to the foreign owners. It really is a case of selling out the future. As for new uses of timber in building and consumer products, that could be exciting. However, NZ cost structures are such the value-adding will be done overseas except for any products used in NZ. Once China’s big infrastructure projects eventually slow down the need for NZ logs to be used in formwork over there will reduce. How will NZ’s timber be used? What I had hoped for in the documents proclaiming a roadmap towards industries fit for a better world was genuine, strategic leadership. Instead, the

documents are full of aspirational fluff. It’s largely spin-doctor stuff. The hard work of finding the new technologies and associated pathways is all for the future. However, it is always nice to leave with a positive message and so I will do that. The good news is that with tourism in big trouble and the aluminium smelter apparently heading for closure there does seem to be increasing recognition from the Government about the role the food and fibre industries must continue to play as the backbone of the NZ economy. That seems to be a step forward.

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


On Farm Story

32 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Honey business finds sweet spot When James Annabell’s budding rugby career wasn’t quite going the way he hoped the former Taranaki Bulls hooker put his drive into honey, which has led to the development of a multimillion dollar business, as Colin Williscroft reports.

J

AMES Annabell was back in Taranaki on a break from playing rugby in Hong Kong when the chance that changed his life came along. He’d already tried a law degree in Wellington and played rugby for Taranaki from 2006 to 2008. But there was no regional contract on offer the following year so he went to Hong Kong and Germany to continue with rugby. In a spell back in Taranaki, working for Taranaki Regional Council as a land management officer, he made a contact that further down the track helped create the business he runs today. As part of the job he met Waitotara Valley farmer and beekeeper Henry Matthews, who owns Settlers Honey. Matthews recommended Annabell to a honey company that was trying to establish itself in Asia. He was given a six-month sink-or-swim contract based in Hong Kong to get more of the company’s manuka honey into Asia. Knowing nothing about honey it was a steep learning curve but Annabell says he’s never been frightened of giving an idea a go. He’s the first to admit that initially he knocked on a lot of doors, just finding his way, in his

first week visiting supermarkets with a backpack full of honey samples before later frequenting New Zealand consulate events. It was hard work but before long the focus on honey took over from rugby. He continued to work in Hong Kong but one Christmas bought a beehive to give to his father Toby as a present. Toby, a former sheep and beef farmer, had spent his life living and working in the rural sector and was handy with anything associated with the land, at the time running an agricultural contracting business. He took to beekeeping so well that it wasn’t long before the father and son bought 100 hives between them. They soon built up their hive numbers from there and Toby eventually sold the contracting business to concentrate full-time on honey production. In the meantime James continued to work out of Hong Kong, further developing the Asian market for two of NZ’s largest honey companies, but he had always wanted to be his own boss. It was a step he had been thinking of taking but was aware he needed to know as much as possible about the honey industry

SWEET: The most recent honey season was a good one, with solid yields of quality product.

STATE-OF-THE-ART: Egmont Honey boss James Annabell in the company’s factory at Bell Block.

before taking the plunge. That came sooner rather than later after his boss at the time told him if he tried to go out on his own he would discover just how tough it was and would probably fail. That was all the motivation needed. Annabell resigned the next day and joined forces with his father. Egmont Honey was launched in 2015 and its growth has been rapid with turnover last year about $32 million. Its first shipment overseas was 500kg to Hong Kong but by the end of 2016 it was exporting to 10 countries and today exports are to double that number of nations including China, Singapore, Australia and Britain. The biggest market is Australia, where its honey is sold in about 800 Woolworths supermarkets.

The company trades 1000 tonnes of honey a year from its 4000 beehives and external suppliers all over NZ. The focus is purely on honey production rather than pollination. Some of the land the hives are on is so remote about 90% are flown in by helicopter, either very early in the morning or late in the evening, when the bees have returned to the hive. Using helicopters makes sense not only for health and safety, reducing the need to transport them by ute over some rough and ready tracks in the back blocks, but also makes environmental sense to not disturb the ecosystem around the location. Though Egmont’s beekeepers have a pretty good idea regionby-region when the necessary plants should be flowering they

constantly keep an eye on the weather to make sure hives are in the right place at the right time. The company produces a variety of honeys but the manuka variety, particularly that sold under the Unique Manuka Factor quality mark, commands the best price. To receive that grading the honey has to contain certain naturally occurring chemical markers. All Egmont’s UMF honey is tested by an independent, Government-approved laboratory.

AT WORK: Egmont Honey’s beekeepers keep an eye on the weather over summer to make sure hives are in the right place at the right time.


On Farm Story

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

33

LOCATION: Most of Egmont Honey’s hives are not far from Mount Taranaki.

QUALITY: The company produces a range of different honeys but its monofloral manuka range commands the best price.

Manuaka flowers for only about six weeks a year over summer and given the company’s focus on producing for the top end of the market it’s important to ensure other bush plants where hives are located are not flowering at the same time, reducing the risk of contamination. Timing is critical. It’s vital the team knows the land well and that plants are monitored when bud is forming before flowering. It’s then the hives are flown in to make the most of the short flowering period. Go too soon and the bees will go for other flowers, too late and it’s wait until next season. A few years ago there was uncertainty around what constitutes manuka honey, with blending of honey from other plants with pure manuka muddying the waters, so the Ministry for Primary Industries

stepped in, introducing a standard that provides some control over quality. Annabell supports the approach MPI took to bring in a scientific definition backed by product testing so consumers can be confident in what they are buying, whether it’s monofloral or multifloral. He says the latter has many good qualities but is not the same as monofloral and it is important to be able to make the distinction. “Before, you could call just about anything manuka honey.” Like wine, manuka honey takes time to mature and realise its potential in six to 18 months. After the manuka flow Egmont’s hives are taken back to the home block of about 800ha to winter on. That allows time for hive maintenance and ensuring the bees are well cared for during the colder months.

SUPPLY: Egmont Honey has 4000 hives, mainly in southeren Taranaki.

The most recent season was a good one, with solid yields of quality honey. However, like other primary industry sectors honey making is weather-dependent and the previous three seasons were average at best. Though the company is proudly family-founded Annabell recognised how private equity could take the business to the next level. He had already built a relationship with premium NZ supplements manufacturer Go Healthy so when it approached him about buying a significant share of Egmont Honey he could see the proposal made sense, with the extra capital able to fund a significant growth spurt. It’s been full-steam ahead since then. Continued growth has seen it go from three staff at the beginning – Annabell, his dad and an office worker – to about 40 full-time equivalents today. The company’s structure is purposely flat, with ideas and contributions welcome from all staff.

A key philosophy is not to lose sight of the customer focus that enabled it to grow, with the personal touch essential to company’s future. “We’re a very customer-led business,” Annabell says. “Our focus is on ensuring we understand our customers, whether that’s at distributor or consumer level.”

Our focus is on ensuring we understand our customers, whether that’s at distributor or consumer level. James Annabell Egmont Honey Sales are handled by a team of six working out of the company’s Bell Block base just out of New Plymouth, with another member on the ground in Britain. Annabell works closely with the sales team but is conscious of the need for him, as chief executive, to work on the company and not in it. He loves the customer side of the business and pre-covid did a lot of travel. That’s not an option right now but he says his sales team has found Zoom invaluable as a way of keeping in touch with customers. It has allowed them to talk to buyers in their own environments at home, giving them further insight into the people they deal with. Opportunities come from a variety of places and while the global covid-19 pandemic has had its challenges it’s also provided new opportunities, with an increased focus on health and wellbeing, which Egmont Honey is well-placed to tap into. Demand for its manuka honey has taken off as people look for products that can help boost immunity but Annabell is conscious that on the flipside some people’s discretionary income is also taking a hit, which could reduce consumer demand.

In the last six months Egmont Honey products began to be sold through leading British health supplement retailer Holland and Barrett, with sales so far exceeding expectations. As well as the products it sells through Go Healthy the company has about 30 other product lines available with supplements sold in about 700 Coles supermarkets in Australia. Annabell’s also not averse to collaborating with other companies on limited release products, including a manukaflavoured ale it made with New Plymouth craft brewer Shining Peak Brewery and a manuka gin with Taranaki label Juno. He says there’s little to lose and plenty to gain by keeping the company’s brand in a growing number of spaces. For the first few years of its operation Egmont’s packaging was done under contract because Annabell likes to run a lean overheads structure, making sure the business is profitable from day one and not investing ahead of the earnings curve. However, eventually the company grew to a size where it was justified in building its own state-of-the-art processing facility. The factory opened in 2018 houses the processing, packaging and dispatching departments. Built to its own specifications, it has a dedicated quality assurance department, a double-pass filtration system with multiple creaming tanks and a highly automated packing room, capable of handling a variety of packaging and labelling specifications. Other features include a range of different certifications, including MPI, halal and kosher, also with 24-hour production facilities. Annabell says the company is constantly on the lookout for new markets with the focus for the next six to 12 months on the United States. It’s in a pretty sweet position to build on what it’s already achieved. >> Video link: bit.ly/OFSannabell


34

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

AESTHETICALLY PLEASING - IN 3 TITLES

FARMERS WEEKLY – July 20, 2020

84 hectares Video on website

1347 State Highway 1, Marton

nzr.nz/RX2382803

One of the best presented farms we have been associated with. Productive cropping and finishing soils, with tile drainage completed by the current and previous owners.

Tender Closes 11am, Tue 28 Jul 2020, NZR, 20 Kimbolton Road, Feilding. Quality fencing and water from a deep bore. An architecturally Peter Barnett AREINZ designed ’94 home, is set privately on an elevated site. 027 482 6835 | peter@nzr.nz The property is offered in its entirely, or with options around NZR Limited | Licensed REAA 2008 any combination of titles; 23ha (with home, sheds and yards), 25ha bareland and 35ha (with woolshed, shed and yards).

