Farmers Weekly NZ March 25 2019

Page 1

3 Farmers must fight back Vol 18 No 11, March 25, 2019

farmersweekly.co.nz

$3.95

Incl GST

Dairy dramas Hugh Stringleman hugh.stringleman@globalhq.co.nz

D

AIRY farmers face a strange mix of uncertainties when contemplating with satisfaction the likelihood of a fourth consecutive season of $6-plus milk prices. While extreme volatility in dairy product prices has calmed down and New Zealand farmers now receive as good as others in Europe and the United States, their institutions have developed cracks. There might be no better time to rebuild the foundation, beginning with the Dairy Industry Restructuring Act, part 2019. Last week Fonterra’s leaders promised for the third or fourth time since the embarrassment of their first financial loss in 2018 a fundamental strategy review. Co-operative principles will remain inviolate but outside of that there will be no sacred cows, chairman John Monaghan quixotically claimed. The giant co-operative will fundamentally change in its quest to find balance sheet stability and sustainable profits, he said. The extent of the new strategy and structure would not be fully revealed until September though sales of non-core assets will be announced as they happen. But the bombshell of the unsettling week was Westland Milk’s proposal to sell the country’s second-largest dairy co-operative to Inner Mongolia

Yili, China’s largest dairy company. It came after a string of poor payouts that resulted from restricted product options and unsuccessful plant expansions during an 18-year fight to remain independent of Fonterra. Initial reactions from some of its farmer-shareholders were mixed – for, against and waitand-see. Monaghan incurred the disapproval of Westland by prematurely regretting the demise of the co-operative and welcoming farmers who might switch supply.

Share price volatility might have replaced milk price volatility.

Aside from the breach of convention, Westland’s directors will be concerned about the ease with which its 25 Canterbury suppliers with 30 farms could switch to Fonterra or Synlait. Westland has 423 farms owned by 342 shareholders and 75% of those voting must approve the proposal in early July. Fonterra was consulted about retaining Westland as a cooperative but those talks came to nothing, Monaghan said. He and chief executive Miles Hurrell stoutly defended Fonterra’s milk prices, now widely criticised as being routinely too high for its competitors to match and for the co-operative to pay an adequate return on shareholder capital.

Those high milk prices holed Westland as a co-operative below the waterline. Yili has promised to match Fonterra for at least 10 years, an unusually generous time. Coupled with the $3.41/share offer, it seems likely the required majority of Westland suppliers will agree to sell. Canterbury farmers who do want to switch supply have a choice of no share capital requirement for Synlait or $4.25 a share Fonterra re-entry, not much more than Yili’s offer. As a multinational, Fonterra could express only mild concern about the prospect of NZ’s thirdlargest dairy company passing into foreign ownership. Its seemingly constant battle for viability in Australia was highlighted again in the interim results. Newcomer Saputo from Canada, which took over Murray Goulburn, formerly Australia’s largest co-operative, is making life very difficult for Fonterra Australia. Now down to 1100 supply farms and 20% of the milk, Fonterra is battling to fill its new $200m Stanhope cheese plant in northern Victoria. Synlait didn’t have a good week either. Its shares dropped 17% on earnings weakness that sharemarket investors hadn’t expected. At the same time A2 Milk came off its all-time share price high, its fortunes being strongly linked to Synlait as a manufacturer. Share price volatility might have replaced milk price volatility in the new landscape of the NZ dairy industry.

They’re mine DEBUT: First time weaner fair seller Mairi Whittle from Makatote near Taihape took a keen interest in the cattle sales at Feilding on Thursday. More in the markets section from page 52 to page 56.


NEWS

WEATHER OVERVIEW Our weather pattern is showing some signs of changing for a time next week and very early April. This upcoming change looks more typical for autumn with a big low in the Southern Ocean, windy northwesters ahead of a cold front and a burst of heavy rain for the West Coast. There is now some chance rain might get in to the dry North Island, too, in the finals days of March or very early April. There is one big catch though, another large high is coming in behind the high we have now. Basically, we have a window of opportunity for rain between these two highs. The pattern remains until Sunday then next week becomes windier and wetter for many.

4 Big forecasts confront

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

Wind

Rain Monday: Rain develops on the lower West Coast. Tuesday: Rain becomes heavy, maybe torrential on the West Coast. Wednesday: Rain moves into the southwest corner of the North Island and up much of the South Island. Thursday: Morning showers clear the North Island, dry elsewhere.

Temperature

World �����������������������������������������������������������������34

Warmer than average for many places on Monday. In fact, some places could be more than 8C above normal because of the sub-tropical flow and northwesters. Tuesday is still warm in the north but a cooler change arrives on Wednesday and Thursday.

32 Spud

family name’s on the pack

James Bowan grows potatoes for a nationwide paddockto-packet potato chip brand. Nearly a decade after the business started he’s still happiest in the paddock.

Light winds and sea breezes are fading as northwesters develop on Monday and kick in more so on Tuesday, becoming strong around Cook Strait and surrounds. On Wednesday a cooler southwest change moves up the country. High pressure returns on Thursday and Friday with light winds.

Highlights/ Extremes

Opinion ������������������������������������������������������������28

ON FARM STORY

Pasture Growth Index Above normal Near normal Below normal

7-DAY TRENDS

Fonterra’s leaders

Fonterra’s challenged consumer and food service division will have to produce a substantial second half improvement for the co-operative to make its earnings goal this financial year.

NZX PASTURE GROWTH INDEX – Next 15 days

Heavy rain for the West Coast, mainly on Tuesday and Wednesday so watch for slips, flooding and rain warnings. Sadly, drier than normal still for northern New Zealand. Keep an eye on the rainy remnants of Cyclone Trevor in Queensland that might reach NZ early in April.

14-DAY OUTLOOK

It’s drier than normal in the upper North Island and for a few pockets further south. Driest regions are Waikato, Bay of Plenty and parts of Auckland, Manawatu and Southland. Very heavy rain on the West Coast, especially on Tuesday and Wednesday. Some rain mid week in the eastern South Island and lower North Island but the upper North Island still looks drier than normal. There is a 50:50 chance ex-Cyclone Trevor might bring rain in early April. Expect boosts in pasture growth for the lower twothirds of NZ.

SOIL MOISTURE INDEX – 21/03/2019

REGULARS Real Estate �������������������������������������������������36-47 Employment ����������������������������������������������������48 Classifieds ��������������������������������������������������48-49 Livestock ����������������������������������������������������50-51 Markets �������������������������������������������������������52-56 GlobalHQ is a farming family owned business that donates 1% of advertising revenue to the Rural Support Trust. Thanks to our Farmers Weekly and Dairy Farmer advertisers this week: $840. Need help now? You can talk to someone who understands the pressures of farming by phoning your local Rural Support Trust on 0800 787 254.

Source: WeatherWatch.co.nz

This product is powered by NIWA Data

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

our pioneering

spirit tells us

nothing’s

Back in 1860, exporting meat to the other side of the world seemed about as easy as nailing gravy to the ceiling. But a few determined kiwis took the bull by the horns and now our grass-fed beef and lamb is sought-after all around the globe. At AFFCO, we see the same pioneering spirit alive and well in farmers today. We’re playing our part too – exploring every opportunity to take New Zealand’s finest farm-raised products to the world.

WAVE23683 NZFW

out of

reach WWW.AFFCO.CO.NZ | 0800 233 2669


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

3

Farmers must fight back now Alan Williams alan.williams@globalhq.co.nz FARMERS need to engage emotionally with their sector’s environmental critics, highlighting their links to the land, Fairlie Basin farmer Mark Adams told Beef + Lamb’s annual meeting in Timaru. “We can come across as entitled and defensive but fact-based. “When our stewardship is challenged we get defensive and stop listening,” he said. Farmers should match emotional arguments their critics use.

The more input you have now the better we can do for you, rather than spending the next 10 to 15 years on tweaks. Nicky Ablitt MPI Adams, who chairs B+LNZ’s environmental reference group, said the Government and regulators also have to tread carefully in their rule-making. “As the landowners, we hold the major card.” He compared environmental issues today to the economic reform in the 1980s. “Those reforms had to happen but the timeframes were unrealistic and caused a lot of carnage to rural businesses and families. “We need to challenge the Government and regulators to learn from the past and be realistic.” He warned the outcome will be minimum compliance if rule-

making is too prescriptive. But good progress is being made by farmers. In his farmer catchment group there has been a complete change of views on water issues over three or four years of activity through having the ability to break down the data and identify problems. The experience has been an education and it is important to continue the momentum. Agriculture Minister Damien O’Connor was to be part of a panel discussion but had Cabinet commitments after the Christchurch mosque shootings. So Ministry for Primary Industries domestic climate change manager Nicky Ablitt said this year is very busy with Government policy intervention. Five major consultations are planned across water quality, climate change and emissions, biodiversity and the Zero Carbon Bill. Consultation will be focused. Just two weeks at the start of May are planned for consultation on climate change, on a report to be released at the end of April so it is important farmers are ready for that. “The more input you have now the better we can do for you, rather than spending the next 10 to 15 years on tweaks.” Ablitt acknowledged farmers do a lot more practical work on the ground than people in Wellington, who do not always have that at front of mind. National Party climate change spokesman Todd Muller is negotiating with ministers on legislation plans and said farmers face the prospect of having to understand, document and measure their farm impacts on the environment as well as facing greater consumer demands over sustainable productivity, regardless of who is in government.

FOCUS: B+LNZ chairman Andrew Morrison says the industry has to remain productive but everything now has to have an environmental perspective.

National supports farmer efforts to increase the value of their product as world population and food demand grows. It will support changes as long as farmers are given access to broad international science and to technical solutions to practically solve problems. It will not support taxing the sector into oblivion or demands just that stock numbers be cut. Climate change measures will also need to be at the same pace as our trading partners. He rejected claims by a chunk of NZ the pace is not fast enough. NZ First MP Mark Patterson, a sheep and beef farmer, said the Zero Carbon Bill has to be a broad Parliamentary project so there will not be wild policy swings with changes of government.

B+LNZ chairman Andrew Morrison said the industry has to remain productive but everything now has to have an environmental perspective. Success will not rest on producing more so the value of exports has to be raised and that will be based on consumer demand. Chief executive Sam McIvor said climate change is one of the issues on which farming is being targeted in media campaigns. The group has formulated an environment strategy intended to be world-leading. A critical part of it was that every farmer should have an environmental plan and the success of the catchment groups is a sign of farmer support for these initiatives.

B+LNZ has extensively researched public attitudes to the industry, reviewing half-amillion social media posts, doing direct surveys of people and having consumer focus groups. That work found nine out of 10 people in NZ still regularly eat red meat and only 2% of social media comment about changing diets is about reducing meat consumption. B+LNZ policy and advocacy general manager Dave Harrison said the requirement for NZ farming to produce no more climate warming can be achieved by reducing methane emissions by between 10% and 22% by 2050. Methane makes up 48% of NZ’s greenhouse gases but is a shortlived flow gas, staying just 12 years in the atmosphere.


4

News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Big targets confront Fonterra’s leadership Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA’S challenged consumer and food service division will have to produce a substantial second half improvement for the co-operative to make its earnings goal this financial year. In the interim results presentation chief executive Miles Hurrell said he is confident consumer and food service will make $500 million earnings before interest and tax (EBIT) in the full financial year. To do so it will have to make more than 70% of the target, or $366m, in the second half. For consumer and food service the first half result was $134m, down $59m or 39% from the first half FY2018. For only the second time Hurrell released a detailed earnings guidance, with numbers for the two main operating divisions – ingredients and consumer-food service. It was in keeping with his vow for better disclosures and more accurate forecasting.

He did so for the first time during the full-year result presentation for FY2018 last September. At that time the predictions for FY2019 were a forecast earnings per share of 25c-35c, EBIT for ingredients of $850m-$950m and for consumer and food service $540m-$590m.

The earnings performance is clearly not where it should be.

Those numbers are now considered over-optimistic and were reduced in February to 15c-25c earnings a share, ingredients $750m-$850m and consumer and food service $475m-$525m. The actual achievements in the first half were $461m from the ingredients division and $134m from consumer and food service. For the whole company reported EBIT was $323m, up

284%, and reported net profit after tax $80m, up 123% from the reported loss of $348m this time last year. EBIT in the first half was only 25% of the full year target, which Hurrell is still confident Fonterra can achieve. First-half net profit was 5c/ share but the directors had already ruled out the payment of an interim dividend. The revised full-year net profit target is $240m-$400m, three to five times what was achieved in the first half. To provide context, Fonterra also announced a negative impact of $126m on the foreign currency translation reserve from the sale and devaluation effects of Venezuelan consumer joint venture Corporacion Inlaca. Ongoing political instability and a dire economic situation resulted in the sale to Mirona, an international food business, for $16m in cash. But the true impact on the profit and loss after currency conversion was minus $126m, to be booked in the full-year accounts.

TRIUMVERATE: Fonterra chief financial officer Marc Rivers, chairman John Monaghan and chief executive Miles Hurrell are pleased to be back in the black but hope for better second-half results to improve the interim ones.

Demand has slowed in Chinese food service because of higher prices and high in-market butter stocks. The sales volume was down 17% but the butter market has now corrected sharply and helped clear excess stocks. China Farms produced 15% less milk because of floods and reported a loss of $21m, the same as last year. Net debt at January 31 was $7.4b and the debt gearing was 52.5%, reflecting the higher opening debt and the demands of the milk production curve. Capital expenditure was reduced 9% to $316m and the tide is turning on operating expenditure, Hurrell said.

While Hurrell, chairman John Monaghan and chief financial officer Marc Rivers say it is pleasing to see Fonterra back in the black after suffering the 2018 full-year loss of $196m, the earnings performance is clearly not where it should be. The NZ ingredients division is performing well but its Australian equivalent was hit by drought, reduced milk volume, aggressive price competition and under-use of manufacturing assets. Consumer and food service is tracking behind last year because of disruptive political and economic conditions as well as high input costs in Latin America.

UP TO

5

P

YEARS

5H 0 2 5 3 1 S IE R E S G 6 R DEUTZ-FAH

E C N A M R O F R E P L E T LEV

NEX

AGRO CARE

WARRANTY

• Deutz TCD Tier 3A engine • No AdBlue required • Stop and Go function maximises control and minimises clutch usage • 6 speed Powershift ZF transmission gearbox gives a smoother ride • Carraro axle with all new front suspension ensures a great driving experience • Cabin suspension standard on all models • Available with 120 litre CCLS hydraulic pump • Demonstrators available throughout New Zealand Talk to your local dealer to discuss what the Deutz-Fahr 6G will do for your business.

flexible

FINANCE

FREE LOADE SION

FA948NZFW

EN ADAPTIVE FRONT SUSP

* Normal lending criteria and conditions apply. Contact your local dealership for more information. ** Conditions apply. Valid until 31/03/2019. Contact your local dealership for more information.

0800 801 888

|

d e u t z t r a c t o r s .c o .n z

|

deu tz n z

S L E D O M G 6 L L A N O R POWER AUTOSHIFTING 6 STAGE

SHIFT

*

options AVAILABLE *

**

NIC ENGINE

DEUTZ TIER 3 ELECTRO


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

5

First principles in strategy reset Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA is refocusing on the principles of co-operative farmer ownership, efficient milk collection and processing and exports of dairy ingredients for premium prices. The details of the strategy reset and sales of assets to raise $800 million for the balance sheet will be announced with the full-year financial results in September. Chairman John Monaghan was resolute and defensive when updating farmer-shareholders on the full review of business strategy during his presentation of the interim results. He said the co-operative’s job of picking up milk, processing and selling the products for the highest possible milk prices for farmers will never change. And he took issue with commentators and competitors who say Fonterra consistently pays too much for milk at the farmgate. “I am bemused by that criticism – our primary intention every day is to deliver the maximum milk price and that has not changed.” The review is not tinkering around the edges – there will be fundamental change to business strategies designed to secure the highest possible returns. “Where we can win in the world and the products where we have a real competitive advantage. “Premium prices will be earned from the co-operative heritage and provenance.” Chief executive Miles Hurrell said farmers want to see Fonterra extract the returns available from their milk’s unique qualities and the New Zealand story. Along with the 2019 interim results Fonterra said the third asset identified in the portfolio review was its half share in DFE Pharma, the joint venture with FrieslandCampina.

BACK TO BASICS: Fonterra chairman John Monaghan is refocusing on the principles of co-operative farmer ownership.

Deliver the maximum milk price; that has not changed. John Monaghan Fonterra DFE Pharma is one of the largest suppliers of pharmaceutical excipients, which are used as carriers in medicines such as tablets and powder inhalers. It employs 360 people and has a head office in Germany. Fonterra has told its partner it has begun a sales process but

1 ⁄3 1 ⁄3 1 ⁄3 DEPOSIT

IN 2020

IN 2021

also renewed the pharmaceutical grade lactose supply deal to Pharma from the Kapuni plant in Taranaki. Last financial year DFE Pharma had sales of $346m and EBIT of $100m. Fonterra’s leaders said they are confident the $800m debt reduction will be delivered this year from asset sales – Beingmate, Tip Top and DFE Pharma. The proceeds will be booked in the full-year accounts and result in the debt gearing ratio returning to 40-45%, they said. The strategic review of the Beingmate stake is now a financial matter of buy, sell or hold, chief financial officer Marc Rivers said. All commercial activities between Beingmate and Fonterra

have now ceased except the infant formula base powder supply agreement from Fonterra’s Darnum plant in Victoria. Fonterra is finding buyer interest in its 18.8% stake in Beingmate and the share price is rising, Rivers said. The Beingmate part-ownership is now valued by Fonterra at just over $200m but the market value is about $280m. Having been through the worst with Beingmate, it is now possible Fonterra might be convinced to stay as a cornerstone shareholder as the Chinese dairy company recovers. Tip Top has received strong interest from several parties interested in all of the NZ ice cream business, Hurrell said.

A NEW KING HAS ARRIVED The all new 2019 KingQuad 750 has arrived and is ready to work.

2.95% SZM0439 750R

KingQuad 750XPZL9 shown with alloy wheels.

INTEREST

TALK TO YOUR SUZUKI DEALER TODAY

Fonterra will announce any material transactions when they occur, as required by the stock exchange. Fonterra bought its 60% share of Corporacion Inlaca, Venezuela, in 2014, from Nestle for $1 and is now selling that share of the consumer business for $16m to Mirona. Inlaca was on Fonterra’s books as an asset but it was exposed to hyper-inflation in Venezuela, eroding value in NZ dollar terms. Therefore the impact would be negative $126m this financial year, Rivers said. The asset changes announced so far have been neutral (Darnum) or negative (Inlaca) for the balance sheet.

• 600kg towing capacity (up from 450kg) • New engine and transmission • Updated powersteering • Gas front shocks • More rigid frame • Updated rear suspension and braking system

WWW.SUZUKI.CO.NZ


RAV-05NOV-FW2

Stop slugs eating your profits Endure® slug bait

Check your paddocks for slugs before sowing your new crops and pastures. Endure slug bait controls slugs to get your investment off to the best start. • Non-toxic to earthworms or slug predators • Can be mixed and spread with fertiliser Order Endure to get the best return from your crops and pastures.

AVAILABLE IN A MINI BAIT FOR DRILLING WITH SEED

0800 100 123 ravensdown.co.nz Smarter farming for a better New Zealand®


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

7

Farmer vows to fight Yili deal Staff reporters HARIHARI farmer John Sullivan has vowed to fight the sale of Westland Milk to Chinese dairy giant Yili. “We have to fight,” he says, adding this generation of farmers owes it to their forefathers to retain ownership on the West Coast. While acknowledging five years of poor returns from the co-op mean 60% to 70% of supplier/ shareholders are finding it difficult, he says the answer is to appoint a new board and management, replacing those he holds responsible for the co-op’s financial problems. Shareholders will vote in July on the offer from Yili of $3.41 for each co-operative share. That will provide just over $245.5 million in cash from Asia’s biggest dairy business and cover the cooperative’s $342m in liabilities. It values the business at $588m. A lot of the cash will end up being paid to banks financing the region’s dairy farmers, Sullivan says. He attended Thursday’s Harihari meeting and says the mood was mixed but wasn’t helped by the absence of detail. Sullivan was also angry independent directors appear to be driving the sale. “Three independent directors, who are not shareholders, are dictating to farmers and that is not right.” He intends canvassing shareholders to resist the sale. Yili will at least match Fonterra’s farmgate milk price for the first 10 years of ownership, starting with the new season on August 1, boosting a payout that has averaged well below Fonterra’s in recent years. Westland chairman Peter Morrison says directors believe the Yili deal is the best outcome for shareholders and are unanimous in their support. Yili already operates the Oceania dairy product plant in South Canterbury. Federated Farmers Westland dairy section head Stu Bland

said there is no surprise in the outcome of Westland’s efforts to find new capital for the business. “We knew what the options were but it’s still really early days and we need time to digest what we’ve got.” The directors had three options: remaining a co-operative, finding a cornerstone shareholder or a complete sale. “We’ve got two options now. “We can stay the same and that still is an option or we can go for the buyout.” Bland, of Reefton, says the cooperative is important to him. “But if it can’t work and we can’t stand on our own two feet then probably we need to sell. There’s no use being a co-operative if you’re not profitable. That’s no good for us nor for the West Coast.” Maruia farmer Peter Brooker says after attending the Reefton meeting this week he believes the deal is fairest for all West Coast dairy farmers. “I think it provides certainty and security for all farmers on the coast.” Brooker farms in the Grey Valley area where farmers are being courted to shift supply to Fonterra and he fears that could mean those farming at either end of the coast, Karamea in the north and Harihari in the south, could be left without a company to supply. “The deal on the table, one of the key attributes is that it will pick up all the milk, which will give some certainty to those at the extremes.” Brooker says he will support the deal but it was difficult to assess the prevailing mood of the meeting. It appears the Westland factory is very similar to Yili’s South Canterbury plant, which makes the takeover a good fit, Brooker says. While it will be the end of the co-operative, change is needed to address Westland’s debt, which he attributes to some poor board decisions. Southern Pastures, Westland’s largest shareholder with more than four million shares, is yet

Plan winter grazing to protect animals, waterways and reduce damage to soils by:

TOP CHOICE: Westland chairman Peter Morrison says directors believe the Yili deal is the best outcome for shareholders and are unanimous in their support.

to decide its response. Chief executive Prem Maan said his co-investors are keeping an open mind while waiting for more details. The nine Canterbury farms of Southern Pastures switched supply to Westland from Fonterra at the beginning of this season. The dairy investment company would have bought into Westland for about $6m and could receive over $13m from Yili’s offer. Pamu (Landcorp) is another big shareholder and spokesman Simon King says it will carefully assess what is in the best interests of Westland and dairy farming on the West Coast before voting. Morrison says that under the deal a supplier committee consisting of five representatives from Westland’s existing suppliers and five from Westland under new ownership, will be set-up to maintain communications and transparency. The deal needs a 75% yes vote from the votes cast and at least 50% of all shareholders entitled to

vote, Morrison said. But Yili can pull out if Westland loses more than 10% of its suppliers.

High Court and Overseas Investment Office approvals are needed.

Fonterra had talks with Westland FONTERRA is concerned to see the potential demise of Westland Milk, another dairy co-operative, Fonterra chairman John Monaghan says. Any West Coast or Canterbury dairy farmers who want to switch supply will be welcomed by Fonterra, he said. He noted the 10-year Fonterra-equivalent milk price benchmark and commitment by Westland’s proposed buyer, Inner Mongolia Yili. “Ten years goes very quickly in an inter-generational business. “What happens beyond that

becomes important when you consider our remit is to bring profits back to New Zealand. “Nearly 50c in every dollar is spent in the regions and has benefits for the NZ economy.” Fonterra had an early discussion with Westland about finding a co-operative solution to its difficulties but that wasn’t proceeded with as Westland went in another direction. Asked if he was concerned about further Chinese ownership in the NZ dairy industry, Monaghan said he welcomes foreign investment.

1

Place troughs and supplements to keep animals away from waterways and critical source areas (CSA)

2

Plan fencing, back fencing, and grazing to keep livestock away from waterways and to protect CSA’s

3 4

Put a back-up plan in place for periods of heavy rain Provide clean water, shelter and suitable loafing areas for livestock

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


8

News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Formula sales to lift Synlait Alan Williams alan.williams@globalhq.co.nz SYNLAIT Milk expects to boost operating margins in second-half trading as greater amounts of canned infant formula are sold. Sales in the six months to January 31 increased 5% to 17,684 tonnes, compared to a year earlier, but chief executive Leon Clement indicated sales of the flagship product to July 31 could be in the 22,000 to 27,000 tonnes range, making a full-year total of up to 45,000 tonnes. The first-half was influenced by a bigger increase in sales of lowermargin ingredient powders and creams, up 26% to 56,116 tonnes. That resulted in the reduction in after-tax profit to $37.3 million for the January trading period from $41.3m a year earlier. The shares fell $1.49 to $9.80 in early reaction on the NZX. A new pricing agreement with A2 Milk Co was also a factor in the lower margins as was a fall in higher-margin sales to customers in China. Revenue rose to $471m from $439m and the Ebit operating profit fell to $56.4m from $62m. “Margins per tonne will increase as we sell more infant formula as a proportion of overall sales,” chief financial officer Nigel Greenwood said. Clement said full-year profit growth is expected though the

gains might not be quite as strong as achieved in the same period last year. As a guide to its recent growth path, Synlait’s half-year profit was only $2m lower than the full-year 2017 figure. Synlait’s production for A2 is registered for China but Clement said some other registration for infant formula imports is taking longer to achieve than expected but is expected this year. The dairy processor also spent heavily on expansion during the period with $200m on four major projects, notably the new plant at Pokeno and the new liquid-dairy packaging plant at Dunsandel. The projects are both on track and the company is confident of good Waikato supply levels for the Pokeno plant though Clement and chairman Graeme Milne did not give a figure for the likely number of Waikato suppliers. Clement said 12% more milk was processed at Dunsandel during the first-half than at the same time a year earlier, off the same capital base, highlighting efficiency improvements. The company has just completed an $18m expansion to the high-value, high-quality lactoferrin plant at Dunsandel and is already seeing increased demand. First-half sales were six tonnes, out of seven tonnes produced, at a gross margin of nearly $398,000 a tonne. The expansion will allow

GOING WELL: Synlait’s expansion projects are on track, chief executive Leon Clement says.

Margins per tonne will increase as we sell more infant formula as a proportion of overall sales. Nigel Greenwood Synlait 20 tonnes to be produced in the second-half, most of which will be sold, also helping overall margins, Greenwood said. One multi-national customer will buy about half the group’s capacity and Synlait will use up to two tonnes in its own manufacturing. Lactoferrin prices have risen dramatically in the last 18 months but he warned they can be volatile. The group is in the process of commissioning the $125m liquid dairy packaging plant at Dunsandel and will be testing production in April for

cornerstone customer Foodstuffs South Island. Clement and Milne are excited about the potential for the plant, based on discussions with current and prospective customers. Planning also includes a range of other products – UHT cream, drinking yoghurt, beverages and ready-to-drink infant formula – being made and packed. Synlait is looking for China import registration for them but multiple markets will be targeted. Progress is also being made with the Talbot Forest Cheese business in South Canterbury, which will help optimise manufacturing assets, especially during peak seasonal milk flow periods. Full settlement of the $35m to $40m deal is expected on August 1. The expansion projects have increased Synlait’s debt position, to net borrowings of $287m out of total assets of $1.05 billion at January 31 and Greenwood said that is expected to rise to $320m to $340m by July 31. That is comfortably within the group’s leverage ratios and the

company will not need to raise capital but nor are dividends being planned. The extra debt also covers a higher inventory level at half-year balance date, up to $234.8m from $170m a year earlier but it will be sold-down in the second-half as infant formula sales increase. That also affects operating cashflows, down to $31.4m in the first-half from nearly $75m previously. First-half cashflows are usually lighter and will recover well in the second-half. Milne and Clement confirmed Synlait’s push for environmental advances, with more than 60 farmers now accredited to the Lead With Pride programme, which is now supplying 17% of total milk volume. The programme also rewards farmers achieving greenhouse gas emission targets. Reductions in water consumption and nitrogen loss on-farm are also being sought and Synlait is also investigating methane reduction with a pilot on-farm inhibitor planned later this year.

PMG DIRECT OFFICE FUND

LATEST OFFER

Investing is a journey, at PMG it looks a lot like this... Projected Return

6.7%

projected cash distribution (p.a.)¹ paid monthly

PMG's latest Offer is for the acquisition of high quality office properties, the Kiwibank building/12 Alma Street in Hamilton, and 65B Main Highway in Ellerslie, Auckland.

Investment Snapshot2

$81m Total portfolio value

7 Properties

Achieve regular and reliable returns from commercial property

96.5%

39%

Occupancy

Loan to value ratio (LVR)

¹Projected gross cash distribution return is indicative only. The target return is net of expenses and fees, but pre-tax. ²The Investment Snapshot assumes the successful completion of the Offer and acquisition of the Hamilton and Auckland properties Prospective investors are recommended to seek professional advice from an Authorised Financial Adviser who takes into account their personal circumstances. The PMG business development and sales team do not provide personalised advice; however, they will make available adviser disclosure statements and product disclosure statements on request and free of charge. The offer is open for a limited time.

Minimum Investment 10,000 units at $1.12 per unit ($11,200)

PMG Direct Office Fund is issuing 18,000,000 new units at $1.12 per unit. From as little as $11,200, investors can enjoy a share of seven quality office properties, returning a projected monthly distribution of 7.50 cents per unit (or 6.7% p.a.) for the full financial year to 31 March 2020 (assuming successful completion of the offer).

Visit www.propertymgr.co.nz to download the Product Disclosure Statement and find out why Direct Office Fund has been rated 'AA' by NZX-owned research house, FundSource.

www.propertymgr.co.nz Ph: 0800 219 476


One spread, two seasons. Job done.

