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Vol 19 No 16, April 27, 2020
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Works get speed back Neal Wallace neal.wallace@globalhq.co.nz
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EAT processing volumes could be close to maximum on Tuesday when the country’s covid-19 response level drops. On Friday the meat sector was finalising operating protocols for when the lockdown eases from level four to three. Those protocols would need Government sign-off. Alliance livestock and shareholder services manager Danny Hailes said level three restrictions should allow throughput for sheep to rise to 90% of plant capacit and beef to 100%, helping to address the backlog of stock still to be killed, which has blown out to six weeks. Companies will have to reconfigure plants and Hailes says Alliance plans to do that for its sheep processing chains on Sunday and Monday. At level three the social distancing between workers drops from 2m to 1m. Initially The level four rules forced sheep capacity to drop to 50% and beef to 70%. Companies have since made incremental efficiency gains but
Some farm tools never change.
throughput remains well short of capacity. “This will be a huge and significant help to clear the backlog,” Hailes said. The season could still run a month longer than usual. Feed is becoming an acute issue in drought areas of the North Island and in Southland where farmers have never really been ahead of feed demand since spring when grass growth was low and wet ground conditions delayed crop sowing.
Everything is slowing down because people are not out and about. Danny Hailes Alliance AgriHQ senior analyst Mel Croad said the increased capacity will be welcomed by farmers but she warns international markets are weak which might mean product has to be stored. Alliance planned to kill lambs at all its South Island plants on Saturday and cattle at plants in both islands on Anzac Day.
Farmers left out in cold
It also plans to move some South Island lambs and sheep to the North Island to release pressure on plant capacity. An analysis by the Meat Industry Association and Beef + Lamb estimates 69% of lambs an 80% of mutton has been processed with the North Island mutton kill slightly ahead of the South Island. It estimates 55% of the cull cow kill has been completed in the North Island and 41% in the South Island with the peak expected next month. Cull cows represent 60% of the weekly national kill for each of the last three weeks, with throughput lifting 15% last week. Hailes said Alliance has increased its target lamb weight range from 17kg to 23kg to 17kg to 25kg without any price penalty to acknowledge farmers have had to retain stock longer. It has several initiatives to address throughput issues, including spending $4m modifying the venison chain at its Lorneville plant in Southland to process cull cows, expected to be completed in March or April next year. Hailes says the supply chain is operating well, which means inventory levels and storage are within acceptable guidelines. The state of global markets
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TRIBUTE: Southland farmer Dean Rabbidge joined many others around the country who, despite the lockdown, are showing their support this Anzac Day for those who fought for our freedom. His children Ted and Ida are pictured with their creation. means it is a juggling act matching market demand with supply. “Everything is slowing down because people are not out and about. Everything from documentation, logging product at ports and warehousing is slowing down and we’re seeing that elsewhere now.” Croad said most meat markets are struggling but the closure of
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restaurants in key markets has hit prime beef especially hard. The European beef market, though small for NZ beef, has dried up as restaurants close and customers stay home, while in Australia the price for prime beef cuts has collapsed to mince levels. Commodity cuts are benefiting from United States fast food retailers staying open.
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With visits to doctors’ clinics a fraught affair during lockdown and an increasing number of general practice clinics feeling the financial strain the Well Revolution app is providing a means for both patients and doctors to preserve their health and their businesses.
REGULARS Newsmaker ��������������������������������������������������� 18 New Thinking ����������������������������������������������� 19
4 Arable farmers wary of lambs
Editorial ������������������������������������������������������� 20
A lack of certainty in the market has Mid Canterbury cropping farmers cautious about stocking up with their normal quota of store lambs.
Pulpit ������������������������������������������������������������� 21 Opinion ��������������������������������������������������������� 22 Real Estate ���������������������������������������������� 24-28 Employment ������������������������������������������������� 29 Classifieds ����������������������������������������������� 29-30 Livestock ������������������������������������������������� 30-33 Weather ��������������������������������������������������������� 35 Markets ���������������������������������������������������� 34-36
10 Time squeeze on forest planting
After bearing the brunt of a price slump last year ongoing drought and the covid-19 lockdown foresters are gearing up for work under level three conditions and see a stressful planting season ahead.
12 Meating needs of hungry
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Two farmers have stepped up to help the growing number of families affected by food poverty.
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Our on farm story this month features West Coast farmers Aaron Silcock and Sarah Gibson who are growing hemp in order to diversify their farm operation. Dairy sheds/robotics/technology We take a look at some recent dairy shed builds that have plenty of bells and whistles to make milking quick and efficient as well as other technology and robotics systems used on farms. Better bulls better calves We check out the top beef breeds from breeding companies to help farmers make the right purchasing decisions for their herd.
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
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Farmers claim water law lockout Neal Wallace neal.wallace@globalhq.co.nz FEDERATED Farmers says it remains shut out of deliberations on the specifics of the Government’s freshwater legislation after unproved claims it leaked confidential information about the policy last year. Its water spokesman Chris Allen says the accusation was never proved but resulted in the cessation of what he called a constructive working relationship between the farming body and parties considering the new regulations. “It really did challenge the integrity of Federated Farmers and we were miffed about that. It did not come from feds,” he says. In written responses to questions from Farmers Weekly, Environment Minister David Parker says details about progressing the next stage of new freshwater legislation will be known by September’s election but it remains unclear what or when legislation will go before Parliament. “Final proposals are being shaped for Cabinet to consider.” The legislative process has been pushed to one side by the covid-19 pandemic. Parker says public consultation has been completed, advice received from advisory groups and changes made to the original proposals following submissions, the impact assessment report and in response to covid-19. “The next steps will be announced once Cabinet has considered the proposals. This will be before the election,” he says. Parker says officials have in the last few months worked with advisory groups and done targeted engagement including the primary sector. But Allen says any discussion with the primary sector was not about the substance of the proposed freshwater legislation.
UNCLEAR: Environment Minister David Parker is yet to say when freshwater legislation will reach Parliament and what it will say.
For farmers not having any decision brings uncertainty, which is hopeless for everybody, so we shouldn’t kick it down the road. John Penno Freshwater Leaders Forum “Yes, discussion is going on and there has been discussion with the primary sector, which is much more about the delivery than the blanket regulations. “We don’t know what’s gone to the minister, we don’t know what
is in the summary of submissions from the industry hearing panel, we don’t know what the document says.” Allen says the federation’s contribution has been about developing an integrated farm planning process to simplify the auditing of farm plans. The Government’s consultation focus has been with the Freshwater Leaders Forum, the Science Advisory Group and Kahui Wai Maori, he says. Even if regulations are delayed farmers still need some certainty about the regulations they face but regardless, farmers will continue their own initiatives to improve water quality. Freshwater Leaders Forum chairman John Penno agrees people need certainty and says while the legislative progress appears to have stalled at Cabinet
he hopes it will continue. “From my personal point of view I’d like to see it carry on. “For farmers not having any decision brings uncertainty, which is hopeless for everybody, so we shouldn’t kick it down the road.” Penno says continuing with the reforms acknowledges those farmers improving water quality but also builds trust with the community and the international buyers of our food, fibre and beverage. “It enforces the need to continue the sensible locking in of improvements to the climate, water, environment and animal welfare – things that underpin our reputation and the position we hold. “It is an opportunity for us to show why in the future everyone will want to work with NZ, that we will be the place they will want to
get their food and fibre from.” Penno says the impact of the global recession on the economy and on individuals needs to be acknowledged in any regulations. The forum says new legislation must be outcomes-based and backed by scientific evidence. Parker says the 17,500 submissions received on the freshwater proposals was a record for the Ministry for the Environment. He could not give a time for the release of the summary of submissions, individual submissions, Cabinet papers, reports from the independent advisory panel and advisory group, impact assessment and economic analysis but says they will be made available on the ministry’s website. Local Government NZ regional sector chairman Doug Leeder says regional councils are waiting for an update from the Government on what impact covid-19 will have on implementing freshwater legislation. He fears existing concerns about the cost of the implementing the policy will only have heightened given the economic hit the country is taking. The impact of covid-19 has redirected council staff and resources. “Every council is rapidly reviewing their annual plans and re-evaluating their 2021-24 long term plans, particularly as a result of expected reductions in investment income, costrecovered income and pressure on rates.” Leeder says there are elements of the policy that councils like. “We particularly support the proposed national environmental standard regulations as these will deliver significant improvements to our freshwater quality and delivering a national level will lower transaction costs for regional councils as the environmental regulators.”
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
Arable farmers wary of lambs Annette Scott annette.scott@globalhq.co.nz A LACK of certainty in the market has Mid Canterbury cropping farmers cautious about stocking up with their normal quota of store lambs. Federated Farmers arable vice chairman Brian Leadley said market uncertainty means cropping farmers are not confident to buy in the usual numbers of winter finishing lambs. “Most farmers are still buying in some lambs but in pairing up operating costs to secure an income for next year there’s a lot of unknown so cutting back in lamb numbers comes for a multitude of reasons. “Talking to farmers it’s looking like there’ll be up to 30% less lambs coming onto Mid Canterbury cropping farms this season,” Leadley said. Where 10,000 lambs might have been the order of the day that is now more likely to be 7000-8000, amounting to tens of thousands of lambs that will not find a home in Mid Canterbury this season. “While it’s dry here there is feed available, masked by irrigation, but there’s not quite the same abundance of feed
FEWER MOUTHS: Mid Canterbury arable farmer Brian Leadley says the number of store lambs going on to cropping farms will be down significantly this season. Photo: Annette Scott
and given the huge uncertainty in lamb markets there are other options for farmers to consider.” Market value is of concern as the schedule for lamb continues to drop because of weak international demand. Kill sheets are reading about the $6.45 a kilogram mark with a further 15c cut signalled for this week, bringing pricing 6070 cents behind the same time last year.