Your destination For Rural real Estate Get in touch with your agent today

farmersweekly.co.nz/realestate

Waerenga 487 Stannard Road Grazing in Waerenga Situated in the heart of the Hauraki lies this 216.7725 hectare (more or less) large-scale dry stock property with the ability for cropping lands is both functional, and in the ideal location being minutes from the State Highway surrounded with a country outlook. Outstanding facilities on the property include calf shedding, haybarn and set of yards surrounded by predominantly seven wire post and batten fencing. Currently running over 700 cattle, 50 yearling bulls and 150 ewes this property is the ultimate dry stock block and 20 hectares (more or less) already in kale as supplement. Accommodation on the property is provided by a recently renovated and freshly painted 1960’s three bedroom home.

bayleys.co.nz/2311418

3

2

Tender (unless sold prior) Closing 4pm, Thu 13 Aug 2020 96 Ulster Street, Hamilton View 11am-12.30pm Wed 22 Jul Karl Davis 027 496 4633 karl.davis@bayleys.co.nz Lee Carter 027 696 5781 lee.carter@bayleys.co.nz SUCCESS REALTY LIMITED, BAYLEYS, LICENSED UNDER THE REA ACT 2008


FARMERS WEEKLY – July 20, 2020

TENDER

Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

35

RURAL | LIFESTYLE | RESIDENTIAL

RURAL

TENDER

FIRST TIME EVER THIS PROPERTY HAS BEEN AVAILBLE FOR PURCHASE By TENDER Closes 4pm Friday 7 August 2020 View Open Day 113 Thomson Road, Waiuku • • • • • • • • •

LOCATION HANDY TO WAIUKU TOWNSHIP DAIRY FARM 94 HA (approx.) 3 TITLES SUPPLIES: OPEN COUNTRY DAIRY 24 ASIDE PLUS INSHED FEEDING 111,500 M/S 6 YEAR AVERAGE STUNNING COASTAL VEIWS FROM MODERN RENOVATED MAIN HOME 2ND HOME COSY COTTAGE CLOSE TO SHED A GOLDEN OPPORTUNITY TO VEIW AN OUTSTANDING DAIRY UNIT

Daryl Dodunski P: 027 693 2767 E: daryl@cameronrealty.co.nz Licensed Real Estate Agent REAA 2008

Welcome to GlobalHQ’s new Real Estate Partnership Manager Clint Dunstan I come from a diverse professional background that has seen me work in everything from professional rugby to fundraising. This varied background has given me a wealth of experience in building effective, long-term commercial relationships. Some of my achievements include working as a contract Performance Analyst for the New Zealand rugby sevens teams and leading a $5.5 million fundraising campaign for Wildbase Recovery. I have a passion for the Real Estate sector, most recently working with one of New Zealand’s marquee commercial property developers. Born and bred in Manawatu, I am also passionate about rural and regional New Zealand.

Contact Clint today on 06 323 0760, 027 474 6004 or email clint.dunstan@globalhq.co.nz

farmersweekly.co.nz/advertising

TE ARAI, NORTHLAND 159 School Road Finishing in Tomarata/Te Arai Here is one of those rare opportunities to own the ideal size block in a highly sort after location. This gentle rolling approx 139ha property has impressive fencing throughout with internal subdivision creating 50 paddocks. Very good access leading to a well maintained set of cattle yards with new cattle crush and scales. A reliable deep water bore with very good water quality reticulated to all troughs. Excellent pastures throughout with regular organic fertiliser regime, all waterways have been fenced and planted, including a large wildlife/back up water supply dam.

TENDER Plus GST (if any) (Unless Sold By Private Treaty) Closes 4.00pm, Thursday 6 August VIEW By Appointment Only

Scott Tapp M 021 418 161 E teamscott.tapp@pggwrightson.co.nz

pggwre.co.nz/WEL32419 PGG Wrightson Real Estate Limited, licensed under REAA 2008

Helping grow the country


farmersweekly.co.nz/realestate 0800 85 25 80

Farm Trader

FARMERS WEEKLY – July 20, 2020

Farmhand 10Not Head Yardyards are the same. Stockman cattle yards all cattle are designed to give the farmer the best quality product, combined with the best working design.

N.T.S.

M. Z

31-05-16 DATE

SCALE

SHEET NO.

THE INFORMATION CONTAINED IN THIS DRAWING IS PROPRIETARY TO FARMQUIP AND SHALL NOT BE REPRODUCED OR DISCLOSED IN WHOLE OR IN PART OR USED FOR ANY DESIGN OR MANUFACTURE EXCEPT WHEN SUCH USER POSSESSES DIRECT WRITTEN AUTHORISATION FROM FARMQUIP.

Farmhand 49 Head Cattle Yard

Farmhand 80 Head Cattle Yard

40

S/G

Farmhand 20 Head Cattle Yard

H/B

Farmhand 20 Head Yard

FH 80 - R

Farmhand 25 Head Yard

DRAWN

A3

SHEET SIZE

& *TERMS NS APPLY CONDITIO

1 OF 1

36

S/G

9

15

+GST

13,995

.00

$

BLUE ---------- 1800 GREEN -------- 2100

(FH20)

+GST

H/B THE INFORMATION CONTAINED IN THIS DRAWING IS PROPRIETARY TO FARMQUIP AND SHALL NOT BE REPRODUCED OR DISCLOSED IN WHOLE OR IN PART OR USED FOR ANY DESIGN OR MANUFACTURE EXCEPT WHEN SUCH USER POSSESSES DIRECT WRITTEN AUTHORISATION FROM FARMQUIP.

(FH49) FH 49 - L

Add ramp for $3,195.00+ GST

Farmhand 32 Head Yard

THE INFORMATION CONTAINED IN THIS DRAWING IS PROPRIETARY TO FARMQUIP AND SHALL NOT BE REPRODUCED OR DISCLOSED IN WHOLE OR IN PART OR USED FOR ANY DESIGN OR MANUFACTURE EXCEPT WHEN SUCH USER POSSESSES DIRECT WRITTEN AUTHORISATION FROM FARMQUIP.

Large Lockbox DRAWN

M. Z

DATE

31-05-16

31-05-16

SHEET SIZE

N.T.S.

A3

1 OF 1

18,995.00 (FH80)

$

+GST

Add ramp for $3,195.00+ GST

SCALE

FH - 32 R

SHEET NO.

Rechargeable Sheep shearing kit

SHEET SIZE

A3

RRP RRP Farmhand Curved Loading $ .00Farmhand Yard Panels $ Farmhand .00 +GST +GST Bundle of 10 Force Tub Ramp

449

M. Z

DATE SCALE

Farmhand 12mtr Horse Pen

Cordless Grease Gun BLUE ---------- 1800 GREEN -------- 2100

DRAWN

SHEET NO.

BLUE ---------- 1800 GREEN -------- 2100

6,495

.00

$

S/G

S/G

10

25

5

25

N.T.S.

1 OF 1

499

RRP $

479.00

+GST

Promotional offers valid until 31st July 2020. Not to be used in conjunction with any other finance offers. See finance T&C’s for details. Many products shown are manufactured to order so standard Farmquip leadtimes and freight apply. Freight charged on all orders unless otherwise stipulated. Cattle yards pricing excludes concrete and site works. Stockman Yards must be ordered and deposit received before 31st July 2020 to qualify for free catwalk upgrade. Stockman Yards order must be over $20,000+gst to qualify for free catwalk upgrade. The value add gifts with Farmhand Yards purchase available for all orders over the value of $6,000.00. Expires 31st July 2020. Value add offers not available with any other promotional offer or financed terms.


Farm Trader

FARMERS WEEKLY – July 20, 2020

farmersweekly.co.nz/realestate 0800 85 25 80

37

R Rech

Daggers Mate Sheep Handler Daggers Mate Sheep Handler Daggers Mate

Crutch and Weigh Combo Sheep Handler

Sheep Handler

• The ultimate machine for fast and efficient dagging and crutching • Air controlled on skids • Tips sheep on their sides for dagging and crutching • Adjustable overhead clamp • Made in New Zealand

• The best all round sheep handler in the market

PRICED FROM

$

10,995.00

+GST Optional extras: Belly flap, Transport kit.

Auto Weigh Sheep Handler Auto Weigh Sheep Handler Auto Weigh Sheep Handler

INCLUDES

FREE HER

• Fast and efficient weighing, drafting and dagging. • 3-way and 5-way drafting options • Made in New Zealand

600mm GALLAG LOADBARS VALUED AT .00 $

119ST5 +G

PRICED FROM

PRICED FROM

$

$

+GST

19,995.00

• Manual weighing and-Sheeted 3 way drafting Sheep Yard • Alloy, lightweight, transportable • Mounts on to any existing loadbars -Sheeted

*Scales sold separately. Optional extras: Ramp clamp, Transport kit.

Sheep Weigh Crate/ Portable Sheep Ramp Shee Portable Sheep Ramp Sheep / Ca Sheep Weigh WeighScale Crate/Combo Rechargeable Railed Sheep Weigh Scale Combo

Sheep Shears

(Railed and Sheeted) Sheep Yard Panel

• Panel • •

FROM

$

Sheep Yard Panel

1,995

Portable Sheep +GST Loading Ramp

Panels

Farmhand Sheep Panel Sheep Race Gate Available 1.5m, 2m, 2.5m, 3m • Comes with 2 x 12V • 3m W x 1m H -Railedinand Sheeted Sheep YardRHS Panel Farmhand Sheep Panel Heavy Duty 40x40mm frame battery &Race 1 hour charger Sheep Gate • Quick, easy pin together yard Kitset easy pin together panel for a variety of uses -Railed andsystem Sheeted • Use for sheep/calves/goats AVAILABLE AT FARMLANDS NATIONWIDE

FROM

.00

18,495.00

+GST

*Scales sold separately. Optional extras: Ramp clamp, Belly flap, Transport kit.

Sheep Yard Weigh CrateSheep Yard Panel

209

$Woolshed Lift.00 and Swing Gates+GST

$

479

Sheep Draft Module V-Sides

Woolshed Lift and 3 – way sheep Portable Sheep Farmhand Sheep/ Swing Gates draft module Loading Ramp Calf Ramp

179

.00Woolshed $ Lift and Sheep +GST Draft Module

.00 PANEL Wool Fadge Holder +GST EACH

*4 panels for $699.00+gst Swing Woolshed LiftGates and Wool Fadge Holder Swing Gates Sheep Draft Fadge Draft Module Sheep Draft Module SheepWool

Adjustable Sides

Holder

V-Sides V-Sides Module

Adjustable Sides

• 3-way draft • 3110mm L x 600mm W

$

1,795.00

+GST

Shee Sheep Ex

$

695.00

+GST

$

2,695.00

+GST

$

195.00

+GST

Shee SheepV-Sid Dra

V-Sides


NZ’s #1 Agri Job Board

FARMERS WEEKLY – July 20, 2020

0101788

Director Vacancy

LIVESTOCK MANAGER

farmersweeklyjobs.co.nz

63.57x120

JOBS BOARD FW Jobs Board

Do you want farms to be safer places for everyone?

2021 Scholarships

Do you want to help create a platform that supports farm businesses being great workplaces that really value people?

Agricultural Market Report Editor

Take the next step in your farming career – join industry-leading Brownrigg Agriculture as a Livestock Manager to learn the art and the science of effective finishing systems.

