Farmers Weekly NZ March 25 2023

Dairy boosts rural outlook

HIGH margins and sales volumes in Foodservice and Consumer products have delivered record numbers for Fonterra in its first-half results for the 2024 financial year.

Earnings from continuing operations were up 14% to just under $1 billion and reported net profit after tax rose 23% to $647 million,

Earnings per share of 40c have taken a big bite out of the full-year guidance of 50c-65c and enabled an interim dividend of 15c, up from 10c a share in the previous financial year.

earnings reversal in Ingredients, down $383m to $467m.

Last year Ingredients contributed all the interim earnings and this year that share fell to 46%.

Higher margins in Foodservice and Consumer came about because of lower milk input costs compared with the two prior seasons and momentum from higher market prices achieved after worldwide covid restrictions were relaxed.

“Gross margins are expected to continue to tighten in the second half of FY24 reflecting the recent increase in the price of reference products on GDT that inform the cost of milk,” Fonterra said.

Chief executive Miles Hurrell said his team delivered a strong first half in a trading environment with a backdrop of market volatility and geopolitical uncertainty.

The strong balance sheet had allowed the co-operative to pay the extra dividend.

Miles

Net debt has been dragged down by $1.6bn to $4.2bn.

Revenue was down $2bn to $11.2bn, due to lower prices for ingredients, and operating expenses were down $1bn.

Large earnings losses and writedowns in the Consumer division in FY23 were comprehensively improved this year by $300m to post $177m and the Foodservice division improved by $200m to $342m.

They combined to outweigh the

He said the drop in earnings in Ingredients was more than offset by the lift in Consumer and Foodservice.

Hurrell called global supply and demand “finely balanced”, while the fundamentals remain positive overall.

“There are signs of demand stabilising. China’s domestic milk production is re-balancing and their inventory levels are normalising,” he said.

The softer demand from China over the past year saw an in-flow of volumes from Latin America, Africa and the Middle East. Demand from the rest of Asia is

Good on ya mate, and mates of mates

#MOM4M is heading to the Woolshed at the Gisborne A&P Society Showgrounds on April 19. Organised by Hawke’s Bay farmer Matt Holden, Mates of Mates 4 Mates (#MOM4M)

Hugh Stringleman MARKETS Fonterra

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our pioneering spirit tells us nothing’s out of reach

News in brief

Drought support

The medium-scale adverse event classification in place in the upper South Island has been expanded to cover Canterbury and Otago.

Agriculture Minister Todd McClay said the decision to unlock additional support across Canterbury and Otago was made as the intense dry spell persists and looks unlikely to improve in the short term.

Lincoln growth

For a fifth successive year Lincoln University increased its student enrolments.

The university said enrolments for the first semester of 2024 are 20% higher than a comparable period last year, which has put it on track to exceed 5000 Equivalent Fulltime Students by the end of the year.

Numbers of domestic EFTS have grown 21%, international by 13% and postgraduate by 58%.

Eczema solutions

The government will enter into a $20 million joint partnership with the primary sector to find solutions to eradicate the impact of facial eczema on livestock.

The Eliminating Facial Eczema Impacts programme, jointly funded by Beef + Lamb NZ, the government and the primary sector, will save farmers an estimated $332m a year. It will support multiple approaches, and bring together many of the country’s top researchers.

Dairy rebound

Dairy prices have rebounded in ASB’s latest Rural Quarterly with prices up 22% since their lowest point.

However, prices are still around 30% below the peaks they enjoyed the previous year.

ASB economist Nathaniel Keall said the more bullish growth outlook for dairy has a lot to do with changing expectations around what monetary policy will do.

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.

Coalition jobs cull gets underway at MPI

THE Ministry for Primary Industries has started consulting staff on proposals that will see hundreds of jobs lost as it aims to trim its workforce by 9%.

The coalition government has asked the MPI to finding savings of 7.5% in the coming financial year and initial proposals released to staff last week will result in a net reduction of 384 positions, of which about 40% are currently vacant.

In a message to staff from MPI

director-general Ray Smith, he said in the past five years the MPI head count has increased by more than 1100.

As at June 30 last year, MPI employed more than 3800 people.

In his letter, Smith says the proposals will not result in any reduction to frontline services

Importantly, we will seek to place as many affected people as possible into alternative roles.

Ray Smith MPI

Continued from page 1

also up compared to the same time last year, he said.

Hurrell’s sixth financial year as chief executive has already set trading and balance sheet records.

Looking back to his first year in charge, FY19, the interim net profit was a miniscule $80m and the debt load $7.4bn.

While net profits quickly

improved into the $400m to $500m range in following years, debt remained stubbornly above $5bn.

His key performance targets included bringing debt way down and ramping up return on capital, which has jumped from 8.6% in January 2023 to 13.4% this year.

The gearing ratio is now 34% compared with 50% when he first took over.

and statutory roles such as veterinarians, animal welfare, fishery and food compliance officers or biosecurity teams at the border.

“However, we are proposing changes to roles and reporting lines in other areas of MPI, including the disestablishment of some positions.

“Importantly, we will seek to place as many affected people as possible into alternative roles.”

The proposal also includes reducing staff through a mix of not filling existing vacancies and disestablishing other roles.

It plans to merge similar functions to increase efficiency, align workstreams and teams to deliver on the government’s priorities, ensure the sustainability of programmes and services and deliver administrative and management efficiencies.

Smith says senior leaders have also identified savings through reduced use of contractors and consultants and leaving some positions unfilled.

“Beyond this, we have been looking at both the programme and people resource costs of our operations.”

Smith says its search for savings will ensure the MPI continues to deliver its core function, but with great efficiency.

The extra 1100 staff employed in the past five years were across the department.

“These roles have been in areas across our biosecurity

Following the interim results announcements the share market price of Fonterra Shareholder Fund (FSF) units rose 10c to $3.70 and that of Fonterra Co-operative Group (FCG) supply shares rose 5c to $2.42.

The interim dividend of 15c will be paid on April 11 and represents about $22,500 for the average-sized Fonterra supply farm.

system, in regional on-the-ground support, in policy and trade to help work through complex issues and across our regulatory systems in areas including compliance, fisheries, animal welfare, food safety and the NAIT system to protect our sector’s

$57.4 billion export earnings and New Zealand’s excellent reputation.”

Consultation with staff began last Thursday and will run through until April 9 with final decisions, following staff input, expected by mid-May.

Capital restructuring lures back farmers

Staff reporter MARKETS Fonterra

FONTERRA’S new capital structure has been cited as the reason some farmers have returned to supply Fonterra, chief executive Miles Hurrell says.

The new structure has been in place for a year, and some are wanting to take advantage of the flexible shareholding options now available to them, he said in announcing the co-operative’s interim result.

“This, coupled with the co-op’s stability, means we have a strong pipeline of farmers wanting to join the co-op.

“We have also been utilising our scale, optionality and strong balance sheet to deliver benefits to farmers. This includes getting cash to farmers sooner through our revised Advance Rate guideline,” he said.

Earlier in the financial year, Fonterra returned $804 million to farmer shareholders and unit holders following the divestment from Soprole. It has also completed the sale of its DPA Brazil joint venture with Nestlé to Lactalis. On the sustainability front, Fonterra has been working with customers to commercialise its farmers’ sustainability credentials.

“This includes introducing to customers our regenerative

REGEN: CEO Miles Hurrell says Fonterra has been working with customers to commercialise its farmers’ sustainability credentials, including highlighting ‘our regenerative agriculture position’.

agriculture position, which recognises our farmers’ pastural farming system.

“We’ve continued to decarbonise our New Zealand operations as we progress toward the co-op’s Scope 1 and 2 emissions reductions target, including commissioning our wood biomass boiler at Waitoa and announcing plans to electrify a 20-megawatt boiler at our Edendale site.

“We’ve also deployed a new technology within our manufacturing base, which has unlocked 8000 MT additional production capacity for our highvalue UHT cream,” he said.

Neal Wallace POLITICS Governance

INCREASE: MPI director-general Ray Smith says in the past five years the MPI head count has increased by more than 1100.

DEMAND: Murray

Behrent, Alliance

Group’s livestock manager, says demand for lamb remains strong in the main markets, but the prices they are prepared to pay are less than optimal.

Hopes fading for a late-season lamb rally

Neal Wallace MARKETS Sheep and beef

THERE appears little likelihood of a lateseason rally in lamb prices, judging by the latest forecasts from exporters.

Silver Fern Farms is forecasting farmgate prices for lamb through to May of $5.70 to $6/kg, which is little different to January forecasts of $5.70-$6.10.

Demand and prices are strengthening in the United States but SFF chief executive Dan Boulton warned of renewed competition from Australia.

“Overall we have seen less product from Australia but that’s going to change, with expectations that product will start to flow freely from this market,” he said in his latest market update to suppliers.

“Australian sheepmeat exports have been up 3% year on year, representing a significant additional volume, and 2023 had already been a big year for them.”

Murray Behrent, Alliance

Group’s livestock manager, said the co-operative has released minimum-price lamb contracts of $6-$6.20/kg applicable from late April to the end of May.

He said this gives farmers certainty as the kill ramps up.

Behrent said demand for lamb remains strong in all our main markets, but the prices they are prepared to pay are less than optimal.

“The whole world is looking for protein but at subdued pricing.”

Behrent believes lamb prices will gradually improve over the next six to seven months as economies recover, but a return to the heights of previous years could be some time coming.

Meat and Livestock Australia (MLA) said lamb prices started the 2024 season strongly at AUS786c/ kg, marginally higher than at the same period for 2023, but in the past 10 weeks these have fallen 20% compared to last year.

An influx of winter-born lambs will start to flow shortly and the MLA notes sheep numbers through saleyards are 13% higher than at the same time last year.

SFF’s prime and bull beef forecasts have increased slightly on the back of higher prices and lower production in the US, with Boulton saying the weekly beef kill has fallen below 600,000 a week.

The Chinese market remains flat for beef due to ongoing economic uncertainty and excess supplies of protein.

Overall we have seen less product from Australia but that’s going to change.

Dan Boulton Silver Fern Farms

SFF’s updated price forecasts through to May are mutton $2.30$2.65 (January forecast $2.10$2.40), Prime beef $5-10-$5.80 ($5-$5.60), and bull $5.20-$5.80 ($5.10-$5.50). Cow is unchanged at $3.50-$3.90 but venison is back slightly at $8.65-$8.75 ($8.70-$8.75).

Alliance forecasts through to May for prime and bull beef are

Autumn dairy prices land with a thud

Hugh Stringleman MARKETS Dairy

GLOBAL Dairy Trade prices have suffered their largest fall since August last year, with milk powders and lactose prices down 4-5%.

Prices slumped for six of the seven dairy products traded, only anhydrous milk fat increasing by 2.5%.

Skim milk powder was down 4.8%, lactose down 4.4%, whole milk powder 4.2%, cheddar 1.9%, butter 1.4% and mozzarella 1%.

The overall GDT index was dragged down 2.8%, on top of the 2.3% fall during the first fortnightly March auction.

Fonterra said it has progressed well through the selling season and had confidence to narrow

its milk price forecast to $7.50 to $8.10, maintaining the mid-point of $7.80.

But the global market effects on this season’s farmgate milk price should be cushioned by Fonterra’s advanced sales programme and foreign exchange hedging policies.

Westpac chief economist Kelly Eckhold said WMP prices are now

A decrease in product pricing at the second March event of the year is unsurprising given the seasonal overlap in milk production.

Rosalind Crickett

NZX

down 8% from an early February peak, which in itself was the highest WMP price since late 2022.

“This suggests some modest downside risk to our $7.90/kg milksolids current season estimate but is more relevant for next season’s $8.40 estimate should these weaker trends persist.”

NZX dairy analyst Rosalind Crickett said the WMP buying strength came from southeast Asia and Latin America.

“A decrease in product pricing at the second March event of the year is unsurprising given the seasonal overlap in milk production of both the northern and southern hemispheres.

“The combination of weaker demand from north Asia and a milk supply glut is putting pressure on pricing.”

A chance to make your Voice heard

AGRIHQ wants to hear your views on the issues and challenges facing the primary sector.

The Farmer’s Voice is a new initiative launched this week by AgriHQ, the publishers of Farmers Weekly, which provides a platform for farmers to share their thoughts on farmingrelated issues.

Through discussions and regular surveys hosted by The Farmer’s Voice, farmers can identify topical issues and express their views, which can then assist sector and political leaders in making decisions that shape the direction of the industry.

AgriHQ publisher Dean Williamson said farmers want more agency over the challenges, obstacles and the direction of change to their industry.

“We need more understanding of the challenges, issues and where farmers are at,” he said.

“That’s what The Farmer’s Voice is about, understanding those positions.

“By joining The Farmer’s Voice you’ll be working with

$5.20-$5.70/kg and cow $3.30$3.60, with Behrent saying much of that is driven by the US shortage.

AgriHQ senior analyst Mel Croad said current sheepmeat and beef pricing is consistent with those forecasts.

