Farmers Weekly NZ July 26 2021 by AgriHQ

3 Wool shakeup on the cards Vol 19 No 29, July 26, 2021

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Dairy exports could hit $22b Gerald Piddock gerald.piddock@globalhq.co.nz

ZX is forecasting New Zealand dairy exports to reach $22 billion by 2030 as companies shift NZ’s milk to higher-value products. Last year, NZ’s dairy exports were worth $19b. NZX head of insight Julia Jones emphasised the forecast in NZX’s 2021 Dairy Outlook is contingent on a number of factors lining up. “It’s a point in time with what we know today, this is what we believe it will look like in the future,” Jones said. These factors include the assumption that average prices the industry has achieved over the past five years will continue and there will be a further decline in land used for dairy farming and overall herd size in NZ. “The amount of cows that we are able to milk will reduce, science and technology will support potentially keeping production the same at best – it might drop 5% (by 2030),” she said. It expects an acceleration in the decline of cow numbers on the back of the Climate Change Commission’s advice of a 13% reduction from 2019 levels of 4.9 million by 2030. The land used for dairying has been slowly declining since 201617, down 1% over the 2018-19 and 2019-20 seasons. Following the average trend over the past five seasons, the number of effective hectares in dairying would reduce by around 30,000 hectares to about 1.7

million hectares by 2030, from 2019-20 levels. It also accounted for changes inside the farm gate due to new government regulations around environmental policy and greater pushes by farmers and companies to show their green credentials. It assumes the last decade’s productivity trends will continue over the next 10 years, which will see per cow production growing from 385-431kg MS per cow in 2030. While per cow production could lift, the 5% fall in overall milk production equates to production falling from an estimated 1.94 billion kg MS in the 2020-21 season to 1.84b kg MS. The report also believes the impact of NZ’s climate change policies will not be as great as first thought. While it was likely there would be a short-term hit to milk volumes, advances in animal breeding would see cows become even more efficient in converting grass to milk. “There is every opportunity to see milk production per hectare grow, while emissions fall. Costs will fall, due to less supplement feed required and as a result, profit grows,” the report said. Milk production will become more and more efficient in NZ, the quality will continue to improve and production will most likely not fall as sharply as some believed. On the export side, over the past five years there has been greater growth in infant formula and liquid milk and cream exports than any other category. If milk starts to shift away from base whole milk powder (WMP) and that the growth trend of most other commodities continues

VIEW: NZX head of insight Julia Jones says New Zealand farmers are a lot better than they might realise when it comes to dairy production.

There is every opportunity to see milk production per hectare grow, while emissions fall. NZX Dairy Outlook in the way it has done over the past five years, there would be a much greater proportion of milk attributed to ‘value-add’ type products. “This is particularly the case for liquid milk and cream, which has seen exponential growth

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rates since 2014-15 and has seen a particularly large push through the pandemic,” it said. Jones says ingredient exports would be further valued and Fonterra was shifting into the higher-value ingredients market, creating sports medicine and paediatric products. “It’s about increasing the value of the product and there’s lots of ‘what ifs’ around that,” she said. Jones says as consumption around the world continues to grow, if supply is reduced but the quality of the product increases, this provides opportunities for better pricing. She says NZ farmers are a lot better than they might realise when it comes to dairy

production. They were agile, focused on their animals and there were still opportunities to produce good volumes of milk within tighter environmental boundaries. She had full faith in the country’s processors and farmers that it was a possibility if they did all the right things on-farm and maintained their focus on offshore markets. Jones says those customers wanted a dairy product that was natural and boosted their immunity to covid. “At the end of the day it’s not about what we like, it’s about what our buyers like and we need to be focused on what these buyers want,” she said.

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ON FARM STORY

7 Feedback

multiplies capital options Fonterra’s capital restructure consultation has drawn out many alternative proposals and feedback from farmers has already modified the company’s preferred option, introducing more farmer flexibility.

28 Passion to serve rural NZ Wilson Mitchell is a young man on a mission. The University of Otago medical student is passionate about rural communities and the health and wellbeing of those who live there.

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10 NZ could lead cleantech New Zealand’s decade-long focus on methane emission mitigation is likely to provide the leading light for a growing cleantech sector, with potential to generate global royalties, despite the challenge alternative proteins may pose to the red meat sector.

14 Shadbolt’s ag efforts honoured

Massey University professor and farmer Nicola Shadbolt has been named as the International Food and Agribusiness Management Association’s (IFAMA) first New Zealand Fellow.

Markets �� 36-40 GlobalHQ is a farming family owned business that donates 1% of all advertising revenue in Farmers Weekly and Dairy Farmer to farmer health and well-being initiatives. Thank you for your prompt payment.

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FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Vote could change the future for wool Neal Wallace neal.wallace@globalhq.co.nz A PROPOSED shakeup of entities that handle more than a third of New Zealand’s crossbred wool clip is being hailed as a once-in-alifetime opportunity to rationalise the industry. About 2100 farmers will vote in November on a proposed merger between grower-owned export and marketing company Wools of NZ (WNZ) and Primary Wool Co-operative (PWC) to form a fully integrated supply chain business. Ahead of the vote, PWC will become the 100% owner of CP Wool with the purchase of Carrfields 50% shareholding. “These strategic moves are the outcome of year-long talks between Carrfields Ltd, Primary Wool Co-operative and WNZ, which collectively handle 37% of New Zealand’s wool clip,” WNZ chair James Parsons said. By bringing together the strengths of individual companies and shortening the supply chain,

These strategic moves are the outcome of year-long talks between Carrfields Ltd, Primary Wool Cooperative and WNZ, which collectively handle 37% of New Zealand’s wool clip. James Parsons Wools of NZ Parsons is confident a merger will grow demand and prices. “We will be increasing scale and the fact we are not competing at the farm gate and one entity will be selling instead of two means we can invest in more demand generating activities,” he said. A key plank is WNZ’s strategy of linking consumers with branded woollen products, such as working

with manufacturers to produce carpet that is competitively priced with synthetic, to appeal to environmentally-aware buyers. “Essentially rather than sell crossbred wool as an ingredient, we want to take control and do it,” he said. He estimates 40,000 bales are sitting in sheds unsold and depressing the market, which this new entity could mop up through increasing demand and ultimately improving prices. PWC chair and a director of CP Wool Richard Young says the proposed merger marks the start of a new chapter for the wool sector. “For CP Wool suppliers it will be the link to greater customer intimacy via the Wools NZ marketfocused strategy,” Young said. “For WNZ growers, CP Wool will bring the engine with its large bale numbers and network of stores that allows that strategy to come to life. Carrfields managing director and CP Wool chair Craig Carr

REFRESH: Carrfields managing director and CP Wool chair Craig Carr says the wool industry needs leadership, investment and a strategic focus.

turning our attention to investing in the future development of wool and hemp products makes good sense strategically,” Carr said. A nationwide roadshow on the proposal starts early next month.

says the wool industry needs leadership, investment and a strategic focus. “Carrfields has decided that supporting the joining together of the two grower organisations and

Industry begins drive to recruit halal butchers NEW Zealand’s red meat sector has launched a recruitment drive to attract halal butchers to the industry. The sector requires around 250 halal processing people every year, with approximately 100 of the roles typically filled by NZ residents or those with open work visas. However, the closure of NZ’s borders due to the covid-19 pandemic means migrant halal butchers and boners are

unavailable and the industry is encouraging Muslim New Zealanders to consider a career in the sector. Meat Industry Association chief executive Sirma Karapeeva says halal butchers are critical to supporting the meat processing industry, especially in regional communities where many plants are located. “Halal processing is a core part of the New Zealand meat processing industry with

approximately 43% of New Zealand total red meat exports halal certified for Muslim consumers. These contribute approximately $3.3 billion in export earnings,” she said. “Without halal butchers, there is a real potential that the overall value of each animal processed is reduced, meaning less revenue for companies, farmers and the New Zealand economy. “Our red meat industry has invested in developing this

expertise and prides itself in consistently being able to produce halal-certified product for millions of consumers around the world. “Processing companies offer competitive wages and training for successful candidates. We encourage anyone considering a move or a step into a highlyvalued new career to get in touch and talk to us about the opportunities available.” Applicants need to be currently

entitled to work in New Zealand, be competent in the English language, physically and medically fit and be prepared and able to work in regional NZ.

MORE: Those interested should contact: halal@mia.co.nz Halal Recruitment Meat Industry Association of New Zealand PO Box 345 Wellington

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FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Review shows positive results

DESTOCKED: Over the next few months all cattle at the Anzco-owned Five Star Beef feedlot near Ashburton will be removed.

Neal Wallace neal.wallace@globalhq.co.nz DESTOCKING of Anzco Foods’ Five Star Beef feedlot in Mid Canterbury will begin shortly as part of the battle to eradicate Mycoplasma bovis, which an independent assessment concludes is being won. The Technical Advisory Group’s (TAG) latest report on the M bovis response notes that in mid-2019 there were 50 infected herds. In March this year there were 10 and currently there are just three infected herds. “The rate of detection of new cases has generally been declining, suggesting that the incidence of infection is declining despite increased testing,” the TAG report stated. M bovis was first identified in New Zealand in July 2017, and in mid-2018 the decision was made to eradicate it. Last year, a cluster of nine infected herds, of which five were dairy, was discovered in Canterbury, with four dairy herds detected through Bulk Tank Milk (BTM) testing in August and September and the balance detected through network surveillance.

RECOMMENDATIONS: M bovis programme director Stuart Anderson says the TAG report made 14 recommendations, all of which have been accepted.

“It is encouraging to see that bulk tank milk surveillance continues to find infections,” the report states. As a precaution due to that cluster, over the next few months all cattle at the Anzco-owned Five Star Beef feedlot near Ashburton will be removed. “In the programme’s view, there are more likely sources from within the cluster of infected farms itself, such as animal movements, shared grazing,

insecure boundaries between neighbouring properties and sharing of dairy platforms,” the M bovis programme director Stuart Anderson said. “However, out of an abundance of caution, and in coordination with the feedlot’s owners, Anzco, we’ve placed a buffer area around the feedlot that will remain free of cattle until it is cleared of M bovis. “This is on top of the already strict biosecurity measures that are in place and being adhered to,” he said. The TAG review noted improved network surveillance since the last report in 2019. “Over the duration of the programme, there have been demonstrable reductions in intervals from identification to tracing to placement of Notices of Direction (NoD) and to resolution,” the report said. BTM testing has detected M bovis-infected herds that would otherwise be missed through network surveillance, although the majority subsequently tested free of disease. The National Beef Cattle Surveillance (NBCS) programme is being used through serological testing of animals entering a beef feedlot, serological testing of

samples from animals collected at the time of routine TB testing and serological testing of samples collected at slaughter. The number of beef cattle testing positive is low. “However, more work is required to better understand the M bovis situation in the beef sector, and amongst groups of non-lactating animals more generally,” the report said. The TAG report makes 14 recommendations, which Anderson says have all been accepted. It includes monitoring of beef herds and non-milking dairy cows and what is required to move from delimiting to the provisional freedom of infection phase over the next year. “The TAG found that improvements to the programme meant it was in a good position to deal with any further infected farms identified, which was likely given some farms’ previously poor recording of cattle movements and the likelihood that unidentified small pockets of infection may remain to be found,” he said. Improved recording of animal movements and operational performance meant last spring’s Canterbury cluster was rapidly

Over the duration of the programme, there have been demonstrable reductions in intervals from identification to tracing to placement of Notices of Direction (NoD) and to resolution. Technical Advisory Group

found and controlled. Genomic studies continue to support the likelihood the disease was introduced about late 2015, via a single source or a small number of very closely related introductions. “With nearly 700 isolates now sequenced from (around) 40% of the infected herds, there is increasing confidence that we are only dealing with very closely related isolates, making it highly unlikely that M bovis was present historically in NZ,” the TAG review stated.

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FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

M bovis programme on track Colin Williscroft colin.williscroft@globalhq.co.nz IN THE four years since the discovery of Mycoplasma bovis in cattle in New Zealand, the eradication programme has evolved significantly, Technical Advisory Group (TAG) chair Scott McDougall says. McDougall, a Massey University professor, vet and registered specialist in cattle reproduction, says lessons learned by MPI and industry partners DairyNZ and Beef + Lamb NZ have led to a streamlining of many of the processes now in place. That has included the development and implementation of effective systems for both active surveillance (casing and tracing) and background surveillance (such as bulk milk testing and testing cattle at slaughter), along with processes to remove animals, disinfect properties and compensate herd owners. However, the years since M bovis was first identified on a South Canterbury farm on July 21, 2017, have not been without challenges. “The eradication programme has had significant impact on affected farmers, but improvements in processes and shortening of turnaround times for compensation, as well as support from numerous organisations, has hopefully reduced these impacts,” McDougall said. “Not unexpectedly, due to the at times cryptic nature of infection with this bacteria, combined with unrecorded cattle movements, cases have been detected outside of tracing networks via the background surveillance system.” He says the recent Canterbury cluster and a number of recent bulk milk test positive samples reinforce the need for ongoing care with cattle movements and

National Animal Identification and Tracing (Nait) recording. “With currently only three active properties, there is cautious optimism that eradication may be achievable. However, longterm surveillance will be required before freedom from infection can be declared,” he said. Agriculture Minister Damien O’Connor says NZ has made a lot of progress against a disease that has a huge impact worldwide on cattle production systems.

Long-term surveillance will be required before freedom from infection can be declared. Scott McDougall Massey University He says if that can continue – and the disease eradicated – the animal welfare achievement, which has not been achieved elsewhere in the world, will help underpin NZ’s future primary produce trade. Although optimistic the goal of eradication is on track, O’Connor says even as the number of infected properties continues to fall, the disease will likely show some stubbornness near the end, making the final push to eradication difficult. He says during the early days of the fight against M bovis there were challenges both on-farm and in agencies involved in dealing with it, but since then significant improvements have been made across the board. He acknowledges that circumstances were challenging for farmers whose cattle tested positive for the disease. “Culling herds was a huge

emotional burden,” O’Connor said. He says improvements are still needed in animal movement and traceability and farmers have an important role to play, however, more can be achieved by everyone involved working together. University of Otago Department of General Practice and Rural Health Research Fellow Dr Geoff Noller says two reviews of the M bovis response during the first 18 months after it was discovered identified issues that included a lack of staff to handle the workload, a critical shortage of appropriately skilled and experienced individuals in key roles, poor or absent liaison with local veterinarians and poor systems and processes to support the response. But that has improved. “Subsequently, the programme has gained ground, with more recently exposed farmers generally reporting increased timeliness of interventions and response,” Noller said. However, Noller says published and ongoing research from Otago University researchers has identified significant and lasting psychosocial harms to farmers, and their families and workers, and rural professionals such as veterinarians, associated with management of the incursion. “Our research team has suggested that given New Zealand will always be vulnerable to future disease incursions, the management of such events would be more effective and less traumatic for the agricultural sector if MPI engaged directly with affected communities,” he said. “By drawing on their expertise and pragmatic problem-solving, the human cost of biosecurity incursions could be reduced and the effectiveness of responses overall increased.”

IMPACT: Dr Geoff Noller says studies have identified significant and lasting psychosocial harms to farming families, workers and rural professionals, such as veterinarians, associated with management of the incursion.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Feedback multiplies capital options Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA’S capital restructure consultation has drawn out many alternative proposals and feedback from farmers has already modified the company’s preferred option, introducing more farmer flexibility. The minimum shareholding part of the revised proposal has changed from 25% of milk supply to 33%, in other words a share standard change from 1:1 at present to 1:3. The board is also open to enabling sharemilkers and contract milkers to hold shares if the co-operative moves permanently to a farmer-only share market. Retiring or exiting farmers may also have up to 10 or 15 years to sell down their shares, instead of three years currently. New suppliers may also have up to six years to share up. In two areas the restructuring proposal remains unchanged: a maximum shareholding 4x milk supply and voting rights to stay linked to share-backed supply. The company will provide more information on business strategy and future performance to help farmers’ views on capital structure. “In August and September, we will provide further information on our long-term strategy including the types of activities

WIDE RANGING: Fonterra chair Peter McBride says farmers’ views during the consultation so far had been varied and heartfelt.

we will invest in, the returns we are targeting, and the measures against which we will track our progress,” the company said. Fonterra chair Peter McBride says farmers’ views during the consultation so far had been varied and heartfelt. “While we seek to cater for diversity it is impossible to incorporate every piece of feedback,” McBride said. “We need to be pragmatic and open to compromise in order to find a way forward together that is in our best long-term interests.” Fonterra is now reviewing the

role of a market-maker in the supply shares and the fund units and how potential buy-back options might support liquidity in a farmer-only market. Consultation themes have been consolidated and published under the heading of alternative farmer proposals and the company has provided responses. Unshared milk supply and the possible return of share capital are two linked themes. Buy-backs would reduce the total shares on issue and an equitable mechanism for distributing unshared supply

would be needed. “Unshared supply would be a separate and potentially significant group of stakeholders,” the company said. McBride says unshared supply is available as a tool within the current constitution but there are limitations. It would need to be available to all and the Commerce Commission and the Dairy Industry Restructuring Act would apply. He says unshared supply in a big way would be unsustainable. Chief financial officer Marc Rivers was asked to comment on the strength of the balance sheet and the priorities for share capital. Rivers says share capital of the co-operative had not moved significantly as the number of supply shares had remained constant. Deleveraging of Fonterra’s balance sheet was proceeding nicely after the sale of its China farms and the Beingmate stake. More remained to sell to get to a debt-to-earnings ratio of 2.5-3. “At that level we have an ability to withstand the inevitable shocks, to go after business opportunities, offer support to our farmers or provide a market maker, for example,” Rivers said. “But the real determination is earnings and the returns we generate from our various businesses. “There are many ways capital

can be applied in a business like this. “Where is the best return on capital – do you return it if you don’t have a better use for it?” To summarise, McBride says consultation had again shown farmer ownership and control are paramount and that moves towards more flexibility also seem to need a farmer-only share market.

Do you return capital if you don’t have a better use for it? Marc Rivers Fonterra Alternative structures suggested by farmers, like nominal shareholding and a twocompany model, have been again dismissed. Over the next two months Fonterra will conduct surveys and have focus groups to ask farmers specific questions and test different aspects of the potential changes. A more detailed proposal should be ready for release around the time of the annual results in late September. “We are still aiming at a farmer vote at our annual meeting in December,” McBride said.

Ospri extends movement reporting deadlines Kevin Forward says Ospri wants to support farmers and communities. “We understand those impacted people will have a lot to deal with at present, whether it be land or property and the recovery will be long-term,” Forward said. “Ospri wants to help lessen the load by giving people a bit of breathing room during this distressing

and uncertain period.” As a result of the extended times the following conditions apply: - Register as a PICA (people in charge of animals) within seven days after the local state of emergency ends. - Declare all animal movements within seven days after the local state of emergency ends. - Animals that arrive

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untagged must be tagged and registered in Nait within seven days after the local state of emergency ends. - Declare animal deaths and losses within 21 days after the local state of emergency ends. Given the importance of animal traceability and biosecurity, Ospri is advising farmers to still tag and register their animals before moving.