Ag Machinery Operators

We are a progressive farming business based 20 minutes south of Hastings, Hawke’s Bay. Our livestock business is centered around winter lamb finishing and Wagyu cattle breeding and finishing, complemented by a flexible bull beef policy.

Artificial Breeding Supervisor Business Manager

Are you passionate about connecting people, sharing ideas and learning from others?

2021

Director

Scholarships

Farm Manager

We have vacancies for new directors (2) as we implement our director rotation policy and we’re looking for people who want to make a real difference on farm and at a sector level.

Live-in Housekeeper

We’re looking for someone with real energy and commitment to improving the health, safety and wellbeing of people throughout the agricultural sector.

Shepherd General

Do you have: • At least four years sheep and beef farming experience • A passion for finishing systems • A good team of working dogs • A keen interest in managing pasture • Strong stockmanship skills • A willingness to embrace technology.

for farmers, growers & agriprofessionals

Livestock Manager Piggery Farm Manager Shepherd Stock Manager

Expand your horizons. Grow your networks. Gain global experience.

Tractor/Truck/Machinery

For more information go to www.alhsag.com

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

Please send expressions of interest to: ALHSAG Chair: Justine@kitahi.com by Monday 3rd August 2020

*conditions apply

Five $40,000 scholarships available

WE’RE HIRING

LK0102968©

LK0103183©

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

NEED

STAFF? PH DEBBIE 0800 85 25 80

APPLY with CV and cover letter to:

www.ruralleaders.co.nz/nuffield

Noticeboard

GlobalHQ Limited We have a vacancy in our AgriHQ team for a smartthinking candidate with a genuine interest and knowledge of the business of farming. You will be working alongside our team of six analysts to produce in-demand red meat, livestock and forestry sector reports and analysis. Your week will be spent creating quality analysis and commentary relied on by primary sector business at all levels of the value chain. You will build professional relationships from a wide range of industry sources. GlobalHQ is an agile multi-media enterprise with plenty of scope to grow, delivering exciting opportunities for the right candidate. This position would ideally be based in our Feilding office. To request a job description and application form,

Applications close Friday 24 July, 2020.

jobs@brownrigg.co.nz or for more details: www.brownrigg.co.nz Phone in confidence: Erin Hutchinson 0800 276 967

Apply now!

Agricultural Market Report Editor

please email: hr@globalhq.co.nz.

We can offer: • Competitive remuneration (including accommodation – dependent on situation) • Exposure to innovative farming practices • Opportunities for further training • The chance to join a progressive business full off passionate and knowledgeable people.

LK0103188©

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

ANIMAL HANDLING FLY OR LICE problem? Electrodip – the magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com

ATTENTION FARMERS 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 MANUKA SITES REQUIRED. Seeking sites for beehives near Manuka. Fair and competitive payment options. Contact 021 560 665 or email: hardyhivezzz@gmail.com FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds. Phone Debbie on 0800 85 25 80.

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

CALF TRAILER MATS SUREFOOT MAT 1.5m x 1m x 24mm $98ea + Frt & GST (6 or more freight free). Phone 0800 686 119.

CONTRACTORS GORSE AND THISTLE SPRAY. We also scrub cut. Four men with all gear in your area. Phone Dave 06 375 8032.

DOGS FOR SALE BREEDING. TRAINING. Buying, Selling, Delivering. www.youtube.com/user/ mikehughesworkingdog/ videos email: mikehughesworkingdogs@ farmside.co.nz WHATATUTU DOG SALE. Saturday 5th September at Otara Station, 319 Whatatutu Road. Te Karaka, Gisborne. Sale starts 12 noon. Dosing clearance required. Enquiries to Allen Irwin. Phone 06 862 3618. Email: toromirostation@gmail. com

DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.

EXPRESSIONS OF INTEREST ARE YOU A REGIONAL farm or smallholder? Are you more than 100 km from a major city or town? Are you interested in dairy processing (cow, goat or sheep) but don’t know where to start? If you are serious, email kyolaprojects@gmail.com with your details. Strict confidentiality is assured.

FARM MAPPING SIMPLE AND CLEAR farm maps with paddock sizes will help you achieve your daily goals. Get a free quote from farmmapping. co.nz

GOATS WANTED NAKI GOATS. Trucking goats to the works every week throughout the NI. Phone Michael and Clarice. 027 643 0403. GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

GRAZING WANTED FOR R3 STEERS, R2 Steers. Any number / location NI wide considered. 027 480 8897. BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@globalhq.co.nz

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

LIVESTOCK FOR SALE WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. WILTSHIRE EWES, mixed aged. 15 years of breeding. Lambing date 5th September 2020. Due to lease expiring. Phone Colin 027 201 0484 or 03 417 8586.

PERSONAL

STOCK FEED

Rural Lady Looking For Companionship

BALEAGE $110+gst. HAY 15 equivalent rounds $115+gst. HAY 12 equivalent squares $100+gst. Phone 021 455 787.

Rural lady who is looking for a likeminded country gentleman to share her life with.

BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@globalhq.co.nz

With brown hair, green eyes, fit and active with a slim build. She loves the country life and the challenge it throws at her. Enjoys horse riding, camping, fishing, country music and cooking. To meet please call

0800 446 332 quote code 57

WANTED TO BUY LK0103143©

38

www.countrycompanionship.co.nz

SAWN SHED TIMBER including Black Maire. Matai, Totara and Rimu etc. Also buying salvaged native logs. Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954.

FOR SALE

SELLING

SOMETHING? Have something to sell? Advertise in Farmers Weekly Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz


TOWABLE TOPPING MOWER

TOWABLE FLAIL MOWER

$4400

11.5HP Briggs & Stratton Motor. Industrial. Electric start.

$4200

GST INCLUSIVE

• Tree limbing with blade saw • Hedge trimming with finger bar • Mulcher available

12Hp Diesel. Electric Start

GST INCLUSIVE

GST $4200 INCLUSIVE

To find out more visit www.moamaster.co.nz

Information packs now available for 2020/21 season

Prices include delivery to your door!

Contact – North Island Marlene 027 251 6964 Allan 027 443 7327 Email: blacksabbath64@gmail.com

Free range & barn eggs

12HP, Diesel, Electric Start

SUPPLIERS OF: • Nest boxes – manual or automated • Feed and drinking trays • Plastic egg trays Quality products made in Europe or by PPP

For more information please visit our website or contact us

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

50 TON WOOD SPLITTER

Poultry Equipment

LK0102834©

Heavy duty long lasting

HOMES FARM SHEDS SUBDIVISIONS PUMPS

Attachments mounted on a 5.5 ton excavator with a working height to 6m

50 TON WOOD SPLITTER

Phone 027 367 6247 • Email: info@moamaster.co.nz

POWER CABLE

We could save you hundreds of $$

LK0103145©

0800 436 566

13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut

TREE LIMBING SERVICE

LK0103187©

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

2 YEAR WARRANTY. NZ ASSEMBLED. ELECTRIC START & QUALITY YOU CAN RELY ON

39

Heavy duty construction for serious wood splitting. Towable.

LK0103169©

DOLOMITE

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

LK0103000©

Noticeboard

FARMERS WEEKLY – July 20, 2020

A trusted name in the poultry industry for over 50 years

Ph 021 047 9299

0800 901 902 sales@pppindustries.co.nz

FO SALR E

0800 85 25 80

www.nzadventures.co.nz

SELLING SOMETHING? LK0102791©

SELLING

SOMETHING?

info@nzadventures.co.nz Ph: 03 218 8569, 027 550 6727 or 027 435 4267

GST Special Price $4200 INCLUSIVE Very limited stock

Advertise in Farmers Weekly Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

FO SALR E

LK0102987©

Industries Ltd www.pppindustries.co.nz

To find out more visit

www.moamaster.co.nz Phone 027 367 6247 Email: info@moamaster.co.nz

ANDWEEDER C50 (Developed by Andy Lysaght)

The Andweeder® C50 is redefining large-scale weeding in a way that benefit sectors of the agricultural industry, a mechanical non-chemical inter-plant weeder.

• • • •

1 x 6 foot bale 2m diameter 15 feed positions 15 - 30 animals

100% New Zealand Made Quality Stockfeeders

0 $ 85 +GST

• • • • •

3 x 4 foot bales 2 x 6 foot bales 24 feed positions 24 - 48 animals 4m long

$ 120+G0 ST

0800 104 404 | www.stockfeeders.co.nz

New Zealand’s proven stock feeder for 24 years | 100% New Zealand Tensile Steel

You know your farm better than anyone

LK0101513©

STANDARD FEEDER (C6 Pinned)

Read our reviews below to show how two successful NZ companies are finding the Andweeder® C50:

OVAL FEEDER (S2 Pinned)

Tom Welch — Cannock Harvest Pumpkin Seeds The Andweeder C50 has been a breakthrough for us in our pumpkins, saving us about $300/ha inweeding costs per year. Easy to use with some initial instruction and help setting up. Well designed and engineered. We opted for a 3 row steerage hoe setup whereby one man drives the tractor and the other sits on the hoe to steer On the way to the job. it. We could easily cover over 1 ha per hour. The drawback to this system, is the dust to the man on the back! A very dusty job. If possible, I would recommend a fixed mid mounted system on a tractor to cut out the need for the second person being covered in dust. Andy’s service is great, and he will be there to help whenever needed. Very satisfied. Hamish Thomas — Cropping Manager, NH Packing and Farming Co Ltd We have been running the C50 in our Squash crops. The C50 has given us the ability to weed our crops at a critical stage which then in turn has limited the amount of manual hand weeding we have had to do. The support and knowledge Andy continues to provide has been much appreciated. NH produce running a 3 row Andweeder C50 on side shift tool bar with vision technology guidance & the tractor running on GPS LK0103189©

But do you know what to do about GHG emissions? Agmatters.nz explains what you need to know about climate change and farming. It’s all in plain English, with science-based articles and videos of experts telling it straight. Find out why methane matters, how soil carbon works, and how Kiwi farmers are taking steps to reduce their emissions. The Agmatters.nz website is produced by the New Zealand Agricultural Greenhouse Gas Research Centre, with funding from the Ministry for Primary Industries.

3 row Andweeder C50 with manual side shift

For more information see our video on YouTube – Andweeder® C50 Call Andy on 021 672 241 or email: andylysaght@xtra.co.nz


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

Livestock Noticeboard

FARMERS WEEKLY – July 20, 2020

SALE TALK

Heifer Calves Wanted

A bar owner in the Old West has just hired a timid new bartender. The owner of the establishment is giving his new hire some instructions on running the place.

EXPORT WANTED

Recorded Heifer calves North Island – Auckland South 7-10 day old Friesian calves F12+ with recorded Friesian sire.