Unlike last year, when exporters were waiting and hoping for China to fire, Croad said the state of that market has been built into forecasts.

She does not see much upside in the short term for sheepmeat pricing but notes that the smallest US cow herd in 70 years

AgriHQ and partners to provide the real story of what farmers are experiencing, and you can expect greater accountability as a result.”

The new tool uses Farmers Weekly to reach into the agricultural community through print and online platforms.

The names of those participating will be anonymous but the results will be shared with all those taking part.

Group findings will be studied and reported by journalists and analysts at AgriHQ and brought to the attention of decisionmakers in industry bodies and the government.

The first project is to determine what it is like to be a farmer in New Zealand today, and what the most important issues are for industry leaders to be aware of.

MORE:

Farmers can participate at https:// www.agrihq.co.nz/thefarmersvoice

is underpinning optimism that beef prices could remain buoyant through until spring at least.

Two years of drought have forced the liquidation of the US cow herd and it is now entering the rebuilding phase.

Croad’s only reservation is that US domestic beef prices could be rising too rapidly, increasing in recent weeks by US50c/lb compared to the usual US8-10c/lb.

“There needs to be a little bit of caution that the market doesn’t overheat, forcing prices back down again.”

SLUMP: Prices slumped for six of the seven dairy products traded, including whole milk powder, which dropped 4.2%.

Cash support will flow to greener dairy

Bryan Gibson MARKETS

Dairy

FONTERRA’S plan to reduce its Scope 3 emissions will ensure the co-operative and its farmers’ ability to access capital, director of sustainability Charlotte Rutherford says.

The Financial Sector (Climaterelated Disclosures and Other Matters) Amendment Act 2021 compels hundreds of New Zealand’s major companies to report on emissions, and Rutherford told the Farmers Weekly In Focus podcast that banks are also taking a keen interest in how customers are reducing their carbon footprints.

“If I’m in a farmer meeting, I’ll often ask the farmers to put up their hand if the bank manager has asked to see the Farm Environment Plan or the Farm Insights Report, and you do get quite a few tentative hands popping up,” Rutherford said.

“As I point out, that isn’t necessarily just because they’re interested in the fabulous content of those plans, but they’re really interested in the risk with the book for where things sit in terms of sustainability.”

Customers are also setting emissions reduction targets and

METRICS: Fonterra director of sustainability Charlotte Rutherford says the likes of Nestlé and Mars have big emissions reduction targets out to 2030.

ourselves as a major player in the food-producing world, particularly in dairy, Rutherford is under no illusions that Fonterra’s big customers have options.

“There is a massive amount of money and time and research going into reducing methane globally. And a lot of that is [targeting] the more predominant type of farming dairy farming system, which has housed cows.

“So there are many pieces of technology that will work in a housed-cow system that may not work so well in a pasture-based system. That’s a risk for us that [we could be] leapfrogged by other dairy producers in the world, and they could offer a lower footprint.”

expect the food they buy to come from like-minded sellers.

“We have many of our customers that are looking at their own emissions profiles and have put in targets to reduce them,” she said.

“So the likes of Nestlé and Mars have big targets out to 2030.”

And while we often think of

Taupō sale a hit for central plateau

Alex Coddington MARKETS

Livestock

ON Monday March 18, the second week of the newly introduced cow and cattle sale took place at the Taupō saleyards.

Agent companies PGG Wrightson and Carrfields Livestock joined forces with Central Livestock to provide local dairy farmers a place to offload stock at auction.

The central plateau has become widely recognised as a successful area for dairy farming in recent years and the opportunity for a sale in this space has been years in the making.

The top-notch facilities at Central Livestock’s saleyards, which include well-supplied holding paddocks, provided the

perfect setting for such a sale.

So much so that what was originally planned to be a fortnightly event has been occurring weekly and is set to continue till the cows come home, or until there are none left to sell.

There was an equally split turnout of buyers in the rostrum and online as demand for cows has been strong throughout most of the North Island in recent weeks.

Demand for cows at the processors has been steady while the strength of demand from landowners seeking a management tool for rough paddocks kept the bidding competitive.

The supply for this sale was bolstered by a timely offload

from local dairy farmers eager to capitalise on the buoyant market while streamlining the tail-end of their herds.

A total of 320 cattle were brought to the sale, comprising 196 boner Friesian and Friesiancross cows and 72 Friesian and Friesian-cross heifers.

Also up for grabs were 24 R2 Hereford bulls and a handful of dairy-beef weaners. Boner Friesian cows, 396-610kg, made $1.83$1.95/kg while Friesian-cross types, 364-512kg, returned a little less to range from $1.51/kg to $1.81/kg.

R2 Friesian and Friesian-cross heifers, 294-360kg, varied from $2.49/kg to $2.83/kg. Of the 24 R2 Hereford bulls, most weighed 466490kg and returned a firm price of $3.12-$3.14/kg.

The likes of Nestlé and Mars have other challenges to consider, beyond what their own retail customers want, Rutherford said.

“There’s other drivers besides their consumer values ... they operate multi-nationally, across the world with different regulations, different risks of carbon tax and things that will

impact the businesses. So they have to balance all of that, not just the black-and-white chain back to the consumer and wanting to pay for that.”

Fonterra’s Scope 3 plan targets a 30% reduction in emissions

[Banks are] really interested in the risk with the book for where things sit in terms of sustainability.

Charlotte Rutherford

Fonterra

intensity by 2030, but only 7% of that relies on new technology.

Rutherford admitted it will be challenging to meet the target, but promises the co-operative will be right there with farmers.

“We have to be transparent with our farmers – we understand what we’re asking and what we need to support them through.”

HOLDING: Cows populating the holding paddocks at the Taupō saleyard.

MORE: For more market insights, browse the range of AgriHQ’s livestock reports. Tailor a subscription to suit your needs at www.agrihq.co.nz/livestock-reports

Agribusiness visionary Allan Pye: 1941-2024

Annette Scott PEOPLE Agribusiness

many sectors

of New Zealand farming.

Born in South Canterbury in 1941, Pye grew up on the family farm in Temuka and after leaving school at the age of 14 began a farming career that would span almost 70 years.

He started picking potatoes for two local farmers and instead of wages was offered seed potatoes by one of them. This started a lifelong passion for growing potatoes.

In his early days of farming Pye also owned a hay-baling business, a heading contracting business and even got into the transport business after buying a couple of trucks.

He purchased his first block of land in 1961 at the mouth of the Orari River and a few years later bought a small block at Farm Road, which is still owned by his former wife Diana Pye and farmed by his sons’ business Pye Group today.

From there Pye grew his farming enterprise on both sides of the Tasman and at the time of his death he owned substantial land holdings in Mid and South Canterbury; Rushy Lagoon, the biggest farm in Tasmania; and a large farming operation with his son Mark in Parilla, South Australia.

Pye was always looking at ways to improve both on farm practices and farmgate returns. He was an early adopter of irrigation after travelling to the United States to look at farming practices.

He started a seed-dressing business and was instrumental in the formation of South Island Export Barley Society, which was set up to drive better returns to farmers for growing barley.

In 1981 he was awarded a Nuffield Scholarship and toured the United Kingdom and Europe, buying a dairy farm along the way.

He was a supplier of potatoes, carrots and peas to Watties in Timaru and when they amalgamated operations in Christchurch he worked with local farmers and businesspeople to help establish Alpine Foods, which is now the McCain factory at Washdyke.

The relationship with McCain led Pye to Australia and the formation, with Mark, of Parilla Premium Potatoes, which is now one of Australia’s biggest potato, carrot and onion growers.

Hailed as perhaps his biggest business success was the formation of Dairy Holdings in 2000.

This started in conversation with the late Allan Hubbard at a family wedding and soon after Pye set out to purchase about 30 dairy farms previously owned by Tasman Agriculture and Dairy Brands.

For 14 years he was a cornerstone shareholder of what is today the largest milk supplier to Fonterra.

Pye was a strong supporter of irrigation schemes in Canterbury above being a shareholder through his various land holdings. He invested funds in Rangitata South Irrigation and at a crucial time purchased excess shares in Central Plains Water, ensuring the scheme could go ahead. One thing standing out throughout his farming career was his collaboration with others.

Whether it be the seed business, the Barley Society, Alpine Foods, Rushy Lagoon, Dairy Holdings or his farming partnerships with his family and other shareholders, Pye was often the visionary who surrounded himself with others that could help make those visions a reality.

Allan John Pye is survived by his five children, 15 grandchildren and five great-grandchildren.

LEGACY: Agribusiness legend Allan Pye leaves behind a legacy of growth and innovation across many sectors of New Zealand farming.

Acland marks a year of change at BLNZ

Annette Scott NEWS

Sheep and beef

TWELVE months in, the position of Beef + Lamb New Zealand chair “has been quite some job”, Kate Acland says.

Addressing the organisation’s annual meeting in Nelson, Acland said following a “somewhat prickly” 2023 annual meeting in New Plymouth, the past year has seen change.

“We have listened and we have responded, we’ve made changes as a direct result of feedback, which we know will make us a stronger and speaks volumes about farmers by farmers,” Acland said.

“Farmers were concerned we had lost our way and lost our focus on research and extension.

“There was a clear view farmers wanted more transparency on how we developed our policy positions to make sure they represent the farmer voice.

“We held more than 50 shed meetings that over 600 farmers attended. We wanted genuine conversation.

“We have embraced developing a

culture of more open dialogue and discussion with farmers and have reflected upon what we’re trying to achieve, which is about ensuring there is a good and better outcome for sheep and beef farmers, today and tomorrow.”

Acland told farmers the BLNZ board has committed to holding these meetings annually as an opportunity to listen to farmers.

Work has started on reviewing methane targets.

Globally respected climate scientists’ research, recognised by the IPCC, clearly shows that methane targets are too high, she said.

“We’re advocating strongly for the targets to be reviewed based on warming science and we’re clear that if our sector is making progress towards these targets then there is no justification for a price on agricultural emissions.

“To inform this conversation we’re engaging directly with climate scientists of the highest international reputation.”

Acland highlighted the launch of several “exciting research programmes”, including work in genetics and parasite management, a sheep genetic

programme expected to add $62 million to the industry’s bottom line every year, Informing NZ Beef bull data though nProve, and most recently the “hugely ambitious” seven-year project to tackle the impacts of facial eczema, a joint venture with the Ministry for Primary Industries Sustainable Food and Fibre Futures fund.

BLNZ is also doubling down on the fight against parasite resistance.

“We have given Wormwise a new lease of life and we’re working with researchers from around the world helping farmers diagnose and deal with resistance on their farms.

“Through all these investments we’re committed to giving farmers the tools and information needed to continue to thrive and face whatever challenges come our way.”

In the policy space, Acland said there are challenges that are unique to the sheep and beef sector.

“While we are always looking for unified positions within the ag sector, we are never losing sight of the needs first and foremost of our farmers. It’s essential that there remains a strong independent

voice for our farmers in any policy conversations.”

While the change in government presents an opportunity to reset some regulations, Acland said environmental policy cannot be a political football that lurches from government to government.

“We have an opportunity with this government to land enduring solutions and my challenge to them is to aim for cross-party

support as they look to rebuild some of these policies.

“We know that meaningful and enduring change in the rural space will be farmer-led, it will be from the ground up.

“We also know that doing nothing is not an option. There will be hard decisions to make.

“Our future is our story and we are committed as BLNZ to that future.”

Director fee hike shot down at BLNZ meeting

Annette Scott NEWS

Sheep and beef

SHEEP and beef farmers voted down a proposal to increase the director fees pool of their industry organisation but lent favourably towards several farmer-proposed remits at the annual meeting of Beef + Lamb New Zealand.

The BLNZ meeting saw three of the five farmer-proposed remits passed, leaving the board to now decide if any further action is required.

First up was Neil Henderson, proposing that BLNZ acknowledge that NZ ruminants are not

causing global warming and the organisation work actively and widely to dispel the myth that livestock are causing significant global warming requiring the need for emissions reduction.

This remit was supported 65.84% in favour with 33.75% against.

Next up was Helen Mandeno, who proposed that when NZ’s beef and lamb marketing advantages, such as pure natural, grass-fed and non-GE, are threatened by policies that undermine the economic importance and uniqueness of these characteristics, majority consensus must be granted from levy payers before BLNZ can

“

support and advance such policies.

This was supported 50.65% in favour; 49.35% against.

Up for remit three was Jason Barrier, proposing that BLNZ establishes a unified emissions position (UEP) for the sheep and beef sector, before entering further emissions discussions and negotiations with the government.

Referring to the key organisations BLNZ, Federated Farmers and Groundswell, which should form part of the UEP, Barrier asked: “How hard can it be to get everyone in the same room to listen and respect, with no more secret conversations?”

This remit was supported 59.86%

in favour; 40.14% against.

Remit four, proposed by Hamish Bielski around BLNZ Genetics and remit five proposed by Nat Small on binding remits, were not supported.

BLNZ chair Kate Acland said the board will discuss the results and the feedback received at the meeting, at the next board meeting in early April.

