Farmers Weekly NZ August 26 2024

Local govt milking rural NZ dry

Neal Wallace POLITICS Governance

COUNCILS are being called on to follow central government’s lead and rein in spending after double-digit average rate rises this year by regional, district and city councils.

The average rate rise this year by New Zealand’s 11 regional councils was 16.20%, the third successive double-digit rate increase in a row.

A survey by the Taxpayers Union has calculated the average increase for the 61 city and district councils was 14.18%.

Local Government Minister Simeon Brown said most New Zealanders and central government are prioritising the musthaves over the nice-to-haves, and local government should be adopting a similar approach.

“For the government, this means funding essential services and critical infrastructure,” he said.

“I expect local councils to adopt a similar approach, going line by line through their expenditure to ensure they are focused on core business.”

Last week Brown announced the government is refocusing the purpose provisions in the Local Government Act, investigating the introduction of performance benchmarks for fundamental

council roles and reviewing transparency and accountability rules.

It is also considering options such as cappng the amount councils can spend on what he called “nice-to-have pet projects”.

Previously it had announced changes that allowed councils to fund debt for infrastructure and the removal of references in the Act requiring councils to enhance the social, economic, environmental and cultural wellbeing in their communities.

Doug Leeder, the chair of Bay of Plenty Regional Council and Local Government NZ’s regional head, said nothing has changed in local government in 35 years – since reform in 1989 – and it is due for a relook.

“The local government sector in terms of its structure hasn’t changed since 1989 but we need to ask is that realistic in an everchanging world?”

Such a discussion should be based on an unbiased, honest account of what amalgamation or reconfiguration would look like, with costings and the likely impact on ratepayers, and detail functions that are best handled at national, regional or local level.

“That’s the core of what, in my view, needs to happen.”

Federated Farmers board member and local government spokesperson Sandra Faulkner

Continued page 5

Sheep & beef’s turn in Ahuwhenua spotlight

Entries are open for the Ahuwhenua Trophy and this year the focus is on sheep & beef farmers. The trophy has been presented to the top Māori farmer for the past 89 years and since 2012 it has also included the Young Māori Farmer award. Chloe Butcher-Herries was the recipient last time the sheep & beef sector took centre stage. For more information visit www.ahuwhenuatrophy.maori.nz

SECTORFOCUS

Researchers say NZ can reach its freshwater goals, but the social cost might be too high.

NEWS 7

Where business is blooming

Peter Rensen’s flower-growing operation in South Auckland is thriving on innovation and diversification. HORTICULTURE 22-25

Nestlé challenges claims NZ dairy farms have the lowest carbon footprint in the world.

NEWS 9

Outgoing Rural Support Trust chair has been guiding the organisation since inception.

PEOPLE 20

Photo: Alphapix

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ISSN 2463-6002 (Print) ISSN 2463-6010 (Online)

Contents

News in brief

Seeka rebounds

A rebound in kiwifruit packing has increased Seeka’s revenue by one-third and boosted earnings and profits in the six months to June 30.

22-25

Farmers . 26-29

30-31

32-33

33-37

VETERAN: A 40-year veteran of the industry inducted into the Arable Hall of Fame, Syd Worsfold, says he ‘tried to make a difference for wheat growers’. STORY P13

Revenue is up 34% to $284 million, earnings before interest and tax up 88% to $68.4m and net profit before tax up 230% to $45m. Net profit after tax is up 63% to $17m, after a $14m one-off deferred tax expense from changes in tax legislation.

No rebate

Ballance Agri-Nutrients fertiliser cooperative will again not pay a rebate to its shareholders on products they bought during the FY24 financial year.

“Facing another year of headwinds for the co-operative and its shareholders, Ballance prioritised debt reduction and passing on price and cost savings to customers through the year,” chair Duncan Coull said. Revenue was down 24% to $929 million.

Zespri forecast

Zespri has released its first full forecast for the 2024-25 season, with per hectare returns up from last season for all categories, reaching record levels for Green and Organic Green.

Zespri chief executive Jason te Brake said the latest forecast reflects both the strong season start and the competition seen more recently in markets, including from summer fruit.

Organic support

The organic sector has welcomed the government’s review of gene technology rules.

The sector, which said it has actively and openly engaged in the discussions and shaped the outcomes of the topic since the 1990s, said it awaits an opportunity to directly engage and participate in the discussions that will shape the country’s positive future.

Back in 1860, exporting meat to the other side of the world seemed about as easy as nailing gravy to the ceiling But a few determined kiwis took the bull by the horns and now our grass-fed beef and lamb is sought-after all around the globe

At AFFCO, we see the same pioneering spirit alive and well in farmers today We’re playing our part too – exploring every opportunity to take New Zealand’s finest farm-raised products to the world

Reporter in the market for global insights

discerning, especially when it comes to food.

For meat and dairy, markets include those willing to take anything, and the price they are prepared to pay reflects that.

MEETING the MARKET

7 COUNTRIES IN 6 WEEKS

Farmers Weekly senior reporter Neal Wallace heads off on a six-week, seven-country assignment to New Zealand’s key agricultural export countries.

IN HIS biography, motoring pioneer Henry Ford relayed that in a sales meeting in 1909 he said buyers of his Model T could have a car in any colour they wanted provided it was black.

Markets have evolved since then as wealth and choice have grown, and today they are much more

Continued page 1

asks whether we are not in fact over-governed.

“Is it the rating model, or do we need three levels of governance in this country?”

Leeder said the reform of Three Waters and the previous government’s now sidelined Future of Local Government review, came close to initiating change, but he notes councils can already work together in areas such as Three Waters.

Leeder sees opportunities for savings by councils sharing IT and roles such as building consent, roading and rubbish, but few do.

The previous government’s review found communities were not well-served by the relationship between central and local government and called for radical overhaul.

At the other end are those affluent and discerning consumers who want high-quality meat and dairy but also seek an assurance those products reflect their values and expectations on climate change, the environment and animal welfare.

If those products and values align, then they will pay a premium.

This is the market reality for New Zealand farmers and processors, and partly why systems such as Farm Assurance Programmes, farm plans and supply contracts operate and why processors are having to reduce their greenhouse gas emissions.

For some farmers, this form-filling and associated administration is an obvious burden and distraction when there are plenty of chores to be done on the farm and at a time when prices

It made 17 recommendations, including the creation of a Crown department to manage the relationship, four-year local election terms, funding increases, and strong partnerships with iwi.

That report has been rejected by the current government.

The government has added to the workload of regional councils and in his own council, Leeder said, they have tried to spread the financial burden especially from targeted rates.

Ōpōtiki flood protection rates are approaching $1000/rateable property and in Tauranga the public transport rate was $300/ rateable property before it was decided to provide a portion from the general rate.

This also recognises that people using public transport means fewer cars on the road, which aids climate change efforts.

obviously need to be higher.

Our farming systems ensure we meet most if not all the requirements of the world’s affluent consumers, but they need reassurance, they need verification and we need to provide it if we are to retain – let alone extend – our share of those high-worth, highpaying customers.

Against this background senior report Neal Wallace this week embarks on a six-week tour of the United States, Europe, the United Kingdom, Dubai and China, our most valuable dairy and meat markets.

He will be meeting and talking to, among others, customers such as McDonald’s, Tesco and Sainsbury’s and asking what their customers want now and what they will want in the future.

He will be asking whether there is a premium for meeting some of these additional customer requirements – or is that just the price of entry to that market?

He will be looking at the state of those markets, the growing challenges facing global trade

The other significant increase in work has been flood protection, a costly exercise other councils also face.

Leeder said most of these schemes were originally paid for by taxpayers in the 1960s and ’70s but were passed onto councils with the local government reforms.

Calculating actual beneficiaries of this protection is complex and includes farmers, homeowners, businesses and public infrastructure.

The National-ACT coalition agreement commits the government to consider sharing a portion of GST collected on new residential builds with councils as an option for incentivising growth.

Leeder warned that this and other government revenue sharing could mean government seeking more of a say in council activities.

Federated Farmers’ Faulkner said

It could be a difficult conversation ... but for the sake of our industry and the NZ economy, we need to understand what our customers want and expect.

since covid and regulatory challenges facing European farmers.

given the differing populations, geography and needs, one model of governance may not necessarily suit provincial areas let alone all rural districts.

“What works in Gisborne does not necessarily work in Southland or the West Coast.

“That is the conversation that needs to be had in provincial NZ.

“It has to be locally led.”

The federation is in the process of developing an options document, which it wants to release ahead of next year’s local government elections.

Faulkner said the financial burden from inflation and sharp rate increases could prompt ratepayers to demand a closer look at our local government structure.

“The threat of rate rises, albeit necessary in many cases, could force discussion because people are feeling the pinch.”

It could be a difficult and uncomfortable conversation at a time when the confidence of NZ farmers is low and prices need to be higher, but for the sake of our industry and the NZ economy, we need to understand what our customers want and expect. The trip has been made possible with grants from Fonterra, Silver Fern Farms, Alliance, Beef + Lamb NZ, NZ Meat Industry Association and Rabobank.

Minister Brown said New Zealanders expect local governments to provide the frontline services they have been tasked with providing for decades, such as local roads, water services and infrastructure, and libraries. Current high inflation means councils need to keep a close eye on expenses.

In addition to considering sharing GST on new residential builds, Brown said the government is also developing a strategic framework to support councils deliver infrastructure.

“As stated in the NationalACT coalition agreement, the government is considering sharing a portion of GST collected on new residential builds with councils as an option for incentivising growth,” Brown said.

MORE: See page 6

BLIMEY: The United Kingdom is one of seven countries Farmers Weekly senior reporter Neal Wallace will be visiting on his global assignment.

Councils pass the buck on rate hikes

THREE years of doubledigit average rate increases are being attributed by regional councils to cost increases, inflation and extra obligations required by central government.

They also warn that despite councils increasing by 1000 their combined personnel head counts in the past five years, central government and community expectations mean those head counts will increase further.

The Taranaki Regional Council said its largest increase in expenditure has been in resource management, biosecurity and biodiversity, which was driven by government regulation and policy and resulted in an extra 15 staff being employed.

The council consulted with ratepayers to determine priority areas of work, it said.

Its long-term plan shows rate increases returning to single figures in 2027-28 and to just over 2% from 2028-29.

Northland Council said elected members and staff found more than $1 million in savings for this year in the area of natural environment.

Ratepayers rejected proposed cuts to council contributions to emergency services and regional sporting facilities, which would have reduced the rate rise by 4.98%.

The inclusion of these pushed this year’s increase to 15.94%.

The council has not reduced staff numbers, saying they are needed to deliver the work demands of central government and the Northland community.

Savings by the Greater Wellington council reduced its 37.3% draft rate rise to 20.55%.

Those savings come from delays to capital projects, leaving positions vacant, cutting costs and extending the length of borrowing terms.

Rate rises are expected to return to single figures in 2028 and to reach 2% or below from 2032.

Bay of Plenty has reduced operating costs by between $4.5m and $5m through efficiency initiatives and sharing services.

According to the council, inflation and increased government

requirements, especially in the environmental and freshwater areas, increased its operating budget from $133m in 2018-19 to $200m in 2024-25.

The Hawke’s Bay council found savings in operational and nonregulatory areas by deferring some projects, and it said it is addressing staffing levels by reviewing vacancies.

Its work programme in the current year relates largely to postCyclone Gabrielle, transport and flood protection and control.

The Waikato Regional Council has determined current staffing levels are appropriate but has restricted the replacement of some roles.

Higher expenditure has been driven by increased costs in flood protection, catchment management and public transport, including rail service to Auckland.

It estimates that inflation, outside its control, last year equated to 5.7%.

The council cancelled a sustainable homes scheme to reduce costs.

Horizons Regional Council found savings that reduced the rate burden from 12.9% to 11.7% and it has limited new staff hires to what is needed to meet regulatory and compliance standards.

It expects higher future expenditure on public transport, as demand grows, and on meeting regulatory standards. The 2025-26 rate rise is expected to be 12% and 9% the following year.

Environment Canterbury has adopted a $337m work programme that resulted in a 17.9% rate increase, smaller than the 24.2% initially proposed due to efficiencies.

Public submissions encouraged increased spending on river resilience, flood management and pest and weed control.

The West Coast council has a significant workload in areas such as flood protection for Westport, but it is aware of the compounding risk of underinvesting in capital works.

After this year 27% rate increase, it is forecasting a 12% rise next year.

The council is also bringing more roles in-house instead of employing contractors.

The Otago Regional Council softened its rates burden by increasing its use of debt

and reserves, extending debt repayment, and is projecting an increase in dividend payments from Port Otago, of which it is a sole shareholder.

Its extra workload has been in public transport, which increase $17m between 2018-19 and 202425, science and monitoring ($10m increase), regulatory ($7.4m), environmental implementation ($7m), and flood, drainage and river management ($6m).

Environment Southland has capped staff numbers after an

effectiveness and efficiency review. Using reserves and changing the timing of work has enabled a softening in the rate increase. Between 2018-21, freshwater changes generated the council’s greatest increase in workload while from 2021 to 2024 it was climate change resilience, specifically improving flood defences.

A council statement noted there had been no capital investment in flood protection work for 30 years and the council expected that to continue into the future.

The bureaucracy that just grows and grows

Neal Wallace POLITICS Governance

THE country’s 11 regional council’s increased rates on average 16.20% this year, the third successive year of double-digit increases.

Analysis of the regional councils by Farmers Weekly (from which the six unitary authorities were excluded) reveals that for the 2024-25 year rate rises ranged from 27% on the West Coast and 20.55% at Greater Wellington to 7.4% at Waikato, the only council to have a single digit increase.

This follows average increases across all councils of 12.4% in 2023-24 and 11.5% in 2022-23. In 2019-20 the average increase was 6.7%.

That year just Otago (13.8%) and Bay of Plenty (12.5%) had doubledigit rate rises.

According to analysis by the Taxpayers’ Union, the average rate rise for 61 city and district councils was 14.18%, led by 21.4% at the Gore District Council, 20% at the Central Hawke’s Bay DC and 19% at Hastings DC.

The increase at Napier City Council was 19.95%, Upper Hutt city rates rose 19.93% and Dunedin city 17.40%

The Farmers Weekly analysis reveals that between 2019-20 and 2024-25, regional councils grew rapidly.

The amount of revenue raised has in many cases doubled and expenses increased more than 50%.

Total staff employed by the councils over that same period have risen by more than 1000, from 3536 full-time equivalent (FTE) to over 4600.

There were significant staff increases at Taranaki, with 78% more, Otago 74%, Hawke’s Bay 54% and Greater Wellington 45%.

The amount of revenue raised in the past five years has in many cases doubled and expenses increased more than 50%.

Regional councils are paying an average of 35% of their staff $100,000 or more, with the Bay of Plenty at 60% and Greater Wellington at 53% having the greatest percentage of their workforce in that salary bracket.

Councils were asked to disclose the percentage of their income from general and targeted rates and the data reveals that between 2018-19 and 2024-25, both increased.

Averaged over all councils, general rates as a share of council income has increased from 17.4% in 2018-19 to 27.5% in 2024-25, and targeted rates from 16.9% to 17.9%.

DRIVEN: The Taranaki Regional Council says its largest increase in expenditure has been in resource management, biosecurity and biodiversity, which was driven by government regulation and policy.

Neal Wallace POLITICS Governance

RETURN: The Otago Regional Council is projecting an increase in dividend payments from Port Otago, of which it is a sole shareholder.

Photo: Wikimedia Commons

a survey of 500 farms while StatsNZ gets its data six months later, which makes it more current.

Where have one million ewes gone?

Neal Wallace NEWS Livestock

THE latest Beef + Lamb New Zealand stock number survey has revised the estimated breeding ewe flock as at June 2024 a million lower, from an earlier forecast of 15.34 million to 14.37 million.

The information is contained in the latest BLNZ livestock survey, which reveals a 4.3% decline in total sheep numbers and 2.8% drop in beef numbers, which is attributed to land use change and drought.

BLNZ insight and communications manager Rowena Hume said the discrepancy is due to the timing of data collection between it and StatsNZ, the time lag between when a farm is sold for forestry and when stock are finally removed, and where those animals actually go.

In some cases it can be more than two years between the sale of land and stock leaving a property.

“The issue is the speed of land use change,” she said.

The impact of drought has been another factor.

BLNZ sources its data from a survey of 500 farms while StatsNZ gets its data six months later, which makes it more current. It also has input from other government departments.

Hume said StatsNZ revised lower earlier forecast sheep numbers, which obliged BLNZ to follow suit.

BLNZ, StatsNZ and the Ministry for Primary Industries are working more closely to get a more accurate picture and better access to data such as forest planting.

Meanwhile, Australia continues to set new lamb processing records.

Meat and Livestock Australia has announced 7.2 million lambs were slaughtered in the three months to June, the highest quarterly kill on record.

The combined sheep and lamb kill was up 16% on the same period last year at 9.9 million, the highest since 1973.

A significant 177,147 tonnes of lamb was processed in the quarter, 19% more than for the same period a year earlier.