WAVE24721 390X265R

Growth when you need it most PhaSedN has two nutrients in one chip. SustaiN boosts growth in Autumn, while fine elemental sulphur ensures a strong start to Spring, so you can make the most of your time. ballance.co.nz l 0800 222 090


News

10 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

$2 levy for beef’s M bovis response Alan Williams alan.williams@globalhq.co.nz BEEF farmers look set for a $2 a head levy to pay for the Mycoplasma bovis eradication programme. The levy will be a shortterm measure, Beef + Lamb chairman Andrew Morrison told the annual meeting in Timaru. Consultation will begin soon on raising the beef producer biosecurity levy from 45c a head. The levy will not apply to cull dairy cows because dairy farmers will pay their share to DairyNZ. Dairy farmers will pay the biggest part of the industry component of the costs and Morrison said he recognises it will impose a significant financial burden on many dairy farmers. The Government is paying 68% of the programme costs, leaving 32% to be met by

farmers – dairy farmers will pay 94% of it and beef farmers 6%. The dairy-beef split was adopted after a recommendation from an independent panel set up by B+LNZ and DairyNZ. It was unchartered territory for both groups, Morrison said. “This was the first time that there had been an industry contribution to a biosecurity incursion under the Government Industry Agreement for Biosecurity and it won’t be the last and it was important we got it right.” M Bovis does not affect beef trade so the main consideration for the panel was the impact on production and the scale of each sector. “The fact is that M bovis does not have much of an impact on beef production. We agreed to the eradication programme in support of dairy farmers, whose production would be significantly affected over time.”

WE HAVE YOU COVERED

FOR ALL OF YOUR ON-FARM FUEL NEEDS FUEL / LUBRICANTS / STORAGE / ON-FARM SUPPLIES TALK TO US TODAY

Don Joseph

Sarah Wells

FUEL SALES MANAGER

FUEL ACCOUNT MANAGER

027 839 7351

027 360 9535

0800 787 256 RURALCO.CO.NZ

Brexit debacle sparks disbelief Nigel Stirling nigel.g.stirling@gmail.com EXPORTERS are watching in disbelief as the clock counts down to Britain’s scheduled departure from the European Union at the end of this week. As Farmers Weekly went to press on Friday the British Prime Minister Theresa May was pressing her case with European leaders to push the departure date out to the end of June. But any extension depends on May getting backing for her withdrawal agreement negotiated with the EU last year and twice since rejected by British MPs. Without support from MPs for the deal – which includes a 21-month transition period for the United Kingdom and the EU to negotiate future trading terms – the UK could be out of the EU by noon on Saturday NZ time.

A vote in the House of Commons is expected on Tuesday but even that is uncertain after the Speaker of the House John Bercow last week blocked May from bringing the deal back to MPs for a third vote without substantial changes. Beef + Lamb’s policy and advocacy general manager Dave Harrison had been confident the UK would leave with a transition period in place during which it would continue to trade with the EU on current terms but now he’s not so sure. “It is in no-one’s interests and would be hugely damaging but there is a risk that they will sleepwalk into it because of a lack of a willingness to compromise.” The Government’s agricultural trade envoy Mike Petersen was still confident last week May will get the backing she needs given the potential for economic mayhem should the UK leave without a deal. However, if she fails and the UK leaves without a deal there will be fallout for exporters here. “There is real risk for the sheep meat market if the UK can’t export to the EU and they have 75,000 tonnes of sheep meat accumulate in the UK market that would normally go to Europe then that is problematic.” Meat industry Brexit representative in London Jeff Grant said assurances from British border officials they are Brexitready make him more confident NZ exporters will not face significant delays at ports during the crucial delivery period for the Easter chilled market. Furthermore, that meat enters through ports such as Southampton, which receive just 3% of cargoes from the EU and are unlikely to experience the same bottlenecks as the port closest to the continent at Dover, which gets 10,000 trucks a day from the EU

FALLOUT: If Britain leaves the European Union without a deal there will be real risk for sheep meat exporters and some dairy tariffs will increase, agricultural trade envoy Mike Petersen says.

and faces being overwhelmed by new documentation and border checks. “That is less of a concern now but still a risk. The problem with these things is that nobody knows until they are fully tested.” A no-deal Brexit on March 29 also means carving up of quotas for agricultural imports into the EU from countries outside the EU will take effect immediately. Dairy Companies Association chairman Malcolm Bailey said the UK recently published tariff rates to apply for its share of those quotas. Not only do NZ exporters face having their quota to the UK cut back, the latest proposals show tariffs on some products such as cheese will increase. However, the ¤1188 a tonne tariff on skim milk powder will be eliminated. While scrapping the tariff is positive, exporters will keep the champagne on ice, Bailey said. Because the UK labelled the tariffs as temporary exporters risk ramping up supply only to have the rug pulled on them at some future date.

GDP pressure on RBNZ THE Reserve Bank will find it harder to shy away from weaker global market sentiment and its more dovish global counterparts, ANZ Bank FX/ rates strategist Sandeep Parekh says. That follows a 0.6% GDP figure for the December quarter compared to the RBNZ’s forecast of 0.8%. The actual figure was 0.55%, which was rounded up, Parekh said. The figures will be a bit concerning for the central bank which has an MPS due on Wednesday. “It’s hard to say what way they will lean. Till now they’ve stuck to 50/50 for an OCR rise

or cut and saying the economy is balanced.” ANZ believes weaker figures are to come and the dollar will fall to US$0.61 by year-end. The kiwi rose briefly on Thursday when the US Fed moved to onhold in its interest rate path but gave the gains back. Markets believe there is a 70% chance of an OCR cut in November, up from 50% a month ago and an 80% chance of a February cut, Parekh said. The US dollar has become the carry currency for investors. “The US has higher rates, the Fed is on-hold and NZ faces uncertainties. Where would you rather be?” – Alan Williams


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

11

Feds backs new gun ownership measures Neal Wallace neal.wallace@globalhq.co.nz NEW gun laws being rushed through Parliament will still respect law-abiding, responsible gun owners, Federated Farmers security spokesman Miles Anderson says. Responding to the killing of 50 worshippers and the wounding of a further 48 by a lone shooter at two Christchurch mosques the Government has introduced laws banning military style semiautomatics and assault rifles, reclassified other weapons and will implement a buyback scheme at an estimated cost of up to $200m. Three South Island meat companies closed or scaled back processing last week to allow staff to mourn those killed in the shooting and attend funerals. Alliance, Silver Fern Farms and Anzco joined the rest of the country in expressing sympathy to friends, family and the Muslim community as they scaled back operations at southern works. On Thursday the Government announced the reclassification of two types of semi-automatics to include them in a ban on firearms with a detachable magazine holding more than five rounds or, in the case of a shotgun, a magazine capable of holding more than five cartridges. Semi-automatic .22 calibre rimfire rifles with up to 10-shot magazine and semi-automatic and pump action shotguns with a non-detachable tubular magazine holding up to five cartridges will still be permitted. Anderson says the shootings March 15 changed everything and the federation agrees with the Government there is no need for military-style semi-automatic rifles on farms. “We’re pleased farmers are still going to have access to sporting semi-automatic rimfire rifles, such as the .22 long rifle, and sporting semiautomatic shotguns with limited magazine capacity.” They are needed for control of small, mobile pests such as rabbits, possums and Canada geese where quick follow-up shots are required while larger calibre semi-automatic firearms are required by professional cullers but access needs to be tightly managed, he says. On Thursday a nationwide petition was accepted by politicians with 70,000 signatures from people seeking tighter gun laws. However, the proposed changes do not go as far as the Australian response to the 1996 Port Arthur massacre according to Dr Samara McPhedran, the director of the Homicide Research Unit at Griffith University. Following that mass shooting in which 35 people were killed and 23 wounded Australia banned all semi-automatic firearms including pump-action shotguns. “In contrast, Australia essentially banned all semi-automatic firearms, both sporting configuration and military configuration. Australia also banned pump-action shotguns. “New Zealand’s changes do not go anywhere near that far,” she says. SFF was doubly affected by the disaster when a slaughterman who worked at its Finegand plant was killed in a road crash on Wednesday morning while return south after mourning a relative killed in the Christchurch shooting. Chief executive Simon Limmer says the man’s death north of Palmerston was especially tough on staff at Finegand where operations ceased on Wednesday with community leaders and counsellors brought in to support staff. Processing was also halted on Friday and over the weekend at Finegand, Pareora, Belfast and Waitane plants for staff to mourn the Christchurch deaths and attend funerals. “We are arranging bus transport for the staff and their families affected by the tragedy to get up to Christchurch from our South Island sites who are attending the funerals and services this weekend,” Limmer says.

Alliance also cut back capacity at its Lorneville, Mataura and Pukeuri plants on Wednesday, Thursday and Friday. Chief executive David Surveyor said Alliance gave red meat to the Christchurch Victims Organising Committee, which is supporting the families. Anzco chief executive Peter Conley says with employees attending funerals, the company either reduced shifts or stopped processing at its Canterbury sites. All companies have worked with farmers to accommodate the disruption to processing.

HELPING: Silver Fern Farms organised buses to get staff from its plants to Christchurch to attend funerals and services, chief executive Simon Limmer says.

2019 N Z

TOU R


News

12 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Zespri China sales still growing Richard Rennie in China WITH this season’s kiwifruit poised for harvest Zespri’s China office has been gearing up for another year of strong growth, particularly for the SunGold variety. The popularity of Zespri kiwifruit has contributed to kiwifruit now claiming a spot among the top five most popular fruit in China’s largest cities. Zespri’s China corporate affairs manager Ivan Kinsella said expectations for this season are for the Chinese mainland market to take almost 30 million trays of fruit, with 20m of them Gold. The total includes about 8% sourced from Zespri’s Italian growers, allowing Zespri to provide 12-month supply to maintain shelf space in top retailers during the New Zealand offseason. The total amount means China will account for 15% of the company’s market sales and expectations are for the 20m Gold kiwifruit volume to grow rapidly as new Gold orchards come into production over the next few years. Kinsella, who is ending his first year in the role, said the marketing company is now starting to see the benefits accrued from major changes it implemented after the imprisonment of its former importer in 2011. A key shift was Zespri becoming the importer of record in 2016, effectively guaranteeing Zespri complete control of the supply chain from Tauranga to distributors and key accounts in China. In 2018 Zespri took a further move to take more control over the supply chain when it set up coolstores in three regional ports supplying key accounts. The moves resulted in Zespri’s China team expanding to 65 staff to manage the customs,

quarantine and distribution issues along with customer relations, working directly with key customers “But it has delivered a lot more for us on a number of levels. “We now enjoy much closer links with our distributors with joint business planning. We are also much closer to our key accounts and main customers, all of which creates greater value for our growers” Kinsella said.

We now enjoy much closer links with our distributors with joint business planning. We are also much closer to our key accounts and main customers, all of which creates greater value for our growers. Ivan Kinsella Zespri The move has also significantly shortened delivery times from a week to as a little as four hours across the wharves. The marketing company has identified four key accounts that include high turnover, large scale fruit retail and e-commerce operations. They receive priority attention and can pick fruit size and delivery dates. They also work with Zespri on joint year-round marketing and promotion plans. “At present these four account for 20% of our business and it is quite likely we will see more join their ranks as other companies’ sales grow.” In a market that can be suspicious about wholesale pricing, all four companies appreciate the transparency and

price leveling their membership as key accounts brings. As Chinese consumers move up the value chain in their purchases Kinsella appreciates the irony of selling a premium fruit back to its source nation. “It is a fruit Chinese identify well with, they are familiar with it and the SunGold variety is proving to tick all the boxes. It’s very healthy, has a great taste profile and a colour that consumers love.” The move by Chinese urban consumers to seek out food that is healthy is also playing well into Zespri’s campaigns around encouraging parents to let their children snack on a healthy piece of fruit. Sales in Shanghai are proving particularly strong in higher end supermarkets like Ole’ and City Shop, a chain owned by Fruit Day, a Zespri key account, where an eight pack of SunGold will sell for 128yuan or NZ$3.50 a fruit. While SunGold is popular for its sweetness and as a ready-toeat snacking fruit, Green’s appeal tends to lie with urban fitness seekers who buy it for its high vitamin C, healthy perception and lower price. Kinsella acknowledged the continuing delay over the muchpromised Red kiwifruit that has had positive consumer response taste trials in Singapore and New Zealand. “The issue is not around the fruit’s taste but around its shelf life, which we are still working on to try to improve. We will be announcing a decision in October on when we will be launching Red” The company has also recently started using brand campaigns adopting the Chinese characters that spell Zespri, which is pronounced Jiapei. “This will help with the uptake among Chinese consumers who struggle to pronounce Zespri with three consonants all together. “We are using it more and more

SALES: Zespri corporate affairs manager in China Ivan Kinsella and city store division manager Wang Jing in Shanghai.

in our advertising – if consumers can pronounce it comfortably and experience the fruit, it’s all part of educating them about a quality brand and their loyalty

in the future will increase.” Richard Rennie’s China trip was partly funded by the Asia-New Zealand Foundation

YOU’RE INVITED

Kimbolton Sculpture Festival Saturday April 6

SCULPTURE DISPLAY VOTE FOR THE PEOPLE’S CHOICE RURAL SCULPTURE LIVE MUSIC LOCAL FOOD ARTISAN STALLHOLDERS FINE ART DISPLAY

Experience art in the country. A family focused fun day.

QUILTERS AND CRAFTERS DEMONSTRATIONS OF BLACKSMITHING, ART CREATION, WOODWORKING

FE S T I VA L P A R T NE R :

CHILDREN’S INTERACTIVE EVENTS

Admission: Adults $5 Children free www.ruralart.nz

VINTAGE CAR RIDES VINTAGE FARM MACHINERY

www.ruralart.nz  facebook.com/ruralartNZ


02165_MSD_SPV_3

Well, if it’s not one thing...

...it’s another.

CONTROL THE RISK OF TOXOPLASMA

CONTROL THE RISK OF CAMPYLOBACTER

CONTROL THE RISK OF SALMONELLA

CONTROL HOW YOU INCREASE LAMB NUMBERS

For nearly 80 years, MSD have been developing sheep vaccines for New Zealand farmers. We have a complete range of vaccines to help you improve flock performance – including vaccines that help protect against losses from Toxoplasma, Campylobacter, Salmonella, and that are proven to increase the number of lambs born to ewes. They’re all made by us. And we’ve developed them here in New Zealand, for New Zealand. So, if you’ve ever wondered why there are so many sheep in New Zealand, now you know our vaccines are part of the reason. Talk to your vet about MSD sheep performance vaccines.

MADE FOR NEW ZEALAND. AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No’s: A4769, A9535, A7886, A9927. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz NZ/SPV/1217/0010 © 2018 Intervet International B.V. All Rights Reserved.


News

14 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019 Sector shares 2017-18

2018-19e

Growth

Dairy

$16.66b

$17.57b

5.5%

Meat + Wool

$9.54b

$10.11b

6%

Forestry

$6.38b

$6.83b

7%

Horticulture

$5.4b

$6.2b

15.8%

Seafood

$1.77b

$1.88b

5.8%

Arable

$243m

$235m

-3.2%

Others

$2.70b

$2.80b

3.5%

Total

$42.68b

$45.64b

6.9%

Primary sector’s exports power on Hugh Stringleman hugh.stringleman@globalhq.co.nz HORTICULTURAL products, particularly kiwifruit, are the brightest part of a very optimistic outlook for New Zealand’s export earnings from the primary sector. The Ministry for Primary Industries’ latest Situation and Outlook for Primary Industries (SOPI) report, for the end-March quarter, paints

ONE SOURCE FOR PASTURE SOLUTIONS THAT DELIVER.

Your Farm Source team understand how important the right pasture renewal programme is for driving productivity on farm. With the support of specialist partners, your local TSR can help you get the best out of your pasture this season.

Talk to your TSR or visit us in-store or online today. NZFARMSOURCE.CO.NZ/STORE

0800 731 266

a rosy picture of export revenue in the 2018-19 financial year. It predicts the sector will earn $45.6 billion, up nearly 7% from the previous financial year. The lift will come half-and-half from volume and value, assisted by a 2c fall in the value of the NZ dollar against the United States dollar. Moreover, export revenue soared in 2017-18, up 12%, so that in just 24 months SOPI predicts the country will go from $38b to $45b annually, an 18% increase. The biggest gainer over that period will be dairying, up $2b last financial year and another nearly $1b this year. SOPI predicts dairying will earn $17.5b this year, up 5.5% and just under 40% of the whole. It bases that prediction on $6.41/kg milksolids at the farmgate, including dividend, and a 3.7% increase in milk production. In the six months to December 31 China took 30% more whole milk powder by volume than in the previous corresponding period. But horticultural industries have the fastest growth rates and collectively are forecast to earn $6.2b this financial year, up 15% or just under $1b. Within that kiwifruit revenue is forecast to jump 33% to $2.2b, which is about one-third of horticultural revenue. David Parker SOPI said the apple and pear industry is harvesting an export volume of about 400,000 tonnes this autumn and with strong prices its revenue should grow 11.5% to $830m. Wine export revenue is forecast to rise 4% to $1.8b, the US being the biggest market followed by the United Kingdom, Europe and Canada. Canadian sales are forecast to grow because of the Comprehensive and Progressive Trans Pacific Partnership. Meat and wool are forecast to grow by 6% this financial year, up about $570m to $10.1b. Strong international demand for lamb and beef, especially from China, cannot be satisfied by weaker production from flood-hit Australia and relatively flat supply from here. Forestry exports are predicted to grow by 7% this financial year to $6.83b, of which logs account for $3.6b. Sawn timber and pulp follow with about $900m each and paper and panels are about $500m each. Seafood exports are forecast to grow 5.8% to $1.9b, of which wild capture fisheries will contribute $1.44b and aquaculture $440m. The arable industry is the only one to suffer a fall in export revenue, down 3.2% to $235m as a result of a difficult growing season for small seeds in 2018. Financial advantages are beginning to flow from the ratification of the CPTPP with Japan’s payments for NZ beef being the first to lift. Trade and Export Growth Minister David Parker said Japan’s NZ beef imports rose in January threefold from a year earlier. The CPTPP cut the tariff from 38.5% to 26.9%, which gives parity with Australia. Butter exports to Canada jumped from 245 tonnes in January 2018 to 1606t this January and the share of our butter exports to three new trading countries under CPTPP, Japan, Canada and Mexico, had almost doubled. CPTPP is also in effect for existing free-trade partners Australia, Singapore and Vietnam. Chile, Brunei, Malaysia and Peru had yet to ratify the agreement. Our two-way trade with the combined CPTPP countries was $49.6b in the December 2018 year, almost a third of our total two-way trade.


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

15

UK lamb tariffs ‘won’t happen’ Alan Williams alan.williams@globalhq.co.nz

UNCHARTED: No one, including the British government, knows what the British government will do post-Brexit, farmer and GIRA consultancy boss Richard Brown says.

The United Kingdom government are free-traders so no tariffs but maybe some talk about the quota allocation. Richard Brown Gira such as North America, the Middle East, China and elsewhere in Asia, chasing the best commercial returns, mean the actual supply into the Euro zone is well-short of the quota levels. Burtt would not give the shortfall detail but said when EU

people complain about the size of the quota “we can say over a drink that we could drop the prices to make sure we fill it, are you sure that is what you want?”. Brown said the African swine fever outbreak in China’s pigs, striking at the massive pork market there, provides major opportunities for world producers of beef and lamb this year and through next year and 2021. The shortfall in domestic pork production will be substantial. Gira estimates it at 6% and others at up to 20%. There is plenty of pork in the United States, Brazil and Europe so China will “draw that in like a vacuum pump”. However, China consumes 55 million tonnes of pork a year and if that fall by even just 1% or 2% that is a huge gap to fill and other

meats and proteins will be in demand. There will also be a demand hit on pork because of the swine fever. Chicken is already the obvious replacement for some of that demand and well-priced to make major gains but more lamb, mutton and beef will be imported. Gira has been neutral on the price outlook for beef and lamb but that view is clearly too conservative now. The Chinese government will make sure the pork industry recovers and the retail price will remain under control because it is politically crucial, Brown said. Industrialised pig farming has become bigger than small, backyard farming in the last 20 years and the government

will ensure it increases further to improve health and safety practices. Demand for beef and lamb is increasing, on very low volumes compared to pork, but in a more affluent part of the market and the government does not have a concern on price, as it does for pork. China is the world’s biggest sheep meat market and has shown before it can increase domestic production when prices are high but, as well as not being politically sensitive, there is not a lot of grassland for expansion. Brown said Gira is very positive on the global outlook for beef because it has a broader market than lamb but one issue is how much buffalo beef will be sold out of India.

Keen to control the risk of Campylobacter? You’ve still got time, but it’s ticking... Remember, it’s not just maiden ewes at risk of campylobacteriosis. Your mixed age ewes are still at risk and need a booster shot of Campyvax4® every year. So when you’re thinking about vaccinating against abortion storms, be sure all your ewes are protected ahead of time, with Campyvax4. Order yours from your vet today.

MADE FOR NEW ZEALAND. CONTROL THE RISK OF CAMPYLOBACTER AVAILABLE ONLY UNDER VETERINARY AUTHORISATION. ACVM No: A9535. Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz NZ/SPV/1217/0010a © 2018 Intervet International B.V. All Rights Reserved.

02165_MSD_RN_2

BRITAIN won’t put tariffs on New Zealand lamb imports to protect its own industry against Brexit woes, European marketing consultant Richard Brown says. “It won’t happen.” Brown, an English sheep farmer also runs the global livestock consultancy Gira in Switzerland, which provides research and advice for Beef + Lamb NZ and the Meat Industry Association. He is surprised the possibility is being talked about in NZ. “The United Kingdom government are free-traders so no tariffs but maybe some talk about the quota allocation.” Outside of that, no-one knows what is going to happen, not even the government. There is a possibility the European Union puts tariffs on lamb from the UK in a post-Brexit world but no-one knows the answer to that either. Up to 97% of UK lamb exports go to continental Europe. If tariffs are imposed by the EU there will be a short-term, severe price reaction and a very painful time for UK farmers. Brown said the country will be hoping the Chinese and Hong Kong markets will open up for significant amounts of lamb if the EU trade is hit and beyond that elsewhere in Asia. He believes the region is strong enough, with rapid growth in middle-class affluence, to handle extended volumes of lamb without hurting prices for existing exporters such as NZ. There are concerns in NZ about the sheep meat quota arrangements when the EU and UK bloc is split. However, B+LNZ chief economist Andrew Burtt is reasonably sanguine, saying the quota is an opportunity rather than an obligation for NZ. Diversification into markets


News

16 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Stock agents’ role probed again Tim Fulton timfulton050@gmail.com LIVESTOCK agents’ duty to employer and client is again being contested in the High Court. South Otago farmer Stephen Brook is suing Rural Livestock for breach of contract over his dealings with a company agent. Brook, an owner and director of Selwyn Pastures is seeking damages from Rural Livestock in an action in the High Court at Christchurch. A statement of claim indicates a claim shows Selwyn Pastures seeking more than $1m plus GST. The claimed amount changed regularly during the hearing and was complicated by the need to recalculate interest payments, even after the parties had agreed to withdraw aspects of the claim. After the first week of argument, while evidence was still before the court, neither party was able to confirm the money at stake. The hearing is scheduled to resume for closing arguments on March 27. Broadly, Rural Livestock argues it cannot be liable for transactions involving an agent who acted improperly without the employer’s knowledge. It also argues clients have a reasonable responsibility to inform themselves about their stock transactions as they occur. The nature of the claim is similar to one by another South Otago farmer, Ross Clark, another

former client of former Rural agent John Williams. A judgment of the Clark claim in mid 2018 is yet to be released. In the Selwyn Pastures breach of contract claim, heard over a week in mid-March, Brook argued that between September 2014 and June 2016 Selwyn and Rural Livestock entered into a number of agreements for Selwyn to buy and deliver several hundred cattle at various prices. Those stock purchase agreements were allegedly partly oral discussions between Brook and Williams and partly in writing in the form of invoices sent to Selwyn by Rural. Selwyn claims costs for Rural’s alleged failure, through its agent, to return stock leased to six individuals or corporate farming groups, for calves grazed by exRural agent Dick Sharpin, as well as unpaid lease income. Sharpin was a joint shareholder in a company with Williams at the time of Selwyn’s contested transaction. Rural has also been asked to compensate Selwyn for allegedly failing to follow instructions on the sale price of more than 60 calves, alleged failure to deliver and credit Selwyn for 30 bulls and for allegedly incorrectly invoicing for 38 yearling heifers. Invoicing mistakes were also allegedly made for more than 30 yearling bulls. The claim extended to a demand for unpaid credit notes, unpaid

DISPUTE: A second farmer is claiming damages from Rural Livestock over transactions involving cattle.

grazing fees for just over 100 mixed-sex and mixed-age cattle. Rural Livestock admitted a number of failures to deliver or pay Selwyn for particular, individual stock but rejected a claim it should be responsible for deals by its agent, Williams. Rural said Williams entered into the contested deals without its knowledge and acted outside his permitted authority as an employee. Rural argued it was not bound by contract or obligation or liable

for “any transaction entered into without RLL’s knowledge or actual and/or implied authority; and … in excess of any relevant authority of the individual stock agent concerned; and … SPL either was aware of that or in all the circumstances reasonably ought to have been aware of that”. Rural argued Selwyn had a responsibility to “take its own reasonable steps to identify, know the details of, safeguard and/or care for its own property, including keeping reasonable

records in respect of its livestock”. The South Island livestock firm argued Selwyn should also have had a reasonable degree of control and/or visibility of business being done on its behalf. Rural argued Selwyn should have taken its own steps to ensure that Nait records had been completed for stock movements on or off its own farm property and independently made reasonable inquiries and/ or obtain reasonable assurance as to the existence, whereabouts, condition and contractual circumstances of its stock held off-farm. Rural argued Selwyn failed to meet such responsibilities “thereby making itself wholly or partly at fault for its claimed damage or loss”. Consequently, Selwyn could recover only such damages from Rural as the court considered “just and equitable in all the circumstances”. The argument is significant in the wider livestock industry as the New Zealand Stock and Station Agent’s Association representing the country’s biggest rural services firms considers a form of selfregulation in response to criticism of agents, including Williams. In this hearing, unlike last year’s Clark case, neither party called evidence from Williams, who is the subject of an investigation by the Serious Fraud Office in response to a complaint by Rural.

SFO slowness frustrates farmers Nigel Stirling nigel.g.stirling@gmail.com FRUSTRATION is mounting at the length of time being taken to wrap up a Serious Fraud Office investigation into the conduct of a former Otago livestock agent.

The office started looking into livestock transactions involving former Rural Livestock agent John Williams after a complaint from his former employer in August 2016. In a December 2017 email to farmers involved in the transactions SFO investigator Matthew Preece said the investigation was largely completed.

Stay Farmstrong Lock in a break

Farmstrong is a rural wellbeing programme sharing farmer-tofarmer tips and advice.

While I love what I do, taking regular breaks helps me get through the tough days. Sam Whitelock Farmstrong Ambassador

To find out what else could work for you, visit farmstrong.co.nz

THWARTED: A long-winded Serious Fraud Office investigation is holding up work Federated Farmers wants to do to drive out unscrupulous agents, Otago president Simon Davies says.

It had involved a trawl of financial information, physical movements of livestock, and Nait and LIC records. Preece said a summary report in early 2018 would be prepared and forwarded to the SFO’s directorgeneral Julie Read, who would then decide whether to pursue a prosecution. However, an SFO spokesman said the investigation is ongoing but couldn’t comment why it is dragging on. Nor could he say whether it had

been widened to include other individuals. “The SFO does not disclose the details of ongoing investigations.” It is understood staff redeployments might be at least partly to blame with Preece having handed over the file to another SFO investigator last year. Federated Farmers Otago president Simon Davies said that isn’t good enough. The delays were thwarting work the farmer organisation wants to do to come up with a set of

regulations it believes are required to chase unscrupulous agents out of the industry. “We believe there have been a number of questionable activities with some stock and station agents and that particular case highlights a number of them. “Out of the SFO investigation we were hoping to get some recommendations or suggestions from the SFO, which would indicate a direction that perhaps the Government or certainly the stock and station agents themselves might consider progressing in an effort to stamp out some of these behaviours.” Davies said he is well aware that even if the SFO gets a conviction it will not help the affected farmers recover their missing funds or livestock directly. “Financially, it won’t help the farmers involved at all but I would hope that it would certainly set a precedent for stock and station agents for their industry to sort out some of the agents that are behaving in a way that is not appropriate.” Federated Farmers meat and fibre chairman Miles Anderson questioned whether the SFO has the resources to do its job. “They should not be leaving people hanging like this for so long. It is destroying a lot of lives. “It is a disgrace.”


Sharpen up pasture burndown Boosts glyphosate’s weed spectrum and speed of kill crop-solutions.basf.co.nz

ALWAYS READ AND FOLLOW LABEL DIRECTIONS. © Copyright BASF 2018 ® Registered trademark of BASF. BASF217544.


RAV-25MAR-FW2

Protect your investment Phosphate and sulphur

Maintain pasture productivity and performance. An early application now of nutrients P&S will set plant growth up for the season ahead. When the rain arrives, your plants will be good to grow.

Smarter farming for a better New ZealandÂŽ Safeguard your assets with an early application of nutrients. Talk to your agri manager today or call the Customer Centre.