She noted that the board’s current positions largely align with the remits that were supported, but that the board will consider whether any further action is required.

The results of two company resolutions, to increase directors’

fees and to reappoint KPMG as auditor, were also finalised.

The resolution on increasing director fees was not supported, going down 34.23% in favour to 65.68% against.

Farmer support is required for the proposal to proceed, so the fees will not be increased this year, Acland said.

“We respect this result. We recognise it’s extremely tough on farm at the moment and believe this has been reflected in the voting outcome.”

The voter turnout represented 12% of registered sheep, beef and dairy farmers which Acland said was “hugely disappointing”.

PRICKLY: Kate Acland says following a ‘somewhat prickly’ 2023 BLNZ annual meeting, the past year has seen change.

From the Editor

Agri fact, agri fiction

Bryan Gibson Managing editor

LAST week showed clearly that we’ve still got some way to go to come together as an industry in a way that will help farming flourish.

Over the course of 48 hours I interviewed Fonterra’s director of sustainability Charlotte Rutherford about the co-op’s Scope 3 emissions plans, and the results came through from Beef + Lamb NZ’s annual meeting.

There, levy-payers voted through a remit that is simply not based in reality.

It proposed BLNZ acknowledge that New Zealand ruminants are not causing global warming and that the organisation work actively and widely to dispel the myth that livestock are causing significant global warming, requiring the need for emissions reduction.

There is a mountain of evidence that concludes food producers are part of our climate solution.

Rutherford was frank when outlining why reducing on-farm emissions was vital.

Access to capital is the chief driver. Banks and other sources of capital are not willing to be on the hook for warming the planet, which brings risk to both processors and farmers themselves.

Customers are also setting emissions reduction targets and expect the food they buy to come from like-minded sellers.

“We have many of our customers that are looking at their own emissions profiles and have put in targets to reduce them,” Rutherford told the Farmers Weekly In Focus podcast. “So the likes of Nestlé and Mars have big targets out to 2030.”

And while we often think of ourselves as a major player in the food-producing world, particularly in dairy, Rutherford is under no illusions that Fonterra’s big customers have options.

“There is a massive amount of money and time and research going into reducing methane globally. And a lot of that is [targeting] the more predominant type of farming dairy farming system, which has housed cows.

“So there are many pieces of technology that will work in a housed-cow system that may not work so well in a pasture-based system.

“That’s a risk for us, that [we could be] leapfrogged by other dairy producers in the world, and they could offer a lower footprint.”

Consumer sentiment is a factor as well, but as various surveys have discovered, consumers are still slow to back their beliefs with a willingness to pay a premium for sustainably produced food.

Back at the BLNZ meeting, Jason Barrier perhaps summed up the situation best, proposing BLNZ establish a unified emissions position for the sheep and beef sector, before entering further emissions discussions and negotiations with the government.

“I’m here to talk about Team Sheep and Beef. We need to have our own house in order,” he said.

That’s a risk for us, that [we could be] leapfrogged by other dairy producers in the world.

Charlotte Rutherford Fonterra

An orderly house is built on honesty, trust and sound science.

It’s not something that can be found on social media or in echo chambers.

Our belief in our abilities to produce high-quality and sustainable food is fantastic – it’s what has driven us to where we are today.

But that belief must fuel a continued push to improve.

What we often find, however, is that many in our sector are overcome with confirmation bias – they find the evidence that suits a business-as-usual approach.

No business has ever found success sitting still, so let’s pool our knowledge and call on our innovative spirit to ensure enduring success.

Letters of the week

A prickly solution

Wallace Knight

Taumarunui

HIM again – a belated update on my earlysummer “Why no thistles?” letter.

Readers with long memories and longer teeth will remember reading of my puzzlement, bordering on concern, about the virtual absence of various thistle species in late spring.

A farm that can grow Lilliputian forests was as short on turkey-nesting cover as it was on feed for the production animals.

But then, when the warmth eventually arrived, our thistles arrived. And thrived. As did the rye and clover, after the wet cold spring. And that told the story, in 3D colour, and the reason for no prickles.

On our rule-of-thumb, average, King Country farm, the grass doesn’t start growing until the ground temperature hits 6degC. And so too, it appears, for the weeds. Pricks included.

One-track minds

NM

Broadbent Ohaupo

NEW Zealanders’ obsession with ryegrass/ clover-only pastures is puzzling and lacks common sense.

There are around 16 [pasture] species available, each with its own nutritional value.

Consuming more of them leads to a balanced diet, less need for supplements, increased health to stock and pasture, and would decrease methane emissions. Just so simple.

If people ate only cabbage and lettuce they would suffer sever malnutrition, and that’s exactly what is happening to stock now.

In my view ...

My regen farming journey, 12 years on

Craig Smith

Smith is a Hawke’s Bay beef farmer.

HAVING farmed since the early 1970s with sheep and cattle on Taihape hill country and 50/50 share milking dairy cows in the Waikato, I think you could say I have pretty varied farming experience.

I went to Flock House in ’73 and Massey in ’79 and again in the ’90s to develop new skills, with the long-term goal of farm ownership.

Finding ways to accumulate enough money to buy a farm is a bit of a tall order, but after a failed marriage and a lot of wheeling and dealing, I purchased my “forever” farm 12 years ago.

It’s 282 hectares of easy country, located 50 minutes from Napier and one and a quarter hours from Taupō. I’ve got the Mohaka River on the boundary, full of trout. Red deer, goats, turkeys, pheasants and quail thrive. It’s a regular hunters’ paradise.

I just love this place, but in order to farm it efficiently, there needed to be more paddocks.

I was taught from the beginning, that “fences grow grass”.

Being in the Bay, there is an abundance of broken vineyard posts, so, after a few dozen beers in the right hands, I had enough materials to carve 26 paddocks into 90, with two-wire electric.

The interesting thing was that

the more post holes I dug, the fewer worms I found.

Being a bit of an observant bloke, I got the impression that if the worms aren’t interested in being here, then perhaps this is a rather unhealthy environment.

As a result I went on a bit of a learning exercise, trying to find out how to encourage an increase in the biology in my soil. I want everything to be healthy and happy on my farm.

There’s heaps of stuff on regenerative/organic farming on YouTube, so we watched everything we could, and adapted what we could to our environment.

We rear calves on cows, as a cheap way to get into our own stock, and take the calves through to killing weight at three years old.

This means we have five different classes of stock. We were keeping each class separate from the others, which meant that our rotation was not long enough to give the plants time to adequately recover.

We run all our stock in one mob now. Cows with four calves mothered on each, plus one-, twoand three-year-old cattle all run together. We move them two to three times a day, at times, into ideally 4000kg-plus of dry matter, with the object that they eat onethird and trample the rest.

From a conventional farmer’s perspective, this seems totally wasteful and contrary to everything that we’ve been taught.

However, as a result I haven’t put any fertiliser on the property for 12 years, and I’m on pumice, which will probably leach nutrients more than any other soil.

I put two dressings of lime on, early in the process, because I was told that I needed it, but it would appear that I don’t – I’m growing more grass than I ever have! We have worms now, dung beetles have turned up, there’s heaps of bugs, birds and all sorts of wildlife.

From what I have observed, under this system, giving our pasture plants heaps of time to recover after grazing seems to be the secret. Big plants with lots of leaves give a plant greater ability to photosynthesise (more leaves = more solar panels!). By lifting my residual up to 3000kg dry matter or more, by the time I get back to regraze there is a huge amount of lush plants along with seed head and mature stalk.

The animals can move through the pasture and choose a mouthful of clover or a bit of roughage depending on their desire.

Another benefit of the animals having access to both lush and mature plants is that their poo is much more solid, which I’m sure is kinder on their gut and intestines.

We try hard not to have animals overgraze plants, so that the ground is always covered and the plant doesn’t struggle to regrow.

Because the pasture is dense and tall we don’t need to drench – nothing grazes down where the

worms are. Besides, some drench, must come out in their poo, which would kill some of the biology in the soil.

One of the facts we learned from a webinar by Gabe Brown was that plants grow better in a diverse group, so we have started adding other species (by broadcasting) like chicory, plantain, Italian parsley, sunflower, strawberry clover, with more to come.

We are normally putting on between one and two kilograms of weight gain per day in the spring, so were not seeing any negative impacts from this change in system.

The fact that we are encouraging our pasture plants to grow much larger gives us total ground cover, protecting the soil from the sun, and a plant with deep roots that is much more tolerant to both hot

and cold weather. Another benefit is that all the grass that’s trampled catches any rain, and holds it in what could be loosely described as a blotter.

You can shove your hand under the trampled grass on a hot day and it’s cool. I did think that I’m possibly creating a great environment for facial eczema, but haven’t seen any signs of the symptoms at all.

Overall, I’m a total convert. It seems to me that as long as I keep the plants large and healthy, with lots of variation in species, everything else in the system thrives.

MORE:

If you’re interested in taking a look at an alternative system, which has got to be good for the environment, flick me a text anytime on 0274 333 182.

Just more dam regs we don’t want or need

Gordon Levet Levet is a Wellsford sheep breeder.

WE ARE now a nation of regulations, along with the rest of the western world. As was outlined in an article published in the Farmers Weekly, new dam regulations are due in May. These new laws are from the Ministry of Business, Innovation and Employment.

The article outlined the details of this new legislation, which include the height of the dam wall, and the volume of water contained. These dams will be rated as low, medium and high impact and may be subject to a “dam safety resource programme” involving registered engineers.

Obviously, this will come at a cost. Another regulatory cost for the farmer.

However, these regulations fail to mention the most important factor regarding dam construction and maintenance. The area of catchment can range from nil (where a spring is enlarged to form a dam) to 1000mhectares, or more.

Taking into account the catchment area is vital in

considering the construction of any dam. It determines the volume of water and potential for downstream erosion.

A dam could prevent all this damage if an overflow pipe (the size determined by the catchment area) is placed up to half a metre below the top of the dam. This also serves as a catchment for most silt, including surface grass debris and animal manure that occurs in

flash flooding events.

I estimate that 90-95% of erosion and nutrient loss occurs as a result of flash flooding.

On our property, with some highly erodible areas, we have created a number of catchment ponds to prevent erosion, which also collect silt and nutrients. This system will help to reduce polluting of our rivers, lakes and harbours.

As for why these new regulations are needed, the Ministry states that “NZ was one of the few countries in the OECD that did not have a operative dam safety framework”.

Why are we to compare our practices to that of other OECD countries, when our geography, fauna and flora are very different to those of other countries? There are many farming practices in these OECD countries that would be considered unacceptable or uneconomic to practise in NZ, like the housing of dairy herds all year and government subsidies.

Now let us look at the facts regarding dams. Ever since our farmers confined farm animals in areas without permanent water, they have stored water in dams.

First these dams were made by horse-drawn scoops. Latterly, farmers with an experienced digger operator would assess the suitability of the dam location and analyse the catchment and soil type. A plan would be constructed.

These digger operators have created many farm dams and with their practical experience, need no input from an engineer.

As far as farm dams collapsing and the resulting safety factors, I cannot recall such an incident ever happening, not even during cyclones Bola and Gabrielle.

These regulations seek to solve an imagined problem that has never existed. However, it will ensure that farmers are further burdened with unnecessary costs, both in dollars and time.

All these new regulations, beginning with the Resource Management Act, need to be reviewed by the new government to see if they meet the cost benefit criteria and to see how they work in practice.

Those that deliver no benefits should be eliminated, and improvements introduced to those that are essential.

This would be a desirable goal

for the new administration.

I have no problems with the Ministry officials who enforce these new laws. They are honourable people charged with putting in motion the legislation passed by the government of the day, which may be a party seeking to control many aspects of human endeavour.

However, the downside of these seemingly endless regulations is not recognised. The cost of this increasing number of bureaucrats and their regulations stokes inflation, which is a major factor in our cost of living problems and has a negative impact on morale, especially of those in the productive sector.

Got a view on some aspect of farming you would like to get across? We offer readers the chance to have their say. Contact us and have yours.

WRIGGLE ROOM: In the early days on his farm, Craig Smith, pictured here with partner Lana Kerr, ‘got the impression that if the worms aren’t interested in being here, then perhaps this is a rather unhealthy environment’.

RED TAPE: The downside of seemingly endless regulations is not recognised, says sheep breeder Gordon Levet.

Three cheers for the long goodbye to SNAs

Alternative view

Alan Emerson

Semi-retired Wairarapa farmer and businessman: dath.emerson@gmail.com

LET me say up front that I am strongly opposed to the Significant Natural Areas legislation. If someone wants something on my land they can convince me of its importance or pay for it.

In addition, the current legislation is sloppy, as “significant” isn’t defined. That means councils and iwi can confiscate virtually at whim. There’s no scientific rigour and in some cases the land confiscation has occurred as a result of aerial photos.

For those and many other reasons I was pleased with Associate Environment Minister Andrew Hoggard’s statement on Significant Natural Areas (SNAs).