MORE: See page 11

Rural NZ risks being measured for pine box

Gerald Piddock NEWS Research

ANEW Our land and Water paper suggests that New Zealand can reach its freshwater goals, but it will come at the expense of the sheep and beef industry and its surrounding communities.

The paper, Why Pines, is a summary of four recently completed pieces of research on land use change. It was funded by the Our Land and Water National Science Challenge.

The research looked at what sort of land use change would be needed to reach New Zealand’s freshwater goals.

Speaking in an online briefing, paper co-author Dr Jenny WebsterBrown said while they were confident a transition to pines would improve freshwater, she questioned the cost of such a move.

“That cost may be way too high for New Zealanders in general. Does everybody want to see a landscape that’s 100% pine trees?

“Do we want to have a New Zealand without rural communities? Because it will certainly impact on the viability of rural communities. Do we want to see that whole way of life disappear from New Zealand? These are the decisions that we have to make.”

There needs to be an accounting of these costs and disadvantages when looking at achieving water quality outcomes, she said.

While the results were not unexpected, the extent to which pine forests are being put forward as the best and easiest option was surprising. The paper should be seen as the foundation for a future conversation.

“We appreciate that having more pine trees is not the solution to New Zealand’s problems in terms of our freshwater.”

QUESTIONS: Dr Jenny Webster-Brown says while there is confidence a transition to pines would improve freshwater, she questioned the cost of such a move.

Lead author and principal economist at the NZ Institute of Economic Research Dr Bill KayeBlake said conversions would actually increase revenues in the primary sector because of the premiums they receive for selling their land into forestry.

Around 20% of forestry conversions are done for economic reasons, including low profits from sheep and beef farming.

Half are done because of carbon policies and 15% because of water quality policies.

He highlighted the example of the Tukituki catchment in Hawke’s Bay, where water quality bottom lines could be met if all of the sheep and beef land was converted to pine forests.

“It also found if the region did that it would actually increase profit to landowners in the area, so you have both a water quality benefit and an economic benefit in that large-scale transformation.”

Beef + Lamb New Zealand principal

science adviser for farm systems and environment Jane Chrystal welcomed the continuation of that conversation.

“Beef + Lamb has been saying that for a while and I do find it slightly ironic that they were surprised by the results, because we’re not.

“We are seeing conversions and we are seeing the impact when you focus purely on financials.

“It’s bigger than just farms converting. The impact is much wider than that.”

Chrystal said a more holistic approach is needed than just looking at financial data when looking at land use change into forestry and that approach should include the flowon impact on rural communities and the additional benefits that sheep and beef farms provide, such as biodiversity and eco-corridors.

“Those vistas and those beautiful mosaics of land use that we can see driving around New Zealand, I know I wouldn’t want to be just looking at pine trees.”

TOO FEW EWES: BLNZ sources its data from

Photo: Pexels

Nestlé cautions NZ dairy on efficiency

Gerald Piddock NEWS Dairy

NESTLÉ global procurement category lead for dairy Bruno Spire has challenged the claim that New Zealand dairy farms have the lowest global carbon footprint.

Speaking via Zoom from Switzerland at the New Zealand Institute of Primary Industry Management conference at Mystery Creek, Spire said: “New Zealand has low emissions but not the lowest.”

European farming models, where cows are farmed in barns for large parts of the year, have more access to technologies to lower their emissions than New Zealand with its pasture-based farming model, he said.

“Our projections are showing that European and North American [farmers] have more opportunities to significantly reduce their emissions.

“In order to remain attractive, I believe the dairy industry in New Zealand must tackle this problem, but the good thing is that there are solutions.”

One of these is to improve productivity. While milk efficiency has improved in New Zealand, it is still behind other countries.

Pressed on this in a questionand-answer session following his presentation, Spire said that percow efficiency and productivity is the biggest opportunity for New Zealand to reduce its carbon emissions.

A big chunk of that comes from better cow nutrition, he said.

Rather than a threat, it is a great opportunity for farmers to become more efficient in milk production.

Are we doing enough? No, we could always do more. Is it going in the right direction? Absolutely.

Bruno Spire Nestlé

“Not only will they reduce their emissions and remain attractive to Nestlé, but they can also generate more revenue to make them more resilient to price volatility as well.”

Asked if decarbonisation could lead to more “industrial” farming practices with cows housed indoors as a trade-off, he said: “I don’t think consumers understand how meat, vegetables and milk are produced. Some are asking and some are willing to understand, but in general, they don’t really know.

“What they are asking is that

Synlait’s big brothers come to the rescue

BRIGHT Dairy of Shanghai will become a 65% majority shareholder of Synlait Milk when a proposed recapitalisation of the struggling dairy company is completed.

Minority shareholder and major infant formula customer a2 Milk Company will also participate in the equity raise, to maintain its 19.8% holding.

But the two large share placements have different values, as Bright is paying a premium to gain control.

Bright has agreed to pay 60c a share for about 300 million additional shares at a cost to Bright of $185 million.

A2 has agreed to pay 43c a share for around 75 million new shares at a cost of $33m.

The money raised will be used to repay $180m of retail bonds that fall due in December.

The recapitalisation process does not include equity raising from minority shareholders, whose holdings will be substantially diluted.

They will go from about 40% of issued shares to 15%.

However, their 15% portion of

the product is safe and that the product is sustainable.”

He said he understands the historical and practical reasons for New Zealand having an outdoor pasture-based farming model and said he was not implying farmers convert to a more confined model.

“It’s about how can we further improve the efficiency of this model to make it better and more resilient.”

Asked if Nestlé would pay a premium to farmers who undergo system changes, he acknowledged the challenges farmers face to become more sustainable.

“We have a very simple way of looking at it: no farmers, no milk, no Nestlé business.”

Nestlé is working with farmers globally to see how it can help finance these changes, he said.

Asked if New Zealand is moving fast enough to meet the needs of Nestlé he said: “The straight answer is no ... but I must say that the quality of the discussions and the willingness and involvement of farmers of the dairy industry in New Zealand have just been fantastic.

“I can really see the difference and the quality in what we are doing today. Are we doing enough? No, we could always do more. Is it going in the right direction? Absolutely.”

As a food manufacturer, Nestlé

OPTIONS: Nestlé global procurement category lead for dairy Bruno Spire says farming systems in the northern hemisphere have more opportunities to lower their emissions compared to New Zealand’s pasture-based farming systems.

relies on nature for the ingredients it needs to make its products. The company spends $20 billion on ingredients annually and dairy remains at the heart of this. It buys its dairy ingredients from more than 40 countries and has a long relationship with New Zealand.

In 2020 it released its roadmap, which outlined its path to zero emissions. It spoke of how it collaborates with farmers and

suppliers to work towards better farming systems.

The roadmap has the goal of Nestlé reducing its emissions by 20% by 2025 and 50% by 2030. Two-thirds of its emissions are coming from where the ingredients are grown.

“Without achieving the reductions on dairy, Nestlé will not be able to achieve its overall decarbonisation objectives,” he said.

the new combined equity value of around $300m is greater than their 40% portion of the current $65m market capitalisation.

Therefore, tradeable Synlait shares rose 6c after the recapitalisation plan announcement, to 46c.

It has been a bumpy road for small shareholders as prolonged problems and disputes surrounding Synlait have carved about 90% out of its share price over the past two years.

The company has never paid a dividend in the 16 years since starting milk collection and processing.

It has about 275 farmer-suppliers in Canterbury and Waikato and is committed to pay no less for milk than Fonterra.

Synlait wants to lift the advance payment on its $8/kg milksolids forecast price, as farmers have asked.

Synlait chair George Adams said that two big share placements for majority owners was the most straightforward way of raising much-needed funds quickly, at a more favourable price than alternatives.

“This is critical to resetting our balance sheet and will hopefully reward all shareholders for their long-term and loyal support as we

work to restore confidence in our company.”

Adams explained that minority shareholders would not have gained from a rights issue at a discount to the market price as their small shareholdings risked being diluted down to nothing.

Minority shareholders are required to approve the placements to Bright and a2 Milk, at a special meeting on September 18.

There are also constitutional changes required, for which Bright and a2 can vote, that require 75% approval.

“If the resolutions are not passed, it’s likely Synlait would need to cease trading and initiate a formal insolvency process,” Adams said.

All matters are inter-conditional, so that if one fails to gain approval, the whole process will cease.

The equity raise will only complete if it does so concurrently with the refinancing of Synlait’s bank facilities, which the company said is close to completion.

This is critical to resetting our balance sheet and will hopefully reward all shareholders for their long-term and loyal support.

George Adams Synlait

“Raising this amount of new equity capital is highly challenging in any circumstance but is particularly so for Synlait given its current over-geared financial position and recent financial underperformance.”

SHEPHERDING: Synlait chair George Adams says the proposed recapitalisation is a complex business that he believes will deliver the best possible outcome to all parties.

“Successful completion of the transactions will also provide the basis for Synlait to seek to restore farmer supplier confidence and the withdrawal of cessation notices received from farmers who have sought to terminate their milk supply agreements.”

The FY24 annual results will be announced on September 30 and earnings and profit are going to be adversely impacted by what Synlait calls a supply chain constraint in July, without going into more detail.

It is also expected to announce a decision about the future of its Pokeno manufacturing facility and the Auckland blending and canning plant.

“The strategic review does include consideration of the continued collection and processing of milk in the North Island, although no decision has been taken.”

Hugh Stringleman NEWS Dairy

Hopes run high for more ETS certainty

Richard Rennie MARKETS Emissions

CARBON sector industry players are hoping the latest government announcements on the Emissions Trading Scheme will deliver higher values, prompting greater stability and investment in the sector.

As this year’s carbon forestry conference kicked off in Rotorua, Climate Change Minister Simon Watts announced a shift in ETS settings that will have the number of carbon units available between 2025 and 2029 reduced by over half from 45 million to 21 million NZ Units.

The minister pointed to a carbon credit oversupply that has gutted carbon prices, from a high of $88 in late 2022 to plummet to $45 by July 2023.

Meantime successive carbon auctions have failed to clear the credits on offer, with the most recent auction, in June, failing to draw any bids. This left 4 million units unsold including 550,000 from the previous auction in March. Latest carbon prices are at $54, already registering a small lift after the minister’s announcement.

Earlier this year the Climate Change Commission recommended the number of units be halved, citing the scheme as being in disarray. The numbers minister Watts intends to reduce the credits by lies roughly in line with the commission’s recommendations.

Scott Pollard, head of business development for New Zealand’s largest carbon forestry company, NZ Carbon Farming Group, told delegates the sector’s challenge has been to have a stable environment for long-term

decision-making about forestry plantings.

“The short-term uncertainty has undermined confidence in this sector and for industries seeking nature-based solutions with evidence-based outcomes.”

His company has paid $134 million in leases to farmers and landowners seeking its expertise and management to plant transition forests on all or part of their land, with 75,000 hectares of managed estate and 35,000ha in the ETS.

“Two years ago we expected carbon prices would be over $100 a unit by now,” Pollard said.

Two years ago we expected carbon prices would be over $100 a unit by now.

Scott Pollard NZ Carbon Farming Group

The resulting low prices have been painful and required some diversification including establishing an Australian division and working with companies seeking high-quality carbon forests outside of the ETS.

The sawtooth pattern of NZ’s ETS values over the past two years reflected assorted interventions by the government, usually coinciding with the downturns.

“We now seem to be in an environment where the government is committed to the ETS being the workhorse for carbon.”

He pointed to a limited appetite for spending billions of taxpayer dollars to purchase offshore carbon credits when investment in NZ through carbon forestry is a viable solution to meet climate goals.

There are also strong inter-

national drivers that mean opportunities remain, including pressure from commercial partners and international demand for high-integrity, nature-based solutions.

With greater downward pressure on sheep and beef returns, the company is also seeing renewed interest from farmers in how they can convert some of their farm to carbon plantings on poorer land.

In the past five years the company has planted 30,000ha of greenfields land into forestry at a scale that will play a part in its transition forestry process, ultimately becoming nativedominated permanent forestry.

Initial high-density exotic plantings help generate carbon income early on in the forest project’s life, an invaluable cashflow source to help fund the future work of thinning and transitioning to natives, including pest control.

Intensive pest control of goats, deer and possums has meant thousands of head culled in recent years, and the company bought a 50% share in NZ AutoTraps.

As exotics are thinned, the size of remaining trees increases and the company can point to data over 100 years that proves exotics do not fall over once they are older than 30-plus years.

Company chief forestry advisor Bryan McKinlay said they have had more farmers from northern Hawke’s Bay approaching them, wanting another use for land ravaged by Cyclone Gabrielle and no longer farmable.

“We need confidence and stability in the ETS.

“More confidence means we then have the ability to accelerate transition forestry, we know it is possible and that it can be done at scale.”

GDT jump fuels milk price hopes

Hugh Stringleman MARKETS Dairy

GLOBAL Dairy Trade prices jumped a whopping 5.5% this week, the largest percentage rise since March 2021.

Whole milk powder prices had the hero performance, increasing by 7.2%, the biggest single-event jump in more than three years.

WMP always has the biggest influence on the milk price forecast, which is now expected to increase.

All commodities sold in the latest GDT auction rose in price except for cheddar, which fell by 0.2%.

Mozzarella was up 5%, anhydrous milk fat by 4.8%, skim milk powder rose 4%, butter 3.7% and lactose 2.7%.

China maintained a notable presence again at this auction, taking the lion’s share of milk powders, butter and lactose –

absorbing approximately half of all 40,000 tonnes of product on offer. That was the catalyst behind the pricing increases.

The SGX-NZX Dairy Derivatives market indicated mixed results across the commodities before the GDT event.

The international dairy market is a landscape of contrasting signals, NZX commercial manager Cristina Alvarado said before the GDT event.

“While there is upward momentum for WMP, driven by strong demand and recent price gains, SMP and milk fats face a more uncertain trajectory.”

NZX dairy analyst Rosalind Crickett said that all eyes in the dairy industry would now turn to Fonterra to see if it would provide an update on the farmgate milk price forecast for the season. That would be a welcome lift to dairy farmers as they enter spring, the busiest and most productive time.

TRANSITION: Scott Pollard of NZ Carbon Farming Group says the company has proven large-scale transition forestry from exotics to natives over time is a viable opportunity for NZ landowners.

Drought hammers falling livestock numbers

Hugh Stringleman NEWS Livestock

BEEF + Lamb New Zealand has flagged what it calls a notable decline in sheep and cattle numbers as at June 30, compared with 12 months before.

Its annual stock number survey attributes the continuing decline to forestry, drought and low prices.

While in recent years the primary driver for lower livestock numbers has been land use changes, this time it is drought effects in key sheep and beef regions, BLNZ said.

Sheep numbers are estimated to have fallen by 4.3%, down to 23.31 million, with breeding ewe numbers falling by 2.9% and trading sheep stock numbers down 7.9%.

These numbers are among the largest annual percentage decreases surveyed in the past decade, directly impacting the sustainability of farming and rural communities.

“Farmers sought to maintain their breeding ewes and decreased their trading stock more,” the report says.

“The decline in ewes and a lower expected lambing percentage, also caused by drought, means the lamb crop is anticipated to fall by 4.8% (970,000 head) on last year.

“Beef cattle numbers are down 2.8% overall, most significantly in the South Island, where drought led to a 7.1% decrease, while the North Island is relatively steady, down less than 1%.”

The anticipated fall in lamb numbers this spring will result from fewer ewes and a lambing percentage fall of 3 points to 127%, BLNZ said.

The estimated lamb crop is 19.26 million, down from 20.24 million.

The number of beef cattle on June 30 was estimated to be 3.55 million, down from 3.65 million a year before.

Lower sheepmeat returns saw a shift in interest to beef cattle, whose prices remained relatively firm on last year.

Livestock that might typically be wintered were sold to improve cashflow.

Additionally, capital livestock were sold to bolster revenue and this loss of capital livestock will reduce lamb and calf crops in spring 2024 and affect future potential earnings.

There was a further shift towards dairy grazers, which provide a steady income, resulting in more dairy grazing cattle on hand at June 30.

“One possible reason for fewer older [animals], particularly bulls, on hand at June 30 is a reduction in calf-rearers due to very tight margins two years ago, creating a lack of these animals in the current market for processing.”

The largest fall in beef cattle numbers occurred in Marlborough/Canterbury, down 10%. Total sheep numbers in the region were down 12.2%.

Regional hogget numbers were down 20% and a lower proportion of ewe hoggets were mated.

“Lambs that would typically be grown for processing over winter on hill country were sold store or processed earlier than usual at lighter weights.”

The most severe and prolonged dry period occurred in the north, especially Hurunui, Tasman and Marlborough districts. But production-limiting effects were felt as far south as Mackenzie, Timaru and Waitaki districts.

The national flock of breeding ewes is estimated to be 14.37 million, down 27% over the past decade.

The national herd of breeding cows is

estimated to be 960,000 head, the secondlowest number in the past decade. The highest number in recent years has been 1.1 million (2019).