Farmers are also nervous given the lack of processing assurance to get lambs off farms in time for spring cropping. “The past couple of seasons there’s been good markets for heavier 21-27kg lambs and with meat companies not able to give signals around pricing there’s real concern where these markets might sit in three to four months’ time.” Most cropping farmers rely
on a winter income. They are doing their budgets and it is very risky with the amount of capital involved in lambs, Leadley said. “Yes, it’s been a good harvest but there’s no immediate cashflow as it’s sitting in seed stores and silos not yet converted into cash. “Buying in store lambs is expensive and the banks are putting the brakes on.” As a result, more earlier winter wheat and barley crops are being planted with selling grazing also an option farmers are pondering. Leadley acknowledged the lesser number of lambs going into Mid Canterbury will have a knock-on effect. “Many of these lambs at this time of the season are coming from Southland so there will be a knock-on effect down the chain for farmers in these regions getting rid of the last of their store lambs.” But it’s not a case of not wanting lambs forever. “This is not about a massive lack of appetite from farmers wanting to do lambs. It’s about balancing the budget in the environment in which we are currently operating.”
Some yards will see action SOME selling will return to certain sale yards under level three but a return to normal is still some time away. New Zealand Farmers Livestock said it will resume selling livestock at Frankton, Stratford and Rongotea. Those yards already have livestream facilities operational and general manager Bill Sweeney said farmers will be able to actively participate and bid at livestock auctions streamed live from those yards as well as some on-farm auctions. The Frankton sale yards will host the first sale on Wednesday with dates also set for Stratford and Rongotea. “We are also looking to roll it out to other sale yards associated with NZ Farmers Livestock, such as Stortford Lodge through Redshaw Livestock.” The Ministry for Primary Industries’ regulations for level three say stock sales are permitted but the public must not attend. Carrfields livestock general manager Donald Baines said “While we respect the position that New Zealand Farmers Livestock have taken we are seeking greater clarification from MPI before proceeding as there are still too many grey areas.” PGG Wrightson general manager Peter Moore said “Our number one priority is to help eradicate covid-19 and to try and run a traditional sale under level three would be very difficult when having to adhere to such restrictions as social distancing.”
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
5
Farmers must bide their time Annette Scott annette.scott@globalhq.co.nz THE probability of a global recession is growing along with the likelihood of reduced consumer spending in all red meat markets. The covid-19 pandemic has shifted demand for red meat away from food service to eating at home, Beef + Lamb chief economist Andrew Burtt said. Just how long that will take to reverse will depend on how long it takes people to be comfortable to eat out in restaurants again. The key for New Zealand across the supply chain will be maintaining integrity, reliability and consistency. “That will stand us in good stead to be able to deliver longterm. “Maintaining the normal supply of livestock while keeping transport and shipping as normal as possible with case-ready retail product to meet new consumer demand will be the new norm, at least for the short term. “Producers, processors and exporters will need to change to meet the new demand of people now buying at retail.” Burtt said food services are down phenomenally with beef most affected. “Beef is the most sold with a higher reliance on the food service sector, the tenderloin and steak cuts markets have just died a death and the United States has made a start on grinding more middle cuts into beef products.” With a backlog of domestic product, the US Department of Agriculture has also introduced a new country-of-origin labelling law, which, at least for the short term, is mandatory for US product at retail sale. The new law does not apply to the food service sector. With lamb there is greater opportunity for NZ to have an input. “For us with lamb we can act as an intermediary between the food service and retail as with customers in both camps we can help make the shift and that ties
TAI HO: Farmers need to slow animal growth and wait for the opportunity when demand increases, Beef + Lamb chief economist Andrew Burtt says.
back to our abilities to provide product to meet demand. “Big box retailers such as Walmart and Cosco are doing phenomenal business at retail.”
There will be humps and bumps and global volatility as we traverse through these unprecedented times of covid-19 but we will come out of this. Andrew Burtt B+LNZ NZ exporters are working with their partners on options for reaching consumers and exploring channels with an increased emphasis on retail options and the
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logistics of timely shipping. “From what we are seeing it looks like our processors will have sufficient capacity to cope and I believe they are doing all they can to maintain connections and integrity of their supply chains to the market.” Burtt said while dealing with the significant upheaval of covid-19 and short-term volatility no-one is so brave as to speculate on the long term. The situation around swine fever in China should not be dismissed, Burtt said. “There’s a real indicative there of what protein demand is in China and there’s strong international demand for red meat – of course, with some short-term volatility and competitive element with both competing meats and noncompeting meats. The short-term impact from the closure of 17 US processing plants has seen US pork production drop 10%.
“Here farmers need to keep their eye on what’s happening in international markets. “We need to be mindful animals are still growing and of how we slow that growth while we wait for markets and slaughterhouses to open again. “The cattle and pigs that left the farm this week could be the last for some time. “We could have a three to sixmonth timeframe, we really just do not know. “It’s about putting livestock on a slow growth feed system to keep them ticking over while waiting for the opportunity to export them.” This opportunity could well be with China. “We could be in the race to contribute more to China’s protein shortage and as well see a flow through to new opportunity for NZ on the Euroopean Union scene.” In the bigger picture post
covid-19 there is a positive stick for NZ’s red meat markets. “It’s not all doom and gloom for the next 12 months. “NZ needs to get the right balance keeping eyes on the shortterm volatility but also having an eye on the longer term. “If the world is going into a depression, food consumption and production is a basic need for all of us and the NZ red meat sector is in a good business for that. “We have got good diversity of country markets and then also within each individual country’s market segments. “If we keep our reputation of integrity, reliability and consistency in quality and supply we will come out the other end. “There will be humps and bumps and global volatility as we traverse through these unprecedented times of covid-19 but we will come out of this,” Burtt said.
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
7
Big rigs to miss virtual Fieldays Gerald Piddock gerald.piddock@globalhq.co.nz FIELDAYS’ new virtual event could go ahead without some of the country’s big farm machinery dealers. The online event has been created as a replacement for Fieldays, which takes place in June. That event is now indefinitely postponed. In a just-completed survey by the Tractor and Machinery Association 90% of members said the virtual event does not interest them. “Most already have an online presence and they can’t see it having much value,” association president John Tulloch said. The association has 42 members in the tractor and machinery industry. The survey found three-quarters of members want a refund on their exhibitor fees already paid for the non-event. Other exhibitors outside the farm machinery sector also want their money back. The owner of a Merino clothing company told BusinessDesk while she didn’t want to give up her site it would be a tough ask to absorb the $4000 she’d paid for the June 13 event. “I’ve been at the event for 40 years and it’s important to my business but I don’t think it will be held this or possibly even next year so the event should be cancelled and funds returned as they did at Central Districts field days.” Site prices start at about $1000 with large exhibitors and brand partners such as banks, car companies and Fonterra known to pay more than $100,000 across combined marquees. Fieldays chief executive Peter Nation said the not-for-profit society has absorbed significant costs preparing for the event. “We effectively stopped doing business on March 16 and that went well beyond our Fieldays preparations and also into many of the more than 114 events scheduled for Mystery Creek.” As a result the society has been forced to make some staff cuts and
It’s not going to be for everybody but the people we tested it with really liked the concept and we’re already starting to sell sites. Peter Nation Fieldays
NOT INTERESTED: Some of the country’s agricultural machinery companies have indicated they might not take part in the planned virtual Fieldays in July.
has also received a wage subsidy of $161,680 for its remaining 23 employees. Nation said initial reactions to the virtual Fieldays concept have been positive but he also acknowledged some exhibitors might opt out. “We have 1100 exhibitors so it’s early days. It’s been quite surprising. “It’s not going to be for everybody but the people we tested it with really liked the concept and we’re already starting to sell sites.” The event will run from July 13-26. It was delayed from June to allow Fieldays adequate time to build it up. The virtual Fieldays will have a purpose-built hub where people can go online and search for products.
They would then be directed to an exhibitor site to browse or interact with the exhibitor online. They will also be able to access videos of products on the sites. “A number of exhibitors or suppliers in the market now
are quite mature in their digital material. Others aren’t and we have a digital team that will be able to work with some of those people and help them build what will be in some cases their first digital stuff they have ever had,”
Nation said. Fieldays partnered with digital production company Satellite Media to deliver the online event. Nation also acknowledged not every farmer will be able to access the hub if they live in an area with poor connectivity. “We’re fully aware that some parts of New Zealand have poor broadband. They will be unlucky but it will be built in such a way that you can search it on your phone, on your iPhone, iPad or computer.” Nation said staff are also working hard to duplicate the exchange of knowledge in the rural sector that is such an important part of Fieldays. “We are thinking about the innovation area and the Health Hub and the other educational stuff.” That includes designing a platform to allow discussions with officials or other industry leaders, which could also appeal to international visitors.