He tells the timid man, “If you ever hear that Big John is coming to town, drop everything and run for the hills!! He’s the meanest, biggest, nastiest outlaw who ever lived!!”

September Delivery Friesian Heifers

A few weeks pass uneventfully. But one afternoon, a local cowhand comes running through town yelling, “Big John is coming to town!! Run for your lives!!!”

Spring 19 Born - $1600.00 Autumn 19 Born PTIC - $1750.00

Nationwide F12 + with Friesian sire 100kg plus J12 + with Jersey sire 80kg plus Deposit paid on commitment. Contact Nick Dromgool 027 857 7305

LK0103133©

nick.dromgool@geneticdevelopment.co.nz

When the bartender exits the saloon to start running, he’s knocked to the ground by several townspeople scurrying out of town.

Please Contact

As he’s picking himself up, he sees a large man approaching the saloon, probably about 7 feet tall, muscular, grunting and growling as he walks.

North Island Luke McBride 027 304 0533 Harry Van De Ven 027 486 9866 Wayne Doran 027 493 8957

He stomps up to the door, orders the poor barkeep inside, and demands, “I want a beer NOW!!” He pounds his heavy fist on the bar, splitting it in half. The bartender nervously hands the big man a beer, hands shaking. He takes the beer, rips the top of the bottle off with his teeth, and downs the beer in one gulp.

South Island Richard Harley 021 765 430 Greg Collins 027 481 9772

LK0103010©

Weaner Heifer calves

As the poor timid bartender cowers behind the bar, the big man gets up to leave. “Do you want another beer?” the bartender calls out. “Dang it, I don’t have time!!” the big man yells. “I gotta get out of town!!! Didn’t ya hear Big John is a-comin??”

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

Promote your 2020 yearling bull sales Start your spring planning now! Contact Hannah to talk over your options for the 2020 selling season to make sure your message reaches the right audience. Hannah Gudsell: 06 323 0761, 027 602 4925 or livestock@globalhq.co.nz

farmersweekly.co.nz

2348FW

40


Livestock Noticeboard

FARMERS WEEKLY – July 20, 2020

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

Check out Poll Dorset NZ on Facebook

LIVESTOCK ADVERTISING

41

STOCK REQUIRED

STORE LAMBS – Males & Ewes 35-40kg R2YR ANG &ANGX HEIFERS 350-420kg

1YR BULLS BEEF or FRSN -250kg Due Aug/Sept MA SIC COWS R3YR ANGUS STEERS 500kg+

STOCK FOR SALE SIL EWES Due Aug

See our Website for my Livestock

www.dyerlivestock.co.nz

Ross Dyer 0274 333 381

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

A Financing Solution For Your Farm E info@rdlfinance.co.nz Hewitt_BB_2300x750@20%.indd 1

1/11/19 11:44 AM

NZ’s Virtual Saleyard

MORRINSVILLE DAIRY SALE THURSDAY 23RD JULY 2020 12 NOON START On A/c: MAYFLOWER FARMS

UPCOMING AUCTIONS

67 In Calf Cows – mostly strong blacks. Spring calving XB Cows DTC late July. BW 93 PW 164 RA 84% 2 weeks AB Frsn. tailed with PB Hfd Bulls. 9 weeks total mating. Cows will be presented in top condition, primed for big production this coming season.

or email livestock@globalhq.co.nz

Blanket dry cowed. Milked on rolling wet Northland limestone country, hard working and will shift well.

Tuesday, 28 July 2020 7.00 pm – Altrive Red Deer Hinds Sale

Plus 10 Budget Cows View listing on: mylivestock.co.nz NOR90374 Contact: Blair Sidwell 021 325 325

LK0103168©

To advertise Phone HANNAH GUDSELL 0800 85 25 80

Thursday, 23 July 2020 7.00 pm – National Livestock – per kg 7.30 pm – National Livestock – per head

Your source for PGG Wrightson livestock and farming listings For more information go to bidr.co.nz or contact the team on 0800 TO BIDR

Key: Dairy

BEEFGEN is currently purchasing animals for live export: Hereford / Simmental Heifers (Born 2019) Holstein Friesian Heifers (Born 2019)

Please contact your local agent for more information.

LK0102959©

BEEFGEN Office: Teeshay Harrison Phone: 06 927 7154 Email: export@beefgen.com

WAIKATO FEEDER CALF SALES 2020

Thursday 6th August, 2020

Start Time - 12.00pm

Breeding Better Business

BEEFGEN Livestock Manager: Brian Pearson Mobile: 0210 907 1688 Email: brian@beefgen.com

Sheep

KAUROA (RAGLAN) SPRING CATTLE FAIR Kauroa Saleyards, TeMata Rd, Raglan Comprising 850 cattle: • 50 2yr Charolais-Here/Frsn X Steers • 10 2yr Angus-Here/Frsn X Steers • 400 1yr Angus Pure Steers • 120 1yr Angus Pure Heifers • 150 1yr Angus X & Exotic X Steers • 100 1yr Angus X & Exotic X Heifers The Angus pure entries are sired by top Angus bulls from Twin Oaks, Kaharau, Rangitira, Waitangi, Ratanui & Matatauri Angus studs. Chris Leuthart 027 493 6594 Vaughn Larsen 027 801 4599

Proudly New Zealand Owned

Cattle

Other

Monday - Paeroa Tuesday - Frankton Tuesday - Tirau (Starts 21st July) Thursday - Te Awamutu NOTE: Frankton Calf Sale has moved from Wednesday to Tuesday Contact Neil Lyons 0272 235 784

FRANKTON COMBINED SALE Tuesday 21st July 10.30am Pigs 11.30am Sheep 200 Prime Lambs 500 Store Lambs 150 Cull Ewes Armyn Sanders 0274 430 905 11.45am Boners/Bulls 50 Boners 12.00pm Feeder Calves 500 Calves Neil Lyons 0272 235 784 12.15pm Store Cattle 500 1yr & 2yr Steers, Heifers, Bulls Visit agonline.co.nz for more details. Vaughn Larsen 027 801 4599 or Tony Blackwood 027 243 1858

Freephone 0800 10 22 76 | www.pggwrightson.co.nz

Helping grow the country


Bulls were presented in good order with the right balance between figures and phenotype. Clark said the beef industry was lucky pandemic restrictions didn’t factor heavily into the sale season and he was pleased to see the usual social interaction wasn’t hampered. Rural Livestock agent Anthony Cox said sale clearances were comparable to last year and the

Neville Clark Carrfields

Commercial buyers probably found what they wanted and could afford away from the highlights.

priced purchases by studs, which grabbed the headlines. “Commercial buyers probably found what they wanted and could afford away from the highlights,” he said.

Alexandra

Elsthorpe

Ngapara

Pahiatua

Earnscleugh

Elgin

Fossil Creek

Glanworth

Takapau

Brookwood

Clinton

Blenheim

Blacknight

Delmont

Taumarunui

BlackRidge

Masterton

South Westland

Bannockburn

Dandaloo

Stratford

Aywon

Gisborne

Kiwitea

Atahua

Dannevirke

Gisborne

Alpine

Cricklewood

Bidr

Angus Bidr Sale

Dandaleith

LOCATION

STUD

33

No.

No.

59

23

35

27

33

23

4

24

10

23

10

18

37

7

13

36

63

23

40

27

34

29

4

32

10

32

10

18

39

7

15

No. No. BULLS SOLD

9758

6720

7369

6570

6277

8743

7900

9807

AVE.

8046

8394

8412

7342

8074

8075

7027

37,750

ANGUS

AVE. PRICE ($)

TOP

26,000

15,000

14,500

15,000

13,600

14,500

13,500

92,000

68,000

16,000

9250

18,000

14,500

25,000

TOP PRICE ($)

Mt Mable & Kenhardt

Glenwood Angus

Rockley Angus

Commercial

Commercial

Commercial

Commercial

x2

Waipukurau Christchurch Ranfurly

Rauriki Silverstream Taiaroa

Mimihau Alexandra South Westland Middlemarch South Westland

Duncraigen Earnscleugh Flagstaff Foulden Hills Glacier

Irwell

Te Kuiti

Kia Toa

Kaikohe

Otorohanga

LOCATION

Culverden

Beechwood

made by Matariki, Kaikoura, closely followed by $40,000 for a Maungahina, Masterton, bull. Maungahina also sold a Speckle Park bull for $35,000. Top price for Simmental bulls this season was $18,000 paid by

No.

10

13

17

29

4

18

19

57

21

30

42

21

26

No.

10

5

7

19

4

15

15

52

17

27

41

16

25

No. No. BULLS SOLD

AVE.

8020

4950

5485

5315

7275

8400

HEREFORD

5678

9519

6305

4815

8394

3850

3172

CHAROLAIS

AVE. PRICE ($)

TOP

12,000

6000

8000

11,700

20,000

8500

35,000

12,000

11,000

16,000

5200

4400

TOP PRICE ($)

GOLD: Silverstream Osmar 41 sold for $35,000 at the Silverstream Charolais and Hereford bull sales near Christchurch.

Lowridge Simmentals for a private purchase from Kerrah Simmentals, Tangiwai Station, Wairoa. Kerrah decided to go full private treaty this year rather than its usual mid-May sale date and sold 80 out of 84 with an average of $7613.

James and Abby Peddie

Oatley Hill Stud

Glenbrae Herefords

John Griffith & Co Ltd Ahahi Charolais with Australian semen rights to Palgrove Charolais

Okapu Station

x 2 one to Mike Fitzpatrick and one to Auahi Farm

Uymawera

Commercial

BUYER

Brought to you in partnership with

When the calendar got around to the East Coast in late June prices really took off, including a NZ onfarm record price of $104,000 made by Turiroa. The highest price paid for a Hereford this season was $42,000

Hemingford

Coleman Farms

Auahi Charolais

STUD

early threat of disruption to travel and bidding by covid-19 did not pan out. The sale season started with uncertainty towards the end of the lockdown and averages and top prices were back on 2019.