BLNZ chair Kate Acland said the falling numbers in the survey are concerning and the challenges of the past few years are likely to have wide-ranging and lasting repercussions.

“We have weathered downturns before, and I remain optimistic about the future.

“Worldwide demand for high-quality sustainably produced protein is growing and New Zealand is well placed to fill this demand,” she said.

neuroendocrine and behavioural responses

on the

measure in calves undergoing this routine

CONCERNS: Beef + Lamb NZ chair Kate Acland says bigger decreases in livestock numbers threaten the viability of farmers and rural communities.

South Island’s gateway port ‘positioned well’

Annette Scott MARKETS Export

THE South Island’s gateway port, while not back to pre-covid business, is positioned well to meet the long-term needs of both import and export clients.

Lyttelton Port Company (LPC) chief customer and supply chain officer Simon Munt told a recent seed industry forum “everything is not rosy but improved”.

“We are the hub and spoke and the future of the shipping industry, we are focused on the future and developing the port, as the main port in the South Island, very much around that export hub.

“We are well positioned to meet the long-term needs.”

In 2023 LPC completed a three-year, $100 million eastern development project that has expanded the port’s eastern footprint by another paved 5 hectares to support the container trade.

“This included four new ship-

to-shore cranes, a new fit-forpurpose maintenance workshop and lifted annual capacity from 500,000 to 620,000 TEUs [20-foot containers].”

Opportunities going forward for the Lyttelton container terminal include the development of 34ha of reclaimed land, new container vessel berths and a new, 700m wharf.

“LPC is in the unique position to have got all the resource consents we need going forward into the next 40-odd years. This will set up New Zealand, and certainly the South Island very well in the future,” Munt said.

“This is massive investment for NZ in the port sector. This needs to happen at the Tauranga Port too, to ensure a secure and safe supply chain.”

LPC has opportunities to develop as volume increases, investing heavily in its Midland Port near Rolleston.

“We need off-port facilities to feed the port and we are encouraged and excited by investments such as Ashburton [Fairfield Freight Hub] bringing

PROOF:

of having all the

greater value and volume through our port.”

“We do a significant volume of arable seed and grain but we can do a lot more.

“While global shipping challenges continue, we are in a far better position than we were to continue to invest in the future.”

Mediterranean Shipping Company (MSC) southern regional manager Peter Andre told the seed industry forum that despite the challenges, global demand is tracking well.

Demand is growing above expectations with first quarter 2024 seeing the fastest growth in 11 quarters with

world throughput to grow 4.1% in 2024.

“World throughput and loaded volumes have been tracking above prior expectations with the latter rising nearly 10% year on year in 1Q24 marking the most robust growth since the pandemic.”

This is despite the impact on shipping from the Suez Canal diversion.

“Developments there over the past two months have forced a deep rethink of all our key forecasts for the container market.

“MSC is announcing the reshuffle of its Asia-Oceania

Everybody wants NZ product; there is good demand for meat, seeds, fruit and timber so we have got to be mindful of connection to global hubs.

network aiming at offering customers operating in China, southeast Asia and Oceania fast and reliable services to respond to their needs.

“The Wallaby service will be enhanced and reinstated as a standalone service offering faster and more direct connections between Australia, NZ and North Asia.

“The revised rotation will provide a comprehensive coverage of NZ ports, including Bluff and a seamless connection to our global network via our main hubs in Hong Kong, Yantian, Shanghai and Ningbo.”

The first rotational sailing departed Hong Kong on August 19.

“Everybody wants NZ product; there is good demand for meat, seeds, fruit and timber; there is good demand in the market of people wanting these stuffs so we have got to be mindful of connection to global hubs.

Peter Andre Mediterranean Shipping

“We have got to get that product to market,” Andre said.

New slink skin company starts up in Southland

Gerhard Uys NEWS Sheep and beef

A NEW slink skin company is setting up shop in Southland.

Newly formed NZAGRI Development set up its slink skins operation with help from Newton Slinkskins director Trevor Newton.

Newton shut up shop after he sold the land it was on to a forestry company in 2023.

NZAGRI Development technical adviser Eddie Zhi said Newton has been instrumental in helping restart the business, with key staff from Newton Slinkskins also helping.

Zhi has 30 years’ experience in animal products and has been described by Beef Central as a red meat deal-maker in Australia.

A friend of Zhi, Max Lee, bought the plant from the forestry company that Newton sold the land to.

Production will start at the Tuturau plant on August 25, he said.

The company will serve only the export market as there is no tannery in New Zealand that can process slink lamb skins, he said.

Zhi said the products are popular in the Chinese fashion industry as the wool is “very soft and pelts are very light”.

He said the company needs at least 15 to 20 skinners and five general workers.

“NZAGRI will expand into calf slinks next season too. We are also looking into investing into a rendering system in the near future.”

Farmer’s Weekly reported in 2021 that there were massive changes in the casualty stock business after Newton Slinkskins announced it would offer a reduced service to Southland farmers.

At that time Newton said the business had picked up around 140,000 lambs and 25,000 calves in 2020, but that reduced to around 50,000.

Newton called it a dismantling of the industry, with WG Ltd Partnership the only other business still running after Slinkskins went into receivership and the Lowe Corporation pulled out of the casualty operation in the South Island.

He cited “markets affected by the covid pandemic, slink operators going into receivership, change of ownership within the major players of the casualty stock industry, resulting in factories closing and collection services being affected”.

FUTURE

Lyttelton Port chief customer officer Simon Munt says the company is in the unique position

resource consents it needs going into the next 40-odd years to set up New Zealand well in the future.

Bumper awards yield for arable winners

FOOD producers have the biggest job on earth and the cream of the arable crop was celebrated at the industry’s annual showcase awards in Christchurch on August 15.

Manawatū farmer Simon Nitschke emerged as the big winner of the night, taking out the Arable Farmer of the Year supreme award.

Nitschke was also the section winner of the Maize Farmer of the Year.

Farming at Marton, Nitschke grows up to 200 hectares of maize grain, along with 100ha each of wheat and barley.

The awards judging panel said his yields are extremely high by industry standards due to careful cultivar selection, effective management of soil fertility and optimised use of resources.

His Arable Solutions business has invested in state-of-the-art grain-drying facilities and offers a package of contracting services.

Nitschke was highlighted by the judges for being willing to share his agronomic experience with other growers as part of several industry farmer groups including the Foundation for Arable Research’s (FAR) Arable Research Group (ARG) and the Growers Leading Change (GLC) programme.

A popular highlight of the evening was when Canterbury farmer Syd Worsfold was inducted into the newly formed New Zealand Arable Hall of Fame for his commitment to “all things arable”.

A 40-year veteran of the industry, Worsfold holds the record as the longest-serving United Wheat Growers (UWG) director and was an inaugural member of the FAR board.

In presenting the honour, FAR chair Steven Bierema hailed Worsfold as a willing supporter and mentor for any grower who needed help or advice.

“He balances strong opinions

with an open mind and has spent many hours every year assessing frost damage claims when he should have been concentrating on his own farm, and everything he did was voluntary,” Bierema said.

Said Worsfold: “I tried to make a difference over the years for wheat growers and industry and I did find it all rewarding. I thank my family for their support as I was off the farm a lot.”

Worsfold joins Dr Phil Rolston, who was inducted into the Arable Hall of Fame at the industry’s inaugural Arable Awards in 2022.

Federated Farmers arable chair

David Birkett said he was hugely impressed by the calibre and commitment of this year’s winners of awards in seven categories.

“Arable is a sector that tends to fly under the radar in NZ, but it punches above its weight.

“Our growers are pivotal to domestic food staples, seed export markets and supplying the grass seed and animal grain that the bigger dairy, meat and wool sectors rely on.

“In what’s been a tough season, the resilience and innovation of our growers has shone through,” Birkett said.

Also in the running for the overall Arable Farmer of the Year were the winners of the Seed

Grower of the Year Scott Rome, and Cereal Grower of the Year Peter Hewson.

The judges were very impressed with the way Hewson manages his water loss on low dryland cropping in Timaru, thanks to good tilling practices, drilling dates and careful planning.

Rome, who farms near Gore with his parents Steven and Helen,

was highlighted by the judges for his technical adaptation of the farming operation to one prioritising seed production over a “very short time and steep learning curve”.

He’s heavily involved in a local catchment group, FAR’s GLC, and recently stepped up to be the Southland representative on the Feds herbage seed group.

Waikato farmer Daniel Finlayson took out the Positive Environmental Impact Award for his strong environmental stewardship as a foundation principle on his farm as opposed to a “nice to have.”

The judges noted his “genuine engagement with iwi” and his continuous efforts to find solutions, such as developing an anaerobic system for chicken manure to reduce volatilisation.

Innovation Award winner Dr Soonie Chng of the NZ Institute for Plant and Food Research is dedicated to understanding arable crop diseases and finding solutions for growers, such as sustainable management of ramularia leaf spots in barley crops.

The Canterbury-based Liquid Injection Arable Growth Group, a group of 10 farmers who have accelerated their production

I tried to make a difference over the years for wheat growers and industry and I did find it all rewarding.

Syd Worsfold Arable Hall of Fame

progress through farm trials and sharing knowledge, took home the Working Together Award.

The judges said the collaboration has given farmers in the group the encouragement and support to try new things and get out of their comfort zones.

Agronomist of the Year David Weith is a 30-year industry veteran from Timaru who has shared knowledge to help achieve two world wheat yield records and a world barley record.

Weith is also very involved in training the new generation of young agronomists and farmers.

The awards are sponsored by the NZ Grain and Seed Trade Association. General manager, Thomas Chin said the award celebrates the vital role agronomists play in the success of farmers providing expert guidance on herbicides, fungicides, insecticides and specific nutrient requirements, optimising financial returns while ensuring sustainable and environmentally responsible crop practices.

“Regular crop visits allow agronomists to build strong relationships with farmers, sharing in the satisfaction of highly successful harvests.”

Mid Canterbury croppers made a clean sweep of the UWG Awards with the grand champion wheat crop going to Stephen and Peter Blain of Strathern Farm.

They also took out the Feed Wheat Award with the judges describing the competition as one of “yield, yield, yield; a drag race to the highest yield”.

The Biscuit Wheat Award was won by Brian and Rachel Leadley, and Geoff Maw of Maw Farming took away the Premium Milling Wheat Award.

• Granulated products for precision farming

• Targeted soil nutrition

• Easy application with starter fertilizer and/or seed

• Trusted quality for optimal results

Annette Scott PEOPLE Arable

VETERAN: A 40-year veteran of the industry inducted into the Arable Hall of Fame, Syd Worsfold, says he ‘tried to make a difference for wheat growers’. Photo: Annette Scott

CHAMPION: Manawatū farmer Simon Nitschke, pictured with his father Malcolm, emerged as the big winner of the night, taking out the Arable Farmer of the Year supreme award.

Court cracks down on Tairāwhiti forester

Richard Rennie NEWS Forestry

EAST coast iwi and landowners are claiming a victory in an Environment Court decision imposed upon a forestry group, and likely to have a wider impact on other operators in the region.

The Court’s decision requires enforcement orders be imposed upon Chinese-owned China Forestry Group NZ (CFG) and management company Wood Marketing Services, stating no significant debris or sediment discharges from their harvest site is allowable.

The company owns 150,000 hectares of forestry in the Tairāwhiti region.

Mana Taiao Tairāwhiti (MTT) is the group responsible for

organising a petition against forestry practices 18 months ago just prior to Gabrielle. It took the action in partnership with Gisborne District Council.

MTT spokesperson Manu Caddie said the ruling signalled that harvest and post-harvest practices along the east coast clearly need to change, along with the location of exotic forests themselves.

Just before the court hearing started, a director of CFG, Yuxia Sun, resigned from the role he had held since 2018.

Sun had been the only director of the company with a New Zealand address (the other directors are based in China), and had been named as a respondent in the case brought by Gisborne District Council.

A new director, Yihang Liu, with a New Zealand address, was appointed in May but was not subject to the orders because he

Given the ownership, [we] were worried they may find a way to disappear, and we are left with the mess.

Manu Caddie Mana Taiao Tairāwhiti

was not party to the proceeding.

“Given the ownership, ourselves and council were worried they may find a way to disappear, and we are left with the mess. This means there will be some responsibility for the clean-up and in relatively tight timeframes,” Caddie said.

“That is important, given we remain vulnerable to future weather events with this material still on the sites.”

The ruling applies to the Kanuka Forest block on steep hill country above the Waimata river.

A series of rainfall events over the years have resulted in woody debris and sediment from the company’s commercial operations migrating into the region’s waterways and beaches.

The issue has been a longstanding one, first noticed in 2012, but intensifying since 2018, with six large-scale debris events occurring.

The enforcement orders state that along with ceasing any discharge from sites, the company must carry out remedial works set out in a plan and obtain certification from an experienced independent expert that the works

have been carried out to a high standard.

Water controls are also required to be installed on all skid and landing sites and roads to minimise erosion risk, skid site collapse risk and track collapse risk.

The enforcement contains a detailed list of methods and devices to mitigate losses from sites.

The enforcement also reinforces one of the more tangible recommendations that have come into play post-Gabrielle.

This is where new environmental standards for commercial forests require slash longer than 2m and with end diameter greater than 10cm be removed after harvesting from erosion prone land, unless unsafe to do so.

The Environment Court’s ruling also requires some specific land areas to be retired from commercial forestry and that a covenant be registered over that land in perpetuity.

In some areas the company is required to leave existing pines within the retirement area to grow until May 1, 2027, then either poison the trees or remove them entirely.

A native revegetation plan for the permanent retirement area is to also be completed, and subject to Gisborne District Council approval.

The Judge noted the companies had acknowledged that the situation at their harvest site was unacceptable.

Caddie said he hopes the ruling will provide proof to other forestry companies that there are real repercussions from land mismanagement.

“It is unfortunate we had to pursue this avenue, but it is pleasing to see some industry players are starting to take these issues seriously and reconsider what they do, how they do it and where it is suitable for them to do it.”

A2 Milk pushes through China difficulties

A2 MILK Company has reported good revenue and earnings results for FY24 despite difficult trading conditions in its biggest market for infant milk formula, China. Revenue increased by 5% to $1675 million, including 9.5% growth in China-label infant milk formula (IMF), where a2 is now a top-five brand, despite a doubledigit decline in China market value.

Earnings before interest, tax, depreciation and amortisation were up 6.9% to $234.3m

Net profit after tax was up 7.7% to $167.6m and basic earnings per share were up 9.2% to 23.2c. However, no dividend will be paid, as has been the company’s policy since inception.

The share price has improved by 70% since January this year, up from $4.40 to $7.

However, the pathway during 2023 was a long decline from $7 due to post-covid trading effects and the falling Chinese birth rate.

A2 Milk (ATM) has a market

capitalisation of $5 billion, one of the biggest on the NZX exchange, and it is dual listed in Australia, where the head office is.

The immediate share market reaction to the results was a drop of 10% from $7.70 to $6.80.

A2 said the arbitration disputes with major IMF supplier Synlait have been settled, including Synlait’s acceptance of the validity of a2’s notice of cancellation of exclusivity.

A2 Milk owns 20% of Synlait shares.

The settlement is subject to Synlait completing its equity raise and the refinancing of its existing banking facilities, under a proposal to be announced this month.

A2 Milk Company has agreed to support and subscribe for shares under Synlait’s equity raise on terms to be agreed, as has Synlait’s major shareholder, Bright Dairy.

“China IMF market conditions remain challenging and we expect a further market value decline in FY25,” chief executive David Bortolussi said.

“At this stage, we are expecting mid single-digit revenue growth in FY25 versus FY24, with growth affected by IMF supply constraints which are expected to be resolved in the first half.”

Bortolussi said the company remains on track to deliver its medium-term growth strategy, which may include $2bn in annual revenue by FY26, more likely FY27.

Revenue has not yet recovered to the $1.73bn achieved in FY20 before covid-19 carved a swath

through China markets and delivery channels.

Net cash on the balance sheet is approaching $1b, up 27% in the past financial year.

“Consistent with the capital allocation framework, priority is being given to transforming and de-risking a2’s supply chain to enable future growth focused on investment in NZ and China.

MARKET: A2 Milk has a market capitalisation of $5 billion, one of the biggest on the NZX exchange, and it is dual listed in Australia, where the head office is.

“[Afterwards], to the extent there is a capital surplus to achieving a2’s priorities, the board will make a disciplined assessment of the potential to return capital to shareholders and the most appropriate option to do so.”

We are expecting mid single-digit revenue growth in FY25, with growth affected by IMF supply constraints which are expected to be resolved in the first half.

VICTORY: Mana Taiao Tairawhiti spokesperson Manu Caddie said the Environment Court ruling is a real victory for locals pushing for forestry companies to take more responsibility for post-harvest waste and its damage.

Hugh Stringleman MARKETS Dairy

David Bortolussi A2 Milk Company

CHANGE: Manu Caddie says the ruling signalled that harvest and postharvest practices along the east coast clearly need to change.