Anyone who needs help with domestic or lifestyle animals should contact Renwick (Blenheim) SPCA on (03) 572 9156, or Westport SPCA on (03) 789 7520. For commercial farm assistance call MPI on 0800 00 83 33. Those who need emergency feed, help moving stock or cleaning up, can call Federated Farmers freephone 0800 376 646, option 2 or the Rural Support Trust on 0800 787 254. If you require more information about tagging and registering your animals over this period, go to https://www. ospri.co.nz/farmers-and-livestock-owners/help-with-tags-andtagging/

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OSPRI is extending its timeframes for reporting livestock movements under the National Identification and Tracing (Nait) scheme in areas under a state of emergency after recent flooding. The extensions will remain in place until state of emergency declarations are lifted in the Buller and Marlborough districts. Ospri head of traceability

News

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Groundswell mum on future Gerald Piddock gerald.piddock@globalhq.co.nz GROUNDSWELL will keep its word and take no further action until August 16 to give the Government time to respond to its concerns that its farming regulations are unworkable. The protests on July 16 saw thousands of farmers and their vehicles head to 57 towns and cities across the country to protest policies around freshwater, climate change and biodiversity. “There’s definitely nothing to add to the protest because we have to wait until August 16 and we’ve given the Government until then to make a response,” Groundswell co-founder Bryce McKenzie said. “But we have got other irons in the fire. There are other subjects we will be commenting on or putting stuff out on for people to look at separate to the protest,” he said. This will help maintain the momentum the protests had generated. “We’re certainly not going to do nothing,” he said. McKenzie says it was overwhelming to think the protest had such an impact on people across New Zealand. The turnout still surprised him, despite Groundswell coordinators around the country telling him prior to the protest that it was gathering momentum. He attended the Gore protest and the sheer volume of tractors driven by protesters blew him away. “I remember thinking ‘my gosh, there’s some tractors there’, so it was a bit breathtaking in that respect and I remember when I got up to speak and I looked out at the crowd, I was really taken aback. “There was an enormous crowd,” he said. He also thanked all of those who drove tractors for maintaining such a high standard of safety during the protest. “To take your heavy machinery from the country into towns and

KICKER KICKER: Howl of a Protest organisers Laurie Paterson and Bryce McKenzie. McKenzie says it was overwhelming to think the protest had such an impact on people across New Zealand.

Farmers realise they have to change, but let’s change in a way that we can manage it in a timeframe and the timeframe that this government wants is just too tight. It’s just going to destroy. Peter Buckley Retired farmer cities like that and for there to be no reports of damage is a real credit to those people handling that machinery,” he said. McKenzie believed the protest was successful because people

wanted to show they have had enough. “I think it resonated because there are so many things – if you haven’t got caught with one thing, you’ve got caught with another, or two things or three or four. These things have come in and you’ve had no say and you can’t fathom why you’ve got all of this hanging over you,” he said. In Waikato, retired farmer and former Waikato Regional Council chair Peter Buckley says rural people are hurting, despite the high commodity prices and export returns they were getting. Their margins are being eroded by additional compliance costs and paperwork. “I know of one farmer who has had enough. He’s told the real estate agent that he’s having an auction on July 26 and he wants out,” Buckley said.

Prior to selling his dairy farm, Buckley says he spent $850,000 to construct a wetland to treat the water coming off the property and the neighbouring quarry. In 2015, he was recognised by winning the catchment improvement award at the Waikato Farm Environment Awards. It annoyed him that while some farmers had spent millions on similar projects, other sectors had a lot of catching up to do. “On each individual farm, if you add it all up, the billions they have spent is huge and the water standards coming off farmland is now far better than that in the towns and cities,” he said. He questioned the value of requiring resource consents to develop areas classified as significant natural areas (SNAs) by the Government.

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“What’s that going to achieve compared to what we already do? I have real issues with people wanting to put all of these conditions on and the costs they involve,” he said. Amplifying all of these issues, he says, was the nationwide labour shortages being felt across the primary sector. He rejected claims that it was a sign that farmers were behind the times. “Farmers realise they have to change, but let’s change in a way that we can manage it in a timeframe and the timeframe that this government wants is just too tight. It’s just going to destroy,” he said. Buckley says farmers were not asking for a free ride or a handout, but with regulations that support them, rather than being tied up with red tape.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

We are listening, PM tells farmers Neal Wallace neal.wallace@globalhq.co.nz THE Government is listening and responding to concerns raised by rural New Zealand, but will not back down from their legislative programme or the pace of change, Prime Minister Jacinda Ardern says. Speaking after the Howl of a Protest rallies organised by the Groundswell groups and held in more than 50 centres across the country, Ardern says she is not surprised by the degree of support it drew or the concerns raised. “The most important point is that some of the issues raised we have absolutely heard, we understand and appreciate,” Arden said. The Prime Minister promised to continue to listen to the concerns of rural communities, but will not alter the volume, scope and cost of new regulations or the one-sizefits all policies. Ardern says the group she meets with most regularly is the Food and Fibre Leaders Forum and they raise with her most of the issues

aired by the protesters. She says the Government has responded to concerns, such as working with producer groups to develop the He Waka Eke Noa agreement to reduce agricultural greenhouse gas emissions, made changes to intensive winter grazing rules and extended temporary working visas. “We asked the Food and Fibre leaders their priority: space at MIQ facilities or worker certainty by extending the visas of lowerskilled migrants by 12 months?” she said. “They were clear that they wanted worker certainty.” She called the He Waka Eke Noa agreement “a leap of faith together”. But Ardern says she would not be doing her job if she ignored challenges such as climate change, addressing environmental issues and reflecting the concerns of trading partners. “We are the best in the world but we cannot allow our exports to slip down the world ranking,” she said. She rejected claims the

Government is not listening to the sector, saying climate change and freshwater policy followed years of consultation and they have amended policy after submissions by the sector. “There is a lot going on but we are also being asked to do a lot by those we trade with,” she said. Ardern says the Government is being unfairly targeted with the concerns over the significant natural areas (SNAs) policy, which is being implemented by councils. Identifying SNAs has been a requirement since the Resource Management Act (RMA) became law and while 60% of councils have implemented the policy, the remainder recently started to map SNAs. She appreciates that this could cause anxiety among landowners. Agriculture Minister Damien O’Connor says the Government has been listening to farmer concerns and it continues to listen. “To claim the Government is not listening to their concerns is inaccurate,” O’Connor said. “Through the whole process we

INACCURATE: Prime Minister Jacinda Ardern rejected claims the Government is not listening to the sector, saying climate change and freshwater policy followed years of consultation.

have had our ears and eyes open to feedback.” The Government has partnered with industry on climate change and has consulted extensively on other issues. O’Connor says he did not attend the protest and while not dismissing those that did so, he noted they did not represent all rural people. Asked if Wellington-based government officials understood farming, O’Connor says that is why they consult with the industry

Industry leaders won’t back down POLITICIANS and government officials will have noticed the size of Growndswell’s protests, but a primary sector leader says it will not be persuaded to back down on their reform agenda. Mike Petersen, the independent chair of the Food and Fibre Leaders Forum which meets regularly with politicians and officials, says the Government will not agree to Groundswell’s sevenpoint wish list. “We have a single party majority Government with a reform agenda and to think we can convince them to change big pieces of legislation they are working on, is almost impossible to achieve,” Petersen said. He says the Government is convinced it has an elected mandate for its policies, which it wants passed. “They genuinely believe that this is the direction the country needs to go in and genuinely believe they were elected on that mandate,” he said. “It is too easy to say it is ideology or all about politics. “I take the view that the only way to get outcomes for the sector is to have a conversation with the decision-makers.” With five large reforms under way affecting

SPOTLIGHT: Federated Farmers president Andrew Hoggard was heartened by the support of urban people, which will highlight to politicians that it is not just a vocal minority feeling under pressure and anxious about the same issues.

agriculture – climate change, Resource Management Act, Essential Freshwater, Indigenous Biodiversity and Three Waters – Petersen says the forum has highlighted the need for timely consultation when farming is not so busy. On climate change it advocated for He Waka Eke Noa, an industry-wide approach to reduce emissions but was unsuccessful advocating for a similar approach for water. The forum is seeking Government incentives for farmers to register areas of significant indigenous biodiversity to avoid the

controversy that is erupting over loss of control with the significant natural areas (SNAs) approach. Beef + Lamb NZ chair Andrew Morrison says he and fellow leaders regularly advise the Government that farmers are swamped by the volume and degree of change, a message reinforced by the size of the protest. “I hope the Government picks up that message because it is a message we’ve been saying,” Morrison said. DairyNZ chair Jim van der Poel agrees. “The amount of people that came out ... to show their frustration was more than I expected and it will raise the level of awareness around the amount of concern out there,” Van der Poel said. Both leaders say they are disappointed the Government will not collaborate on policies, with Morrison adding that they need to have faith in those they work with. “The question of whether they are prepared to listen is their prerogative,” Morrison said. Van der Poel says his organisation regularly asks the Government to ease up and look at the big picture of what farmers are currently having to deal with. “Government needs to slow down both the pace and the scale of changes and consider regulations in a holistic way,

not in isolation,” Van der Poel said. Asked if criticism that producer boards are too placating is valid, he says it is in the interests of levy payers that they build relationships and work collaboratively with government and officials. “We have got to act on behalf of farmers, find solutions that work, are practical and equitable and the only way to do that is to work constructively,” he said. Federated Farmers president Andrew Hoggard was heartened by the support of urban people, which will highlight to politicians that it is not just a vocal minority feeling under pressure and anxious about the same issues. “What I am getting frustrated about, the vast majority of rural NZ is getting frustrated about,” Hoggard said. He has heard calls for the federation to become more militant, but says it is important they sit down with politicians and officials. “The challenge we face is if we are militant all the time, then we’ll get ignored and left out of the room. They will not listen to us,” he said. “The benefit of being in the room is sometimes they listen when we point out things that are wrong, dumb or will not work and we get to help fix them.”

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and meet regularly with sector leaders. “The view that they don’t understand farming is ridiculous,” he said. O’Connor says the concept of one-rule for all is a consequence of policy. “In the end, any Government is challenged with laying down laws, which of course do not fit everyone. “We are trying to find the best mix of laws which supports the majority.”

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News

10 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

NZ could lead cleantech NEW Zealand’s decade-long focus on methane emission mitigation is likely to provide the leading light for a growing cleantech sector, with potential to generate global royalties, despite the challenge alternative proteins may pose to the red meat sector. A recent Callaghan Innovation report titled NZ Climate Tech for the World has identified areas this country could excel in, with low carbon agriculture and energy production as two with the greatest potential. The report is being used as a launch point for a NZ CleanTech Mission, an alliance between Callaghan Innovation, NZ Growth Capital Partners, the national science challenge and UniServices. Cleantech is defined as technology that reduces or eliminates greenhouse gases (GHG) or improves the use of natural resources.

It will be looking at the work we have been doing here for some time for solutions to their methane issues. James Muir Callaghan Innovation The report has compared NZ’s performance in developing such technology against other Small Advanced Economies (SAEs), defined as having a population of less than 20 million and “advanced” based on IMF criteria of per capita annual income over US$30,000. With a number of crossovers and references to the $1.4 billion a year agritech sector, the report has placed methane vaccination, agricultural robotics, livestock

breeding and digitalisation as areas the country should all be in the “advance” category. The report found that in contrast to other wealthy, small economies like Israel and Sweden, successful NZ companies have tended to be backed individually by the Government, rather than benefiting by having the entire industry elevated through central government mandate. Sweden, for example, has the Swedish Cleantech Initiative, and Israel the Israel Innovation Authority. NZ has, however, proven its ability to commercialise technology, but researchers still often lack the incentives to bring new tech out of the lab and into companies. This is an issue also identified in the agritech sector, and aimed to be addressed through the industry transformation plan released last year. Callaghan Innovation CleanTech lead James Muir says often researchers were not fully appreciative of the commercial opportunity their work represents. He pointed to methane mitigation, an area the rest of the world would only wake up to once the “easy” carbon emissions had been dealt with. “And, it will be looking at the work we have been doing here for some time for solutions to their livestock methane issues,” Muir said. The report identifies this country’s potential to leverage off low emissions research and innovation has been stymied by the relatively low levels of investment received compared to other SAEs. As a country, NZ has a near average number of innovators (17 against average of 21) raising cleantech capital over the past decade, but they only raised $130 million against an overall SAE average of $600m. But Muir says the main constraint in funding tended to come at the late-stage commercialisation of innovation, with a market failure in linking

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OPPORTUNITY: NZ’s methane mitigation work offers significant commercial potential as the rest of the world grapples with “hard” emissions issues, Callaghan Innovation CleanTech lead James Muir says.

larger tech production companies with the innovative developers in NZ. The work by the NZ Agricultural Greenhouse Gas Research Centre that started well ahead of other countries, offers one of the most promising cleantech opportunities through a methane vaccine. The report cites a lack of significant involvement in innovation by domestic corporations, including Fonterra, as a brake on advancing this faster. However, Fonterra is currently engaged in extensive trials around NZ on methane inhibitor Bovaer, while also working on Kowbucha cultured solutions and seaweedbased options. In June, Fonterra’s chief scientist Dr Jeremy Hill said a methane vaccine offered huge global earning potential, thanks to

the general acceptance and use of vaccines in many countries with high livestock populations, including India. Livestock genetics as a pathway to decarbonisation are also cited as an area NZ holds a solid competitive advantage in. Commercialisation of lowmethane sheep genetics is already well under way and learnings from this are being applied to cattle. Interestingly, the report suggests viewing alternative proteins as a complement, not a replacement to red meat. It acknowledges the level of investment here in this sector is far behind the likes of the Netherlands and Israel. Between them companies in those two countries have received $430m over 10 years, compared to a mere $6.9m for NZ innovators. The possible loss of red meat sales to such competitors should

sharpen NZ’s need to find angles to maintain traditional meat’s appeal in high income countries, including a reduced emissions footprint. In all cases, the report recommends NZ look at working with other similar innovative regions. Some progress has been made here, with companies including LIC working closely with peers in Ireland in advancing genetic research and innovation. “Agricultural digitalisation” is also cited for its potential, where NZ develops a digital “stack” of technology that encompasses real-time tracking of stock and crops, management platforms and precision interventions. At present this is limited by a lack of coordinated outward innovation to push into other countries and a lack of finance to develop hardware.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

LIC’s high-value products prosper Hugh Stringleman hugh.stringleman@globalhq.co.nz LIC has reported a strong set of results for the 2021 financial year, highlighted by no debt in the farmer-owned co-operative and increasing use of higher-value products by the country’s dairy farmers. Net profit after tax was up 31% to $22.1 million in the year ended May 31 and revenue was up 3.4% to $249m, excluding the automation division which has been sold. This year’s sale to multinational MSD Animal Health realised net $24m, received after the balance date, and the board is now considering the use of these funds. Shareholders may be expecting a special dividend as the FY2021 dividend was no improvement on the year before despite the lift in net profit. LIC chair Murray King says that was a result of the dividend policy being 80% of underlying earnings, which were down slightly to

$22.3m after a one-off tax benefit in the prior year. Underlying earnings excluded bull valuation, nil paid share valuation movements and any gain from the automation business divestment. That dividend expectation would be reflected in the recent share price history, up 57% in the past 12 months to $1.21 currently. The price has risen 30c since early March, most of the gain ahead of the divestment announcement in early June. LIC will return $17.8m in dividend to shareholders, which equates to 12.51 cents a share. The fully imputed dividend is a 14.4% gross yield based on the current share price and will be distributed on August 20. LIC has 127m shares issued and a current market capitalisation of $153m. King says dairy farmers were responding to the refocusing of LIC to its core business as a modern, progressive co-op, especially in purchasing premium genetics.

“Young, genomicallyselected bulls are used to fasttrack genetic gain and deliver more value on-farm through increased productivity and efficiency, including improved environmental efficiency.” Combined with the dividend payments, this was a win-win for farmers. Premium genetics now accounted for 41% of all AB inseminations, being 1.79m out of 4.3m semen straws, more than double the rate three years ago. Most of the premium straws purchased were from the Forward Pack or A2/A2 bull ranges. That included sexed semen, which accounted for 110,000 straws, three times the previous year. The number of traditionally daughter proven bulls used for AB continued to decline, now down 40% from three years ago. That shift reflected growing confidence in LIC’s genomic work and the adoption of new tools and

INVESTMENT: LIC chair Murray King says they have invested heavily into genomics because the DNA of a dairy herd can do a lot of the heavy lifting to help meet the sectors’ climate goals.

solutions for farm sustainability. “We have invested heavily into genomics for our farmers because the DNA of our dairy herd can do a lot of the heavy lifting to help meet our sectors’ climate goals,” he said. “World leading pastoral dairy genetics and genomics are a much more precise tool for farmers than the blunt instrument of reduced cow numbers.” LIC was working with the NZAEL subsidiary of DairyNZ to include genomics in future animal evaluations to support the national breeding objective. In the financial year, herd testing was up 7.3% and animal

health testing up 23.9%, primarily for Johne’s disease and milk pregnancy testing. International exports were up 23% by value after some initial challenges getting product to market due to covid-19. Expenditure on research and development was up 15% to $17m, plus $3m on improvements to MINDA LIVE herd management system. The board is recruiting a new chief executive after the decision of Wayne McNee to stand down in November. It expected underlying earnings to be in the range $19m to $25m in the current financial year.

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News

12 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Calf rearers dropping numbers Hugh Stringleman hugh.stringleman@globalhq.co.nz HIGH beef schedules and store cattle prices are not feeding through into four-day calf values and calf rearing margins, which march to the beat of different drums. Major calf rearers say their businesses are dependent on calf supply numbers in sale yards, input and labour costs, seasonal weather and demand down the track from beef farmers for 100kg weaners. The numbers of calves being reared are going down, which is counter-productive for the industry, despite good markets for beef and the availability of better beef genetics over dairy cows. The biggest operators are hanging in, but not expanding, while low margins and uncertain outcomes have decimated the ranks of smaller businesses. Calf rearer Ian Farrelly, at Pokuru, near Te Awamutu, says this year dairy farmers may cut back on the numbers of calves retained and reared, thereby releasing more into the sale yards and keeping prices down. Although rearing costs had risen, he was hopeful that margins would turn out like last year. “Costs of rearing have gone up by $20 a head for milk powder, meal, labour and animal health,” Farrelly said. “In contrast to last year, demand for autumn-born weaners has been very strong – I could have sold my 2000 of those calves twice over. “Export beef markets are booming, supply and demand are balanced, China is buying aggressively and those things drive weaner prices a little.” Farrelly is hoping that healthy demand for weaner bulls in the spring will hold them in the current range of $525-$600 and $475-$500 for heifers, depending on live weights. His business will do 10,000 calves over the whole year, ideally about half of them contracted, alongside a family dairy farm.

IMPACT: The numbers of calves being reared are going down, which is counterproductive for the industry.

In contrast to last year, demand for autumn-born weaners has been very strong. Ian Farrelly Calf rearer Joanne Leigh of Top Notch Calves in Cambridge says fourday spring calf purchasing had only just begun and calf values had not settled down. “The season is shaping up to be similar to last year, but I think there is more demand for Friesian bull calves, which is what we mostly rear,” Leigh said. “That reflects the strong bull beef price schedules for slaughter and the recovery from drought. “We need to keep the calf purchase prices reasonable and

not get carried away with the high schedules. “These bull calves are two years away from realisation, so the dairy-beef farmers are cautious over what they will pay at the 100kg stage.” Leigh says costs increase every year and most recently, Top Notch had to factor in another week’s sick leave for staff members. Calf meal costs have risen and calf milk replacer (CMR) has gone up about $10 a bag because of increased whole milk powder prices. Top Notch was not going to increase the numbers of calves reared, staying at 7500 annually, 4500 of them being spring-born Friesian bull calves. Some heifer calves for local dairy farmers were being reared under contract because of staff shortages on farms and a preference to put milk in the vat at the present high prices. Top Notch has sold about half of its autumn-born weaned calves,

including white-faces, at prices similar to last year. Leigh says she had noticed more demand, making them easier to move in contrast to last year’s drought situation. Te Awamutu-based rearer of large calf numbers Mark Bocock has contracts with both calf suppliers and weaner buyers. Costs are rising every year and, for example, this year CMR is up 11%. Rural suppliers’ websites show 20kg bags of standard Ancalf, Milligans or Ngāhiwi CMRs between $100 and $105, plus GST, compared with $90-$95 last year. “That alone has put the costs of rearing a calf up $10, although I don’t begrudge the dairy farmers getting more for their milk,” Bocock said. He says calf rearers who might have done 500 or 600 in the past have shut up shop because there is no money in it. Bocock pointed to a lack of

a common objective along the supply chain. Beef finishers watching schedule prices rise don’t want to pass the benefit on to R1 cattle farmers, who in turn won’t pay more for weaners. Hawke’s Bay calf rearer, supplier and livestock agent Carol Milligan says the numbers of four-day calves purchased off dairy farms for independent rearers had fallen considerably over the past decade. Rearers she knew were doing one-third or one-quarter of their previous numbers and many had stopped the practice. The reasons include land-use changes to forestry, Wagyu-cross contracts or lamb finishing and the lack of reliable returns for all the expense and effort of rearing. She did not think the high price of beef currently was an incentive to rear calves. “Calf rearers need the security of good margins and contracted prices for 100kg weaners,” Milligan said.