Hoggard told councils that “the government has agreed to suspend the requirement for councils to comply with the SNA provisions of the National Policy Statement for Indigenous Biodiversity for three years while it replaces the Resource Management Act”.

Councils were told to sit on their hands for three years, which is the best advice you could give some of them.

The statement shouldn’t have surprised anyone as during the last term of the previous government, ACT agricultural spokesperson Mark Cameron launched a petition to stop the land grab.

He issued a statement condemning SNAs and promising repeal. Hoggard has continued that crusade and good on him.

The Hoggard statement brought the predictable bleats from outfits such as the Environmental Defence Society (EDS) and a bevy of lawyers claiming the statement was encouraging councils to break the law.

I’d dispute that. Councils were told to sit on their hands for three years, which is the best advice you could ever give to some of them.

To then compare Hoggard’s statement to the activities of the late RD Muldoon was, in my view, bizarre.

In my old stomping ground, the South Island’s West Coast,

the whole SNA debate became ridiculous. The reality is that only 15% of land on the coast is in private hands so what are councils doing interfering with the property rights of that minority – the minority that provides the wealth those councils enjoy?

Once a SNA has been declared, for whatever reason, a farmer can appeal if he or she has the resources to do so. The level of scientific proof of an SNA is minimal and for SNAs “of significance to Maori”, the burden of proof is also light.

Environment Canterbury describes SNAs as “areas, sites and habitats of high natural, physical, heritage or cultural value” and that, in my humble view, could mean anything.

In addition, who decides, especially when it comes to heritage and cultural value as that is incredibly broad? For example, what’s the definition of “heritage or cultural value”?

Am I going to have a 20-something-year-old with an obscure degree assuring me they have a lifetime of experience in all things before telling me what I can and can’t do on my property?

Some time ago I had a mate phoned by that 20-somethingyear-old to be told that there was a stand of totara at the back of the property and they were going to inspect it with a view to classifying it.

They were told not to come onto the property.

The reality was, if the council employee had bothered to do any research, that the stand of totara was part of a fenced-off regeneration area of over 100 hectares that several neighbours had banded together to preserve.

Such is the level of ignorance promoted by some councils.

The Hoggard statement received support and criticism.

The EDS came out describing the Hoggard statement as “the latest in a rolling maul of attacks on the constitution and environment by the government”. It added “it represents Executive overreach in a way not seen since the 1970s”.

I agree.

The issue is that you had a jackbooted law that, as Hooper said, infringed on property rights and created a bureaucratic nightmare.

It had no scientific credibility and it wasn’t always run by people qualified to do so.

For those reasons alone it deserved the boot and congratulations to Hoggard for starting

the process and please don’t stop.

And if in the process he offended some, well, so be it. As Napoleon was reputed to have said, “you can’t make omelettes without breaking eggs”.

Beef + Lamb gets back to better farming

Meaty matters

run-off and stock exclusion.

You’d hold your breath over that hysteria and one could suggest that the author have a cup of tea and a lie-down.

On the other side you had Federated Farmers and Beef + Lamb NZ, who predictably came out in support of Hoggard.

Feds issued a statement under the heading “Another unworkable farming law bites the dust”.

It said “the suspension of SNA rules is a positive step forward for both farmers and New Zealand’s biodiversity”.

Feds biodiversity spokesperson Mark Hooper told me that “these unworkable rules were universally despised by farmers and we’re pleased to see the back of them”.

That “farmers opposed these rules because they infringed on our property rights and added endless layers of unnecessary complexity, compliance and cost for very little environmental gain”.

WHEN times are as tough as they are right now, the work done by Beef + Lamb New Zealand on behalf of sheep and beef farmers assumes even greater importance, even though it cannot make an immediate difference to market returns.

The representative organisation has of necessity spent a great deal of time and resources over recent years on tackling proposed government regulations, reaching its peak with the ill-fated He Waka Eke Noa partnership, which ultimately failed to arrive at an acceptable position on greenhouse gas emissions with the previous government.

Other key areas of regulation that require continuing input are national freshwater rules including Freshwater Farm Plans, sediment

Beef + Lamb NZ (BLNZ) CEO Sam McIvor says farmers could never understand why the government was determined to tax them for their on-farm emissions when the process appeared to be driven more by public relations than by scientific rigour.

McIvor’s interpretation of farmer’s wishes is for policy that is science-based, practical and enduring, resulting in a regulatory regime that enables a viable business model.

It is noteworthy that other countries, such as the Netherlands, have walked back from implementing some of their more extreme agriculture policies, which would have had a serious impact on their ability to produce food, a key requirement of the Paris Accord.

McIvor urges the government to set scientifically valid targets and trust farmers to make the changes necessary to their achievement. BLNZ will support its levy payers with agreeing targets and facilitating groups and forums like community catchment groups to adopt the necessary programmes.

The farmer organisation is determined to prioritise the issues that affect farm profitability, recognising these will vary according to region, and feedback from farmers will enable a decision about where to concentrate its efforts.

In brief, better policy development will enable more effective outcomes.

BLNZ’s trade policy work in

basics

support of trade agreement negotiations will continue to be a very important aspect of its work on behalf of farmers, although the decreasing number of free trade agreements available mean it becomes more difficult to achieve dramatic results. The three large opportunities are to agree FTAs with the United States, India and the Gulf Cooperation Council, none of which will be quick or easy, but there remains plenty of scope for overcoming non-tariff barriers with existing trading partners. These often prove to be equally valuable areas of gain.

This will be the year for an increased focus behind the farm gate, a focus on improving productivity and profitability.

For the 2024 year, BLNZ proposes to focus more of its efforts behind the farm gate, where there is greater potential for increasing productivity and profitability.

McIvor says there is a four-step process for the farmer in achieving these improvements – gaining awareness of the issue, building knowledge (often in workshops or small groups), having the confidence to change, and lastly making the change successfully, with either expert help or peer support.

Continued next page

Allan Barber Meat industry commentator: allan@barberstrategic.co.nz, http:// allanbarber.wordpress.com

UNINTENDED CONSEQUENCES: In certain regions the debate around Significant Natural Areas became ridiculous, says Alan Emerson.

Saving Dave from agenda stereotypes

Eating the elephant

In this series, the lads go woke

MY FELLOW Eating the Elephant contributor

Dave is a delicate sort of chap. Sure he’s big and used to row for New Zealand, but don’t let that fool you. I have it on good authority that he knits jumpers for the homeless and sings his pet calf to sleep every night.

So knowing how soft of heart my old mate Dave is, I felt compelled to come to his defence in his hour of need. You see, Dave is in danger of being cancelled.

What for you might ask? Good question, I would reply. After all, who could possibly want to cancel Dave? Well, it seems there are one too many white male contributors to the Farmers Weekly for one good reader’s taste.

Continued from previous page

This will occur in various ways, through field days, small workshops, regional groups, and, in a back-to-the-future strategy, an increase in the number of Monitor Farms.

Dave’s big friendly mug was recently splashed across a LinkedIn post asking for more diversity in this clearly chauvinistic publication. How many Daves must we suffer?

Dave’s face tried to slide from the page in embarrassment, but the ink held him firmly in place.

So Dave, let me respond on your behalf, because I know you would rather settle the issue with flowers and a nice cup of tea.

From behind my barricade of middle-aged white privilege, I venture out to offer a few words in your defence.

But first a word of concession. The reader is, of course, right that there is preponderance of white male contributors to Farmers Weekly. And yes, the reader is also right that more diversity of opinion can only be a good thing. After all, and as the saying goes, if you and I agree on everything, one of us is irrelevant.

But here’s where I stop agreeing. I say that the days of being outraged over a lack of gender diversity are over. I’m nearly 48 years old and I’m confident that women have had my measure for every one of those years. I know for a fact that it was my big sister who invented waterboarding. I can’t remember what the reason was, but I am certain that I told her everything.

I also know for a fact that it was a girl in my intermediate years who invented cage fighting when playing netball every second Wednesday. I still recall the imprint of the wire netting on my forehead after suggesting she might like to hand the ball over.

Over the next month BLNZ intends to pull together regional panels that will identify the halfdozen key opportunities and build a strategy to tackle them.

The latest BLNZ annual report cites its three key priorities as supporting farming excellence,

To make things worse, the female domination of Anderson men has gone intergenerational. My son’s Wakely Shield rugby team got soundly thumped by an all-girls team, who played with a level of skill, cunning and at times outright ferocity that left our boys bruised, shellshocked and with the beginnings of a nervous twitch.

And finally, just when you think women might finally show a little sympathy, my 84-year-old father just got beaten in an armwrestle by his female neighbour. Admittedly there were at least 20 years in her favour, but the point remains.

Aside from their domination of the Anderson line, I would note that women have ably demonstrated their ability at the highest levels in every discipline in our country that I can think of. They have been our prime ministers, our diplomats, our Olympians, our music stars, our

championing the sector, and increasing international returns.

These address the essential areas of research and innovation, reputation and policy development, and the creation of market opportunities, building consumer preference and dismantling trade barriers.

There is little doubt these priorities cover the main needs of farmers, although not all of them will be seen as equally important or relevant to every farmer.

After several years of fighting the government on policy and regulations and launching the Taste Pure Nature marketing programme, this will be the year for an increased focus behind the farm gate, a focus on improving productivity and profitability when farmer bottom lines are drastically constrained by a sluggish global economy, higher costs, and competition on sheepmeat from Australia.

McIvor cited programmes (mostly carried out in conjunction with industry partners) like condition scoring to improve

business leaders and our soldiers.

There are few if any barriers left to success or participation that I am aware of, including in the agriculture sector. We only need to look around us to see those women currently leading or contributing to the various organisations in our sector at the very highest levels.

The challenge we face today is not diversity of gender, or race, or even sexuality. I think our real challenge is diversity of thought.

The challenge we face today is not diversity of gender, or race, or even sexuality.

I think our real challenge is diversity of thought.

Right now our sector is facing real challenges, which we largely attempt to solve with the same

the scanning rate, facial eczema solutions, sustainable internal parasite management, farm system optimisation to reduce greenhouse gas emissions, Advancing Agyields data to support forage and crop decision making, low methane emitting Cool Sheep, the Hill Country Futures programme and the Catch the Rain retention project.

A graphic example of sector improvement has been the increase in the lambing rate to 130% over the past five years, but a 30% cost increase over the same period means the rate needs to rise further towards a new target of 150%.

Past BLNZ chair James Parsons agrees there needs to be a rebalancing towards on farm extension and welcomes suggestions that Monitor Farms and similar models will again become more prominent in delivering productivity gains.

On his Northland farm, he has found virtual fencing for beef cattle to be a game-changer, enabling effective pasture utilisation on hill country to

thinking we employed 50 years ago. Our wool industry is near total collapse. Our climate is changing in front of our eyes, driving land use change at a rate almost faster than we can adapt to. Our geopolitical environment is in turmoil and our biggest trading partner is in all kinds of financial trouble.

These are all massive issues that require fresh, innovative and decisive thinking. We need the very best people coming forward with ideas and solutions that will help steady the ship and guide us through what are unquestionably going to be some very niggly years ahead.

Dave isn’t your problem. Dave is doing his best to contribute to a conversation that is bigger than all of us. Rather than rail against him, we all do better to join him. His gender is irrelevant and yours is too. The floor is open, and your voice is welcomed.

increase to 80%. Although this may not be viable for sheep farming in the short term, he sees this as an area for BLNZ to facilitate as part of its extension work.

In Parsons’ opinion, many farmers find new systems too complex to get their heads round, especially when regulatory and financial pressures produce a mental overload.

Technology is very important to improving productivity and he believes BLNZ is best placed and qualified to create the right environment for its adoption by providing leadership and advice.

Without the representative body he is convinced the sector would be leaderless and unable or unwilling to invest in its future prosperity.

Sector profitability may not be good at present, but this is invariably cyclical and we can expect better times ahead. It is important farmers are well placed to benefit from an upturn when it comes and BLNZ will be a critical factor in helping them to take full advantage of it.

PUT IT THERE, SISTER: Global shot-putting phenomenon

Dame Valerie Kasanita Adams DNZM is one of the women who have triumphed ‘at the highest levels in every discipline in our country’ that Ben Anderson can think of.

Photo: Wikimedia Commons

Ben Anderson

Ben Anderson lives in central Hawke’s Bay and farms deer, cows and trees. eating.the.elephant.nz@gmail.com

POLICY: BLNZ CEO Sam McIvor says farmers want policy that is sciencebased, practical and enduring.

Getting through the tough times

Murray Elwood has navigated the ups and downs of the beekeeping industry for over 30 years. He chatted to Farmstrong about how he manages the pressures of an uncertain business.

Tell us about your background.

We’re based in Nelson and our business is in the top of the south. I’ve been in the industry about 35 years.

What do you enjoy about the job?

I think it’s the fact that bees are such an intriguing insect. Sometimes I’ll just hold a frame and look at what they’re doing. They’re all busy and they’ve all got their roles. They really are an incredible insect. There’s also the satisfaction in harvest season when you come to a hive with four or five honey boxes on it, of knowing that you and the team have done what it takes to make it a successful unit.