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They’re the same reasons more advertisers use

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From the Editor

Governed by self-interest

Neal Wallace Senior reporter

TURKEYS never vote for an early Christmas is an old adage, but applicable when it comes to discussions about structural reform.

It certainly applies in the case of the lack of progress on local government reform.

have” projects – covered sports stadiums, conference centres and refurbished town halls – the budgets for which tend to blow out.

Regional councils have had three successive average annual rate increases, of 11.50%, 12.40% and 16.20%. Their revenue has doubled in just five years and staff numbers increased by more than 1000 in five years.

Add to that an average rate rise this year of 14.18% for the 61 city and district councils, and ratepayers are understandably tiring of being treated like a cash register.

a greater share, while small councils like Waimate or Whakatāne still face comparable costs.

Unfortunately, the question of the sustainability of the current local government structure is not being widely discussed – well, not until last week. That was when Southland District Council mayor Rob Scott floated replacing his district council and Gore’s, plus Invercargill City Council and Environment Southland with two unitary authorities.

Letters of the week Price-matching parasites

Dave Stanton Geraldine

A DRAFT Commerce Commission market study report into the banking industry, released in March 2024, reported a “twotier oligopoly” was enjoying sustained high levels of profitability compared with their global peers.

It said: “In a well-functioning banking market, we’d expect to see strong competition driving innovation and choice for customers, rather than the pricematching strategies we see here in New Zealand, which result in very stable market shares.

“The lack of a disruptive force in our banking market means competition between the majors is sporadic and not sustained.” It’s time the external parasites sapping us of cash flow and profitability stopped colluding and were purged, scourged and fined.

Text to the editor

• On agrichemicals I don’t think the science community are in touch with the natural world and ways to drench using natural plants, which would maintain the animal’s immune system, making for a stronger herd. The synthetic chemicals are only weakening the animals’ wellbeing. – Anthony

I understand the resistance problem but would like to see recommended steps to avoid cattle and sheep resistance to parasites. – Anonymous

Farmers Weekly is published by GlobalHQ, PO Box 529, Feilding 4740. New Zealand

Phone: 0800 85 25 80 Website: www.farmersweekly.co.nz

The current structure was introduced in 1989, and there have been few changes since. The previous government held a review, but its finding were rejected by the current administration.

EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz

EDITORIAL

The issues remain, and a Farmers Weekly investigation into the cost of local government published this week, raises significant questions about they system’s sustainability.

Ratepayers need some fundamental questions answered: what is the role of local government? Do we need central, regional and district governance layers? How do we cater for large metropolitan and small rural communities? Is land value the best basis on which to determine rates?

ADVERTISING

Certainly the role of councils has become blurred as central government passes on expectations, responsibility and regulations.

Carmelita Mentor-Fredericks editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 027 298 6127 colin.williscroft@globalhq.co.nz Annette Scott 021 908 400 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz

Gerald Piddock 027 486 8346 gerald.piddock@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com

Andy Whitson 027 626 2269 New Media & Business Development Lead andy.whitson@globalhq.co.nz

Steve McLaren 027 205 1456 Auckland/Northland Partnership Manager steve.mclaren@globalhq.co.nz

As we reveal, councils have softened what is still a brutal rate rise for the current year by tapping into reserves, borrowing more –temporary measures that merely delay the inevitable.

Jody Anderson 027 474 6094

Waikato/Bay of Plenty Partnership Manager jody.anderson@globalhq.co.nz

Donna Hirst 027 474 6095

Lower North Island/international Partnership Manager donna.hirst@globalhq.co.nz

Grant Marshall 027 887 5568

He estimated it could save a combined population of 100,000 people $10 million a year.

Carterton mayor Ron Mark has previously said he hopes to be his council’s last mayor, an indication he is willing to look at structural change to save ratepayer money.

ISSN 2463-6002 (Print) ISSN 2463-6010 (Online)

Debbie Brown 06 323 0765

Text us your thoughts on issues raised in Farmers Weekly. Look out for the details on how to do it on selected stories, and include the key word in your text to 027 226 8553.

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letter WINS a quality Victorinox Hiker Knife

Few question the need for public bodies to look after footpaths, roads, water services, rubbish collection, environment and air, but the costs are becoming excessive.

PUBLISHER

On top of that there is a suite of “nice to

Calls for the government to share more funding and to share GST come with fishhooks.

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

South Island and AgriHQ Partnership Manager grant.marshall@globalhq.co.nz

Javier Roca 06 323 0761

It could give central government more say in council affairs, and sharing more GST will see big councils like Auckland commandeer

Livestock Partnership Manager 027 602 4925 livestock@globalhq.co.nz

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But these appear to be the exceptions.

In talking to people for our investigation, the adage about a turkey not voting for an early Christmas was raised several times.

Grant Marshall 027 887 5568

Real Estate Partnership Manager realestate@globalhq.co.nz

Andrea Mansfield 027 446 6002 Salesforce director andrea.mansfield@globalhq.co.nz

The implication is that there is an abundance of self-interest in retaining the status quo.

PRODUCTION

Lana Kieselbach 027 739 4295 production@globalhq.co.nz

Federated Farmers is entering the debate by floating alternatives, but ultimately economics will dictate what happens.

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Unless councils start listening to ratepayers and align their spending with realistic income, Christmas may come earlier than some turkeys had hoped.

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In

my view

... Trove of info on water science and more

Sue Edmonds

Edmonds is a science writer in Waikato

ACOUPLE of months ago I wrote an article about the ending of the National Science Challenges, in particular Our Land and Water – “Many moving parts to land use decisions” (May 20). An enormous amount of work had been done by a lot of people, but how was it to be brought together to be useful to those actually working the land?

Well, somebody listened, and I have now been supplied with information on three learning modules. Each module takes about two hours to go through and then there is access to 4-6 hours of reading on each topic. The associated readings contain 896 articles but there is a filter system in the modules, which allows one to signal the area/s of interest, and just produces smaller refined lists.

The initial aim was to make these available to “rural professionals”, but there are constant reminders in the materials to share, share, share with anyone who talks to farmers, or with farmers themselves.

The first module is entitled Management practices to improve water quality, and is designed to help those studying it to support

farmers in creating cost-effective freshwater environment plans using the broad scientific findings produced by the relevant teams that were part of Our Land and Water.

The second is entitled Communicating effectively with farmers, and contains a lot more than just teaching old dogs new tricks. It is also aimed at all people in communications, science, policy and community roles who want to talk effectively about the future of farming here.

It provides insights into the science behind the recommended communications strategies, explains the different types of thinking that people have about farming, the environment and possible land use change.

If we aren’t seen to be pulling our weight, we may have to make some drastic changes in our thinking.

It also outlines how their thinking can be helpful or unhelpful in building support for solutions that will protect our environment and wellbeing into the future.

By this point the would-be advisers will be clear on new water science, and have thought

about how best to discuss these ideas with individual farmers, or with small groups from individual catchments.

To date, efforts to put together freshwater environment plans haven’t quite been top of the pops because they have sounded like yet more rules and regulations. Done properly, each farmer will be able to view not only their own land and water, but feel that they could produce better ideas if they worked with others on a catchment basis.

The third module is where the previous work really comes into play. At present we are fixated on our export markets, which we have done well for years. However, the lurgy of climate adaptation, and the effectiveness of our efforts in the minds of our export markets, may well leap out of the darkness.

If we aren’t seen to be pulling our weight, particularly given the current state of world governments, we may have to make some drastic changes in our thinking and methods as those markets dry up.

And if we did get offside with others, are we able to completely feed ourselves if we can’t afford our usual imports?

This thinking has led me to trying to answer some difficult points.

The whole concept relies on

intellectual advice by clued-up advisers, largely to individual farmers. So how are sufficient advisers going to find time to immerse themselves in this sea of new material, and will they be given paid time to master it all?

Previous supposed group efforts to advise farmers, frequently involving threats of rules and regulations, have led to protests, media circuses, and, with our current government, the heavy hand of nullity for the seemingly cheeky concepts.

If we are instead going to try to bring in a one-to-one approach, which would be bottom-up compared to previous efforts, the team of advice-givers will need to make sure they are working together on the same lines.

It will certainly take a few more than the current crop, and if some

TOOLKIT: Learning modules available on the Our Land and Water website include ‘Management practices to improve water quality’, ‘Communicating effectively with farmers’ and ‘Tools for making land use change decisions’.

come from farm supply firms, how will it be fitted around selling the products which pay the daily expenses of all?

This won’t happen quickly. We are looking at a decade or two to get through the talking and planning. And if we don’t get real over climate adaptation, we seemingly don’t at present have any other detailed ideas as to where farming might have to change to keep us fed and financially viable in the years to come.

However, I give the Challenge people credit for their efforts to date. There is a huge amount of information and advice being offered very quickly, and it is all free! If you want to see what it consists of go to https:// ourlandandwater/learn. And then share it!

The rise of the side hustle on Kiwi farms

Blair Rooney Rooney is marketing manager at Farm Focus

IT’S no coincidence that the legend of No 8 wire was born on our farms. Farmers have long exhibited the ability to respond quickly with what they have available when they’re faced with a big challenge.

And right now, the challenges couldn’t be any bigger.

The numbers don’t lie: interest rates are high, commodity prices are down and everything on the farm has become more expensive. But in typical fashion, farmers up and down the country are finding creative solutions to these complex challenges.

That knack for quick thinking is today manifesting in the interesting side hustles that wouldn’t have been associated with the farming sector in previous years.

While margins are being squeezed elsewhere, farmers in the Wairarapa are taking advantage of the region becoming dark-sky accredited. Space on previously under-used paddocks is now being leased to other businesses that offer star-gazing safaris, serving as a serendipitous amalgamation of the tourism and agri sectors.

City dwellers, tired of the glowing rectangles of mobile phones and computer screens, are leaping at the opportunity to disconnect and enjoy the views that have always typified the rural experience.

And that’s only one example. Other farmers are taking advantage of how digital technology can bring the farm closer to consumers than ever before.

Forgive a moment of familial pride, but my folks own a small business called Homegrown Butchery, which offers directfrom-the-farm meat products. It’s basically a case of taking whole or half lambs and selling them direct to city consumers who normally wouldn’t have access to products like this.

This concept of offering excellent products direct to

consumers is also seen in businesses like the The Cheese Wheel, which offers a subscription to a collection of fine cheese products sourced directly from Kiwi dairy farmers.

The great thing about this is that farmers are finally taking a bit of the power into their own hands. They can set prices that they think are fair and deal directly with the consumer.

This, of course, won’t remove the need for the more traditional sources of revenue, but it does provide supplementary cashflow that would otherwise not exist.

Farmers who are plugged into their financial reporting often know where their businesses are tracking – and through tools like Farm Focus are aware of when they need to start plugging some revenue holes.

There are few examples that better illustrate this point than Honest Wolf. In response to struggling wool prices, a thirdgeneration farm at Papanui Estate decided to use some of its wool to produce a fashion and accessory range sold direct to consumers no matter where they are in New Zealand.

Following in the footsteps of Allbirds, Honest Wolf is continuing to show the potential of New

Zealand wool to be reshaped into a wide array of premium products.

The applications reach further than fashion, with industries tapping into the strong wool movement for insulation, carpeting, soundproofing and more. In recent years, we’ve even seen Tauranga-based shaper Paul Barron design surfboards made of wool fibres.

This is just a small example of what’s possible if Kiwi wool companies are able to grab a bigger share of the broader fibreglass market, which is tipped to reach a global value of $20.4 billion by 2027.

Across the farming sector there are equally interesting opportunities to tap into. The reality is that the farmers most plugged into their numbers and forecasts are the ones best placed to respond first and find new opportunities. There’s value in knowing which way things are tracking, so that you can quickly pivot and carve out new opportunities that simply didn’t exist before.

It’s a reminder that while No 8 wire is still around on farms, the Kiwi agricultural sector has come a long way since those humble beginnings. Long may it continue to evolve.

HONEST EFFORT: In response to struggling wool prices, a thirdgeneration farm at Papanui Estate decided to use some of its wool to produce a fashion and accessory range sold direct to consumers.

Our gene tech blinkers are off at last

Alternative view

Alan Emerson

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

IWAS really pleased to hear Science Minister Judith Collins tell me that laws prohibiting the use of gene editing technologies would be relaxed in New Zealand from next year.

It’s been talked about for years and I applaud Ms Collins’s courage in actually making a decision.

Past governments of all colours have refused to make that call. They let the rest of the world pass us by.

Speaking to politicians over the decades I’ve heard a lot of excuses as to why we shouldn’t allow gene technology into NZ. Most of the excuses I would describe as idiotic, irrelevant and in several cases, stupid.

Mind you, the anti-GE sentiment had been fanned by zealots of the likes of Greenpeace, who never let a solid fact get in the way of a money-earning position. It seems to me their anti-GE stance would have been a real cash cow for the organisation.

Last week after the government’s announcement Greenpeace was quickly out of the blocks with a media statement below the headline “GE not the solution to NZ’s dairy pollution”. I was blissfully unaware it was, but the Greenpeace focus was on GE nitrogen inhibitors. GE is much bigger than that. They also claimed that “GE techno fixes” are a risky distraction. Unsurprisingly, I disagree.

For a start, genetic engineering isn’t new. It was first mooted way back in 1934. Putting that in perspective, GE was talked about before computers, cell phones, space travel or Elvis Presley.

In the United States the first GE

Gene editing

lab was functioning in 1973. That’s more than 50 years ago. Field trials in the US were started in1994, 30 years ago.

There are 422 million diabetics in the world, all needing insulin. That insulin has been produced using genetic modification since 1978.

Australia started laboratory trials in 1976 and then passed the Gene Technology Act in 2000. Our legislation is going to be loosely based on that but the reality is that Australia has almost a quarter of a century lead on us.

That further highlights, in my humble opinion, the blinkers that were worn by our politicians over the decades.

Our biggest trading partner, China, was growing GE crops in the field in 1992 and progressed to genetic modification for disease control in humans in 2015.

By the mid 1990s there were genetically modified crops available for human consumption. They included squash, soybeans, cotton, corn, papayas, tomatoes, potatoes and canola.

I remain totally ignorant of anyone’s bollocks falling off for having consumed any of those GE crops at any time over the previous 30 years.

Over 30 years ago the World Health Organisation and the Food and Agricultural Organisation worked together to develop international guidelines and standards for genetically modified organisms.

In 2007 bread made from genetically engineered wheat was 25% cheaper to produce and that is considerable.

Lincoln University outlines four benefits of genetic engineering and they are: reduced production costs, increased yields, reducing environmental damage and the production of food with extra benefits.

Why wouldn’t you?

It has been estimated that 75% of processed food in a supermarket, “from soda to soup, from crackers to condiments” contains genetically engineered ingredients.

So what’s the problem?

Talking to prominent academic and farmer Professor Jacqueline Rowarth was interesting. As always she had some pertinent points to make.

“Time has passed, education has improved and the need has increased,” she told me. “The original concerns about genetic modification, which in New Zealand prompted the Royal

Commission investigation in 2000/2001, have not been proven to be grounded in reality. In contrast, predictions of increasing hunger and difficulties in producing food have come true.

“What the world needs is a pragmatic adoption of all precision tools that allow increased food production, with minimal inputs, from current land.

“The new Gene Technology Bill

I remain totally ignorant of anyone’s bollocks falling off for having consumed any of those GE crops.

proposed by Minister Collins will allow New Zealand to join in the scientific challenge of reducing hunger while protecting the environment and the biodiversity it holds.”

Professor Rowarth is a scientist, I’m not. As a layperson, however, I have no argument with any of the points she makes.

It also seems to me that ethical science has always been on the side of GE.

I desperately tried to find any reason for us not to embrace GE. I googled the countries that “banned GMO imports and cultivation” and there are eight. Among the countries are Algeria, Kyrgyzstan, Bhutan, Madagascar and Peru. I’m unaware of any significant trade or trade potential with any of them.

The politics have been interesting. It was a cornerstone of the ACT party’s negotiations. National promised, pre-election, to reverse the ban on GE. Labour’s Deborah Russell urged caution and wants proper consultation, which is fine.

That tells me the legislation will be passed and stay passed no matter who is in power.

Minister Collins made the point that introducing GE will provide “massive economic gains” for NZ. We need them.

The Thais have a few things over us Kiwis

Meaty matters

A technique to induce specific targeted changes in an organism’s existing genome to achieve a specific desired outcome. Transgenic modification, often crossing species boundaries, is typically excluded from this definition.

Genetic modification

A technique to change the characteristics of an organism by modifying its genome. What technology and resultant organisms are encompassed under this definition varies by country.

Gene technology

Gene technology is any modern technique used for modifying genes. Products of gene technologies can be used in areas such as human and animal health, medicines, and food production.

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

AWEEK on Thailand’s Koh Samui and Koh Phangan islands provided a great escape from a cold and sometimes wet winter without having to stress about the lawn getting out of control, as well as a complete break from New Zealand’s eternal debates in the media about

everything that’s wrong in this country. I hadn’t realised just how depressing exposure to politicians indulging in puerile arguments and constant whingeing on radio, TV and in the papers can be.