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14 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Shadbolt’s years of ag efforts honoured LONG SERVICE: Farmer and academic Nicola Shadbolt has been involved with the International Food and Agribusiness Management Association for more than 20 years.

MASSEY University professor and farmer Nicola Shadbolt has been named as the International Food and Agribusiness Management Association’s (IFAMA) first New Zealand Fellow. IFAMA Fellows chair president emeritus Walter Armbruster acknowledged Shadbolt in a virtual message at this year’s conference, which was held from June 21-25. “Nicola has made a mark in the agribusiness sector in New Zealand and internationally. She has demonstrated distinguished achievement in

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the fields of food and agribusiness management in New Zealand and internationally,” Armbruster said. “She is well-deserving of being an IFAMA Fellow.” Shadbolt’s history with the organisation goes back more than 20 years and includes roles as a chair, moderator and presenter of research papers (both her own and on behalf of international postgraduate students who have returned home) at the annual IFAMA conferences. She says it is an honour to be named a fellow and highlights networking opportunities as one aspect she has enjoyed from her work. “You develop a great network of people from both other academic institutes and agribusiness companies. You see the same people each year and you get to understand their countries and issues and you identify similarities and differences to New Zealand,” Shadbolt said. “This helps expand your thinking in terms of where we fit in, where we can play and what our opportunities are.” She says it’s a constant refresh of what’s going on in the world of global agribusiness, which is always useful, both as an academic and in her other roles. Shadbolt, who is a professor of farm and agribusiness management, has been one of the managing editors of the IFAMA Review journal since 2008.

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“Some years I have many papers to review but it’s interesting as every time you’re reading what’s going on in agribusiness and food somewhere in the world, and it all adds to that body of knowledge.” She has had many papers published as an academic and in 2020 received IFAMA best paper competition award as a co-author. Alongside colleague Dr Elena Garnevska from Massey’s School of Agriculture and Environment, she has recently been involved in coaching teams of graduates for the global case study competition and travelled with them to locations around the world. Shadbolt says those she has met during her time with the organisation have influenced the research both she and her students carry out, ensuring students get an up-to-date global perspective. “We keep telling our students that over 90% of everything we produce gets exported, so New Zealand is global by default. Everything we do has to be connected to what is happening in the world,” she said. “We feed 40 million people, so we need to know what those people want, how they want it, where they want it and what their changing needs are, and it all segues back to New Zealand and how we then change our systems for the better.” Among her other accomplishments, Shadbolt was awarded Officer of the New Zealand Order of Merit for her services to agribusiness in 2018. She spent nine years as a Fonterra director, is a current commissioner on the Climate Change Commission and is chair of Plant & Food Research.

News

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Plant protein an option for dairy? Gerald Piddock gerald.piddock@globalhq.co.nz NEW Zealand dairy factories could pivot to produce plant proteins alongside dairy proteins, but will need assistance from the arable sector to achieve it. Speaking at the American Dairy Science Association’s annual meeting via Zoom, AgResearch scientist Simon Loveday said factories could potentially make these proteins during the winter months when milk production was low due to cows being dried off. In a schematic of how it could work, the arable sector would firstly have to process the plant protein to remove its fat content before being shipped to a dairy factory. This is because the dairy industry did not contain the hardware required to do this. Oil seed and other plant proteins high in oil and lipid content require defatting before its protein can be successfully removed. The most protein-rich crops are legumes, oilseeds and cereals, and each has different protein chemistry makeup and needs to be processed differently. The protein meal could then be shipped to the dairy factory

where its protein content could be extracted, producing protein isolate and concentrate, starch and fibre.

Would food safety regulations permit plant materials to be processed in a dairy factory? Could those secondary streams of starch and fibre be processed on existing dairy hardware and would it be profitable? Simon Loveday AgResearch These factories had excess capacity in the winter months, raising the question of whether that capacity could be utilised to create plant protein. The plant protein industry was also growing fast, worth US$21.23 billion. “There could be an opportunity for some profitable pivoting there,” he said, and it would

require the dairy and arable sectors to partner together for it to work. The ‘poster child’ for plant protein extraction is soy, the vast majority of soybeans processed for oil and stock feed. Only a tiny portion was processed for human foods. However, the soybean’s preprocessing stage and oil and meal extraction process used different machinery to what is typically used in a dairy factory. But there was similar hardware used in factories that isolated plant proteins and those that produced acid casein in a dairy factory. “The question of whether it could be done in a dairy factory – those first two stages of pre-processing and defatting – probably not,” he said. While protein extraction using acid, alkali or salt was a maybe, protein concentration using isoelectric precipitation or ultrafiltration and drying and packaging the protein could all possibly be done at a dairy factory. But, he says, this hypothetical situation posed other questions. “Would food safety regulations permit plant materials to be processed in a dairy factory? Could those secondary streams of starch

POSSIBLE: AgResearch scientist Simon Loveday says dairy factories could also produce plant protein products, but it would have to team up with the arable industry to do it.

and fibre be processed on existing dairy hardware and would it be profitable?” he asked. “The answer, I don’t know.” Plant protein solubility was extremely variable compared to dairy proteins, which tended to be highly soluble. “This points to the fact that the functionality of the ingredients is very dependent on the process and the crop and we can modulate

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functionality by our choice of processing,” he said. NZ’s largest dairy processor Fonterra said in a statement it had no plans to process these proteins in its off-peak times “While we have no current plans to process plant proteins in our factories, we are always open to exploring opportunities in future if they are of value to the co-op and our owners,” it said.

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News

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Concern as NZ condemns China NEW Zealand exporters are jittery after the Government condemned “malicious cyber activity” by Chinese state-sponsored actors given the possible trade risks. “News reports this morning are deeply concerning,” NZ International Business Forum executive director Stephen Jacobi said. “There are always trade risks when NZ expresses concerns about Chinese policy, but potential threats to national security cannot be ignored. “Hopefully this can be managed in the careful and diplomatic way which characterises NZ’s approach to China generally.”

There are always trade risks when NZ expresses concerns about Chinese policy, but potential threats to national security cannot be ignored. Stephen Jacobi NZ International Business Forum Last night, NZ joined a multinational censure of China’s links to cyber attacks. This censure included not only its Five Eyes partners – the US, UK, Australia and Canada – but also the European Union, Japan and the 30-nation North Atlantic Treaty Organisation alliance. Government Communications Security Bureau Minister Andrew Little says the intelligence agency confirmed Chinese statesponsored actors were behind the exploitation of Microsoft Exchange vulnerabilities in NZ earlier this year. “The GCSB has worked through

a robust technical attribution process in relation to this activity. New Zealand is today joining other countries in strongly condemning this malicious activity undertaken by the Chinese Ministry of State Security (MSS) – both in New Zealand and globally,” the statement said. Meat Industry Association (MIA) chief executive Sirma Karapeeva is also hoping diplomacy wins out. “We need to put it in the context of New Zealand’s independent foreign policy and the fact that New Zealand takes a consistent and predictable approach to its relationship with China,” Karapeeva said. The MIA is watching developments closely and “we hope that the mature and strong foundations between New Zealand and China will allow our two governments to manage any differences effectively without it flowing over into other areas of the multifaceted relationship,” she said. NZ’s growing dependence on China’s hunger for its products puts the nation in a tough spot. In the 12 months ended May, China took 30.6% of NZ’s exports, while Australia was the next largest with just 13.2%. “The announcement will add to US-China and AustraliaChina geopolitical tensions, and with NZ being a signatory to the accusations there must be a non-negative risk that NZ’s trade with China eventually faces some hurdles,” BNZ senior markets strategist Jason Wong said. Australian exports – outside of wool and iron ore – have felt the sting of China’s wrath. “I think we all know our vulnerability, given China is NZ’s largest export destination by far,” he said. Former diplomat Charles Finny says NZ is in good company. “The Prime Minister and Minister Nanaia Mahuta have made it clear there will be issues

FINDINGS: Government Communications Security Bureau Minister Andrew Little says the intelligence agency confirmed Chinese state-sponsored actors were behind the exploitation of Microsoft Exchange vulnerabilities in NZ earlier this year.

on which New Zealand will have differences with China and that sometimes we will publicly express these differences,” Finny said. “If there is indeed evidence of China targeting New Zealand in this way we are right to complain and China should not be surprised by this. “Maybe, if we were the only country to say something there might be a risk of retaliation. In this case we are in very good company.” Westpac Bank senior agri economist Nathan Penny also said “the important question is whether or not New Zealand is acting unilaterally.”

Given NZ isn’t alone, Penny doesn’t expect China to single out NZ for retaliation via trade. China infant formula market expert Jane Li also doesn’t expect much reaction from China. “They understand that it is part of NZ’s duty to stand with its allies on certain issues. Our relationship is more than mature enough that it will not affect trade,” Li said. “Beijing is too used to criticism and this statement is not causing material harm so I don’t see why there would be retaliation beyond similarly strong words.” A spokesperson for China’s embassy in Wellington said the accusations are “totally groundless

and irresponsible” and that it lodged a “solemn representation” to the NZ government. NZ’s Ministry of Foreign Affairs and Trade, however, didn’t mince words. Public statements condemning malicious cyber activity are an important element of NZ’s toolkit to both respond to and deter such behaviour by other states, a spokesperson said. “Whether and how China responds is for it to decide, but no one in New Zealand would want to feel that our economic relationship constrains us from exercising our independent foreign policy.” – BusinessDesk

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18 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Council keen to work with activists Neal Wallace neal.wallace@globalhq.co.nz CRITICS of intensive winter grazing are relying on the court of public opinion to improve farmer practices, rather than regional councils or the Government who they label as ineffective. Environment Southland chief executive Rob Phillips says the reluctance of environmental and animal welfare activists to report claims of

APPEAL: Environment Southland chief executive Rob Phillips says the reluctance of environmental and animal welfare activists to report non-compliance has hindered its work.

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poor winter grazing management in Southland hindered the council’s work. “The council takes issues related to intensive winter grazing seriously and is working hard with others to support farmers to achieve good wintering practice and take compliance action, where necessary,” Phillips said. “Unfortunately, the recent publicity about poor winter grazing practice cuts across that work. “We want to follow up and address any poor practice, but when those circulating the images aren’t prepared to tell us where the properties are, it lets everyone down and certainly doesn’t help to improve the situation.” Phillips questions the relevance and accuracy of some images shared online. “Some of the images being shared are not from this winter and many don’t appear to be in Southland,” he said. Waikato animal welfare activist Angus Robson says the system of policing the environment and the mistreatment of animals is broken, so the most effective way to express their concerns is through social media. “Our contention is the system is broken – MPI and regional councils – so dobbing in an individual doesn’t help the system, it perpetuates the system,” Robson said. As an example, Robson says he has raised concerns about drainage on a farm near Te Anau, requesting two-and-a-half weeks ago that Environment Southland serve an abatement notice, but nothing has happened. Similarly, he claims MPI does not have the staff nor the legal backing to investigate non-acute claims of animal welfare abuse. Activists are not publicly naming and shaming individual farmers because they want to encourage improved practice. Robson also disputed claims that photographs have been doctored. “If it looks distorted or animals have been made to do something they would not otherwise have done, we dump the photo so we cannot be accused of doing what we have been accused of doing,” he said. Phillips says the council relies on public reports of properties where poor winter grazing practice may be occurring. He says the council’s first winter grazing aerial inspection over a portion of the province revealed a good level of compliance. “However, intensive winter grazing is a high risk activity when it comes to the environment, and Environment Southland recognises there are still properties where significant improvement is required,” Phillips said. So far this season, the council has investigated 18 incidents or properties related to intensive winter grazing, 14 were reviewed and confirmed as not in breach, one was confirmed and three were being investigated. Following the recent aerial inspection, a further three will be investigated. “This council is a big believer in working with others to get the best outcomes for Southland. By pulling together we achieve so much more,” he said. The next aerial inspection is scheduled for the end of July and an animal welfare inspector from MPI is expected to be part of the compliance team on that flight.

Breaking news? We want to know: 0800 85 25 80 nzfarmersweekly@nzx.com

News

farmersweekly.co.nz – July 26, 2021

HONEST, HARDWORKING, NZ MADE LEGENDS

MEASURE: AgFirst consultant Leander Archer says the project will help identify how much impact the drains have on water quality in the region.

HB tile drains under spotlight TILE drains, the long-time local option for affordable, effective drainage, are under the spotlight in Hawke’s Bay in a project aimed at studying their impact upon freshwater quality. Overseen by AgFirst consultant Leander Archer, the project has been jointly funded by the pipfruit, cropping and kiwifruit sectors, with support from Hawke’s Bay Regional Council and the Ministry for Primary Industries (MPI). Archer says while tile drains have long been part of land drainage solutions in some regions of New Zealand, little is understood about their impact, both positive and negative, on freshwater quality. The project will collect data across 16 properties – eight pipfruit, four kiwifruit and four cropping – for the next three seasons, commencing this spring. Site selection relied on having two trial sites on each orchard or farm, enabling researchers to trial new management methods in year three, once they have collected sufficient data to better understand runoff patterns. The Heretaunga Plains lent themselves well to the project, with extensive tile drainage systems in place, and a varied and dense landuse across all the trial sites. The trial includes the Karamu catchment, identified as one of six environmental hot spots by the Hawke’s Bay Regional Council, where water runoff has shown high levels of contaminants and sedimentation. The plains also have a varied cross section of soil types and experience a range of groundwater movement. “We hope that what we learn from the trials will provide information that can be applied across the country,” Archer said.

“Tile drains are common throughout NZ, with Gisborne being another horticultural area with a lot in place.” Depending upon the level of data and information gathered over the first two seasons, the project managers hope to develop some management methods that can be trialled in the third season. At this stage they are still calculating the total area the drains are effective over, but estimates are that figure is likely to be in the hundreds of hectares.

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Leander Archer AgFirst “Site selection took time because we needed to have a clear understanding of where the drains were on each site. However, there was a lot of interest and goodwill from growers, keen to learn more about the drains and their impact,” she said. MPI director of investment programmes Steve Penno says the outcomes of the work have potential to provide deeper insights into how the industry can become more sustainable. “At the very least we will gain more information about whether this is a problem we need to address. And at the most, we will identify the size of the issue and how to best measure nutrient losses to understand how to mitigate these,” Penno said.

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20 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Journey of self-discovery High country sheep and beef farmer Hamish Murray spent a year on a Nuffield scholarship studying businesses with high-performance team cultures. What he discovered was that before you can work on your team, you need to work on yourself. HAMISH Murray has an impressive CV. He’s played toplevel sport, studied overseas and now works with a team of seven full-time staff, running Bluff Station in the Clarence River Valley. The diversified operation includes 5500 Merino ewes, 950 Angus and Hereford breeding cows and 750 beehives. “I love the variety of farming. The particular valley and property where we are just gets into your blood. It’s isolated and beautiful. I love being outdoors with our animals, I’m happiest when I’m out riding a horse and shifting stock,” Murray said. “I spent the earlier part of my life getting an education and learning to do things other than farming, but for me coming back to farming was about giving my children the opportunity to grow up the same way I had. Learning to dam a creek, ride a pony, shoot a rabbit, those kinds of things. That’s the main reason we love doing what we do – just being able to have our children (aged seven, five and three) as part of our working life.” But none of that prepared him for the drought of 2014-15 that hit Marlborough and North Canterbury. “I’d always pushed myself physically and mentally in anything I’d done. But I’d never reached breaking point. We ended up with stock on 14 different properties,” he said. “Trying to keep everyone going when you had no control over anything was so draining. I reached an emotional breaking point I hadn’t experienced before. “The funny thing at the time was that I didn’t think I needed any help. It wasn’t until my sister pulled me aside and told me to get some professional help that I began to realise. It still took me another 6-8 months to begin that journey, which has now continued for five to six years.” Murray’s saving grace was that he loved learning as much as he loved farming. “Anytime I’m learning something new, I’m excited and energised. So that’s what I did. I realised there must be a better way to look after myself and the staff we work with, so I began a journey to discover my own values and source of energy, learning to lead myself before I could lead our team,” he said. First, he began by analysing his own strengths and weaknesses with a professional coach from outside the farming world. He quickly realised the traditional concept of ‘the boss’ having all the answers was not only personally unsustainable, it was holding others back. “The biggest thing I learnt is that leadership means dropping your ego and getting out of people’s way. Once you work out what fills your cup – what you’re

actually good at – you’re much more open to getting help with the rest,” he said. “But to do that you need to drop that idea of being ‘the boss’. “For me now, leadership is about asking the questions that help others achieve. It’s more of a coaching role.” Hamish’s Nuffield studies involved spending time with a range of businesses from Silicon Valley, California, to Health Care in the Netherlands and the Crusaders rugby franchise in Christchurch. Their constant focus on “soft skills” and shared values wasn’t lost on him. He soon started applying the approach to his own business.

Trying to keep everyone going when you had no control over anything was so draining. I reached an emotional breaking point I hadn’t experienced before. Hamish Murray Farmer “Soft skills are things like the way you communicate, make decisions, reflect and feedback as a team. Everyone has a preferred style based on their nature, so it’s about developing that selfawareness together as a team, trying to understand why people are the way they are” he said. “For example, my father follows his gut instinct, whereas

farmstrong.co.nz

I’m a more analytical and detail (driven) person. If you understand that about each other, you can combine to make a good decision. “We’ve also done an exercise with our team to agree on what values will drive decisions in our business. Ours are: stand together and celebrate success; back yourself and own it; have fun; this is it; and be your best self. It’s empowering everyone to move forward and allows me to stand back and let the others lead. “We try to have one to two team sessions each year to look at ourselves and refresh those ideas.” Hamish’s family has also worked out their ‘why’. “We’ve agreed as a family and a business that we want to share the joy we get out of farming and help the people who work with us to grow,” he said. “If we can share our land, produce and experiences with others, then we’ll enjoy our farming” He’s confident it’s paying dividends. “Obviously you can’t put a dollar value on it, but in the past five years our staff turnover has been minimal, so that’s a great measure,” he said. “It sounds (like) a soft thing, but as farmers it’s important to create an environment that allows others to flourish. That’s how you attract and keep good people. We’ve learnt our staff are every bit as ambitious as we are. “Everyone talks about these companies in Silicon Valley and how they’re so great. What do they do to make people love working there? It was great to dig in and see

LESSON: Hamish Murray says the biggest thing he’s learnt through introspection and a support system, is leadership means dropping your ego and getting out of people’s way.

what made those places tick and apply some of those things back in my own business. “So even though we are a long property and it can be about two hours from one end to the other, we still make time for face-to-face communication, not just about the business, but taking time to understand about people’s families and building trust and relationships around those things. Because when the chips are down, that’s what keeps people together and makes sure we are all pulling together in the same direction.”

LEARNING CURVE: High country sheep and beef farmer Hamish Murray says nothing in his farming career prepared him for the drought of 2014-15 that hit Marlborough and North Canterbury.

Hamish is quick to point out that creating a top team will always be a work-in-progress. “The need for shared learning is continuous. It’s something you have to keep coming back to especially when new staff join,” he said. His own life has achieved a better balance. Despite the demands of the business, every three weeks or so, he heads offfarm to recharge his batteries, whether it’s to play team sport or go for a bike ride. “Sometimes it’s not until you get to the breaking point that your own learning and reflection kicks in,” he said. “The journey for me started at a real low, but now I look back and think I’m incredibly lucky to have had that experience. “The support I’ve had from my family and our team, the groundwork we’ve done together as a team has really given me the confidence to keep learning and grow our business. “I’m excited for farming and the opportunities in front of us in terms of learning and developing our team. “That’s why I think the awareness Farmstrong has created around people speaking up if they’re ‘under the pump’ is significant. Our family is closely knit and I wouldn’t be here today unless I had them supporting me. “If sharing my story sparks people to get some help and makes a difference for one or two people, then I’m happy.” is the official media partner of Farmstrong

AginED Ag ED

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

Volume 66 I July 26, 2021 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz/agined FRANKTON FEEDER CALVES STRETCH YOURSELF: 1

When George returned to the family farm that his parents had grown from several smaller blocks milking 60 cows, what size was the farm? How many cows were they milking at this point?