0800 100 123 ravensdown.co.nz Cert TM


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

19

School and trust boost farming Neal Wallace neal.wallace@globalhq.co.nz STUDENTS at Wairarapa College are to get more farm training and career opportunities following an initiative with a Masterton community trust. The Masterton Trust Lands Trust has provided 14ha next to the college for agricultural training for 64 years but is taking it a step further by establishing an advisory panel of local industry leaders to provide advice and expertise for the course. More than 330 years nine to 13 students, a third of the roll, are studying agriculture this year and trust chairman Karl Taucher says the advisory panel will ensure teaching and skills developed on the farm are in line with what the industry needs. “This new approach will make the most of this significant community asset as a training base for local students and potentially the starting point in their farming career.” The college’s agriculture head Dan Grace says the advisory panel will provide input into the curriculum, ideas on how to further develop the farm and work with students. “Agriculture is one of the main industries in Wairarapa and we need skilled people to be employed in that sector.” The farm, which includes 9ha of college land, is 23ha in total and Grace says it aims to provide

This new approach will make the most of this significant community asset as a training base for local students. Dan Grace Wairarapa College practical tuition using modern technology. The students have studied and developed their own sheep breed, a four-way cross of Romney, Suffolk, Texel and Dorset Down, 170 olive trees were recently planted, they are studying the merits of various pasture mixes for regrassing and consideration is under way to use electronic identification on their 140 ewes and 30 replacements. Students can now study beekeeping and are taught to shear, with eight former students competing at the recent Golden Shears competition. Taratahi students used to pen sheep for the event but following its collapse Grace says college students did that work at the recent event. He has former students involved in all aspects of agriculture from shearing and truck driving to banking, farm management and ownership.

PRACTICAL TEACHING: Wairarapa College farm advisory panel member and old boy Sully Alsop, left, and the school’s agriculture head Dan Grace supervise students drenching sheep on the farm.

“Our goal is it to have more young people who want to work in rural industries and to ensure they have the skills and knowledge to do that, as well as provide a stepping stone to further education.” The trust is a community-owned property trust established in 1871 to own and manage surplus land not sold to Masterton’s working-

class settlers. Its original £165 parcel has grown into a holding of 80 commercial plots and buildings in and around the centre of Masterton, valued at more than $68 million. Income from property rentals is returned to the community with grants for educational, cultural and community activities.

The new college farm advisory board is BakerAg shareholder and farmer Sully Alsop, Ravensdown adviser Greig McLeod, Harewood Estate owner Paul Adamson, Ben Priestley from Kahu Honey, college principal Shelley Power, board member Hamish Taylor, trust manager Andrew Croskery, Grace and Taucher.

TBfree has its end goal in sight BEYOND the long view over rolling hill country above Kawhia Harbour on the Waikato coast Chris Irons can see the future. “I am looking forward to the day when risk-based testing will mean we no longer have to test our herd for TB,” he says. Like most others in the northern half of the North Island

Irons’ properties have a disease control area status of surveillance, meaning the work of the TBfree programme has successfully eradicated bovine tuberculosis but keeps an eye on livestock to ensure the area remains clear. “In our area we TB test our herd once every three years,” he says. Apart from being a good

distance from areas of vector risk, where possums can carry TB infection between wildlife and livestock, the risk is further reduced by farm management. “Ninety-nine per cent of our animals go straight to slaughter,” he said. Irons farms with his partner Debbie Hastie at Te Waitere,

between Taharoa and Kawhia, where they run Angus and South Devon beef cattle and 1600 Perendale sheep on 440 hectares of rolling to steep land. Among the many hats he wears – for Federated Farmers, among others – Irons is chairman of his region’s Ospri TB committee and says the programme is getting to a

crucial stage where it’s important to keep progressing towards the eradication goals of freedom from disease in livestock by 2026 and from wildlife by 2040. “We have had so much investment into the TBfree programme we cannot stop now. “We are at the pointy end and we’re just about there. “We don’t want to waste the investment we have already put to it or let the disease back in to areas that have been cleared.” Day-to-day farming practices are designed to take the stress out of life for animals and for farmers and an ear-tagging day with Irons’ calves demonstrates one of the stress-savers. The way he and Debbie use Nait tags and visual tags to advantage on their farm is to tag male calves with even numbers and females with odd numbers. The males have a visual tag in the right ear and the females in the left ear. “That makes it easier when the stock is in the yards and when we’re uploading the information into Nait,” Irons said.

MORE:

CLEVER: Beef farmer Chris Irons uses Nait tags to distinguish male and female calves.

Photo: Peter Drury

Ospri’s TBfree programme disease control areas are reviewed on March 1 every year. To check your area’s status visit the interactive map at www.ospri.co.nz/dcamap


News

20 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Molesworth farming gains public support Neal Wallace neal.wallace@globalhq.co.nz

SURVEY: People say they revere both Molesworth Station and its farming heritage.

MOST people who responded to a survey on the future of Molesworth Station support continued farming of the property. The Marlborough property is New Zealand’s largest farm and runs the country’s largest cattle herd, numbering up to 10,000. Its 181,000ha is managed by the Conservation Department (DOC) as a recreational reserve. Landcorp leases Molesworth under a grazing

GEORGE WHITELOCK YAMAHA AMBASSADOR & DAIRY FARMER

SAVE UP TO $2500 ON SELECTED MODELS ACROSS THE YAMAHA FARM RANGE

FIND YOUR LOCAL DEALER AT:

www.yamaha-motor.co.nz

Terms & Conditions: Zero deposit; zero repayments for the first 12 months and a finance rate of 4.99% p.a. is available to approved applicants of Yamaha Motor Finance (‘YMF’) across the Yamaha Real World Tough ATV, ROV models and AG125, AG200,

licence but it expires in 2020 and the survey was a prelude to a new management plan. No decision has been made. The survey attracted 4503 respondents and shows a public appetite for retaining the working farm and protection of its heritage. More than 80% of the 3400 who answered the question about whether it should remain a working farm, agree it should. That support is reflected in related questions with 71% supporting the level of farming as it is now, saying it respects the environment, other users and the farm managers are custodians of the land. Respondents say land management helps control weeds and pests but equally there is concern stock be kept out of fragile ecosystems. There were 520 people against continued farming. They claim it damages the natural environment, causes erosion, restricts public access and as marginal farmland is uneconomic and environmentally unsustainable. They want Molesworth turned into a national park or given another conservation designation. Despite general support for continuing to farm Molesworth, its farming values rate a lowly seventh in importance by respondents, over-shadowed by the property’s waterways, natural landscape, native plants and animals, historic heritage and recreation and public access. But people said farming on Molesworth helps urban and rural communities understand each other, reduces the risk of fire and helps control weeds and pests. Many noted weeds and pests have encroached on the neighbouring St James Station, now a conservation area, as farming is phased out after the land was bought by the Nature Heritage Fund in 2008. Other comments noted farming is linked to Molesworth’s history, high-country properties are opportunities for sharing knowledge and for training shepherds and farmers while farming structures are viewed as important cultural icons. The role of farming in managing the property’s natural landscapes is widely supported by respondents who see a link between farming and pest control but also in generating income to fund that control. Stock access to waterways concerned people who say water bodies and sensitive areas should be fenced off. Protection of historic values and structures is heavily supported because they reflect early settlement and farming of the station. Respondents are evenly split on whether public access and opportunities for recreation should change with those in support seeking access for more camping, tramping and cycling. Access for recreation is seen by a large number as a core value. Those opposed to greater access are concerned increasing tourism will be detrimental to other values associated with the property, heighten fire risk and unbalance the blend of farming, conservation and access. DOC’s south Marlborough operations manager Phil Bradfield says the degree of interest shows people value Molesworth. “The survey results and comments show Molesworth is valued for its natural landscape and native plants and wildlife, as a place for recreation, for its cultural and farming heritage and as a place for farming.” DOC is working with the Nelson Marlborough Conservation Board, the Molesworth Steering Committee, which advises on management of the property, and Te Runanga o Kaikoura to develop the next steps for considering future management of the reserve.

TW200 bikes with up to $2500 savings on selected Utility ATV/ROV models (discount applies on RRP of selected ATV and ROV models YFM350FAG - savings of up to $1000 exc gst, YFM450FBJ - savings of up to $1500 exc gst, YXM700PJ - savings of up to $1000 exc gst, YXC700PK - savings of up to $1500 exc gst, YXE850PK - savings of up to $1000 exc gst, YXF850PJ - savings of up to $2500 exc gst, AG125J/AG200EJ - savings of up to $200 exc gst respectively. Offer ends 30 April 2019 and available on a loan term of 36 months on YMF’s Consumer contract standard terms and conditions. Credit criteria, fees, charges and conditions apply including an application fee of $325, $10 PPSR fee and a dealer administration fee. Yamaha Motor Finance New Zealand Ltd. (YMF) NZBN 9429036270798. FSP 9622. Offer only available at participating Yamaha dealerships while stocks last. Accessories may differ from image shown.

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


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

21

Sweetest apple goes on sale Alan Williams alan.williams@globalhq.co.nz THE sweetest apple from New Zealand has been launched in Asian markets with the first shipments arriving in China. Posy is now one of NZ’s first available apples is popular in China where there is demand for higher colour, sweeter apples. Mr Apple and Bostock NZ have teamed up to exclusively grow and market Posy. Bostock owner John Bostock said its very exciting to finally have enough volume to export because the apple has taken about 20 years to develop. “We wanted to breed an apple which would be ready early for our Asian market. The Posy apple is harvested early February and ahead of most other NZ apple varieties. It was bred in Havelock North by apple breeder David Cranwell who has been in the apple industry for 50 years. “David saw the potential for a pink, sweet apple for the Asian market so we have worked together with Mr Apple to create NZ’s sweetest apple.” The Posy apple’s parents are Rose and Royal Gala, both popular, strong-flavour apples bred in NZ. “Teaming up with Mr Apple to exclusively grow this new apple variety means we can offer a wide range of customers throughout the market and take advantage of each grower’s strengths, especially our organic experience and offering,” Bostock said. “This is the first year we have had any reasonable volumes of Posy to export and it’s great to be able to offer apples that are specifically tailored to the Asian palate. “We are also adding value by creating a brand for this apple and supporting it with a lot of marketing material for our customers.”

READY: John Bostock checks the harvest of Posy apples now being sold in Asia.

Our apples are looking good in terms of colour, texture, eating quality and flavour. Peter Landon-Lane T and G Global The Chinese market is still small for Bostock and awareness of the organic category is developing. New, exciting varieties are appealing in Asia and are helping grow the market there. “Developing exclusive, high-

quality apple varieties has been a big focus for Bostock NZ over recent years. Our Asian customers are really excited about the oncoming new varieties we have,” Bostock said. And the country’s biggest apple exporter, T and G Global, says this season is looking rosy as warm summer temperatures and cooler autumn evenings bring rich colour and full flavour to the fruit. Hundreds of orchard workers have descended on the orchards of Hawke’s Bay, Nelson and Otago to pick and pack apples, with total volumes for T and G expected to reach seven million cartons, up on last year’s volumes. The buoyant apple industry is set to produce another bumper

crop on the back of a growth strategy that will achieve a billion dollars in export sales by 2020, T and G chief operating officer Peter Landon-Lane said. “Our apples are looking good in terms of colour, texture, eating quality and flavour and due to NZ’s superior breeding programmes our world-leading growing systems and post-harvest technology, it means only the highest quality fruit enters the market.” About 95% of the crop will be picked and packed for international markets where premium prices are paid for T and G’s flagship, award-winning Jazz and Envy apples. Jazz apples were born in the leafy orchards following a natural

union of the Royal gala and braeburn varieties, he said. Seventeen years later Jazz apples have become not only a NZ favourite but a global favourite sold in 60 countries and grown in 10 countries under a closely controlled, quality growing programme managed by T and G. “Jazz and its equally successful sibling, Envy, are among the top five premium apples in the world with Jazz voted Britain’s tastiest apple in 2018 and Envy was voted the number one apple of choice by United States consumers last year.” Traditionally, most of T and G’s apples were sold in the United Kingdom and US but that is changing as Asia and the Middle East emerge as key markets, making up half of its exports. While spring threw some challenges for growers in Hawke’s Bay, delivering wet weather, warm summer temperatures moderated by the recent cooler nights have meant good fruit size and highquality fruit. In Nelson, a wet winter was followed by good pollination conditions in spring. However, since the new year, there has been very little rain meaning an earlier harvest start date in the area. Otago weather has been favourable for apple growing with a good crop expected despite a few pockets of hail that caused some damage over Christmas and New Year. “The harvest is in full swing this month including several orchards we have invested in over the last few years to ensure we will continue to meet global demand for our apples,” he said. Envy is also grown in Chile, the US, Italy, France, Spain and South Korea. Jazz is also grown in the UK, Europe, the US, Chile, South Africa and Australia. France is the second biggest producer of Jazz apples after NZ.

Aongatete boosts Seeka numbers Alan Williams alan.williams@globalhq.co.nz BUYING the Aongatete Coolstores business should give Seeka a total of nearly 36.6 million trays of kiwifruit this season. An impressive rise in the volume of SunGold fruit will also help the tally. Seeka has paid $25m for the Katikati-based Aongatete orcharding and post-harvest business, in its own Bay of Plenty home-patch. With those excellent assets and the new Northland infrastructure Seeka will have enough coolstore capacity for the next three seasons, chief executive Michael Franks said. Before the Aongatete addition it already expected to pack more kiwifruit this year with a big rise

in SunGold volumes making up for a reduced Hayward green pack-out. Hayward is still the major variety by volume but the gap is narrowing. From a Hayward total of 19.2m trays in 2018, Seeka expects to pack 18.2m trays this season from the pre-Aongatete business, Franks said. For SunGold a lift to 13.5m trays from 10.8m last season is forecast. Add in the smaller varieties and the total pack-out is expected to be 32.1m trays, up from 30.3m. Then add an extra 4m to 4.5m trays from Aongatete, about halfand-half Hayward and Gold. Franks said the dry late summer growing conditions had a positive impact on fruit quality but fruit size will be smaller than last season.

The Aongatete business will add between $3.5m and $4.5m to Seeka’s operating earnings (Ebitda) on a sustainable basis though it might take a year or so to net-out the full gains, Franks said. This financial year to December 31 should have earnings of more than $40m all-up. The company earlier amended its earnings forecast for the year to allow for the results of property sales and some accounting treatment changes. The Ebitda (pre-Aongatete) was expected to be in the $36.5m to $37.5m range, from $27.5m to $28.5m previously. The change to how leases are accounted for will add about $5.6m to earnings. Seeka has made a gain of $4.2m on sales of Northland orchards since the December

GOOD AND BAD: Kiwifruit will be smaller this season but the quality will be higher, Seeka chief executive Michael Franks says.

31 balance date, subject to settlement. The orchard land was bought from T and G Global last year. More orchard land, which cost $14m, remains to be sold. Franks said an increase in depreciation and interest costs will affect pre-tax profit. The effect of interest and depreciation costs will reverse over time.

The Aongatete acquisition pushes up Seeka’s borrowings but the group expects net bank debt to Ebitda to be within the policy range of 1.5 to 2.5 times Ebitda by the December 31 balance date. At the top end that would mean borrowings of about $100m based on the Ebitda forecast of just over $40m. Seeka now has about $300m in total assets.


News

22 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Trial site gives breeder clout Tim Fulton timfulton050@gmail.com PLANT breeder Seed Force has opened the gate on its new SF Henley Research Centre. The joint-venture between farmers and French breeding company RAGT has been in business for 13 years but a recent open day was a rare insight into its agronomic field work. Hundreds visiting the trial site near Lincoln heard about new ideas and technology for plant breeding and better farm production. Seed Force managing director Bruce Garret said it took nearly two years to establish SF Henley, which was once part of a Lincoln University research farm. Garrett joked Seed Force had an agreement with the landowners to rent the property at the same equivalent price as a first European settler in the area. “The name Henley does have historical significance … Mr Patrick Henley being an early settler from Ireland and first private landowner of what I believe to be this site, having purchased the land off the Government for two pounds an acre.” Garrett said Seed Force’s motivation will continue to be bringing new, proprietary seed varieties and technologies together to make a difference for farming, like it did with the introduction of fodder beet. “We need to ensure we can access the best genetics, the latest in technological advances globally plus ensure we have the scale, resources and international footprint required to create what you see today.” The company is especially interested in evaluating species that can help farmers operate under stricter environmental and nutrient considerations.

THE BOSSES: Seed Force chairman Warwick Green, left, and managing director Bruce Garrett at the opening of SF Henley Research Centre, Lincoln.

We need to ensure we can access the best genetics, the latest in technological advances globally plus ensure we have the scale, resources and international footprint required to create what you see today. Bruce Garrett Seed Force The business has agronomists on site at Henley, following germplasm through its early development to final commercialisation. The jointventure has about 50 staff on either side of the Tasman. “RGAT has a similar vision and can see the potential to explore their vast genetic pipeline and expand their global footprint in this part of the world.” The vision is similar in its

Australian operation where a few local managers based around Shepperton, Victoria, are also working with RAGT. The latter started in France as a co-operative providing genetic research and products to a part of the country that was quite different in soil and climate to the rest of western Europe. Seed Force is mainly in the forage business in New Zealand while in Australia it is broad-acre

wheat, barley and canola, Garrett said. It takes years to create a new cultivar but investing time, effort and resources instills confidence in the final product, he said. Guest speakers at rotating talks beside the Henley trial sites included Lincoln University’s plant scientist and lucerne king Derrick Moot, nearby beef farmer and client Brent Fisher and Northland dairy farmer and agribusiness director Murray Jagger. Moot said legumes underpin NZ’s pastoral agriculture, driving animal performance and overall production. Under strict nutrient regulations they will be a crucial component in all pastoral systems. Fisher, who operates Silverstream Charolais Stud at Greendale in partnership with his wife Anna, said pro-active

1

April 2019

environmental management is now a must for all farmers. The Fishers pioneered the use of beet in high-production beef systems and it had changed the way they finish their animals, Fisher said. Jagger said Seed Force offers advanced breeding and highlyproductive and palatable products across a range of alternative perennial grass species. He and his wife Helen farm dairy and beef at Whangarei Heads, where their family has lived and farmed for more than 150 years. Jagger has a focus on understanding the performance of alternative species in different environments. Many other farmers could benefit from these improved genetics, he said. Seed Force is 60% owned by NZ shareholders Garrett, chairman Warwick Green and a third investor, Andrew Moorhouse. RAGT has the remainder.

THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME$8.95 THEME & THEMEding THEME Bree THEME THEME THEME THEME THEME THEME tics THEME THEME gene THEME THEME THEME THEME THEME THEME THEME THEME THEME y Day THEME THEME Gyps THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME THEME

Incl GST

KEEP AN EYE OUT Dairy Farmer will be hitting letterboxes April 1.

Breeding and genetics - spring mating planning Now is a good time to plan ahead for mating. See what is new and coming in the world of breeding. Preparing for Gypsy Day Farmers and cows are on the move as the season winds down. Check out what you need to do before moving stock around the country. We take a look at preparing the farm and stock for gypsy day, June 1.

Breeding top bulls for NZ Still going strong after 50 years Moving on and up

A place to call home ress to farm ownership A Northland couple’s speedy prog

DAIRY FARMER

1

April 2019

Get the full story at farmersweekly.co.nz

2460DF-12x7

Our OnFarm Story this month features young Northland couple Don and Kirsten Watson who have progressed through the industry in just 10 years to buy their first farm on the picturesque Kaipara Harbour.


Commercial Buildings

Rural Buildings

Lifestyle Buildings

MONOSLOPE

IMPLEMENT SHED

GABLE ROOF

GOAT BARN

MONOSLOPE

MULTI-USE SHED

GABLE ROOF

GARAGE & WORKSHOP

Excellence in Every Build At Aztech we specialise in commercial, rural and lifestyle buildings which are tough, cost-effective and designed to endure New Zealand’s climatic conditions. Kit-set, part-constructed or fullyconstructed, our proven construction system means we can offer custom options or specialised buildings to suit your budget and add value to your property.

CONTACT US NOW!

0800 298 324 aztechbuildings.co.nz


News

24 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019 INSIGHT

We cannot take future food supply for granted MONEY TALKS: Demographia International Housing Affordability Survey co-author Paul Pavletich says economics should dictate how land is used.

GONE: Planning Institute chairwoman Karyn Sinclair says the Resource Management Act removed protection for high-value soils.

Market prices will protect fertile land Neal Wallace neal.wallace@globalhq.co.nz THE area of high-class soils being swallowed up by urban sprawl is infinitesimal, former developer and author Hugh Pavletich says. The price of land draws housing developers to poorer soils and away from high-priced, highquality land. That is evident in Christchurch where, after the 2010 and 2011 earthquakes, the city expanded south onto the light, rocky soils around Rolleston in Selwyn District. “There is a natural ally in the economics,” Pavletich says. While concern at the loss of high-class soils is understandable the amount lost to urban development is infinitesimal. Residential housing for between 1000 and 2000 people requires about a square kilometre. “It’s not a disaster. “We need to let economics dictate how land should be used and price signals are the best measure.” The planning system has created the housing shortage and inflated prices. “By strangling the housing supply all we are doing is artificially ramping up prices.” In the 2017 speech from the throne Prime Minister Jacinda Ardern committed the Labourled Government to increasing Auckland’s housing supply through in-filling and removing the city’s urban growth boundary. Pavletich co-wrote the Demographia International Housing Affordability Survey, released in January, which found Auckland, Tauranga, Wellington

and Christchurch house prices are severely unaffordable. The report attributed that to urban containment policies or controls on where urban development can occur. “In NZ, as in Australia, housing had been affordable until approximately a quarter century ago,” the report said. “However, urban containment policies were adopted across the country and, consistent with international experience, housing became severely unaffordable in all three of New Zealand’s largest housing markets, Auckland, Christchurch and Wellington.”

Reserves of cultivatable land are available to feed the planet in perpetuity. Housing Affordability Survey Demographia International Tauranga is ranked eighth least affordable out of 92 major international housing markets surveyed and is Auckland ninth. Buying a house in Tauranga requires 9.9 years of pretax median household income and Auckland 8.8 years. For Auckland it represents an increase of three years since 2004. Christchurch at 5.4 and Wellington at 5.5 are also expensive. For metropolitan areas to rate

LAND

as affordable and ensure housing bubbles are not triggered house prices should not exceed three times gross annual household earnings, Pavletich said. A Demographia study noted that in contrast to wellfunctioning housing markets, all the severely unaffordable major housing markets covered in the survey have restrictive land use regulation and overwhelmingly urban containment. That includes urban growth boundaries, which, the report says, inflate house prices within those boundaries and encourage investment at the top end of the market that has little or no impact on middle income housing affordability. “In fact, the higher land prices and the resultant higher house prices are consistent with the basics of economics. Virtually across the road land value gaps of ten or more times result.” The use of urban growth boundaries also contains infrastructure costs and restricts urban sprawl to protect rural land and contain transit services. The report claims as exaggerated the need to protect rural land, saying added reserves of cultivatable land are available to feed the planet in perpetuity. “Unless urban fringe

Neal Wallace neal.wallace@globalhq.co.nz

NEWS the Government will protect elite soils is welcome but by no means signals the resolution of broader challenges facing land use and the productive sector. As reported in Farmers Weekly’s Land Squeeze series, the Ministry for the Environment has started the process of preparing a national policy statement for high-value soils, which will be finalised after consultation later this year. That protection is needed because urban sprawl and lifestyle blocks swallow up to 100,000 hectares a year including Auckland paving 10,500 hectares of high-quality soil in the last 35 years. Domestic food demand will only increase as New Zealand’s population is expected to hit five million in 2020 and 5.5m in 2025 while demand will also rise from an ever-expanding global population. The introduction by regional councils of a suite of environmental laws is going to be joined later this year by new rules and regulations from the Government likely to restrict farming practices even further.

restrictions are relaxed enough to restore the competitive market for land, housing affordability is likely to worsen even more.” it said. Planning Institute chairwoman Karyn Sinclair said the Town and Country Planning Act identified and protected high quality soils considered of national importance when she started work. That protection was removed when replaced in 1991 by the Resource Management Act because the intensification of production, such as glasshouses, negated the need for broad protection. While rules discouraging subdivision provide some protection, housing demand in some metropolitan areas in the last 20 years has put pressure on those rules.

That will make it even more difficult to shift a vegetablegrowing business from Pukekohe to Waikato even if comparable elite soil can be found. But, as our coverage revealed, there is also the challenge of protecting our sheep and beef country and the billions of export dollars it generates, which underpins our standard of living. While there is certainly a place and a need for forestry, the Government’s carbon neutral 2050 policy could, according to the Productivity Commission require up to 2.8m hectares to be planted in trees, much of that now farmed for sheep and beef. Of concern is the complete absence of any analysis on what such large-scale forest planting will have on rural communities let alone exports. Hopefully, these land challenges are not symptoms of how society has become complacent about a food production system that always delivers or ignorance of our economic engine room. The land squeeze series has highlighted that we cannot take our soils, the production of food and exported produce for granted, that all soil is not equal and urban planners and society need to take note of that fact.

If communities decide they want to protect productive soils the best way to achieve that is by a national policy statement that would be included in planning documents. She described that as a significant step because the RMA is a broad church, established to manage soil, water and air interests and opportunities but also taking in to account community wishes. Any change to planning laws is a two to three-year process but that time ensures community involvement and inclusion in decision-making. In rural planning laws livestock farming and forestry are largely treated the same, though some councils have rules protecting distinct landscape values, Sinclair said.


News

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

25

Rates give land squeeze impetus Richard Rennie richard.rennie@globalhq.co.nz WHEN growers and farmers on urban fringes weigh up the pros and cons of selling their land for urban development the annual rates bill can be the straw that breaks their farm’s financial back. Federated Farmers policy analyst Nigel Billings has heard many testimonies over the past 20 years from farmers grappling with rocketing rates bills incurred simply by living too close to town. “For many it’s been a case that town has simply come closer to them and with that they find themselves on a very uneven playing field rates-wise, compared to a similar farm that may be further away from town.” Billings has watched inequity in rating calculations grow. He hopes a Productivity Commission report now being written will address that issue. “The problem often is that it’s not that the farm is unprofitable, it is simply because of where it is, the rates are making it unprofitable, not the farm operating costs.” At the heart of the problem is a rates valuation system that assesses properties in a mass

RATES PAIN: Federated Farmers policy adviser Nigel Billings wants rates to reflect land use rather than unrealised, potential value.

appraisal based on their highest and best use. “ Use becomes second to location. For example, an average size coastal sheep and beef property with subdivision potential may face a rates bill of $50,000. That bill does not reflect an economic sheep and beef unit, it reflects its location and coastal subdivision potential.” Then there’s the Shania Twain effect where a highly-valued property not necessarily being run

as a bread and butter economic farm pushes up the value of all neighbouring bread and butter farms trying to make a cash profit from farming, not from inflated property values. In 2004 country music singer Shania Twain bought Motutapu and Mt Soho Stations for $21.5 million, regarded at the time as over the odds for operating stations. The surge in rates has followed rises in rural land values in almost every area of the country Federated Farmers’ records indicate average council rates in New Zealand jumped 79.7% between June 2007 and June 2017 when the consumer price index for the same period was only 23.1%. And the inexorable rise in rates isn’t sympathetic to the vagaries in farm cash incomes over that time. Billings likens it to an income tax on money someone could earn but doesn’t. “It’s like someone telling you your skills mean you should be earing X amount more and then taxing you on that even though you may be nowhere near earning that amount.” Before 1998 farmers had a way to dodge the effect inflated valuations had on rates.

The Rating Powers Act, since repealed, specified farms be valued for their use and any increase in value attributable to non-farming use (ie subdivision) could be postponed for three years. “So, if you were farming, and elected to stay farming and not pick up the extra value by subdividing, you were not liable for that extra rates cost. It was quite equitable and allowed for farms to be farms and pay rates that reflected that.” The Act was replaced in 2002 by the Local Government Act, making rates postponement an option for councils but few have chosen to use it. “The ball was really dropped when that provision was lost.” This loss also coincided with a surge in subdivision development on farms and orchards nationwide. While urban centres consumed 0.5% of high-class soils between 1990 and 2008, lifestyle blocks have sucked up 10% of that land, to occupy 880,000ha by 2011. Over 40% of those came after 1998, at an average rate of 5800 a year. In Auckland they have taken over 35% of the region’s high-value land. Some councils have recognised

LAND

the inequity of rates valuations. Billings said ThamesCoromandel District Council has a 0.6 differential on rating for farmland, helping keep expansive coastal properties viable as farms, not holiday blocks. Wairoa has a similar policy for its coastal sheep and beef properties. “But you have many other councils claiming they cannot fund their growth as they drive farms on the fringe out with $30,000-$40,000 a year rates bills.” He hopes the Productivity Commission report on rating and councils picks up on the recommendation made in the extensive Shand Report in 2007 that councils make more use of their powers for flexibility in rating so the burden better reflects land use. “But we will have to wait and see if anything really changes.”


Newsmaker

26 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

SAY CHEESE: Judge Russell Smith, centre, with Nikhil Sawant, left, and Philip Greenslade from Countdown.

Photo: Jason Creaghan

Kiwi cheeses are like fine wines Committed dairy patriots might question how an Australian came to be the head judge for the New Zealand Champions of Cheese awards. However, a commitment to quality food, provenance and artisan producers means he is more than qualified for the task. Russell Smith spoke to Richard Rennie about his work and how the cheese industry has evolved in the decade he has spent judging the competition.

F

OR the past 25 years Russell Smith has travelled the world sampling food, particularly cheese from many artisan producers. And despite now claiming to be retired continues to find his judging skills in demand. Home for Smith is the Bega Valley, New South Wales, an appropriate district for a cheese judge to live, being the namesake for an Australian cheese brand. The son of a milk distributor from Queensland, he admits he might have absorbed a passion for good cheese thanks to his father often getting samples from small artisan producers in the Darling Downs district. “Unbeknown to me at the time as a kid I was probably sampling some extremely good cheddars and a few not so good. It was also helped by spending some of my youth in France, getting to try all they had to offer there.” After a stint as a botanist with the Commonwealth Scientific and Industrial Research Organisation he was drawn back to that interest, setting up a cheese retail and distribution business in Canberra in the 1990s. When he started judging cheeses at the Sydney Royal Show he put his mind to the job of better understanding the

science behind cheese making, completing a commercial cheese maker’s certificate. “I had a friend who had a small Jersey herd just out of Canberra and that provided the opportunity for me to experiment with cheese making. “Being non-commercial and no threat, other cheese makers were happy to share their insights and results. This helped immensely when it came to judging time and knowing how a certain cheese had been made.” Unfortunately, the Jersey herd has been sold but demand for Smith’s expertise has not faded. He sees some similarities between how the NZ and Australian cheese markets have evolved. Both have moved from highly processed, industrialised offerings that included shelf stable parmesan in a cardboard can to diverse, highly skilled artisan offerings that span the universe of different cheese types. He appreciates, though, how tough the business is, even in Australia with its 25 million population, let alone NZ’s 4.5m. But the small scale here has been no excuse for standing still. “The thing that really blew me away 10 years ago when I first started judging the awards was the standard of your Dutch

cheeses. The likes of those produced by Mercer and Meyer Cheese, I did not even realise they existed yet they are a standard equal to any good Dutch producer.”