So it was good to have warm weather, sun, beach and pool, to be able to avoid TV and to be exposed to a country where the people genuinely appear to be happy.

I am not unrealistic enough to confuse a holiday in tropical conditions with the realities of everyday life in a temperate climate, but there were some signs the Thais have a few things over us.

We were there to visit my wife’s son, who has been living there for over a year and intends to stay longer, because he likes it so much and, as a diabetic, finds the health system very easy to navigate with no problem receiving care and medication.

As a more mundane example I was able to buy antibiotics for an insect bite from a pharmacy; in New Zealand, a doctor would have to have prescribed them.

In the towns the traffic speeds are moderated by simple strips across the road at regular intervals, probably costing no more than a few hundred dollars, compared with the monstrous humps and judder bars Auckland Transport finds it necessary to install.

The sensible use of cones was also a relief compared with the horrendous waste of manpower, cones and traffic control whenever a minor repair is undertaken here. The price of very palatable food is substantially lower than in New Zealand, no doubt because the overheads, wage costs and raw material are all cheaper. Although Thailand is certainly not an expensive destination compared to many others, eating out merely served to emphasise just how costly everything has become here. Any involvement with animals and livestock was minimal, although a dog adopted us at one hotel, insisting on coming into our poolside room when the door was open; we also visited an elephant sanctuary, having the

EXCUSES: Alan Emerson applauds Science Minister Judith Collins’s courage in making a decision on gene editing when, he says, politicians over the decades have made ‘idiotic, irrelevant and stupid’ excuses not to.

Olympic lessons from a childhood on Taranaki farm

Eating the elephant

Rebecca Scown Scown, guest columnist on Eating the Elephant this week, is a former rowing World Champion and a holder of two Olympic medals, the 2012 Bronze and 2016 Silver

In this series, the team reflect on what the Olympics mean for

IHAVE vivid memories of my childhood on the farm.

Most of my days were spent unsupervised – building huts, riding motorbikes and ponies, raising calves and lambs, hitching sleds to cars, and of course, lighting the occasional fire. I was lucky that such good, clean fun defined my early years. When I was four, our horse stud transformed into a dairy farm. The horses, along with my carefree weekends and Christmas mornings, were soon replaced by early starts in the milking sheds. This transition stands out in my memory. I didn’t enjoy it much –

chance to feed them watermelon and pumpkin slices (did you know an elephant’s trunk has 70,000 muscles in it?), and a snake farm where we watched a live show featuring pythons and cobras.

From an agricultural perspective, Thailand is the world’s secondlargest rice exporter after India. The start of the rice-growing year is marked in May by the Royal Ploughing Ceremony, dating back to the 13th century. When the first monsoon rains appear, farmers plant seeds into seedbeds, traditionally plough their paddies with water buffaloes and transplant the seeds when they reach about 15cm.

The whole community shares this back-breaking work, standing for hours with their “backs to the sky, faces to the earth”, generally in high spirits with much joking and singing.

Harvest is in November or December, normally performed with a scythe through the stalks, before threshing to remove the chaff, usually done by hand, bagging and storing in the rice barn. Through the growing season farmers venerate the goddess of

perhaps because it signalled my shift from carefree childhood to work and all the responsibility and new mindsets that come with it.

Becoming an Olympian was never something I envisioned as that farm kid. Watching the Olympics on television, I saw the athletes as superhuman – certainly not people from a dairy farm in Taranaki.

While sport was something I loved, I didn’t stand out at all athletically growing up. Attending a small primary school didn’t help – at one point we had a roll of only eight kids, three of whom were my brother, my sister and me.

At that size, we weren’t even able to form teams for most sports. So I soon found myself drawn to swimming and spent hours going up and down the pool, knowing even then that you had to work hard to see results.

Looking back, that was just one of many lessons the farm helped me to learn that would prove invaluable in my Olympic rowing career.

Another lesson learnt growing up on the farm was to take initiative. If a job needed doing, simply get on with it. Don’t wait for someone else and make room to blame others or shirk responsibility.

In my Olympic career, that selfreliance and responsibility looked like heading out for a threehour cycle or logging an extra 30 minutes on the rowing machine, on top of a hard week of squad training.

It’s about refusing to take the easy option over the one that

rice, Mae Phosup, who is invited to take up residence in the barn when harvesting is complete to protect the crop from disease or theft by rats. This last ritual is performed by women, since if men were left alone in the barn with the goddess, they would be unable to control their desire for her!

While Thailand is very different in some respects from New Zealand – land mass, population,

The ability to stop, re-assess and adapt helped us to focus on what actually made the boat go faster.

will see you win in the end. It’s surprising how, even at the elite level, many athletes struggle to be honest with themselves about their how efforts and performance match (or don’t).

The next lesson the farm taught me, however, was that self-reliance has limits too. From my time covering for others in the milking shed, relying on neighbours, competing in Olympic teams and working with others post-sport, I’ve come to understand how vital strong, supportive teams are for reaching goals and truly enjoying the journey.

I recall clearly a breakthrough session with my Under-23s coach,

climate and trade profile – both countries share several features: tourism is of major importance, but has fallen since before covid and is not forecast to return to pre-covid levels until 2025 at the earliest; goods exports have been adversely affected by a downturn in world trade, particularly with China; inequality is very high with over half of Thailand’s wealth held by 10% of the population;

Marion Horwell, when the rhythm and timing finally clicked. We were trying to achieve a more efficient rowing action – putting the catch in at the “off beat” and “riding the boat”.

Marion’s excitement when I “got it” was electric. It made me excited too. From then, that rowing rhythm locked in me for life, and my timing in the boat turned into one of my best assets.

The final lesson from the farm is about getting comfortable with failure and change. My London 2012 pair partner Juliette (Haigh) Drysdale and I had been World Champions for two years at that stage.

We were used to winning. This time, though, we found ourselves beaten in our heat by five seconds to a crew we’d never lost to and with a disappointing time.

We had a choice in that moment. Change what we were doing, or stick to what we had always done. Accepting that a change

per capita productivity is poor and falling; an ageing population will consume an increasing proportion of the healthcare and welfare budgets; and the quality of education, poor literacy and numeracy threaten to result in a skills crisis.

The political environment in Thailand is very different from New Zealand’s. It remains a kingdom in which the king is compulsorily revered, although the present monarch enjoys far less love and respect than his father.

In spite of significant economic growth since World War 2, there have been many devaluations, changes of government from military to democratically elected and back again, and major fluctuations in GDP. However, over the past 70 years, Thailand has progressed from a mainly agrarian economy through import substitution with light industry, textiles and food processing to an export-led economy, mainly based on heavy industry, energy and tourism.

Thailand’s next phase is planned to be a high tech economy capable of producing value-added products

was necessary, we worked on our technique and race plan –executing in the final to come away with the bronze.

The ability to stop, re-assess and adapt helped us to focus on what actually made the boat go faster – rather than wasting time on a once-promising, but ultimately flawed path.

Since competing at the Olympics, you could say I’ve come full circle. These days, I run a charity called Youth Experience Sport (YES) in London, supporting disadvantaged young people to develop life skills through sport – as opposed to calf raising, motorbike riding and light arson.

After all that sport has given me, helping young people benefit in the same way is incredibly rewarding.

Even now, I feel those first years on the farm guiding me. London and the Olympic spotlight might seem a long way from a Taranaki milking shed, but not for me.

and services, but sceptics point to the low internet uptake among Thais and a lack of specialist skills as obstacles to achieving this goal.

The sensible use of cones was also a relief compared with the horrendous waste of manpower, cones and traffic control whenever a minor repair is undertaken here.

New Zealand and Thailand benefit from various free trade agreements, which result in approximately $4 billion of two-way trade of Thai exports of delivery trucks, cars and air conditioning units compared with New Zealand’s main exports of milk powder, butter, cheese, beef, crude petroleum, apples and pears. This confirms Thailand’s progress towards value-added, industrial products, whereas New Zealand’s economy is still firmly based on agricultural commodities, supplemented by tourism.

NZ ag

HARD ROW: Olympic rower Rebecca Scown says it’s ‘surprising how, even at the elite level, many athletes struggle to be honest with themselves about their how efforts and performance match (or don’t)’.

WAY TO KOH: Leisurely island-hopping in Thailand left Allan Barber admiring many things about the country.

It’s been a matter of trust for Neil Bateup

The outgoing chair of the Rural Support Trust has been guiding the community organisation since its inception. Gerald Piddock reports.

FOR 20 years, Neil Bateup has been synonymous with the Rural Support Trust.

The trust, run by farmers to provide assistance to farmers during adverse events or other times of stress has grown from a handful of farmers based in Waikato to a nationwide organisation of around 350.

Bateup says it will be the people he has worked with over the years to make the trust what it is who he will miss when he steps down as its national chair.

“There’s been some fantastic, like-minded people that are out there to help and they’re not there for what they can get out of it.”

He will remain as trustee on the national trust and continue as trustee and chair of the Waikato Hauraki Coromandel trust.

The Rural Support Trust is staffed by farmers who are not trained counsellors or farm advisers and 20 years later that has not changed, he says.

“We provide support mentally for people and work alongside them and help them and help them develop a plan to go forward.”

When dealing with a farmer needing help, listening and not judging is key. The trust’s members are also farmers themselves, many of whom have experienced the highs and low of the industry, he says.

“The advantage we had is that we are farmers talking to farmers. We weren’t selling them anything, we weren’t charging them anything. It was free, confidential support.”

This allowed them to quickly establish a rapport over the kitchen table and a cup of tea, work out what the issues are and establish a plan, he says.

Bateup firmly believes it’s that approach that has enabled the trust to grow into the institution that it is today where it can respond to all types of farmers across the primary sector.

If a farmer requires professional

help such as a counsellor or a farm adviser, the trust uses its network of contacts to help connect them with that person.

The trust then steps back but makes sure the farmer goes to the appointment and will check in if required.

That nationwide network is critical to the trust being able to make a difference in farmers’ lives.

It also works closely with other organisations in the primary sector and local or central government when required to coordinate a response to an adverse event.

Its response to Cyclone Gabrielle highlighted to Bateup the strength of having a national council because it allowed them to properly coordinate its resources to the regional trusts that needed it most.

“When Gabrielle first hit, the phone started going crazy and with one coordinator in each district answering the phone, the workload was too great so we got a number of the trusts that weren’t affected and got the phones diverted to the ones not affected by the cyclone and they triaged a lot of the calls that came in.”

The advantage we had is that we are farmers talking to farmers. We weren’t selling them anything, we weren’t charging them anything.

Neil Bateup Rural Support Trust

The trust was created in 2004 after Bateup along with a few other farmers had attended a financial presentation in Hamilton.

At the time, Bateup and wife Eileen were full-time dairy farming at their 240 hectare 670 cow farm near Tahuna in Waikato.

They started talking about how there was nowhere for farmers to turn to when pressure came on them – whether it be mental,

financial, employment or marital.

“There was nothing there to help people. It was the fact that when people come under pressure, it’s good to have someone to talk to and share their issues with.”

A meeting of local farming leaders was organised and from that, another meeting was held where the Rural Support Trust was formed with Bateup elected as chair.

They also secured funding from Federated Farmers and the DV Bryant Trust, a philanthropic trust based in Raglan.

“That’s how it started in Waikato. We kicked the trust off with very small beginnings and a small number of people.”

They also created the trust’s 0800 number that exists to this day and sent out fridge magnets to every rural mailbox in Waikato to spread word of their services.

Bateup along with fellow trustee Peter Buckley met with then agriculture minister Jim Anderton to try to get government funding to pay for an office person and someone to answer the phone.

They were told they could get some funding if trusts were set up across the country so there was an organisation in place when an adverse event happened.

“That was the start of

was a member of Federated Farmers and was involved with LIC Shareholder Council.

Getting involved in the trust was his way of giving back to an industry that had given him plenty, he says.

Attitudes to mental health have changed since the trust started and Bateup credits the work of Sir John Kirwan, Mike King and Doug Avery for helping to normalise reaching out.

“In the early days, you would never get a guy ringing up, saying that he’s got mental health problems or that he’s stressed. Now, guys do ring up saying that they’re not tracking too well.”

The Ministry for Primary Industries has been the trust’s base funder, allowing it to keep operating.

government funding and the start of the RST around the whole country.”

That funding came through in 2006 and two years later Waikato had one of its worst droughts in history, costing the country $2.8 billion.

But funding for the trust has always been an issue and as a registered charity, it runs a very lean organisation.

A huge amount of work that the trust does is free.

The most rewarding part of Bateup’s involvement with the trust has always been the gratitude from those who needed help and have bounced back.

RESOURCE: The trust’s response to Cyclone Gabrielle highlighted to Neil Bateup the strength of having a national council because it allowed them to properly coordinate its resources to the areas that needed it most.

It lifted the trust’s profile after the government gave them funding and promoted their 0800 number and proved to Bateup of its necessity as the calls from farmers needing help mounted.

The next big change came in 2017 when the National Trust was formed and Bateup elected as its chair.

It split management and governance of the RST into separate entities. It enhanced the professionalism of the organisation, allowing it to better coordinate issues such as funding by having organisations having to deal with a national body instead of each trust at a regional level.

Bateup says he never envisioned the trust growing into the institution that it is today.

“We thought it would be a small group of half a dozen people and we thought we would be able to help a few people if they ran into trouble.”

Bateup had also spent time on the Fonterra Shareholders Council,

“A lot of them we don’t hear from – which is fine – but it’s just the gratitude and the knowing that you’ve helped somebody out of a dark and difficult place and got them on track again.”

He’s also confident the trust is in a great position for the next generation of leaders to run it and maintain its core function.

Northland Rural Support Trust chair Michelle Ruddell will take over from Bateup and Mid Canterbury Rural Support Trust chair Josh Dondertman will act as deputy.

“We need it to keep developing and it needs energy and new ideas, and I’m really pleased with who’s coming into the role.

“We have a great team of enthusiastic, empathetic and dedicated people across the country, and it has been and will continue to be a pleasure to work with them.

“That said, I’m looking forward to having more spare time for fishing.”

GIVING BACK: Retiring Rural Support Trust chair Neil Bateup says the gratitude from those who needed help and have bounced back has always been the most rewarding part of being involved with the trust.

SUPPORT: Funding for the trust has always been an issue and as a registered charity, it runs a very lean organisation, says Neil Bateup.

High-res Southland map a valuable new tool

LiDAR will help farmers identify slope angles, assess erosion risks and understand drainage patterns, reports Gerhard Uys

AFOUR-year joint project to deliver threedimensional, highresolution mapping of Southland has been completed.

Environment Southland’s general manager for strategy, policy and science, Rachael Millar, says LiDAR will provide significant benefits to a wide range of users across the region.

LiDAR refers to an airborne remote sensing method that uses pulsed lasers to measure variable distances to the earth, generating a precise, three-dimensional model of the earth’s surface and features.

Previous elevation maps showed

contours only down to 8m, whereas LiDAR allows people to zoom right down to 1m in rural areas and down to 20cm contours in some urban areas.

The founder of Invercargillbased environmental consultancy Land and Water Science, Clint Rissmann, says LiDAR is a significant step towards bringing the resolution of environmental data down to a scale that’s more in line with what farmers already know about their land.

“Historically, our topographic layers have been pretty limited, making it difficult to accurately assess slope and topography.

“Farmers, on the other hand,

MODEL: LiDAR refers to an airborne remote sensing method that uses pulsed lasers to measure variable distances to the earth, generating a precise, threedimensional model of the earth’s surface and features.

make decisions every day based on a much finer understanding of their landscape.

“LiDAR is probably the first real step towards bridging that gap between those often coarse datasets and something much more tangible and relevant to farmers.

“From my experience, when farmers see scientific outputs that truly reflect the realities of their property, they’re more likely to use and trust that information – just like anyone else.

“If the data resonates with what they know about their farm, it becomes a valuable tool in their decision-making process.

“LiDAR is particularly useful for identifying slope angles, assessing erosion risks, and understanding drainage patterns on the farm.

“It can also provide farmers with the type of physical detail needed for planning future developments, investments, and mitigation strategies.

“It’s really an exciting advancement for New Zealand’s agriculture sector.”

The project was partly cofunded by the four Southland councils and has taken four years and thousands of hours in data collection, processing, and checking.

New ways to explore farm ownership

Bryan Gibson TECHNOLOGY Land

TIRED of reading about the problems faced by young farmers looking to get into farm ownership, Sarah How decided to do something about it.

The Mid Canterbury arable farmer teamed up with friend Tara Dwyer to launch Landify – an online space that brings together farmers looking to sell, investors and those hoping to buy a farm of their own.

“We have an ageing population of owner-operators on farm in New Zealand and we know that many of them are looking at ways to step back,” How told the Farmers Weekly In Focus podcast.

“At the same time, we know that our communities are full of really engaged, really capable young people who want to have a crack, but whether they’re from farming backgrounds or not, these guys are in no position to front up with meaningful amounts of capital to compete in the open market.”