This table shows the feeder calves at a sale held in Frankton. Feeder calves are young calves from dairy farms, usually around 4 days old that are sold to be reared.

2 What role did George initially take on his return to the farm? How did this benefit him in the longer term? 3 George runs his own farming business separately to his father. How much land does he farm? What number of cows does he milk from this?

Have a go: 1

Go to www.farmersweekly.co.nz

2 Find and watch the OnFarmStory of George Whitelock “Keep pushing ourselves to do better” and read the article “Tackling farming boots and all”. 3 Where in NZ is George’s family farm? 4 George credits boarding at Highschool with helping to grow his involvement in rugby. What school was this?

PUKEKOHE: FOOD OR HOUSES?

4 The farm has its geographical and topographic challenges, what are these? 5 George decided to add a bit of hybrid vigour to his herd. How did he do this? What is his intended outcome from this? (i.e. What is the expected benefit from this?) 6 What does George believe are the similarities between rugby and farming? 7 When do matings start and finish on their farm? Why do they have specific start and finish dates for these?

Refer to the links to answer the following questions: https://farmersweekly.co.nz/ section/horticulture/view/callto-protect-productive-land

WE NEED BOTH – BUT ELITE PRODUCTIVE LAND IS DISAPPEARING At the traditional southern end of New Zealand’s largest city, Auckland – Tāmaki Makaurau, lies Pukekohe, one of the most important food bowls in the country. Growers here produce large quantities of fresh vegetables for the city next door, New Zealanders elsewhere and also for export. They can do this because of the elite soils and an ideal climate that enables continuous cropping around the calendar. Pukekohe’s volcanic soils important features: free draining / very well structured / high moisture holding characteristics / highly fertile However, Auckland city is growing rapidly – including Pukekohe – causing challenges. Streets and houses are expanding. The new residents complain about neighbouring production activities further eroding usable land. Thus, urban sprawl swallows up elite land. This results in a permanent loss to vegetable production compromising the sustainability of future generations. Other vegetable production areas around Aotearoa are also being affected. A proposed National Policy Statement on Highly Productive Land was announced in August 2019, but further details have not yet been revealed.

https://www.tvnz.co.nz/one-news/ new-zealand/taking-stock-oursoil-housing-developmentsthreatening-nzs-fertile-land 1

What percentage of New Zealand’s land is considered ideal for vegetable growing?

2 How much class 1 and class 2 land (most suitable for vegetable production) has been lost to development in the Auckland area? 3 What are four examples of major outdoor vegetable crops grown in Pukekohe? 4 Can you name two other important vegetable growing areas in Aotearoa New Zealand? 5 What examples of vegetable production activities are complained about or are made more difficult by new neighbouring urban residents? 6 Earlier this year, the Ministry for the Environment (MfE) released a report to draw attention to the need for protecting highly productive land; what is its name?

Have a go: 1

What breed/sex made the highest value?

2 What breed/sex made the lowest value? 3 Why do you think bull calves made more than heifer calves?

STRETCH YOURSELF: 1

Calves are usually weaned from milk at around 100kg. Some rearers agree to a contract prior to rearing calves. For example, a contract may be for 50 100kg calves at $500. Why would a contract be appealing for a calf rearer?

2 So far this season, reports are that earlier contracts for 100kg bull calves around October are valued at around $500-$530, while those to be weaned around November are a little cheaper at $440-$550. Why do you think the earlier weaned calves are more appealing than calves weaned later? 3 If you were to buy a good Hereford-Friesian bull calf for $250 and the costs of milk powder and calf meal came to around $150 (not taking into account other costs such as labour etc). What profit margin would you make if the calf sold for $550 once weaned? 4 Many factors go into the confidence levels of the weaner calf market. Things like milk powder and labour costs are expected to be higher this year, how would this affect profit margins?

Want to learn more about soils and cropping? Check out the Bachelor of Agricultural Science and Bachelor of Horticulture at Massey University.

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Newsmaker

22 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Connections are the key to the Young Farmer life Young Farmers clubs have played a big part in Samantha Tennent’s life for the past decade and her contribution was recognised at the organisation’s annual awards earlier this month. Colin Williscroft reports.

OR someone who had no connection to agriculture until she went to university, Samantha Tennent has immersed herself in it since. Most recently, Tennent, general manager at XLVets dairy farmer assurance programme WelFarm, was part of the team that organised the Marton Young Farmers Club’s 80th reunion last year, which won Event of the Year. She also shared the Service to Young Farmers award with Rachel Stewart from Christchurch City Young Farmers. Held just before lockdown last year, the reunion included a social barbecue, events at the rural games in Palmerston North and a night show at Awapuni Racecourse that attracted more than 240 people, including some who travelled from Australia to celebrate. She says current and past members of the club put a lot into organising the event and the community also got on board, so she is pleased their efforts were recognised.

I guess you never know how far your efforts reach. I just like helping create awesome things and I learn heaps from helping out. I’ve met some incredible people along the way. Samantha Tennent WelFarm “We were really gunning for the award,” Tennent said. “Our club has a rich history. We have had a number of competitors in the Young Farmer of the Year competition and a strong representation across the rural sector. “I put a lot of it down to the diversity in our members. We capture the Rangitikei region, which encompasses a range of industries. It’s not just physical farmers that make up our membership.” A former Marton club chair, Tennent’s own connections with

the club have come over two separate periods. She initially joined when, after finishing a bachelor of veterinary technology at Massey University, she moved to the back blocks of the Hunterville/Taihape area. “I had a partner at the time who was a shepherd-general on a big station and it was from there that I really started getting involved in Young Farmers,” she said. She already knew of the organisation from her time at Massey and was aware there was a Marton club. “I’d met their chair through Hunterville rugby club, because that was one of the community things we had. We were all involved in the rugby club,” she said. “So I guess I just wandered along to a couple of Marton meetings and the rest is kind of history.” Having moved away from the area, Tennent has also been involved with the Whanganui and Cambridge clubs but the pull of the Marton club was strong when she returned to Palmerston North to work for DairyNZ. “I thought about joining one of the clubs closer to Palmerston North but Marton was my original club and I couldn’t really see myself fitting anywhere else, so I ended up doing the commute,” she said. “That’s the strength of the club; people join and then have their place and they’ll travel far and wide to be part of the club.” She says that’s helped Marton endure when some other clubs have folded as modern life changed the needs and increased accessibility for people in rural communities to outside influences. The service award that Tennent was jointly awarded with Stewart recognises the unsung heroes of clubs, districts and regions. The people who are the first there and the last to leave, the first to put their hand up to help and provide support and mentoring for others. Tennent did not know she had been nominated and has been heartened by the feedback she has had since receiving the award. “Winning the award is one thing, but the kind of messages of appreciation and support from my Young Farmers comrades has been incredible,” she said.

PROGRESS: WelFarm general manager Samantha Tennent says the networks she has developed through Young Farmers clubs have been important to her professional and personal development.

“One person said there won’t be many people in Young Farmers who don’t know my name. That really hit home. “I guess you never know how far your efforts reach. I just like helping create awesome things and I learn heaps from helping out. I’ve met some incredible people along the way. “I cannot promote the connections enough; I’ve built such an extensive network of friends and contacts. I met my lawyer, accountant and even my partner through the organisation and I’m so keen to keep sharing the word about what being involved can offer. “The power of the network means no matter where you go or what you do, there’s guaranteed friends and support. You look after your own. “You truly get out what you put in with things like Young Farmers and I’ve definitely gotten more back than I feel like I’ve ever given. “So, my advice to any young people starting out on the Young Farmers journey is just sign up for everything. Put your name down, give it a go. You’ve got absolutely nothing to lose. “If nothing else you’re going to meet someone new, you’re going to develop a skill that will pay off later in your career. You might fall in love with something you’ve never considered before.”

CELEBRATION: Former Marton Young Farmers Club chairs John Stuart and Samantha Tennent cut the cake at the club’s 80th reunion, which won Event of the Year at the recent Young Farmers awards.

New thinking

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Timing key to catch crops While catch crops can alleviate nitrate leaching, research has shown delayed sowing reduces its effectiveness. Annette Scott spoke to Plant and Food Research scientist Brendon Malcolm about best practices.

OMPUTER simulation modelling has shown that catch crops can reduce nitrate leaching in wet and dry years, but with every month that sowing is delayed, the effectiveness drops about 10%. Plant & Food Research trials show short rotation (catch) crops grown between two main crops can mop up residual soil nitrogen and reduce nitrate leaching, significantly improving environmental outcomes from winter grazed forage crops. Catch crops can be implemented after any wintergrazed forage crop, such as kale, fodder beet, swedes and turnips, but depending on the next main crop, this can dictate what catch crop is best to use, and when it should be harvested or terminated, Plant and Food Research scientist Brendon Malcolm says. “The main drivers for farmers in terms of what catch crop is best to use will depend on nitrate leaching reduction targets, the intended use for the catch crop and the overall crop rotation,” Malcolm said. He says sowing them in winter, after forage crop grazing, means there is a typically short window of opportunity in which catch crops can effectively mop up nitrogen and reduce leaching, therefore, it is particularly important to choose the right crop and to sow as early as possible after grazing. “Timing of catch crop sowing is important and generally if sowings are delayed too far into September, the benefits are negligible and at that point it is more sensible to focus on establishing the next main crop,” he said. Winter active cereals such as

oats, triticale and ryecorn make good catch crops. Other cereals such as wheat and barley can also be used as a catch crop, however, barley is the least tolerant of cold, wet soils of all the cereals. Grown for green-chop silage, booting – the point at which bulk feed and quality is at an optimum – oats has tended to be the most consistent performing crop overall. Ryecorn is a crop that can offer the greatest environmental performance during the coldest parts of the year, particularly in cold climates like Southland. Ryecorn emerges several days earlier than other cereals and takes up more nitrogen early on. “It does, however, mature quickly and its quality can decline rapidly, making it less suitable for green-chop silage,” he said. “If the purpose is to use as a green manure or as a short-term grazing option, then ryecorn is a good option to consider.” Although forage cropping over consecutive years is not recommended, catch crops can be used in between winter forage crops. As an example, oats can be sown after kale or other winter forage crop, taken through to green-chop silage in late November and then kale replanted. While the second kale crop is sown later than in conventional kale-fallow-kale rotations, oat yields will generally more than compensate for any yield losses from the kale. The exception is fodder beet after a catch crop. Fodder beet needs to be sown on time to capture its high yield potential, given the high cost of establishment.

OPTIONS: The main drivers for farmers in terms of what catch crop, such as this oats catch crop phase of a fodder beetcatch crop-kale rotation demonstration trial in Southland, is best to use will depend on nitrate leaching reduction targets.

Timing of catch crop sowing is important and generally if sowings are delayed too far into September, the benefits are negligible. Brendon Malcolm Plant & Food Research Lincoln To meet target sowing time for fodder beet means the yield potential of the previous catch crop is not likely to be met. However, environmentally the catch crop has done most of its job when terminated or harvested

early in late September/early October, in time for sowing fodder beet. Sowing Italian ryegrass with a cereal like oats is a popular option. Malcolm says research work suggests the Italian does not compromise performance too much and offers subsequent grazing or cuts from Italian regrowth after the oats have been taken off for green-chop silage. As an alternative to green-chop silage, other cereals like triticale and barley can be taken through to a later maturity stage and make good whole-crop silage at the milky-dough stage of grain-fill, while wheat and barley also have the option to be taken through for grain. This winter the Plant AND Food Research Lincoln project

team is trialing the production and environmental trade-offs associated with different cereal species and end-uses such as green-chop, whole-crop or grain. Catch crops can also be grazed or incorporated as a green manure. By mid-spring, the main drainage leaching period has generally stopped and therefore, there is likely no adverse environmental effects of incorporating the catch crops or returning nitrogen to the soil through grazing events.

For further information on the catch crop trials, contact Brendon Malcolm at Plant & Food Research: Brendon. Malcolm@plantandfood.co.nz or https://twitter.com/malcolm_brendon

Keep an eye out

AUGUST 2021 | $8.95

The latest issue of Dairy Farmer will hit letterboxes on August 2. Our OnFarmStory this month features West Coast farmers Anna Emmerson and John Marshall who have stacked several businesses onto their dairy farm. We also catch up with the Waikato farmer who enjoys a career in the corporate world alongside working the farm. We also check out the South Island Dairy Event and chat with the Dairy Women’s Network Regional Leader of the Year.

farmersweekly.co.nz 0800 85 25 80

Stacking the farm

West Coast farm alive with possibilitie s PLUS:

Best of both worlds ➜ Dynamic career and farm ➜ Community comes first ➜ What went down at SIDE?

Opinion

24 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

EDITORIAL

Cleaning up the tech pathway

NEW report, New Zealand Climate Tech for the World, says NZ should have a central Government mandate to foster investment and research into greenhouse gas-mitigation technologies. As a pasture-based farming nation with a world-leading track record on innovation, NZ is in a great position to carry on that leadership role as the world looks to decarbonise its food producing systems. But while we’re really good, we could certainly be better. We’ve had a piecemeal approach to our research in the past and other countries of a similar size and wealth have national strategies in place to commercialise research. That gives researchers and innovators a clear path to market. We’ve proven that we’re good at coming up with great innovations in the agri and cleantech space, but perhaps now’s the time to formalise just how we’re going to foster the next generation. The recent Agritech Industry Transformation Plan (ITP) is a good step towards this. It provides a blueprint for how NZ can build on its current strengths in agritech and push on to greater innovation. As the world starts counting the emissions from the food it consumes and new disruptors show up on the supermarket shelves, we’d be doing our food producers a disservice by not creating a stronger environment of innovation here. The big multinationals such as Unilever and Nestle are all asking more of the farmers that provide food for their products. Unilever announced last week it would trial adding a carbon footprint label to some of its products, with a view to making it standard. That means the measurement and mitigation of carbon losses will become even more important going forward. NZ farmers are already some of the most carbon-efficient producers of protein in the world, so there’s a great platform there to spring from, as long as we have the plans and strategies in place. Do we really want to be left behind by the likes of Sweden and Israel?

Bryan Gibson

LETTERS

Regulation as inevitable as sunrise AS A person with his entire social life spent in the city and with a farm at Rakaia, I think that this unusual mix is useful to comment on Groundswell’s latest march. I attended the march in Christchurch as Darth Vader on a bike and in mild opposition to it. To ride round and round Cathedral Square with my megaphone belting out Star Wars music in the opposite direction to all those emission belting tractors and utes was damn good fun. I stopped and talked with a lot of people, most of whom were polite but struggling to believe that I am in fact a farmer. Just one guy descended into a diatribe of abuse and bad language. I was pained to

see on the news, however, that a solitary woman in stronger opposition to the march than me was assaulted and had her sign torn up. That bigoted burk got the two words he deserved: f---ing hick. And, I do hope he is rueing his actions. The trouble is this regulation is as inevitable as the rising of the sun. It is coming a bit fast and thick admittedly, but we are in a very strong position to take it. Prices have never been higher and as I write, covid has had virtually zero effect on Agriculture NZ. I think if this were the tourism industry suddenly getting heaps of regulation right now, their case would be a little stronger. Also, the feeling I got from this rally was that the protest was principally because of the

financial bottom line. The cost of compliance, the devaluation of land due to significant natural areas (SNAs) and the hardship of using less nitrogen. There was no thought given to the environmental and social bottom line. More biodiversity in the country, the cleaning up of water and the satisfaction of doing this. And no thought at all that a newly designated SNA could in fact become an asset. But what really gets me about this march is the deep irony. NZ has suffered a major weather event recently. It is suffering another as I write. There is one going on right now in Europe that is much worse. It has killed hundreds. A significant objective with this regulation is to address

this, which some say is now the strongest challenge to the human race in its entire history and we go protesting against doing our share to help. I hear there might be a second rally. Well Groundswell, please call it off. Our tractors and our utes are not as welcome in the city a second time as we think they might be, and I think a second rally will do more harm than good. Andrew Luddington Christchurch

Protest long overdue I WOULD like to thank Laurie Patterson, Bryce McKenzie and everyone else in Groundswell for initiating and organising New Zealand’s largest-ever Continued next page

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Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Wool you or won’t you? Lee Matheson

PERFECT storm has been brewing. Low wool prices, increasing shearing costs, dilapidated wool harvesting infrastructure (historically known as woolsheds), a tightening labour pool and an apparent lack of consumer recognition of wool’s inherent values and performance as a fibre, are all contributing to increasing moves towards shedding sheep. It is a potentially divisive and emotive topic when raised with sheep farmers. The noise around the place for shedding breeds like Wiltshire and the Aussie White has grown from a barely audible whisper to a drum beat that is becoming hard to ignore. So, amongst all of the excitement and the apparent mad dash of farmers to use their last cheque to buy a shedding ram, what do we actually know about the value proposition they pose? The reality is surprisingly little. While shedding breeds have been in New Zealand for well over 50 years, it has been a long, slow decline from wool being the mainstay of a sheep farmer’s income to today, where most of us have lost money from harvesting crossbred wool. As a result, research and commercial investment has, unsurprisingly, been directed towards producing the fertile, higher-yielding, increasingly FE resistant dualpurpose sheep flocks most of us are familiar with. Given the familiarity, most are rightly reticent about losing the genetic gains from these flocks just to give wool the chop. What is the research saying? A new programme at Massey University’s Riverside Farm was recently launched to objectively compare the performance of Wiltshire-cross progeny with their Romney half-siblings. Until now, there had been no independent research into the performance of shedding breeds in NZ conditions. With this research in its infancy, we are still some way off using the individual animal evaluation data with confidence in wholefarm system analysis. My friend Will Morrison (Morrison Farming) also informs me that until quite recently there were only Continued from previous page

farmer protest. And to the many thousands of other farmers, tradies and contractors who turned out en-masse, thank you for getting off your backsides and finding the time to be there. For too long, we farmers have been beguiled and befuddled by defeatist and timid platitudes that we need to ‘get with the programme’, that we need to ‘stay inside the tent’. That we need to shut up and acquiesce to more and more poorly constructed legislation as part of our neverending search for a social licence to operate. That the optics of street protests will play out badly

The

Pulpit

What was interesting to me was that when asked, none of that group were actively selecting for the wool characteristics in their rams that their consumers might want. In fact, no one actually really knew what they should be producing. three Wiltshire flocks registered on the industry SIL index, compared to some 600 flocks of Romney, Coopworth and other conventional breeds. Based on this fact alone, the industry isn’t exactly spoilt for choice for elite shedding rams. However, some of the early data from Riverside, as well as anecdotal information from the few farmers who have been farming shedding sheep for many years, indicates that the introduction of shedding sheep genetics into our flocks does not mean sacrificing growth rate or fertility. There appears to be the potential for lower death rates from misadventure and fly strike, as well as a reduction in animal health treatments, dipping, mustering, handling and shearing associated with sheep that shed. In addition, their lack of wool

with the urban sector. Sadly such dribble has largely emanated from our own sector leadership, consultants and media. Well, I guess Laurie and Bryce have just turned some of these home truths on its head. Of course we need people inside the tent, where Beef + Lamb NZ and Feds do a wonderful job. But we also need to ratchet up pressure outside of the tent, if we are to ever achieve pragmatic and balanced legislation where environment, economics and rural communities are given due consideration. If driving a tractor up the main street or taking a couple of dogs to town in a peaceful protest is

NEW THINKING: Perrin Ag managing director Lee Matheson says if NZ is to embrace wool, we need to stop the wool industry happening to us and start making it happen by us.

is increasingly alluring as animal welfare and reduced chemical use in farming become an increasing focus for our consumers. And given none of us are getting any younger, the thought of not having to drag a 65kg ewe across the board twice a year is an appealing one. What about crossbred wool? Has the sun set on this carbondense, sustainably produced and resilient fibre? Not according to Bremworth, who was confident enough to announce last year that they were moving back to solely producing 100% wool carpets, which they have now achieved. The recent appointment of exIcebreaker head honcho Geoff Smith to the chief executive role at the company also suggests Bremworth might sense the potential for a tectonic shift in the perception of wool by consumers. Is a new dawn for wool about to break? So, what to do? After a recent day out with a group of farmers exploring this issue, I’m personally no closer to reaching a conclusion to this seemingly binary question of whether to stick with wool, or not.