You are now seeing so many more styles of cheese come with experimentation. The likes of buffalo, sheep and even red deer milk. It’s that innovation that Kiwis seem to do very well. Russell Smith Judge More recently, NZ cheese makers have stood out for their ability to produce extremely good blue cheeses, with even supermarket standard blues getting the big tick from Smith. He puts it down to a long history and the stable positions of many cheese makers in some of NZ’s larger processing plants building their expertise and ability to produce consistently

good product and sell at a realistic price. “And when it comes to the Dutch cheeses, you now have the next generation coming into the craft.” Just as the wine sector has become renowned internationally for its New World experimental approach to wine making, Smith sees the same thing in NZ’s cheese sector. “You are now seeing so many more styles of cheese come with experimentation. The likes of buffalo, sheep and even red deer milk. It’s that innovation that Kiwis seem to do very well, whether with their product or the equipment they are using.” This year’s competition had 280 entries vying for 26 trophies. He is particularly excited by the appearance for the first time of Italian style cheese in the competition, with 28 different cheeses in that category this year. While including well known favourites like mozzarella and ricotta, it is the arrival of scamorza, stracciatella and stracchino that have excited him. Two are similar to mozzarella while stracchino is a creamy, spreadable white cheese. The growing variety in the competition makes his visits to traditional cheese-making regions

like Normandy seem mundane by comparison. “It’s that ability cheese makers here have to just mix things up, try different approaches without being constrained by tradition or process you see in those older regions.” The evolution of the competition also reflects NZ’s efforts to develop a food culture. Smith is encouraging about the potential food tourism has to offer beleaguered artisan producers struggling to get their production volumes up. “We have areas like northeast Victoria, with some cheese makers and some wineries that have that appeal. Taking people to these areas, you cut out a lot of the costs. NZ offers great potential in this respect too.” An ANZ report last year indicated more than half of visitors to NZ came with a neutral view of this country’s food offerings, compared to 15% in France and Italy. The potential for food tourism was highlighted in the report, with more than half the visitors going to a farm or orchard and 60% buying a product at home they had seen or sampled on their visit here. The Champions of Cheese Awards winners are named on March 25.


New thinking

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

27

Inhibitor can solve methane issue soon AIR FILTER: An initial methane inhibitor is in powder form but DSM is working to produce a slowrelease pellet on New Zealand’s pastoral farms, clean cow programme director Mark van Nieuwland says.

Scientists have come up with the next step in making cattle farming environmentally friendly and say it works. But the effect wears off so they are developing a way of getting it into New Zealand’s pasture fed cattle at regular intervals and will test it here this year, they told Neal Wallace.

N

EWS the world’s first methane inhibitor for livestock will be released in New Zealand later this year has been greeted by scientists as evidence technology can solve our greenhouse gas problem. Dutch company DSM has developed 3-NOP, a feed additive that inhibits a methane producing micro-organism in the rumen, reducing emissions by about 30% while also being safe for animals and consumers.

Comparable results have been achieved in beef cattle, sheep and goats but the initial focus is on dairy cows. Mark van Nieuwland DSM However, the effect stops within a few hours of feeding so it must be ingested regularly. DSM’s clean cow programme director Mark van Nieuwland said the product’s initial format is as a powder designed for indoor dairy

operations but it is starting work developing a slow release pellet for use in New Zealand’s pasturebased dairy system. While not releasing costings van Nieuwland says the inhibitor can be easily made at scale so there will be economic benefits for users. NZ’s Pastoral Greenhouse Gas Research Consortium manager Mark Aspin said the commercial development of a methane inhibitor is a boost for science but also confirms such developments take time. DSM has taken more than eight years to get to commercial release. “What has been useful has been the advance in science on methane,” Aspin says. “It’s a mechanism whereby we can use it to understand what happens when you reduce methane in a ruminant animal.” Developing the product to apply to pasture will be a challenge and still must satisfy regulatory requirements. “It shows it is possible. I have no idea about the economics but this is absolutely an emerging field that we’re all learning from.” Methane from livestock generates about a third of NZ’s greenhouse gases though it is short-lived, breaking down in the atmosphere in about 12 years

compared to carbon dioxide, which takes about 100 years. Methane emissions are quite stable with Landcare Research calculating NZ emissions increased 5% from 1990 to 2015. Van Nieuwland says it is lodging a product registration application in NZ in the next few weeks and will follow with a registration application in the European Union. It has already started the process in the United States. He hopes to have NZ approval by the end of the year but developing a slow-release pellet will take a bit longer, a process

DSM is doing with partners in the NZ dairy sector. The aim is to produce a pellet animals digest once or twice a day from a feed trough in a paddock or dairy shed feeding system. Spraying it on pasture would lead to waste. “If they go once or twice a day to get a feed, that will be sufficient.” He says the volume of 3-NOP to be digested is very small, about quarter of a teaspoon added to feed, and the company is confident a slow-release version will produce the same methane reducing results but that will be

the focus of NZ trails that will also look at mechanisms and practices. The safety and efficacy work of 3-NOP has already been done. During digestion, microbes in the stomach help process food but 3-NOP blocks an enzyme responsible for methane fermentation. Trials and research have been done in Canada, the US, Brazil, NZ, Australia and Europe. “Each time it has worked.” Comparable results have been achieved in beef cattle, sheep and goats but van Nieuwland says the initial focus is on dairy cows.

Ballance wins inaugural Smart Farming Award BALLANCE Agri-Nutrients’ breakthrough environmental planning tool MitAgator has taken out the inaugural South Island Agricultural Field Days Smart Farming Award. Backed by 30 years of independent science from AgResearch, MitAgator helps farmers reduce contaminant losses that affect water quality. As agriculture has become more sophisticated technology that lets farmers work smarter has assumed greater importance. To acknowledge the changing times and the role innovation

plays in helping farmers meet the demands they face the field days initiated the Smart Farming Award. Canterbury consultancy firm Agri Magic sponsors the award. The judges were Blinc Innovation’s Toni Laming, Anzco founder Sir Graeme Harrison and primary sector business innovator Richard Green. They were unanimous and say MitAgator was a standout given the key judging criteria centred on new technology that enables improved decision-making and adds value to agricultural businesses. Ballance chief executive Mark

Wynne said MitAgator took 10 years to make. “MitAgator will change the way we farm in New Zealand for the better. “It gives farmers a speedo on their dashboard that takes the guesswork out of farming within limits by mapping hot spots for the four key water contaminants – nitrogen, phosphorus, sediment and E coli pathogens. “This tool is tailored for today’s farming because it shows where to invest to achieve the greatest environmental gain. Farmers know where the real risks are and where they can make the biggest impact for every dollar

they spend, whether that should be fencing a stream or building a wetland.” MitAgator was developed by Ballance Agri-Nutrients with financial support from the Primary Growth Partnership. It is available to farmers through Ballance’s team of farm sustainability advisers. Its risk map and scenario analysis deliver a new gold standard in farm environment plans, Wynne said. The judges also gave a Special Award for emerging innovation to Kiwi company Halter for its virtual fencing and animal movement technology.

The concept is in its early days but is truly innovative, they said. The judges wanted to encourage Halter’s out-of-thebox thinking with a special sward. Halter gave its prize money to the Muslim community in Christchurch.

MORE:

Visit finalists at the field days: Ballance Agri-Nutrients, site 228 Halter, covered site C62, FarmIQ, on Farmlands site Or visitwww.siafd.co.nz or email info@siafd.co.nz


Opinion

28 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

EDITORIAL

Primary sector attitudes give lessons for life

I

T HAS been a challenging week or so in New Zealand as we all try to make sense of the events in Christchurch on March 15. We’ve all been doing some soulsearching, wondering about the foundations of our society and how it will recover from this tragedy. As an island nation at the bottom of the world many of us might have thought we were isolated from the hatred that we see in much of the world at the moment. But we’d be wrong to think that. Our nation was formed through conflict and to this day we often express our fear of others through anger. It might help for rural communities and primary producers to reflect on our make-up. People of all nationalities work the land, grow the crops, pick the fruit and milk the cows. There’s only four million of us here but we produce enough to feed many more people so we’ve had to form partnerships with other nations to sell our great food internationally. It takes respect, compromise and empathy to forge those relationships and allow our exports to thrive. Our meat processors understand the cultural and religious beliefs of some of their customers and so they take care to respect those beliefs and process animals in the appropriate manner. Sure, there’s a big commercial aspect to it but it’s people we’re feeding. It’s worth remembering that. We like to tell our food story and we have terms like market research and consumer behaviour that help us as we pick what to produce and how. Put simply, what we’re really doing is asking what does that person want and how can we make them happy? We’re seeking understanding. We’re listening to people we don’t know as much about. We could use more of that in our everyday lives right now.

Bryan Gibson

LETTERS

More letters P29

Forestry not an inferior use THE March 18 edition of Farmers Weekly had significant and timely discussion of land use and competition for that land. Included in the articles was significant comment on forestry and the areas that might be planted under different scenarios. However, I think there were two points missing from the discussion: When considering the role of forestry in offsetting greenhouse gas emissions note that production forestry is much more effective than plant-and-leave style carbon forestry in the longer term. While a production forest will store only about half as much carbon per hectare on average as a mature, permanent, sink forest, a production forest can continue to produce low-

energy, carbon-sequestering wood to substitute for more energy and GHG-intensive materials such as steel, concrete, plastic and coal. It can do that over multiple rotations with minimal inputs. To recognise this advantage of production forestry we need to have the Emissions Trading Scheme adjusted to allow averaging for forest carbon sequestration and the role of harvested wood products in storing carbon. These are two changes that have been widely discussed. Production forestry is a much better earner of foreign exchange than sheep and beef farming. Over the last decade the production forestry estate has earned about $2000 of free-onboard exports a hectare a year compared to about $1000/ha/ yr for sheep and beef. And it has generally done

that on poorer land and with a smaller environmental footprint. Dairy has earned about $6000/ha/yr and various horticultural crops earn significantly more but are generally more demanding of soils and sites. From the country’s economic perspective, more forestry in place of some of the sheep and beef would seem to be a good thing. I don’t think export earnings should be the only consideration but it raises questions about sheep and beef’s status versus forestry. I find the two can integrate very well, though in my situation, quasi-coastal sand country, forestry on the poor land is generally more profitable than sheep and beef on the better land. Forestry doesn’t have to be managed according to the

corporate model. In fact, I feel I have a family forest with a sheep and beef add-on. And though forestry might be just as deserving of better country as sheep and beef it doesn’t need the better land and so is probably more appropriate on class six and seven land. However, I do believe we need to get over the idea that forestry is an inferior land use. Denis Hocking Bulls

All drivel WHAT a load of drivel, your editorial 11.3.19. If you are looking for dairy company in New Zealand to call a mongrel the obvious candidate is Westland. From the time of Fonterra’s inception to today it quite

Continued next page

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

ADVERTISING Steve McLaren 027 205 1456 Auckland/Northland advertising 09 375 9864 steve.mclaren@globalhq.co.nz

GENERAL MANAGER Warren McDonald 06 323 0143 warren.mcdonald@globalhq.co.nz

Shirley Howard 06 323 0760 Real Estate advertising shirley.howard@globalhq.co.nz

Jody Anderson 027 474 6094 Waikato/Bay of Plenty advertising jody.anderson@globalhq.co.nz Donna Hirst 06 323 0739 Lower North Island/international advertising donna.hirst@globalhq.co.nz Aleisha Serong 027 474 6091 South Island advertising aleisha.serong@globalhq.co.nz

Nigel Ramsden Livestock advertising livestock@globalhq.co.nz

06 323 0761 or 027 602 4925

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

0800 85 25 80

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

Best letter each week wins a quality Victorinox Hiker knife

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

LK0096006©

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


Opinion

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

29

Setting the wheels in motion Climate Change Minister James Shaw and Agriculture Minister Damien O’Connor look at the direction they want agriculture to head in an article they call Our Changing Climate and Primary Production: Moving from questions to answers.

T

HIS year we have a once-in-a-generation opportunity to put New Zealand and our primary industries on a more certain and sustainable footing for the next 30 years and beyond. The effects of our changing climate are going to touch almost every aspect of our primary sectors in the next few decades. Many are already seeing the effects and have made necessary changes. We will see more frequent weather extremes and rural communities, in particular, will likely face multiple challenges at once. The brutal reality of this was most recently demonstrated with the wildfires raging in the extreme, dry conditions in Tasman. A medium-scale event was declared and has now been extended to cover drought in the top of the South Island. Rivers in Golden Bay are at their lowest levels in 80 years and figures released by NIWA earlier this month show we have experienced two of the three hottest summers ever recorded with Hokitika experiencing the driest summer since records began in 1866. As a country we need to work together to reduce our collective impact on the environment. We know farmers value the environment, it is crucial for their businesses. Many approach farm management as stewards of the land for future generations. Some have spent recent decades reducing emissions, restoring waterways and sustaining their soils for the future. Many have invested in improving their environmental outcomes by focusing on the simple things first, like: • Targeted fertiliser application via a whole farm soil testing programme; • Strategic use of nitrogen; • Stopping practices such as

TOUGH JOB: Climate Change Minister James Shaw and Agriculture Minister Damien O’Connor want to set agriculture up to for the next few decades while tackling climate change issues.

The

Pulpit

minimum tillage and rotation; • Land class suitability mapping; • Proof of placement technology and; • Stock exclusion and riparian planting. The Biological Emissions Reference Group (BERG) report shows national reduction of on-farm emissions in the next few decades is possible but not simple. The options are different for each farm and some will need investment in new systems, skills and technology.

Farming is a complex business. Becoming more resilient in a changing climate while meeting market demands and optimising animal health and productivity is no easy ask, especially as we work together to sustain value growth in the sector. We hear the call from the agricultural sector for direction and certainty. We know we need to make the goal posts clear. The Zero Carbon Bill is intended to set a new, long-term emissions reduction target for NZ that’s in line with the global goal of reducing temperature increase to 1.5 degrees below pre-industrial levels. There has been great engagement with 15,000 submissions received on the Bill last year as well as substantial feedback on proposed changes to the Emissions Trading Scheme. An Interim Climate Change Committee was also set up last year to develop evidence and analysis of ways agriculture might enter the ETS, with the intention of passing its advice on to the yet to be established Independent Climate Change Commission once the commission is established under the Zero Carbon Bill.

However, farmers need answers much sooner around the questions of whether agriculture should enter the ETS and, if so, how. Therefore, we have decided the committee will now report its findings and recommendations directly to the Minister for the Climate Change in April, instead of waiting until the commission is set up and legislation is in place so this advice can be considered alongside other important climate change decisions. After more than a decade of research funded by the government and agricultural sectors and more than a year of conversations with land owners around the country now is the time to act. We will be engaging with our Treaty partners and broader stakeholders in preparation for public consultation on its recommendations. It must be noted the interim committee’s recommendations are independent and are not policy. We will consider the recommendations in full and we will seek your feedback. Then, we expect to be able to make decisions this year. NZ is already a world leader on

LETTERS simply has been a train wreck. Much has been made of Fonterra’s payout being only the average of all dairy companies over its existence. What the critics ignore is Tatua’s payout is plus $1.20 on Fonterra. They forget this also means the Fonterra payout over that time outperforms all the other companies collectively by the same amount. Perhaps, if Open Country Dairy,

We hear the call from the agricultural sector for direction and certainty. We know we need to make the goal posts clear. James Shaw and Damien O’Connor Ministers research into reducing emissions in the agriculture sector. We are committed to a successful transition to a low-emissions economy and New Zealanders from all sectors are ready to do their part to reduce emissions. So let’s keep talking, working together and getting on with the tasks at hand – after all, climate change is everyone’s responsibility.

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

More letters P28 Synlait and others would publish their payouts in a transparent and comparable format dairy farmers and every one else could make a true comparison. At the very heart of belonging to Fonterra I know we are getting the best possible price for our milk and all others are treated equally with no sweetheart deals for large and/or well connected suppliers. Why does Farmers Weekly not publish these numbers?

Are you captured by Fonterra’s competition? Dennis Rogers Fonterra 76601, Waikato

You can move I HAVE just finished reading John McCaskey’s letter where the last sentence stated “What a sad pathetic country this has become”.

Well, John there is an answer for you. Move. No one said you must stay here in this country. If you are unhappy with the way it is going then pick somewhere else to live. There are many options to choose from. Australia is the closest then there is Europe, Asia, Britain, Canada and, of course, the United States – though they have too many negative people there now. I have had a guts full of whiners

like you. No country is perfect. They all have flaws. New Zealand is one of the best and safest places to live and if it does not suit a person then, please, pack up and leave. We need positive people and minds to keep us this way and to grow. You do not seem to be one of them. Bonni Smith-Jacobs Nelson


Opinion

30 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

We’ll never be the same again Alternative View

Alan Emerson

FRIDAY March 15 will forever be a dark day in New Zealand’s history. I’m proud to be a Kiwi. I’ve done considerable travel and worked overseas but it is always good to come home. We are peaceful, largely tolerant and respectful of others. You don’t see the anti-rants in the media about those with a different colour or religion that you do in Europe, Britain, America or Australia. Until Friday March 15 we didn’t see terror either. That so many died and so many were injured purely because of their beliefs is tragic enough. What’s equally tragic is that NZ will never be the same again. The thing I remember about the afternoon, aside from the carnage, is the dignity of those who survived the atrocity. There were no cries for revenge. Just sadness for those they had lost and that the event had happened and in Christchurch, NZ. The police acted quickly and it is to their credit they caught the perpetrator so soon after the crimes occurred. Ambulance staff, hospital staff and those from the Defence Force all stepped up. Watching the response I

certainly felt the agencies were in control. Politically, I was impressed by the quick grasp of the situation by Prime Minister Jacinda Ardern who spoke strongly and without notes. She gave the impression of being in control and said the words I wanted to hear. Likewise, Winston Peters and Simon Bridges were there in support. Politics were forgotten, we were one country. In addition, the media gave us information quickly, honestly and without fuss. We watched Mitch McCann fronting the early reports on TV3 and he did a hard job credibly and professionally. I thought Thomas Mead was superb giving reports from the Deans Avenue mosque. He was obviously upset by the atrocity but his professionalism kicked in. He was a credit to himself and TV3. Likewise, the young Christchurch crew of Holly Carram, Annabelle Tutia and Juliet Speedy were highly professional and informative. Covering death and destruction is difficult. I’ve done it. For those young reporters to step up as they did was quite amazing. They have great futures. Later in the day we had the Newshub big guns, the Gowers, McRoberts and Chan-Greens arrived. The coverage was excellent, albeit horrifying and gut-wrenching. So, an atrocity occurred far bigger and bloodier than anything that has happened in NZ ever. Our support services stepped up quickly and without fuss, our politicians showed genuine leadership and the media kept us

IMPRESSIVE: Prime Minister Jacinda Ardern grasped the situation quickly and spoke strongly.

The thing I remember about the afternoon, aside from the carnage, is the dignity of those who survived the atrocity. informed accurately, timely and without fuss. The people from Christchurch would have been rightfully appalled that again their life has been turned around. It was pleasing to see individuals and experts from outside Canterbury offering their assistance. Christchurch isn’t alone but they will inevitably bear the scars. What happens from here is anyone’s guess.

We know the Officials Committee for Domestic and External Security Co-ordination reported to Cabinet last Monday. We are told our firearms laws will change. I would respectfully make the point that it is not the firearm at fault it is the person pulling the trigger and make the additional point that some of the weapons used aren’t legal in NZ. Changing laws won’t change that. I was also a little surprised to read the Australian perpetrator had a NZ gun licence. In Wairarapa we have rigorous tests for people applying for or renewing a licence and I’d be interested to know how thoroughly the shooter was checked. Also, a retired soldier complained to the Dunedin police about the culture at a gun club the

shooter was a member of. He was ignored. I can’t think of anything we could change that would have averted the massacre but I’d be happy to be proved wrong. I am confused about why the person wasn’t on anyone’s watch list. By all accounts he didn’t have a job. He was in a hard right chat room. He had travelled to some hairy parts of the world where he would have seen many atrocities against Muslims. Where did he get his money? Our Muslim leaders had been complaining about harassment from those on the far right. Why were they ignored? I was also appalled by the statement from Australian Senator Fraser Anning claiming our immigration laws were at fault and need reform. Given the circumstances, any reform would be to ban Australians. So, an awful chapter in NZ’s history has happened and we won’t be the same ever again. I thought our emergency and support services acted incredibly professionally and our politicians with competent leadership, control and decorum. Our media were timely, sympathetic, accurate and professional. Finally, it was great to see the support our Muslim brothers and sisters received from ordinary, everyday Kiwis. Long may that continue.

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

Small things go deep in tragedy response From the Ridge

Steve Wyn-Harris

THE 44 minutes of appalling hatred and evil by one individual will have profound and longlasting impacts on the families, friends, community, Christchurch and this country for a long, long time into the future. Our innocence and naivety came to an end in that brief time and we will never be the same again. It will change the way we think about ourselves and the way others view and think about us. This massacre and the unfolding tragedy as names, faces and their life stories come to light will be a dominant feature of news cycles, which will be reignited when this person comes to trial. It appears that rather than being charged under the Terrorism Act, he will face 50 charges of murder

to deny him the opportunity to use the platform of a court to promote his twisted ideology. But it will be a long and gruelling trial and only prolong the trauma for those deeply affected. This crime was designed to divide but has had completely the opposite effect. Instead of being driven apart, Muslims and many different denominations have united with the catchphrase We are one. Many good things, starting with the bravery of people who gave and risked their own lives to protect others, have happened as a result of this tragedy, which does help to reaffirm the faith in human nature. Mian Naeem Rashid confronted the gunman outside the mosque in an attempt to stop him and was killed. There were several others who did the same. One survivor who showed incredible bravery was Abdul Aziz. He undoubtedly saved the lives of many people at the Linwood Mosque, which is why the toll was much less at that place. He was there praying with his four children.

He confronted the gunman, threw an eftpos machine at him then challenged him to chase him to take his focus away from the innocents in the mosque. Then, picking up a discarded shotgun with no ammunition in it, he chased the offender smashing his car window and seeing him flee and into the clutches of the two Lincoln policemen, who also showed great courage. There were many people like Nigel Gardner, who stopped his car and got out with the gunman still present and helped victims. That takes guts and shows an instinctive need to take care of a fellow human being. The first responders such as ambulance folk had the uncertainty of their own safety and were faced with horrific scenes but went about their work to save as many souls as possible. Then we have seen the immense outpouring of love, compassion, empathy and generosity from all sectors of society. Many of us have learnt a lot more about Islam and have a greater understanding and respect for how these people have

handled themselves in this terrible situation. To see several of them saying they forgive the perpetrator makes me feel ashamed of my own inability to do so.

There will be bans and restrictions and gun enthusiasts are going to have to accept this. Ironic it is a gun enthusiast who has brought this about.

Prime Minister Jacinda Ardern has been near perfect in her response and ability to articulate on behalf of the nation, as John Key was after the Christchurch earthquakes. It seems our political system has the knack of getting the right person in the right place for the time. Parliamentarians have cast aside political differences as we will see with the inevitable gun reform. If they get it right, as the

Australians did immediately after the Port Arthur massacre, it will be a good thing. Of course, farming and firearms are intertwined but there are few of us with military-like semi-automatics and it is yet to be seen how lower calibre semiautomatics will fare. There will be bans and restrictions and gun enthusiasts are going to have to accept this. Ironic it is a gun enthusiast who has brought this about. And then there have been the small things that have made a big impact. Shay Kenny, a homeless man with nothing to give but his time, stood on a Christchurch street corner holding his sign saying “We are all the same on the inside”. Andrew Graystone stood outside a Manchester mosque with his sign “You are my friends. I will keep watch while you pray”. As-Salam-u-Alaikum. Peace be unto 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 – March 25, 2019

31

A&P Show over for another year Meaty Matters

Allan Barber

WHAT a relief – the Warkworth A&P Show took place last Saturday, closely following the horrendous terrorist attack on Muslims in Christchurch, without adverse weather, traffic jams or any other problems. As I have written in Farmers Weekly previously, the annual A&P Show inevitably comes to a head on one day in the year, demanding careful planning, hard work and more than a bit of luck. This year, the occasion of the area’s 152nd show, the committee had tortuously arrived at a difficult though apparently simple decision to hold it on the third Saturday in March instead of the fourth weekend in January. The intention was obvious – to avoid declining crowds as a result of the appalling traffic heading north over Auckland Anniversary weekend and the mid-summer heat – but the change provoked a clash with the Horse of the Year Show in Hastings while any other date would have been in conflict with other A&P shows in the north. Things became simpler with the decision not to hold a cattle section because of the uncertainty over Mycoplasma bovis or an equestrian competition owing to the lack of somebody to take over from the retiring steward. That caused great debate among the committee and

members who couldn’t get their heads around the idea of an A&P show without cattle or horses but, eventually, reality took over. A majority realised there wouldn’t be a show at all if we didn’t try something different. So in June last year the new March date was fixed though we required permission from the Royal Agricultural Society before we could confirm it. The new committee was convinced it was possible to run a really good show without cattle and horses while retaining the traditional elements like shearing, wood chopping and sheep racing as well as providing free entertainment for children, kapa haka and cultural Pasifika demonstrations and good music on the main stage.

At 9am the tension was almost unbearable – would the public come to enjoy all the entertainment and events that had been arranged? We then had some good luck –Young Farmers Kaipara division asked if it could hold the northern region finals at the Warkworth Showgrounds on the same day as the A&P show and singer Jamie McDell said she was available and willing to appear. More good luck occurred with some new sponsors coming on board to help with the extra costs involved. To make up for the absence of livestock a great deal of effort went into attracting more goats to enter the various classes while the local miniature horse society volunteered to

run a programme to provide entertainment rather than a formal competition. That risked provoking the ire of the RAS in spite of Kumeu running the same type of event the previous week without complaint. Because of the date change it was a long way off sunrise when I set off for the showgrounds to meet the gate collection team, without which there would be no way of collecting money from the public, the main way the show generates its income. They took up their positions when it was still dark because the trade exhibitors were already arriving to set up, followed by goat and miniature horse owners as well as Young Farmers competitors who had an early start. By 8.30am the trade field was almost ready for action but first there was the health and safety briefing. I didn’t realise it at the time but our president who delivered the briefing told me afterwards it had gone extremely well, fortunately, because the Auckland Council health and safety representative said he had already closed down four events. If our briefing hadn’t come up to scratch the show would have been closed down before the first paying member of the public had come through the gate. At 9am the tension was almost unbearable – would the public come to enjoy all the entertainment and events that had been arranged? I suppose it’s the same every year but this year was worse because we had gone out on a limb, which could have seen us fall flat on our collective faces. Luckily, we didn’t have long to wait before the cars were queued at the gate, at times back out onto

READY: Singer Jamie McDell was available and willing to sing at the Warkworth A&P Show.

SH1, which put pressure on the gate staff but at least we knew we had plenty of people arriving. Between 10am and midday the crowds were pouring across the showgrounds, queuing for ice creams, coffee and pies as well as healthier options, looking at or even buying ride-on mowers, barbecues and cameras and enjoying the action on the stage. Wood chopping, shearing, goats and Young Farmers competitions were under way, each with an appreciative audience. Auckland Mayor Phil Goff and Agriculture Minister Damien O’Connor arrived though the mayor had to open the show on his own as Government ministers weren’t conducting official engagements because of the Christchurch events. McDell arrived after lunch and took to the stage after local bands Raw Jam and Otherwise Fine finished their sets. The crowd sat under the shade tent or stood in front of the stage to appreciate

one of New Zealand’s finest young singers and a successful day progressed peacefully towards its conclusion. When I went over to the shearers to collect the cash for the day, competition had just finished and the Coresteel Warkworth team had won the open competition. We had an early estimate of the gate receipts, which by 2.30pm already exceeded last year by a good margin, some of the crowd was still sticking around to enjoy the music and see if they could score a bargain and my wife had submitted the winning pumpkin on behalf of a neighbour. All told, it had been a very good day. Roll on 2020, as long as the RAS gives us permission to hold it in March.

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

Fed Farmers too slow on gun control Town Talk

Amy Williams

EVEN before they were banned, many farmers voluntarily surrendered their semiautomatics for destruction last week and the distant voice of Federated Farmers could be heard echoing that these guns are still needed on farms. At the time, Prime Minister Jacinda Ardern had pledged to change the gun laws. In some quarters the rural advocacy organisation has a reputation for being protectionist

and reactionary, but its first response to a potential gun law change felt even more backwards. Federation Farmers was out of touch with a country in mourning. Then the government moved quickly, banning military-style semi-automatics and assault rifles. These became illegal on Thursday afternoon. The same day, Federated Farmers put out a statement that softened its stance somewhat. They had listened to their members. They agreed with the government’s intention to toughen firearms regulations, and the ban. “This will not be popular among some of our members but after a week of intense debate and careful consideration by our elected representatives and staff, we believe this is the only practicable solution,” Feds Rural Security

spokesperson Miles Anderson said. “We are trying to tread a responsible path. The wrong guns can’t be allowed to get into the wrong hands.” Good on Feds for changing their tune, because from what I’ve seen farmers support tougher gun control. Even before the ban, some were surrendering their semiautomatic guns. Masterton farmer John Hart’s decision to voluntarily hand-over his own limited-power semi-automatic rifle went viral on Twitter last week. “Until today I was one of the New Zealanders who owned a semi-automatic rifle. On the farm they are a useful tool in some circumstances, but my convenience doesn’t outweigh the risk of misuse,” he tweeted. “We don’t need these in our country.” With more than 60,000 likes a

few days later, Hart wasn’t alone. So why did Federated Farmers initially take such a defensive stance, saying it didn’t want kneejerk legislative changes to our gun laws? A nationwide petition with 70,000 signatures supporting changes to gun laws was also given to politicians last week, but Federated Farmers said of those, firearms licence holders would be in the minority. But would they? It seems public sentiment supports changes to gun laws to bring them in line with the much stronger laws across the Tasman, where semi-automatics are banned and there is a national gun register. Until last week I didn’t know much about firearms licences. And in the last week I’ve made up my mind that semi-automatics are a convenience for farmers, not a necessity.