Limited hunting can resume HUNTERS will be able to hunt on private land with special restrictions when New Zealand moves to covid-19 level three but not on public conservation land, Sport and Recreation Minister Grant Robertson and Conservation Minister Eugenie Sage say. The shift to level three on Tuesday morning will allow
hunters to hunt locally. “We know that hunting is an important part of life for many New Zealanders and in some cases a critical source of food,” Robertson said. Hunters must stay in their region and their bubble. They must hunt on foot and overnight trips are not allowed. The use of quad bikes, off-road bikes,
helicopters and other motorised vehicles is prohibited. Conservation Minister Eugenie Sage said hunting on public conservation land is not allowed till alert level two. The start of the duck hunting season is being postponed from Saturday May 2 to start on the second weekend after level two. The season will also end later, Sage said.
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
Farmers eager to fix milk prices to $6.50/kg, a steep drop from what is expected to be an average of $7.30 this season. As a result farmers swamped FONTERRA’S fixed milk price the March and April offers of $6.32/kg for next season was with applications, a complete massively over-subscribed in April turnaround in the short history of and farmers who applied were the scheme. allocated only 13% of their target In the 2019 inaugural quantities. applications over seven months The co-operative received 57.8 were collectively undersubscribed million kilos in applications for by a third of the offering. the 7.5m kg available from 756 Nonetheless, about 10% of farms or about 7.5% of the total Fonterra’s farmers used the farm shareholders. scheme to fix high milk prices. Uncertainties about the effects Last year the company made of covid-19 on world dairy seven offerings of 15m each time markets and milk output from and this year its offerings so far the main producers were behind have been much reduced, being farmers’s desire to lock in prices 5m and 7.5m respectively. on at least some of next season’s WELCOME: It is heartening for the dairy industry to see farmers using fixed milk “We can only offer a certain volume. prices, futures contracts and options, NZX analytics head Julia Jones says. amount based on our ability to The April offer was the second offset this with forward contracts before the start of the 2021 season and 14 lots at $6.30. more than 700 lots at $7.20 for the with customers,” Allen said. – the March offer was for a fixed NZX analystics head Julia Jones 2021 season. That shows a reluctance milk price of $6.80 net of the 10c said the use of FMPs and milk From mid February the milk by international customers service fee. price futures and options by dairy price futures offer prices started to commit themselves to farmers is heartening for the to fall and daily contract numbers forward contracts at a time of industry. increased, peaking at 349 lots on great covid-19 uncertainty. These products are March 24. Under the FMP rules complementary and give some The average number of Fonterra is limited to 5% of its certainty about future milk contracts a day on the active total collection or about 75m from June to October will help Hugh Stringleman trading days in the past month has incomes. kg in a season of 10 monthly considerably, Journeaux said. hugh.stringleman@globalhq.co.nz “But please don’t spend your been 147. offerings, an average of 7.5m “Watch your costs as closely as time worrying about what are just The market now sits at $6.10/ kg an offering. you can this financial year and try MILK prices next season forecasts and put your energies kg settlement price, less the Farmers can apply to carry forward as much cash as predicted at $6-plus are going to into what you can control,” was brokerage payable. to fix up to 50% of their you can into next year.” drop into break-even territory for her general advice to farmers. A single contract or lot covers own anticipated seasonal As a result of the drought dairy farmers, AgFirst Waikato 6000kg milksolids so 25 contracts production. farmers can use the income agricultural economist Phil would be needed to fix the price New Zealand farmers have equalisation scheme by Journeaux says. over a season’s milk production of also made good use of NZX arrangement with Inland The break-even level as a milk price futures and options the average-sized dairy farm. Revenue. combination of farm working But most users fix only a portion markets during the covid-19 The discipline with which expenses, debt servicing of their season’s output. months. dairy farmers do budgets varies (interest-only), depreciation and The first two trades have been In mid January some considerably despite several living expenses is aboout $6/kg Listen: farmersweekly.co.nz/podcasts made on the 2022 season, of 50 prescient farmers locked computer programmes making milksolids, he said. it easy. A farmer wanting to make debt Journeaux recommended repayments and some capital farmers do regular budgets with expenditure on environmental updated inputs. matters would need closer to $7. “But the factors are largely “So, any drop in payout below suppositions at this stage – no$6 means dairy farmers are in for He was hugely appreciative one knows what covid-19 will do dairy farming was deemed an another tough year.” Gerald Piddock to dairy prices in say six months’ essential service the Government of how the Government worked Though this season’s $7.30 is gerald.piddock@globalhq.co.nz with the dairy industry to find a time.” has been committed to finding a a good payout many farmers practical solution . way to enable it to proceed. have burned a lot of money on THE Government has allowed “There is far too much at stake The Government has worked supplementary feed because of Moving Day to go ahead this year for it not to go ahead,” he said. with dairy sector leaders to the drought. under any alert level and has put The dairy industry will come up with a solution that Some debt will have been on strict controls to prevent the now work on firming up the will work for the sector without repaid this year and last year spread of covid-19. guidelines to help sharemilkers jeopardising health and safety. but cashflows remain tight and The controls restrict activities Listen: farmersweekly.co.nz/podcasts and other workers with their “Activities need to be restricted the deferred wash-up payments to those absolutely necessary to shift. The guidelines should be to just those that are absolutely allow the movement of people, out in the coming weeks, he said. necessary, though, and any livestock, farm and household “But the key thing is that we movement around NZ must equipment. know now that it’s going ahead ensure people’s bubbles are That is to make sure dairy and I know it was causing a lot of maintained.” farmers and workers have safe stress to farmers.” O’Connor says farmers are no and suitable housing and protect The news pleased Mid strangers to disease eradication the welfare of their animals. Canterbury farmer Robin programmes with strict Other controls include Let us help you Hornblow, who is moving to a movement controls. ensuring Nait records are new contract milking job for the “There were already really to make the most accurate, maintaining people’s new season. strong precautions in place bubbles and limiting face to face of 2020/21 asset “It certainly helps put our around Moving Day as a result contact. deductions on the minds at ease in what can be a of the Mycoplasma bovis Also known as Gypsy Day, farm. stressful time.” programme. This gives me Moving Day is on June 1 when He had already booked confidence that farmers will many dairy farming families, Shop online and vehicles for him and his pregnant apply very careful behaviour to sharemilkers, contract milkers use discount code wife in anticipation of the move. Moving Day.” and employees move to new ‘farmers15’ to get “We had good plans in place Federated Farmers farms to start new jobs and an amazing 15% already and now we just need to sharemilkers chairman Richard milking contracts. discount when put them into action.” McIntyre said the news comes Agriculture Minister Damien DairyNZ chief executive Tim as a huge relief to those farmers O’Connor said the dairy industry you upgrade your Mackle said it will provide peace soon shifting to new jobs. will play a critical role in New compressor or of mind for thousands of farmers. “I’m delighted. There’s a lot of Zealand’s economic recovery water blaster. “It means we’ll move into the tension that will be relieved as a after covid-19 and it is vital next dairy season in a way that result of this. There’s been a few Moving Day goes ahead. thousand farmers waiting for this keeps them and the public as “Since the alert level four safe as possible.” announcement.” lockdown was announced and Spraytech New Zealand spraytechnz Hugh Stringleman hugh.stringleman@globalhq.co.nz
Some 238 farms applied for 15m kg and were allocated 5m kg collectively and therefore each application was scaled back to 33%. Following the April offer Fonterra’s Farm Source director Richard Allen said the significant oversubscriptions in consecutive months highlight the benefits of the financial tool for farmers. The offer prices are derived from an average of the daily settlement price of the NZX Milk Price Futures contract for three days following the first GDT auction of the month. That offer price is advised to all Fonterra farmers on Saturday morning and they have Monday and Tuesday to make applications. The next application window is on May 11 and 12. Preliminary forecasts by dairy analysts for next season’s farmgate milk price have ranged from $5.60
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10 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
Time squeeze on forest planting Richard Rennie richard.rennie@globalhq.co.nz AFTER bearing the brunt of a price slump last year, on-going drought and the covid-19 lockdown foresters are gearing up for work under level three conditions and see a stressful planting season ahead. Forest Protection Services managing director Kevin Ihaka, in Northland, said with level three enabling operators to get back to the business of felling and planting, the greatest challenge facing many is a lack of time to get new trees in the ground. “We have lost a month when we would have been doing ground preparation and spraying. We have the staff to go and work but they can’t get out until that work is completed, “ he said. The planting window for Northland will not extend much beyond late September but is dependent on how dry conditions are and much of that region remains in near drought conditions. While tree supply is generally good the dry conditions mean they are still not in ideal condition for transplanting. Restarting harvesting operations is also challenging, despite operators often working in equipment with a cab, in remote locations. “We need to get our gangs to locations and you can’t have more than two in a car. Not all will have drivers’ licences so this is proving a real challenge to manage.” The industry is launching a planting recruitment campaign this week. Forest Industry Contractors Association chief executive Prue Younger said there could be 800-1000 jobs available over the coming months throughout NZ.