Umbrella Range, Argyle Station

Commercial

Turiroa Angus

Tahu Ruanui Angus - Taihape

BUYER

Farmers Weekly 2020 Bull sale results

ILVERSTREAM Charolais at Ataahua, near Christchurch, postponed its annual bull sale by a month this year and achieved a good result with a top price of $35,000 being the best for some years. Stud principal Brent Fisher said 52 of 57 Charolais bulls were sold for an average price of $9519, which was better than last year. Top price was lot 2, Silverstream Osmar 41 by a Canadian bull JWX Downtown, from an outcross bloodline and heterozygous polled. The price was paid by Ahahi Charolais and Australian semen rights went to Palgrove Stud in New South Wales. The sale on July 10 was attended by about 250 people, the biggest turnout, and Fisher thought there were pros and cons attached to the delay. More people might have been able to attend in person whereas

hugh.stringleman@globalhq.co.nz

S

Hugh Stringleman

others might have bought their bull requirements ahead of time. Three further bulls sold for $20,000 or better and a number of new buyers were successful. Silverstream also sold 10 of 12 Hereford bulls offered from the smaller Hereford stud established during the past decade with cattle from Anna Fisher’s parents, Peter and Jill Smyth, Nga Puteputi, Hawke’s Bay. The Hereford average was $7800 and the top price $16,000 paid by Minzion station, Miller’s Flat. Lot 30 in the Charolais sold for $9000 and the proceeds went to the NZ Agricultural Show, Canterbury. Carrfields livestock agent and auctioneer Neville Clark, Gisborne, who called the Silverstream sale, said the overall results for this year’s sale season were pleasing for vendors and commercial buyers. The rising demand for beef in all our markets was reflected in keenness for bulls among commercial farmers prepared to pay for genetics to improve their herds and results. Higher price averages for some sales compared with past years might have been inflated by high-

Bull sale season improves with age


41

Gisborne

Culverden

Geraldine

Masterton

Nuhaka

Lake Hayes

Blenheim

Nelson

Fairlie

Angus

Kaharau

Kaiwara

Kakahu

KayJay

Kenhardt

Kincardine

Leefield Station

Martin Farming

Meadowslea

Merchiston

Paeroa

Hastings

Waitawheta

Waiterenui

Clarence Valley

Paihia

Waitangi

Woodbank

22

Hawera

Wairere

Waipukurau

Palmerston

Waimara

Gisborne

Blenheim

Waterfall

Waiwhero

Waikaia

Umbrella Range

Whangara

47

Ngaruawahia

Twin Oaks

59

32

24

55

18

27

7

24

46

50

20

142

Wairoa

Conway Flat

Te Mania

40

Turiroa

Mahoenui

Tarangower

14

66

Masterton

Tapiri

35

Gisborne

Gisborne

Tangihau

70

Turihaua

Ward

Taimate

40

48

Irwell

Sudeley

83

Masterton

Otorohanga

Storth Oaks

90

Pahiatua

Pleasant Point

Stern

43

Te Whanga

Taumarunui

Shian

75

19

19

18

33

Totaranui

Te Akau

Pahiatua

Rolling Rock

Seven Hills

Ohakune

Ruaview

35

Weka Pass

Cheviot

Wanganui

Tolaga Bay

Ranui

Ratanui

Red Oak

41

27

Te Karaka

Rangatira

Riverlands

54

Taumarunui

18

29

33

Puke-Nui

Marton

Pine Park

22

Masterton

Millers Flat

Peters Genetics

34

Hauroko Valley

Wedderburn

Penvose

10

Pinebank

Gisborne

Orere

30

47

23

76

24

10

8

41

33

78

26

59

35

21

31

12

Pikoburn

Ashhurst

Masterton

Ngaputahi

Oregon

Kumeroa

Te Awamutu

Hingaia

Middlemarch

Hastings

Hallmark

Mt. Mable

Culverden

Grampians

Nethertown

40

Mosgiel

Glenwood

55

27

12

41

21

50

17

27

5

24

41

50

63

42

20

132

33

14

27

68

38

69

75

41

53

17

12

18

32

26

31

54

27

18

29

32

15

31

10

30

39

19

41

36

71

15

10

8

41

33

77

23

59

27

21

31

11

BULLS SOLD

LOCATION

STUD

8018

6983

5141

7256

6214

7690

6400

7653

5080

10,186

8317

12,560

10,357

7609

6515

10,056

6545

7500

8926

10,000

11,176

8659

8400

10,756

6066

7176

7715

8316

7756

7942

5900

9416

7074

6850

7125

6200

6006

7132

9500

10,100

6600

7227

10,439

8222

10,080

7767

7170

7087

8700

10,500

9753

7652

12,839

7056

8120

11,080

5850

PRICE ($)

16,000

8500

34,000

17,000

15,000

11,000

13,000

18,000

40000

104,000

15,500

12,000

9000

47,000

12,000

10,500

21,000

26,000

60,000

28,000

21,000

34,000

10,500

15,000

10,300

20,000

14,500

11,500

17,000

35,000

15,500

11,700

11,000

12,000

12,500

13,000

14,000

26,000

14,000

11,000

17,500

14,500

35,500

20,000

10,200

16,000

16,500

26,000

17,500

50,000

13,500

13,000

20,000

9000

PRICE ($)

Commercial

Motere Angus

Max Tweedie - Hallmark Angus

Tarangower Angus

Rangiora Trust

Commercial

Rob and Lyn Hall, Lilliesleaf Angus Stud

Commercial

Wilkins Farming

Kaharau Angus and Orere Angus

Commercial

Commercial

Commercial

Tangihau Angus

x 2 to Commercial

Hangaia Angus

Grampians Angus

Earnscleugh Angus

Stockman Angus and Kauri

KayJay Angus

Tangihau Angus

Commercial

Turihaua Station

Commercial

Commercial

Commercial

Commercial

Commercial

x2

Commercial (Taihape)

Hawkdun Station

Tarangower Angus

Allen Wilson

Commercial

Commercial

Cricklewood Angus

Tangihau Angus

Commercial

Commercial

Dion Kilmister

Fernvale Genetics

Inverloch

Commercial

commercial

BUYER

Nelson

Maungahina

Masterton

Lees Valley

Richon Stoneburn

Palmerston

Masterton

Otautau

Wainuka Maungahina

Te Kuiti Eketahuna

Ipurua

Bidr

Loch Lomond Kaimoa

Ward

Burtergill

Middlemarch

Rotorua

Waikite Foulden Hills

Roxburgh Ohakune

Lone Pine Ruaview

Wairoa Mosgiel

Kerrah

Waitahuna

The Catlins

Masterton

Tapanui

Whangarei

Matamata

Gisborne

Gore

Lilburn Valley

Masterton

Stratford

Leafland

Glenside

Beresford

Hinewaka

Glendhu

Snake Gully

North Island Sale

Wilencote

Waikaka

Waiau Hereford

Te Taumata Genetics

Tawanui

Mahoenui

Rangiwahia

Riverlee

RockEnd

Otautau Christchurch

Pourakino Downs Pute

Ruapehu Geraldine

Okahu

Mayfield

Dannevirke

Gisborne

Te Anau

Kaikoura

Orari Gorge

Okawa

Ngakouka

Mokairau

Monymusk

Matariki

Timaru

Martin Farming Matatoki

Millers Flat Lowburn

Limehills

Havelock North

Koanui Locharburn

Reporoa

Cheviot

Cheviot

Porangahau

LOCATION

Kairuru

Capethorne

Grassmere

Glenbrae

STUD

LIMOUSIN 4700

4125

9983

6645

6450

5433

6600

7096

5600

5100

6302

7800

6373

6543

5990

7484

6420

6537

8400

9100

10,907

5300

5500

5708

8110

8967

7977

6400

8692

6400

5210 7140 6142

5000

5850

6100

5136

7613

6376

4950

5833

6950

5100

5100

6800

17

11,735

SPECKLE PARK

3

22

13

5

10

SOUTH DEVON

3

SANTA GERTRUDIS

7

11

16

11

80

17

14

SIMMENTAL

18

12

SHORTHORNS

13

8

30

12

6

15

16

25

19

8

19

10

11

23

10

45

16

27

38

58

27

6

2

24

58

47

22

11

13

26

PRICE ($)

35,000

8000

11,000

8000

8000

13,500

5800

5000

9000

9500

6200

18,000

9200

12,000

11,000

8500

9500

7500

16,000

12,000

11,000

8500

11,250

13,500

12,000

6500

10,500 x 2

16,000

14,000

11,000

9000

26,000

10,800

10,000

14,500

42,000

40,000

6000

6000

13,000

20,000

25,000

15,000

9500

19,000

15,000

PRICE ($)

JAD Speckle Park NSW Australia

B Murphy, Aria

Richard Nichol

Mt Gowrie Station

Commercial

Lowridge Simmentals

Jim Scorgie

Commercial

Phil and Pauline Gaudin

Dennis Wishnowsky

One to Potutu Station and one to Mangatoitoi Station

Commercial

Commercial

Otamatea Herefords

G W Lewthwaite

One to Okupata Herefords and one to Hinau Station (Commercial)

Minzion Station

Monymusk Herefords

Tawanui Herefords

Maungahina

Wairakaia Station

Campbells Block

Glenbrae Herefords

Stoneburn Herefords

Orari Gorge Hereford

Alpha Burn

Beaumont Station

Charwell Herefords

One to Wilencote Herefords and one to Flagstaff Herefords

Merrylea Stud

Alfirston Herefords

Moana Herefords

BUYER

Prices in this table have been supplied and Farmers Weekly takes no responsibility for any errors.

17

6

23

6

10

3

10

12

19

16

84

17

17

20

12

16

14

30

22

19

26

16

25

23

10

20

12

13

31

12

53

23

30

39

64

33

8

3

31

59

54

27

12

14

30

BULLS SOLD


MARKET SNAPSHOT

44

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)

5.45

5.40

5.75

NI lamb (17kg)

7.20

7.15

8.00

NI Stag (60kg)

6.10

6.10

8.85

NI Bull (300kg)

5.45

5.45

5.45

NI mutton (20kg)

4.95

4.95

5.45

SI Stag (60kg)

6.10

6.10

8.85

NI Cow (200kg)

4.15

4.10

4.40

SI lamb (17kg)

6.95

6.85

7.75

SI Steer (300kg)

4.85

4.80

5.55

SI mutton (20kg)

4.55

4.55

5.45

SI Bull (300kg)

4.70

4.70

5.10

Export markets (NZ$/kg)

SI Cow (200kg)

3.50

3.50

4.10

UK CKT lamb leg

9.31

9.47

9.83

US imported 95CL bull

8.07

8.07

7.95

US domestic 90CL cow

8.03

8.20

7.31

Last week Prior week

Last year

Export markets (NZ$/kg)

$/kg CW

North Island steer slaughter price

$/kg CW

6.50

5.50

5.0

$/kg CW

South Island steer slaughter price

6.50

8.0 7.0

5.0

Oct

5.00

WOOL

4.50

(NZ$/kg)