Knowing that someone on my street could have a small arsenal of weapons they’ve legally bought makes me break into a cold sweat. The fact no authorities know where most of the 1.5 million guns in this country are, is staggering. I’m relieved military-style semiautomatics are now illegal. But after the terrorist attacks in Christchurch, public sentiment has turned against even the limited power semi-automatic guns. And for good reason. A few doors down from our house in urban Auckland, we have Muslim neighbours who visit the local mosque every Friday. They’ve been too afraid to leave their house since the terrorist attacks in Christchurch. The day after, they tended their garden while neighbours popped in to see how they were doing, leaving in tears at the injustice of it all.


32 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

On Farm Story

Spud family name’s on the packet James Bowan grows potatoes for a nationwide paddockto-packet potato chip brand. Nearly a decade after the business started he’s still happiest in the paddock. Tim Fulton reports.

T

HE Bowan family farms more than 600ha at Orari in South Canterbury. Down the road at industrial Washdyke, in the slipstream of Timaru, the family also runs the Heartland chips processing plant. Fallgate Farm includes 250odd hectares of spuds, 320ha of combinable cereals,150ha of grass seed and a few other bits and pieces, especially seeds. It adds up to a lot of business from farm to shop shelf but James isn’t bothered with the trappings of corporate hierarchy. He admits, reluctantly, to being in charge of arable production. “I suppose I’m ... I don’t know how you’d word it but at the top of the ladder maybe, near enough to the top and take care of the day-to-day running of the farm. Overseeing everything that goes with that but still fortunate enough to have a good sound fella to bounce ideas off. It’s good to have him round.” The sound fella is dad Raymond, who set up Heartland nine years ago in partnership with his wife Adrienne when they bought the old Bluebird factory. Almost immediately the couple

won a major industry award, the Lincoln University South Island Farmer of the Year. Under James’ watch most of Fallgate’s frying potatoes go to the Heartland plant, which his sister Charlotte has run for the past five years. The Bowans also supply potatoes to Mr Chips and Talleys. James says it’s neat being part of an integrated, family-run business. “I suppose at the end of the day you get quite a buzz. You walk down the supermarket thinking ‘I grew that spud that’s in that packet of chips that they’ve got’. And you know it’s yours because it’s your product, grew it from start to finish.” Raymond is still about, keeping everyone on track and thinking up new ideas. “He’s here on the farm every day, still lives on site, keeps

AND LOVING IT: James Bowan thinks he’s very fortunate to be working on the land then gets a buzz when he sees the results of his work on supermarket shelves. Photo: Stu Jackson

mentioning he’s going to retire but I can’t see it happening to be fair. He’s just one of those breeds that enjoys work … gets satisfaction out seeing and developing new opportunities.” Apart from having access to Raymond’s IP, James makes the most of deep Orari soil and water

THEY’LL DO NICELY: The Bowan family controls its own destiny with the spuds grown on the family farm destined to make chippies for their Heartland brand. Photo: ANZ

flowing around and underneath Fallgate farm. “I know dad used to pick a lot of potatoes by hand for a neighbour when he was a younger fella. “It’s in a part of the country with good, free-draining soils and a pretty reliable rainfall. We’re also pretty fortunate we’ve got some pretty good underground aquifers through here and the Rangitata South Scheme’s here now to help top us up.” Still, the farm’s not bulletproof. James likes to cut cost complexity but has come to realise he can’t master every agricultural challenge. He shares arable farmers’ omnipresent fears about crop disease, loss of access to water and over-regulation. “We’ve had the potato salad disease creep in. That’s something that we’ve got to live with and keep under control chemically and then mop top virus sneaked into Mid Canterbury last year.” Mop top hasn’t made it to South

MAKING EVERY DROP COUNT ZIMMATIC AND GROWSMART ARE REGISTERED TRADEMARK OF THE LINDSAY CORPORATION. © 2019 LINDSAY. ALL RIGHTS RESERVED.

Canterbury yet and James reckons it’s probably manageable “but it’s something that would put a little thorn in your side, I suppose”. Another tender spot for the farm is the possibility of water taxes on irrigation. “I think there’s gonna be plenty of pressure shortly with these taxes. For a potato I don’t think there is an alternative. We wouldn’t get our yields and wouldn’t get the quality potato, the size that we want.” James says the summer of 201819 shows how vulnerable a farm like Fallgate would be to punitive water policy. “This year was relatively kind moisture-wise before Christmas but then we came under a lot of pressure come late January with that heat and without irrigation these crops would be dead.” The heat did have an upside though. It proved the value of the farm’s new variable rate irrigation system. James jokes he probably bought


On Farm Story

I suppose at the end of the day you get quite a buzz. You walk down the supermarket thinking ‘I grew that spud that’s in that packet of chips that they’ve got’. And you know it’s yours because it’s your product, grew it from start to finish. James Bowan Fallgate Farm it after “a bit of pressure from the salesmen” but sings its praises. “It’s quite valuable on this property because we’ve got such variable soil, heavy ground to riverbed. Then changing crops from potatoes to wheat and barley you can set it up and it’ll irrigate to where you want it to, not everywhere that people think it should be. “It probably means better utilisation of water because you’re putting it where it’s needed. You’re not pouring water on top of ground that’s already waterlogged and you’re putting it in the dry parts of the field.” James expects the farm will benefit even more once he and the staff get their heads around it fully, especially as regulators tighten farmers’ use of water. “If you can utilise things better and water’s becoming precious you’ve got to put it and use it conservatively. VRI will help with that.” The Bowans are big all-round on traceable monitoring of inputs and product, knowing chip-lovers want to be sure of what they’re getting. “We’ve probably been traceable for a long time but I think the general public would like it too. “You know, seeing where Heartland’s gone, I believe that’s because they know where it’s come from and that’s probably not foreign-owned as well.” Time and money spent on product assurance pay back many times over, James says. “Traceability has definitely got a place in this country and people seem to like to know more and

more about the grower who’s producing their product or you know what they’re picking off the shelf. So, yeah no, it’s got a vital role, I think, more and more in years to come.” Other landmines in Fallgate’s path include the need to change chemical treatments because of new environmental rules and social pressure to cut the use of fertiliser “That’s something you do think of all day so having some pretty sound advice and knowledge behind you or beside you is pretty valuable. Unless you’re doing that all day every day you’ll never be on top of it.” James arms himself with advice from Duncan MacLeod at Mid Canterbury-based Seed and Field Services. You never have to go far for help in NZ arable,” he says. “To be fair, across cereals and the potatoes and we talk and communicate most days, bounce ideas off each other. We’re pretty lucky on that.” One of his biggest other administrative prickles is finding and keeping good staff. “You know you get your good guys but you also get guys that think they’re good as well,” he says with a laugh. Most of his eight staff are locally-raised and live within 20 minutes of the farm. The Bowans also have a couple of foreigners on the regular payroll plus a steady supply of backpackers picking on the spud harvester. “You do get yourself a bit worked up at times about finding staff but somebody always comes through the door. I guess if it comes to that we’re pretty fortunate.” In a business as big and varied as this one, the pressure to grow, supply and process never really lets up. By the end of February Fallgate has been digging fresh potatoes for about seven weeks. In March the staff start digging storage potatoes, to be “tucked away so we can process for 12 months of the year.” That job should be done by the end of May, weather permitting. Supplying the market on-time and to specification is a neverending challenge. “You always have a pride in what you’re doing. You know you always like to supply a good

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

IT STARTS HERE: Ray Bowan, left, and son James check the soil that will grow the potatoes their family firm will turn into potato chips. Photo: ANZ

product, whether it’s yourself as the end user or somebody else because it’s your name on that product.” For all that pressure, James reckons it would be hard to find any better job than his. He takes pride in growing the crops, interacting with staff and meeting interesting arable people from all walks of life. “Yeah, I do love farming. If I didn’t love it I wouldn’t be here. It’s quite a simple choice really. I’d say I’m very fortunate to be where I am today. Yeah, very lucky and still to have the support of parents.” He’s pretty happy with the size of the operation but expects there will be improvements to infrastructure and irrigation.

“We’re going to change and go more ... that sounds like there’s something bloody wrong doesn’t it ... but, but we’ll go more down that track with VRI to get better utilisation out of the water.” He particularly wants to get more production from the lighter ground now they have removed fences. “It’ll involve another irrigator at some stage I suppose but there’s some capital costs on that.” After a moment’s hesitation, James reassures himself he’ll follow through on that job. “No, bugger it, there’ll be more than just an irrigator and VRI. I’ll be around for a while hopefully. I’ve young fella who’s pretty keen too so I better hang round and

Growsmart® Precision VRI is the world’s most environmentally savvy precision irrigation system. It’s an efficient method for saving water because you apply exactly the right amount of water needed to specific areas of your land. You can target irrigation for certain soil types, avoid watering unproductive land such as waterways and wetlands, and water around obstacles underneath your pivot like buildings, tracks, drains and roads. With Growsmart® Precision VRI, you will make a positive contribution to the world’s food bowl, while saving New Zealand’s vital natural resources. Find your Zimmatic® dealer at your regional Field Days and find out how Growsmart® Precision VRI can work for you or visit www.growsmartprecisionvri.com

33

give him a chance.” By young fella, he means family, his wife Jess, Archie, 10, Maisie, 8, and Greta, 5. Life’s about having three kids at school and making the most of a farming life. “I’ve got a lovely wife and three great wee kids. Well they’re not wee any more. They’re growing up. Archie’s 10 and he’s just keen as mustard out here. Any chance he gets he’s in the yard seeing what the men are doing.” Just quietly, the idea of having one of the family carry on the family business does pop into James’ imagination now and then. “I’m not gonna push Archie into it and if he wants to do it, that’s great. But I always like to think we can keep it in the family one way or another. And as long as regulations don’t get too carried away I think farming will carry on being pleasurable.” Raymond never pushed any of his kids to follow in his footsteps, James says. “You know, the successful guy he’s been, I suppose you do feel there’s a little bit of pressure there but I think we’ll be fine.” Charlotte had a career in teaching before managing the Washdyke plant and James says it’s reassuring to have that family link back to the farm. “You know more of what’s happening on site in there and being a family-owned factory you get better, well, more honest feedback on what’s happening. You always know how those other sales are going.” On that front, by the way, James can confirm it’s all too tempting for the owner of a chip factory to snaffle a bag for a snack. “I used to do it but I’m trying not to now. It’s a bit hard when you go to the factory for a look and you sort of feel you may want to take a packet home.”

>> Video link: bit.ly/OFSbowen


World

34 THE NZ FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Hogan warns British plan illegal BRITAIN’S planned import tariffs, to be applied in the event of a no-deal Brexit, are illegal under World Trade Organisation rules, European Union agriculture commissioner Phil Hogan says. The schedule of imports released by the Britain’s International Trade Department this month would see full European Union tariffs applied to sheep meat, reduced tariffs for beef, dairy and poultry and zero tariffs for cereals and eggs. The chances of them coming into play are thought to be slim following the vote by Parliament last week to reject leaving the EU without a deal but that still remains the default position legally and might yet happen. But speaking to journalists in Brussels after this week’s agriculture council, Hogan said the tariffs proposed by the United Kingdom will not meet WTO rules. He singled out beef and cheese as being particularly vulnerable to import tariffs, especially for exporters in France, Germany, Belgium, the Netherlands, Ireland and Denmark.

“I believe that these particular proposals are illegal under WTO rules and the fact that the UK used the word temporary means they probably accept that as well,” he said. “But there was a political dynamic requiring the UK to make these proposals last week and there is a long way to go in terms of agreeing a schedule of tariffs that would be acceptable under WTO rules. “I would point out also that the EU, in the event of a no-deal Brexit, will be introducing our external tariffs as well,” he said. The Farmers Union of Wales has also questioned the tariffs’ legality, in particular the notion there will be a tariff exemption for imports to Northern Ireland from the Republic of Ireland. “If the government said it was going to apply tariffs to all imports except those entering the UK from Germany, without any form of trade deal in place, this would clearly be a breach of WTO rules,” Farmers Union of Wales policy head Nick Fenwick said.

“The same principle applies to imports or movements of goods from any EU member state, including the Republic of Ireland – irrespective of whether the border is on the land or in the sea.” Fenwick said the government’s plans make no sense and are effectively a back-door for smugglers. Meanwhile, egg producers have expressed outrage that the government’s contingency plans for a no-deal Brexit would afford no tariff protection for their sector. In an open letter to Environment, Food and Rural Affairs Secretary Michel Gove the British Egg Industry Council, the RSPCA and Compassion in World Farming have said that could pave the way for imports of cheap eggs from barren battery cages – systems that have been illegal in the UK since 2012. “This is extremely damaging for animal welfare and a serious breach of trust by a government which seems to have lost its way on hen welfare,” BEIC chairman Andrew Joret said. UK Farmers Weekly

DON’T DO IT: European Union agriculture commissioner Phil Hogan has warned Britain its post-Brexit tariff plans are illegal but confirmed the EU also plans to introduce new tariffs.

Irish get grass tick

Japan opens up for British meat BRITISH farmers have been told to expect a spike in carcase values as beef and sheep exports get the go-ahead from Japan. The agreement followed a two-decade ban since the BSE crisis and was signed following successful negotiations between Prime Ministers Shinzo Abe and Theresa May. It is expected to boost the United Kingdom’s beef and lamb sectors by £75 million and £52m, respectively, in its first five years. Agriculture and Horticulture Development Board international market development director Phil Hadley said the deal had started 2019 on a high but it will be a slow start for UK producers because of competition with Japan’s high-quality Wagyu beef. “Japan is a huge market. “Beef tongue is really valued and there is huge opportunity there as well as with the export of flank meats. “All those markets have a particular interest in particular cuts of meat so it adds value by raising the value of cut X or cut Y and, therefore, raising the value of the whole carcase. “It adds to our ongoing pork exports to Japan and gives the UK opportunity to export the full three red meats.” The industry is set

to get the ball rolling at Tokyo’s Foodex Japan 2019 event at the beginning of March, with the Food Standards Agency working with individual plants to find out if they have met Japanese specifications. It follows a strong year of global successes for UK exporters with China lifting its ban on UK beef, Taiwan opening its market to pork and India preparing to import sheep meat. “We expect shipments to start in the next couple of weeks,” Hadley said. Trade Secretary Liam Fox said the deal is another example of his department’s trade negotiators banging the drum for top-quality produce. It is expected to be particularly good news for Welsh farmers, offering Hybu Cig Cymru and red meat processors the opportunity to raise the profile of Welsh produce to Japanese consumers. Welsh Government Minister for Environment, Energy and Rural Affairs Lesley Griffiths said “The timing of this announcement from Japan is to be welcomed given the uncertainties Brexit presents, opening an additional avenue for export outside of the European market.” UK Farmers Guardian

LESS MONEY: Farm incomes in Denmark last year lost most of the gains made in 2017 as European farm incomes dropped.

European farming incomes fall EUROPEAN farmers’ incomes for 2018 dropped after a record increase in 2017, with extreme weather conditions across several member states hitting returns. Real agricultural income in 2018 fell by 3% on 2017, with net entrepreneurial income falling by 7%, according to the latest figures from Eurostat. European farming group Copa-Cogeca said at first glance the data reveals a mixed picture. While Denmark lost most of its income gains from 2017 incomes in Slovenia had greatly improved after a 15% drop in 2017. Sweden, Lithuania, Belgium and others saw drops in income but France, Finland and

Italy managed to largely maintain the status quo. This underperformance is presumably linked to the extreme weather conditions faced by several member states, from severe droughts in northern Europe to floods in mid-October in southern Europe. Copa-Cogeca secretary general Pekka Pesonen said “Statistics are starting to reflect the consequences of the episodes of severe drought and flooding on farms. “This is all the more worrying as we already know that farmers’ income for 2019 will be impacted. Indeed, seedlings in many regions across Europe have been harmed by such extreme weather conditions.

“It is key that we and our governments draw lessons from this crisis. “Member states should now fully implement all risk management tools at their disposal. “For its part, the European Commission should better anticipate and take swifter action.” Copa-Cogeca said a sharper decline in incomes was prevented only by a gradual reduction of the workforce, which decreased by 1.5% in 2018. Meanwhile, farming input costs including seed, energy, fertilisers and plant protection products, continue to rise steadily, increasing the pressure on all European farmers for 2019. UK Farmers Guardian

IRISH beef, sheep and dairy farmers can now get certification from the Pasture-Fed Livestock Association for 100% grassfed meat and dairy. The organisation’s Pasture for Life mark certifies production from entirely pasture-based beef, lamb and dairy farms. Under the scheme, animals can be fed only fresh or conserved pasture, with no grains, maize or soya. “We recognise Ireland’s ability to grow and feed fantastic grass and are keen to extend our certification service to Irish farmers and processors amid growing interest and the potential for future trade opportunities,” association general manager Russ Carrington said. “We are keen to link the grassland expertise in Ireland with our wealth of experience of animal, pasture and soil management and provide the opportunity for Irish farmers to engage with our thriving PFLA community.” The Organic Trust will oversee and deliver audits on behalf of PFLA and they can be combined with organic audits if farms are already certified with the trust. In Britain that process is managed by certification control body Organic Farmers and Growers. UK Farmers Weekly


World

THE NZ FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

35

Experts: Promote health benefits MEAT and dairy producers need to communicate the nutritional benefits of their products as free-from alternatives tempt healthconscious consumers. Alternatives have been growing strongly with much noise about veganism and campaigns aimed at demonising red meat, in particular. Innovation and showcasing the health benefits of both is key to keeping the competition at bay as food giants continue to launch new products. Now Cheshire dairy farmer Andy Venables has launched Mission For Milk, an initiative to raise awareness of the health benefits of milk and change the way it is marketed. Health concerns are encouraging shoppers to pick up more items from the freefrom range, including meat and dairy alternatives. Kantar Worldpanel consumer insight director Charlotte James said much of what people choose to eat is based on health and there has been a lot of innovation in the free-from category. And it is not just people with specific dietary requirements, such as coeliac disease or lactose intolerance, buying free-from food. “Health is just one factor.” Kantar’s research shows a third of people choosing a meat-free product had not intended to but decided in the store to try it. With the amount of vegans and vegetarians in the United Kingdom very low, many of the people buying alternatives are meat eaters. Agriculture and Horticulture Development Board senior consumer insight analyst Susie Stannard

said people tend to think vegan means it is a healthy option. “People think it is plantbased and plants are healthy. “If you look at some of the nutritional stuff it is not actually that great.” While much attention has been paid to younger people in London following health trends then weighing up veganism, James said a large proportion of the growth in free-from products is coming from older shoppers. “It is tied in with the health trend and it is coming from across shopper groups. “I had thought it would just be London but, actually, growth is coming from every single region.” And it has had some impact on meat and dairy sales but not as much as some news articles might lead people to believe. “The meat and dairy industries are still massive and for a lot of people still a part of everyday life,” she said. Looking at how meat can fight back, she highlighted the demand for healthy food. “It is very high protein and naturally healthy but you do not see the industry as a whole talking about that very much,” she said. Stannard said cereals often have claims on the packet about how much protein they contain but levels in meat are well above them. Nutritionist and meat advisory panel member Dr Carrie Ruxton said one of the health benefits that should be communicated is the quality of the protein in a proteinobsessed society. She gave the example of younger people looking for protein for satiety and to

support sport and exercise. But they are reaching for processed products. “Meat has got all the amino acids. You do not need to think about mixing your proteins as you get it all in one food,” she added. She highlighted other minerals such as iron, with many women and girls deficient, and zinc and iodine, when there is a bit of an iodine crisis. “Many young girls are actually deficient in iodine because they are shunning milk and meat,” Ruxton said. But people are not aware of the health benefits of meat, with red meat constantly attacked in the press using single United States studies with results that cannot be reproduced in a controlled trial. The alternatives are very inconsistent in what they offer, with some offering a lot of nutritional value and others not at all suitable for a full meal. Ruxton said the industry needs to reach out through public relations and make contacts in the local news and local radio and get to know reporters. “Consumers are looking for innovation,” she said. Environmental concerns are also driving shopper behaviour but independent livestock consultant and Februdairy social media campaign founder Dr Jude Capper said it is not as simple as it seems. She often hears the argument people are encouraging a switch to alternatives such as soy, rice and almond drinks because cattle are killing the planet. “However, what is often missed is that plant juices

TELL IT: The health benefits of meat and dairy foods that provide all protein and amino acid needs in a society obsessed with proteins, nutritionist Dr Carrie Ruxton says.

simply do not have the nutritional value of dairy products. “Although they may have a lower carbon footprint they also provide a very limited nutritional profile,” Capper said. She highlighted a Swedish study that compared the ratio of nutrients to greenhouse gas emissions and found dairy milk is by far the best. Transport, water use, land use and biodiversity also need to be taken into account. “Deforestation is linked to soy production and almond production has a considerable water footprint, almost all of which has to be provided by irrigation,” she said. UK Farmers Guardian

If you can’t beat ’em ... DIVERSIFYING into freefrom foods might make sense for some meat and dairy processors and there could also be opportunities for some more niche farming products. Processor ABP caused anger among farmer suppliers when it launched its first fresh meat-free brand, Equals, into Asda supermarkets. But the company is already involved in the market, supplying supermarket own-brand products. Other agricultural giants are keen to take a slice of the

market, with Alpro, a dairy alternative brand, owned by dairy giant Danone. Agriculture and Horticulture Development Board consumer insights manager Susie Stannard said “Putting out a plant-based range is sensible. “But it does not mean you move away from your core business.” ABP said its core business will remain beef but it is reacting to consumer trends. Individual farms might find there are opportunities to develop but a radical shift is not needed. “If you have a farm which

is suitable for growing arable there might be niche opportunities,” Stannard said. She gave the example of quinoa, a grain that has increased in popularity and can be grown in some parts of Britain. “That is the sort of thing which could be an interesting story – different grains and plant types but with a British spin,” she said. Livestock consultant Dr Jude Capper said the industry simply will not get anywhere by publicly denigrating alternatives but she is not convinced there

will be huge shifts to plantbased foods or fake meats. “Perhaps it is better to embrace the alternatives and then point out how lovely a vegetable burger can be if it is served with some bacon and cheese,” Capper said. She spends a lot of time extolling the benefits of milk online and talking to those against dairy farming. “Sadly, a single YouTube video, regardless of when or where it was shot, can be taken as proof the dairy industry is bad, so we face a constant battle,” she said. UK Farmers Guardian

agrievents Mid-Canterbury Branch of Black & Coloured Sheep Breeders Association Annual Conference at The Redwood 340 Main North Road, Redwood. Open Day Friday 15th April 2019. Fleeces, Sheepskins, Knitwear for sale. Contact: Georgie on 03 325 1288 for more information.

0076663

RMPP Action Network – Facilitator training courses For rural professionals or farmers looking to run an Action Group under RMPP Action Network. No course fees. Register at www.actionnetwork.co.nz/page/training RMPP Action Network Fundamentals and Extension Design (two-day workshop) 2019 course dates: 27 & 28 March – Palmerston North

200x71.67

RMPP Farm Business Transition and Succession Workshops Register now for the upcoming series of workshops on the transition and succession of the family farm business, aimed at helping sheep and beef farmers navigate what can often be a difficult process. Participants are required to attend three half-day workshops run over a three to four month period, followed by a one-on-one clinic. The workshops are fully funded by RMPP. Check out www.rmpp.co.nz for locations, dates and to register. For more information email training@rmpp. co.nz or call 0800 733 632. RMPP Aspiring to Farm Business Ownership Workshop This one-day workshop covers the vision, values and strategy for young farmers or farming couples aspiring to farm business ownership through purchase, leasing, share-farming and equity partnerships. Check out www.rmpp.co.nz for information on locations, dates and to register. This workshop is fully funded by RMPP. For more inform-ation email training@rmpp.co.nz or call 0800 733 632.

Should your important event be listed here? Phone 0800 85 25 80 or email adcopy@globalhq.co.nz


IT’S ALTOGETHER BETTER IN THE

The Autumn 2019 edition of Country is out now, with a fresh line-up of the best farm, specialty and lifestyle properties for sale altogether in one place. We also try to see the woods for the trees in the quest to meet the government’s “one billion trees” target; take a look at finance options in the farm arena and discuss the value that farm managers can add to the sale of a property. Plus we check out pest control on lifestyle blocks and talk to honesty box stallholders about their operations. For your copy of Country magazine, including the latest insights and editorial content on key topics of interest to the rural property sector, call 0800 BAYLEYS or view online. Your search for something altogether better starts here.

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

Not easy being green

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

Pest patrol and control

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

FEATURING

91

#1

RURAL REAL ESTATE BRAND

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

bayleys.co.nz/country LICENSED UNDER THE REA ACT 2008

Residential / Commercial / Rural / Property Services


Otoko 5022 Matawai Road

Parihohonu Station; Emerald of Otoko Held in the same family since 1892, Parihohonu has long been regarded as the emerald of Otoko - one of the Gisborne region's premium farming districts. 748.5 hectares in size, Parihohonu is nestled in a very sheltered, mostly northerly aspect basin with its own micro-climate. Fenced into 47 paddocks, the farm has excellent natural water from creeks and springs, some of which are reticulated to troughs in many paddocks. The station has a very appealing balance of contour with significant portions of tractor country, which have been cultivated and resown in superior pasture species or are planted in feed crops. Parihohonu has three homes; the main homestead has four bedrooms and is set in manicured grounds and gardens featuring magnificent specimen trees. There is a second three bedroom manager's home and another older three bedroom home.

bayleys.co.nz/2751256

Tender (unless sold prior) Closing 4pm, Wed 17 Apr 2019 10 Reads Quay, Gisborne View by appointment Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz James Bolton-Riley 027 739 1011 james.bolton-riley@bayleys.co.nz MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Opoutama 1001 Tunanui Road

Tunanui Station - in a league of its own At 2058ha Tunanui Station combines superb scale with spectacular aesthetics. Located just 66km from Gisborne and 48km from Wairoa, the farm has been meticulously managed, both in its former sheep and beef days, moving more recently to 100% bull beef trading. Quality infrastructure provides for ease of management. Exceptional natural water combined with robust reticulation and generous annual rainfall enhance the operation. Access throughout the hill country to the approx. 80ha of flats is heightened by Tunanui Road, a public road. There is an abundance of hill country with a development programme in progress, adjoining the wide-ranging flats. Balanced contour, and attractive scenery with well presented homes across the farm, the main homes are positioned to take in the sea views. A rarely found farming and recreational jewel.

Tender (unless sold prior) Closing 4pm, Tue 23 Apr 2019 10 Reads Quay, Gisborne Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz James Bolton-Riley 027 739 1011 james.bolton-riley@bayleys.co.nz

bayleys.co.nz/2751249

MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz


NEW LISTING

Water supply not located on the property

Tutira 502 and 629 Matahorua Road

Self contained 364ha dairy with water and rainfall A must view with free draining ash soils, reliable summer rainfall, a fantastic natural water source and huge potential! Located in the reliable Tutira farming district, approximately 49 kilometres north of Napier City and only five kilometres from the Tutira primary school and community store, is this 364 hectare self-contained dairy unit, in four titles, which benefits from a legal easement to the fantastic natural water source of Lake Opouahi, a fenced kiwi sanctuary. A very well set up property boasting a 2005 built 50 bail rotary, underpass, three quality dwellings, cottage and plenty of easy contour with huge potential to cultivate more land. On target to achieve 180,000 kilograms of milk solids from 550 cows. Retiring vendor is providing a fantastic opportunity to purchase a well set up farm in a great farming environment. The farm is ready to take to the next level.

bayleys.co.nz/2851576

Tender (unless sold prior) Closing 4pm, Tue 16 Apr 2019 17 Napier Road, Havelock North View by appointment Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Gavin Franklin 027 427 8000 gavin.franklin@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Eketahuna 810 Pa Valley Road

Location with potential This property has been in the Morrison Family since 1915 and is now presented to the market ready for a new owner to take advantage of all its potential on offer. The farm is made up of 323ha of rolling to medium steep hill country and is complemented with flats at the front and rear of the property. A central laneway, supported by a series of satellite yards, runs almost the entire length of the property. The farm infrastructure consists of a five bedroom home, four-stand woolshed and covered yards. This property is located about 15 minutes to Pahiatua and Eketahuna, 35 minutes to Masterton and 45 minutes to Palmerston North. In what is regarded as a predominantly 'safe' farming area, this property poses a wonderful opportunity for a first farm. Available for inspection from beginning of April 2019.

bayleys.co.nz/3060628

bayleys.co.nz

Tender (will not be sold prior) Closing 4pm, Tue 30 Apr 2019 186 Chapel Street, Masterton View by appointment Lindsay Watts 027 246 2542 lindsay.watts@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008


NEW LISTING

North Canterbury 12 Mendip Road, Parnassus

One Tree Hill This 981.5ha property is an absolute stand-out in all respects, with genuine upside still available from both irrigation, forestry and carbon. Currently dry-land, the property runs approximately 9,000SU of deer, cattle and sheep. There is a balance of contour and aspect, good shelter, an irrigation consent of 48 l/sec which is being renewed and a very high standard of subdivision, lanes and infrastructure, including homestead, managers house and cottage. The excellent subdivision ensures ease of management and allows all blocks to be mustered by one person. It is a well-balanced breeding and finishing unit with warm tussock hill country through to fertile flats and a significant area of finishing land. The property is only 15 minutes drive from schooling and services at Cheviot and around one hour 40 minutes from Christchurch City. A spectacular property.

bayleys.co.nz/559690

For Sale by Deadline Private Treaty (unless sold prior)

4pm, Tue 30 Apr 2019 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Peter Foley 021 754 737 WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

NEW LISTING

Boundary lines are indicative only

Gordonton 819 Woodlands Road Blueberries - super fruit of the future Close to Hamilton, in the sought-after area of Gordonton, is this great 8.8801ha (more or less) lifestyle property with a built in business. The block is in two titles with a lovely modern five bedroom home. Features include a huge highly speced kitchen with scullery, open plan living and dining, two bathrooms and double garaging. The lounge flows out onto a sun-soaked deck wrapping around three sides of the home. The property is currently used as a commercial blueberry growing operation with eight canopy hectares and in excess of $1,000,000 turnover. It comes complete with plant, machinery and personnel to run the operation, making this a grand lifestyle opportunity with all the hard work done or being done for you plus an unbelievable income stream.

bayleys.co.nz/814861

Morrinsville 53 Settlement Road 5

2

2

Asking Price $5,500,000 + GST (if any) View by appointment Mike Fraser-Jones 027 475 9680 mike.fraserjones@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Premium address Quality blocks are hard to find. This 42.2846 hectare (more or less) property, situated in the highly sought after area of Kereone, is central to Morrinsville, Matamata and Hamilton. There is a good balance of flat to gentle rolling contour with a silty loam soil type and aesthetically appealing trees in most paddocks. An added bonus is a sand mine providing race and trough maintenance material. Currently the property has been used for heifer grazing. Support buildings includes a 3 bay gable shed with power and concrete floor, an O’Neill half round barn and an old dairy shed used for stock handling. The beautifully elevated dwelling is an older style weatherboard three bedroom home. This property really has everything going for it with beauty and location.