The industry has worked with Ministry for Social Development through its Work the Seasons job portal. While physically tough the work gave a chance to earn up to $300 a day once planters are up to speed. Younger said the planting opportunities stretch over much of the country and in general there is a good supply of seedlings.
By and large the larger forest owners have been more resilient in this so contractors working with them will be looking to come out of this better on the whole than those contracting to smaller forest operations. Phil Taylor Forest Owners Association But Ihaka cautioned it is critical forestry takes a measured approach to manning operations in coming months and avoids a boombust rush. “If we rush a lot of new people into planting trees we may get a lot in the ground but established businesses could be forced from the sector by cowboy operations.” Meantime, the supply lines look clear for good log flow once operators are up to speed again. “There is good demand in China now and the ports here were cleared of logs prior to the lockdown so there is space to
handle the logs here,” Younger said. Forest Owners Association president Phil Taylor said there were usually 1-1.5 million cubic metres of timber on NZ wharves but that is only 200,000-250,000 cubic metres now. “And prices are looking good at the moment.” The impact of the Chinese shutdown then the covid lockdown has varied depending on the size of the forest the contracting companies work in. “By and large the larger forest owners have been more resilient in this so contractors working with them will be looking to come out of this better on the whole than those contracting to smaller forest operations. “Along with planting the seedlings this year one of the other concerns is lifting them when they get transplanted. We would generally take on itinerant workers for that.” Ihaka said the delays mean the sector is now competing with horticulture for staff and time pressure to get trees in the ground will only increase. Meantime, the Government’s Billion Trees project is entering its second full planting season. Last season finished up short of the extra 50,000ha required to fulfil the Billion Trees target, with about 30,000ha of new land planted. Taylor said covid problems notwithstanding, it could also be a tall order to hit 50,000ha this year. “Replacement planting should be okay.” But the question will be finding enough labour to plant the new land. A more integrated approach between pastoral farmers and forestry means there is still a chance to meet the target but the sectors need to co-operate.
RUSHED: Forest contractors face much tighter time frames for this year’s plantings, Forest Protection Services managing director Kevin Ihaka says.
Success is in the bloodline Since the 1960’s the Blackwell’s have farmed on Mangaotea Station, taking pride in the high-quality cattle they produce. These days Rob, Jaqueline and Zarrah farm three separate cattle studs on the property, with an obvious family rivalry pushing them to breed the best they possibly can.
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
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Online auction is a success Annette Scott annette.scott@globalhq.co.nz
of the stock while also individually profiling the respective vendor details complemented with a chat button to discuss further stock A HANDSHAKE still carries weight information. for livestock trading firm Peter Walsh said it’s been about Walsh and Associates but with recognising a new opportunity covid-19 it has been forced to and having the confidence to give change tack. it a go. The lockdown changed that “Farmers have taken up on the handshake to a tap on a keyboard idea very quickly. They are willing as the company held to its first to give it a go too.” Livebid online auction last week. More than 220 weaned beef “With no saleyard operation we calves and 80 Hereford-Angus R2 had to find new ways of moving heifers from five South Canterbury livestock so we said ‘let’s keep it on farms were posted online 48 hours the farm’,” Peter Walsh said. ahead of the first auction. With a smart back office team It attracted 8500 views with 310 and the latest technology the registrations for the livestreamed independent livestock broker auction. came up with Livebid. “We are all very pleased with “We compared to other online how our first Livebid panned out.” livestock selling platforms and we All but one line of in-calf heifers do use them too but we wanted to sold through the auction at prices get a design that’s more interactive that pleased vendors. with the public. Angus-Hereford steers sold from “We came up with live $2.70-$2.95/kg LW while Angus commentary videos with more steers ranged from $2.90-$3.15, options in the bidding system Angus heifers $2.85-$2.90 with to bring a more people feel Shorthorn steers selling at $2.70. presentation to the action at sale “Did it meet expectation – well time.” we haveMM never done it before so we The Livebid site has live FARMERS WEEKLY HALF PAGE 265W X 200H didn’t really have an expectation commentary, videos and photos
NEW CHALLENGE: Shenley Station vendor Rit Fisher says he thought he’d been through it all with the challenging seasonal weather this year but covid-19 takes the cake as the station moved 800 cattle to the Temuka saleyards to prepare for its annual production sale in an online auction on Thursday. Photo: Annette Scott
but we are very pleased with our first,” Walsh said. He says the site is more userfriendly with more options for buyers than other sites. “We wanted to bring a people presentation to the action at sale time. “This is one good thing to come out of covid-19. “I’m not saying this is the be-all and end-all but an opportunity to give it a go and in time it may well be the way of the future. The annual production sale of Shenley Station was the next up for Livebid offering 800 Angus-
Pure steer calves and heifers on Thursday. The cattle were delivered via the Temuka saleyards. Given the tough climatic season Walsh said it was fair to say the stock were not up to their usual Shenley weights but there was some very good buying in line with the station’s reputation. Steer calves sold from $2.90$3.10/kg LW and the heifers $2.40$2.90. Vendor Rit Fisher said having been through the bad times managing challenging seasonal weather and juggling a feed
shortage he thought nothing worse could happen. “And here we are now with covid-19 on top of it all to really mess the rest of the year up,” Fisher said. “Livebid was new for us all and we were holding our breath. “The line-up of calves was the best we could do in a tough season. They carry powerful genetics for top-end finishers. The calves are ready and waiting to put weight on from here. “I wish all buyers well with the cattle and a better year than we have had to date,” Fisher said.
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12 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
Meating needs of hungry Kiwis Gerald Piddock gerald.piddock@globalhq.co.nz TWO farmers have stepped up to help the growing number of families affected by food poverty. Meat the Need is a new charity set up by Siobhan O’Malley and Wayne Langford to provide a way for farmers to give livestock to food banks and city missions. The livestock is processed by Silver Fern Farms where it is turned into mince and distributed to charity groups. O’Malley said it is not quite right that farmers can feed millions of people overseas but there are still people hungry in New Zealand. Langford said the concept was planned long before covid-19. While he acknowledged farmers are under their own pressures from banks and the questions around their environmental performance he encourages the sector to think about those on the breadline. “Have a think about that mother trying to feed her three kids at the moment and there’s nothing in the cupboards. If ever there was a time we should reach out as farmers it would be now.” Langford hopes to get 15002000 animals donated by the
charity’s third year of operation. “It sounds like a lot but when you consider three to four million go through the processing plants every year it’s a small percentage of what we are doing. “It’s just a little bit when the farmer can.”
If ever there was a time we should reach out as farmers it would be now. Wayne Langford Meat the Need Farmers wanting to donate an animal can do so in two ways. If they are a SFF supplier they just contact their agent. Nonsuppliers can donate via Meat the Need’s website. “You can either come through us and we’ll send in the animal for you or, alternatively, you can donate a virtual animal online – send it to your processor and then donate virtually online.” That virtual donation is the cash equivalent of the price of the animal, which is then sent to the
• • •
charity. It uses the money to buy mince from SFF. City missions and foodbanks can register with Meat the Need on its website to get deliveries. Langford hopes Meat the Need will be around for the future in a similar way the IHC calf scheme is. “As time goes on there’ll be an increasing need for this in terms of food poverty and that type of thing.” Meat the Need began as an idea after Langford donated some mince to his local food bank about 18 months ago, The Golden Bay dairy farmer was told by the food bank operators the mince would last them for two months, which surprised him. While he was milking his cows the following day he thought no one would ever go hungry if other farmers made similar donations. He soon realised extrapolating the concept across the country would be a challenge. “Eventually, I got to the point where I was thinking this idea was bigger than me and during that time I met up with Siobhan O’Malley. “We were having an entrepreneurs meeting and we pitched our 10 best ideas and this one was by far the one that came to the top of the pile. It was something we were both interested in and wanted to achieve. Langford said while they had interest from a number of processors, Silver Fern Farms really wanted to be involved. It is also a nationwide company that processes cattle, deer and sheep and can handle the predicted volume of stock. It took a year to organise its logistics, funding and meet food safety requirements. The meat is turned into 500g packs of mince rather than cuts for practical reasons. It makes it easy for food banks and city missions to handle and store and gives more cooking options for those receiving it. In the future, Langford hopes it will be expanded across the primary industry to include dairy, horticulture and arable products.
LASTING: Meat the Need co-founder Wayne Langford hopes it will be around for the future in a similar way the IHC calf scheme is.
The initial response since Meat the Need was launched on social media on April 19 has been huge, he said. “I’m so thankful for that because whenever you have an idea like this you wonder if anyone will actually buy into it. “I think the need from farmers has been there for some time and I think it’s shown in the first 24 hours that I think this is one they’ll pick up.”
Being a registered charity it has established a board, which includes both Langford and O’Malley as well as Jessie ChanDorman, Julia Jones, Richard Luxton and Cheyenne Wilson.