What are the main pressures?

Over the years, we’ve had some major challenges. Beekeeping is a rollercoaster industry dictated by three things – the weather, hive strength and flowering.

If you haven’t got your hive right or haven’t got a flowering or you’ve got poor weather, then you get a very limited crop.

A number of years ago, even when prices were good, we had a very poor season. It was 5050 whether our business could continue.

What impact did that have on you personally?

I had a year where I barely left the house and was very withdrawn. I felt mentally drained.

We were facing the collapse of our business and the fear of failure and what people might think of me was very real.

So, I withdrew.

HIVE MIND: Many

Can you share how you got through?

What kept me going? My wife and my kids were an amazing source of support for me. The kids were teenagers and just having them round put a smile on my face.

I guess the other thing I learnt during that time was that who I was as a person was far more important than what I achieved. That was a massive lesson.

I learnt to accept that even if the business failed, it wasn’t going to be the end of the world for me. I’d just do something else with my life.

I’d go and work for wages for someone else if need be.

What else helped?

I had to learn to be more open. I was selective about who I confided in, but I realised I had to be more open, especially with close friends, to deal with how I was feeling.

So, my family and friends really helped me through that time, and I did come through.

What do you do now to keep well?

There’s an old saying – the best things in life are free. When you’re under financial pressure, the last thing you want to do is spend money.

Luckily, I’m a hunting, fishing, outdoors man and you can do all of those things on an absolute shoestring. I just love getting out there in nature with mates and taking a couple of days off. It does me the world of good and it doesn’t cost anything. That’s big for me.

What’s the benefit of taking time out like that?

Sometimes when you’ve got a massive list of things to do and you’re losing money while you’re doing it, it’s tempting to think you’ve got to work seven days a week. But that’s the worst thing you can do.

‘when you

You’ve got to take that time out to recharge so you can be more effective in the time you are at work.

How do you do make sure you enjoy the job nowadays, despite all the uncertainty?

We’re beekeeping in some absolutely stunning areas. For me, it’s about standing up from the beehive and just appreciating the moment that you’re in.

The view from the top of the hill. The cicadas singing away.

It’s just spending a moment to enjoy it.

Where are things at now in the industry?

The prices we’re getting for the honey is less than what it costs to produce it.

Financially and mentally that’s very stressful.

The prices are low and if you put that on top of a poor season like it was last season, sadly that has already tipped over quite a few beekeepers.

What’s your advice to someone new to the industry and worried?

If you’re new to the industry, then don’t expect to get wealthy. Just do your best to break even or a bit better.

Do the simple things right. Make sure your hive health is good but visit your hives as little as you can to limit your spending.

The other thing is stay connected. You can’t work out every single problem yourself. Beekeepers are often loners. They like to do their own thing their own way.

That’s why they got into the business. But when you get tough times, it’s important to have Apiculture NZ behind you. Sometimes advice from another beekeeper is like gold.

Having that collective input gives you a new way of looking at things.

Any advice for people who feel stuck?

If things are too tough, seek advice on an exit strategy. You might not get a lot for your business as it is now, but you’ll save the other assets you’ve built up.

If you can’t see a way forward, you’ve got to be willing to let it go. It’s about realising that’s there’s always something else for you around the corner. If you’ve had a successful business, you can have one again.

It’s just that the current pricing is very hard. Even if you love beekeeping, you’ve got to work out a way where you’re not losing money.

For me, it’s about standing up from the beehive and just appreciating the moment that you’re in. The view from the top of the hill. The cicadas singing away.

Murray Elwood Nelson

Any final advice?

One thing I would say is that I think it’s great that Farmstrong is advocating about mental health. In the past, it was a taboo subject. We were all good Kiwi men who never had a weak moment. But that was never true. Everyone needs a hand, and everyone needs support at some stage.

Last year 14,000 farmers and growers increased their wellbeing thanks to something they learnt from Farmstrong.

MORE:

To nd out what works for you and lock it in, visit www.farmstrong.co.nz for free tools and resources.

farmstrong.co.nz

TOUGH: The prices for honey are low and Murray Elwood says if you put that on top of a poor season like it was last season, quite a few beekeepers have already given up.

beekeepers are loners by nature, but

get tough times, it’s important to have Apiculture NZ behind you’ says Murray Elwood. ‘Sometimes advice from another beekeeper is like gold.’

Gene tech office revisits Aussie rules

As New Zealand prepares to grapple with a rewrite of its genetic technology regulations, Australia is implementing changes from its third review of its GE rules. Richard Rennie, in Australia to find out how our neighbours are approaching farming issues, spoke to Dr Raj Bhula and Neil Ellis of the Office of the Gene Technology Regulator.

BACK in the 1990s Australian cotton growers working with science body CSIRO developed Bt cotton, a genetically modified cotton plant containing a gene that enables the plant to produce the “Bt” protein, capable of killing the cotton bollworm, a voracious pest.

This locally developed solution for a local problem helped put the country’s genetic modification regulations that followed on a practical, outcome-focused path. Growers and researchers welcomed it, says Gene Technology Regulator Dr Raj Bhula.

Grower engagement early on meant its benefits were understood, wanted, and appreciated from the start.

Bhula and Gene Technology Regulator Office assistant secretary Neil Ellis say the latest review of the nearly 25-year-old Gene Technology Act will be a “game changer” that modernises the rules to allow for technology including the ever-evolving CRISPR gene editing tech, while keeping those practical outcomes at its core. The legislation was last reviewed in 2018.

The review will mean revamped regulations will better cater for vaccination platforms, genomic editing and clinical trials for gene therapy.

“The technology started off focusing upon agricultural solutions, but the human side of the tech is growing quickly. That includes gene therapies for rare diseases like spinal muscular atrophy,” Bhula says.

“Detection of the disease via a heel-prick detection at

birth means the therapy can be administered very early in life to treat it.”

Whether for human, animal or plant production, the Australian legislation has always had a practical, outcomes-focused approach.

In the past year, the office issued five licences permitting release into the environment. These included two for GM plants, a herbicide-tolerant canola, a commercial release of a GE mustard seed, and importing a genetically modified chrysanthemum.

The animal vaccines included a GM vaccine to treat the endangered Tasmanian Devil’s facial tumour disease, and the human treatment was for a potential cancer treatment.

Bhula notes that to date the only true food that has gained approval has been the recent licensing of the GE banana in Queensland that is tolerant to an infectious fungal disease.

Meantime a raft of trials are underway across the food and crop spectrum to include high tannin clovers, improved seed quality sorghum, and drought-tolerant wheat.

Both acknowledge the small number of food types that have gained approval but suspect as the technology evolves around GE this will pick up.

“And where there is an agricultural or environmental problem with a food that needs to be solved, as there was with bananas, the door will open up.”

Bhula says GE modification on pests like varroa, or mouse plagues, could be a next step.

Bhula and Ellis see a softening in the general public’s view of the technology, based on their regular surveys of sentiment.

“Originally transgenic technology drove early concerns. GE is a much more constrained way to manipulate genetics.

Where there is an agricultural or environmental problem with a food that needs to be solved, as there was with bananas, the door will open up.

Dr Raj Bhula Gene Technology Regulator

“Now GE is no longer front of mind among as many people. You have 10-15% that are committed against it, but we have seen more people move into that middle area of acceptance,” Ellis says.

He says anti-GE groups appeared

to have quietened in recent years in regard to applications for release of GE agricultural crops.

He notes the European Union continues to debate the technology, and globally New Zealand still sits closer to the EU in terms of its level of restriction for trialling.

The Global GE Regulation Tracker site classes NZ as “highly regulated”, against Australia’s “lightly regulated” classification.

Critics of NZ’s system include the heads of Crown Research Institutes, who have noted the NZ system’s preoccupation with older transgenic science, and the highly restrictive controls on trials conducted here.

John Caradus, CEO of Grasslanz, has his company currently undertaking trials on GE clover and rye grasses in Victoria. He says his company has found Australia’s process a smooth one.

“The authorities have been great to work with. The Office [of the Gene Technology Regulator] has been and inspected the sites,

EDITED: Australia’s Office of the Gene Technology Regulator is having its third revamp to better manage rapidly advancing GE technology.

Pictured are Neil Ellis and Dr Raj Bhula.

and been engaged throughout the process and given good, timely guidance.”

He says Grasslanz has also enjoyed good relations with NZ’s Hazardous Substances and New Organisms authorities.

“But the problem is the rules that they have to work with.”

With NZ and Australia sharing food standards through Food Standards Australia New Zealand, it may seem natural to also align with Australia’s GE regulations.

Bhula says differences in regions’ regulations are common because of environmental differences, but there could be grounds to harmonise around general principals as a starting point.

Meantime, the Office’s latest review will mean GE applicants will face a more streamlined approvals process for known techniques, tiered risk approval and boosted compliance strength from an office that has so far never had to use its powers of prosecution.

MethaneSAT to monitor cow gas from space

NEW Zealand’s agricultural methane emissions are to be monitored from space following the recent launch of a dedicated satellite.

MethaneSAT is primarily designed to monitor methane leaks from the fossil fuel industry but the agricultural programme, which will measure global emissions from livestock and rice production, will be run from NZ.

Once or twice a month the satellite will pass over NZ and monitor methane emission trends from at least two of our main dairy areas.

Initially Waikato and Canterbury will be the focus, but if topography is not an issue, Taranaki and Southland will be included.

The science leader of the

agricultural programme, Dr Sara Mikaloff-Fletcher from NIWA, said each day MethaneSAT will measure methane emissions from 30 targets around the world, of which four or five will be agricultural.

Each target will be measured

as 200km square blocks using precision, high spatial resolution technology.

The satellite will make one or two passes a month over NZ’s largest dairy areas.

Mikaloff-Fletcher said the satellite will measure methane

levels between the ground and the top of the atmosphere, detecting as few as two parts of methane per billion when averaged over a 1km spatial resolution.

“We have the opportunity to be the first team to develop and prove this capability worldwide,” Mikaloff-Fletcher said. She stressed it was not a case of big brother spying on the agricultural sector but using a precision tool to monitor changes in methane emissions.

“The last thing we want is for anyone to think we are spying on cows.”

NZ will be a test case for the satellite performance and the accuracy of the technology, providing the perfect test ground because of a greenhouse gas profile that is weighted towards methane, and its world-class greenhouse gas measurement and modelling capability.

“We will have a field campaign in New Zealand to measure methane emissions at the surface and from aircraft to test this capability.”

She said once validated in the next three to four weeks, the satellite will provide timely assessments on the effectiveness of new methane reduction policies or technology.

The agricultural programme is a collaboration between NIWA, Landcare Research, University of Waikato and Victoria University of Wellington, and the United States-based Harvard University, Environmental Defence Fund, and the Smithsonian Astrophysical Observatory.

It is funded by the Ministry for Business, Innovation and Employment and RocketLab. The University of Auckland’s Space Institute is establishing and operating mission control for the satellite.

Neal Wallace TECHNOLOGY Emissions

MONITORING: The MethaneSAT satellite, whose systems will monitor changes in methane emissions.

Photo: MethaneSAT

Big win for Fed Farmers’ advocacy

Federated Farmers are applauding the new Government for con rming it is kicking another unworkable and confusing farming rule into touch.

Suspending the Signi cant Natural Areas (SNA) rules will be a positive step forward for both farmers and New Zealand’s biodiversity, Federated Farmers biodiversity spokesperson Mark Hooper says.

“We’ve been extremely concerned about the unworkability of these rules since they were introduced last year.

“That’s why we made simplifying the SNA provisions one of our 12 policy priorities for the new Government to restore farmer con dence, and it’s good to see our strong advocacy paying o for farmers.

“This is what’s needed to help get our rural sector con dent and thriving again.”

The Government announced on March 14 that Cabinet has agreed to suspend the requirement for councils to comply with the SNA provisions of the National Policy Statement for Indigenous Biodiversity for three years, while it replaces the Resource Management Act. A bill will soon be introduced to the House to do this.

Hooper says farmers nationwide will be glad to see the back of SNAs put in place by the previous Government.

“These unworkable rules were widely despised by farmers

because they infringed on our property rights and added endless layers of unnecessary complexity, compliance and cost – for very little environmental gain.

“The rules risked driving perverse outcomes where farmers actively choose to plant exotic species instead of natives because the Government have just made everything too hard.”

Federated Farmers will continue to advocate for practical biodiversity rules that are clear, pragmatic, and properly de ne areas of signi cant native vegetation, Hooper says.

“Only truly signi cant areas should be captured – not every small plot of cabbage trees somewhere down the back paddock.

“Biodiversity rules shouldn’t create barriers for people who actually want to protect and enhance native vegetation on their farms.

“Farmers would be less likely to do this if they fear it will create a rod for their own backs.”

Hooper says farmers are arguably New Zealand’s leading conservationists.

“I can’t think of any group of people who are doing more to protect and enhance our country’s biodiversity.