3

1

Auction (unless sold prior) 11am, Tue 16 Apr 2019 65 Arawa Street, Matamata View 12-1pm Tue 26 Mar Mike Fraser-Jones 027 475 9680 mike.fraserjones@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/2310337

bayleys.co.nz


Boundary lines are indicative only

Matamata 34 Te Poi Road

Okoroire 776 Kakahu Road

Prime land, prime location

Unique scale and contour

This block offers it all - location, options and lifestyle wrapped into one well-presented property. Currently run as a dairy farm with the adjoining land, a multitude of opportunities are available with the land easily lending itself as a great calf rearing property, grazing block, boutique equine, cropping or dairy support. The long rectangular block is contained within two titles and comprises of 55.7 hectares of rich flat farming land. Complemented by two dwellings and a full range of farm support buildings. This picturesque property enjoys great road frontage and is dotted with established trees and boundary hedging, a rare offering in this prime location - offering a myriad of possibilities for astute purchasers.

Auction (unless sold prior) 11am, Thu 11 Apr 2019 96 Ulster Street, Hamilton View 11am-12pm Wed 27 Mar or by appointment Sam Troughton 027 480 0836 sam.troughton@bayleys.co.nz Peter Kelly 027 432 4278 peter.kelly@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

This 246Ha (more or less) premium drystock property has been a family farm for 92 years and comes to the market in good heart in the reputable Okoroire district. Presently grazing over 1,000 cattle and cropping 24ha of contract maize. Easy access on gentle contour Tirau ash soils that could suit a variety of land uses. Fenced into 86 paddocks with considerable earthworks and drainage to lowland areas and divided by the Kakahu Stream that is titled and fenced off to council ownership. Cattle yards are in good order with a crush plus scales and water is from a central bore. There's two well-maintained homes, an older homestead and plenty of shedding. Seldom does an opportunity arise to secure this size property in such a sought after locality.

bayleys.co.nz/2400063

bayleys.co.nz/2400056

Marton 1338 Makirikiri Road

Tararua 121 Huia Road, Pongaroa

Rangitikei finishing block Here is an opportunity to walk in and continue farming a well producing quality farm of just over 173ha in the heart of the sought after Rangitikei district, renowned for its high yielding cash crops. The quality land suits many forms of agricultural and horticultural production. Very handy location only 13km from Marton, 24km from Wanganui and 45km from Palmerston North. Complete with a three stand woolshed that has a night pen capacity for 500 sheep, a good set of sheep and cattle yards as well as a very big workshop and implement shed. The sun-drenched three bedroom, older cottage, sits in established grounds. The property has some established shelter belts, pines and other trees, as well as three Manuka gullies that are suitable for bees.

bayleys.co.nz/3100177

bayleys.co.nz

3

2

For Sale offers invited by (unless sold prior)

4pm, Wed 17 Apr 2019 49 Manchester Street, Feilding Andrew Bonnor 027 941 7630 andrew.bonnor@bayleys.co.nz Grant O'Shanassy 027 643 6545 grant.oshanassy@bayleys.co.nz MID WEST REALTY LTD, LICENSED REAA 2008

Auction (unless sold prior) 11am, Thu 11 Apr 2019 96 Ulster Street, Hamilton View 12-1pm Wed 27 Mar or by appointment Neville Jacques 021 774 190 neville.jacques@bayleys.co.nz Glenda O'Sullivan 027 222 8119 glenda.osullivan@bayleys.co.nz SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Farming, forestry, honey, hunting Bowood is a well presented 500ha breeding property with desirable contour, strong infrastructure, and alternative income potential to deliver premium returns. Located in the Pongaroa District, 40 minutes from Pahiatua and 15 minutes from Pongaroa. This property has been well-farmed, maintained and regularly fertilised. The contour ranges from easy/medium hill to steeper country and has been subdivided into 43 paddocks with great tracks, large dams, new covered yard complex and new cattle yards alongside. Included is a three bedroom home with a great outlook. 70ha of Manuka/bush is generating income from honey and providing hunting for red deer. There is also 26ha of mature pine plantings which provide further income opportunities.

bayleys.co.nz/3060615

Tender (unless sold prior) Closing 4pm, Wed 10 Apr 2019 186 Chapel Street, Masterton View by appointment Lindsay Watts 027 246 2542 lindsay.watts@bayleys.co.nz EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008


Real Estate

FARMERS WEEKLY – March 25, 2019

farmersweekly.co.nz/realestate 0800 85 25 80

41

Support block

South Canterbury 163 Dog Kennel Road, Morven

South Canterbury 116 Zig Zag Road, Waihaorunga

Self-contained dairy and support

Rocklea Downs

Part of a wider portfolio restructure including six South Canterbury farms, this package provides real strengths. It includes Dog Kennel Road Dairy – 278.99ha and support block – 291.16ha. The dairy farm has a low-cost K-line irrigation system, fullyautomated 60 bail rotary dairy, up-to-date effluent system, modern calf-rearing facilities, excellent lanes, fencing and subdivision, modern homestead and two staff homes. The platform is approximately 300ha including a neighbouring lease. Average production is around 380kgMS/head or 1,170kgMS/ha at around 3.0 to 3.35 cows/ha, with possible upside. The close-by support block runs the young stock, winters the herd, provides supplements and the ability to be fully self-contained.

bayleys.co.nz/559541

For Sale by Deadline Private Treaty (unless sold prior)

4pm, Thu 4 Apr 2019 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Peter Foley 021 754 737 Mark Parry 0274 330 350 WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

Rocklea Downs is part of a wider portfolio restructure including six South Canterbury farms. It is an extensive 732.481ha property in two titles that has had a history of sheep and cattle production, to which it is well-suited, but recently has been part of a large dairy operation, carrying up to 1,100 heifers. Land-contour is varied, with undulating flats, easy downs and terraces. The naturally fertile soils support good kale crops followed by new pasture. Fencing and subdivision on the more intensive areas is good, access is via a central lane and three houses, two woolsheds, hay and implement sheds support the property. An extensive stock property with supporting infrastructure allowing economies of scale, this property has potential to develop further.

For Sale by Deadline Private Treaty (unless sold prior)

4pm, Thu 4 Apr 2019 3 Deans Ave, Chch View by appointment Ben Turner 027 530 1400 ben.turner@bayleys.co.nz Peter Foley 021 754 737 Mark Parry 0274 330 350 WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008

bayleys.co.nz/559537

Accelerating success.

Reach more people - better results faster.

colliers.co.nz


3

farmersweekly.co.nz/realestate 0800 85 25 80

2

Real Estate

2

Lichfield 295 Kokako Road

Pyes Pa, Tauranga Joyce Road

Peter Begovich 027 476 5787 Rex Butterworth 021 348 276

5

23HA

Strike The Jackpot By Tender By 4pm Thursday 4th April 2019 (unless sold prior) View By Appointment Only www.ljhooker.co.nz/FA3HR1 ljhooker.co.nz/FA3HR1

FARMERS WEEKLY – March 25, 2019

• Flat, rolling hills and steep sidlings. Stands of mature pine trees ready to be milled • Generate an income. Support unit for a dairy farm. Run dry stock, rear calves, make silage, grow maize or lease out the land • 4-bay half round barn, concrete floor, power, lighting plus mezzanine floor. Hay and wood sheds, tractor and/or calf rearing shed • A 274m2 4 bedroom family home plus office built in 2009. Double garage with internal access • A maturing producing orchard, vegetable garden, potting shed, chook house. Established native gardens. • Spectacular views of rolling farmland and the Kaimai Ranges, Mount Te Aroha and Mt Maungatautari

Link Realty Limited Licensed REAA 2008. All information contained herein is gathered from sources we consider to be reliable. However, we cannot guarantee or give any warranty about the information provided. Interested parties must solely rely on their own enquiries.

2

For Sale

Lifestyle plus income – South Waikato

Be impressed by the return generated per m² of land. Being the top performing barn raised meat chicken farm contracted to Inghams Enterprises is testament alone of quality. A secure non-weather affected, profitable investment. Walking in to the wonderful family home you are surrounded by luxury. The stylish outdoor entertaining area includes an inground pool. A self-contained unit provides flexibility to continue with a home-based business, use it for family or rent it out.

2

$1.4m+GST (if any) View: 12.30 - 1.30 pm Sunday 24, 31 March & 7, 14 April www.harcourts.co.nz/TOK2596

Jill Walker M 021 060 3864 E jill.walker@harcourts.co.nz

REALTY WAIKATO LIMITED Licensed Agent REAA 2008

230 COW FARM HOKITIKA

Tokoroa

Cust 16 Campions Road 126.1 Hectares Deadline Sale Options at Summerhill • Claremont soils • Three titles • House built 2017 • Good sheds • Very tidy farm in good heart • Options available | Property ID RA1836

Closing 4pm, Wednesday 17 April 2019

Contact Hamish Anderson 027 678 8888 Maurice Newell 027 240 1718 0800 200 600 | farmlandsrealestate.co.nz

105ha Kowhitirangi Excellent shape, all flat fertile river silt. Split level 4 bedroom permanent material homestead. 12 aside double-up cow shed. Good complement farm buildings. Concrete pad stand-off. Winter at run-off and supplement at run-off. Available Going Concern.

Looking for the complete package?

Run-off available to Purchase 73ha 900 cow feed-pad. 600 baleage made on. All stock wintered, carries young stock in summer.

LK0096840©

For Sale by Deadline Private Treaty Closing 30th April 2019. Web Ref GDR3338542

We’ve got you covered with digital and print options.

Greg Daly AREINZ Mobile 027 478 3594 or A/H 03 762 6463

Contact Shirley Howard phone 06 323 0760, email shirley.howard@globalhq.co.nz

Real Estate Agent REAA 2008

“50 YEARS SERVICE TO FARMERS ON THE WEST COAST”

2480REHP

www.gregdalyrealestate.co.nz

farmersweekly.co.nz/realestate

LK0096770

42


07 883 1195 4/957 Taotaoroa Road Karapiro

$1,750,000 + GST (if any)

Home & Double Income Opportunity Situated on an elevated site on popular Taotaoroa Road, this 20.8 hectare block is located between Cambridge and Tirau. The impressive four bedroom home plus study is perfectly positioned and is built into two wings. One wing with two bedrooms and a lounge is currently being used as a home stay. There is also a one room studio apartment making this a very profitable accommodation business.

Open Home: Sunday 31 March 11.00am to 12.00pm David McGuire 027 472 2572 Steve Mathis 027 481 9060 Web ID RAL644

This would be a great support unit for a dairy farm or your new lifestyle property. An excellent set of cattle yards, well fenced, raced and fertilised, this property is a must see Call now or book a time to view or come to the open day.

350 Parklands Road Roto-O-Rangi

$2,350,000 + GST

View our video of this property by scanning our QR code

Economic Grazing Block This very tidy and well set up 38 hectare property is in the sought after Roto-O-Rangi district midway between Te Awamutu and Cambridge in the heart of the Waikato. Farm holdings of this class and versatility rarely come to the market. This property is perfect as a standalone farm or a runoff for a larger farming unit, here you could mix and match your livestock classes or even grow maize or a supplementary feed crop.

Open Farm: Tuesday 26 March & Tuesday 2 April from 11.00am to 12.00pm David McGuire 027 472 2572 Steve Mathis 027 481 9060 Web ID RAL647

Improvements on this established flat to rolling contoured farm are of a good standard. These include a tidy three bedroom home, a dairy shed that is now used for calf rearing and extensive cattle handling yards plus load out race. All this is supported by modern infrastructure - excellent fencing and a water system reticulated to troughs in all paddocks

www.ruralandlifestylesales.com


Size and Scope A great opportunity to acquire a larger dairy property in a very good farming district approx 21 kms south-east of Te Awamutu  536 Bayley Road - junction of Bayley Road & Lethbridge Road, Korakonui district, Te Awamutu  211.2197 hectares  easy rolling to medium contour with some steeper gully areas  mairoa ash soil - ideally suited for maize & feed crops - good quarry on farm  good water supply; well subdivided and raced  attractive layout with shelterbelts and deciduous specimen trees  4-year average: cows - 570; production - 187,880kgs ms  farm facilities include:- very good 44 aside herringbone farm dairy - large lined effluent pond with effluent pump

Tenders close: 4.00pm Thursday, 11 April 2019

Open day:

Wednesday, 27 March 11.00am to 1.00pm

- variety of farm shedding - silage bunkers  2 x good sound dwellings  school bus service at the property to very good primary and secondary schooling  web ref R1285 On Farm biosecurity protocols will apply - vehicles and footwear to be clean prior to arrival

Brian Peacocke 021 373 113

Quality Dairy Support A particularly good dairy support property with strong potential for finishing beef cattle situated on the main service route through a very good farming district approx 16 kms from Whakamaru and 27 kms west of Taupo  2738 Poihipi Road, Marotiri district - extensive frontage onto Poihipi and Kaahu Roads  202.567 hectares - 1 title  contour varies from easy rolling hay / silage / cropping country to medium country to some steeper areas  Taupo ash soil over pumice  well fenced with a central lane & Transpower road giving very good access throughout the property  crops including swedes, kale, oats & annual ryegrass form part of the regrassing program  very good water supply & reticulation system  farming policy includes wintering dairy cows and dairy heifers plus grazing R1 dairy heifers, R2 dairy heifers, weaner dairy heifers and R1 jersey bulls  farm amenities include excellent cattle yards on concrete base with crush & headbail, wooden rails, steel gates & very good load-out facilities; normal range of farm buildings  a quality homestead in an attractive sheltered, sunny setting featuring 3 bedrooms, open plan living, attached double garage, detached guest room with ensuite, landscaped grounds and all-weather tennis court  a very well presented property with a high standard of improvements in a very good location with school bus to Marotiri Primary & Taupo Secondary schools 500m from farm entrance  web ref R1296

Auction: 1.00pm Wednesday, 10 April 2019 venue - Marotiri Community Hall

Open day: Thurs, 28 March 12noon - 2.00pm

On Farm biosecurity protocols will apply vehicles and footwear to be clean prior to arrival

Dave Peacocke 0274 732 382

Licensed REAA 2008

Brian Peacocke 021 373 113

phone

07 870 2112

office@pastoralrealty.co.nz

MREINZ


COLORATA 45 Clydes Access, Horopito Located in a stunning alpine location with expansive uninterrupted views of Mt Ruapehu, the Tongariro World Heritage National Park and the tranquil Makotuku stream nearby. The 41.627 hectare bare land block comprises of entirely flat contour with free draining volcanic ash looms and large patches of attractive native trees and bush. Ring fenced with 8 wire post and batten, a new road fence and some internal fences. Stock water is supplied from a permanent clear water stream and pond.

ATTRACTIVE 117 ACRES BARELAND 2262 Makino Road, Halcombe, Feilding This bareland property with easy, mostly mowable country, is handy to Feilding. The pastured area is approximately 35ha with ample water via the local water scheme. Recently consented for subdivision, final survey and title will follow shortly.

41.627 hectares Auction nzr.nz/RX1798309 Auction (unless sold prior) 1pm, Tue 16 Apr 2019, NZR, 1 Goldfinch St, Ohakune. Jamie Proude AREINZ 027 448 5162 | 06 385 4466 jamie@nzr.nz NZR Central Limited | Licensed REAA 2008

47.65 hectares (sts) Video on website

nzr.nz/RX1814957

Tender Closes 11am, Thu 4 Apr 2019, NZR, 20 Kimbolton Rd, Feilding. Peter Barnett AREINZ 027 482 6835 | 06 323 4434 An attractive property with outstanding potential building sites, peter@nzr.nz that does need some work to bring it back to full productivity, NZR Limited | Licensed REAA 2008 yet offers much potential for a range of land uses.

SELDOM AVAILABLE & OFTEN SOUGHT 693 Pukeokahu Road, Taihape This highly productive easy undulating/medium hill contoured sheep, beef and deer farm is located close to Taihape. With a past reputation of producing quality livestock production figures it is testament to the overall level of ongoing inputs into this property. Currently part of the recently sold Pukekaka Station the decision has been made to make available a majority of the easier contour. Infrastructure includes a very well presented 4 bedroom dwelling, prattley cattle yards and deer handling facilities. Subdivided into 30 paddocks including 80 ha which is deer fenced.

358 hectares Tender nzr.nz/RX1819895 Tender (unless sold prior) Closes 1pm, Wed 24 Apr 2019, NZR, 1 Goldfinch St, Ohakune. Jamie Proude AREINZ 027 448 5162 | 06 385 4466 jamie@nzr.nz NZR Central Limited | Licensed REAA 2008


46

farmersweekly.co.nz/realestate 0800 85 25 80

Real Estate

FARMERS WEEKLY – March 25, 2019

RURAL | LIFESTYLE | RESIDENTIAL

Licensed under the REAA 2008

Boundaries Indicative Only

PIOPIO 525 Mangaorongo Road

Substantial Avocado Production Block

480.9307ha - STS. Superb opportunity to purchase a cattle grazing property. Contour is flat to medium rolling with some steeper sidlings. The vendors have paid particular attention to water reticulation, tracking (race system) and subdivision. These aspects, along with fertiliser, contour, reliable rainfall and soil type, have enabled them to winter approx 800 cattle and up to 1700 cattle over the summer. There are 38 hectares of pines which range from six years up to ready to harvest, 26 years old.

Avocado orchards of this size and calibre are a rare find, so as far as opportunities go they don’t get much more enticing than this - a 14.8ha (approx.) parcel of land in stunning Flaxmill Bay, Coromandel. Featuring an established avocado orchard with 11 ca/ha (approx.) of Hass trees. Excellent infrastructure with an irrigation system, huge orchard shed, staff accommodation quarters and an extensive list of machinery all included. Full time orchard manager in place that is very keen to stay on. Situated in one of NZ’s finest growing area’s this significant avocado orchard is what everyone asks for - now it’s here. With over 500 bins picked this season, pruning and fertiliser regimes in place - this orchard is set up for the future. Sold +GST if any.

4 April , From 1pm

E durrelle.green@eves.co.nz Web durrellegreen.eves.co.nz

HOUKURA FARM

pggwre.co.nz/TEK30076

HELD 247 Cameron Road, Tauranga WEB www.eves.co.nz/ektc2045 VIEW Saturday, 2.00-3.00pm

PGG Wrightson Real Estate Limited, licensed under REAA 2008

780 HECTARES

THE DESTINATION FOR RURAL REAL ESTATE

Peace, Privacy & Production 780 hectares (1928 acres) sheep and beef farm between Pongaroa and Weber running approximately 7000su. Approximately 740 hectares effective with 165 hectares flat to easy (cultivatable) with good fertiliser history.

Jerome Pitt M: 027 242 2199 O: 06 374 4107 E: jeromep@forfarms.co.nz

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

Great network of 4x4 tracks with bridge over Akitio River and two woolsheds.

Connect with the right audience at

farmersweekly.co.nz/realestate

Four bedroom home.

FOR SALE BY TENDER

LK0096982©

Tender closing 4pm Thursday 28th March 2019 (If not sold prior)

Viewing by appointment ID FF2763 Property ID FF1299

LK0068450©

www.forfarms.co.nz

Peter Wylie M 027 473 5855 | B 07 878 0265 E pwylie@pggwrightson.co.nz

(unless sold prior)

M 027 949 3725

www.forfarms.co.nz

Plus GST (if any)

Longacre Drystock

COOKS BEACH 1047M PURANGI ROAD

Durrelle Green

$4.8M

Helping grow the country


RURAL | LIFESTYLE | RESIDENTIAL

EXCLUSIVE

AWATERE VALLEY, MARLBOROUGH 496 Haldons Road

DEADLINE PRIVATE TREATY

Plus GST (if any) (Unless Sold Prior) Closes 12.00pm, Wednesday 1 May

VIEW By Appointment Only

Water Storage and Viticultural Development An appealing 232 hectare property with a huge water storage dam and an estimated 110 hectares plantable is offered to the market for the first time.

future development on site. Extensive climate, soil viticultural and vineyard development information available to qualified buyers.

With an unrestricted consent to take 300,000m³ from the secure Starborough Creek catchment, and a 250,000m³ capacity earth dam having just achieved final sign off, your insurance policy for future seasons secure harvest is already in place.

Water storage is the key to the future of grape growing in Marlborough and with Starborough Creek you have gilt-edged infrastructure already in place.

Other large water storage sites have been identified for potential

An opportunity not to be missed.

Joe Blakiston M 027 434 4069 | B 03 579 3702 E jblakiston@pggwrightson.co.nz

pggwre.co.nz/BLE29477

TENDER

MOONSHINE VALLEY, UPPER HUTT Small Farm - Great Location This profitable small farm is only a short commute to Hutt or the City and has been faithfully farmed since 1987. In great heart with excellent infrastructure and high fertility, contour is mainly easy to medium hill, wintering around 650 to 700 SU. Improvements include a very tidy Lockwood home, two stand woolshed, cattle and sheep yards. Ideal opportunity here for energetic people to exercise a passion for farming, only a few kilometres from city jobs and town life. Retiring vendor will meet the market.

3

1

PORANGAHAU, HAWKE'S BAY

5

DEADLINE PRIVATE TREATY

Dairy Grazing and Beef Finishing Enterprise

VIEW

• • • •

Plus GST (if any) (Unless Sold Prior) Closes 4.00pm, Tuesday 30 April By Appointment

• •

356.3179 hectares (880 acres) approximately Mainly flat to gently rolling contour Fenced and watered like a dairy farm Spacious five-bedroom home plus one-bedroom cottage Excellent shedding 39km southeast of Waipukurau

3

4

TENDER

Plus GST (if any) Closes 4.00pm, Thursday 18 April

Max Lyver M 027 597 5818 | B 06 858 6780 E mlyver@pggwrightson.co.nz

John Murray M 027 493 3759 | B 06 377 5181 E john.murray@pggwrightson.co.nz

pggwre.co.nz/MAS30112

pggwre.co.nz/WPK30106

PGG Wrightson Real Estate Limited, licensed under REAA 2008

For more great rural listings, visit www.pggwre.co.nz www.pggwre.co.nz

1

PGG Wrightson Real Estate Limited, licensed under the REAA 2008

Helping grow the country

NZ’s leading rural real estate company

Helping grow the country


Employment

Turn to Farmers Weekly first for your employment advertising needs Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

LK0096952©

LK0096654©

You’ll need: • 4 trained dogs • horse experience preferred • current drivers licence

Sky TV and internet provided. Please phone Mike O’Donoghue 03 202 7720, evenings. Please email CV to: office@glenaray.co.nz

DAIRY FARM MANAGER

www.no8hr.co.nz | ph: 07-870-4901

• 2019 Trainee Programme - Livestock Representative Agribusiness • Agribusiness Farmer • Bull Agronomy • Contract Analyst Milker • Dairy • Dairy General Maintenance • Farm Livestock Specialist Assistant • Manager Farm Manager • Pasture and Grazing Specialist Manager • General Sharemilker • Livestock Shepherd Manager • Shepherd/General

50 TON WOOD SPLITTER 12HP, Diesel, Electric Start

Heavy duty construction for serious wood splitting. Towable.

Employers: Advertise your vacancy in the employment section of the Farmers Weekly and as added value it will be uploaded to farmersweeklyjobs.co.nz for one month or close of application.

To find out more visit

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

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

• Mayfield, Canterbury • 1150 cows – 580,000kgMS • 64 bail rotary with Protrack, ACRs and a heat camera • 347ha (effective) Only top operators need apply for this opportunity that ticks all the boxes –infrastructure, location, scope. An Ex sheep and beef, this farm has been milking for three seasons and has hit its straps. This is a conversion that includes excellent farm set-up, infrastructure, farming systems and corporate support being a MyFarm managed farm. Alongside the first-rate irrigation, effluent and dairy there are four new houses so your staff will feel looked after straight-away. The farm’s proximity to primary schooling in Mayfield (7km) and secondary schooling in Ashburton (26km) mean jobs here will be sought after and your opportunities to lead a successful business compounded. So what do MyFarm need? A top dairy farmer who is serious about returning excellent results for themselves and other business stakeholders. Someone who will take their custodianship of this asset seriously and will work diligently to ensure the farm continues to reach its potential. Someone who will relish the opportunity to work within a corporate farming structure and will recognise the benefits this kind of discipline can bring to a business. Sound like you? Take a look at the latest jewel in the MyFarm crown and register your interest today on www.no8hr.co.nz (Ref # 8HR1160)

www.no8hr.co.nz | ph: 07-870-4901

GST Special Price $3990 INCLUSIVE Very limited stock

www.moamaster.co.nz

EARLY DEADLINE NOTICE

CONTRACT MILKER

LK0096970©

The Northland Agricultural Research Farm (NARF) is on the hunt for a Dairy Farm Manager to lead their farm based near Dargaville. Ideally you will be able to tick these boxes: • Have excellent feed budgeting and pasture management • Manage stock and animal husbandry to a high level • Be able to record and report on farm activities accurately • Demonstrate your ability to build excellent working relationships with your staff and others involved in the farm • Experience in planning, developing and implementing policies, procedures and processes to support farm operations Our client operates a well-resourced dairy farm with a long-term commitment to innovative research primarily for the Northland dairy farming community. They milk 250 cows on 84ha through a modern 30 ASHB shed. This facility provides a supportive environment for development and progression for someone with the skills and drive to achieve. The research farm is supported by a committee made up of local leading farmers. It has the unique ability to run systems trials on up to three farmlets of up to 80 cows each. This gives enough scale for robust comparisons and there is great interest in the work the farm does from the length of the country. You will be responsible for all daily farm management responsibilities. In addition, you also record accurate research information for the farm and report to various interested parties including reporting to the committee every fortnight. The farm is handy to Dargaville, beaches and recreational areas. To apply please visit our website at www.no8hr.co.nz and look for the ad ref #8HR1158

farmersweeklyjobs.co.nz farmersweeklyjobs.co.nz

Nursery Dispatch Assistant Other Advertise your vacancy in the Employers: employment section of the Farmers Weekly Scholarship and as added value it will be uploaded to Senior Supervisor -for Stockyard farmersweeklyjobs.co.nz one month or close of application. Shepherd Contact Debbie Brown 06 323 0765 Shepherd General or email classifieds@globalhq.co.nz Stock Manager Tractor/Truck/Machinery Operator

LK0095831©

JOBS BOARD JOBS BOARD

Glenaray Station, 70,000su sheep, cattle and deer, is looking for a shepherd to join our team. Located near Waikaia township, we have very good facilities and modern vehicles. Dog training and other training is offered.

Accommodation: Very comfortable single quarters. Cooked evening meal Monday to Friday. Cooked winter lunches.

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 07 572 0230 Web: www.ezylinehomes.co.nz

LK0096871©

YOUR FEET?

Our homes are built using the same materials & quality as an onsite build. Easily transported to almost anywhere in the North Island. Plans range from one bedroom to four bedroom First Home – Farm House Investment – Beach Bach

RURAL SECTOR RURAL SECTOR

SHEPHERD

SOLID – PRACTICAL

WELL INSULATED – AFFORDABLE

Get your April 8 Farmers Weekly bookings in by midday Tuesday April 2 Material deadline 5pm Tuesday April 2 Contact Debbie Brown DDI: 06 323 0765 0800 85 25 80 classifieds@globalhq.co.nz

LK0096656©

RUN OFF

Applicants are required to: • Preferably have at least 2 years experience as a shepherd • Able to work independently and in a team environment • Have a good team of 3-4 broken in dogs • Horse experience is an advantage but not necessary

NEW HOMES

LK0092630©

Applications close 3 April 2019. Anne Burdon – Cardon Rural Recruitment

T HI NK P R E B U I L T

We are seeking an experienced stock person to join the team on Motukawa Land Company, a 2000ha, 20,000su hill country property, 14km east of Taihape.

Phone Kevin Saville on 06 388 0966 Or email CV to kr.saville@gmail.com

LK0096924©

Please send your current CV and cover letter to anne@cardon.co.nz or for more information about the position please call 027 271 1733.

Motukawa Land Company

Single accommodation is available.

Good salary packages are offered to the successful applicants along with good housing. Good schools are within 20 minutes with school bus pick up 1km from the gate.

Get your April 8 Farmers Weekly bookings in by midday Tuesday April 2

Contact Debbie Brown DDI: 06 323 0765 0800 85 25 80 classifieds@globalhq.co.nz

LK0096897©

The successful applicants will be drug free, have a valid drivers licence, be genuinely passionate about the industry and have good current farming references.