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A2 sales surge and shares rise or small
Dose them all MONTHLY
Hugh Stringleman hugh.stringleman@globalhq.co.nz
A2 MILK Company has polished its already shiny reputation with a revenue growth and earnings upgrade arising from increased sales because of covid-19 in China and Australia. Consumers buying infant nutrition products and related pantry stocking via online and reseller channels have boosted revenue in the three
months to March 31. A significant depreciation of the New Zealand dollar against the United States dollar has also helped along with lower overhead costs because of travel restrictions, chief executive Geoffrey Babidge said. While the outlook for the fourth quarter is uncertain the company forecasts revenue for the full financial year of $1.7 billion to $1.75b (FY2019 $1.3b). The margin for earnings
before interest, tax, appreciation and amortisation (Ebitda) is forecast to be 31% to 32%, Babidge said. Though the update did not give a profit prediction, such a result would deliver Ebitda between $530 million and $560m, compared with $414m last year. After the announcement ATM shares traded near $20, a record level for the stock and about 25% higher than 12 months ago.
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14 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
We all have water quality duty Colin Williscroft colin.williscroft@globalhq.co.nz POLLUTION affects almost all New Zealand rivers and many of its lakes and aquifers but it is not the result of a single land use, a new report says. Our Freshwater 2020, the latest in a series produced by the Ministry for the Environment and Statistics NZ, says cities, farms and plantation forests all contribute to water pollution. The report does not aim to provide answers, instead giving evidence to help inform discussions about the future of freshwater resources.
The demand for water for irrigation has also increased with the area of irrigated agricultural land almost doubling from 2002 to 2017. Applying pesticides and fertilisers, increasing the number of cattle per hectare, felling and replanting pine trees and faulty wastewater and stormwater infrastructure are all listed as responsible for water pollution. Rivers, lakes, wetlands and groundwater are parts of an interconnected freshwater system and poor water quality in one part of the system can affect water quality elsewhere in a catchment, it said. Estimates from computer models show most rivers in catchments where urban land cover is dominant are polluted with nutrients and suspended sediment. Many are polluted with pathogens and heavy metals. Though an overall understanding of freshwater pollution is limited in urban areas,
where the types and sources of pollution in cities and towns are complex and their cumulative effects are not well understood, aging and inadequate wastewater and stormwater systems play a significant role. Nationally, a quarter of water, wastewater and stormwater infrastructure is more than 50 years old with 10-20% of the network estimated to require significant renewal or replacement. Older treatment infrastructure might be less effective and older pipes more likely to be damaged and leak untreated wastewater onto land or into freshwater and groundwater. Almost half of wastewater treatment plants discharge treated wastewater to rivers and lakes while the rest discharge it into the sea or onto land. Stormwater transports a variety of heavy metals, including copper from brake pads and zinc from tyres, as well as hydrocarbons from exhausts, leaking vehicles and industrial yards along with nutrients from fertilisers used commercially and in home gardens into freshwater. Solid surfaces are likely to transport more pollutants. In pastoral areas changes to farming types have had an effect on pollution with a shift from sheep and beef farming to dairy farming associated with increased leaching of nitrogen. Between 1994 and 2017 dairy cattle numbers increased by 70% from 3.8 million to 6.5m while in the same time sheep numbers fell by 44% from 49.5m to 27.5m and the number of beef cattle dropped by 28% from 5m to 3.6m. Models of the total amount of nitrate-nitrogen leached from livestock show an increase nationwide from 189,000 tonnes a year in 1990 to about 200,000 tonnes a year in 2017. They show highest nitrate-
CONTESTED: Competition for water will be created by agricultural irrigation demand for more water to combat increasing droughts, a new report says.
nitrogen leaching from livestock in 2017 was in Waikato, Manawatu-Whanganui, Taranaki and Canterbury and that dairy cattle make a proportionally higher contribution to nitrogen leached from agricultural soils than other types of livestock. Nationally in 1990, 39% of modelled nitrate-nitrogen leaching came from dairy cattle, 26% from beef cattle and 34% from sheep. By 2017, dairy contributed 65% with beef cattle 19% and sheep 15%. The demand for water for irrigation has also increased with the area of irrigated agricultural land almost doubling from 2002 to 2017, from 384,000ha to 747,000ha. The area of irrigated land rose in every region during that time but the total increase was largely because it almost doubled in Canterbury, from 241,000ha to 478,000ha. In 2017 64% of irrigated agricultural land was in Canterbury. Dairy farming accounted for 59% of irrigated agricultural land in 2017 with other types of livestock farming accounting
for 17%. The production of grain, vegetables, fruit and other horticulture made up 24% of irrigated agricultural land. As NZ’s population increases so does its demand for water. Water used in homes, including for drinking and sanitation, made up 17% of NZ’s water use in 201718 with industrial use 10%. In 1980 Auckland used about 280m litres of water a day for home and industrial use, filling tankers and losses from leaks working out at more than 400 litres a person. As the city’s population has grown, water use has increased to about 379m litres a day but the volume used per person fell to 271 litres in 2019. Despite the research, there are plenty of gaps in knowledge of the amount of freshwater used – along with how much is available. The report says the quantity of water taken from all rivers, lakes and groundwater is not known and neither is the amount of water available, which makes it difficult to know if freshwater resources are being over-exploited and how long they can continue to meet NZ’s needs.
Given the country’s economic reliance on agriculture, especially dairy farming, that’s a significant management issue, it said. Climate change will also have an effect on the flow of water in rivers and aquifers as a more variable climate will make droughts and floods more likely. Low rainfall and soil moisture reduce the growth and yield of crops while long periods of drought can make plants wilt permanently. The timing of a drought makes a big difference to its effect. In late summer when plants have mostly finished growing a drought does not have the same effect as a dry time in late winter or early spring, which cuts a plant’s productivity. In dry years more irrigation might be needed to make up for the lack of rain. Droughts are expected to increase the demand for water from agriculture and create competition for freshwater. The demand is likely to be greatest in already droughtprone regionss because they are expected to experience more frequent and intense droughts.
Emissions fell while economy grew Colin Williscroft colin.williscroft@globalhq.co.nz THOUGH greenhouse gas emissions fell by only a small amount in 2018 compared to 2017 the good news is they fell at a time when the economy grew, Climate Change Minister James Shaw says. According to the annual inventory of greenhouses gases net emissions fell by 3% in 2018 compared to 2017 levels with gross emissions down 1%. During the same period GDP grew by 3%. “That proves it is possible to decouple emissions growth from economic growth,” Shaw said. What needs to happen now is for the reductions to be accelerated. In 2018 emissions from the agriculture sector increased by about 0.7%, mainly from increased emissions from beef and dairy cattle and sheep and
an increase in the application of synthetic nitrogen fertiliser. Shaw welcomed recent work done by AgResearch scientists that shows hill country sheep and beef produce only half the amount of nitrous oxide than previously thought, which will reduce agricultural emissions by 4.4% and total emissions by 2.1%. There is still a long way to go but he is confident that through He Waka Eke Noa, the primary sector climate change commitment, agriculture can meet its emissions reduction targets. “That’s the whole point of having the sector lead on it. They were very strong on this. They said ‘give us the problem, let us own it, we want to show the country we can do it’.” The state of emergency in response to covid-19 has held up the Emissions Trading Reform Bill at the Environment Select
Committee but Shaw expects it to go through without too much difficulty, albeit about six weeks behind schedule. Greenhouse gas emitting sectors of the economy other than agriculture can expect to be targeted if the Government is returned after the election. The Government’s main climate change focus during its first term has been putting a framework in place to reduce greenhouse gas emissions, including the Zero Carbon Act. The next move will to be into active work in specific sectors with the initial focus on transport and industrial heat. “There’s substantial technology available there now for a price that’s within cooee of what the cost is now.” Putting off steps to address climate change is not an option. “When we look at the pathway
to zero net emissions by 2050 there are two things that stand out from this report – firstly, we have a long way to go but secondly, that the scale of what is required goes beyond what current policies will achieve. “Building on our track record of progress is going to be crucial if we are to solve climate change and create a better future for our kids and grandkids. “Right now people are understandably worried about their immediate future, which is why we must continue to do everything we can to reduce the economic pressures people and business up and down the country are facing. However, we can do that in a way that also helps the climate. “The report gives us the most up-to-date picture of how much we still have to do to solve climate change. Narrowing the
LOOK OUT: Sectors other than agriculture will be the target of concrete steps to reduce their emissions if the Government is returned, Climate Change Minister James Shaw says.
gap between where we are now and where we need to be is the difference between handing our children a better world or more crises in the future.”