But what I am clear about is that for farmers, doing nothing isn’t an option. A basic straw poll of that particular group of farmers resulted in what I thought was a typical outcome – a few were trialling shedding rams, most wanted to hold back and wait to see how the industry and market moved over the next 4-5 years and a handful were committed to wool production. What was interesting to me was that when asked, none of that group were actively selecting for the wool characteristics in their rams that their consumers might want. In fact, no one actually really knew what they should be producing. Only one business had invested in the wool value chain beyond their farm gate and none had any real connectivity to their customer. Hardly the building blocks for a vibrant and profitable NZ wool industry that can deliver what consumers want. There’s an old adage that says doing the same thing over and over again and expecting a different result is akin to insanity. You could say that any continued inertia by farmers in response

somehow irresponsible, then that is a label we should all wear with pride. Because sometimes the quiet whisperings in the corridors of power are not enough, sometimes it is necessary to stand up on your hind legs and bark like a Huntaway to protect your way of life. That is what rural NZ did last Friday and it was long overdue.

this figure was chosen. Under international rules, each country could select a figure between two and five metres to define a tree. That is, the plant must have the ability to reach that height in its situation, even if it is currently less than that. I argued that we should go for five metres because, if we did not, clearing woody weeds like gorse would amount to deforestation. Taking a step back, in 1992 at the Rio Earth Summit it was appreciated that deforestation was responsible for 20% of the extra carbon in the air. The NZ delegation said that afforestation was just the opposite of deforestation and that if countries received a penalty

Jason Barrier Waerenga

Tree by any other height LAURIE Collins (Farmers Weekly, July 19) questions the use of five metres to determine the height of a tree under the ETS rules. I was at the meeting in Wellington when

to the current situation for crossbred wool might be getting close. To be clear though, I’m not suggesting that persevering with a woolled crossbred sheep is stupid – far from it. Initiatives from companies like Bremworth and trends in consumer preferences hint at better days and prices ahead. The question in my mind is therefore less about “should farmers move to a shedding sheep or not?” and more about “if farmers choose to grow crossbred wool, what are they going to do about it?” We need to stop the wool industry happening to us and start making it happen by us. ‘Wool’ we step up to the opportunity or not?

Who am I? Lee Matheson is the managing director of Perrin Ag.

Your View Got a view on some aspect of farming you would like to get across? The Pulpit offers readers the chance to have their say. farmers.weekly@globalhq.co.nz Phone 06 323 1519 for deforestation, we should get a credit for afforestation. A hectare of grass or trees does not necessarily remove carbon from the air (on a net basis), but the conversion of non-forest to forest certainly does. Piers Maclaren Takaka

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Opinion

26 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Rural’s voice was heard Alternative View

Alan Emerson

THE Groundswell movement is to be congratulated. Their low-key, apolitical, factual and dignified campaign has left the country in no doubt about the current issues facing farmers. The Groundswell protests around the country were impeccably organised and transmitted the farmers’ concerns to what has been a sympathetic audience. Both the local and national media have been supportive. Singularly, Groundswell has delivered farmers’ messages simply, clearly and without fuss. The country will be in little doubt of the problems facing the productive sector. The Groundswell mantra of unworkable regulations and unjustified costs has certainly resonated. Their strong message of being an apolitical organisation running an apolitical protest gave them considerable publicity and generated strong support. That the “protest was organised in the spirit of cooperation, nonconfrontation with no intentional disruption” was a credit to the organisation. The directive to “engage with people in a positive way” was effective. Talking to one of the Groundswell organisers Bryce McKenzie was interesting. Asked about his reaction to the protest,

he was “absolutely blown away by it all”. He added that the event “gave rural people a voice that was heard”. As to where from here? He says they have some things in the pipeline but they’ll wait for the Government’s response. Groundswell is a movement to be reckoned with. Their messages have been inspirational. They make the strong point that Groundswell is not opposed to improving freshwater quality and sustainable land-use, but they want regional councils and catchment groups to work together to achieve it. That local focus makes a lot of sense. And the reaction from politicians has been, well, interesting. Government Minister David Parker told me on The AM Show that farmers shouldn’t expect the Government to back down from its commitments.

If Groundswell has done nothing else, it has unemotive and factually presented farmers’ concerns to the general public. What arrogance. Parker needs to come out from behind his lectern and stop listening to the MfE army of sycophantic eco-warriors who have little, if any, practical experience. He could also stop surrounding himself with ‘advisory committees’ of, again, sycophantic yes-people, with pure opinions and little

NOTEWORTHY: Alan Emerson says Groundswell’s Howl of a Protest delivered farmers’ messages simply, clearly and without fuss. Photo: Annette Scott

hands-on experience. If no one has suggested to Parker that removing animals from agriculture will see the country bankrupt, then they possibly should. Parker should face reality that his policy on freshwater is a dog. He should also accept that if farmers won’t do it and regional council’s won’t enforce it he is effectively up the creek without a paddle. Finally, one could respectfully suggest it was the provinces that gave the current Government its mandate. Why Parker is so intent on single national policies defies gravity. Farming in Southland, Canterbury, Wairarapa, Taranaki and Waikato are vastly different, as any school kid knows. The other government statement that farming groups were supporting the Government’s decisions surprised me. Federated Farmers certainly didn’t and I can’t see either the Dairy Companies Association or the Meat Industry

Association agreeing. If farmer groups did indeed support the Government’s decisions, then I’d suggest the Government should tell me who they are. It would be good to have them named, so they could be shamed. The additional political discussion was interesting. Past minister Eugenie Sage burst from the Green corner, suggesting that we needed solutions not complaints. What arrogance. As a minister she was partially responsible for the colossal shambles that was and is the Government’s freshwater policies. She didn’t ‘discuss’, she ‘told’. Forest & Bird urged farmers to stay for the conversation. I’d suggest if they did the same, life would be quite different. We then had National leader Judith Collins doing her best to politicise the apolitical by offering support for farmers. That support certainly wasn’t obvious when either the zero carbon or the

firearms legislation was going through Parliament. Collins also made much of National’s television advertisement opposing the ute tax. No one is more opposed to that peace of sanctimonious, anti-farmer tax grab than me. Having said that, I found the National advertisement deeply offensive depicting farmers and tradies as clowns. I also didn’t appreciate the advertisements sexual innuendo, which Collins thought was funny. The only political party to come out of the shambles with any credibility in my view was Act. Instead of grandstanding, they made the point that they were “pleased to stand alongside the horticultural and agricultural industries who kept New Zealanders fed and the economy going throughout covid”. Interestingly, Act’s primary industry spokesperson and dairy farmer Mark Cameron has a private members bill before the House giving “environmental regulations to regional councils and not Wellington bureaucrats”. It’s little wonder to me that David Seymour is rating above Collins as preferred prime minister. If Groundswell has done nothing else, it has factually and unemotionally presented farmers’ concerns to the general public. Even more importantly, it has generated considerable public sympathy for the plight of farmers. All politicians should be listening. Their electoral future could well depend on it.

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

Did I ruffle your feathers? From the Ridge

Steve Wyn-Harris

CRIKEY! I’m not used to being a columnist that arouses much passion. Given that arousing readers enough to put pen to paper or fingers to keyboards is exactly what editors and publishers want from their opinion writers and that I elicit so little, it’s a wonder I’ve had such a long career. My theory is that they have become so used to me that they have forgotten about me entirely. The usual run of events is a trickle of emails direct into my inbox either saying they enjoyed a piece or on the other hand, someone saying they didn’t. The latter are obviously more forceful

in their view, and I thank them for the feedback and we both go our separate ways never to cross paths again. Mind you, there has been a noticeable increase in the latter in recent times. Any taking the piss out of Trump was met with his loyal supporters telling me not to be so nasty to the man. Usually in a very vociferous tone. If I mention climate change, there are the inevitable correspondents telling me that there is no such thing or at least humankind has nothing to do with it if there is any. If I touch on covid-19, there are some who obviously have no access to the media or outside world because they tell me that it’s a sham and a media-fuelled overblown crisis. I would like to suggest to them that they go and holiday in poor old Fiji perhaps, but we just agree to disagree. If I talk about the vaccination programme, inevitably I hear from people who tell me that vaccination is an extremely bad idea. I tell them that the day the

over 60s get called up, I will be there at the front of the line with my sleeve rolled up. One fellow the other day was insistent that 400 Australians had already died from getting the jab. A quick search on a fact check website showed that the story going around on social media was in fact 210 deaths and the truth was that 209 of these deaths were from people who indeed had the shot but had died of other causes such as old age, heart attacks and strokes unrelated to the vaccination and would have died of these things anyway. In fact, the death rate of this cohort that was vaccinated and subsequently died was lower than the death rate of unvaccinated cohorts. There was one death of a person that could be linked to the vaccination. This after over 10 million jabs across the ditch. I’ll take those odds, thanks. I sent the link to the facts on this matter to my vaccination doubting Thomas and heard no more. But suddenly, there’s a flurry of published letters in this paper tearing into me and pointing out

my sins and wrongs. One correspondent got stuck into me on the grounds that I was calling for NZ to be opened up to tourists again. Well, I had said that we’d love our son who has been away for two-and-a-half years to be able to get home but was struggling to get into MIQ – that’s hardly an endorsement for resuming tourism. Quite the opposite as I’ve made the point more than once that if we are actually serious about reducing carbon emissions, why are we so desperate to resume tourism given inbound and outbound tourists contributed 10 million tonnes of CO2 equivalents? But if I had a tourism-based business, I’d have quite a different view. Another stinging letter had me taken to task for my “insightful comments on flower arrangements”. I’ve racked my brains but struggle to remember ever cogitating over the mysterious art of flower arranging. I don’t believe I’ve ever done more than stuff a few daffodils into a vase.

ENGAGEMENT: Steve Wyn-Harris weighs in on the recent increase in reader feedback on his weekly column, one of which may have inspired him to add flower arranging to his bucket list.

But the more I think of it, the more I feel compelled to learn how to do a spot of flower arranging and then indeed deliver a thoughtful and yes, insightful piece on flower arrangements. Give me time.

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

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Tensions with China inevitable Meaty Matters

Allan Barber

THE degree of exposure to reliance on China as New Zealand’s largest trading partner can be viewed as perfectly acceptable or a big risk. Over the past 20 years, the FTA signed by the Clark government and recently upgraded has been the catalyst for a massive change in where we send our exports, especially agricultural commodities. In 2000 Australia, the US and Japan were by far our biggest customers, with China only sixth behind the UK and South Korea as well, but by 2020 China had surged into first place, buying twice as much by value as Australia in second place. The other countries on the list were the same as before. Therefore, China has been the main reason for the large rise in the amount of business we do with the world. The question is whether we should be worried about it. At face value, exports to China make up about 25% of total exports, which is in strong contrast to the days of much greater dependence on the UK before it joined the Common

Market in 1973. Other countries have greater exposure to China as a buyer, such as Australia and Chile at more than a third of their exports, so on this basis New Zealand does not seem to have anything to worry about. What is certain is our Government is trying to perform a high wire balancing act between upsetting China when criticising it for human rights breaches like its treatment of Uyghur Muslims and Hong Kong protesters or getting offside with our ‘Five Eyes’ partners who think we have gone soft on China. Australia has discovered how China reacts to criticism, with bans on some import categories and imposition of tariffs on others despite the FTA. The recent decision to join the Five Eyes partners in calling out China’s state involvement in cyber security attacks indicates the tension inherent in New Zealand’s approach. Some industries – sheepmeat and beef, seafood, wood products, as well as covid-affected tourism and education – are particularly susceptible to China turning off the tap. The meat industry has shown itself to be very agile when faced with being shut out of markets – for example, by Indonesia – but there is no doubt China’s current and future importance to export returns and farmers’ incomes should not be underestimated. Politicians vacillate between encouraging exporters to trade with China and suggesting weakly

they should avoid having too many eggs in one basket. That is the key issue, because the Government’s job is to facilitate trade through negotiating or maintaining access, while the exporters, usually but not exclusively privately-owned companies, develop strategic, long-term customer relationships. In some cases ownership of agricultural companies is shared between NZ and Chinese partners. For example, Silver Fern Farms and Synlait, while Westland Dairy and others are fully Chineseowned. The totalitarian objectives of President Xi’s China will inevitably clash with the interests of shareholders in NZ companies when they butt up against a diplomatic fallout from actions or statements by the NZ government, which China objects to. The Chinese reaction will depend on the degree of offence caused, but it is clear Xi’s view of the world will inevitably clash with our wish to avoid irretrievable damage to our relationships with our traditional allies. The democratic system in this country and our allies is in fundamental conflict with China’s “socialism with Chinese characteristics” or capitalism in a police dictatorship. Some commentators have suggested China’s drive for world dominance (control of the South China Sea, the Belt and Road Initiative, strangling independent thought in Hong Kong and threatened reintegration

CATALYST: Allan Barber says China has been the main reason for the large rise in the amount of business NZ does with the world.

of Taiwan) is encouraged by its perception of the weakness of the west. It believes it will overtake the US as the world’s largest economy within 10-15 years, but this is far from certain. Its population is declining by three million a year and rising because of the irreversible trend to urbanisation and single-child families, which it has tried to reverse too late. Its productivity growth rate, previously running at 3% annually, will come down to under 1% as the economy slows to the more normal rate of a developed economy. Under Xi’s suspicious, narrowminded dictatorship, China is dismantling the approach initiated by Deng Xiaoping to liberalise the economy and engage with the US, with the Communist Party of China no longer believing engagement is useful. The Telegraph’s Ambrose Evans Pritchard notes the incoherence of the Xi model will blunt the Chinese threat over time because “its contradictions and controls will sap the dynamism from the economy” by backtracking on reforming the dysfunctional state-

owned companies, which are needed for party patronage and posting commissars inside private companies. This all poses a challenge for NZ’s Government and its businesses, especially those substantially dependent on China, whether in the form of partnerships, investment or a large proportion of revenue. The Government is on a hiding to nothing: it can throw its weight behind our involvement with China, speak out on matters where China crosses certain red lines, or continue to conduct its high wire balancing act, hoping against all realistic hope it does not offend either side. The one thing in NZ’s favour is our ability to produce high-quality food, which China needs and cannot produce itself in sufficient quantities or import from other ‘friendly’ countries.

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

Interest rates are moving up Straight Talking

Cameron Bagrie

MANY may not like it, but higher interest rates – provided they do not go up too far – are a sign of success. The economy has exceeded expectations. According to the Reserve Bank of New Zealand (RBNZ), the economy has gone from needing “prolonged monetary policy stimulus” to “some monetary policy support”. That is a big change. There are still risks and developments in New South Wales are a reminder how quickly things can change, but the economy does not need interest rates to be this low. In English, RBNZ is saying it is about taking the foot slightly off the accelerator. Do not confuse it with putting the foot on the brake – yet.

What does taking the foot off the accelerator look like? The Large-Scale Asset Programme (RBNZ printing money to buy government bonds) will cease. RBNZ is continuing with its Funding for Lending Programme (FLP) – providing cheap funding to banks – and I am not sure why. Banks are not short of cash. The FLP is on borrowed time too. The focus is the Official Cash Rate (OCR). Markets are expecting a hike before year end and more in 2022. Any rise in interest rates needs to be put in perspective. The OCR is 0.25%. Even if it moves up 150 basis points in two to three years, it will still only be 1.75%. That might be cold comfort for those who have borrowed heavily. You add 150 basis points to a one-year fixed mortgage rate of 2.19% and your interest payment rises by more than 60%. Interest rates worked their magic on the property market as they fell. It will work both ways. As Warren Buffet once noted, when the tide goes out, you find out who has been swimming naked.

RBNZ estimates that the neutral OCR is just below 2%, though with a confidence interval around that midpoint. The neutral OCR is where RBNZ has neither the foot on the accelerator nor the brake. Anything south of 2% is consistent with “some monetary policy support”.

As Warren Buffet once noted, when the tide goes out, you find out who has been swimming naked.

There will be lots to watch over the coming months, beyond covid risks and the vaccine rollout. The trajectory for inflation is key. Excess liquidity, lots of demand and constrained supply is a recipe for inflation. Central banks are backing the near-term spike in inflation as being transitory, driven by temporary supply issues and not

sticky. Government policy is one factor adding to a sticky inflation theme. Finding staff is now a critical issue. Some key inflation suppressants, such as globalisation, are showing signs of reversing. There seems a fair bit of pipeline inflation pressure building. Government spending is adding more to demand when we do not need it. Government policy needs to pivot and focus on the supply side of the economy, so it can grow faster without generating inflation. Critical here is alleviating labour shortages and a plan for opening borders in a controlled-risk fashion. The use of macro-prudential tools such as debt-to-income limits to rein in the property market could take pressure off using the OCR too much. Eyes are also on the US Federal Reserve. Inflation in the US has risen above 5%, and RBNZ cannot be too far out of step with other central banks. The sacrificial pawn will be a

higher NZ dollar if the RBNZ are. Banks have been quick to start raising rates. There is some justification given higher wholesale interest rates and shifting OCR expectations. But they continue to have access to cheap funding, with hordes of cash remaining in transaction and savings accounts. I will be eyeing bank margins. Finally, RBNZ’s pivot and start of an exit strategy ends a multidecade trend lower in interest rates, which has underpinned asset prices. Even modest rises in interest rates will present challenges for asset prices. The old chestnuts of profit and adding value are going to be critical when it comes to supporting asset prices in this environment. While Bagrie Economics uses all reasonable endeavours in producing reports to ensure the information is as accurate as practicable, Bagrie Economics shall not be liable for any loss or damage sustained by any person relying on such work whatever the cause of such loss or damage. The content does not constitute advice.

On Farm Story

28 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

FIREWOOD MERCHANT: Wilson Mitchell and his brother Jordan operate a firewood business in their spare time.

Passion to serve rural NZ W Wilson Mitchell is a young man on a mission. The University of Otago medical student is passionate about rural communities and the health and wellbeing of those who live there. He spoke to Neal Wallace.

ILSON Mitchell attributes the hours spent crutching and drenching sheep over weekends and school holidays for helping fuel his desire to work in rural health. The satisfaction of an honest day’s physical toil is one reason for his infatuation but more so mixing with rural people and observing the dynamics of their communities.

STUDYING: A computer is never far from medical student Wilson Mitchell.

He may just be 23 years old and five years through his studies, but Wilson’s commitment to rural health has already extended beyond good intentions. Born and raised on the Taieri Plains, south of Dunedin, he is the current co-chair of Students of Rural Health Aotearoa (SoRHA), which represents students across all health professions and aims to promote jobs in rural health. Mitchell is also involved in a proposed new body, Hauora

Taiwhenua, a merger of the NZ Rural General Practice Network (NZRGPN) and the Rural Health Alliance Aotearoa NZ, which will act as an advocate for rural health. “We are all different groups with the same aspirations, but we want to have consistent messaging, a joint, strong voice ... whether it is health, GPs, nurses or rural communities,” Wilson said. “That will allow the Ministry of Health or the Government to consult with one body if they want to know something about rural health or to find out something within the organisation.” Additionally, Wilson helped organise this year’s National Rural Health conference in Taupō, which attracted 50 medical, nursing and public health students. From an early age, Wilson wanted to be a doctor but his upbringing was always going to be centred around farming and a rural lifestyle. His dad Garth is livestock buyer for Silver Fern Farms and his mum Debbie is a nurse, but farming has also been in their blood. “Debbie and I were both off farms and we wanted to wait until we owned land before we had children,” Garth said. “We wanted them to have a rural upbringing.” Wilson and his brother Jordan were raised on a 140ha farm on the slopes of the Maungatua Hills, and because their parents worked full-time, school holidays were spent working on the farm, which was enjoyable while instilling a work ethic. They also accompanied Garth

on livestock buying visits to clients and stock sales where they met farmers, which ultimately led to them being offered holiday and weekend farm work. “We would go to the Mt Benger cattle sale and I would give them a programme to keep track of prices,” Garth said. “All the farmers got to know them and still ask what my two sons are doing.”