Dec 5-yr ave

Feb

Dec

Feb

Apr

5-yr ave

Jun

2018-19

Dairy

Oct

Dec

Feb

Apr

Aug 2019-20

Apr 2018-19

Jun

Aug 2019-20

Fertiliser

Aug 2019-20

Last week

Prior week

Last year

1.91

1.88

2.96

NZ average (NZ$/t)

Last week

Prior week

Last year

Urea

572

572

616

294

294

313

750

750

783

37 micron ewe

1.90

1.85

-

Super

30 micron lamb

1.90

1.90

-

DAP

Grain

Data provided by

MILK PRICE FUTURES

Top 10 by Market Cap

CANTERBURY FEED WHEAT

Company

Close

YTD High

Fisher & Paykel Healthcare Corporation Ltd

35.9

37.33

YTD Low 21.1

20.26

21.35

13.8

8.00

430

The a2 Milk Company Limited

7.50

420

Meridian Energy Limited (NS)

4.6

5.8

3.61

Auckland International Airport Limited

6.15

9.21

4.26 3.445

$/tonne

7.00 6.50 6.00 5.50

Aug-19

Oct-19 Dec-19 Sept. 2020

Feb-20

Apr-20 Sept. 2021

Jun-20

DAIRY FUTURES (US$/T) Last price*

WMP

Spark New Zealand Limited

4.77

4.93

Ryman Healthcare Limited

13.05

17.18

6.61

400

Mercury NZ Limited (NS)

4.56

5.62

3.595

390

Port of Tauranga Limited

7.7

8.14

4.9

Mainfreight Limited

42.9

43.99

24

Contact Energy Limited

5.75

7.74

4.54

410

380

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

May-20

Jul-20

CANTERBURY FEED BARLEY Prior week

3215

2940

vs 4 weeks ago

410

Listed Agri Shares Company

Close

YTD High

The a2 Milk Company Limited

20.26

21.35

13.8

2.9

4.97

1.66

Comvita Limited Delegat Group Limited

12.85

13.33

6.39

400

Fonterra Shareholders' Fund (NS)

3.89

4.06

3.41

395

Foley Wines Limited

1.65

1.91

1.35

Livestock Improvement Corporation Ltd (NS)

0.75

0.82

0.68

Marlborough Wine Estates Group Limited

0.183

0.21

0.18 1.29

2780

2610

2515

AMF

4000

4050

4050

Butter

3690

3580

3650

Milk Price

7.23

7.23

7.22

390 385 380

Jul-19

* price as at close of business on Thursday

Sep-19

Nov-19

Jan-20

Mar-20

May-20

Jul-20

New Zealand King Salmon Investments Ltd

1.87

2.3

PGG Wrightson Limited

2.95

3.01

1.55

Sanford Limited (NS)

6.59

8.2

5.55

Scales Corporation Limited

5.25

5.3

3.3

4

4.74

3.4 4.36

Seeka Limited

WMP FUTURES - VS FOUR WEEKS AGO

WAIKATO PALM KERNEL

3400

400

3200 $/tonne

3000 2800 2600

Synlait Milk Limited (NS)

7.16

9.1

T&G Global Limited

2.68

2.93

2.35

16842

16959

12699

S&P/NZX Primary Sector Equity Index

350

S&P/NZX 50 Index

11505

12073

8499

S&P/NZX 10 Index

12147

12466

9100

300 250

Jul

Aug Sep Latest price

Oct

YTD Low

405

SMP

2400

5pm, close of market, Thursday

2790 $/tonne

Nearby contract

US$/t

Jun

2018-19

FERTILISER

Coarse xbred ind. Oct

South Island stag slaughter price

5-yr ave

5.50

4.00

Last year

6.0

6.00 $/kg CW

South Island lamb slaughter price

9.0

4.00

12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0

Last week Prior week

North Island stag slaughter price

7.0 6.0

5.00

12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0

8.0

6.00

4.50

$/kg MS

North Island lamb slaughter price

9.0

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

Nov 4 weeks ago

Dec

200

Jul-19

S&P/FW PRIMARY SECTOR EQUITY

Sep-19

Nov-19

Jan-20

Mar-20

May-20

Jul-20

16842

S&P/NZX 50 INDEX

11505

S&P/NZX 10 INDEX

12147


45

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

Pulse

WEATHER Soil Moisture

Overview Sub-tropical winds have kept the upper North Island warmer than average lately with rainfall especially heavy in Northland, Coromandel Peninsula, East Cape and Gisborne. The South Island has remained under a lot of high pressure lately with an especially cold run so far this month. This week the South Island briefly warms up while the North Island briefly cools down. Mid-week, New Zealand has a southerly surge that will see snow in the mountains once again and another temperature drop nationwide. It might be more noticeable for the North Island following the warmer-thanaverage, sub-tropical winds there lately. Rain is fairly average in the week ahead though Canterbury is perhaps the driest.

Store cattle prices approach winter high

16/07/2020

Reece Brick reece.brick@globalhq.co.nz

Source: NIWA Data

Highlights

Wind

Sub-tropical winds ease in the north then swing westerly quarter before more southwest on Wednesday in a number of regions. That southwest flow eases later this week as high pressure rolls in bringing lighter winds into the weekend.

Highlights/ Extremes

Temperature TEMPS

A southerly change late Tuesday and into Wednesday should see heavy snow in the South Island ranges and heavy rain on the West Coast at times. It is drier than normal in Canterbury, especially South Canterbury.

The run of warmer-thanaverage weather will ease in the North Island while the South Island has a brief warming up before the midweek cool-down resets that.

14-day outlook

7-day rainfall forecast

0

Sub-tropical winds finally clear away from the North Island on Monday as the northern low finally clears to the east along with high pressure. As we head into a Tuesday a fairly classic cold front moves onto NZ from the west with rain then showers followed by a colder southerly flow on Wednesday. Later this week and into the weekend high pressure expands over NZ. While there’s a chance of rain next Monday, next week might see more high pressure too.

5

10

20

30

40

50

60

80

100

200

S

TORE cattle markets are fickle beasts the best of times. A long list of factors shifts livestock values up or down but ultimately it comes down to buyer confidence about what the future holds. Mid-lockdown wasn’t pretty for the beef industry and led to some poor returns for anyone who had to offload cattle that were too light to kill. North Island R2 bulls were barely getting more than $2/kg while steers settled to around $2.50/kg. These days both have shot up to about $3/kg, underpinned by the drought breaking, lifting schedules, wait times at processors improving and less anxiousness around covid-19 as a whole. The halfway mark for winter is behind us, gradually shifting attention to what the spring cattle markets might bring. Focusing on the here and now it appears store cattle prices are approaching the maximum we can expect for winter. One reliable measurement for the strength of store cattle is to compare against schedules. It’s rare for R2 steers and bulls to make more than 55% of schedule in winter, which is barely any different to what is being paid today – 54% for steers and 53% for bulls. That is impressive considering the global beef trade remains sketchy, the big wave of store cattle that has already sold this winter and that most regions have below-average grass covers. The latter two factors could have an interesting role come spring. A lot of cattle farmers have jumped the

gun with selling to preserve feed, choosing to take the money and run rather than trade in the spring as usual. That will only contract the number of cattle available in a few months’ time. The potential for another surge in store cattle interest remains, though. Plenty of areas such as Hawke’s Bay destocked heavily through the drought and a standard spring flush will force a lot to buy in before feed quality deteriorates. Some buyers have tried to get ahead of the game, hence the latest set of price increases, but are often after short-term cattle that might be slaughtered before spring is even finished. For simplicity’s sake we’ll assume all of the above balances itself out and buyers pay a normal amount relative to schedules in spring. Using AgriHQ’s data and forecasts that would put a 300-350kg yearling beef steer in the North Island at $1000-$1200 ($3.35/kg) and the same weighted bulls and heifers at $900-$1050 ($3/kg). That is all quite logical but often reality doesn’t follow logic. There have been more than enough instances of traders using cash from prior stock sales as a basis for budgeting or simply paying whatever is needed on the day to secure tallies. If anything, that sort of attitude will push the above prices higher. Increasingly, there’s two sets of buyers – those willing to fight for quality cattle and those more focused on keeping costs down. That has created a split market at the yards lately and its likely to be intensified in spring given the much larger portion of lighter, drought-affected cattle that will be available versus usual. That is particularly noticeable on heifers but is becoming similar for bulls given the amount of Jerseyblood that is increasingly seeping into Friesian lines.

400

Rain is more broken up this week and many more regions are drier than average. The West Coast is wetter than average while Canterbury continues to stay fairly dry though the southerly change should provide some mid-week showers. High pressure grows later in the week and is likely to dominate into the weekend. Apart from some chance of a burst of rain next Monday from a short-lived Tasman Sea low, high pressure might well dominate into next week too.

GOOD RETURNS: Yearling beef steers could hit up to $1200 at spring store sales or more if traders are active.

Weather brought to you in partnership with weatherwatch.co.nz

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

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46

SALE YARD WRAP

Heavy prime lambs top $200 As the season marches on very heavy prime lambs are more of a feature at various yards and with consistent demand from buyers each week there are some impressive prices being recorded. At Feilding on Monday the very heavy male and mixed-sex lambs made $180-$206 while at Coalgate on Thursday feature pens reached $196-$206. NORTHLAND Wellsford store cattle • Six R3 Hereford-Friesian heifers, 531-570kg, sold well at $2.66$2.68/kg • R2 Angus-cross steers, 358kg, improved to $2.60/kg • R2 Angus-Friesian heifers, 409-440kg, were well sought after at $2.57-$2.58/kg • R1 traditional heifers, 168-185kg, sold well at $470-$560 • Quality autumn-born one-year Hereford-Friesian steers, 290324kg, achieved $2.84-$2.90/kg A cold wintry week prior meant a smaller buyer turnout at WELLSFORD last Monday and the mixed quality offering meant results also varied. R2 Hereford steers, 398kg, held at 2.64/kg, as did Hereford-Friesian, 406kg, at $2.65/kg, though 420-484kg eased to $2.49-$2.58/kg. HerefordFriesian heifers, 365kg, lifted to $2.62/kg while 400-408kg eased to $2.33-$2.48/kg. Hereford-dairy, 348-431kg, softened and better types returned $2.37-$2.48/kg and lesser $2.21-$2.27/kg. All R1 steers, 203-253kg, traded at $590-$610. Three Hereford-Friesian, 190kg, topped their section at $690, though 159kg softened to $495. AngusFriesian, 182-254kg, were solid at $560-$630. Traditional bulls, 181-257kg, fetched $480-$705 while Friesian, 117kg, held at $385, and heavier 225kg returned $605. Read more in your LivestockEye. Kaikohe cattle • R2 Shorthorn-cross and beef-cross steers made $2.55- $2.58/kg • Small R2 Jersey-cross bulls earned $1.85/kg to $2.00/kg • R2 heifers fetched around $2.45-$2.50/kg Around 480 head of cattle were presented at KAIKOHE last Wednesday, PGG Wrightson agent Vaughan Vujcich reported. The extreme wet weather in the region kept buyers away, and the market dropped by around 10c/ kg across the board. A limited number of R1 beef-cross steers made $2.75/kg to $2.95/kg. A large yarding of bulls saturated the market and better Friesian, 150-160kg, achieved $500-$520, with smaller bulls at $380-$460. Heavier Friesian and Friesian-cross boner cows sold up $1.85-$1.93/kg.