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FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
15
Demand good for Kiwi grains Annette Scott annette.scott@globalhq.co.nz DESPITE a 500% increase in demand for flour under lockdown there is no shortage of grain and following lockdown that’s good news for the wheat industry, Arable Food Industry Council chairman Ivan Lawrie says. Talking to millers he said there’s no lack of flour and there’s increasing demand for grain. “First it was toilet paper flying off the shelves, next came flour, pasta and bread and still the supermarkets can’t stock the shelves fast enough. “There is unprecedented demand but no shortage of supply,” Lawrie said. Millers are working flat out so there’s no lack of product. The shortage on supermarket shelves is simply because of a switch in demand from 20kg bags to bakeries to 1.5kg packets as oldschool home baking became the order of the day. “It’s been a challenge to keep up the smaller packages and the fear now is what happens after lockdown when you look in the pantry and wonder what you are going to do with 15kg of flour. Following a good harvest cropping farmers are well placed to keep the mills supplied with grain and there’s certainly every indication demand will increase. “The market is strong and there is no lack of supply because we
have had a very good harvest and demand is good,” Lawrie said. “We could take a very selfish approach and blow the trumpet for this is why New Zealand needs to become self-sufficient in milling grain supply but we are not taking that approach.” However, it does highlight the vulnerability of the system and bodes well for NZ’s arable sector goal of returning to milling wheat self-sufficiency by 2025, Lawrie said Despite having ideal growing conditions and achieving some of the highest yields in the world, most of the bread sold in the North Island is made from imported wheat.
The market is strong and there is no lack of supply because we have had a very good harvest and demand is good. Ivan Lawrie This is the reality because it’s possible for North Island mills to land wheat from Australia cheaper than South Island farmers can send it up because of the high transport costs associated with shipping large volumes of grain.
YAY: Strong demand for milling wheat following a good harvest is good news for New Zealand’s wheat growers. Photo: Annette Scott
Before deregulation NZ was selfsufficient in milling wheat. “We can do it again so long as we have the right infrastructure set up to do it efficiently. “We are getting the message it’s what NZ consumers want.” The goal is bold and ambitious but with strong, committed partnerships between all stakeholders it can be achieved, Lawrie said. A bread consumer survey commissioned by the Foundation for Arable Research Lawrie indicates strong consumer preference for NZ grain. “Consumers want to know the bread or baked goods they are buying are made from locally sourced, traceable wheat.” One major issue yet to be hammered out is the cost-effective way of freighting South Island grain to the North. The second is ensuring understanding of exactly what consumers want and producing enough grain to meet demand.
“We have two groups each working separately on these two key issues to get the right infrastructure and logistics in place.” NZ growers produce about 100,000 tonnes a year of wheat for baked goods. This amount will have to increase to 300,000 a year to meet demand. There’s also been a notable increase in demand for speciality and organically grown grains. “This is a niche market but proving a lot larger than we think. “We are looking at expanding growth in the North Island but there are challenges with storage.” There’s also potential for milling wheat to fit in with other farming practices, both in the meat and dairy sectors in crop rotation such as dairy finishing units growing milling wheat on 15% of their land. The crop would use the nitrogen produced by the cows and grow a good wheat crop.
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Meanwhile, cropping farmers have turned their minds to new season crops and getting seed in the ground. So it’s key for growers to have early indication of what market demand will be. “Farmers need to hear early so they can grow crops accordingly to meet the market demand come harvest. “In saying that, contracts have come out earlier and uptake has been good with existing demand for all contracts fulfilled.” Top milling wheats are fetching $420-$450 a tonne. On the global scene while there are reports coming out that countries like Britain are holding back grain to keep for their own supply, helping to push grain prices to season highs, Lawrie said that is not affecting the NZ market. Prices for Australian grain have also lifted as traders try to cover positions for the second half of the year.
News
16 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
Sweet surprise for honey firms Richard Rennie richard.rennie@globalhq.co.nz A SURGE in consumer demand for honey, particularly manuka, has given a welcome boost to prospects for one of the country’s largest producers, coming on the heels of a good harvest season. Strong demand in March for Comvita propolis and manuka honey products resulted in on-line sales growing by 70% in 10 days. That did much to offset the losses experienced in retail sales and the major drop in sales to tourists in New Zealand. A month later Comvita chief executive David Banfield says the initial surge has continued, resulting in strong sales gains that delivered double digit growth with good sales across all major markets. The challenge for the industry is to maintain the high quality consumers now expect from manuka honey. “We are confident with our strict manufacturing protocols and largely undisrupted logistics network we can continue supplying our customers across all our markets.” Covid-19 has made consumers re-assess their priorities and the health of themselves and families will become an even bigger priority for discretionary spending. “This should benefit natural products like manuka honey,
SWEET AS: Comvita chief executive David Banfield is confident Comvita and manuka honey can weather the covid crisis in good shape.
propolis and olive leaf extract.” Unique Manuka Factor Honey Association spokesman John Rawcliffe said the industry now has one eye on global market prospects three to four months out as consumers adjust incomes to what could be a more austere income environment. “Sales have been very good during this period. Our initial concerns were ‘can we harvest and look after hives?’ which the Government said we could. Then it was ‘can we ship the honey?’, which despite a higher cost we are able to do and consumers are buying it.
“But looking further out we need to know we have distinguished our NZ manuka from other countries’ honey when that discretionary spend drops. If we do not continue to protect the term N manuka, consumers will just go for a cheaper product.” Rawcliffe said there is much work going on to re-examine manuka packaging and labelling, including moving proposed health benefits more to the front of the labelling. In a recent report on food industry response to covid-19, KPMG agribusiness global head Ian Proudfoot said consumers
will increasingly seek food products that build immunity and minimise the risk of contagions, requiring an emphasis on helping consumers discover unique health benefits of different food products. That includes highlighting nutritional benefits and moving them from the back to the front of packaging. Rawcliffe said that is exactly what manuka producers are working on and making the manuka standards determined by the Ministry for Primary Industries clearer to consumers. The sector is doubling down on efforts to protect the NZ Manuka proprietary brand, which has already gained statutory protection in the United Kingdom Trade Registry. Last year the industry welcomed an injection of almost $6 million to help maintain NZ Manuka’s provenance claims as it faces threats from Australian and South American production. The funds are also being used to put more science into proving health claims and purity standards. Banfield said Comvita is working as an advocate for protecting manuka honey provenanc and he was proud of the work done to date. ApicultureNZ chief executive Karen Kos said there is also some indication the rising manuka tide has lifted all boats in the domestic honey industry.
Conventional honey prices have been at all-time lows in the past year, barely fetching $3.50 a kilo despite a $6-$7/kg breakeven needed. “We are also getting reports of increased demand for all honey types at local retail level, which is encouraging. It is seen by consumers as a natural, healthy product and it has been moving off supermarket shelves strongly.” Producers had two years of lean returns before the covid outbreak. Kos said prices are not where they need to be yet but are strengthening. However, she cautioned any rise domestically in sales is offset by the loss of tourism sales. “And we have advised our members about their options including leaving some honey behind in hives over winter. We are also at least in the fortunate position we can keep operating as an industry, maintaining hives and looking after bee populations.” After varroa mite infected NZ hives in the early 2000s it is now impossible for bees to exist without human intervention to control varroa levels.
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Free-range chooks scoop top award Richard Rennie richard.rennie@globalhq.co.nz LIVING a carefree life comprising a diet of bugs, apples and organic maize has earned the chickens raised by Hawke’s Bay brothers George and Ben Bostock New Zealand’s supreme food award. The Bostock brothers were named the supreme champions for their organic whole chicken brand in this year’s Outstanding NZ Food Producer Awards. The firm was established by Ben five years ago. Today the brothers supply organic, free-range chicken to butchers, supermarkets and the pre-covid-19 restaurant trade. “We are definitely what you could describe as the purple cow of the chicken industry. It’s an industry dominated by four very big players and we only form about 0.3% of the market,” George said. The poultry sector is estimated at about 120 million birds a year. The brothers were determined to rear genuine free-range chickens and were dismayed when they saw what was categorised as conventional freerange. “The chickens were still housed very densely with up to 50,000 chickens in a shed and the only thing that meant it could be called free-range was that
they could go into a small area outside,” he said. NZ has no formal certification system regularly audited for freerange claims. A trip to France to view freerange, organic operations there opened their eyes to what a true free-range, premium chicken operation could be. The Bostocks have fashioned their operation along those lines, running a maximum of 6000 birds a shed with over a hectare of land for them to roam on, much of it an old apple orchard they bought especially. Typically, their chickens have 30 times more space than a conventional free-range chicken. “They have a diet that includes the older style green apples in the orchard like Granny Smiths along with the bugs, grass and organic maize we grow ourselves to feed them with so it’s a pretty good life and a good diet,” he said. The organic, free-range standard provides the specifications lacking under conventional systems, including limiting the number of chickens per square metre. The organic standard extends to growing time and does not permit slaughter younger than six weeks old. Bostocks are typically processed at eight or nine weeks. “This gives more time for the chicken to develop more fat
within the meat and, of course, for more flavour to develop.” The brothers are also the only company using air chilling to treat chicken carcases post-slaughter. “All others drop the chickens once killed into a chlorine solution. This has been banned in the European Union but is still used here. “The result is a carcase that has a larger amount of water in it that becomes part of the weight sold.” The brothers share an organic heritage with their father John, a high-profile organic apple grower in Hawke’s Bay who led the charge to keep Hawke’s Bay GE free. “We see the region as being quite special in terms of how it is the source of so much goodquality food nowadays. Winning this award is a great plus for us – to be judged as the best by NZ’s top foodies is very special.” The brothers were also named Paddock Champions with their whole chicken and won gold medals for their chicken thigh and breast products. Other winners included Pure NZ ice cream as the dairy champion and Zaroa for its speciality Angus beef brisket. Otago Farmers’ Market was awarded the People’s Choice award while Fernglen Farm the People’s Choice award for its pure sheep’s milk. The awards were judged in early
WINNERS: Ben Bostock and his brother George on their Hawke’s Bay organic free range chicken farm.