“We need to be empowering farmers and supporting them to make further improvements on their properties instead of tying them up in needless red tape.

”The Government’s SNA announcement came from former Federated Farmers president, now Associate Environment Minister,

GOOD CALL: Suspending the Significant Natural Area rules is just what’s needed to help get the rural sector confident and thriving again, Federated Farmers biodiversity spokesperson Mark Hooper says.

I can’t think of any group of people who are doing more to protect and enhance our country’s biodiversity.

Mark Hooper Federated Farmers biodiversity spokesperson

Andrew Hoggard. He said, as it stands, SNAs identi ed on private property limit new activities and development that can take place on that property.

“In their current form they represent a con scation of property

rights and undermine conservation e orts by the people who care most about the environment: the people who make a living from it,” Hoggard said in his statement.

“For now, the Government has agreed to suspend the obligation for councils to impose SNAs under the NPS Indigenous Biodiversity, and we’re sending a clear message that it would be unwise to bother.”

While the Government has announced it plans to introduce a bill to change the current law on SNAs, until this is done, councils still technically face a legal obligation to move as soon as practicable.

In reality, it would be pretty unwise

for councils to rush changes through when they know a law change is coming, Hooper says.

He strongly agrees that councils should down their tools when it comes to new SNAs while the rules are reviewed.

“We all know councils are struggling to balance their books right now and that they’re coming to Kiwis all over the country for some big rates rises this year.

It makes absolutely no sense to sink a whole lot of money into a new plan change that will become redundant once the Government develops a new RMA anyway.

“The best thing to do right now is to pause and wait for some clarity around RMA reform and SNAs, and then develop those plans.”

Hooper says councils should be wary of the sunk-cost fallacy.

“We know some councils have spent a lot of money on this process already, but that’s not a reason to keep charging ahead.

“In fact, it’s better to stop wasting ratepayers’ money while you still can.”

Hoggard said the Government is proposing to make changes as quickly as possible to ensure councils and communities don’t waste resources and e ort implementing national direction requirements that may change following a review.

“I have also asked for a review of the operation of existing SNAs more broadly, including those implemented under the powers that councils have in the RMA. This review is being scoped now.”

Feds push for fairer arable dealings

Federated Farmers are proposing new standards for the arable industry to help prevent costly contract disputes and create a level playing field for growers and other players.

With disputes becoming more common, the industry needs new standards that make various contractual and fair price obligations plain and clear, Federated Farmers national arable chair David Birkett says.

“There are some areas when what’s expected in terms of good practice in the industry doesn’t always happen.

“Disputes over contracts are popping up more regularly now because economic conditions are getting tighter and tighter.

“The new set of standards we’re proposing will help prevent these, and they’ll have benefits for everyone in the sector.”

Even if there’s a signed contract between parties and there’s a breach of the terms, or bad faith, the offending party can sit there and do nothing, knowing the other guy will have to take them to court, Birkett says.

“That can easily cost tens of thousands of dollars. We’re trying to get away from that situation where people rely on the costs involved in legal action to cover them off.”

With tighter contracts with less wiggle room, and industry agreed standards on what’s fair and reasonable practice, disputes that do end up in court should be cut and dried, Birkett says.

Disputes over contracts are popping up more regularly now because economic conditions are getting tighter and tighter.

avoiding cross-contamination.

SCID has no legislative backing but has operated well for years, Birkett says.

“When something does end up in legal proceedings, the court will ask, ‘what’s the industry standard?’ and the SCID system has considerable weight.

“So, it does develop teeth over time, and that’s what we’re looking to do with these proposed new standards.”

One set of standards Federated Farmers is keen to see is around credit, Birkett says.

“There are times when a company owes a farmer some money – maybe you’ve returned surplus bags or seed or pallets – and they’ll just sit on it as a credit rather than paying that to the farmer.

He gives the example of the Seed Crop Isolation Distance (SCID) system, which enables merchants to enter on a map what crops farmers are growing and where, and see what neighbouring farmers are growing or have grown in recent seasons – all with the aim of

“But if it’s the other way around, and I buy something from a company, I’m expected to pay the bill by the 20th of the month.”

Back in 2021, Federated Farmers arable leaders and others expressed concern that restrictive new buying practices for milling wheat were undercutting market competition.

More recently, growers have had

gripes that purchasers of harvested grain are leaving it in on-farm storage for longer periods, with the fee not covering the cost.

“All that is part of what the proposed standards will deal with,” Birkett says.

“For example, we see a need for an end date on contracts. Without it, buyers can just hold off on when they take your crop and pay you.

“In most places around the world, you might sign a contract at the beginning of the year but by the December 31, that’s it – it has to be delivered and paid for.”

Birkett emphasises the standards being proposed aren’t just to benefit growers.

“It’s about having a fresh look at how things are working, and looking for improvements everyone can live with.

“It cuts both ways – there are expectations that growers need to fulfil too.”

Since the standards would apply

across the industry, Federated Farmers has taken its proposal to the Arable Industry Food Council, which has the broadest grouping of companies and industry players, including merchants, millers and feed manufacturers.

At the Council’s March 12 meeting, it was agreed the various representatives would consult their respective members over the next months on what they want to see in the standards.

Workshops or on-line meetings will be held to thrash out the final wording.

The aim is for the standards to apply from the beginning of 2025.

Birkett anticipates disagreement on some issues but says there are areas of commonality too.

“At the March meeting I was expecting some pushback on certain things, but actually, we got support.

“Everyone is pretty keen to come up with something to get the industry on the same page.”

ALL GOOD: The proposed new standards will have benefits for everyone in the sector, not just growers, Federated Farmers national arable chair David Birkett says.

David Burkett Federated Farmers national arable chair

CLEAR CUT: With disputes becoming more common, the arable industry needs new standards that make contractual and fair price obligations plain and clear, says David Birkett.

Recycled railway carriages help get farmer back on track

Railway carriages destined for the scrap yard have found a new lease of life as “bloody good bridges” on a Hawke’s Bay farm thanks to Kiwi ingenuity and Federated Farmers.

When Alex Clarkin, from Cheyenne Logistics in Paeroa, was hired to haul two retired 40-foot carriages to be scrapped earlier this year, he had a thought.

“I’ve hauled plenty of these carriages before and I know how strong they are. I just wondered if there might be farmers out there who could use them as bridges.

“I asked my customer if he’d give me a week or two to try and find another use for them rather than sending them to scrap, and fortunately he agreed.”

The Federated Farmers network kicked into gear – including Waikato president Keith Holmes, Waikato Regional councillor (and Feds member) Robert Cookson, Farmy

Army coordinator Ben Moore, and Feds national board member Toby Williams – and the word soon went out to cyclone-affected farmers in the Gisborne and Hawke’s Bay regions.

It didn’t take long to find the carriages a home.

“Federated Farmers have those grassroots connections in our rural communities – real eyes and ears on the ground,” says Moore.

“We were able to quickly identify people who had lost bridges in Cyclone Gabrielle last year and I’d soon heard back from a couple of farmers who were keen to get hold of the carriages.”

Putting their hands up were Lloyd and Sonia Holloway, from Waitara Station at Te Haroto, on the NapierTaupo Highway, and Clarkin dropped them off a week later.

“Where these carriages are going is in places that got washed out in the cyclone. The stock used to ford the

creeks, but the storm chewed out maybe five or six metres, and with quite sharp drop-off,” Lloyd explains.

“We’ll just drop them in across the gully, get them level, and they’re good to go.

“They’re heavy as buggery, so if a storm happens to come up, it doesn’t wash them away.”

The two carriages take Lloyd and Sonia’s total railway carriage bridge tally to four.

“We’ve had one for about 10 years and haven’t had a bit of problem with it.

“Then we bought another one about 12 months ago, which its previous owners had used as a bridge to get over to their house.

“The one we’ve got out the back of the farm would be about 50 feet above the water, but saying that, in Gabrielle the water got within two feet of it.”

Lloyd says the previous bridge there, a wooden one, got washed away in an earlier storm.

“Somebody’s probably rowing around on it in Tonga now.”

The carriages weigh six tonnes and can hold up to 41 tonnes.

Transporting them over the farm isn’t an easy process, he says.

“That one we took out the back, we got a digger on each end and one poor bastard had to drive backwards, the other forwards.

“The length of them means carrying around corners is tricky, trying not to smash through fences and things.”

At $6000 each, the carriages are a good, cheap way of building a bridge, Lloyd says.

“These ones were a bit dearer than the other two – we got the other original one for $2000 and the other for about $3500 – but they’re only

REPURPOSE: Waikato Regional councillor Alex Clarkin says railway carriages were strong and got him wondering if they could be used as temporary bridges.

about 10% what it would cost to put up another sort of bridge.

“And the one out the back we’ve actually been able to get insured.”

He says he’s chuffed to have got the message from Federated Farmers.

“Unless you know somebody in the railway industry, they’re quite hard to find.

“They’re good and strong. They’re too narrow to drive a digger or vehicle over, but they’re great for stock, or motorbikes or riding a horse across.

“We’ve found them bloody good.”

Clarkin sees a lot of railway carriages going to scrap and says it wouldn’t be difficult for some to be set aside for use in adverse events.

“The likes of KiwiRail will send a big amount to scrap all at once and although they won’t want to hold all of them, and nor will the scrap guys want to give away too many, it would be easy to park half a dozen of them somewhere.

“All of us in the chain are trying to

We were able to quickly identify people who had lost bridges in Cyclone Gabrielle last year and I’d soon heard back from a couple of farmers who were keen to get hold of the carriages.

Ben Moore Farmy Army co-ordinator

make a dollar, but if there’s a way to do it that helps people, that’s great too.”

Lloyd agrees the carriages would be a good back-up plan.

“Even on rural roads, if you put two of them side by side, they’re strong enough that you could drive a digger over them just to tide things over until people can get a proper fix.

“If you had 10 or a dozen of them sitting somewhere, it wouldn’t be the stupidest idea anyone’s thought of.”

FMG MEMBER DIRECTOR NOMINATIONS ARE OPEN.

FMG MEMBERS

Like many Kiwi farmers and growers, FMG’s legacy goes back a long way. We’ve been around for over a century through rural New Zealand’s highs and lows, and we’re in it for the long haul.

If you’re an FMG Member then you have an opportunity to play a closer part in this legacy—and are entitled to stand for election to FMG’s Board of Directors*.

Our Directors play a critical role in supporting FMG’s continued growth, as well as its core purpose of helping to build strong and prosperous rural communities. If you’re interested, read on and head to www.fmg.co.nz/news to see if you meet the criteria needed.

CRITERIA

FMG’s Constitution and Director Member Election & Special Director Appointment Policy (the Policy) require that a third of all Member Directors retire by rotation at each year’s AGM. This year Geoff Copstick and Debbie Hewitt are due to retire by rotation. Geoff will be seeking re-election. Debbie has opted not to stand for re-election. Consequently, there are two Director vacancies, with one being contested by a current Director.

The FMG Board would like to sincerely thank Debbie for her contribution to the Mutual and we wish her well.

*More detail can be found on www.fmg.co.nz/news or by contacting FMG’s

MORE INFORMATION

If you would like to stand for FMG’s Board of Directors, please head to FMG’s website. Here you’ll find all the information you need, including The Policy, which sets out the criteria for the evaluation of Member Director candidates, including current Directors.

Applications to stand for election close on Wednesday, 9 April 2024.

FMG’S ANNUAL GENERAL MEETING

FMG’s 2024 Annual General Meeting will be held on Friday, 23 August 2024 in the Wairarapa. FMG Members will receive further details on this closer to the time, along with Member Election voting packs.

DAMAGE: Cyclone Gabrielle played havoc with bridges and roads in the Gisborne and Hawke’s Bay regions, creating access problems for many farmers.

Councils reach for farmers’ back pockets

Councils across the country are struggling to balance their budgets and Federated Farmers are concerned they may reach for farmers’ back pockets to cover the shortfall.

Analysis by Local Government NZ (LGNZ) shows up to two-thirds of councils are proposing rates increases higher than 14% later this year.

Alarmingly, almost one in ve councils are proposing an increase of more than 20%.

Federated Farmers local government spokesperson Sandra Faulkner says it’s shaping up to be an unprecedented raid on ratepayers’ wallets.

“We’ve never seen anything like this before, where most councils are looking at double-digit rate rises,” she says.

“Canterbury is looking at a 24.2% increase, Otago 21.3%, Greater Wellington 19.8%, Taranaki 16.3%, and Horizons 12.9%.

“Those kinds of increases are really going to hurt farming families already struggling with lower commodity prices and signi cantly increased costs.”

Farmers are going to baulk when they see their rates bill this year, particularly when many are already paying tens of thousands of dollars, Faulkner says.

“It’s not like ratepayers are going to be getting anything more for their money either. For most, this will simply be a case of paying more and hoping their infrastructure doesn’t get worse.

“What’s most concerning is there seems to be no end in sight. This isn’t a one-o increase; a lot of these councils are looking at several years of big rate increases back-to-back”.