COUNTIES Tuakau sales • Well-framed Hereford-Friesian steers at 487kg made $2.97/kg • Prime steers reached $3.00/kg • Prime Charolais heifers, 605kg, sold at $2.98/kg • Top prime lambs earned $200 About 550 store cattle were on offer at TUAKAU last week and the market firmed, Carrfields Livestock agent Karl Chitham reported. Hereford-Friesian steers, 404kg, made $2.91/kg, and most 300-400kg earned $2.70-$2.90/kg. Hereford-Friesian weaner steers, 214kg, fetched $725, and autumn-born Simmental, 133kg, $455. Heifers, 300-400kg, traded at $2.62-$2.77/kg. Hereford-Friesian weaners, 136kg, returned $445, and autumn-born Simmental, 116kg, $450. Prices also firmed at Wednesday’s prime sale. Heavy exotic steers, 720kg, fetched $2.90-$3.00/kg, and medium beef steers, $2.76-$2.88/kg. Most heavier heifers fetched $2.84$2.93/kg, while medium made $2.70-$2.77/kg. Friesian cows, 540kg, earned $2.20/kg, and 470-500kg, $1.90/kg. Most heavy prime lambs returned $162-$187 on Monday, with medium primes at $135-$152. Forward-stores managed, $112-$123, medium $94-$107, and light, $66-$79. Heavy ewes fetched $165, and medium, $130-$157.

BAY OF PLENTY Rangiuru cattle and sheep • R2 Hereford-Friesian steers, 438kg, sold for $2.95/kg • R2 Hereford-Friesian heifers, 403kg, fetched $2.66/kg • R1 Hereford bulls, 236kg, made $710 • Boner Friesian cows, 435-517kg, all earned $1.84/kg The store cattle section was split 50:50 between R1 and R2 cattle at RANGIURU last Tuesday with the majority of the R2’s beef and dairy-beef steers that made $2.59/kg to $2.74/kg. The R1 section consisted of mostly traditional types with steers, 153-205kg, priced at $550-$638 with same weighted heifers at $420-$555. In the prime pens in-calf

Hereford-Friesian cows, 638kg, earned $2.45/kg, while Hereford-Friesian and Hereford-dairy, 502-508kg, were the main non-dairy cows at $2.37-$2.48/kg. Lambs sold in the range of $40-$131, with the few ewes penned mostly $90$128. Read more in your LivestockEye.

POVERTY BAY Matawhero sheep • Mixed-sex store lambs earned $121 • Better scanned-in-lamb ewes traded at $127-$158 • Prime lambs made $143.50-$150.50 • Prime mixed-age ewes sold at $125 It was a very wet day at MATAWHERO last Friday. Around 630 store lambs on offer sold reasonably well with male lambs at $111-$129, while the top end of ewe lambs fetched $105-$122 and the bottom end $81-$95. Read more in your LivestockEye.

WAIKATO Frankton cattle, sheep and feeder calf sales • R2 Charolais-cross steers, 438kg, earned $3.06/kg • R2 Hereford-Friesian heifers, 271kg, reached up to $2.84/kg • R1 Friesian bulls, 219kg, fetched $2.99/kg • Whiteface bull calves made $290-$310 A full bench of local buyers was required to dig further into their pockets for a reduced offering of store and prime cattle at FRANKTON last Tuesday. The market jumped up 10-20c/kg for good quality shorter-term cattle where R2 steers mostly made $2.88-$2.95/kg. R2 heifers also lifted as the bulk achieved $2.70-$2.79/kg. R1 steers were steady with the lion’s share at $2.94/kg to $3.10/kg. A large offering of boner Friesian cows strengthened, and the better end made up to $1.94-$1.96/kg. In the sheep pens top prime lambs were able to earn $161-$201 and medium $121-$158. Prime ewes fetched $110-$156. Better store lambs traded at $108-$126, although light to medium types were $65-$90, and in-lamb ewes earned $176-$187. Read more in your LivestockEye. Frankton cattle, sheep and feeder calf sales • Top quality R2 Hereford-Friesian heifers, 446kg, managed $2.70/ kg • R2 Hereford-Friesian and Hereford-dairy steers, 385-386kg, returned $2.64-$2.68/kg • Twelve R1 Angus steers, 240kg, were chased to $860, $3.58/kg • Medium to good Hereford-Friesian bull calves improved to $210$285 Store cattle throughput came back to 295 head at FRANKTON last Wednesday for New Zealand Farmers Livestock. R1 Hereford-dairy steers, 142-191kg, eased to $340-$520 whilst Friesian bulls, 162-189kg, lifted to $380$440. Five autumn-born weaner Speckle Park heifers, 122kg, managed $435 with beef-dairy, 93-100kg, at $305$315. Hereford-Friesian bulls, 79-89kg, fetched $380-$410. Just shy of 70 prime cattle were penned. Boner cows, 452-536kg, mostly held at $1.76-$1.83/kg, and in-calf lines, 484-608kg, sold to strong demand at $2.28-$2.31/kg. Prime steers, 565592kg, were consistent at $2.79-$2.82/kg, with Hereforddairy heifers, 543kg, close behind at $2.78/kg. Feeder calf numbers increased to 298. Friesian bulls earned $165 for good types, while small to medium returned $80-$120. Hereford-Friesian heifers managed $220 for tops and $80$150 for small to medium. Read more in your LivestockEye.

TARANAKI Taranaki cattle fair • R2 Hereford-Friesian heifers, 441kg, made $2.63/kg • Prime steers, 642kg, fetched $2.80/kg • Boner Friesian-cross cows, 390kg, made $1.47/kg Steers of all ages performed well at the TARANAKI Cattle Fair last Wednesday. With little difference between anything with quality and heavy R2 and R3 steers, 496-525kg, fetched $2.81-$2.84/kg, while anything light or poorly marked were penalised. R2 heifers were steady with most 10c/kg either side of $2.30/kg.

There was strong competition for R1 steers with the top end able to return up to $3.80/kg. Read more in your LivestockEye.

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Angus steers, 496-526kg, improved to $3.10-$3.19/kg • South Devon-cross cows, 565kg, strengthened to $2.37/kg • Top ram and cryptorchid lambs sold well at $159.50-$166 • Very-good to heavy ewes held at $125-$145 More quality steers were presented at STORTFORD LODGE last Monday and Angus, 558kg, held at $3.10/kg. Lamb throughput increased slightly to 545. Very-heavy mixed-sex lambs eased to $160, and good to heavy types held at $120-$149.50. Good to very-heavy ewe lambs also held at $119.50-$160.50. Quality improved for the top end of the ewe section and very-heavy types lifted to $168. The balance of the yarding held with medium-good to good at $110-$122, and lightmedium to medium returned $86-$107. Read more in your LivestockEye. Stortford Lodge store cattle and sheep • One pen of R2 Friesian bulls, 432kg, made $2.82/kg • R1 Simmental-Gelbvieh steers and heifers, 184-191kg, returned $575-$600 • Good male lambs lifted to $121-$136 • Good ewe lambs held at $114-$125 • Mixed age Romney-cross ewes, scanned 118%-123% to TexelPoll Dorset, made $110.50-$142 Another good-sized yarding of store lambs at STORTFORD LODGE last Wednesday was hunted by a big bench of local and outside buyers. Males out-numbered ewe lambs in the bigger pens, though 1400 of the yarding were in small lines. Cryptorchid and male lines firmed, though ram lambs eased. Medium males earned $111-$116, while the top ewe lambs reached $138.50. Cattle were mostly lighter weights and mixed breeding. A pen of 10 R2 Angus steers was one of the few purebred lines and at 423kg sold for $2.74/kg. Angus-beef, 270308kg, made $2.57-$2.63/kg, while Angus-Friesian, 336kg, returned $2.41/kg, closely matched by Hereford-dairy heifers, 323kg, at $2.40/kg. A big variance in type in the R1 pens meant this class ranged from $150 for crossbred, up to $695 for 213kg Hereford-Friesian heifers. Read more in your LivestockEye.

MANAWATU Feilding prime cattle and sheep • Friesian heifers, 505kg, made $2.58/kg • Friesian cows, 513-583kg, earned $2.21-$2.24/kg • A few very-heavy and heavy ewes fetched $150-$202 Two-thirds of the lamb tally was either male or cryptorchid at FEILDING last Monday. Over half of these were very-heavy types that earned $175-$199 but were eclipsed by one small pen of mixed-sex that pushed higher to $206. Heavy types were priced from $150-$174, with medium-good to good lambs $129-$150. Nearly half of the ewe tally was good types at $126-$147 with the balance generally medium-good to medium condition that earned $105-$125. Read more in your LivestockEye. Feilding store sale • R2 Friesian bulls, 445-495kg, eased to $2.90/kg • R1 Friesian bulls, 225-235kg, consistently made $2.80-$2.90/kg • Good SIL and RWR two-tooths made $220-$239 • Male lamb average lifted slightly to $127.50 • Ewe lamb average held at $111 There were around 1400 cattle for vendors to choose from, with the market varying between a little weaker and a little stronger depending on the class in question. A hundred capital stock VIC mixed age Angus cows made $2.35-$2.50/kg, $1260-$1330 to start the day. Forward beef steers, 490-640kg, held at $3.00-$3.10/kg, while those 375430kg made $2.85-$3.00/kg. Friesian bulls, 350-500kg, made between $2.75-$2.95/ kg with the lighter autumn-born lines typically at the lower end of this range. Two big lines of 360-390kg R2 Angus


47

FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020

price of the day achieved by a Limousin bull, 655kg, that made $2.64/kg. Most cows were dairy types, 449-455kg, that earned $1.52-$1.56/kg. The main feature of the store section was R2 AngusFriesian and Hereford-Friesian heifers, 323-428kg, that mostly sat in the range of $2.01-$2.06/kg. Only one pen of steers was offered – R2 Hereford-Friesian, 394kg, that made $2.16/kg. Conditions through the ewe pens was good and the bulk traded at $111-$156. The top cut of prime lambs earned $196-$206, with the balance $117-$181. The store section featured a good mix of lambs with the top pens at $121-$128 and most others $100-$118.

SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • Angus steers, 475-543kg, fetched $2.50-$2.53/kg • Dairy-beef steers generally made $2.39-$2.50/kg • Friesian cows, 560-830kg, made $1.60/kg to $1.80/kg • Friesian cows, 430-545kg, mostly earned $1.57-$1.66/kg Dairy lines provided much of the tally at TEMUKA last Monday, with very few pure beef pens. Angus-cross heifers, 412-665kg, earned $2.35-$2.43/kg and while HerefordFriesian, 450-599kg, sold well at $2.39-$2.48/kg the most popular heifers were Angus-Hereford, 480-655kg, that made $2.45/kg to $2.57/kg. Perendale-cross performed well in the store lamb pens at $113-$121, with heavy pens of other breeds $105-$144, and the remainder mostly $96$104. Two-thirds of the prime lambs sold in the $160-$181 range with the bulk of the remainder at $130-$159. The ewe pens were busy with a sizable yarding of scanned dry ewes. One pen earned $212, with most of the better end $140-$172. The lion’s share of the tally earned $100-$139, whilst $50-$99 covered most of the rest. Read more in your LivestockEye.

OTAGO

WHO’S IN? Redshaw Livestock agent Scott Heasley sells 191 top Romney ewe lambs (Turner-bred) for $138.50 at Stortford Lodge last week. They went to a Manawatu buyer.

heifers made $2.80-$2.90/kg, but otherwise $2.40-$2.60/ kg covered the bulk of the rest for all breeds. Some 105kg autumn-born weaner Hereford-Friesian heifers sold for $410. Around 10,500 lambs sold on a steady-to-firming market. Top lines of male lambs were $140-$150, mediums $120-$135, with $90-$115 covering the lighter pens. For ewe lambs the market was consistently $120-$130 for good types, $105-$120 for mediums, and usually $90-$100 for all but the lightest. Thirty pens of ewes had a solid sale. Good quality older ewes with above-average scanning figures were $190-$220, moving down to $145-$175 for the next cuts, while lighter and poorer scanning ewe3s made $115$140. Read more in your LivestockEye. Rongotea cattle • R2 Simmental bulls, 710kg, made $2.69/kg • R1 Hereford-Friesian steers, 263kg, earned $1.77/kg • R1 Belgian Blue-cross heifers, 220-248kg, traded at $2.27-$2.30/ kg • Weaner Hereford-Friesian heifers, 135-170kg, fetched $260-$500 • In-calf Friesian cows sold at $1250-$1450, with heifers at $885 There was a subdued buying bench at RONGOTEA last Wednesday, New Zealand Farmers Livestock agent Darryl Harwood reported. R2 Hereford-Friesian steers, 415kg, made $2.53/kg, while same breed heifers, 301-358kg, traded at $1.96/kg to $2.33/kg. R2 Murray Grey-cross and Simmental-cross steers, 214-275kg, sold for $2.34/kg. Friesian bull feeder calves made $150-$245, and HerefordFriesian $100-$280, while Angus-cross heifers managed $225.

CANTERBURY Canterbury Park cattle and sheep • Prime traditional steers, 575-666kg, earned $2.63-$2.72/kg • Prime dairy-beef steers, 575-660kg, mostly traded for $2.50$2.61/kg • Store lambs generally made $92-$119 Store and prime lamb numbers dropped to the lowest level since November at CANTERBURY PARK last Tuesday. Heavy prime lambs returned $169-$191, with most of the rest at $134-$161. A few ewes earned $198-$200, and a good portion traded for $144-$187 while medium to good types provided most of the balance at $86-$140. Well-finished prime cattle attracted good prices and high yielding beef and beef-cross heifers usually made $2.45-$2.55/kg. Cows were few and far between and were selectively purchased in the range of $1.43/kg to $2.08/kg dependant on type. Very few store cattle were penned. Read more in your LivestockEye. Coalgate cattle and sheep sale • Prime Murray Grey-cross steers, 640kg, made $2.61/kg • Prime Angus-cross and Hereford-Friesian steers, 510-618kg, fetched $2.49-$2.58/kg • Prime Limousin and Hereford-Friesian heifers, 485-650kg, traded for $2.52-$2.59/kg • Three prime ewe pens earned either $247, $213, or $200 • Longdown ewes, scanned at 194%, sold for $179 Cattle at COALGATE last Thursday were evenly split between the prime and store sections with the top prime

Balclutha sheep • Heavy prime ewes lifted to $140-$175 • Heavy prime lambs returned $150-$170 • Prime rams fetched $50-$60 There was a small yarding of prime lambs at BALCLUTHA last Wednesday where a new buyer lifted competition with medium types at $120-$140, and light $110-$115. Prime ewes improved and medium earned $110-$130, and light $70-$100. A small yarding of store lambs traded at steady to lifting levels, with the top end at $105-$115, and medium $80-$100.

SOUTHLAND Lorneville cattle and sheep sale • Boner cows, 400kg, made $1.32/kg • R1 beef steers, 128kg, traded at $375 • Medium prime ewes traded at $120-$139 • Heavy prime lambs were steady at $150-$160 • Prime two-tooths fetched $110-$111 There was a very small yarding of prime cattle at LORNEVILLE last Tuesday where steers and heifers, 450500kg, fetched $2.40/kg. Store cattle were also limited and R2 Hereford heifers, 450kg, earned $2.33/kg, with R1 Friesian bulls, 205kg, at $450. Prime ewes softened a little, as the top end earned $144-$180, and light $86-$112. Medium prime lambs held at $127-$136, and light $110$121. Charlton sheep • Heavy prime ewes firmed to $170 • Local trade rams sold up to $70 • Top store lambs sold well at $112 There was a quality yarding of prime lambs at CHARLTON last Thursday which strengthened a little at the top end to make $160, with medium at $135-$145, and light $115. Light to medium store lambs managed $75$95. Medium prime ewes earned $120-$140, and light $90. Lesser rams traded at $30-$50

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Markets

48 FARMERS WEEKLY – farmersweekly.co.nz – July 20, 2020 SI STEER

SI LAMB

NI BULL

($/KG)

($/KG)

($/KG)

4.85

6.95

5.45

R3 HEREFORD-FRIESIAN STEERS, 510KG AVERAGE, AT TARANAKI ($/KG LW)

2.81

Price boost lifts farmers’ payout F

Hugh Stringleman hugh.stringleman@globalhq.co.nz

ONTERRA has narrowed its 2020-21 farmgate milk price forecast range and lifted monthly advance rates by 25c/ kg MS before the beginning of the spring flush. It is welcome news for dairy farmers starting their most demanding and profitable part of the year. The forecast range is now $5.90 to $6.90, an increase of 40c for the lower limit, which Fonterra said is because of improved market conditions, led by China. The new advance rates will be based on the mid-point of the range, $6.40. Fonterra’s improved forecast follows higher commodity prices at recent Global Dairy Trade auctions, the latest being an 8% rise for the price index. Earlier in the week astute Fonterra farmers locked in a net $6.85 for a portion of their milk supply in Fonterra’s July Fixed Milk Price offer. The FMP rules mean the generous offer price was set because of high futures market levels following the GDP result. The offer volume of 15 million kilos was overwhelmed by applications on Monday and Tuesday. By week’s end Fonterra had not published the scale-down ratio of allocations, giving rise to the possibility the FMP scheme will need to be amended. Chairman John Monaghan said support measures for farmers in Europe and the United States are boosting milk volumes and commodity prices through the pandemic. “We expect these support measures

UNCLEAR: While there are positive signs for the year ahead uncertaintry remains, Fonterra chairman John Monaghan says.

There will be continued uncertainty around the global recession and its impact on demand in different markets and we will be watching for the potential of a second wave of covid-19 in our key markets. John Monaghan Fonterra will end but not until after the peak of the New Zealand season. “While there are some positive signs

for the year ahead it’s still very early in the season and we are keeping a close eye on consumer demand and production from the key milk producing regions. “There will be continued uncertainty around the global recession and its impact on demand in different markets and we will be watching for the potential of a second wave of covid-19 in our key markets.” Fonterra also narrowed its 2019-20 forecast by taking 10c off the upper limit so the revised range is now $7.10 to $7.20. The strengthening of the NZ dollar against the US dollar was the reason, Monaghan said. The final 2019-20 price would be part of the annual results in late September.

high $160-$195 lights Heavy Friesian bull calves at Frankton

$114-$125 Good ewe lambs at Stortford Lodge

ACROSS THE RAILS SUZ BREMNER

Feilding store cattle volume bucks trend WINTER tends to be the time when everyone hunkers down on-farm, gets stuck into feeding out and rides out the cold days ready to hit the grass markets in spring. However, a recent firming in older store cattle prices as farmers from dry areas restock was just the catalyst needed to tempt more to market at the Feilding sale yards. While most of the yards are in winter mode with low tallies and mixed quality, Feilding is taking full advantage of the out-ofseason demand that has resulted in a significant lift in volume of R2 and R3 cattle. That lift in demand, mainly from Hawke’s Bay, has been well-timed for areas servicing the Feilding yards as farmers are finding paddocks shorter on covers than they typically are at this time of year, PGG Wrightson area livestock manager Maurice Stewart reported. “Our clients are faced with little to no feed and with Hawke’s Bay getting some rain and growth it is time to move. Prices are good and they are happy to take advantage of that now rather than hold onto stock.” The volume figures speak for themselves. AgriHQ data shows the sale on Friday July 10 was the largest single winter yarding of R2 and R3 cattle at Feilding for at least 12 years. Alone that would be an achievement but it came on the back of six weeks of very high tallies equating to 6500 head of these age classes traipsing through the Feilding rostrum. There is of course a big gap in this year’s data when the country was in lockdown and some of the extra volume of the last seven weeks can be attributed to catching up but the prices those cattle made have continued to attract more to market. The note of caution, though, is the cattle being penned are those that would be seen from early September onwards and Stewart expects volume to be much lower in spring “Farmers are offloading cattle that they would usually hold right through winter to hit those spring sales so numbers of the big lines of good quality beef cattle further down the track are going to be significantly down.” suz.bremner@globalhq.co.nz

Find out more about AgriHQ at agrihq.co.nz

Ram your message home here This is the prime spot on the ‘front page’ of the livestock + markets section If your rams have the genetics farmers should invest in this season ram your message home here. For further information contact Hannah Gudsell now on 06 323 0761, 027 602 4925 or livestock@globalhq.co.nz.


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