March by 25 judges, including leading NZ food writer and chef Lauraine Jacobs. She said the entrants are helping regenerate NZ’s food system into a more resilient, healthy and socially responsible industry. “It is good for our environment, good for people and good for business,” she said.
MORE:
A full list of winners is available on line at: https:// outstandingfoodproducer.co.nz/
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AginED ED
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FOR E FUTURIA G R R S! U PR EN E
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Volume Four I April 27 2020 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz
Photo of the week: All In A Day’s Work
In your paper 1 Send us a photo of your favourite place/thing during lockdown. 2 Go outside draw us a picture of your outlook (garden, paddock, farm). 3 Write a caption and share them on our Facebook page or email to agined@globalhq.co.nz
STRETCH YOURSELF: Amber and Zanthia Bardsley making short work of clearing blackberry in Hawke’s Bay
1 Go to www.farmersweekly.co.nz
Have a go:
1 Write a piece about how you think people’s perceptions of farmers and agriculturists have changed (or not) over the last several weeks due to the impact of coronavirus across the globe. 2 Send us your response to agined@globalhq.co.nz
2 Find and watch the OnFarmStory on Sophie Barnes, “Sheepish by name, not by nature”. 3 Where does Sophie originate from?
STRETCH YOURSELF: 1
We may choose your letter to feature in Ewe said!
AginED puzzler
Whereabouts in New Zealand is the farm that Sophie shepherds on?
2 What school subjects does Sophie believe are used to good advantage farming? 3 How are these used? 4 How does Sophie share her experiences/ work with interested parties? Do you think there is a market for more farmers to share their experiences through social media platforms?
1 Go to the AgriHQ Market Snapshot page. 2 What is this week’s North Island Steer price? 3 Is this better or worse than last week? 4 How does it compare to last year?
STRETCH YOURSELF: 1 Look at the North Island stag slaughter price graph. 2 What is the $/kg difference between current levels and last year? 3 Do some research; name a country that imports NZ venison. 4 Can you identify another product that comes from deer other than venison?
ACROSS
DOWN
4.
Breed highly prized for their wool
1.
Helps to keep pasture at optimum
9.
Mechanical workhorse of most farms
2.
A common breed of farm dog that barks loudly
10. Holds water to keep stock hydrated
3.
Long dry periods create this
5.
Thorough, up to date agri-news publication (7,6)
6.
A castrated male sheep
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A male deer
8.
When cattle and sheep are sorted, usually happens in the yards
11.
Young cow that hasn’t been bred
15. Frequently mainstay transportation on farm 16. Process when the wool is taken off the sheep 19. Product that comes from deer antlers 20. Female Sheep
FILL YA BOOTS: 1 Have a look at the jobs on offer, which would you like to apply for and why? 2 Find the weather page, what is the forecast for your area this week? 3 Have a look at the farms for sale, which do you like the best and why?
12. Accurate, complete data analysis can be garnered here 13. Often used for high country mustering 14. Traditional dairy cow
Share your AginEd photos on our Farmers Weekly facebook page Remember to use the hashtag #AginEd Letters to: agined@globalhq.co.nz
17.
A common breed of sheep used for both meat and wool
18. A castrated male bovine
Newsmaker
18 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
COLLABORATION: Sirma Karapeeva says the primary sector needs to work together now more than ever before.
New role a baptism of fire Sirma Karapeeva took over as Meat Industry Association chief executive earlier this month, moving up from trade and economic manager into the role after industry stalwart Tim Ritchie retired. She couldn’t have picked a more challenging time to start, as Colin Williscroft found out.
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T WAS mid January when Sirma Karapeeva was named as the Meat Industry Association’s new chief executive. Covid-19 had been identified in China the previous month but no one had any idea what an impact it would have on global health and economies. For the New Zealand meat industry the effects were beginning to bite by late January with the shutdown of the Chinese market, which went into a big dive in February. China’s logistical and distribution shutdown limited the capacity to offload NZ’s primary exports at ports while at the same time cold store availability was limited, the effective result a severe restriction on getting products to consumers. That, on top of the restaurant trade shutting, had a dramatic effect on supplying what in recent years has become an increasingly significant export market, especially during the last 12 months as a result of African swine fever, which devastated China’s pig population, forcing consumers to look elsewhere for protein. Fortunately, Karapeeva says, the NZ meat industry had pursued a policy of diversifying its markets to more than 120 worldwide so when China was no longer a viable option companies redirect products to other countries, with beef exports increasing to places like the United States and Taiwan
and sheep meat being redirected to Britain and Malaysia. Now China is coming back online she is optimistic the market can get back on track as countries like the US are now being hit themselves, resulting in significant disruption. “We are waiting to see how that is going to play out. It’s coming in waves.” It’s a long way for someone originally from southeastern Europe who spent some of her formative years in Africa. Karapeeva was born in Bulgaria. She then lived in Tanzania and later Zimbabwe where her architect mother was involved in building medical storage facilities, hospitals and clinics. When it became time to consider university most of her friends were going to South Africa but Karapeeva was looking for more of an overseas experience. She has a Danish half-brother so moved to Copenhagen where, after learning Danish, she took courses in social and political systems and current affairs. While living in Denmark Karapeeva met New Zealanders travelling on a gap year and they told her about universities here. Having already developed an interest in international business relations she heard Massey University offered a business studies degree with a focus on international business and business law. “Massey had a very good system
set up for international students and was very proactive after I got in touch.” By the time she left Palmerston North in 1989 Karapeeva had a first class honours degree in her chosen field. At the Ministry of Economic Development she progressed from graduate policy analyst to its regulatory policy team then its trade environment team, where she was involved in a variety of trade negotiations and free trade deals, including with China, Malaysia, Hong Kong and Taiwan.
We need to position the sector as a whole.
From there she moved to the Primary Industries Ministry, taking with her valuable trade negotiation knowledge and experience. She says it was a natural progression, providing a chance to dive more deeply into issues affecting the primary sector, the core foundation of the NZ economy. In today’s uncertain times Karapeeva says collaboration between different parts of the primary sector is more important than ever. “It’s a no-brainer. We have to find a way to make one plus one equal three.”
That involves taking the story from the farm gate and using the input of organisations like Beef + Lamb and DairyNZ. “There are shared interests there. It’s a symbiotic relationship and one is not the same without the other. “We need to position the sector as a whole.” A key focus for the MIA is working closely with Beef + Lamb to ensure the sector’s story is understood by not only the public but also the Government. She says the meat industry has a large manufacturing component to it, which is heavily regulated across a variety of areas, including education and training and environmental impact so it’s important to work closely with the Government on all those issues. That means ensuring regulations are fit for purpose, based on science but with enough flexibility for the industry to get on and do what it needs to for the economy. On a domestic level Karapeeva recognises many regions have been grappling with drought so there is real pressure on farmers wanting to shift stock with animal welfare a big concern. She says meat companies are doing their best to optimise stock throughput but strict operating protocols to control the spread of covid-19 have had a big impact on the number of people on processing chains. Despite the challenges the
industry is well placed to get through the testing times it is facing. The diversified markets it has around the world will help match products to new customers with increased opportunities in retail markets a potential solution to uncertainty surrounding the food service industry. Recent product development work focusing on shelf-life and packaging will help support that. NZ’s trusted reputation as a supplier of high-quality, natural food product will also be important while marketing programmes will need to highlight food safety and its nutritional value and that it’s produced in line with high animal welfare standards. As a country NZ needs to be mindful of other countries trying to protect their own primary sectors in what will be testing economic times for a while yet. She says NZ has a longstanding commitment to fair and open trade, which must continue. “If we see countries putting in place measures that distort the trade environment, that affect the flow of goods then we need to stand up and call it out. “International trade rules must continue to operate. “If we don’t call out moves against open trade and instead allow them to proliferate it will set us back and the recovery will take longer.” And no one wants that.
New thinking
THE NZ FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
19
Virtual surgery helps rural users Rural patients are likely to be big winners with the launch of a new health app released just as the covid-19 lockdown started to bite. As visits to local doctors became almost impossible, the app has freed up medical resources and made visiting a doctor a virtual reality. Richard Rennie spoke to one of its founders, Dr Sasha Kljakovic.
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ITH visits to doctors’ clinics a fraught affair during lockdown and an increasing number of general practice clinics feeling the financial strain the Well Revolution app is providing a means for both patients and doctors to preserve their health and their businesses. After four years in the making one of the creators, west Auckland doctor Sasha Kljakovic said the company was prompted to hit the market as covid lockdowns were signalled, knowing its time had come. “We released it to our first partner GPs the week before the lockdown. “We felt we had an obligation to support the country’s GPs getting it out there and it’s starting to build in both patient and GP numbers.” The freely downloadable app has been designed to enable doctors to provide on-line consultations, prescribe medicines, follow up consults and send alerts to patients for the cost of only a credit card commission. But the ability for a patient in need to also source a doctor urgently when their usual GP is unavailable gives the app unique 24/7 health care security rural users will appreciate, Kljakovic says. “We have partnered up with MedRecruit, Australasia’s biggest medical recruitment company to provide additional doctors 24/7. “So, if someone has something urgent and can’t get their usual doctor there are other trained GPs
in the wings to provide a consult.” That feature also provides valuable locum work for young doctors seeking extra income. A key feature of the app is what it is not focused on. While many think video links are critical for health care consults the app’s creators have steered clear of it for first point of contact.