Faulkner, a former Gisborne district councillor, has some sympathy for councils who need to cover extra

roading and infrastructure repair costs after last year’s cyclones.

She’s among those who say our model of local government funding is broken, and the sector continues to deal with too many “unfunded mandates” from successive central governments.

We’ve never seen anything like this before, where most councils are looking at double-digit rate rises.

Faulkner

“There’s more work and responsibilities being pushed down onto local councils, but little or no extra tax contributions to help cover the cost – so it falls on the ratepayer to pick up the bill.”

Federated Farmers accept that some cost increases are unavoidable but argue councils should be focusing on core services instead of spending up large on ‘nice-to-haves’.

Whakatāne is another district facing a large rates increase, with the council proposing an average jump of 17.1% this year, with 11% and 9.3% the following years.

Federated Farmers Bay of Plenty president Brent Mountfort says farmers will be quite rightly questioning the value they get from their council.

“Rural residents are paying 59% of the district’s rates, but farmers don’t get a hell of a lot for it. They’d be lucky if they had their road graded two or three times a year,” he says

“Given the distance we live from town, we just don’t get the same use of things like libraries, swimming pools, or street lighting.

“A lot of rural residents won’t even have access to things like rubbish collection, town supply water, or

wastewater treatment – but we still get the bill in the mail each year.

“You have to wonder, is this really the fairest way for the council to share the rates burden across our community?”

One solution proposed by Federated Farmers is greater use of the uniform annual general charge (UAGC).

This levy is an acknowledgement that it is people, not property, who bene t from council services like libraries, pools, halls and footpaths.

It provides a valuable counterweight to ensure the rating burden is shared equitably across a community instead of falling on a smaller number of higher-value properties – like farms.

Councils are allowed to have up to 30% come from UAGCs and other targeted charges, but most district and regional councils come nowhere close to that limit.

This is because uniform charges tend to put a greater proportion of costs on urban ratepayers, who provide a bigger voter base for elected councillors.

“It’s simple politics,” Mountford says.

Whakātane District Council currently collects 24% of their rates

revenue from a UAGC, but two of the three funding options they’re proposing would reduce that to 20% or 16%.

This would put much more of the cost share on property-based general rates, which would mean even higher rates rises for farmers – 21% to 29% for dairy farmers, for example.

The council says this approach better re ects people’s ability to pay, but Mountfort says that kind of thinking is a continuation of a mistaken and unfair assumption that plagues farmers.

“Farms have a large land component, of course, but the value of a farm property has nothing to do with that farming family’s use of council services or their ability to pay a bigger bill.

“I wonder whether elected councillors even know just how tough times are for many farmers this season? We’ve got low commodity prices, rampant in ation, and interest rates are really biting.

“If the council are planning to reach into my back pocket to cover their own nancial shortfall, they may be disappointed to nd how little spare change I actually have in there.”

VALUE: Bay of Plenty Federated Farmers president Brent Mountfort says farmers pay 59% of the Whakatāne District Council’s rates “but don’t get a hell of a lot for it”.

ONGOING: Bay of Plenty Federated Farmers president Brent Mountfort says a lot of councils are looking at several years of big rate increases back-to-back.

Sandra

Federated Farmers local government spokesperson

Paparoa

Beef farm with scale, in multiple titles

Here

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Onewhero 215 Allen and Eyre Road

Genuine farm with an array of options

An exciting opportunity presents itself with this tidy 99.5ha property. Suitable

99.5 ha

Peter

bayleys.co.nz/1060394

Pukeatua 196 Waimanu

bayleys.co.nz/2315401

Central Hawkes Bay 382 Kairakau Road

232 ha. Instructions are to sell!

Auction

3 1

Glenloch, located at 382 Kairakau Road, Elsthorpe, Central Hawkes Bay, presents a unique turnkey farming opportunity as a significant player in dairy grazing, heifer finishing, alongside breeding operations. Beyond its prime location near Kairakau beach, Glenloch's superiority lies in its commitment to quality. The fencing, stock water infrastructure, soil fertility, along with pasture management, all meet exceptional standards, showcasing the current vendor's unwavering dedication to high level farming practices. With the added benefit of good all-weather access through a metalled lane, this property ensures ease of stock movement for efficient farming operations. The property features a three bedroom homestead that has been the family residence for the current vendor, with an in-ground pool on private grounds, providing a retreat from the farming activities. A straightforward sale, as per the vendor's instructions.

Springfield 464 Springfield Road

695 ha – Springfield, Central Canterbury

Tender

Available to the market for the first time in over 100 years Springvale provides a fantastic opportunity for those seeking a balanced and scaled property.

Covering 695 ha there are over 130 ha of flats, approximately 70 ha of rolling downs with the balance being made up of medium to harder hill.

The property is currently leased and has in recent years been utilised as a sheep and beef breeding operation however reference period history (2014-2019) and soil types allow for a broader farming mix which might include dairy support and mixed cropping options.

Infrastructure includes two homes, three stand woolshed, haysheds, workshop and stock handling facilities. Properties of this nature seldom come to the market. Discerning and strategic purchasers will recognise this and be cognisant of the potential to enhance the productive capacity of the property.

Auction 2.00pm, Tue 9th Apr, 2024, Property Brokers, 306 St

Aubyn Street West, Hastings

View By appointment

Web pb.co.nz/HR178564

Simon Hunt

M 021 404 079 E simon.hunt@pb.co.nz

Pat Portas

M 027 447 0612 E patp@pb.co.nz

Tender closes 1.00pm, Fri 3rd May, 2024

View By appointment

Web pb.co.nz/DFR178528

Matt Collier

M 027 205 6626 E mattc@pb.co.nz

Simon Anderson

M 021 0828 5532 E simon.anderson@pb.co.nz

DOGS FOR SALE

HEADING DOG 8-MONTHS old. Brother to N.Child nn. 6-MONTH old pup working and 4-MONTH old pup working. Phone 027 450 6095.

headstock, balage available. NAIT reg. Suit dairy replacements. Kaiwaka, Phone 021 498 431.

GRAZERS WANTED FOR up to 150 Cross-breed or Friesian R2 Heifers. Cambridge. 10yrs Grazing Experience. References Available. Phone 021 325 038.

HAY/BALAGE FOR SALE

HAY SQUARE AT $75, Rounds at $85 plus GST. Wheat and barley straw available now.

BALAGE

EXCELLENT QUALITY, $75 per bale plus GST. Unit loads available for hay and balage. Phone 021 455 787.

HEIFER GRAZING AVAILABLE 100 R2 HEIFERS. May to May. Options for other classes of stock. Waikite Valley, Rotorua. Phone 021 162 9237.

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

THE GULLIES Wiltshire & Low Input Rams. SIL; FE and worm tolerance. Lower your shearing costs. Look after your bottom line. Richard Morrison, 021 626 513, richard@thegullies.nz

HIGH PRESSURE WATER

PUMPS, suitable on high headlifts. Low energy usage for single/3-phase

COMPLETE IN-MILK FRIESIAN/ FRIESIAN CROSS HERD

A/c P Curnow & J White

Date: Thursday 4th April 2024

Address: Matamata Saleyards

Start Time: 12.00pm will be available for online bidding

COMPRISING:

90 x In-Milk Friesian/Friesian Cross Cows (3 digit herd code)

DETAILS:

• BW189 PW213

• 371M/S, 118,000 SCC

• Breed 60% Crossbreed, 40% Friesian

• BVD Tested and Lepto Vaccinated, TB C10

AUCTIONEERS NOTE:

Very attractive in-milk cows milked twice a day and supplemented with baleage.

These cows come forward in working condition and will shift well.

DELIVERY/PAYMENT TERMS:

Within 14 days of sale.

Delivery day of the auction.

CARRFIELDS LIVESTOCK AGENT:

Paul Collins

M: 027 304 8994

SILVERSTREAM CHAROLAIS

SATURDAY 6TH APRIL

Brent and Anna Fisher 1069 Hudson Road, Greenpark - 3pm

> 15 Charolais Mixed Age Cows (PTIC)

> 13 Charolais R2 Heifers (PTIC)

> 15 Charolais Heifer Calves > 4 Flushes > 3 Semen Packages

Further enquiries:

Brent & Anna Fisher 03 329 0994 or 027 251 4791

Guy Martin 027 538 3741

Callum Dunnett 027 462 0126

• R1 Friesian, beef & beef cross bulls

• R2 Friesian, beef & beef cross bulls

• Weaner beef bulls, all breeds (premiums paid)

• Angus & Angus Hereford cross weaner steers (premium paid on large lines)

• Incalf beef cows all breeds

• Cull beef cows and dairy cows

We are more than happy to discuss your options

SOUTH ISLAND WIDE

Contact Colin 027 285 5780

hazlett.nz

ON FARM IN MILK DAIRY HERD AUCTION

On A/c Tasman Dairy Farm

Friday 12th April – 11.00am

542 Main Road, Motunui – F/N 43445

Comprising

170 In milk Friesian Cows

30 x In milk Crossbred Cows

20 In calf Holdover Cows

This is a very good uddered herd, owned and faithfully farmed by the Findlayfamily comes to auction in milk and has never been marketed for sale prior to auction.

LIC bred for 20 years, these hard-working cows will come forward in top condition. Stocked at over 3 cows p/ha producing 380-400 m/s per cow and 1400 m/s per hectare.

Due from 20/07/24 to LIC Friesian sires and tailed with low birthweight Angus bulls until 07/01/24.

Scanned to dates with full production catalogue available.

TB status C10.

BVD bulk milk test negative.

Cows are available for delivery from

Monday 15th April 1924.

Payment terms 1/6/2024.

An excellent opportunity for prospective purchasers looking to top up with quality cows.

A light BBQ luncheon provided.

Enquiries:

Stephen Sutton 027 442 3207

CANTERBURY/WEST COAST CALF SALES

Canterbury Park Calf

Thursday 4th April – 10am (Bidr)

Cheviot 3rd Calf

Friday 5th April – 10.30am (Bidr)

Ross Calf

Wednesday 10th April – 11am

Whataroa Calf

Thursday 11th April - 11am

Canterbury Park Calf

Wednesday 17th April – 10am (Bidr)

Cheviot 4th Calf

Friday 19th April – 10.30am (Bidr)

Canterbury Park High Country Calf

Thursday 2nd May – 10am (Bidr)

SALE TALK

There once was a kid named John who was absolutely obsessed with tractors, He absolutely LOVED them. He had tractor models, tractor wallpaper, tractor board games and more. Kids at school would tease him and call him John Deere.

After graduating, he decided to work on a farm. Day in and out he would slog his gut out on the Farm, using his trusty Tractor in almost everything he did. Plowing fields, spraying for pests, irrigating his paddocks and carting fencing materials all done with his trusty sidekick. During his time on the farm he met a girl, and soon fell in love. She thought he was a bit quirky, but loved his passion for his trusty old Tractors. Jane was the only thing that even came close to his love for tractors.

One day while out in the paddock, Jane fell off the back of a transport truck and was run over by John in his Tractor. John was devastated. With her last breath, she quietly whispered in his ear “Don’t blame the tractor”, and with those final words, she quietly slipped away and headed up to the big farm in the sky.

Sadly, he did blame the tractor, he hated them all. He went home and destroyed ALL his tractorrelated items, clothes and even his collection of treasured childhood tractor toys. He put it all in a pile and burned it all in the backyard.

Years later he decided it was time to get back out in the dating world, asking out the young lady who worked at the cafe down the road, to dinner. The restaurant, while nice, was EXTREMELY smoky.

So smoky that his date, being an asthmatic, was having some trouble breathing. After noticing her displeasure, and trouble breathing. John ventured into the kitchen and spotted a small fire burning some leftovers. Leaping into action, with the restaurant patrons looking onward, he started breathing in. I mean REALLY breathing in. Inhaling with such force that all the smoke quickly left the dining room, and went into his lungs. He then stepped outside and released it all into the night.

When he rejoined his date she asked “How on earth did you do that?” to which he replied, “I’m an extractor fan.”

HIGH PW JERSEY/JERSEY X & KIWI X HERD AUCTION

Monday 8 April 2024 - 11.30am

On Farm - 4688 State Highway 27, Tatuanui, Morrinsville

Dairy # - Tatua 60. A/C Mark & Louise Benns

Comprising:

• 180 Jersey/Jersey X & Kiwi X Incalf Cows, BW 337, PW 416, RA 100% Herd BW’s to 509 and PW’s to 955. Herd is ranked 54th for BW and 16th for PW in New Zealand.

This very nice herd consists of 70% Jersey/Jersey X and 30% Kiwi X cows and has been meticulously built up over recent years to present a strong, capacious and well uddered herd to efficiently produce milk solids for years to come. Over the past 6 years, Mark and Louise’s focus has been on improving PW and udder conformation through aggressive culling, and increasing live weight, protein, and capacity in the herd.

Herd calving commences on the 15 July to 20 September. 5 weeks nominated AB Jersey and Xbred.