There is a real need for us to know what is happening to the health of rural communities as this has been difficult to quantify. Wilson Mitchell Med student From these relationships farmers would recruit Wilson and Jordan to work for them. One year Garth was involved in a weaning draft, which Wilson tagged along to and decided to take his handpiece. He spent the morning crutching lambs. Even today the two boys run a firewood business and help out on the family’s 12ha holding, which the family recently downsized to. At school Wilson enjoyed science, especially biology, and was one of five in his class to move to medicine in 2016 and pass the first year Health Sciences course,

On Farm Story

The evidence is that those who come from rural areas are most likely to go back to those areas, stay there and serve their communities. Wilson Mitchell Med student required to move to medical studies. After five years of studying medicine towards his goal of being a rural GP, he has taken a year off to do a Bachelor of Medical Science honours degree at the university’s Cancer Genetics Laboratory in the Department of Biochemistry, where he is helping with research into new stomach cancer drugs. “I want to undertake a year’s study to get a better grasp of science, how to read a paper then write it up while learning from people who have a lot of knowledge,” Wilson said. It is enjoyable work. “There are a whole lot of new skills required to work in a laboratory growing cells, testing different and new drug combinations then interpreting the results,” he said. There is a very real and practical reason for his interlude year, which potentially includes implications for the delivery of health to rural NZ. “There is a real need for us to know what is happening to the health of rural communities as this has been difficult to quantify,” he said. What there is, is predicted on the urban population, an anomaly he wants to address. “There is anecdotal evidence that some health outcomes for rural people are worse than for those in cities, but there is no hard data to support this,” he said. His cancer research experience could provide skills and knowledge that can help accumulate data on the state of rural health, but also assist should cancer treatment be extended to regional hospitals such as Dunstan in Central Otago. The rural immersion part of his medicine training took Wilson to work at Wairau Hospital and Kaikoura in Marlborough and rural GP practices in Hanmer Springs and Rotherham in North Canterbury. It confirmed his career choice was correct, in part because it ticked all the boxes he wanted ticked. He also found that being posted to smaller hospitals rather than at a large-base hospital, he was able to put into practice the theory he had learnt at university. “It was a good opportunity to get hands-on and develop my own skills, so I found myself more confident out there doing it and interacting with people,” he said. Some of those early-in-a-career tasks included suturing a badly cut leg and inserting lines and administering pain relief to a patient with a suspected broken back. In addition to working as a rural

GP, he is considering acquiring the skills for the next level of care to work in regional hospitals. “By having general research skills, it can apply across all fields of the health of the rural population, identify issues and be able to provide treatment or advocate for communities and get research funding,” he said. Part of Wilson’s future training could include having a Primary Response in Medical Emergency (PRIME) qualification, which will allow him to deliver emergency care and stabilise patients while waiting for an ambulance. It also reflects the flexibility and upskilling needed by rural health professionals. “With rural health medicine you have to treat anything that comes into the practice,” he said. “You either treat a patient or stabilise them so they can get to a base hospital. “It is also recognition of the fact rural communities are underserved and it takes a lot of skills to work in these practices.” His leadership role has highlighted to him the perilous state of the rural GP workforce. Surveys have shown 49% of NZ’s GPs intend to retire within the next decade; 39% of rural GP practices have vacancies and 46% of GPs in rural practices were trained overseas. “There is a massive looming crisis coming within the GP workforce,” he said. Foreign GPs are underpinning rural health but Wilson says they often work limited term locum contracts to provide temporary relief to short-staffed rural practices. That has a significant impact on the quality of care, as the turnover of GPs means patients are seen by different doctors with different ideas and approaches to treatment. “Having a sustainable rural workforce across all fields of nursing (or) physiotherapy, makes all the difference for patients,” he said. Wilson sees a solution in targeting potential graduates from rural high schools and colleges with information on health sector careers, opportunities and a pathway to study. “The evidence is that those who come from rural areas are most likely to go back to those areas, stay there and serve their communities,” he said. The NZRGPN is seeking funding from the Ministry of Health to take that message to rural high schools. The other required element is central support and funding for rural GPs, such as having sufficient staffing to evenly share the after-hours on-call requirement and adequate funding for fundamental services such as maternity, so rural people do not have to travel vast distances. Not long after Wilson started secondary school at John McGlashan College in Dunedin, he was asked to write down three work goals. He wrote: doctor, farmer and pilot. “If I work in a rural hospital I potentially could be involved in aerial transfer of patients. I also want to own a farm, so I could achieve all three,” he said.

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

DISTRACTION: Farm work is a pleasant distraction from Wilson Mitchell’s medical studies.

World

30 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Retailers told to ‘pay up’ RETAILERS have been urged to pay up if they want farmers to help them meet their net zero targets. The call came after Red Tractor announced it was planning to introduce new, voluntary modules on sustainability and worker welfare. The assurance scheme is developing the modules, which will bolt on to existing memberships, in order to “keep pace with mainstream market demands”, with many supermarkets now committed to emissions pledges. Chief executive Jim Moseley says the plan was to develop proposals which meet the needs of as many end customers as possible, to avoid a situation where retailers, brands and foodservice operators start to set their own sustainability agendas with different standards. But industry leaders have warned the modules would be unlikely to deliver higher farm gate prices. “There is market potential for an optional sustainability module, but there is a risk that once the module exists, all the retailers will want it, and I cannot see the mechanism for delivering a premium unless retailers gave shelf space for Red Tractor Standard and Red Tractor Sustainable,” National Sheep

CONCERNS: Farmers are concerned the new sustainability targets will not be supported by better farm gate prices.

Association chief executive Phil Stocker said. Sam Awdry, a beef and arable farmer from Wiltshire and member of The Farming Forum Grassroots Group, was also sceptical about the move, fearing it would start off as an optional extra and very quickly become compulsory for everyone. “To me, it reads that retailers want to reach net zero and want to use farming to do it for them without paying any extra by using Red Tractor as their auditing tool,” Awdry said. “Where is the benefit for the farmers in abovestandard levels? Know Your Mindset. Grow your influence If retailers want Programme run across two sessions: farmers to help Module 1: Online Zoom them reach carbon • Pahiatua - Tararua/Wairarapa neutral, then they Tuesday 27 July, 7.00-8.30pm need to pay up.”

Agrievents

• Invercargill (1) - Southland Monday 6 September, 7.00-8.30pm • Invercargill (2) - Southland Monday 6 September, 7.00-8.30pm • Lake Karapiro (1) - Waikato/Bay of Plenty Wednesday 22 September, 7.00-8.30pm • Lake Karapiro (2) - Waikato/Bay of Plenty Wednesday 22 September, 7.00-8.30pm Module 2: In person • Pahiatua - Tararua/Wairarapa Wednesday 11 August, 12.00-2.30pm • Invercargill (1) - Southland Tuesday 21 September, 12.00-2.30pm • Invercargill (2) - Southland Tuesday 21 September, 6.00-8.30pm • Lake Karapiro (1) - Waikato/Bay of Plenty Wednesday 29 September, 9.00-11.30am • Lake Karapiro (2) - Waikato/Bay of Plenty Wednesday 29 September, 12.30-3.00pm Light refreshments (lunch or supper) will be provided at the face-to-face workshops. Cost: $30 per person, covering both sessions To register: https://www.awdt.org.nz/applying/

Moseley also highlighted longerterm plans to tie the optional sustainability module into Defra’s Sustainable Farming Incentive (SFI), to allow Red Tractor farmers to take advantage of earned recognition and avoid the need for assessment to qualify for the SFI. The proposals were set out as Red Tractor issued its revised farm standards, which will apply from November. Launched in Farm Safety Week, some new standards, including a requirement for all farms with workers to have a written health and safety policy, have been introduced. Moseley also called on the NFU to lead an inquiry into the differences between Red Tractorassured grain and imported grain, with many growers concerned about having to meet standards, which overseas competitors do not. UK Farmers Guardian

UK to test African swine fever plan BRITAIN’S ability to contain and eliminate African swine fever (ASF) is being tested in a simulated outbreak of the disease. The UK-wide Exercise Holly involves officials from animal health bodies from all devolved regions in assessing the state of readiness in the event of an outbreak. The 24-hour virtual exercise started last week and will look at testing plans, instructions and the structures employed in managing an outbreak. Improvements will be recommended in a lessonslearned report that will be drawn up after the exercise is completed. “The risk of ASF arriving in the UK is ever-present and would have a devastating impact on our pigs and pig keepers if it ever reached our shores,” the UK’s four chief vets said in a joint statement. “We regularly test our contingency plans in this way to ensure that we are ready to respond to potential future disease outbreaks.”

PRIORITY: The initiative has been given extra significance after ASF was detected in a domestic pig herd in Germany for the first time on July 15.

Eustice denies threat to UK beef THE UK-Australia trade deal has come under fire in Parliament during an inquiry session on post-Brexit farm support arrangements. The free-trade agreement was overseen by Prime Minister Boris Johnson, who hailed the deal as a landmark in the post-Brexit era. But criticisms over the effect on the UK beef sector were

levelled at Defra secretary George Eustice during an Environment Food and Rural Affairs (Efra) committee inquiry session on agricultural transition schemes. Chair of the cross-party committee Neil Parish broke away from the inquiry theme to attack the deal which, he says, seemed to have been “done on a wing and a prayer”.

The UK eats one million tonnes of beef a year, and the government has just given away annual quotas for 125,000t of that to Australia, Parish said. “That is 10-15% of our market. Are you happy with giving this away?” he asked. “We still have New Zealand and other countries to negotiate with; are we going to

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Saturday 06/11/2021 – Sunday 07/11/2021 Marlborough A&P Show Horse classes, Livestock, Animal Nursery, Childrens Entertainment, Trade Exhibits. Town and Country Together Venue: A & P Park Blenheim For more infomation, phone 03 578 5822 www.marlboroughshow.co.nz Email: marlborough.show@xtra.co.nz Should your event be listed here? Phone 0800 85 25 80 or email adcopy@globalhq.co.nz

The National Pig Association (NPA) said it had been involved with the planning team and helped shape the exercise. “The exercise is really important to test our readiness and resilience,” chief executive Zoe Davies said. “The NPA will be using the scenarios played out … to test our own contingency plans and ensure that we are as ready as we can be.” The initiative has been given extra significance after ASF was detected in a domestic pig herd in Germany for the first time on July 15. German laboratory, the Friedrich-Loeffler-Institute (FLI), confirmed two farms were affected in the Brandenburg region, close to the eastern border with Poland. The Brandenburg and neighbouring Saxony regions have recorded more than 1200 cases in wild boar, but FLI stressed the cause of the domestic cases remained unclear. UK Farmers Weekly

FLAWED: The UK government has been accused of setting an unrealistic trade deal standard following its agreement with Australia.

give 10-15% to all of them?” But Eustice defended the deal, saying quotas included in the deal would protect beef producers for the next 10 years. A further five years after that would see protections continue before the UK sector was exposed to more open trade on beef. Beyond the 15-year period, he suggested the UK could terminate the deal altogether if British businesses were suffering. All trade agreements have a termination clause written into them, Eustice told the inquiry. The minister also speculated that Australian exporters would probably find the UK market challenging. There is strong retailer loyalty toward stocking British beef, which would protect homeproduced products, he said, adding Australia also serviced other markets such the US and may not even fill its annual UK quota.

FARMERS WEEKLY – July 26, 2021

Real Estate

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AONGATETE, BAY OF PLENTY An Amazing Sanctuary This 11.69ha property offers a tranquil quiet lifestyle and private boat access onto the Aongatete River, access across the river into Tauranga harbour and beautiful views to the river mouth and Kaimai Ranges. A stunning lifestyle block with no restrictive covenants, ready for your dream home or holiday cottages to be built. Consent plans are ready for a minor dwelling and draft concept plans for a main dwelling. Currently producing approximately 600 round bales of pasture silage annually. Temporary modular accommodation of good quality is available to be lived in for a limited period.

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Consistent 350 Cow Unit This well presented unit has a consistent production history of over 130,000kg MS and is located only 20 minutes from Hokitika township. With three well maintained homes you have great flexibility with management and staff options. The 28 aside herringbone shed has been modernised and is very well located at the centre of the property. A big effort has been placed on waterway management and with two stand off areas and an abundance of farm buildings this property really offers a great platform for your dairy farming goals. Available as a going concern for a 1 June 2022 settlement.

VIEW By Appointment Only

Austen Russell M 027 441 7055 E austen.russell@pggwrightson.co.nz Shari Ferguson M 027 266 6850 E shari.ferguson@pggwrightson.co.nz

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Tech & Toys

FARMERS WEEKLY – July 26, 2021

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WE ALREADY KNOW YOU MAKE GREAT CHOICES… YOU OWN A JOHN DEERE. You now have even more choice when buying parts. When it comes to parts for your John Deere equipment, we’re now giving you more choices. When buying selected parts, you now have options that best suit you and your equipment no matter the age. Whatever your budget you can trust you are getting the right part at the right price to keep your John Deere performing at its best.

Talk to your local dealer about which parts are right for you or visit JohnDeere.co.nz/Parts

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The system operates both multi-sector and multi-region, and is developed to be a sophisticated and efficient way to link the producer with the consumer, via the regulator, with verifiable data. The outcome is to bring complex information into a simple and elegant platform that allows for efficient resource management and planning, ensuring a producer is engaged with their own live plan, creating efficiencies on farm.

ANIMAL AND HUMAN healer, also manipulation on horses and dogs. 26th27th July Mid and South Canterbury / North Otago. 28th-31st July Dunedin / South Otago / Gore. 1st3rd August Invercargill / Otautau / Te Anau. 4th5th August Central Otago / Maniototo. 9th-15th August Canterbury. 16th21st August Kaikoura / Blenheim / Nelson. 23rd-4th September North Island. For more information phone Ron Wilson 027 435 3089.

PURINA PROPLAN WHATATUTU dog sale. Saturday 21st August. At Otara Station, 319 Whatatutu Road, Te Karaka, Gisborne. Sales start at 12 noon. Dosing clearance required. Enquiries and to enter go to: Whatatutu Dog Sale Facebook page.

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

MyEnviro is based in Hawke’s Bay, with the business operating throughout the country. There is now an opportunity for Farm Environmental Planner(s) to join the team in Hawke’s Bay and/or other regions. For more business information on MyEnviro please follow this link www.myenviro.co.nz

CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com

THE OPPORTUNITY… MyEnviro seek to appoint an active team member(s) who will contribute to their philosophy of exceeding customers’ expectations, as this is central to everything they do. The base role is to develop and contribute in the Farm Environmental Management Planning space including pitching for the work and developing lasting credible relationships throughout the community.

ATTENTION FARMERS

At MyEnviro an individual may be the key contact, however they are part of a collaborative approach to servicing the customer and will utilise the relevant skills within the team to provide the very best outcomes. Each team member is required to share information internally and has accountabilities within their positions, which they are trusted to deliver on.

25/35c PER KG dags fadges/bales. Replacement woolpacks. PV Weber Wools. Kawakawa Road, Feilding. Phone 06 323 9550.

The industry has a challenge in supporting farmers to get their environmental planning work done and MyEnviro has made a commitment to assist in the delivery through qualified people and smart systems. They want to engage with those who want to make a difference, develop a personal and business brand and deliver to the industry.

CALF TRAILER MATS SUREFOOT MAT 1.5m x 1m x 24mm $99ea + freight and gst. Phone 0800 686 119.

A BIT ABOUT YOU… Involvement in the MyEnviro business will expose you to cuttingedge technology, making you more efficient and enabling you to deliver to the customer on time and beyond specification. A unique blend of individual relationships, team skills and the most sophisticated system (MyEnviro’s platform) will result in absolute customer satisfaction and the rewards that come with it.

DOGS FOR SALE 4-YEAR-OLD Huntaway. Broken in, very good nature, bark. Suit a youth. Phone 027 243 8541. NZ BIGGEST SELECTION. Deliver NZ Wide. www. youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

We invite applications from those who have relevant skills in the farm environmental planning process; however the key competency is attitude. Nutrient management, GHG advice, carbon advice and farm systems advice are all components in this business model. We have the capacity to bring an individual(s) into the business with some or all of these skills; a higher skill level will fast track your induction into the MyEnviro platform.

DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195. BUYING DOGS NZ Wide. email: mikehughesworkingdogs@ farmside.co.nz 07 315 5553.

FARM MAPPING SIMPLIFY YOUR farm planning with practical, affordable and accurate maps from www. farmmapping.co.nz – contact us for a free quote.

FOR SALE BALAGE $70 PER round. Horowhenua. Phone 027 567 7930. CONCRETE CULVERT PIPES. Farm grade pipe stocked in Taupo. 450mm & above. Call Wayne for more info. 027 405 6368.

GIBB-GRO GROWTH PROMOTANT PROMOTES QUICK PASTURE growth. Only $6+gst per hectare delivered. 0508-GIBBGRO [0508 442 247] www. gibbgro.co.nz. “The Proven One.”

GOATS WANTED

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

GOATS WANTED

PUMPS

GOATS WANTED. All weights. All breeds. Prompt service. Payment on pick up. My on farm prices will not be beaten. Phone David Hutchings 07 895 8845 or 0274 519 249. Feral goats mustered on a 50/50 share basis.

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

HAY FOR SALE SHED STORED SQUARES $75+gst and rounds. Baleage $75+gst. Unit loads available. Top quality. Phone 021 455 787.

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

LEASE LAND WANTED

WANTED TO BUY

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. RED DEVON BULLS. Waimouri stud, Feilding. Phone 027 224 3838. RED DEVON CATTLE. Heifers and bulls. Also Wiltshire sheep. Taranaki. Phone 022 151 4344.

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SAWN SHED TIMBER including Black Maire. Matai, Totara and Rimu etc. Also buying salvaged native logs. Phone Richard Uren. NZ Native Timber Supplies. Phone 027 688 2954. SINGLE CRUTCHING trailer. Phone Vanessa 022 175 6778. Manawatu but will travel for pick up.

FEED TROUGH TRAILERS

LEASE LAND WANTED for dairy grazing. Bay of Plenty. Phone 027 389 8258.

LIVESTOCK FOR SALE

WANTED TO LEASE

Welded marine alumininum troughs

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Freephone 0800 30 30 63

sales@transtak.co.nz www.transtak.co.nz

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MyEnviro is a technical advisory business that has developed an award-winning platform to deliver live and fully digitised Farm Environmental Management Plans to its customers across New Zealand’s primary sector. Recently named the winner of the Hawke’s Bay Primary Sector Innovation Award 2021, the MyEnviro platform is used by the team to encapsulate their environmental planning, nutrient management and farm system skills.

DOGS FOR SALE

Heavy duty long lasting Ph 021 047 9299

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Ph 028 461 5112 • Email: mowermasterltd@gmail.com

ON OFFER… This Farm Environmental Planner position(s) presents a chance for the appointee(s) to showcase their skills and utilise the vast knowledge base within the current team, to deliver excellent customer outcomes. The position(s) will work with some autonomy yet within the customer care values. Your terms of engagement with MyEnviro are negotiable and will be structured to suit both parties to ensure a longstanding relationship by adding to both your and the MyEnviro brand.

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Farm Environmental Planner(s)

ANIMAL HANDLING

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EARMARKERS

BIRDSCARER DE HORNER HOOF TRIMMER

FURTHER INFORMATION… For more information or to apply please visit www.ruraldirections. co.nz or give the Rural Directions team a call on 06 871 0450 for a confidential chat (Ref#756394).

T H IN K PRE BU IL T

RECRUITMENT & HR Register to receive job alerts on www.ruraldirections.co.nz

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Due to border restrictions, we may only be able to consider Job Seekers currently residing in New Zealand with full work eligibility, or NZ citizens/residents returning home in 2021.

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Applications close Sunday 1st August 2021.