Landify provides the platform where stakeholders on both sides of the transaction can discuss ways to make it work, whether it

be through equity partnerships, leasing agreements or by finding other investors.

“We think that many of these arrangements are underexplored, because how do families explore them in a really safe and discreet way that meets their needs before making any major decisions?

We think that many of these arrangements are under-explored, because how do families explore them in a really safe and discreet way?

Sarah How Landify

“We see Landify being New Zealand’s first modern, open access yet discrete way for people to explore a range of farming partnership possibilities.”

The site was launched this month and interest has been strong, with thousands of people watching the launch video and exploring the site.

Vendors can post listings there as a way to kick off a conversation with interested buyers.

in a range of applications for councils.

It can also provide farmers with the type of physical detail needed for planning future developments.

Clint Rissmann Land and Water Science

“The region hasn’t had a tool before that provides such detail and it is going to be particularly useful in planning for Southland’s future,” Millar says.

“The council will use it for flood modelling, coastal inundation mapping and to help with farm planning, to name a few.”

The resulting high-definition maps and models are being used

These include hazard planning, infrastructure planning and policy development, farm mapping, and understanding landscape changes and catchments’ hydrological processes such as stream flow estimation and catchment size, Millar says.

Ten regions partnered with Toitū Te Whenua Land Information New Zealand to obtain a baseline elevation data set.

Co-funding between Southland’s four councils and the Ministry of Business, Innovation and Employment Kānoa Provincial Growth Fund supported the regional expansion of Toitū Te Whenua’s 3D mapping programme to provide a significant increase in national coverage, Millar says.

How said there are many young, eager people willing to take on the challenge of farming but often that first hurdle is too high.

“It’s my generation that’s going to be the ones who are given the responsibility to stand up to all of the sustainability challenges that our industry is facing, and I don’t just mean environmental sustainability; I always talk about financial sustainability and social sustainability.

“What we’ve seen in New Zealand’s history is that where our farmers have had their own autonomy and their opportunity to innovate behind the farm gate and find solutions to the latest market challenges, that’s where we come to the fore and this is why New Zealand farmers are among the best in the world.

“We want to make sure that we’re future-proofing our ownership models to allow for the next generation to have that autonomy and that ability to craft the future for themselves.”

Those interested in being involved should visit landify.co.nz

MORE:

Listen to the whole interview on Farmers Weekly In Focus, wherever you find your podcasts.

FAR puts AI at growers’ fingertips

Annette Scott TECHNOLOGY Arable

IN A first for New Zealand, the Foundation for Arable Research has upgraded its website search function to bring growers into the world of artificial intelligence.

The upgrade sees the introduction of a new tool designed to help find and summarise information on the FAR website.

FAR communications manager Anna Heslop said the tool, Ask FAR, is unique to NZ.

It is being held up by Amazon Web Services and NZ designers Custom-D as a cutting-edge application of generative AI technology.

Ask FAR will only consider information from the FAR website so you can be certain that answers are based on independent NZ research.

Anna Heslop FAR

Ask FAR solves that problem by doing all the searching, summarising the information available and providing referenced links to the full documents, on the FAR website.

“Ask FAR will only consider information from the FAR website so you can be certain that answers are based on independent NZ research.

“Our website contains thousands of research reports and extension documents relevant to growing and harvesting many different crops; as such, identifying the one document that will provide the information required to address a specific question can be tricky,” Heslop said.

“For example, if you Ask FAR, ‘When should I put N on ryegrass seed crops?’, it provides a summarised answer where key points are directly referenced to one of 18 documents on the website.

“Using the standard search function, you would just get the list of 18 documents and then have to go through them to find specific information.”

Ask FAR went live on August 5 and can be accessed at www.far. org.nz/ai or from the ribbon at the top of the website homepage.

VALUABLE TOOL: Founder of Invercargill based environmental consultancy Land and Water Science Clint Rissmann says when farmers see scientific outputs that reflect the realities of their property, they’re more likely to use and trust that information and it becomes a valuable tool in their decision-making process.

Photo: Gerhard Uys

Sector Focus

Where business is blooming

FLOWER-growing is in

Peter Rensen’s DNA.

The Netherlandsborn owner of Utopia Nurseries west of Pukekohe in South Auckland said he has never considered doing anything else.

“[I am] a Dutchman, I come from a growing area and that’s all they did – grow vegetables in glasshouses or flowers. Over there, it’s the done thing.”

Rensen brought that passion to New Zealand, where he has run his flower export business since 1991, growing orchids, chrysanthemums and ruscus mainly for the export market.

His business was the supreme winner for the Auckland region in this year’s Ballance Farm Environment Awards.

When Rensen bought the land west of Pukekohe it was a market garden, growing fruit and vegetables. He owns just under 32 hectares with 2.5ha used for his Utopia Nurseries flower business. He rents much of the land to growers for horticulture production and 6ha has been put aside for riparian and wetland development.

Utopia Nurseries has a packhouse connected to the three large greenhouses that are all connected to each other.

Separate from the greenhouse is a shade house dedicated to growing Italian ruscus, a leafy plant whose branches are cut and sold for bouquets.

He has 12 staff with around 10 kept on all year round. It’s a labour-intensive industry with technology yet to catch up and automate it, he said.

Around 65% of his flowers are exported, mainly to China, Japan, the United States, Australia and Canada.

The rest are sold in New Zealand supermarkets.

Rensen exports the flowers either through a third party, or by dealing directly with the customer in the market.

The orchids are sold on a perstem basis with a good stem selling for $7-$8. On the retail market, that price can be as high as $20-$25.

Each stem has around 12-20 flowers, depending on the flower size.

He estimates Utopia exports 10,000-12,000 boxes of orchids with each box containing 10-15 stems carefully wrapped in plastic by the packers.

“And that’s just the orchids. We probably do 150,000 stems of the ruscus plus 130,000 pot plants of chrysanthemums.”

Overall, he has around 15,000 ruscas plants, 23,000 orchids and 40,000 chrysanthemums in the greenhouses.

The chrysanthemum pots are relatively new for Rensen, who started selling them just over a year ago.

The biggest challenge with exporting flowers is that they have to not only look perfect but be free of bugs. The exchange rate can also be an issue, especially in the Japanese market, but the US dollar has been fairly stable for a while, he said.

It takes about five years for

an orchid plant to grow from a seedling to produce flowers and it can last for 25-30 years.

“You have to be very patient in this game. After that they produce more and more every year as the plant grows bigger, so there’s a big outlay at the beginning and then you have a yearly income.”

He grows white, pink and reddish-orange orchids. Every year, the plant grows shoots that grow into flower-producing stems. Once the shoot has finished flowering in this year-long process, it will create another shoot to flower the following year.

“You work a year ahead of yourself, trying to grow a good shoot for next year’s flowering.”

The orchid comes from cold,

high country in Vietnam and is a winter-flowering plant, making April to October Rensen’s harvesting months.

He installed a rail conveyer system on the greenhouse ceiling to transport cut orchid stems from the glasshouses to the packhouse with minimal handling.

This innovation is a long metal holder that is attached to the conveyer with rubber holders on the bottom that are flexible enough to safely hold and transport the stems from the greenhouse to the packhouse where they are checked and packed.

Fine string is attached to the stem to help the plant grow the stem as vertical as possible.

GREENHOUSES: Utopia Nurseries owner Peter Rensen grows around 23,000 orchids as well as 15,000 ruscas plants, and 40,000 chrysanthemums at his greenhouses west of Pukekohe.

Gerald Piddock NEWS Exports

CARRY: A conveyer system is used to carry the cut stems from the greenhouse to the nearby packhouse.

SHADED: Utopia Nurseries also grows around 15,000 ruscus plants in a shaded greenhouse that are used for greenery in bouquets.

Off season, the staff are potting and crop monitoring and doing maintenance.

In contrast, the chrysanthemums are a year-round flower, allowing Rensen to plan exactly when they will be produced.

It is a more technical crop to grow, but a lot faster, taking 12-13 weeks from planting to when it flowers and is sold.

“It’s quicker than orchids, but more challenging and logistically different.

“Orchids are more of a conservative crop, everything is the same and if you wanted to

You have to be very patient in this game. There’s a big outlay at the beginning and then you have a yearly income.

Peter Rensen Utopia Nurseries

change varieties, it will take you a long time.”

The ruscus plant is planted straight into the ground in the shaded greenhouse and, like the

orchid, has a long life. Branch cuttings are taken from this plant once it is mature.

Water is supplied for the greenhouses via a bore and Rensen uses an automated hose system to irrigate the plants three to four times a day.

With so many market gardens in the district, insect pests are a major concern and Rensen uses insect predators to keep them under control.

These predator bugs are bought in and released to live and feed on insects among the orchids. This reduces the need for sprays,

although they are still required for the chrysanthemums.

Regular soil testing is completed with crop-specific recommendations implemented, resulting in healthy plants.

Heating in the greenhouses is controlled by a computer that keeps the temperature at 12degC for the orchids and 15degC for the chrysanthemums.

Over the summer, the greenhouse roof is painted with a white chalk shading paint to keep it from getting too hot.

Rensen uses waste oil collected from garages and power stations

to power the greenhouse and keep electricity costs down.

Labour is his biggest cost because of the nature of flower growing and cutting. It is something Rensen would like to change by using more technology, but it is not quite available and cost effective yet.

Looking ahead, Rensen has plans to build another greenhouse next to the existing one that would be fully automated and take advantage of some of the new technology on offer.

“That will be an interesting next step for us.”

UPRIGHT: String is attached to the orchid to encourage the plant to grow stems as straight as possible.

FASTER: It takes Rensen around 12-13 weeks to grow a chrysanthemum from planting to when it flowers and is sold.

A time of challenges, resilience and growth

The past four years have tested farmers and growers as much as any in the previous decades and probably more.

Sector perspective

THE Horticulture

New Zealand annual conference in Mount Maunganui at the end of this month will be my final engagement with stakeholders as chief executive of the organisation. As I prepare to step down from a role I have thoroughly enjoyed for the past three and a half years, it seems a good time to reflect on the challenges our sector has faced in

that time and the changes we have achieved or set in motion.

I have worked in the primary sector for 30 years and I think it’s fair to say that the past four years have tested farmers and growers as much as any in those previous decades and probably more.

The covid-19 pandemic and extreme weather events, most notably cyclones Hale and Gabrielle, came as hammer blows in rapid succession.

All this while the rural sector was working to navigate an unprecedented flood of legislative change and increased costs, including high interest rates.

I’m proud of the way our team sprang into action, focusing on providing continued relief, advocating for long-term support and ensuring practical resources were available to growers.

After so many years working in the sector, I knew all about the indomitable spirit of growers, but I was still humbled by the determination and the drive of the sector to pick itself up in the wake of the devastation and set about restoring and rebuilding.

I will never forget the many exceptional examples of resilience, passion and tenacity I encountered in those difficult times.

Throughout all of this, there was still the “business as usual” to get on with too, as well as changes to be driven, and I have been

very fortunate to have had such a passionate, skilled and dedicated team.

They have worked to facilitate sector access to government and

I will never forget the many exceptional examples of resilience, passion and tenacity I encountered in those difficult times.

to get ministers and officials out in the fields, to meet with growers and see the challenges and constraints they are dealing with.

Our policy team has been dogged in its focus on working with local authorities and central government to streamline processes and outline where existing or proposed policies are untenable, unworkable – or both.

We have lobbied relentlessly for regulatory changes to reduce the bureaucratic burden on growers and have advocated strongly for long-term, sustainable solutions to support growers in the wake of natural disasters.

This has included lobbying the government on water policies and calling for approaches that support sustainable water management practices – as well as for infrastructure investments in water storage and flood protection.

We’re pleased with the

adjustments to the Recognised Seasonal Employer scheme policy settings.

Seasonal labour is one of the major challenges for growers and this unique scheme plays such a vital role in our rural economy.

I leave feeling very positive for the future of the horticulture sector and its ability to grow and thrive sustainably and continue to make a valuable contribution to the food security of all New Zealanders and the economy.

Champion needed to get food strategy cooking

IF NEW Zealand is ever to have a national food strategy, it will need a champion to drive it from being a concept to reality. That champion will probably have to come from central government, Te Whare Wānaka o Aoraki Lincoln University’s Professor Alan Renwick said.

Calls for a national food strategy have been around for a few years and while the previous government had shown enthusiasm, it had not moved beyond being just an idea. One hurdle the strategy faced was who would have responsibility for it, given that for it to work it would have to encompass central government, consumers and food producers.

This is why a champion is needed, he said.

“It would need to come from government. You can have grass roots, but they can only do so much.

“If we are going to have a food strategy, it’s got it fit in with government policy for food.”

The strategy would encompass both food affordability and availability in a climate affected world – while simultaneously not interfering with exports.

DIVERSIFY: When Cyclone Gabrielle hit, 30% of fruit and vegetable production in one area was impacted. It raised the question of whether we should consider diversifying where New Zealand grows its food, the type of food that is produced and where it is exported to.

The strategy cannot trade one of these off against the other, he said.

“We need to have a holistic view of the whole food system, the environment, the economics, the social and the health, thinking about what is it that we want from our food system and how can we make sure that our policies in what we do are coordinated around that.”

Another issue is finding a solution to food affordability where so much of the food that

is grown has its price set by the export market and was hard to influence.

There were other solutions such as revisiting the debate over whether GST on food could be removed.

Renwick described the current situation in NZ as a “food system in disarray”.

“We have major challenges with waste – up to one-third of the food we’re producing is not being consumed. This, coupled with a

food system incurring high input costs, means we are using costly resources to produce food that is thrown away.”

We need to understand how our food system and supply chains differ from other countries.

Prof Alan Renwick Lincoln University

There is a need to address both productivity and profitability. The country’s productivity growth rates have declined since 2000, with the primary sector unable to produce more with the same or fewer inputs.

The sector is also struggling with profitability, with the relative price of inputs often rising faster than outputs.

The rise in food inflation in New Zealand since 2021 has resulted in further challenges for families who were already food insecure.

“A World Vision study showed that our price spike was higher and slower to come down than other countries’. We need to understand how our food system and supply chains differ from other countries.

Is it that supermarkets have too little competition?

“Is it a consequence of our export-focused primary production that is detrimental to our food supply?”

There are also tensions between the importance of exporting primary produce and an increasing call for greater availability of locally grown food to consumers.

The first step in forming a strategy comes from building a more resilient system.

This could come from diversifying systems and moving away from the current model of specialisation that has made New Zealand more vulnerable, particularly to extreme weather events such as Cyclone Gabrielle.

When that weather event hit, 30% of fruit and vegetable production in one area was impacted. It raised the question of whether we should consider diversifying where New Zealand grows its food, the type of food that is produced and where it is exported to.

This would build the country’s level of resilience.

However, bringing that down to a farmer level where farmers make decisions inside the farm gate where economic returns are a major driving force was the challenge, he said.

“It’s not just going to happen. They need the right signals to make it happen.”

CHALLENGES: The covid-19 pandemic and extreme weather events, most notably Cyclone Hale and Cyclone Gabrielle, came as hammer blows in rapid succession, says Nadine Tunley.

Nadine Tunley Tunley is chief executive of HortNZ

Gerald Piddock NEWS Food and fibre

Global growth is key to Zespri strategy

Capturing market share hinges on more northern hemisphere hectares to keep up supply during NZ’s off season.

Sector perspective

Nathan Flowerday Flowerday is chair of the Zespri board

ZESPRI’S strategy is to build demand ahead of supply and capture the value for New Zealand kiwifruit growers. With an outstanding product and continued investment in innovation, our supply chain and a strong brand, we’re able to grow value year on year.

We’ve invested in listening to our consumers. We’re led by our markets and we tell our story well, ensuring our consumers see that Zespri Kiwifruit is “worth more than it costs”, by validating and promoting the health benefits and quality of our kiwifruit with consumers all around the world, particularly in our key markets of China, the European Union and Japan, which continue to perform. This approach has been a

cornerstone of Zespri’s success; it’s how we were able to sell around 20% less kiwifruit in 2023/24 but increase revenue from $3.92 billion to $3.99bn. And it is how we will continue delivering value in the years ahead.

A good case study comes from our SunGold-led relaunch in the United States in 2015, when we used a full portfolio of quality product under a strong brand to lift value across all varieties and benefit all growers.

Although the launch was led by SunGold, the US is now among the top returning markets for Green, with grower returns increasing 138% between 2015 and 2023 (the average increase in other markets was 81%).

The demand that we’ve created gives us more opportunity to grow, but our competition has spotted the supply gap and is investing to fill it.

New consortiums, brands, and varieties are entering the market and taking some of our market share. That’s business – what matters is how you respond – and for Zespri being able to supply the world’s leading portfolio of branded kiwifruit to key customers in key markets for 12 months of the year is critical.