Then SGL Dairy AB (No Bulls). Cows have been scanned to dates. Herd Ave 380 MS/cow, and 1275 MS/HA on System 2/3, Ave SCC 90,000. Long walks, Low/medium inputs, Herringbone shed, TB C3, EBL Free. Delivery - Immediate delivery unless prior arrangement is made before the sale.

Payment - 1 June 2024.

Online bidding available via BIDR, to register please visit www.bidr.co.nz

If you are in search of quality high figured cows, we strongly recommend you attend this fixture.

Contact: Brook Cushion 027 243 1816

Andrew Reyland 027 223 7092

Est.

FEMALE DISPERSAL SALE

Monday 8th April 2024

Commencing at 10.30am

On Farm, 291 McBeth Road, Kiwitea and online on Bidr

Alan: 027 439 6717

Michele: 027 629 8954

Email: atahua.angus@farmside.co.nz

Ebook available online at Pivot Design / 2024 Sale Catalogue

Key: Dairy Cattle Sheep Other

OUTSTANDING YOUNG FRIESIAN/ FRIESIAN X HERD AUCTION

Thursday 11 April 2024 - 11.00am

On Farm - 198 Kakahu Road, Te Poi, Matamata

Dairy # - 77700. A/C Rosemark Farms Ltd

Comprising:

• 360 Friesian / Friesian X 2yr to 5yr old Inmilk and Incalf Cows, BW 278, PW 352, RA 98%. BW’s up to 434, PW’s up to 801.

Our vendors have instructed us to offer at auction, the pick of 2yr - 5yr Friesian / Friesian X cows out of their 950 cow herd. These cows have not been offered for sale before.

This outstanding herd has been owned by Mark and Rosemary for 20 years, and their breeding policy has focused on production, fertility and udders while maintaining a strong Friesian / Friesian X cow.

This herd is milked on a rolling to steep farm under the Kaimai Ranges with long walks and are producing 390-410kg MS/Cow on a system 2/3. Ave SCC 110,000.

TB Status C10, BVD Negative, Mycoplasma Bovis not detected, EBL Free, Rotary shed.

Calving from 18 July to LIC Friesian with a handful of Hereford straws used.

AB for 6 weeks and then tailed with Jersey bulls for 20 days. SGL semen was then used until 23 December. Cows have been scanned to dates.

Delivery - Immediate delivery unless prior arrangement is made before the sale.

Payment - 4 June 2024.

Online bidding available via BIDR, to register please visit www.bidr.co.nz

If you are in search of quality young Friesian / Friesian X cows, we strongly recommend you attend this fixture.

For more information contact: Hamish Wills 027 232 4813

FEILDING WEANER FAIR

Wednesday 27 March - 11.30am

Feilding Sale Yards

Approximately:

• 620 - Traditional Steers

• 100 - Exotic Steers

50 - Traditional Bulls

• 250 - Exotic Bulls

• 200 - Traditional Heifers

• 125 - Exotic Heifers

Annual Lines:

Bremner Pastoral, H&H McDougall, Central Honey, David Alexander, Dylan Amon, Crawford Bros, Kohi Cattle, Pukeko Land Co, Walker P/Ship, Arranmore Farms, Terawhiti Station, Ben Murphy, Rhys Rhodes, Kontiki, Peter Applegarth, Hopelands Farm, Rangitoto P/ Ship, Tapuwai Farm, Hillbrae, Gledhill Agri, Motu-Tawa

For more details contact:

Maurice Stewart 027 246 9255

Tony Gallen 027 590 1711

Proudly sponsored by

Strong trends for first weaner fairs

A thriving grass market has translated into brisk trading at the first of the fairs, though the swift arrival of the dry may test this demand.

Alex Coddington MARKETS Livestock

BUYER demand at the first beef weaner fairs has been strong. A much larger proportion of cattle have been making four figures, driven by firm weights and sufficient turnout in the rostrums of the major saleyards.

This year’s growing season has been comparable to early 2023’s, resulting in similar to better weights recorded at most early fairs.

The quick onset of dryness heading into April in eastern parts of the South Island, Northland, and eastern regions of the North Island may test the depth of this demand as buyers quickly fill their quota and further weaner fairs commence.

As a whole, demand across classes has been varied. The general value of steers at auction has firmed, especially for exotic types, while at Stortford Lodge the market for heifers was steady to slightly softer this year.

Similar reports of a steady-tosofter heifer market came from Wellsford, where the exceptional offering of heifers last year proved a tough standard to beat.

Starting in Northland, more than 10,000 of the earliest-born calves were sold in the first half of March. Buyers who made trips from all over the North Island were eager to secure weaners

from these initial sales amid the lacklustre supply of R2 cattle available for purchase.

The northernmost sale took place at Peria. Of the 2200 calves yarded, the exotic steers, 250300kg, returned the best results as they made $1025-$1230. Lighter traditional steers, 220-280kg, made $814-$1036.

Strong results were yielded for weaners offered at Kaikohe and Wellsford, with the average price of traditional steers and bulls firming last year’s results.

The most noticeable change in this market dynamic for 2024 has been the value increase for exotic steers. At Stortford Lodge and Frankton, the average price for exotic steers increased by 14-18c/ kg.

There has been a noticeable lift in demand for heavier cattle, pushing up the per-kilogram price, and testing the bounds of perhead price on a weaner.

The average value of weaner beef steers in the paddock this year for March is $4.00/kg. In 2023 the value for this month was the same. However, the price of R2 steers was 22c/kg more last year, and similarly, the scheduled price of prime steers was also 17c/kg ahead.

It was a solid turnout at Rangiuru’s first fair and the results for calves were exceptional. The gallery was the largest seen in the rostrum in some time thanks to a thriving grass market.

The average weight of beef

50 SHADES: Beef weaners await their turn at the saleyards at Stortford Lodge

It was a solid turnout at Rangiuru’s first fair and the results for calves were exceptional.

options levelled at 257kg for steers and 230kg for heifers. For traditional steers, the average price jumped from $930 last year, to $1025.

Traditional and exotic heifers were a closer reflection of 2023 calves, just 5kg heavier on average, they made $45 more. The second round of sales in Rangiuru lacked the robustness of demand

to firm results. However, pens all sold to market expectations, and the ease in price was a relief for those in the market for a more reasonably priced calf.

Taranaki held its first-run weaner fair, with all pens loaded to full capacity. However, the extended supply returned results that didn’t quite match expectations. The traditional steer average dropped by $140 to $870.

The best of these were 285333kg which reached $1000$1100. Exotic steers had a slightly smaller average decrease of $100 to $925.

Two lines of Simmental-cross and Charolais-cross, 282-335kg,

took the top spot at $1250-$1295.

In the South Island, calf sales are just starting to build momentum. However, there is a clear indication of a preference for lighter calves. The prolonged dry conditions devastating some Marlborough farms prompted an early calf sale in the region in late February, but support from North Island buyers helped to leave all parties satisfied.

However, the latest round of sales, at both Blenheim and through Canterbury, have come back a step. Typically traditional weaner steers averaged around $3.80-$3.90/kg last week, with the heifers around $3.00/kg.

“ Farmers Weekly is reliable and consistent. It’s great to have the solutions Federated Farmers are working on published every week.”

Simon Cameron Haast sheep and beef farmer, Federated Farmers meat and wool chair

Markets

Weekly saleyards

There is nothing like a few frosts to get the ball rolling on winter stocking rate preparations and preserving feed for those mouths. Stortford Lodge posted a larger store cattle tally at 609 head, partly due to several annual draft lines of R2 steers. Of these, the middle-weight beef options, 402-431kg, collected $3.30-$3.39/kg while strong competition for Wairoa-sourced Angus and Angus-Hereford, 358-384kg, reached $3.75-$3.79/kg. Also giving the numbers a nudge was a consignment of weaner Angus bulls of which the tops made $1055-$1185, $3.88-$3.92/ kg. Central Hawke’s Bay and Waikato buyers were active for the cattle sale, and the former also in the lamb sale outside.

Prime

Tuakau

Rangiuru |

19 | 264

Frankton |

19 | 423

Frankton |

| 522

|

Store crossbred, blackface mixed-sex lambs, good

Store crossbred, blackface male lambs, shorn, good

Store Halfbred lambs, medium

Prime

Canterbury

Store

Feilding | March 18 | 160

Rongotea | March 19 | 218

Coalgate |

14 | 148 cattle, 7176 sheep

Kaikohe |

AgriHQ market trends

Cattle Sheep Deer

Fertiliser

Forestry

Steer

Rain and the angle it comes in from

Philip Duncan NEWS Weather

IN NEW Zealand a lot of our weather is all about the “angle” it comes in from. Our location on Earth means we’re highly exposed to lows and cold fronts from the Southern Ocean, Tasman Sea and sometimes the tropics.

Despite being in such a prime location, we can get very dry. Did you know that Hobart in Tasmania is Australia’s second driest capital (626mm per annum)?

Despite Tasmania being far more exposed to Southern Ocean storms, the city of Hobart (along with much of eastern Tasmania) is much like Canterbury. Mountains to the west, the sea to the east –and that big westerly flow keeps eastern areas dry.

The reason I’m bringing this up is because NZ’s mountains and ranges play the biggest role in our weather. Unlike flatter islands, like Great Britain, where the rain bands move mostly right across from west to east, our ranges block and enhance rainfall, block and

enhance cloud and often boost our winds.

This also explains why central parts of NZ are so dry – and northern NZ. The Southern Alps are the main reason places like Marlborough and Wairarapa are so dry, because in an El Niño period (and especially in autumn and spring) our nation is dominated often by west to southwest airflows.

When NZ starts to have drought we need to look for two things, whereas many other nations only have to worry about one thing – rain.

Highlights this week

• Not much positive news for those who need rain this week, sorry

• Windy westerlies dominate the start of this week

• High pressure dominates the second half of the week and weekend

Earn a fixed return of 11-12% p.a. with interest paid monthly secured by first mortgage.

Minimum investment of $100,000

Wholesale investors only

No costs or fees deducted

Returns are pre-tax

Finbase provides private investors, family offices and high net worth individuals who meet relevant wholesale investor criteria an investment backed by First Mortgage Security.

Investor security:

Funds are utilised to provide First ranking mortgages to commercial borrowers for the purposes of short term property projects, maximum 12 month term of any loan.

Maximum lending of 60% of property value.

We will cover your legal and accounting fees of up to $2,500 to discuss this investment opportunity with your professional advisors, with no obligation for you to invest after doing so.*

This angle blocks rain into central NZ due to the mountains caught up in this airflow. No different to a shed on your farm creating shade and shelter.

For northern NZ it’s less about mountains (although they still play a role) and more about the fact Australia is often in the way. The angle of attack for wet weather often curves around the continent in a way that swipes Fiordland but not Northland. Especially in an El Niño period.

So when NZ starts to have drought we need to look for two things, whereas many other nations only have to worry about one thing – rain. We also have to work out if the mountains and ranges are going to “break” the forecast.

When rain IS forecast, we then have to look at the angle of attack. For example, Nelson and Marlborough could do with a decent rain event with northerly quarter winds – to really feed it into these regions.

Now that autumn is here properly, we do tend to get more variety in our weather – different angles of rain.

But the next week or so ahead looks dominated by high pressure, just some wet weather in the mix.

El Niño continues to fade going into winter, but may give autumn more of a southwesterly lean to

PURPLE PATCH: 7am Sunday March 24 through to 7am Sunday March 31 shows the bulk of the wet weather in Fiordland and Westland.

our weather. So we may not see an immediate fix to the dry regions –but hopefully as chaotic weather starts to form in the shorter, darker, months ahead we’ll get more variety in the angle of attack of rain bands.

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Te Kauwhata, Mangateparu and Tahuna

First mortgage security

Security description: Property 1: Industrial shed on circa 2,750m² of freehold land.

Property 2: Residential dwelling on 8ha of freehold land. Property 3: Residential dwelling on circa 8,000m² of freehold land.

Combined asset value: $4,001,500

Loan request: $2,114,258

Loan to value ratio (LVR): 53%

Term: 12 months

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Mangere East, Auckland

First mortgage security

Security description: A large residential home with a one bedroom, one bathroom dwelling onsite, totalling a combined area of 130m², on circa 680m² of freehold land CV: $1,125,000

Loan request: $549,700

Loan to value ratio (LVR): 49%

Term: 6 months

Interest rate: 11%p.a. paid monthly in arrears

Purpose of funds: Funds to be used to settle the balance of the purchase

Exit strategy: Borrower will renovate the property and on-sell for profit

Cambridge, Waikato

First mortgage security

Security description: Circa 130m², large fully renovated residential home

CV: $795,000

Loan request: $459,000

Loan to value ratio (LVR): 58%

Term: 10 months

Interest rate: 11%p.a. paid monthly in arrears

Purpose of funds: Funds used to settle the purchase of the property

Exit strategy: Put tenants in then refinance to main bank after 6 months consistent cash flow

For investment opportunities contact our portfolio managers

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