Phone Debbie Brown 0800 85 25 80 or email classifieds@globalhq.co.nz

FOR SALE

Material deadline 5pm Tuesday April 2

HILL COUNTRY SHEPHERD

SHEPHERD GENERAL An experienced Shepherd General with 6+ years experience in the NZ sheep and beef industry with the ability to support the Farm Owner and Head Shepherd. The ideal applicant will have: • A strong team of 2-3 working dogs under good control • Excellent stockmanship and temperament with animals • Good communication • Good technical experience including shearing, dagging and fencing

Advertise in Farmers Weekly

LK0096815©

HEAD SHEPHERD We are seeking an experience Head Shepherd with 15+ years experience in the NZ sheep and beef industry. The ideal applicant will have: • A strong team of 3-4 working dogs under good control • Excellent stockmanship and temperament with animals • Proven pasture management skills • Good communication, staff management and reporting skills • Good technical experience including shearing, dagging and fencing

Experienced person is required for a 400ha sheep/beef breeding/finishing unit 20km east of Stratford. Must be capable with dogs and have a general all round capability for maintenance. 3-bedroom house available. NZ visa or residency required. Please apply with cover letter, CV and two current referees to jordangav@gmail.com or phone 027 232 0895

LK0096931©

Based at Aria in the heart of the King Country this tidy 800ha sheep and beef unit comprises 2800 stock units, has good infrastructure and facilities, aiming to produce quality stock for the meat and wool markets. We are employing for the following positions.

SELLING SOMETHING?

EARLY DEADLINE NOTICE

Farm Manager

LK0096951©

HEAD SHEPHERD & SHEPHERD GENERAL

Classifieds


Classifieds

FARMERS WEEKLY – March 25, 2019

ANIMAL HANDLING

ANIMAL HANDLING

ATTENTION FARMERS

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

FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT $5.85 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz

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

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

0800 436 566

ANIMAL SUPPLEMENTS

KING SHEARING

APPLE CIDER VINEGAR, GARLIC & MANUKA HONEY. 20L - $54.95, 200L $495 or 1000L - $2,200 plus GST with FREE SHIPPING from Black Type Minerals Ltd www. blacktypeminerals. co.nz

Family Owned and Operated Shearing Business

SCOTTY’S CONTRACTORS

We have double and single Hecton crutching trailers. Stay out teams available.

LK0096969©

Steeped in tradition and the knowledge of shearing for today’s farmers.

For more information: Johnny King 027 527 1714 Sarah King 021 706 866

Under Woolshed/ Cover Yards Cleaning Specialist

DEERLAND TRADING LTD buying deer velvet this season and paying above the average. Also contractor required to buy deer velvet. Payment on commission basis. Contact 021 269 7608.

SELLING

SOMETHING? 0800 85 25 80

DOGS WANTED

2½-YEAR- OLD Huntaway dog, strong dog, good noise and backs. 2-YEAR strong eye dog, easy to work. 12-MONTH strong eye bitch, nice type, good style. Phone 04 472 2351.

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

HEADING DOGS AND Huntaways Since 2012 deliver South and North Islands, trial, guaranteed. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

DOGS WANTED BUYING SOUTH AND North Islands. No one buys or pays more! www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

Moa Master provide quality products and services at affordable prices

We’re back and taking bookings

$4400

Ph: Scott Newman 027 26 26 272 0800 27 26 88

GST INCLUSIVE

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

AT A FIELD DAY NEAR YOU

FOR SALE DOG/PET FOOD. Lamb/ Beef and chicken products. All natural - raw - no preservatives or additives. NOSLOC PRODUCTS. Ex-freezer Te Kuiti. For information and prices www.nosloc.com or phone 07 878 6868.

FORESTRY

GOATS WANTED

$4200

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

MOA MASTER

YOUR FARM MAPPED showing paddock sizes. Priced from $600 for 100ha. Phone 0800 433 855. farmmapping.co.nz

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

TOWABLE TOPPING MOWER

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

FARM MAPPING

WANTED

TOWABLE FLAIL MOWER

www.underthewoolshed.kiwi

NZ’s #1 service provider for under woolshed cleaning for more than a decade

DEERLAND TRADING LTD

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

LK0096974©

Johnny, Dion & Sarah King

SHED/BARN, DEER shed and yards builder available all of South Island. Has selfcontained motor home. 15 years experience. Phone 027 436 8372. FREE DEER FENCES, posts, wire gates yards doors water troughs. At Waiuku. Trademe #1967370306 Phone Chris 027 493 1108.

GORSE SPRAYING SCRUB CUTTING. 30 years experience. Blowers, gun and hose. No job too big. Camp out teams. Travel anywhere if job big enough. Phone Dave 06 375 8032.

GOATS WANTED

DOGS FOR SALE

LK0096877©

DOLOMITE

ANIMAL HEALTH

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.

CONTRACTORS

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

FERAL GOATS WANTED. All head counted, payment on pick-up, pick-up within 24 hours. Prices based on works schedule. Experienced musterers available. Phone Bill and Vicky Le Feuvre 07 893 8916.

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.

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 RAMS. HILL COUNTRY Perendales. Easy care with good size and quality wool. $250-$500. Phone 06 376 4751 or 021 133 7533. RAMS. TERMINAL SIRES Southdowns and Suffolk/ Southdown X for heavy fast growing lambs. Suitable for Hogget mating. $250$500. Phone 06 357 7727 or 021 133 7533. 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.

PERSONAL WANTED - HOUSEKEEPER / COOK. Live in. Immediate start in the top of the South Island. Phone or text 027 391 1626.

49

PROPERTY WANTED HOUSE FOR REMOVAL wanted. North Island. Phone 021 0274 5654.

PUMPS HIGH PRESSURE WATER PUMPS, suitable on high headlifts. Low energy usage for single/3-phase motors, waterwheel and turbine drives. Low maintenance costs and easy to service. Enquiries phone 04 526 4415, email sales@hydra-cell.co.nz

STOCK FEED MOISTURE METERS Hay, Silage dry matter, grain. www.moisturemeters.co.nz 0800 213 343. HAY 12 EQUIVALENT squares $60. 15 equivalent rounds $70. STRAW 12 equivalents $45. BALEAGE at $75. Unit loads available. Phone 021 455 787.

FOR SALE CLASSIFIEDS ADVERTISING

Do you have something to sell? Call Debbie

0800 85 25 80 classifieds@globalhq.co.nz

Northland Field Days February 28 - March 2 Central Districts Field Days March 14 - 16 South Island Agricultural Field Days March 27 - 29

Heavy Duty Cattle Handling for safety and practicality.

Come and see our on site discounts @ Kirwee (SIFD). 27 - 29 March. Site 282.

Stop breaking your back without breaking the bank.

0800 227 228

www.combiclamp.co.nz Videos on website SI Agent, Stuart - 027 435 3062


50

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

Livestock

FARMERS WEEKLY – March 25, 2019

STOCK REQUIRED HEAVY MALE LAMBS up to 42kg

Spring Calvers 240 Frsn Herd. BW49 PW46 RA 89% DTC 1/7. Young Frsn herd, 45year breeding history with selected I/C heifers added Low SCC. $1800neg. 99 F/FX In-Calf Heifers BW87 PW76 DTC 15/7 Capital line out of 420ms System 3 herd $1600 70 KiwiX Computer Split BW80 PW103 RA90% DTC 18/7, system 3 $1720 or pick 50 for $2150 KS 190 F/FX/J Herd BW49 PW57 DTC 20/7 Farm Sold, 5 wks AI tailed Frsn $1650 NB Paul Kane: 027 286 9279 National Dairy Coordinator

www.carrfieldslivestock.co.nz

Outstanding Xbred Dairy herd 100% ancestry Closed herd – eliminate risk A/c John & Michelle Keeley DATE: Thursday 11th April 2019 ADDRESS: 77 Newcombe Road Cambridge START TIME: 11.30am - undercover Comprising of: 290 LIC Crossbred dairies: • 230 x Frsn/Frsnx herd BW 108/47 PW 123/69 R/A 100% • 60 x Super in calf Xbred replacement hfrs BW 142 PW 146 Auction details: • Herd calves 8th July – 6wks LIC Mating – t/off Hfrd bulls out 22/12 • In-calf hfrs calve 8th July to Jersey out 22/12 • Herd owned 50+ years – all owner bred – closed herd • TBC10, EBL neg, Tested BVD clear, MBOVIS negative • System 2 feeding, 420ms/cow, 100,000 som avge • Herd Tested x 5, 6% annual MT rate, once a day from 25 Jan, auctioned in milk Auctioneers note: Very well farmed and managed. The farm has been sold – several AB contracted cows this season and many over years. A well respected dairy herd that has impeccable records and this herd has numerous impressive cows to select – cows to suit all farmers – numerous black cows.

Contact for more information Carrfields Livestock Agent: Kelly Higgins 027 600 2374 Vendor – John Keeley 027 225 0455 View catalogue on

www.carrfieldslivestock.co.nz

PHONE NIGEL RAMSDEN 0800 85 25 80

Looking for quality heifer grazing?

www.carrfieldslivestock.co.nz

ON FARM CALF AUCTION, GORE

Available May 1 Prograze 027 281 4232 SALE TALK

Sound well fleshed sires, Excellent temperament 200 Fully breedplan recorded cows 20 Bulls Catalogued

A station was interviewing an 80-year-old lady because she had just married for the fourth time. The interviewer asked her questions about her life and then about her new husband’s occupation. “He’s a funeral director” she answered.

BULL OPEN DAY • ALL ENQUIRIES WELCOME WEDNESDAY 29TH MAY 1 - 5PM

WILTSHIRE RAMS AVAILABLE > No shearing > No dagging > No dipping

PETER & CAROLINE FOSS

495 Potaka Road, RD 1, Aria, King Country Ph/fax (07) 877 7881 • Email: pcfossy@xtra.co.nz

He asked her if she would tell him a little about her first three husbands and what they did for a living. She paused for a few moments reflecting on those years. Finally a smile came to her face and she said that she had first married a banker in her 20’s, a circus ringmaster in her 40’s, and a preacher in her 60’s, and now a funeral director. “I married one for the money, two for the show, three to get real and four to go.”

WAIRARAPA SHEEP & BEEF AWARDS 2019 WINNERS FIELD DAY Friday 29 March 2019 George and Luce Williams Grassendale, 1062 Manawa Road Tinui, Masterton COMPETITION SPONSORS

E ross@dyerlivestock.co.nz A Financing Solution For Your Farm E info@rdlfinance.co.nz

LIVESTOCK ADVERTISING

110 F CRV Herd BW11 PW15 DTC 1/8 Family owned 60 yrs, Great CRV herd $1800ono DH 101 F/FX Herd BW84 PW102 DTC 18/8 4 wks nom CRV tailed Hereford $1650 Gib 620 F/FX Herd BW88 PW104 RA92% DTC 1/8 Strong capacious, 370ms on hard farm $1800 MTM 235 F/Xbrd/J Herd BW92 PW111 RA97% DTC 27/7 400ms low input, well uddered Low SCC $1900 HM Philip Webb Ph: 027 801 8057 Central & Southern North Island Dairy Coordinator

25TH ANNUAL SALE THURSDAY 6TH JUNE 1PM, TE KUITI SALE YARDS

R2 YR FRIES BULLS 380-450kg www.dyerlivestock.co.nz

> Genuine full shed sheep LK0096967©

Payment Terms: 31/7/2019 – Delivery can be arranged to end of May 2019 if you have no access to a farm.

140 Frsn Herd BW55 PW51 RA100% DTC 25/7 Owned 45 yrs, 6 wks AI,320ms $1800 JK 140 F/FX CRV Herd BW17 PW41 DTC 22/7 Owned 34 yrs, AI nom F, 380ms $1825 KH 500 F/FX Herd BW47 PW64 DTC 25/7 5.5 wks AI, tailed Angus, 420ms $1750 JK 309 F/FX Herd BW96 PW114 RA 98% DTC 12/7 40 yrs, AI nom Fr, system 5, 440ms $1940 MKM Matt Hancock Ph: 027 601 3787 Waikato Dairy Coordinator

CONTACT CAM WAUGH 06 328 8178 or 0274 800 898

R2 YR ANG & AX STEERS 400-460kg

Account Glen Islay Ltd 741 Waimea Valley Road RD 7 Gore Thursday 28th March 12.30 pm Glen Islay, C10 70 Hereford Angus x Steer Calves 40 Simmental x Steer Calves 10 Hereford Steer Calves 72 Hereford Angus x Heifer Calves 40 Hereford Simmental x Heifer Calves 57 Hereford Heifer Calves Daloraine, C10 217 Angus and Angus Hereford x Steer Calves 30 Angus and Angus Hereford x Heifer Calves Greg Clearwater, PGG Wrightson 0275918045 Callum Dunnett, Carrfields 0275870131

EARLY DEADLINE NOTICE Get your April 8 Farmers Weekly bookings in by midday Tuesday April 2 Material deadline 5pm Tuesday April 2 Contact Nigel Ramsden DDI: 06 323 0761 0800 85 25 80 livestock@globalhq.co.nz

LK0096655©

Contact Rhys Dackers 027 241 5564

R2 YR BEEF STEERS & HFRS 300-350kg

The farm tour will start at GRASSENDALE 9.30am 1062 MANAWA ROAD TINUI, MASTERTON Allow 50 minutes from Masterton

Vehicles – Quads with helmets compulsory Lunch must be purchased at the venue: $10 per person (Please bring cash – Tinui School Fundraiser)

4.30pm Refreshments & BBQ will be served

For further details phone BakerAg 06 370 6880

LK0096790©

22 x Incalf Cow & Calves 12 x Incalf R2yr Heifers 3 x Herd Sires 1 x Frozen Embryo (SGT Pepper) Variety of Semen Straws

LK0096671©

• • • • • •

ANGUS STEER CALVES 190-250kg

Akitio 200 ANG/ANG HERE Weaner Steers 200 ANG/ANG HERE Weaner Heifers Well-bred line of hill country coastal calves. LK0096949©

Thursday 28th March 2018 12.00pm Start

FRIES BULL CALVES 150-200kg

THURSDAY 28th MARCH A/C AKITIO STATION

LK0096386©

567 JV Grant Road, Wellsford

CONTRACT ON FRIES HERE BULL CALVES July Supply

DANNEVIRKE WEANER FAIR

LK0096726©

Rivendell Simmental Dispersal Sale


Your source for PGG Wrightson livestock and farming listings

Key: Dairy MACHINERY AND SUNDRY SALE Monday 1st April 11.00 348 Piako Road, Gordonton A/C T & J Johansen

DAIRY HERDS & IN-CALF HEIFERS FOR SALE NORTH ISLAND HERDS & IN-CALF HEIFERS FOR SALE 165 M/A Friesian, X/Bred Cows BW 13

PW 48

$1,850+GST

229 3-6yr Frsn, Xbred Cows $1,800+GST

Agonline ref: 3341

114 M/A Friesian/Jersey X Cows PW 180

$1,750

+GST

PW 139

$1600+GST

A2/A2 DNA tested Cows. Fresian, FresianX - Worth a look! Mark Neil – 027 742 8580

RA97% Good, quality line of mainly 1st X Friesian, young Carryover Cows. Tim Pickering – 0274 469 963

Agonline ref: 3280

Agonline ref: 2874

350 MA Frsn/Frsn X Cows

319 MA Frsn, Xbred Cows

BW 96

RA100% 229 3-6yr Frsn, Xbred Cows. Mark Houghton – 027 597 5844

BW 118

BW 89

Agonline ref: 3385

PW 137

69 3-6yr Frsn/Frsn X Spring Calvers

$2,150+GST

RA93% In the same family for generations, udders and production the key drivers. Lyle Smart – 0277 426 833

BW 84

120 MA Frsn/Frsn X Cows

PW 114

$1,950+GST

BW 56

PW 79

$1,650+GST

RA98% Long established Frsn/Frsn X herd producing over 430 m/s. Chris Ryan – 027 243 1078

A very nice Herd on the eye, good production on low cost system. Jason Roberts – 027 243 1429

Agonline ref: 2415

Agonline ref: 3339

90 Frsn/Frsn X Cows BW 74

PW 117

73 Jrsy Cows

$1,750

BW 150

+GST

PW 150

$1,700

+GST

RA95% X/Bred Content of 314 Cows, 3 year Avg production 115,000 Kg/MS. Andrew Reyland – 027 223 7092

RA97% Spring Calving content out of Autumn Calving Herd, Great Age Structure. Dean Evans – 027 243 1092

RA100% Surplus cows from one of the top BW herds in the country. Closed Herd. Shaan Featherstone – 027 666 1198.

Agonline ref: 1810

Agonline ref: 3064

Agonline ref: 3340

90 Frsn/Frsn X In Calf Hfrs

39 X Bred In Calf Hfrs

22 X Bred In Calf Hfrs

BW 116

PW 120

SOLD

BW 106

PW 152

$1,500+GST

BW 122

PW 110

$1,550+GST

RA90% Grazing Te Kuiti. Complete line - Good Quality Hfrs. Allan Jones – 027 224 0768

Well grown heifers, genuine split of Capital line. Grazing on top grazing unit. Steve Taylor – 027 648 6711

RA 100% Very well grown Black Frsn X Heifers. Great top up lines, Bull out early. Regan Craig – 027 502 8585

Agonline ref: 3035

Agonline ref: 3027

Agonline ref: 2703

LOCK IT IN! LIST YOUR DAIRY HERD NOW. PGG Wrightson Dairy representatives are specialists at marketing and selling dairy herds. Benefit from the specialist team that is dedicated to matching herds with the right buyers and achieving an optimal outcome for your business.

Polaris 570 EFI side x side. Aitchison seed drill 14 row. Maschio Rotary Hoe. 500 ltr spray tank with boom & gun. The Boss feeder leader (Bale feeder). Carry on tray. Rota tilla. Maxam 3m single mower (MXL250). Tow behind weed wiper (elimanator). 2x Corohawk calf shelters. Sundry tools & chemicals. Fence reels & standards. King hit post rammer side shift near new. Giltrap MSX80 feed out wagon with scales. Maschio power harrow DC3000 Cambridge roller with seed box. Calf feeders. Terms are strictly cash, eftpos or cheque. Contact Brook Cushion on 027 243 1816, Neil Lyons on 027 223 5784, or Shaan Featherstone on 027 666 1198

For photos and more information on listings visit www.agonline.co.nz

NATIONAL TEAM. LOCAL KNOWLEDGE. ISOLA HEREFORD DISPERSAL SALE Ms Diane Murdoch 60 Kidd Road, Waiuku Saturday 6th April 12.30pm Comprising of 31 Ris 2 yr in calf Hfrs 73 MA in calf cows 6 MA Herd Sires Rarely does the opportunity arise to purchase females of this quality. Faithfully farmed on genuine hill country for 20 years and in the Onewhero district for the last 12 years. • PTIC Due to calve 29th of July • All sale lots are below the breed average for birth (by a considerable amount). • All sale lots are better than the Trans Tasman average Calving Ease Direct. (With a large proportion in excess of +9) • 91% of the sale lots are above average for the Dairy Maternal Index (up to $200) All females pregnancy tested 19/2/19 TB C10 Further enquires to Cam Heggie Kane Needham PGG Wrightson Genetics PGG Wrightson Pukekohe 0275018182 0278393612

Cattle

Sheep

Other

TOP QUALITY IN MILK X BRED HERD & IN CALF HEIFERS Tuesday 9th April 11.00am start 324 Tirau Rd (S/H1) 3km from Cambridge A/C Bill & Carolyn Rippey Comprising: 150 X Bred/Jrsy in calf cows BW 123/46 (Top 4%) PW 196 (Top 1%) 41 X Bred in calf heifers BW 150 PW 181 Farm sold, herd is going straight to auction. Herd has produced 421mls in 191 days and on target for 480mls per cow with an ave SCC 80,000, over 90% of herd 0/4 SCC threshold exceeded on herd test. Herd and in calf hfrs commence calving 7th July to predominately x bred AI, tailed off jrsy bull, scanned to dates. Cows will be in milk (OAD since Feb) on sale day and in top condition. This sale is an excellent opportunity for purchaser to buy top index dairy cattle with performance/type and

TEMUKA CALF SALE EASTERN/SOUTHERN SECTION Wednesday 3rd April 2019 Commencing 10am NR&EA Pirie, Maungati – C10 70 Simmental Autumn Born Steers 17 Simmental Autumn Born Heifers Heavy boned top Genetic Exotic Cattle weaned and behind wire for six weeks. Kerrah Bloodlines 13 Simmental/Angus x Steer Calves 15 Simmental/Angus x Heifer Calves Bayfields Ltd, Southburn – C10 15 Simmental/Angus x Autumn Born Steers 14 Simmental/Angus x Autumn Born Heifers All Pirie bloodlines Enquiries: Jonty Hyslop 027 595 6450

temperament. Which includes 8 animals carrying AI contracts. EBL free, BVD Neg, M/Bovis milk tested free. Catalogs, photos & video can be viewed on agonline.co.nz For more information contact Andrew Reyland on 027 223 7092, Dean Cook on 027 270 7729, or Bill Rippey (vendor) on 027 606 8833.

FIND US ON FACEBOOK Follow what’s happening out in the field, visit: fb.com/pgwlivestock

UPCOMING WEANER CALF SALES North Island Sales Weaner Steers & Weaner Bulls Sale | Masterton Matawhero Cattle & Morunga 2.5yr Strs | East Coast Weaner Heifer Sale | Masterton Dannevirke Weaner Fair | Dannevirke Broadwood Grown Cattle Fair | Northland Stortford Lodge Weaner Steer Sale | Hawkes Bay Stortford Lodge Weaner Bull Sale | Hawkes Bay

11.30am 11.00am 11.30am 11.30am 12.30pm 10.30am 10.30am

26 March 26 March 27 March 28 March 28 March 02 April 03 April

South Island Sales Tapawera Calf Sale at Brightwater | Tasman West Otago | Otago Mt Benger | Otago Glenlyon Calf Sale | Canterbury Brightwater Inner Regional Calf Sale | Tasman Blenheim 2nd Calf Sale (Wairau, Waihopai Valley & Marlborough Sounds) | Tasman Cheviot South Calf Sale | Canterbury Palmerston 1st Calf Sale | Otago Cheviot North Calf Sale | Canterbury Haast Calf Sale | Otago Hakataramea Calf Sale | Otago Canterbury Park Calf | Canterbury Temuka (Eastern Southern) Calf Sale | Canterbury Gore 1st Calf | Southland Omakau 1st Calf Sale | Otago

12.00pm 10.30am 1.30pm 12.00pm 12.00pm 11.00am 10.30am 10.00am 10.30am 12.00pm 10.00am 10.00am 10.00am 10.30am 10.00am

26 March 26 March 26 March 27 March 27 March 27 March 28 March 29 March 29 March 01 April 02 April 03 April 03 April 03 April 03 April

AUTUMN WEANER CALF SALES See above for this week’s upcoming PGG Wrightson calf sales. For a full schedule of sales throughout April and May go to pggwrightson.co.nz/calfsales2019

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

Helping grow the country


MARKET SNAPSHOT

52

Market Snapshot brought to you by the AgriHQ analysts.

Suz Bremner

Nicola Dennis

Mel Croad

Cattle

Reece Brick

Caitlin Pemberton

Sheep

BEEF

Deer

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

5.30

5.25

5.50

NI lamb (17kg)

7.00

7.00

7.10

NI Stag (60kg)

9.30

9.50

11.00

NI Bull (300kg)

4.90

4.90

5.50

NI mutton (20kg)

5.00

5.00

4.85

SI Stag (60kg)

9.25

9.35

11.00

NI Cow (200kg)

3.70

3.60

4.30

SI lamb (17kg)

6.70

6.60

7.05

SI Steer (300kg)

5.05

5.00

5.40

SI mutton (20kg)

4.80

4.80

4.85

SI Bull (300kg)

4.70

4.80

5.20

Export markets (NZ$/kg)

SI Cow (200kg)

3.60

3.55

4.25

UK CKT lamb leg

8.88

8.85

9.15

US imported 95CL bull

7.16

7.13

6.78

US domestic 90CL cow

7.00

6.98

6.69

Slaughter price (NZ$/kg)

Export markets (NZ$/kg)

6.0

Last year

North Island lamb slaughter price

8.5

Dec 5-yr ave

Feb

$/kg CW Jun

2017-18

Dairy

Aug 2018-19

Apr 2017-18

Jun

Aug 2018-19

Last week

Prior week

Last year

Coarse xbred ind.

2.95

2.89

3.04

37 micron ewe

2.80

-

$/tonne

Apr-18

Jun-18

Aug-18 Sept. 2019

Oct-18

Dec-18 Sept. 2020

Feb-19

DAIRY FUTURES (US$/T) Nearby contract

Last price*

5.50

-

625

523

3.25

Super

321

321

307

5.05

DAP

833

833

775

NZ average (NZ$/t)

Top 10 by Market Cap

400

Company

Close

YTD High

Meridian Energy Limited (NS)

3.955

3.955

YTD Low 3.38

The a2 Milk Company Limited

13.72

15

10.42 7.065

Auckland International Airport Limited

7.845

8

Fisher & Paykel Healthcare Corporation Ltd

15.29

15.35

12.3

Spark New Zealand Limited

3.54

4.18

3.54 10.4

Ryman Healthcare Limited

11.56

11.65

Mercury NZ Limited (NS)

3.66

3.8

3.51

360

Contact Energy Limited

6.43

6.51

5.82

Fletcher Building Limited

4.66

5.34

4.57

320

Port of Tauranga Limited (NS)

5.37

5.47

4.9

Feb-18

vs 4 weeks ago

Fertiliser 625

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Listed Agri Shares

CANTERBURY FEED BARLEY Prior week

Aug 2018-19

Urea

440

6.0

Jun

Last year

480

6.5

Apr 2017-18

Prior week

CANTERBURY FEED WHEAT

7.0

Feb

Last week

Grain

Data provided by

MILK PRICE FUTURES

5.5

Dec

FERTILISER

30 micron lamb

$/kg MS

$/kg CW

$/kg CW $/kg CW

Oct

(NZ$/kg)

5-yr ave

Oct

5-yr ave

WOOL

Apr

8.5

5.5

5.0

Feb

9.5

6.5

6.5

5.5

Dec

South Island stag slaughter price

7.5

7.5

South Island steer slaughter price

Oct

8.5

10.5

8.5

4.5

4.5

9.5

11.5

South Island lamb slaughter price

6.0

10.5

6.5

4.5

5.0

Last year

North Island stag slaughter price

11.5

6.5

5.5

Last week Prior week

7.5

5.5

4.5

Slaughter price (NZ$/kg)

7.5

$/kg CW

North Island steer slaughter price

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

Ingrid Usherwood

5pm, close of market, Thursday

Company

Close

YTD High

YTD Low

440

The a2 Milk Company Limited

13.720

15.000

10.420

Comvita Limited

4.400

5.420

4.090

Delegat Group Limited

9.700

10.100

9.400

3495

3450

3190

420

SMP

2430

2450

2515

400

Fonterra Shareholders' Fund (NS)

4.200

4.850

4.170

1.750

1.750

1.470

AMF

5750

5750

5550

380

Foley Wines Limited Livestock Improvement Corporation Ltd (NS)

0.950

0.950

0.750

Butter

5250

5050

4605

New Zealand King Salmon Investments Ltd

2.390

2.410

2.100

340

PGG Wrightson Limited

0.510

0.570

0.470

Milk Price

6.48

6.45

6.35

320

Sanford Limited (NS)

6.580

6.980

6.350

Scales Corporation Limited

4.710

4.820

4.340

SeaDragon Limited

0.003

0.003

0.002

Seeka Limited

4.770

4.980

4.200

Synlait Milk Limited (NS)

10.020

11.350

8.860

$/tonne

WMP

Feb-18

* price as at close of business on Thursday

WMP FUTURES - VS FOUR WEEKS AGO

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

350

$/tonne

3400 US$/t

Apr-18

WAIKATO PALM KERNEL

3600

3200 3000 2800

360

Apr

May Jun Latest price

Jul Aug 4 weeks ago

Sep

300

T&G Global Limited

2.680

2.810

2.650

S&P/NZX Primary Sector Equity

16105

16563

15063

S&P/NZX 50 Index

9461

9515

8732

S&P/NZX 10 Index

9124

9160

8280

250 200

Feb-18

S&P/FW PRIMARY SECTOR EQUITY

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

16105

S&P/NZX 50 INDEX

9461

S&P/NZX 10 INDEX

9124


53

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

5.05

SI SLAUGHTER BULL ( $/KG)

4.70

NI SLAUGHTER LAMB ( $/KG)

7.00

AVERAGE STORE LAMB PRICE AT TEMUKA ( $/HD)

109

Getting ready for winter NORTH ISLAND

I

T HASN’T been one the better weeks for Northland. There’s been no rain and it’s continuing to dry out. The wee bit of moisture a couple of weeks ago freshened up the kikuyu. Cattle are grazing whatever they can. Some spots around Pukekohe had isolated showers last week but most of the region missed out. It’s mainly been cloudy, fine and calm – ideal for getting on with the activity of growing veges. Waikato has had patchy rain but not a lot of it. Farmers are looking at how much supplementary feed they have on hand and what they’ll need for winter. They’re also making plans for keeping cows in decent condition for winter. They might need to dry off a portion of their herd or move to once-a-day milking. The chance of growing feed between now and the first of June is getting a bit slim. Bay of Plenty is looking a little greener than Waikato. There’s been rain here and there. The kiwifruit season is running 10 days earlier than usual so the early start programme, where growers get a premium for early fruit, is fairly full. Drymatter is high so the taste of the fruit is better this year than it has been for a couple of years. Cows being milked once a day are happy, they’re not having to walk to the shed in the heat. Rain came at a good time in King Country and there’s a green tinge to paddocks but more is needed. Store prices for lambs have gone up now that it’s rained and it helped boost weaner cattle prices in Te Kuiti too. The main issue is finding fresh tucker for ewes to eat before the ram goes out. In Taranaki pasture is growing. There’s been a bit a rain. Autumn fertiliser is going on and grass seed is being sown. Everybody’s still milking. Maize crops are coming off and farmers are happy with yields. There’s plenty of maize and grass silage to get through winter. The farmer we spoke to opened his silage stack in February and it started raining again in March so he hasn’t put much of a dent in it. Facial Eczema spore counts are on the rise. Growth is slowly moving in Gisborne after some rain. Bigger cattle at Thursday’s cattle fair in Wairoa fetched up to $1400. The rain’s given confidence in that market again. Even lighter cattle sold well. Lots of store lambs are now coming off hill country as farmers are looking ahead to winter and want to build up grass covers. In Hawke’s Bay grape growers are enjoying a dry harvest. Sauvignon blanc, chardonnay and semillon are coming off. Merlot has just started. We’re told the chardonnay is looking stunning. Apples are coming off too but they’re having trouble with colour. The nights have been too warm. Growers ideally like nights of less than 10C because that brings the colour up. Farmers who have autumn grazing are complaining about the price they’re having to pay for lambs. Dairy cow pregnancy testing is nearing an end in Wairarapa. There have been higher empty rates this year for various reasons including the weather over mating and a spill-over from Mycoplasma

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

LivestockEye

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

WHO’S BUYING? PGG Wrightson’s Otago auction team look for bids at the Owaka calf sale on Thursday.

bovis where farmers have recycled bulls they had on-farm because they didn’t want to bring ones in from new sources. Most cows are in good condition and there’s feed ahead of them. Sheep farmers have the usual autumn challenges – facial eczema spores are rising and populations of barbers pole and every other worm are multiplying rapidly. The Taihape region’s had good rain recently though Hunterville missed out. Where it did rain, pastures are recovering well and farmers are feeling more comfortable but, as in Wairarapa and elsewhere, when the grass grows so do worms and preventative drench programmes are being sorely tested. This is the golden period for sheep farmers when management decisions made now impact on the next 12 months. The 10 days before mating and the first 10 days of mating are the crux. Sheep must be well fed. Our contact here says the rural community’s mood at present is vibrant because of lamb returns. Horowhenua is feeling dry again. Heavy soils are green and are growing but would love more moisture. It’ll be great to receive next week’s predicted rain. SOUTH ISLAND Across Cook Strait and after rain a couple of weeks ago the grass on Tasman farms has taken off but there’s not much base to it. The region’s still very much in the recovery phase after the drought and 15% of the region’s herds are now dry. Most other farmers have dried off at least 20% of their herd. Marlborough farms are looking more cheerful after good rain. Rams are going out on sheep farms and the ewes have some green grass now. It’s gone from brown to green quickly. Our contact had just finished picking pinot grapes and was into sauvignon blanc. His yields are back on average but the quality’s great. The West Coast had a beautiful fine week. The Grey Valley and Reefton

could do with some rain. A farmer near Lake Brunner says it’s a quiet time now he’s finished the last of the balage. The feed situation on his farm is good but it mustn’t be as plentiful elsewhere on the coast because he’s been seeing a lot of feed on trucks from Canterbury. In Canterbury some rain and mild autumn weather is resulting in fantastic grass growth. Lambs and cattle continue to sell well, calf sales are starting and early reports indicate calves will be back a little on last year, however, the money is still very good compared to long-term averages. The biggest disappointment is wool where it is now very common for the cost of shearing to exceed the wool cheque. Central Otago’s grape harvest is just starting with rose coming off. Grape crops are looking good but the season has been challenging with frosts and rain when they weren’t wanted. There’s a bit of a gap in the apple harvest. The weather’s been incredible and orchards are right up with the picking so on Friday pickers were having the day off. Balclutha hasn’t had rain for a long time though those north and south of the town have been more fortunate. It’s been a good growing season though and winter crops are looking good. It’s a critical time of the year for sheep farmers. They’re making sure ewes are being fed well so they’re in tip top condition when they go to the ram in a couple of weeks. It’s been a fantastic week in Southland, overcast mornings developing into sunny afternoons with temperatures in the 20s and no wind. Some places are looking for a shower. Farmers are getting lambs away to the works and we’re told prices are holding up satisfactorily. Feed levels on dairy farms have picked up. There is a huge surplus of balage in the region. The only concern is Southland tends to provide it when it’s going to be needed so farmers are wondering what winter will dish up.