It helps us to build the brand, maintain our partnerships, and hold onto our shelf space in the face of this intensifying competition. The outlook for kiwifruit is positive with demand forecast to continue increasing ahead of supply and our markets telling us they want more of our fruit. We need to be able to fulfill

My belief is that the biggest risk now is not acting to protect and grow our value.

that demand with our own supply. It sounds simple, but kiwifruit is seasonal, so we need to have vines in both hemispheres to provide year-round supply and hold our space.

This is why for almost 25 years, Zespri has been growing kiwifruit in the northern hemisphere via Zespri Global Supply, or ZGS. We work with growers in Italy, France, Greece, Japan, and South Korea to produce Zespri SunGold and to procure Zespri Green kiwifruit to supply our key retailers when New Zealand fruit is out of season.

They are subject to strict quality controls, like our New Zealand growers, so we can be confident that their fruit lives up to the brand values we have all worked so hard to create.

This northern hemisphere supply will help us to compete strongly and maintain our position as leaders in an increasingly competitive category, if we can grow more fruit.

However, our ability to supply more is limited by the cap of 5000 Zespri SunGold hectares able to be planted in those locations. We cannot extend this cap without what’s called a Producer Vote, where all New Zealand kiwifruit producers vote whether to approve (or not) proposals put forward by Zespri.

This is why we’ve been working with growers as we consider

GROWING AMBITION:

Zespri hopes to extend the cap of 5000 Zespri SunGold hectares permitted to be planted abroad – something that is in the hands of New Zealand kiwifruit producers.

increasing these hectares to the level needed to keep executing our strategy and delivering value year on year to New Zealand growers.

The industry is very engaged in the discussion, with questions not only about the opportunity but also the risks of expansion and how we can manage and mitigate those.

It’s a fair challenge; these are the livelihoods of New Zealand kiwifruit growers and the future of their businesses.

We’ll continue managing these risks the way we have for the past 25 years; my belief is that the biggest risk now is not acting to protect and grow our value. Using our tried and tested strategy that has made us the global leader in a high-potential category, more hectares will enable us to keep building for the future.

Innovation baked in at Potatoes New Zealand

Annette Scott MARKETS Food and fibre

IT HAS been a year of growth and innovation for Potatoes New Zealand, giving it every reason to celebrate as it marks its one-year anniversary under chief executive Kate Trufitt.

DIG IT:

Despite the challenges, NZ’s humble spud is poised for future international growth.

Trufitt, who took the helm in August last year, has earned industry praise for her leadership, championing the interests of potato growers and driving innovation.

Reflecting on her first year, Trufitt shared her enthusiasm for the role at Potatoes NZ, which represents the interests of NZ’s potato growers and the wider potato industry.

“It’s been an incredible journey so far, she said.

“I’m honoured to lead such a dynamic industry and work alongside a team that shares my commitment to growth and excellence.

“The potato industry is crucial to NZ’s economy and I’m excited to continue advancing initiatives that support our growers, enhance our research, and promote our potatoes both locally and internationally.”

Key highlights in the year include Potatoes NZ securing a 94.74% approval for the proposed commodity levy from the eligible voting growers, reflecting broad support from the sector.

Trufitt has played a pivotal role in the development of Potatoes NZ’s Strategy 2028.

Shaped by extensive grower consultation and industry feedback, the strategy aims to guide the sector’s growth and resilience over the coming years.

Community engagement has been a key focus with Trufitt dedicated to strengthening connections within the potato community, including direct visits to growers and stakeholders, ensuring they have the support necessary for success.

Recognising the importance of research and development, Trufitt has fostered partnerships with leading research institutions to drive advancements in potato breeding, pest control, and disease management.

Together we can ensure that NZ potatoes remain a staple on tables across the country and beyond.

Kate Trufitt Potatoes NZ

Looking to the future, she is enthusiastic about expanding Potatoes NZ’s international presence and further advancing practices that will benefit the industry for generations to come.

“There’s so much more we can achieve,” she said.

“I’m excited about the future and the possibilities it holds for our industry.

“Together, we can ensure that NZ potatoes remain a staple on tables across the country and beyond.”

FEDERATED FARMERS

Vol 2 No 33, August 26, 2024

Banks have nowhere left to hide

Abright light is about to be shone on parts of the rural banking system that have been allowed to operate in the shadows for far too long, Federated Farmers say.

Earlier this month the Government announced the longawaited terms of reference for the select committee inquiry into banking.

Richard McIntyre, Federated Farmers banking spokesperson, says the broad scope of the inquiry has well and truly hit the mark for farmers and rural communities.

“When the banking inquiry was first announced back in June, we did have some initial concerns about just how ‘rural’ it would actually be.

“There was a very real risk that the issues most important to farmers and rural communities would end up playing second fiddle to more urban issues.

“It’s safe to say those initial concerns we had have been safely put to bed. The inquiry is well placed to shine some muchneeded light on all the right areas.”

McIntyre says everything Federated Farmers wanted to see included in the terms of reference is in there.

“The committee is going to be asking plenty of probing questions about rural banking competition, transparency mechanisms, credit risk models, and open banking.

“It will also be looking into how farmers’ interest rates are affected by the Reserve Bank’s approach to greenhouse gas emissions risk,

including risk of government policy.

“We also need to find out what impact the banks’ environmental and sustainability policies are having, or could have, on our lending rates too, so it’s very good to see that’s part of this inquiry.”

McIntyre says he’s particularly pleased to see the inquiry will be taking a closer look at the impact of Reserve Bank capital requirements and risk models on the interest rates farmers pay.

Farmers have been asking serious questions about the levels of competition, profitability and transparency in rural lending for a long time now.

Richard McIntyre Federated Farmers

“We’ve been concerned about this for a long time now, and farmers definitely deserve to know how that system is affecting their bottom-line.

“The capital holding rules are meant to protect our banking system against a one-in-200-year shock, but is the medicine worse than the disease?

“I’m also really happy to see that there are some very specific questions about the return on capital banks are getting from rural lending and the level of interest rates charged to the sector.”

Access to banking services in rural areas, including access to cash services, is another area to be investigated in the inquiry.

“That’s been a major issue for our farming communities for a long time now, as we’ve seen rural branches closed one after another across the country.

“Farmers are running complex businesses and they often need to speak with their local bank manager in person, especially in challenging economic times like we’re going through right now.”

McIntyre says the inquiry will leave no stone unturned.

“It’s safe to say that the banks are going to have nowhere left to hide.”

“Farmers have been asking serious questions about the levels of competition, profitability and transparency in rural lending for a long time now.

“It looks like we’re finally going to get some answers.”

McIntyre says the involvement of Parliament’s Primary Production Committee will also help ensure there’s a strong rural focus to the inquiry.

“That gives us a lot of confidence that we’ll get the answers we need, and which farmers have been asking for a long time now.

“Many of those committee members live in rural communities and have practical hands-on farming experience.

“They’ll know exactly which trees to shake and which stones to look under.”

Keen to st ar t your digit al journey ?

Thanks

Federated Farmers will be engaging in the select committee process and making a comprehensive submission on behalf of members.

“We’ve been leading the charge to get this rural banking inquiry over the line but now’s not the time for us to back off – there’s still a big job to be done,” McIntyre says.

“We need to make sure the rural voice stays front and centre during this process so we can find some genuine, practical and rapid

solutions that will improve the lives of farming families.

“Having an inquiry is great, but the job’s not done until we get real and lasting change for farmers.”

McIntyre is encouraging farmers to make their voice heard too.

“It will really make a difference if farmers can share their personal experiences of the rural banking system confidentially with the inquiry.”

The closing date for submissions is 11.59pm on Wednesday, 25 September 2024.

GOOD TERMS: Federated Farmers banking spokesperson Richard McIntyre says he’s happy to see that there are some very specific questions about the return on capital banks are getting from rural lending and the level of interest rates charged to the sector.

Arable crowns its top performers

AManawatū farmer who achieves consistently high crop yields and generously shares his agronomic experience has been named Arable Farmer of the Year.

This year’s Arable Industry Awards, held in Christchurch on August 15, saw Simon Nitschke take top honours.

He was also presented with the Maize Farmer of the Year Award, as the industry came together to celebrate its achievers and innovators.

Federated Farmers arable chair David Birkett says he was hugely impressed by the calibre and commitment of this year’s winners of awards in seven categories.

“Arable is a sector that tends to fly under the radar a bit in New Zealand, but it punches well above its weight.

“Our growers are pivotal to domestic food staples, seed export markets and supplying the grass seed and animal grain that the bigger

dairy, meat and wool sectors rely on.

“In what’s been a tough season, the resilience and innovation of our growers has shone through,” Birkett says.

In what’s been a tough season, the resilience and innovation of our growers has shone through.

David Birkett Federated Farmers arable chair

The judging panel described Nitschke’s yields as “extremely high by industry standards” thanks to careful cultivar selection, effective management of soil fertility and optimised use of resources.

Nitschke grows up to 200ha of maize grain, and 100ha each of wheat and barley, on his farm at Marton.

His Arable Solutions business has

invested in state-of-the-art graindrying facilities and also offers a package of contracting services.

Nitschke’s industry and community credentials include involvement in the Foundation for Arable Research (FAR) Arable Research Group and the Growers Leading Change programme.

“He can be described as an ‘allrounder’ and a very worthy winner of the Arable Farmer of the Year Award,” judges said.

Another highlight of the evening was Mid-Canterbury farmer Syd Worsfold being inducted into the newly formed NZ Arable Hall of Fame.

A 40-year veteran of the industry, Worsfold holds the record as the longest-serving United Wheat Growers director and was an inaugural member of the FAR board.

Worsfold joins Dr Phil Rolston, who received the Achievement Award at the inaugural Arable Awards in 2022, in the new Hall of Fame.

See the full list of winners at arableawards.co.nz

Gene-tech conversation a positive step

Ending New Zealand’s ban on gene technology outside the lab is a good move for the country, Federated Farmers say.

The Government announced in mid-August that it will introduce legislation to end the nearly 30-year ban, saying it would bring health, productivity and climate gains for Kiwis.

Wayne Langford, Federated Farmers national president, says the announcement is a positive step forward for New Zealand.

“We’ve been advocating for a national conversation about the use of technologies like gene editing for a long time now,” Langford says.

“The last time New Zealand took a serious look at the potential use of these technologies was in the early 2000s, but the science has continued to develop at breakneck speed since then.

“Our collective understanding of some of the big global challenges we’re all facing, like climate change and biodiversity loss, has also

LET’S TALK: Wayne Langford says the Government’s announcement opens the door for us to consider all the potential benefits, weigh them up against risks, and decide how we want to move forward as a country.

continued to quicky develop over that time.

“This announcement from the Government opens the door for us

to consider all the potential benefits, weigh them up against risks, and decide how we want to move forward as a country.”

Supporting the better use of technologies was one of Federated Farmers’ 12 policy priorities for restoring farmer confidence in the lead-up to the 2023 General Election.

“Farmers are always looking for new technologies to help them improve their production, increase their profit, or reduce their environmental footprint,” Langford says.

“There are huge opportunities to help us reduce our greenhouse gas emissions, improve drought resilience, or increase our farm production using these technologies.”

He says there are also potential conservation benefits, like eradicating possums that are

spreading disease and decimating our native forests, and benefits for healthcare.

“These aren’t just imaginary concepts – they’re real possibilities.

“Of course, there’ll always be risks and trade-offs that need to be carefully considered too, like how our international consumers would feel about such a change.”

Federated Farmers will be engaging in the Select Committee process on behalf of their members to ensure legislation is fit-forpurpose and adequately addresses any possible risks.

“The potential opportunities here are too great to just leave them sitting on the table without even taking a look at them,” Langford says.

“We would be doing ourselves a huge disservice as a country if we weren’t even prepared to have that conversation.”

MORE:

ALL-ROUNDER: Simon Nitschke (right), pictured with Federated Farmers president Wayne Langford, claimed top honours at this year’s Arable Industry Awards.

McIntyre still fired up for farmer advocacy

Richard McIntyre may be standing for the DairyNZ board, but his commitment to Federated Farmers’ advocacy work is as strong as ever.

With just under a year to go in his role as Federated Farmers dairy chair, McIntyre has thrown his hat in the ring to contest the 2024 DairyNZ director elections.

“This is the last of my three years as Federated Farmers dairy chair and I’ve been looking at how I can keep adding value for New Zealand farmers,” he says.

“The more I’ve thought about it, the clearer it’s become that the DairyNZ board table is the place where I can make a real contribution and difference for farmers.”

McIntyre wants to reassure farmers that his work for Federated Farmers won’t be affected if he does get voted onto DairyNZ’s board.

“We’ve got some important work underway with the rural banking inquiry and long-term changes to immigration settings that I’m determined to see through to the end.

“There will be a process I’ll need to go through with Federated Farmers, and any conflicts will need to be carefully managed, but I don’t see any major issues.

“At the end of the day, both organisations are funded by farmers and should be working hard to deliver real value and results.”

McIntyre says the two organisations have very different roles to play as part of ‘Team Ag’, but they still need to work constructively together in a well-coordinated way.

“Many farmers are really struggling this season with increased costs and reduced incomes. It’s putting a squeeze on their profits and family’s budgets.

“There are also some serious longterm challenges that need to be addressed when it comes to filling gaps in our workforce and meeting environmental standards.

“Farmers are quite rightly looking to DairyNZ for practical solutions

that will improve productivity, increase profitability and reduce environmental footprint.”

The Horowhenua sharemilker says he’s standing for DairyNZ because he doesn’t feel those needs are currently being met as well as they could be.

I think having a sharemilker sitting around the board table would bring a very fresh perspective to the organisation.

Richard

McIntyre

Federated Farmers dairy chair

“I’d like to see DairyNZ really reconnect with farmers and focus on the areas where they can add the most value: their core functions of research, science and extension.

“Farmers are sick of seeing duplication of effort or conflicting messages across different organisations, particularly when

they’re picking up the tab for it.

“There’s also a real desire in our rural communities to see more

VISION: Richard

McIntyre believes DairyNZ needs to focus on the areas it can add the most value: research, science and extension.

McIntyre believes being a sharemilker still on a progression pathway to farm ownership is another strong point of difference for him.

“I think having a sharemilker sitting around the board table would bring a very fresh perspective to the organisation,” he says.

“Often those who put their names forward for these roles are at a stage in their career where they’re looking to step back from the day-to-day running of the farm.

“I’m a little bit different in that I’m still relatively young, working my way up through the dairy industry, and looking to further my farming career.

“I’ve still got dirt under my fingernails and know my way around the inside of a cowshed.”

McIntyre has held several governance roles outside of Federated Farmers, including stints as the chair of the NZ Dairy Industry Awards and deputy chair of Fish & Game.

He’s also completed the Fonterra Governance Development Programme and a term as a DairyNZ associate director.

“I know what good governance looks like and how to get the best out of an organisation,” he says.

McIntyre also says he’s keen to leave the door open – once his term as dairy chair ends in June next year – to a return to Federated Farmers’ leadership.

“Federated Farmers are an outstanding organisation who do so much for our rural communities and farming families, often quietly behind the scenes.

“No matter where I go, Federated Farmers and that genuine connection to grassroots farming will always be in my blood.”

Farmer voting for the two positions on DairyNZ’s board of directors will take place during September and October, with the successful candidates announced at DairyNZ’s annual general meeting on October 22.

genuine grassroots farmers sitting around our agricultural boardroom tables.”

GUIDANCE: Farmers are looking to DairyNZ for practical solutions that will improve productivity, increase profitability and reduce environmental footprint, says Richard McIntyre.

Wairoa being ‘strangled’ by poor road access

If good road access is the lifeblood of our rural districts, then Wairoa is being bled dry, Allan Newton says.

“The economic prosperity of this region is being strangled,” the Federated Farmers Gisborne-Wairoa arable chair says.

Poor road access, sky-high freight costs, and “three and a half seasons where it just hasn’t stopped raining” have hammered Wairoa’s maize growers.

Newton says Wairoa’s roading issues aren’t new – and seem to be getting worse.

“Labour leader Chris Hipkins said roads into the Wairoa region weren’t up to scratch even before Cyclone Gabrielle hit.

“Now we’ve got a new Government that many farmers put their faith in, but all we can see is a sea of road cones, with little progress.

“They’re going to spend the next few years restoring SH2 to what it was before Gabrielle – in other words, restoring a ‘not to acceptable standard’ road.

“Is it any wonder Wairoa people get pissed off?”

He says the region needs a new

59km route following the coast from Wairoa to Tangoio.

“We could have a 45-minute trip to Napier if they put a proper road in.

“The current route and state of the road just adds to our carbon footprint as traffic is held up. SH2 isn’t just a trip to Wairoa; it’s an eastern arterial route for the North Island.”

We haven’t been abandoned; the reality is we’ve never really been loved.

loved,” he says.

“Successive governments have just put our district’s issues in the toohard basket.”

Newton grew up on the family sheep and beef farm on “pretty steep, hard country” out the back of Urenui, Taranaki.

He and wife Sonya moved to Wairoa in 2013 and now have 200ha of fertile flat land where they grow maize.

For the first eight years, the weather was predictable: two or three weeks of fine weather, then two or three days of rain.