NEW HOMES SOLID – PRACTICAL

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Farmers Weekly delivered each week to over 77,000 rural letter boxes. All ads in Primary Pathways go online to FB Jobs, (7000 monthly page views) and FaceBook - Primary Pathways Aotearoa, (current followers over 6.4k). To list your vacancy, training programme or education opportunity:

Phone 06 323 0765 Email classifieds@globalhq.co.nz

Call or email us for your free copy of our plans Email: info@ezylinehomes.co.nz Phone: 0800 399 546 (EZYLINE) Web: www.ezylinehomes.co.nz

(Obtaining the best profits for our customers) Farmers/Woodlot owner Tired of waiting for someone to harvest your trees?

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WILTSHIRE

MALE or EWES 34-48kg

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R1 YR FRSN BULLS 180-250kg AUT FRSN HEREFORD HEIFERS 100kg

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STOCK REQUIRED STORE LAMBS

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R2 YR BULLS 420-480kg

Ross Dyer 0274 333 381

SALE TALK Not so long ago when the British Empire was a little larger, Prince Charles was asked if he would inspect the military of the small colony Banglazi. The Prince, always willing to please and probably thinking it would be a nice little break, accepted. Two weeks later the Prince was on the parade grounds of the proud but tiny nation. All the army personnel were there in their dress uniforms looking very smart indeed. Charlie too was dressed up but instead of a peaked cap he was wearing a Davey Croket hat tail. The Dignitaries were somewhat puzzled by this but said nothing.

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THURSDAY 5TH AUGUST 2021 12 NOON 1145 Cattle comprising: 50 x 2Yr CharX & AngX Steers 375 x 1Yr PB Angus Steers 85 x 1Yr PB Angus Heifers 195 x 1Yr Char/Angus Steers 40 x 1Yr Sim/Angus Steers 120 x Hfd/Frsn Steers 16 x 1Yr Char/Frsn Steers 10 x 1Yr Angus/Frsn Heifers 17 x 1Yr PB Hfd Steers 15 x 1Yr ¾ Hfd Steers 86 x 1Yr Ang/FrsX Steers 15 x 1Yr SimX Steers 15 x 1Yr ¾ Hfd Heifers 10 x 1Yr PB Hfd Heifers 10 x 1Yr Hfd/FrsX Heifers 37 x 1Yr Ang/FrsX Heifers 10 x 1Yr SimX Heifers SPECIAL ENTRIES W Cleave & K Taitoko 50 x Top 2Yr Char-Hfd/FrsnX & Ang-Hfd/Frsn Strs K&P Shea 130 x 1Yr PB Angus Steers 50 x 1Yr PB Angus Heifers Diamond Creek Farm 195 x 1Yr Char/Ang Steers (330-370kg) 50 x 1Yr PB Angus Steers Waiteka Station 80 x 1Yr PB Angus Steers 30 x 1Yr PB Angus Heifers C Jowsey & A Hartstone 40 x 1Yr PB Angus Steers 40 x 1Yr Sim/Angus Steers Glenmoerangi Station 45 x R1Yr PB Angus Steers 45 x R1Yr PB Angus Heifers 25 x R2Yr PB Angus Steers PJ Neal 70 x 1Yr Hfd/FrsX Steers Seaton Farm 17 x 1Yr PB Hfd Steers 66 x 1Yr Ang/FrsX Steers 20 x 1Yr Hfd/FrsX Steers 10 x 1Yr Hfd/FrsX Heifers 17 x 1Yr Ang/FrsX Heifers Bicheno Cattle Co. 15 x 1Yr ¾ Hfd Steers 15 x 1Yr ¾ Hfd Heifers The above lines are annual drafts including PB Angus (Angus Pure Tags) Cattle Sept/Oct born, sired by top Angus Bulls from Kaharau, Rangitira, Matauri, Twin Oaks, Rolling Rock & Waitangi Studs. All entries are highly recommended for their shifting abilities.

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Livestock Noticeboard

FARMERS WEEKLY – July 26, 2021

MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Mel Croad

Suz Bremner

Reece Brick

Nicola Dennis

Sarah Friel

Caitlin Pemberton

Deer

Sheep

Cattle BEEF

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.00

5.45

NI lamb (17kg)

8.90

8.80

7.20

NI Stag (60kg)

5.50

6.10

NI Bull (300kg)

5.95

5.90

5.45

NI mutton (20kg)

6.40

4.95

SI Stag (60kg)

5.60

6.10

NI Cow (200kg)

4.40

4.50

4.15

SI lamb (17kg)

8.60

8.40

6.95

SI Steer (300kg)

5.60

5.50

4.85

SI mutton (20kg)

6.45

4.55

SI Bull (300kg)

5.55

5.35

4.70

Export markets (NZ$/kg)

SI Cow (200kg)

3.20

4.25

3.65

UK CKT lamb leg

12.01

12.08

9.30

Slaughter price (NZ$/kg)

Export markets (NZ$/kg) 9.13

9.07

8.03

US domestic 90CL cow

9.13

8.83

7.88

North Island steer slaughter price 6.50

4.50

8.0

South Island lamb slaughter price

Oct

Dec

6.0 Oct

4.00

Dairy

7.0

Jun

Aug 2020-21

Dec 5-yr ave

Feb

Apr 2019-20

Jun

MILK PRICE FUTURES

Apr

Jun

Aug

2019-20

2020-21

Fertiliser

Aug 2020-21

FERTILISER Last week

Prior week

Last year

Coarse xbred ind.

2.77

2.73

1.88

37 micron ewe

2.75

2.10

30 micron lamb

Last week

Prior week

Last year

Urea

799

572

Super

339

294

DAP

1055

750

Grain

Data provided by

Feb

5-yr ave

4.50 Apr

8.0

5.0

7.0

(NZ$/kg)

2019-20

9.0

6.0

WOOL

Feb

South Island stag slaughter price

10.0

5.00

Dec

7.0

11.0

5.50

5-yr ave

8.0

5.0

Oct

9.0

6.0

$/kg CW

9.0 $/kg CW

$/kg CW

5.00

6.00 $/kg CW

10.0

5.0

South Island steer slaughter price

Last year

7.0

5.50

6.50

Last week Prior week

North Island stag slaughter price

11.0

6.0

4.00

NZ average (NZ$/t)

Top 10 by Market Cap

CANTERBURY FEED WHEAT

Company

YTD High

Fisher & Paykel Healthcare Corporation Ltd

31.65

36.55

YTD Low 27.1

5.35

9.94

5.04 6.65

8.50

420

Meridian Energy Limited (NS)

8.00

410

Auckland International Airport Limited

7.3

7.99

Mercury NZ Limited (NS)

6.84

7.6

5.79

Spark New Zealand Limited

4.77

4.97

4.37

7.50

400

$/tonne

$/kg MS

Slaughter price (NZ$/kg)

8.0

6.00

7.00 6.50

390

6.00

380

5.50

Jul-20

Sep-20

Nov-20 Jan-21 Sept. 2021

Mar-21 May-21 Sept. 2022

Nearby contract

Prior week

vs 4 weeks ago

WMP

3705

3725

3835

SMP

2835

2830

2825

4140

4100

4050

Butter

3500

3460

3430

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

7.61

410

7.61

12.5

Contact Energy Limited

8.26

11.16

6.6

Fletcher Building Limited

7.4

7.99

5.67

The a2 Milk Company Limited

7.31

12.5

5.42

Listed Agri Shares

5pm, close of market, Thursday

Company

YTD High

YTD Low

ArborGen Holdings Limited

0.325

0.335

0.161

The a2 Milk Company Limited

7.31

12.5

5.42

Comvita Limited

3.36

3.6

3.06 13.75

15.5

400

5.15

3.61

Foley Wines Limited

1.6

2.07

1.58

390

Livestock Improvement Corporation Ltd (NS)

1.35

0.81

Marlborough Wine Estates Group Limited

0.26

0.65

0.24

New Zealand King Salmon Investments Ltd

1.45

1.72

1.43

PGG Wrightson Limited

3.47

3.65

3.11

Rua Bioscience Limited

0.42

0.61

0.37

Sanford Limited (NS)

4.78

5.23

4.3

Scales Corporation Limited

4.7

5.09

4.22

Seeka Limited

5.05

5.68

4.66

Synlait Milk Limited (NS)

3.76

5.24

2.85

T&G Global Limited

2.91

2.85

S&P/NZX Primary Sector Equity Index

13947

15491

12865

S&P/NZX 50 Index

12721

13558

12085

S&P/NZX 10 Index

12445

13978

11776

3900

Aug-20

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

400

3800

350 $/tonne

3500

64.85

15.99

3.72

WAIKATO PALM KERNEL

3600

13.09

14.14

Jun-20

3700

77.4

Ryman Healthcare Limited

Delegat Group Limited

370

WMP FUTURES - VS FOUR WEEKS AGO

Mainfreight Limited

Fonterra Shareholders' Fund (NS)

380

* price as at close of business on Thursday

3400

Aug-20

420

$/tonne

AMF

7.61

Jun-20

CANTERBURY FEED BARLEY

Last price*

Milk Price

370

Jul-21

DAIRY FUTURES (US$/T)

US$/t

Last year

North Island lamb slaughter price

9.0 $/kg CW

US imported 95CL bull

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

William Hickson

Ingrid Usherwood

300 250

Aug

Sep Oct Latest price

Nov 4 weeks ago

Dec

200

Jun-20

S&P/FW PRIMARY SECTOR EQUITY

Aug-20

Oct-20

Dec-20

Feb-21

Apr-21

Jun-21

13947

S&P/NZX 50 INDEX

12721

S&P/NZX 10 INDEX

12445

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

Analyst intel

WEATHER

Overview A messy weather pattern this week, but it’s mostly dominated by large low pressure systems in the Southern Ocean area and a big gale force belt of westerlies blowing across Australia. In fact, Aussie has gales at times from coast to coast (Perth to Sydney) along the entire southern coast, which then fans out to reach New Zealand too. Showers and westerlies ease on Wednesday in NZ, but it’s only briefly. By Thursday rain clouds return to western NZ and northern regions as a mild northerly flow kicks in, with downpours and milder winds going into this weekend. Next week looks heavily westerly driven, again backing WeatherWatch’s claims that an early spring pattern is now somewhat developing.

Low confidence drives kill rate

14-day outlook It’s too early to declare winter over, but it’s not too early to say we can see a spring pattern forming. By this we mean more mild days in the mix, fewer southerlies, fewer frosts and more windy westerlies and northerlies, which is precisely the forecast for this week but also again for next week, the first full week of August. Late next week will cool down a little as sou’westers move in, but not southerlies at this stage.

Sarah Friel sarah.friel@globalhq.co.nz

D Highlights

Soil Moisture 22/07/2021

Wind

Northerly quarter, possibly followed by westerly gales on Monday and Tuesday. Northerly quarter gales possible in exposed places on Thursday, although mostly through the Southern Alps. Strong westerly quarter winds (W and SW) mid to late next week. Source: NIWA Data

Temperature

7-day rainfall forecast Nelson is back in the firing line (and Tasman and parts of Marlborough) for the start of this week, with the bulk of the rain on Monday then easing into Tuesday. But it won’t be the last, with more rain for northern and western facing regions of both islands likely as we head into August. This matches our ClimateWatch monthly outlook for July, which said rain clouds would return to NZ (also, our August video & outlook will be out this coming Friday at RuralWeather.co.nz). 0

While we do have some colder injections in the mix, the overall weather pattern is windier, more westerly-driven and wetter, which bodes well for a slight increase in temperatures, especially those in the north and east of NZ.

Highlights/ Extremes

100

200

400

Nelson and Tasman region exposed to further slips and flooding, but risks ease into Tuesday. More wind and rain return to parts of NZ over the coming week. Slightly milder but wetter too. Eastern areas remain fairly dry, but some spillover rain.

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

EER farmers’ confidence has been damaged by market uncertainty. While there are positive indications from export markets, which support glimmers of optimism in the industry, processors are still proceeding with caution regarding spring contracts. Last week, the New Zealand stag farm gate price was $5.57/kg, about $3/kg below the five-year average. The market is $5.65/ kg below this time in 2018, when the farm gate operated at $11.20/kg. Unfortunately, Deer Industry NZ (DINZ) are not expecting a big turnaround for prices this September, when the market normally peaks for the traditional game season. Indications from processors suggest this season’s market peak will not be much different to year-ago levels. Last year, the North Island farm gate peaked at $6.20/kg in September, while the South Island price tapped out at $6.65/kg in October. Limited volume contracts offered more to suppliers but were only slightly above $7/kg. For reference, the NZ five-year average peak for the spring market is $9.70/kg. Despite poor returns in 2020, there were some encouraging signs of demand. Over 4400 tonnes of venison left NZ shores over August-November last year, the highest export total for that period in the past five years. This success is encouraging processors to increase capacity in 2021 chilled contracts to meet demand. However, it’s worth remembering that restaurant shutdowns and rolling lockdowns throughout Europe severely impacted higher-value chilled export volumes last year. Chilled venison only made up 24% of 2020 exports, the lowest contribution in the past five years. Paired with a five-yearlow average export value of $12.34/kg,

it’s not surprising that the farm gate has stagnated. Farmers are insulated from the downfall of venison prices by finishing lambs or cattle alongside deer. Unlike venison prices, lamb farm gate prices are at a five-year high for this time of year, with a national indicator of $7.80/kg. Prime and bull prices are on par with the five-year average, with instances of over $6/kg being paid in the North Island. Lamb and beef farm gate prices are supported by year-to-date average export values being 69c/kg and 14c/kg above average respectively.

While there are positive indications from export markets, which support glimmers of optimism in the industry, processors are still proceeding with caution regarding spring contracts.

While stronger farm gate prices for other species are a bonus for farmers committed to venison farming, it is leading some farmers to forgo deer to increase beef or lamb production. This is evident in higherthan-average hind kill numbers. In the year-to June, 100,563 hinds were processed. The South Island contributed 75% of this total and overall, slaughter is 8280 above year-ago levels and 17.7% above the five-year average. This hefty kill is concerning some processors and exporters, especially given the efforts being made to establish venison in new markets. In the past three years, exports have become more evenly distributed between Europe and the US, and China has entered the mix with a taste for venison. This, paired with marketing campaigns aimed at home cooks, is increasing venison’s export profile and demand, meaning we could find ourselves short-stocked if farmers continue to liquidate stock.

SALE YARD WRAP

What are the lamb prices up to? The roller coaster of lamb prices continues and while they did not bottom out at any levels of concern, they had been on a downward trajectory since record heights were reached in early July. This was the expected trend given those levels were not sustainable against spot market schedules, but the question is will they increase as supply trends down to the close of the old season, or will we continue to track at the current, more sustainable levels? Prices this week have improved at the larger selling centres as more buyers return to the rails, but it seems unlikely that those record levels will be reached again for same-type lambs. But those who have been in the industry long enough know that nothing should come as a surprise and as the end of the old-season supply draws near, there may be a scramble to secure those last numbers. Average lamb weights at sale yards have been creeping up as sellers seek higher returns at auction for finished lambs, but with the tables turning the heavier lambs will likely now pick up a one-way ticket to the processors and that should stabilise the average weights around normal levels for the time of year. NORTHLAND Wellsford store cattle • R2 Angus-Friesian steers, 291-533kg, mostly improved to $2.83$2.93/kg • R2 Hereford-Friesian heifers, 370-459kg, softened to $2.63-$2.72/ kg • Top R1 Hereford-Friesian steers, 176-193kg, strengthened to $3.88-$3.92/kg Just on 650 cattle were yarded at WELLSFORD last Monday and most traded on a steady to improved market. R2 Angus-cross steers, 416-515kg, firmed to $2.82-$2.87/ kg. Hereford-Friesian, 381-521kg, returned a mainly steady $2.83-$2.96/kg. R2 Angus-Friesian heifers, 387-391kg, improved to $2.53/kg. R1 Angus-Friesian steers, 215kg, firmed to $3.26/kg while Speckle Park, 200-263kg, eased to $2.90-$2.97/kg. Angus-Friesian heifers, 180-218kg, firmed to $2.71-$2.78/kg while Angus-cross, 200-231kg, varied from $2.92/kg to $3.15/kg. Read more in your LivestockEye.

AUCKLAND Pukekohe cattle • Good R2 steers fetched $2.84-$2.91/kg, $1190-$1450 • R2 heifers made $2.54/kg to $2.87/kg, $1030-$1250 • Boner cows achieved $1.84/kg, $1130 Prime steers lifted to $2.84-$2.91/kg, $1500-$1810 at PUKEKOHE on Saturday 17th and prime heifers $2.61$2.72/kg, $1360-$1695. Small weaner steers earned $3.00/ kg to $3.67/kg, $370-$455 and heifers $2.11/kg to $2.27/kg, $470-$510.

COUNTIES Tuakau sales • Hereford-Friesian steers, 395kg, made $3.11/kg • Prime heifers, 500-580kg, sold at $2.89/kg to $3.06/kg • Top prime lambs managed $228 TUAKAU drew another big yarding of 900 store cattle last Thursday, Carrfields Livestock agent Karl Chitham reported. Heifer prices eased but steers held firm, with most 300-400kg Hereford-Friesian making $2.70/kg to $3.00/kg and 217kg Hereford-Friesian, $725. In the heifer section, 400kg Hereford-Friesian made $2.70/kg and 340370kg realised $2.44/kg to $2.68/kg, with 200kg HerefordFriesian at $520. Wednesday’s prime market was steady. Heavy steers earned $3.03-$3.08/kg and medium, $2.92$3.01/kg. Heifers, 460-500kg, fetched $2.76-$2.84/kg and vetted-in-calf Angus cows, 580kg, $2.32/kg. Heavy Friesian cows, 490-560kg, managed $1.82/kg to $2.00/kg and lightmedium, $1.51/kg to $1.67/kg. Medium-good prime lambs sold at $178-$189 on Monday and stores, $103-$163. Top prime ewes reached $221, medium-good returned $164$189 and light, $115-$133.

WAIKATO Frankton cattle 20.7 • Better R2 beef-dairy steers held at $2.86-$2.99/kg • R2 Angus-Friesian heifers, 418-471kg, realised $2.78-$2.83/kg • Good R1 Hereford-Friesian steers, 192kg, held at $3.93/kg Just under 650 store cattle were penned by PGG Wrightson at FRANKTON last Tuesday. Older cattle and those with quality sold on a mainly steady market, with lesser types harder work. R2 Angus and Angus-cross heifers, 372-373kg, earned $2.75-$2.80/kg while Angus-Friesian, 328-360kg, traded at $2.36-$2.44/kg. Hereford-Friesian, 345-416kg, realised $2.70-$2.83/kg and better red factor lines firmed to $2.82-$2.85/kg. All R2 bulls, 299-326kg, returned $2.73-$2.79/kg. R1 Angus-Friesian steers, 152274kg, eased to $2.80-$2.92/kg with same breed bulls, 162199kg, at $445-$505 for varied $/kg. Friesian bulls improved with 192kg up to $2.86/kg and 270-305kg, $2.48/kg to $2.69/ kg. Autumn-born weaner Hereford-Friesian steers, 166kg,

fetched $590 and 111-112kg returned $470-$480. Prime steers, 620kg, held at $3.06/kg while heifers, 448-588kg, softened to $2.78-$2.83/kg. Better boner Friesian cows, 591kg, eased to $1.88/kg. Read more in your LivestockEye. Frankton cattle 21.7 • R2 Hereford-Friesian steers, 384-425kg, held at $2.80-$2.83/kg • R1 Gelbvieh-cross heifers, 203-281kg, earned $2.62-$2.76/kg • Autumn-born weaner Hereford-Friesian bulls, 98kg, topped their section at $475 Store cattle throughput came back to 341 head last Wednesday at FRANKTON for New Zealand Farmers Livestock and younger cattle made up the lion’s share. Most sold in line with quality and type. R2 Angus-cross steers, 415kg, held at $2.77/kg and R1 Angus-cross heifers, 242kg, matched their older brothers at $2.77/kg. Hereford-dairy, 131-155kg, earned $2.60-$2.61/kg. Friesian bulls, 164kg, reached $3.11/kg and 250kg, $2.60/kg. Autumn-born weaner Hereford-Friesian steers, 139kg, realised $540 and same breed heifers, 88-95kg, firmed to $380-$400. Friesian bulls, 100-101kg, were consistent at $410-$420. Prime throughput increased to 128 head. Angus-cross steers, 453kg, pushed to $3.11/kg and beef-dairy, 593-670kg, fetched $2.99-$3.04/kg. Angus heifers, 428-466kg, held at $2.83-$2.90/kg. Heavier Friesian bulls, 603kg, reached $2.99/kg with the balance, 485-540kg, at $2.80-2.90/kg. Read more in your LivestockEye.