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

Livestock Insight

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

Livestock Outlook

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

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

agrihq.co.nz 0800 85 25 80

2476AGHQ

SI SLAUGHTER STEER ( $/KG)

DON’T STOP HERE...


54

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

Rain gives store markets a boost Autumn rain for many areas has brought some confidence back into store cattle markets with most sales showing a firm tone last week. Volume for cattle (excluding the weaner fairs) is still on the low side as vendors hold off selling until prices improve more. Lambs have also shown improvement over the last week, with prices firming around $10 per head. NORTHLAND Wellsford store cattle • R3 Hereford-Friesian steers, 432-520kg, lifted to $2.70-$2.73/kg • R3 Hereford-Friesian heifers, 395-461kg, earned $2.65-$2.67/kg • R2 Hereford heifers, 393kg, managed $2.66/kg • R2 Angus and Angus-cross bulls, 336-365kg, traded at $2.49$2.60/kg • Weaner Friesian bulls, 231kg, returned $660 A tidy yarding of just under 325 cattle were penned at WELLSFORD last Monday including more older cattle. The market was steady for most and improving for some. R3 Hereford-cross steers, 416-590kg, traded at $2.55$2.72/kg. R2 Friesian and Friesian-cross steers, 306-405kg, earned $2.39-$2.44/kg, with Hereford-cross, 388kg, lifting to $2.90/ kg. Devon-cross heifers, 286-399kg, returned $2.48-$2.66/ kg, and Hereford-Friesian, 348-362kg, maintained levels of $2.64-$2.70/kg. Friesian and Friesian-cross made up the lion’s share of weaner heifers but were harder work and at 154kg could only muster $205. Autumn-born weaner Hereford-Friesian steers, 303kg, were well sought after at $750. Kaikohe weaner bull and store cattle sale • Top Simmental bulls made $910, $3.04/kg and second cuts, $700$740, $3.25-$3.35/kg • Autumn-born Friesian bulls sold to $780-$820 • Good spring Friesian bulls made $670-$750 and medium, $600$650 • Light Friesian bulls, 150-180kg, made $560-$610, $3.10-$3.40/kg • Most beef-cross bulls sold for $580-$750, $3.00-$3.20/kg The last fair in the first round for KAIKOHE was the bulls last Wednesday, with 850 offered. The market met expectations with all sold. Friesian bulls were very consistent, with most weight ranges trading at $2.80-$3.00/ kg. Very small Jersey bulls made $300-$330, and dairy-beef, $460-$540, while tail-end Friesian sold for $400-$450. A very small entry of store cattle consisted of R2 beefcross steers at $2.75-$2.80/kg and heifers, $2.45-$2.60/kg. Hereford bulls made $1140-$1200, $3.10-$3.14/kg.

COUNTIES Tuakau sales • Weaner Angus steers, 226kg, made $790 • Weaner Angus and Hereford-Friesian heifers, 118-160kg, made $450-$550 • Prime heifer prices lifted by 5c/kg and Hereford-Friesian, 569kg, earned $2.72/kg • Store lambs traded at $70-$113 TUAKAU drew another small yarding of 200-head last Thursday but the market was steady, Chris Elliott of PGG Wrightson reported. Hereford-Friesian and Angus-cross steers, 414-530kg, traded at $2.81-$3.01/kg, while weaner Angus and Hereford-Friesian steers, 125-226kg, made $540-$790. Friesian bulls, $280kg, earned $790. Well-marked heifers in the 300-360kg range sold up to $2.72/kg, with lesser types at $2.36/kg. Prime cattle prices lifted slightly last Wednesday. Good steers made $2.65-$2.70/kg, and good heifers averaged $2.65/kg. Beef cows returned $1.55-$1.60/kg and boners averaged $1.40/kg. Good prime lambs fetched $130-$153 last Monday and mediums $120-$130. Ewe prices eased slightly, with the best making $145. Good-mediums averaged $110 and light, $70.

WAIKATO Frankton prime and store cattle sale • R2 Hereford-Friesian steers, 380-427kg, lifted to $2.83-$2.89/kg. • R2 Hereford-cross heifers, 312-337kg, traded at $2.40-$2.48/kg

• R2 Angus-Friesian bulls, 398kg, earned $2.66/kg • Weaner Hereford-Friesian heifers, 117-180kg, managed $420$545 • Friesian boner cows, 465-528kg, lifted to $1.44-$1.53/kg Just over 440 cattle were penned at FRANKTON last Wednesday. R2 Hereford steers, 323-376kg, improved to $2.63-$2.82/ kg, with Hereford-Friesian heifers, 334kg, steady at $2.63/ kg. Recently weaned autumn-born Charolais-cross steers, 299-357kg, returned $930-$1170, with Hereford and Hereford-cross, 367-410kg, at $1140-$1170. HerefordFriesian steers, 276kg, lifted to $910, and heifers, 226kg, $670. Weaner Hereford-Friesian heifers, 117-180kg, managed $420-$545. Prime beef steers, 533-668kg, returned $2.65-$2.70/kg, while dairy lines, 556-603kg, managed $2.56-$2.60/kg. All prime heifers, 448-488kg, fetched $2.63/kg regardless of breed. Boner crossbred cows, 400-447kg, improved to $1.35$1.39/kg.

BAY OF PLENTY Rangiuru cattle sale • Prime Hereford-Friesian steers, 675kg, made $2.87/kg • Boner Friesian cows, 355-590kg, were $1.52-$1.64/kg • In-calf capital stock R2 Friesian heifers, 380-395kg, fetched $1060$1180, $2.58-$2.99/kg • R2 Limousin heifers, 320-360kg, made $2.66-$2.79/kg • Weaner Charolais-cross steers, 210kg, made $750 The RANGIURU cattle sale last Tuesday hardly took more than an hour. Slim pickings on the store cattle helped the market. R2 beef-cross heifers, 320-385kg, were mainly $2.47-$2.66/kg, while two pens of 165kg Friesian bulls were solid at $540-$550. All classes of prime and boner cattle sold on steady to lifting market. The better half of the store lambs were $98.50-$105.50, while most prime lambs made $110-$125, with a few up to $145.50. Rangiuru beef weaner fair • Angus steers, 175kg, improved to $700 • Angus-Hereford steers, 186-212kg, improved to $710-$750 • Angus-Hereford heifers, 196-227kg, lifted to $605-$660 • Hereford heifers, 136-175kg, improved to $510-$660 • Hereford bulls, 196kg, strengthened to $980, $5.00/kg A total of 915 quality weaners were penned at RANGIURU last Wednesday, with buyers competitive. Angus steers varied with 255-298kg easing to $725-$860, while 214kg held at $780. Angus & Angus-Hereford, 221263kg, also held at $720-$870, as did Charolais-cross, 263kg, $900, and Hereford-cross, 249kg, $800. Angus heifers, 202-246kg, softened to $630-$680, though Angus and Angus-Hereford, 130-156kg, held at $400-$470. Hereford, 267kg, lifted to $760, and Hereford-Friesian, 126176kg, earned $390. Hereford bulls improved with 240-250kg trading at $1180, and 206-218kg, $1000-$1070. Hereford-Friesian, 123kg, managed $580 and Friesian, 143-213kg, $480-$520.

KING COUNTRY Taupo cattle sale • R3 Angus heifers, 453kg, sold well at $2.73/kg • R2 Angus-Hereford steers, 410kg, made $3.15/kg • Autumn-born one-year Hereford-Friesian steers, 295-344kg, fetched $3.08/kg R3 Angus-cross and Hereford-Friesian steers, 480-485kg, sold for $2.49-$2.54/kg, with a larger line of Friesian, 461kg, making $2.51/kg. R2 Angus cattle were in demand and steers, 294-401kg, sold for $3.06-$3.15/kg and the top heifers, 309-342kg, $2.98-$3.00/kg. Better quality autumn-

born one-year cattle heifers and bulls fetched $2.57-$2.65/ kg, while the rest traded at $2.22-$2.46/kg. Weaners struggled, with the top price of $380-$450 paid for FriesianJersey bulls at 128-145kg.

TARANAKI Taranaki cattle sale • R3 Hereford-cross steers, 421kg, made $2.80/kg • R2 Angus-Friesian steers, 382-435kg, sold for $2.90-$2.96/kg • Friesian cows, 465-550kg, firmed to $1.73/kg • Vetted-in-calf Friesian cows, 435-625kg, firmed to $1.81/kg • Decent rain through Taranaki last week boosted pasture growth Decent rain through Taranaki last week boosted pasture growth and confidence at the TARANAKI sale last Wednesday. Prime steers sold well, strengthening to $2.84-$2.93/kg for 531-615kg dairy-beef. Two-year Friesian cows, 333426kg, firmed to $1.85-$1.98/kg. A smaller volume of R2 steers lifted and Charolais-cross, 392kg, made $3.05/kg, while in the heifer pens, Charolaiscross, 350kg, and Hereford-Friesian, 305-434kg, lifted to $2.72-$2.87/kg. There was a small number of weaners, and steers made $410-$575, while heifers varied with lesser quality types at $280 and better types $430.

POVERTY BAY Matawhero sheep sale • Heavy male lambs, strengthened to $137 • Light ram lambs, made $111 • 2th Romney ewes, sold for $120 The MATAWHERO SHEEP SALE had very strong interest and lambs were in good condition which was reflected in prices. Male lambs mostly sold for $119-$126, while ram lambs in the same weight sold very well with top lambs making $140. Ewe lambs were also heavier, and most of these made $106-$127. Mixed age Coopworth run-with-ram ewes in very good condition were bought for $120. In the prime pens, lambs made just above most store lambs at $132, 2th wethers for $148 and 2th ewes make $129.

HAWKE’S BAY Stortford Lodge prime sale • Ten very good Angus heifers, 504kg, earned $2.65/kg • Very heavy prime mixed sex lambs lifted to $146-$166.50 • Very heavy ewes softened to $157.50-$175.50 • Heavy ewes improved to $143-$150 • Light-medium and medium ewes held at $114-$126 Twenty-five cattle were yarded at STORTFORD LODGE last Monday with solid buyer interest. All prime heifers, 605-700kg, traded at $2.56-$2.75/kg, and good Angus cows, 492kg, managed $1.70/kg. Just 168 Prime lambs were penned and were quickly absorbed. Plenty of buyers were on the rails for the ewe section, with a number leaving unsatiated as ewe numbers could not satisfy demand. Very good ewes managed steady returns at $135-$136, whilst good types lifted to $134. Light-medium and medium held at $114-$126, with light ewes improving to $89-$105.50. Light-medium and medium two-tooth ewes traded at $107-$126. Stortford Lodge store cattle and sheep sale • R2 Angus steers, 345kg, made $3.04/kg • R2 Angus heifers, 410kg, fetched $2.91/kg • Weaner Angus steers, 271kg, made $910, and heifers, 238kg, $755 • Good male lambs firmed to $125-$130 • Medium to good ewe lambs lifted to $117-$127.50 Entries were low in both sections of the STORTFORD LODGE sale last Wednesday, though there were still talking points. Angus cattle had a big presence despite the low entries, with the balance of the yarding small lines of mixed quality. A consignment of two-tooth Romney ewes were offered due to a farm lease, though lacked size and sold for $116$128. Ewe lambs from the same place made $116-$121. Lamb prices lifted $12 per head across all types, with most ranging from $117 to $127. Wairoa cattle fair • R3 beef steers sold for $1390-$1500 • Top R2 Angus steers made $1230-$1400 • Lighter R2 Angus steers fetched $890-$965 • R2 Devon-Hereford steers made $1245-$1505 • R2 exotic heifers traded at $1000-$1175 WAIROA held it’s first cattle fair since the end of January with 900 head penned. Steers sold to expectations, mainly to Hawke’s Bay buyers. Good weighted Angus-Hereford and Angus-cross made $1215-$1410, while 30 Hereford fetched $1360. HerefordFriesian made $1015-$1080. Heifers sold better than expected as medium Angus traded at $900-$1055, and 21 good Hereford, $1100.


SALE YARD WRAP

FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019

55

LAST TIME AROUND: Warren, Steph and Cameron Burgess with a pen of their Simmental steers at the final Owaka calf sale on Thursday.

MANAWATU Feilding prime cattle and sheep sale • Boner Friesian cows, 470-545kg, firmed to $1.52-$1.62/kg • In-calf Friesian cows, 370-560kg, made $1.78-$1.86/kg • Heavy prime lambs all made $157-$178 • Mid-range prime ewes sold for $118-$129 • Good autumn-born whiteface heifer calves were $285-$330 Not much changed in the prime cattle markets at FEILDING last Monday, with the main difference being a small lift for bulls and cows. Friesian and Simmental bulls, 600-760kg, were $2.59-$2.68/kg, while most Friesian cows exceeded $1.50/kg. A combination of a stronger market and heavier weights meant half the prime lambs made $156-$170.50, with equal numbers both higher and lower than this range. Most prime ewes were steady at $118-$139. Close to 100 autumn-born calves were well supported by locals. Good Friesian bull calves made $255-$320, with good beef-cross at $300-$350. Rongotea cattle sale • Boner Friesian cows, 425-532kg, made $1.41-$1.67/kg and White Galloway, 455-712kg, $1.96/kg • Weaner Friesian bulls, 130-230kg, earned $420-$650 • Weaner Hereford-Friesian bulls, 100-215kg, traded at $410-$640, and heifers, 105-142kg, $410-$580 • Weaner beef-cross heifers, 95-168kg, made $450 Entries were low again at RONGOTEA last Wednesday, New Zealand Farmers Livestock agent Darryl Harwood reported. The biggest section was feeder calves with 100 offered. Friesian bulls made $210-$270, Hereford-Friesian $180$335, and Angus-cross, $150-$230. Hereford-Friesian heifers sold for $140-$250, and Angus-cross, $150-$180. Feilding weaner fair • Exotic bulls, 300-345kg, firmed to $3.44-$3.55/kg • Traditional steers, 205-265kg, were $3.63-$3.89/kg • Traditional heifers, 170-240kg, lifted to $3.23-$3.33/kg • Exotic heifers, 190-320kg, consistently made $2.97-$3.17/kg FEILDING played host to 900 weaners last Thursday, which enjoyed a solid sale based on results leading up to it. Traditional steers were the main focus for the day, and easily matched the better prices at other fairs around the North Island. The lighter end, 190-200kg, sold well at $775-$805, $3.95-$4.08/kg, with the rest centred around the $3.70-$3.75/kg. Charolais-cross steers, 225-290kg, were harder to move and finished at $3.04-$3.16/kg. Lighter exotic bulls, 255-270kg, took a clear step up from a week ago to $3.35-$3.52/kg, whereas the top-end held steady. Traditional heifers consistently made a 20c/kg premium on exotic lines as 175-240kg were usually $3.23-$3.33/kg. Feilding store sale • Traditional & Simmental-cross R2 steers, 435-470kg, were $2.96$3.09/kg • R2 Friesian bulls, 425-505kg, lifted to $2.56-$2.67/kg • Traditional & Charolais-cross R2 heifers, 390-435kg, were $2.81$3.03/kg • Good male lambs lifted to $124.50-$132.50

• Good ewe lambs lifted to $114-$124.50 A selection of almost 1400 cattle made for a big early crowd at FEILDING. Many were after the straight-beef R2 steers which sold relatively well, centred around $3.00/kg, though some 385-415kg traditional were more like $3.10$3.24/kg. A lot of R2 Friesians bulls firmed to $2.56-$2.75/ kg. Weaner dairy calves were out in numbers too. Friesian bulls, 155-180kg, were $570-$665, whereas the better 125-150kg beef-cross heifers were $500-$565. A very large store lamb yarding attracted even more buyers and pushed prices upwards another few dollars. Very few male lambs were below $115, with top cuts $134-$138. Two very large lines of ewe lambs were brought for breeding at $135.50$141 each, but otherwise these were evenly spread across $102.50-$124.50, excluding some tail-enders. A few pens of good 5-year and older ewes eased to $137-$148.

CANTERBURY Canterbury Park prime cattle and sheep sale • Prime beef-cross steers, 525-635kg, were $2.58-$2.64/kg • Prime beef-cross heifers, 425-535kg, made $2.45-$2.58/kg • R2 beef-cross steers, 410-460kg, were $2.49-$2.55/kg • Average store lamb price lifted to $104.50 Good prime lambs held at $135-$159 Small tallies and mixed quality were what bidders found at CANTERBURY PARK last Tuesday. In the store cattle pens R2 Hereford and Murray Grey heifers, 370kg, made $2.60$2.66/kg, while poor quality 125-180kg Hereford-Friesian steer calves earned $300-$400. Prime cattle softened and only two lines of prime steers and a single 445kg Speckle Park heifer made $2.70/kg or more. A few 505-550kg Friesian cows made $1.53-$1.57/kg. Store lambs lifted across the board with good lines at $115-$121 and medium $106-$114, while all but the tailenders were $90-$101. Prime lambs held while prime ewes dropped by $3-$4/hd. Coalgate cattle and sheep sale • Dairy cows, 510-605kg, held at $1.51-$1.59/kg • R2 Hereford-Friesian heifers, 405kg, were $1020, $2.51/kg • Prime lambs eased $2-$3/hd • Good store lambs firmed to $114-$121 • Top-cuts of five to six-year Romney ewes made $149-$167 There was a sharp contrast in action at COALGATE last Thursday, where the cattle pens were quiet, but there were plenty of ewes and lambs. Little of note was sold in the store cattle, while prime cattle were mainly steady-to-firming, with 550-640kg steers at $2.68-$2.77/kg. A small lift awaited the store lambs – medium types made $103-$112, and lighter $89-$101, though two heavy male pens sold to $127-$129. A little over 1500 breeding ewes had mixed success. Good one to two-shear ewes were $175-$190, but other younger lines earned $142-$143. Older ewes peaked at $148-$167, with $120-$138 for medium and $90-$97 for all but the tail-enders. Prime ewes held but the lambs eased.

SOUTH-CANTERBURY Temuka prime and boner cattle; all sheep • Prime beef steers, 600-700kg, held at $2.53-$2.61/kg • Boner Friesian heifers, 440-530kg, firmed to $2.25-$2.45/kg

• Boner Friesian cows, 435-535kg, eased to $1.20-$1.31/kg • Medium store lambs lifted to $103-$114 • Mid-range prime lambs were $120-$139 A small turnout of prime cattle was met by a similarly small gallery of buyers at TEMUKA last Monday. Boner Friesian cows eased, rarely making more than $1.30/kg. Jersey cows, 375-470kg, fetched $1.06-$1.20/kg. Prime steers were steady to firm, with a pen of 710kg Angus the strongest at $2.66/kg, while 510-685kg Hereford bulls traded at $2.25-$2.38/kg. More buyers showed for the store lambs, lifting good types to $110-$120 and medium, $101-$109. Both prime lambs and prime ewes held. Temuka store cattle sale • Gelbvieh-cross steers, 368- 462kg, sold for $3.00-$3.16/kg • Gelbvieh-cross heifers, 346-454kg, made $2.60-$2.77/kg • R2 Angus bulls, 396-415kg, lifted to $2.53-$2.65/kg • Weaner Shorthorn-cross steers, 347kg, made $990 An annual consignment of Gelbvieh-cross steers and heifers featured at TEMUKA last Thursday, which drew a crowd from Canterbury to North Otago. The steer market firmed, while limited demand for heifers was reflected in prices. R2 Angus steers, 380-396kg, sold for $3.14-$3.21/kg, and Charolais and Charolais-cross largely traded at $3.02/kg. Purebred Gelbvieh heifers, 399-419kg, sold for $2.76- $2.77/kg, while Hereford-Friesian traded at $2.50$2.63/kg. Weaners were mixed and Hereford-Friesian steers, 123-193kg, held at $370-$565. Hereford-Friesian heifers, 97-119kg, earned $230-$320 and Friesian bulls, 139-153kg, $390- $430.

SOUTHLAND Lorneville cattle and sheep sale • Two and three-shear Border Leicester-cross ewes made $190$200 • Four-shear plus Border Leicester-cross ewes earned $150-$160 • Most store lambs held at $70-$110 • Light to medium dairy heifers eased to $1.10-$1.50/kg • Good R2 beef heifers, 320-400kg, earned $2.05-$2.18/kg Breeding ewes and dairy heifers featured at LORNEVILLE last Tuesday, while prime sheep volume was moderate. Lambs firmed to $101-$147, as did mixed age ewes at $70$158 and two-tooth’s, $60-$142. Prime beef-cross steers and heifers made $2.20-$2.30/kg, and good dairy heifers, $1.80-$1.90/kg. Heavy and medium dairy cows held at $1.25-$1.50/kg, with lighter types at $1.00-$1.20/kg. Store quality was mixed and R2 Friesian bulls, 392kg, earned $2.11/kg, and Hereford-cross steers, 423kg, $2.24/ kg. Younger Friesian bulls, 180-216kg, made $480-$525, and Hereford-cross heifers, 163kg, $490. Charlton sheep sale • Prime lambs eased to $109-$141 • Medium to heavy ewes firmed to $115-$185 • Light ewes firmed to $90 • Rams sold for $60-$136 • Store lambs continued to ease to $50-$104


Markets

56 FARMERS WEEKLY – farmersweekly.co.nz – March 25, 2019 SI SLAUGHTER LAMB

NI SLAUGHTER STEER

NI SLAUGHTER COW

($/KG)

($/KG)

GOOD MALE STORE LAMBS AT FEILDING

($/KG)

($/HD)

6.70

5.30

3.70

124.50 - 135

high $3.06-$3.16/kg $3.45-$3.55/kg Charolais-cross lights R2 Gelbvieh-cross bulls, 301-347kg, at

Demand signals plus-$7/kg Hugh Stringleman

F

hugh.stringleman@globalhq.co.nz

OUR months of price rises on Global Dairy Trade have resulted in repeated farmgate milk price predictions for next season over $7/kg. The GDT index rose 1.9% at the last auction, the latest in a 26% market increase since mid November. Whole milk powder prices rose 4% to average US$3317/tonne and are now 27.6% higher than in November. Butter rose 9% to US$5089/tonne on the same day Fonterra blamed butter stocks in China for a poor first-half result in food service sales.

The risk for apathetic buyers waiting in the wings is that the season could end sharply. Emma Higgins Rabobank It said the market overhang has now been absorbed and prospects for sales in the second half are much brighter. The results of the latest GDT were not all positive, however, with anhydrous milk fat falling 3.1%, skim milk powder 2.4% lower and lactose down 1%. ASB senior rural economist Nathan Penny lifted his milk price prediction for this season by 35c to $6.60 and suggested upside risk to his already bullish $7 for next season. NZX dairy analyst Robert Gibson said his model already indicates a farmgate price of $7.34 based on the current climate and futures market expectations for WMP and butter contracts next season. Rabobank dairy analyst Emma Higgins said the risks from drought to New Zealand milk collections for the rest of this season underpin the world

BULLISH: ASB rural economist Nathan Penny suggests there is now a chance his $7/kg MS for next season will go higher.

dairy products market. “The risk for apathetic buyers waiting in the wings is that the season could end sharply should no meaningful rain emerge over the final weeks of March for hot spots in need.” Fonterra adjusted its collection forecast to 1510m kilos, flat on the previous season, because of the abrupt slowdown in per cow yields and suggested other milk processors were slow to adjust their forecasts. It was not because Fonterra was losing market share but a realistic estimate of

the autumn prospects compared with a good 2018 autumn, chief executive Miles Hurrell said. Favourable weather has been reported in the first weeks of spring in Europe and buyer attention will turn from NZ to the northern hemisphere spring peak, Higgins said. ASB trimmed its NZ season forecast to a 3% increase in milk production, down from 5%. Penny said global milk supply remains soft while demand, particularly from China, remains firm.

steers, 368-452kg, at Temuka

Feilding Weaner Fair

ACROSS THE RAILS MEL CROAD

Opportunities for beef look to be positive INTERNATIONAL market demand for beef appears to be improving with a chance to capture further opportunities throughout this year. The United States imported beef market has a more positive feel to it. Seasonally, US imported beef prices are firmer through this period on the back of increased demand and improved lean domestic prices. Despite higher beef slaughter out of New Zealand and Australia recently, the US has not seen a big increase in import supplies because China has absorbed much of that beef. In the last two months China has emerged as an even larger player on the beef scene. Chinese protein demands are changing as disease concerns have rocked both the pork and poultry industries. Many are turning to sheep and beef with demand for these proteins soaring. NZ is now sending more beef to China than to the US. Season-to-date beef exports to China have lifted to 61,000t, 6000t more than we have sent to the US. China is also dipping into the manufacturing beef market. While still dominated by the US, in the last two months China has taken close to 10,000t of manufacturing beef that would have usually headed to the US. The expectation is Chinese demand for beef is not going to go away any time soon. Further, Australia continues to battle a drought that is having devastating consequences for its breeding herd numbers. Female cattle make up close to half the weekly cattle slaughter rates. Recent rain has done little to stem the flow of cattle into processors. When they do get a sustained break in the weather, it is expected there will be at least a two-year drop in slaughter rates as Australian farmers look to rebuild breeding numbers. While global markets are absorbing the heightened supply of beef, it is apparent, based on demand fundamentals, there will be opportunities to take advantage of any supply shortages as they start to appear. That puts our beef exporters in a favourable position. mel.croad@globalhq.co.nz

Find out more about AgriHQ at agrihq.co.nz

SHEEP JETTER Sheep dipping… made easier!

7500

$

+ GST

Innovative Agriculture Equipment

LK0095906©

• Manufactured from stainless steel • Fantastic penetration • Electric Eye • Get one now before price increase • 800-1000 sheep per hour

Serving NZ Farmers since 1962

www.pppindustries.co.nz / sales@pppindustries.co.nz / 0800 901 902


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.