He says all of that has changed since January 2022, with regular rainfall “wetter than the wettest season that nature ever threw down on Taranaki”.

Newton, who doesn’t mince words, was named Federated Farmers’ 2024 Arable Advocate of the Year for the way he’s championed the causes of Wairoa and local farmers.

While Wairoa’s flooding issues have captured national headlines, Newton takes issue with suggestions in the media that the area has been abandoned.

“We haven’t been abandoned; the reality is we’ve never really been

“The East Coast is supposed to be getting drier with climate change, but we’re yet to see any of that in Wairoa.

“We usually plant our maize in October and harvest it in April-May, but this season it was so wet we were still planting up to Christmas and only on about 120ha of our 200ha.”

Drying and freight costs also go up the wetter the harvested maize, Newton says.

Wairoa growers are paying $100 tonne for maize freighted to the Te Puke dryer.

“Big players in the feed market import inferior grain, then mix in locally grown feed to bring it up to a barely acceptable standard, but the price offered to us is benchmarked against that.”

The upshot is Wairoa growers’ costs are about $2700 per hectare but returns are only $2200ha, he says.

Newton understands Gisborne growers, given they’re an hour and a half closer by road than Wairoa to the dryer and, thus, should have lower transport costs, are also getting offered less than they should.

Meanwhile, demand from key customers for maize grain has dwindled.

“Poorly thought-through and ideological changes in our pork and poultry industries have been a big driver of that,” Newton says

“Rule changes undercut our pork industry. Now we’re importing pork from other countries with far lower animal welfare standards.”

All these pressures are starting to add up and could force significant change in Wairoa’s arable industry, he says.

“Local growers were producing 20,000 tonne a decade ago, but that’s since dropped to around 5000 tonnes.

“Some may well be forced to switch to raising lambs or cattle, or growing apples.”

Newton says locals will need to

innovate for Wairoa’s arable sector to survive.

He’d like to see local farmers become the end users of locally grown grain, meaning grain is grown and used in Wairoa.

“We could develop a chicken or livestock feedlot system in Wairoa to eliminate grain freight cost and keep our freezing works going year-round.

“I haven’t been able to get traction with that idea yet because the banks don’t want to look at the capital investment involved in feedlots.

“But unless we innovate and come up with a solution like that, Wairoa’s farming – and the wider economy –will stagnate.”

One thing’s for sure: Newton will continue speaking up loudly for Wairoa’s farming community and advocating for the arable sector.

CHAMPION: Federated Farmers Arable Advocate of the Year Allan Newton says successive governments have put Wairoa’s challenges in the too-hard basket.

Allan Newton Federated Farmers GisborneWairoa arable chair

BUILD BACK BETTER? The Government will restore State Highway 2 to what it was before Cyclone Gabrielle, but Allan Newton says it was not at an acceptable standard then.

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Tuesday 27th August – 10.00am

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After 60 years of the family contracting business it is time to move on and pursue other interests. The equipment is off high quality, has been well maintained and purchasers can buy with confidence.

Viewing: Monday 19th & 26th August 10.00am – 4.00pm and 8.30am day of sale

Sale includes: ‘14 John Deere 7380 Forage Harvester, ’22 McHale Fusion 3 plus Baler, ’19 Krone Baler Big pack 1270, ’22 Horsh Pronto 4DC Drill, John Deere 6215R Tractor, ’16 JCB Loader, ’11 John Deere 6930 Premium Tractor, ‘22 Claas Liner 2800, Vaderstad Tempo TPF Planter, ’05 Hino FY dropside Truck, ’14 Lely Loader Wagon, ’17 Lely Tigo PR60 Loader Wagon, ’19 McHale Fusion 3 plus Baler, ’21 MF Quad Rake, ’09 John Deere 6930 Tractor with FEL, ’02 John Deere 6920 Tractor, ’07 McHale F560 Baler, ’04 McHale HS2000 Bale Wrapper, ’17 Donnelly 14t Tip Trailer, ’12 McHale 998 Bale Wrapper, ’11 Kuhn HR5004DR Harrows, ’13 & ’19 Claas Liner 2800 Rakes, ’03 Total Transport 4 axle Tip Trailer and much more.

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

OHURA VALLEY MARKET

RUAPEHU DISTRICT. First Sunday of the month. 10am to 1pm. Email ohuravalleymarket@gmail. com or phone Kathryn 027 717 0963.

PUMPS

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

RAMS FOR SALE

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

SERVICE BULLS

finest international dog trialling and working lines. Ph Somerton Park Kennel Canterbury 021 264 6250. DOGS FOR SALE YOUNG HEADING BITCH working. 10 months old. Excellent working strain. Satisfaction guaranteed. Phone Dave 027 450 6095.

QUALITY QUIET BULLS. Pedigree Herefords, Jersey’s pure breed Angus, pure breed Hereford’s and X breed Fresian. leaseabull.co.nz or phone 027 292 4889.

SILAGE FOR SALE

SILAGE ROUND BALES. Good Quality, weed free. Can deliver – Waikato/BOP area. Phone 027 493 2079.

STORAGE AVAILABLE

MACHINERY, VEHICLE, boat, campervan etc. Security and power. Feilding area. Phone 027 446 3855.

WANTED TO BUY

SALE TALK

John visited his 90 year old grandpa who lived way out in the country. On the first morning of the visit, John’s grandpa prepared a breakfast of bacon and eggs. John noticed a film-like substance on his plate, and asked, “Are these plates clean?”

His grandpa replied, “They’re as clean as cold water can get them. Just go ahead and finish your meal.” For lunch, Grandpa made hamburgers. Again, John was concerned about the plates, as his appeared to have specks of dried egg on it. “Are you sure these plates are clean?” he asked.

Without looking up, Grandpa said, “I told you before, those dishes are as clean as cold water can get them!”

Later, as John was leaving, his grandpa’s dog started to growl and wouldn’t let him pass. John said, “Grandpa, your dog won’t let me get by!” Grandpa yelled to the dog, “Cold Water, go lie down!”

FARM MAPPING

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GOATS WANTED

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.

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YEARLING BULL SALE

YEARLING BULL SALE

On farm bull sale plus online sale at bidr Sign up at www.bidr.co.nz

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Monday 9th September 2024, at 12.30pm

Monday 11th September 2023, at 12.30pm

Craigmore has been breeding Hereford cattle for over 50 years! We have bulls that will suit beef and dairy farmers www.craigmoreherefords.co.nz

Luncheon available On A/C D.B & S.E Henderson

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At the stud property: 429 Rukuhia Road, RD 2, Ohaupo 100+ registered well grown bulls

At the stud property: 429 Rukuhia Road, RD 2, Ohaupo 100+ registered well grown bulls

Waitangi Angus

COALGATE THURSDAY

THAMES VALLEY GENETIC LEADERS HIGH BW JERSEY BULL SALE

Friday 13 September

11 30am | Paeroa Saleyards

Comprising:

4 Recorded 2 year Bulls

• 34 Recorded Yearling Bulls

• 5 Recorded Xbred Bulls

Average BW 452, Top BW 544

Our 2 vendors have supplied numerous bulls to the AI industry (Crescent & Little River) over many years siring tens of thousands of daughters around NZ

Many of the bulls on offer are bred from or closely related to these highly regarded cow families who have supplied these AI sires

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These G3 profiled bulls are ideal for keeping replacement heifers from

You can purchase with confidence from this outstanding offering

TB C10, BVD tested and vaccinated

Deferred Payment available until 20 October

Online bidding available via BIDR

Catalogues available visit www.agonline.co.nz

Kent Stove 027 224 0999

Andrew Reyland 027 223 7092

PREMLIMINARY NOTICE RIVERINA JERSEYS 1ST ANNUAL BULL SALE

Monday 16 September

11.30am | Owairaka Valley Road, Te Awamutu

Comprising:

• 44 Recorded Yearling Jersey Bulls

BWs to 492, G3 profiled, Well grown, owner reared

TB C10, BVD tested and vaccinated

More details to come

Andrew Reyland 027 223 7092

PREMLIMINARY NOTICE 63RD NATIONAL HOLSTEIN FRIESIAN BULL SALE

Wednesday 18 September

11 00am | Te Awamutu Saleyards

Comprising:

40 Recorded 18 month and 2 year Friesian Bulls

• 30 Recorded Yearling Friesian Bulls

Outstanding offering of BW and production bred

bulls More details to come

Online bidding available via BIDR

Andrew Reyland 027 223 7092

TLE SALE

Tuesday 3 September | 11am

Contact:

Jamie Hayward 027 434 7586

Chris Hurlstone 027 598 6542

UPCOMING WAIROA CAT TLE SALE

Thursday 12 September | 11am

Contact: Mason Birrell 027 496 7253

Hamish Holst 027 344 7504

PREMLIMINARY NOTICE 101ST NATIONAL JERSEY BULL SALE

Thursday 19 September

11 30am | Te Awamutu Saleyards

Comprising:

12 Recorded 2 & 3 year Jersey Bulls

• 40 Recorded Yearling Jersey Bulls

Many Bulls closely related to current AI sires

More details to come

Online bidding available via BIDR.

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Where to next for yearling steer market

The astounding per-head prices required to secure replacement cattle now have a fair amount of people holding on to what they have.

Alex Coddington MARKETS Livestock

NORTH Island slaughter rates typically don’t bottom out until September, but this year supply has been tight since mid-June.

With processors under pressure to meet orders, they’ve been increasing farmgate returns for prime cattle, and store market prices for yearling cattle have been lifting in tandem.

In the past six weeks, average paddock prices for heavy R1 steers in the North Island have risen from $3.80/kg to $4.20/kg, while prime steer prices have increased from $6.40/kg to $7.00/kg.

This has kept the store value of R1 steers at a normal range of 59-60% of the schedule. Though current cattle values are high, confidence in the market has previously pushed yearling steer values closer to 65%.

Milder winter conditions and early autumn destocking have intensified demand, making saleyards a preferred selling option.

Most store trading now occurs at auction, above paddock values.

The heat of the market has been a good incentive for some to tidy up numbers so while the volume of cattle in yards has been increasing through August, quality hasn’t quite been comparable to previous years in regions with early offloads and dry conditions.

R1 steers at Stortford Lodge were on average 40kg lighter than last year, Rangiuru 25kg lighter, and Feilding 12kg lighter. Prices at these saleyards are up 60-80c/kg compared to last year.

Conversely, yearling steers at Wellsford were 43kg heavier on average, Taranaki 12kg heavier, and Matawhero 18kg heavier, with prices up 30c/kg to 68c/kg.

Frankton saw the smallest weight change but the largest price increase, up 87c/kg from last year.

For some, the lifts to the store market have been too hot, too fast.

Feilding has been in a league of its own when it comes to yearlings, with an average price this month of $4.44/kg, or 63% of the schedule, followed by Stortford and Taranaki at $4.36-$4.37/kg, and Wellsford at $4.00/kg.

The astounding per-head prices

QUALITY: The heat of the market has been a good incentive for some to tidy up numbers so while the volume of cattle in yards has been increasing, quality hasn’t quite been comparable to previous years.

For some, the lifts to the store market have been too hot, too fast.

required to secure replacement cattle now have a fair amount of people holding on to what they have, as long as weather conditions allow, only adding to market supply pressures.

Where to next for store cattle prices will be largely dependent on domestic supply moving forward.

With so much pressure still on the procurement of finished cattle, there is no doubt processors will

be looking to balance out losses when numbers better match capacity. In other words, current store cattle prices are relatively in line with schedules but don’t match up with current market signals.

Although the United States remains hungry for beef, a strong presence in this market from Australia and Brazil is rectifying these shortages.

Economic downturn has put China’s demand for beef on the back burner, while its own low domestic meat prices have kept demand from our once-largest consumer below average all year.

With high spring prices brought

forward, there is an increased risk of an early change in direction if and when numbers pick up. Assuming store market values stay in line with farmgate prices, there is a likelihood of store cattle values falling almost as quickly as they rose.

MORE:

This month’s North Island Livestock Outlook report forecasts prime steer schedules to drop 40c/kg more between October and January than it did the same period last year.  For more in-depth analysis on global red meat markets and farmgate price projections for the next six months, sign up to Livestock Outlook, August issue out now. Visit agrihq.co.nz/livestock-reports

Weekly saleyards

Spring is the topic on everyone’s lips now, even with the recent quick visit of a cold snap. The early country of Hawke’s Bay didn’t disappoint last Wednesday, when 203 ewes with their 252 lambs were yarded. Ewe breeds were a mix of Romney and blackface while lambs were all blackface except for one pen. Most lambs had been untouched and, depending on the quality of ewes and lambs in the pen, they ranged from $53 to $101 all counted. It was the pen with heavy Romney ewes and docked blackface lambs that fetched the top price at $107.50 all counted.

2-6-tooth Romney ewes,

R1 Friesian bulls, 253-323kg

| August 20 | 662

R2 Hereford-Friesian, Angus-Friesian steers, 405-486kg

R2 dairy-beef, beef-cross heifers, 396-483kg 3.40-3.63

R2 Friesian-cross, crossbred heifers, 383-390kg 2.68-2.79

Aut-born yearling dairy-beef, beef-cross steers, 392-419kg 3.59-3.70

Aut-born yearling Charolais-Friesian heifers, 305-335kg 4.03-4.23

R1 dairy-beef, beef-cross steers, 266-385kg 1260-1400

R1 dairy bulls, 280-305kg 930-1030

R1 dairy-beef heifers, 257-358kg 1000-1230

Prime dairy-beef, beef-cross steers, 510-692kg

Prime Hereford-Friesian, beef-cross heifers, 426-531kg

3.51-3.70

3.38-3.66

Boner dairy cows, 430-610kg 2.44-2.72

R2 Hereford-dairy, beef-cross steers, 411-457kg 3.55-3.63

R2 beef-cross, dairy-beef heifers, 305-400kg

R1 beef-cross, dairy-beef steers, 200-249kg

R1 Belgian Blue-Friesian, Jersey-cross bulls, 191-252kg

R1 Hereford-Friesian, Belgian Blue-Friesian heifers, 195-232kg

Aut-born weaner dairy-beef, Friesian bulls, 113-130kg

Aut-born weaner Hereford-Friesian, beef-cross heifers, 101-120kg

Prime Angus-Hereford, dairy-beef steers, 538-727kg

Prime Hereford, Charolais-Friesian bulls, 672-842kg

3.13-3.20

AgriHQ market trends

NZX market trends

Omokoroa , B

Mellons B ay, Auckland Henderson, Auckland

Spring westerlies look to be here already

Philip Duncan NEWS Weather

LAST week in New Zealand the weather kicked off with a southerly off Antarctica. Three days later the airflow coming into NZ was from out of Australia. There aren’t many parts of the world that get the weather off two continents in such a short time – especially two very different ones (one super cold, the other fairly warm). Most Kiwis might see last week as more winter weather, but I see it as a sign of spring: the cold blast, the windy weather, then the uptick in temperatures that pushed NZ above average by mid to late last week.

But to me, the biggest telltale sign that spring’s weather pattern is coming in are the windy westerlies.

We’re now in the final week of August. September kicks off this Sunday and so too does the start of spring on the meteorological calendar (with spring not starting until September 23rd on the astronomical calendar). Also, our coldest weather is in June, July and

August – leaving September about a degree milder and giving us a bit more spring in our step.

September is also the month that gains a lot of sunlight. About 20 minutes of extra daylight every week, meaning we gain one hour more daylight in September. Then, of course, we get daylight saving towards the end and that gives us another hour of daylight in the evening.

Thankfully the storm itself will be near the ice shelf, but the winds will stretch up to Aussie and NZ.

Although daylight saving has absolutely no effect on the weather (obviously!) it is a sign that in just a month’s time we’ll have turned another big corner on winter.

In my view spring this year comes with a higher-than-usual risk of a snowstorm or frost event. This is due to the extra stormy weather over the Southern Ocean and south of NZ lately.

In fact this week alone there is a storm that computer modelling

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at the time of writing this was picking central air pressure to be between 916 and 926hPa. That’s more powerful than most Atlantic hurricanes. Thankfully the storm itself will be near the ice shelf, but the winds will stretch up to Aussie and NZ.

Storms like this that far south tend to produce gale westerlies from Tasmania to New Zealand. Looking at long-range maps that sure seems to be the pattern off and on for the next two weeks. Westerlies streaming into NZ, sometimes with airflows out of Australia, sometimes the subtropics north of NZ, and other times a cold south to south-wester.

The good news is that this set-up should drive in plenty of rain to the West Coast and spill over into our low hydro dams. Several hundred millimetres or more of rain will fall there over the next week or two.

The bad news? Windier, drier westerlies for Canterbury, and a heightened risk of a sudden severe snow or frost event in September. The milder and windier spring westerlies may arrive early this year – but remember: the cold air south of us has only just peaked and hasn’t gone away yet.

PRECIPITATION: Rainfall accumulation over seven days starting from 6am Sunday August 25 through to 6am Sunday September 1.

Whangaripo, Warkworth

Waiheke Island, Auckland