KING COUNTRY Te Kuiti sale • Mixed sex store lambs made $132 • Heavy prime lambs earned $206 and the balance mostly $170$186 • R23 Angus-Friesian heifers, 343kg, sold to $2.55/kg • R1 Belgian Blue heifers, 250kg, achieved $700, $2.80/kg There was a medium yarding of sheep at TE KUITI last Wednesday. Store lambs were of lesser quality, though lambs sold well considering. Better ewe lambs made $154, males $148 and ram lambs $150. Lighter lambs were more typically around $120-$128. Prime 2-tooth ewes were firm with the top end to $186. Scanned-in-lamb 4-tooth to 5-year ewes fetched $150-$162. In the store cattle pens, R3 Angus steers, 617kg, made $2.94/kg and Hereford-Friesian $2.82/kg. A good line of R2 Angus-Friesian steers, 444kg, earned $2.81/kg and the balance around $2.63-$2.71/kg. R1 Simmental-cross steers, 277kg, sold well to $1040, $3.74/kg with 243-258kg at $915-$930.

BAY OF PLENTY Rangiuru cattle and sheep • Prime steers and heifers over 500kg were commonly $3.00-$3.10/ kg • R2 Hereford-Friesian steers, 370-491kg, traded at $2.87-$2.95/kg A moderate yarding of cattle had something for everyone at RANGIURU last Tuesday. Charolais-Friesian, 418kg, accounted for the lion’s share of the R2 heifers and fetched $2.68/kg, although the most money was paid for a small pen of 450kg Hereford-Friesian that earned $2.89/kg. The R1 pens housed a mixture of breeds and quality. The only steer pen was 188kg Charolais that made $500 while bulls were often either traditional or Hereford-Friesian, 208241kg, that fetched $510-$660. Hereford-Friesian stood out in the heifer pens, particularly a 211kg pen that made $660. Sheep throughput was low and prime lambs were the main highlight and traded at $116-$193. Read more in your LivestockEye.

TARANAKI Taranaki cattle • Prime steers sold well to $3.08-$3.13/kg • Prime heifers achieved $3.02-$3.05/kg

• R2 Hereford-Friesian heifers, 480-540kg, lifted to $2.90-$2.96/kg • R1 Friesian bulls, 210-240kg, made $2.71/kg The market at TARANAKI last Wednesday was robust and was helped by heavier weights. R2 steers were carrying a bit more condition which improved the dairy-beef average to $2.94/kg though heavier Hereford-Friesian, 516-522kg, was able to reach $3.02-$3.07/kg. The R1 dairy-beef average lifted to $735, $3.33/kg and heifers to $575, $2.63/kg. A handful of cows varied in price, but better mixed-age Friesian-cross realised $1240, $2.00/kg and vetted-in-calf Jersey-cross, $1360. Read more in your LivestockEye.

HAWKE’S BAY Stortford Lodge prime cattle and sheep • Heavy mixed-age ewes held at $182.50-$195 • Medium mixed-age ewes maintained levels of $140-$150 • Top male and ram lambs pushed to $218-$226 • Top mixed-sex lambs held at $192-$210 Ewe throughput tallied under 1000 head at STORTFORD LODGE last Monday and most traded on a steady market. A few very big mixed-age ewes fetched $209-$217. Very good types held at $169-$172.50, as did the better end of good types at $159-$165. Light-medium to medium ewes earned $121-$150. More two to four-tooth ewes were offered and good to very good types realised $156-$179. Prime lambs numbered 341 and were quickly absorbed. The balance of very heavy ram and mixed-sex lambs realised $173.50-$187. Limited ewe lambs improved with heavy to very heavy up to $165-$205 and six top lambs pushed to $218. No cattle were presented. Read more in your LivestockEye. Stortford Lodge store cattle and sheep • Top R3 beef-cross steers, 490-560kg, firmed to $2.99-$3.13/kg • R1 Charolais-cross heifers, 247-278kg, sold well at $840-$935, $3.37-$3.40/kg • Heavy male lambs rebounded to $168-$189 • Good ewe lambs lifted $5-$10 to $150-$162 Farm sales continued to push out store cattle and 465 were offered at STORTFORD LODGE last Wednesday. Most came from five vendors and a highlight in the steer pens was R2 Angus and Angus-Hereford, 480kg, at $3.31/ kg. Heifer prices are still taking a while to warm and the better R2 traditional, beef-cross and Hereford-Friesian achieved $2.69-$2.78/kg. A consignment of Hereford, 367410kg, were off that pace at $2.55-$2.59/kg, but in contrast Charolais-cross, 382kg, reached $2.89/kg. A consignment of Angus and Angus-Hereford, and South Devon-cross cows, vetted-in-calf to a Simmental bull, were consistent at $2.21$2.23/kg. After two softer weeks the lamb market firmed in general, though medium ewe lambs came back to $102$120. Good males were steady to firm at $162-$170 and the top pen reached $189 while ewe lambs sold to $188. Good mixed-sex returned $130-$152. Perendale-cross 2-tooth ewes, scanned 160% to Perendale, varied from $186 to $226 and a pen of 100 five and 6-year Romney-Wiltshire ewes, scanned 170% to Wiltshire, sold well at $220. Read more in your LivestockEye.

MANAWATU Feilding prime cattle and sheep • Hereford-Friesian heifers, 543kg, earned $2.88/kg • Angus and Hereford bulls, 750-800kg, fetched $3.06-$3.11/kg • Run-with-bull Simmental cows, 810kg, traded at $2.42/kg • Friesian cows, 540-613kg, made $1.73-$1.85/kg with a few higher yielding pens $2.11-$2.17/kg The top pen of lambs achieved $253 at FEILDING last Monday. Other very heavy lambs sold at $188-$232 while half of the line-up were heavy pens that traded at $156$188. Ewes also met a good buying bench and the core of the offering were good and medium types that sold inside a range of $137-$178 while very heavy lines managed $186-$239. Monday marked the beginning of the dairy and

FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021

STANDING PROUD. These Romney ewe lambs were a great example of the breed and sold for $188 at Stortford Lodge on Wednesday.

dairy-beef calf sale season and buyers were competitive for Belgian Blue-cross bull calves which proved to be the highlight at $400. Hereford-Friesian bull calves earned $250-$275 while Friesian returned $150-$220. Read more in your LivestockEye. Feilding store cattle and sheep • Capital stock traditional cows, 565-585kg, were $1270-$1310 • R2 South Devon steers, 500-540kg, sold for $3.25-$3.40/kg • R1 Angus steers, 255-290kg, made $3.50-$3.65/kg • Store male lamb average eased to $163 • Store ewe lamb average held at $151 The 1200 store cattle mainly sold to a steady market at FEILDING. Larger lines of 425-540kg traditional R2 steers were $3.20-$3.25/kg, with dairy-cross types around $3/ kg. R2 bulls, 400-485kg, were $2.85-$2.95/kg. R2 straightbeef type heifers were mainly $2.80/kg. R1 traditional steers, 175-230kg, made $3.85-$4.00/kg while 205-225kg R1 Friesian bulls sold at $2.90-$3.05/kg. R1 straight-beef heifers were mainly $3.30-$3.50/kg at all weights. The market was steady-to-weaker on the 9000 store lambs. Heavy male lambs were $170-$185, good types $160-$170, mediums $135-$155, and the lighter end $115-$130. For the ewe lambs the market was at $165-$180 for the heavy and large lines, good types were typically $150-$160, mediums $135-$150, and $110-$130 covered much of the rest. Some triplet-bearing ewes were $227-$230, but the rest of the market was down roughly $15-$20, mostly $165-$200. Read more in your LivestockEye Rongotea cattle • R3 Speckle Park bulls, 610kg, earned $2.95/kg • Better R2 bulls made $2.91/kg to $3.02/kg • Friesian boner cows, 470-543kg, strengthened to $1.81/kg to $1.99/kg • Speckle Park-cross feeder calf heifers achieved $80-$285 • Better R1 bulls sold to $3.06-$3.14/kg Throughput lifted for heavier cattle at RONGOTEA last Tuesday. Better R2 steers realised $2.59-$2.64/kg and R2 heifers $2.25-$2.32/kg. R1 steers typically earned around $2.54-$2.58/kg though the top end of Hereford-Friesian steers improved to $3.21/kg. R1 Hereford-Friesian heifers, 184-199kg, varied from $3.02/kg to $3.15/kg. Autumn-born weaner Hereford-Friesian steers realised $400-$540, and 128kg heifers $460.

CANTERBURY Canterbury Park cattle and sheep • Prime Hereford and exotic-cross steers, 720-760kg, achieved $3.15-$3.19/kg • Other steers over 500kg managed $3.04-$3.09/kg regardless of breed

• Heavy store lambs made $141-$160 while medium pens were typically $96-$136 • One prime wether fetched $330 Prime and store cattle met solid demand at CANTERBURY PARK last Tuesday. Most prime heifers were either 445-570kg Angus that made $3.00-$3.06/kg, or 435645kg Hereford-Friesian that fetched $2.86/kg to $3.01/ kg. In the store pens many R3 Angus and Hereford-Friesian steers, 409-444kg, achieved $2.88/kg to $3.00/kg. R2 Angus steers, 370kg, and 372kg Hereford-Friesian earned $2.84/ kg and $2.85/kg respectively while dairy-beef types, 369388kg, managed $2.54-$2.63/kg for the most part. Top of the R1 section was a big pen of 184kg Hereford-Friesian steers that earned $525. Very heavy prime lambs fetched $200-$213, followed by plenty of good and heavy types that fetched $140-$199. The best ewes earned $275-$300 while the rest of the very heavy and heavy pens made $184-$216. The balance of the yarding was evenly distributed from $110 to $180. Read more in your LivestockEye. Coalgate cattle and sheep • Prime Hereford-Friesian steers, 435-630kg, firmed to average $3.06/kg • Good yielding prime heifers, 510-670kg, firmed to $2.96-$3.04/kg • Prime lamb prices firmed, and most made $150-$197 • 80% of the store lambs traded at $130-$149 • Nearly 300 mixed-age Romney ewes, scanned 179% to a Romney ram, sold for $228 Despite the wet and cold weather, the atmosphere at COALGATE last Thursday was very positive in both sections of the sale. Prime cattle sold on a stronger market and very few steers sold outside the $2.92-$3.10/kg range. That included an offering of Friesian, 486-513kg, which made $2.92-$3.00/kg. Beef cows, 670-740kg, firmed to $2.42-$2.50/kg and dairy, 536-665kg, $2.16-$2.29/kg. Only two lines featured in the store cattle section – five R1 Angus mixed-sex, 400kg, at $3.13/kg and nine 304kg Angus-Friesian steers made the same price. Store lamb tallies dropped to 1300 and the lighter end sold to a tough audience at $70-$115. More ewes were offered as scanning brought out dries and a firm market meant top lines of mixed-age reached $200-$271 and 2-tooths, $204-$214. Most of the balance returned $141$178. Read more in your LivestockEye.

SOUTH-CANTERBURY Temuka prime cattle and all sheep • A variety of beef-cross steers over 600kg earned $3.13-$3.15/kg • Charolais steers, 511kg, returned $3.06/kg • Angus cows, 645kg, achieved $2.61/kg

• Simmental-cross cows, 727kg, managed $2.55/kg One of the smallest prime sales in recent memory played into vendor’s hands at TEMUKA last Monday. Strength shown in the steer pens flowed through into the heifer section and Angus-Hereford, 590kg, achieved $3.06/kg while 480-520kg Red Devon managed $3.05/kg. Other heifers over 450kg were commonly $2.90-$2.99/kg. Bulls within specifications sold well, particularly traditional breeds, 598-675kg, at $2.89-$2.97/kg. Forward short-term store lambs were sought after and many achieved $170-$189. The next cut traded at $152-$169 while medium pens were largely $114-$159. Just over half of the prime lambs traded within a $200-$242 range with the lion’s share of the remainder $150-$195. The best ewes earned $202-$258 while the rest were evenly spread from $110 to $196. Read more in your LivestockEye. Temuka store cattle • R2 Hereford-Friesian steers, 393-459kg, realised $3.00-$3.02/kg • R2 Friesian bulls, 456kg, sold very well at $3.16/kg • R1 Hereford-Friesian steers ranged from $2.87/kg to $3.02/kg • Better R1 Hereford-Friesian heifers earned $2.52-$2.58/kg • Autumn-born weaner Murray Grey-cross heifers traded to $230 and bulls, $305-$355 Short-term cattle sold to strong demand at the TEMUKA store cattle sale last Thursday. A large portion were traditionally bred types which were favoured by buyers. The R2 traditional steer average was $3.01/kg with heavier types over 409kg able to reach $3.03-$3.08/kg. The R1 dairy-beef steer average jumped almost 30c/kg to $2.86/kg. Good quality R2 traditional heifers sold above their brothers at $3.07-$3.10/kg with the average $2.84/kg. There wasn’t much difference in the top end between R1 steers and heifers and both sold in a range of $3.00-$3.05/kg. Read more in your LivestockEye.

OTAGO Balclutha sheep • Prime rams made $70-$100 • Store lambs eased with the top end back to $130-$140, medium $100-$120 and light $70-$80 Prime lambs held at BALCLUTHA last Wednesday. Heavy types fetched $170-$200, medium $150-$160 and light $140. Prime ewes found good demand and the top end strengthened to $180-$220, medium $130-$170 and light $80-$100.

SOUTHLAND Lorneville sale • Top store lambs held at $130-$140, medium $115-$125 and light $100-$110 • Mixed-age Coopworth-cross ewes sold to $210 • Local trade rams made $40-$80 • R1 Hereford-cross steers, 297kg, achieved $2.70/kg • R1 Friesian bulls, 199kg, realised $2.11/kg Heavy prime lambs eased a few dollars at LORNEVILLE last Tuesday back to $190-$210, medium $160-$180 and light $140-$150. Shorn ewes traded to $210-$230 with medium at $170-$200 and light $130-$150. Just a small yarding of prime cattle was presented. Steers above 600kg made $2.90/kg, and 510kg boner cows, $2.02/kg. A small yarding of store cattle sold on a firm market. R2 Herefordcross steers, 422-468kg, made $2.61-$2.68/kg and 440kg heifers, $2.56/kg. Charlton sheep • Two-tooth rams made $170-$195 • Top store lambs held at $130-$155, medium $115-$125 and light $80-$105 Prime lambs were mostly on par at CHARLTON last Thursday with heavy types at $190-$230, medium $165$185 and light $145-$160. Prime ewes met good demand and heavy types sold to $200-$220, medium $180-$195 and light $165-$180.

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Markets

40 FARMERS WEEKLY – farmersweekly.co.nz – July 26, 2021 NI LAMB

NI BULL

SI STEER

($/KG)

8.90

5.95

5.60

PRIME BEEF-DAIRY STEERS, 530KG AVERAGE, AT COALGATE ($/KG)

3.07

high $3.07-$3.10 Angus-Hereford lights R2 heifers, 410kg, at Temuka

Milk price forecasts slide on GDT slump Hugh Stringleman hugh.stringleman@globalhq.co.nz

NOTHER 2.9% fall in the Global Dairy Trade (GDT) price index has threatened $8/kg milk price forecasts for the

new season. The most recent fall was the seventh auction in a row to produce a negative index movement and the index has lost 12.5% over the past five months. ASB has already trimmed 30 cents from its forecast, taking it from $8.20 to $7.90 and Westpac has warned of downside risk to its $8 prediction. NZX dairy analyst Amy Castleton says her milk price forecast had fallen 12c to $7.69 following the latest GDT results and the dairy futures trading movements since the previous GDT event. Back in mid-June the NZX forecast was just over $8. GDT buyers seem to expect that the big spring boost in New Zealand milk production will oversupply markets for dairy commodities. Buyers may be betting on high farm gate prices causing NZ milk production to increase and/or sitting out of the auction at this time. Fonterra removed large tonnages of whole milk powder (WMP) from GDT auctions in recent times, but that did not stop GDT prices from falling 3.8% average across all contract periods and powder grades. Skim milk powder (SMP) also fell 5.2% to below US$3000/tonne and has opened up a $750 gap with WMP. Lactose was down 8.9%, butter 0.8% and anhydrous milk fat (AMF) down 0.3%. The only gain was for cheddar at 1.3%. After commenting that powder prices seemed to be in free fall, NZX

WORRISOME: Westpac senior agri-economist Nathan Penny says the GDT price drop followed wide concerns about the delta variant and resurgence of covid-19.

dairy analyst Stuart Davison said prices were coming off highs and some correction was always to be expected. “Overall, this result will have a negative effect on the farm gate milk price forecast and will put a dampener on the season’s outlook for farmers,” Davison said. ASB economist Nat Keall says the shape of the forward contract curve in the latest GDT auction was now a marked downward slope. “It is a clear sign that prices are losing momentum as we get deeper into the season,” Keall said. “We knew dairy prices wouldn’t sustain these heights forever, but prices are falling a bit faster than we had anticipated.” Keall says the key question was where prices would find a floor. On that matter, he was still positive

as covid delta disruption had raised uncertainty but dairy demand was still strong and ongoing supply chain issues would keep commodity prices elevated. Westpac senior agri-economist Nathan Penny says the GDT price drop followed wide concerns about the delta variant and resurgence of covid-19. “Financial and commodity markets have hit pause on the earlier optimism around vaccine rollouts and subsequent economic recovery,” Penny said. He suggested early indications were that NZ spring milk production would get off to a quiet start. “On balance, the risks to the milk price outlook have clearly shifted to the downside. However, for now we stick with our forecast of $8,” he said.

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$2.86-$2.96 R2 beef-dairy heifers, 480-530kg, at Wellsford

ACROSS THE RAILS SUZ BREMNER

Separate prime cattle sale need continues to fall PRIME cattle sales around the country used to be just as prominent as store sales, but as time moves on the need for separate sales to be held is coming under the spotlight. Several yards already hold combined prime and store sales, which for buyers means just one trip to the yards each week and for sellers it means their cattle are presented to a larger audience – and that sentiment is one of the driving forces behind fewer prime-only cattle sales at Stortford Lodge this year. In past years, the sheer volume of cattle offered over the two days meant a split sale was necessary. Just 10 years ago, total prime volume for 2011 and 2012 at this yard was 5800 and 5500-head respectively. Volume has been on a downwards slope since then, though up until 2020 most years still recorded at least 2200 going through the rostrum. In 2020, just over 1000 were offered for the year, but year-to-date only 57 cattle have been sold on Mondays over three sale days; one apiece in January, April and May. In part, the big reduction this year is due to two years of very dry and drought conditions, where farmers have had to offload stock prematurely. Some were on-sold, but others went to the processors at lighter weights, essentially taking them out of the system. For Stortford Lodge that has meant a reduction in the volume of prime cattle coming to the Mondayspecific sale. But adding to that, there has been a purposeful shift of cattle to the Wednesday sale. “The shift of cattle to the Wednesday sale has been an evolving thing and just makes sense for vendors. In the past a big consignment of R3 traditional steers were offered on a Monday but this year they have in most cases started the Wednesday sale, which puts them in a more prominent position in front of a larger audience,” Redshaw Livestock agent Dean Freeman said. “Many of the same buyers, plus extras, are in place on a Wednesday so it just makes sense. Since prime cattle are older, they are sold at the beginning of the store sale, so it is a win-win for everyone. It also means that we are not competing with the Feilding prime sale.” suz.bremner@globalhq.co.nz

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Farmers Weekly NZ July 26 2021

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