Covid has made many realise they need to be digital but they are not set up for it nor do they have the resources because so much is committed to conventional premises and staff. Dr Sasha Kljakovic Well Revolution “Typically, the consult will simply be through simply messaging their doctor through the app. Consults can happen quickly through instant text and voice, even photos. “If necessary, they can then go to video but it is not often required,” she says. With rural broadband still patchy in areas and upload speeds slow she believes this holds particular appeal for rural users. Waikato District Health board chief executive Nigel Murray fell into disrepute two years ago while trying to launch the remote health
project SmartHealth to connect doctors and rural communities. SmartHealth, based on an American company’s concept, failed to gain users and fell foul of Waikato doctors. The project met with cost blowouts of $25 million and resulted in Murray being investigated by the Serious Fraud Office. But Kljakovic said the Well Revolution system has doctors and patients at its centre and its founders have long recognised any great financial return from the project will still be some way off. “Anything in healthcare that involves innovation also requires a lot of time and tenacity to get it through,” she said. Rural user benefits also include the ability to have prescribed medications delivered for a cost of $5, anywhere around NZ. Kljakovic said the company is not seeking to replace patients’ existing GPs with remote, unknown practitioners and wants the app to enhance existing practice-patient relationships by making consults more flexible. So far there is a minority of rural doctors on the app but a healthy number of urban fringe practices have signed on. Kljakovic said the app aims to be agnostic to whatever patient management system doctors are using. “Covid has been tough on doctors’ practices. I know of 10 practices in Auckland that have shut down and the Government has just announced it will be stopping the $11 million payment set aside to help GP practices. “Covid has made many realise they need to be digital but they are
Dairy sector levy voting is under way Hugh Stringleman hugh.stringleman@globalhq.co.nz
VOTING has begun on the sixyearly renewal of the DairyNZ milksolids levy of 3.6c, which raises about $65 million a year for industry-good activities. From mid April to the end of May eligible dairy farmers can vote on whether to continue the levy, which has not changed since 2008. Voting packs have been posted to all dairy farmers, sharemilkers and leaseholders who supplied milk from cows to a processor last year. The DairyNZ board has said the rate will remain at 3.6c for the 2020-21 season and any change will be signalled well in advance. The levy order under the Commodity Levies Act expires
in November and DairyNZ needs to make an application for a new authorisation to the Ministry for Primary Industries with a clear indication of farmer support. Three-quarters of the money raised each year is split equally between the DairyNZ work categories of farm systems and resilience, research and development and biosecurity. Support of the TBfree national disease programme is the biggest single cost. Many dairy farmers have pointed to a big increase in levies by the introduction of the Biosecurity Response Levy of 2.9c in September to combat Mycoplasma bovis. It might produce some resentment and a backlash during the voting process. The average-sized dairy
farm with 150,000kg milksolids production pays just under $10,000 annually in levies – 55% to DairyNZ and 45% for M bovis – plus Beef + Lamb levies on cull cows and calves. DairyNZ chairman Jim van der Poel said a yes vote will ensure continued benefits from the industry-good organisation and delivery of the Dairy Tomorrow strategy. “With the challenges of covid-19 the changing nature of farming has never been more real. “I encourage farmers to vote and ensure their dairy farm neighbours and friends have their say too. “DairyNZ is a farmer-owned organisation – it’s important we receive their vote to continue supporting our farmers through science, research and advocacy.”
DIGITAL DOCTOR: Dr Sasha Kljakovic says the Well Revolution app will hold much appeal to rural patients.
not set up for it nor do they have the resources because so much is committed to conventional premises and staff.” Being able to run a virtual clinic without the commitments of wages, leases and building compliance might open up options for younger doctors wanting to establish a practice and help in rural areas where demands are high on a small
number of medical professionals. “And we know farmers can be terrible for delaying visits to the doctor – this makes it a simple affair, prompting them to act earlier before things get worse.” Kljakovic, who also runs Facebook health shows, is confident the app can be used in future for similar information seminars to different sector groups.
Discussion groups go online during lockdown DAIRYNZ has gone online with its farmer discussion groups in a bid to help farmers keep in touch with each other during the covid-19 lockdown. Going online means farmers can join the discussion from their living rooms, offices or dairies. “We even had someone the other day who tuned in while he was working in the milking shed,” DairyNZ acting general manager of farm performance Sharon Morrell said. “The farmer put his phone on silent for most of it and was able to take part as if he’d been at a meeting in person.” The online discussion groups are an important way for farmers to provide support and ideas to each other, replacing the face-to-face discussions. “It’s very important we ensure our farm teams, families and supporting services are safe and implementing the right measures to protect themselves while
continuing their work on farm as essential businesses. “But we’re also keen to ensure our farmers are able to catch-up to talk about their activities and current priorities,” Morrell said. DairyNZ is hosting the online discussion groups for farmers across New Zealand in the various regions, including Northland, Waikato, Bay of Plenty, Taranaki, Lower North Island, West Coast and Southland/ South Otago. Most sessions run for 60 to 90 minutes and people can attend for as long as they like. Farmers say the technology is easy to use – just click on the link to join a virtual room where everyone enjoys the opportunity to hear from each other. Farmers can join a discussion group by going onto the DairyNZ website and clicking on the events section. From there, click on a discussion group in their area and send a message asking to join.
Opinion
20 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
EDITORIAL
Farmers will have to adapt
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HILE farming has continued throughout the covid-19 lockdown it has been far from plain sailing for many. Selling and processing stock have been the biggest headaches, with the yards shut down and the meatworks slowed by social distancing. As we hopefully move to level three this week it looks as though processing, at least, will pick up. Meat companies say they’ll be back working to near capacity, which is good news for those waiting to move stock from their parched farms. Farmers will understand the safety of the essential meat processing workers is the top priority but the hold-ups they’ve experienced over the past few weeks as the schedule drops will still have been very hard to take. Feed is in short supply and while there’s been some decent rain in Waikato it’s still tinder dry in Hawke’s Bay and other parts of the country. What has been heartening to see is the swift and innovative move to online stock sales. While many of these platforms have been around for some time, circumstances mean they’re now essential to the continued trade of stock. Sheep and cattle continue to be sold and moved to where they need to be. Our industry relies on this movement and farmers and stock agents have adapted pretty well to this new environment. It will be interesting to see whether these new ways of doing things will stick once lockdown ends. People in all walks of life are finding many of the things they used to think were vital are not. People are working from home quite happily in some instances, they’re buying things online rather that in person and some say these habits will continue. Farm businesses always evolve as new technology emerges and consumer habits change. New Zealand’s farming industry has traditionally been quick to pivot in response to these changes. Covid-19 has shown farmers and processors are still nimble and can overcome great challenges.
Bryan Gibson
People just disappeared overnight Neal Wallace neal.wallace@globalhq.co.nz I AM writing a book on a successful businessmen who heads one of the country’s largest family-owned tourist companies. His business interests include guided walks, ski fields, a hotel and numerous tourist activities. The timing could not be more compelling. When I started researching the biography in December it was shaping to be just another garden-variety year for the tourism sector. Obviously, it has been anything but. Storms in February temporarily closed his guided walks but the arrival of covid-19 a month later totally becalmed his business. Overnight, people – the fuel for his business – disappeared and that was weeks before New Zealand went into lockdown.
Asians, in particular, stopped travelling as the virus spread through China, South Korea, Taiwan and Singapore and in doing so the stuffing was ripped out of NZ’s $13 billion tourist industry. Their absence was especially noticeable in Queenstown with hotels, cafes, restaurants, bars and streets noticeably empty long before covid-19 and levels one, two, three and four became part of our vernacular. I am learning much about the logistics and challenges of tourism. In the days before lockdown trampers had to be airlifted off the tracks so they could connect with flights home. A new chairlift has been installed on one ski field and splicing the rope is an incredibly skilled job. The only people who can do it live in northern Italy, that country’s covid-19 hotspot. It is unlikely to be ready for
SECURE: Farming is tough and will face many new challenges in the coming year but there is some comfort people have to eat, Neal Wallace says.
the ski season, if we have one. The way the subject of the biography is responding to the greatest and most devastating challenge to his business is inspirational. He worries deeply about his staff, as is his nature. But he is calm and level-headed as he methodically works through the options while also looking for opportunities. He tries to control what he
can, realising he has no sway over covid-19. Farming is tough and will face many new challenges in the coming year but there is some comfort people have to eat and NZ produces food. In contrast, tourism is totally unforgiving. When it is hot it is hot. When it is not it is not. On the bright side I will have a fascinating final chapter for my book.
Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Stephen Bell 06 323 0769 editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Colin Williscroft 06 323 1561 colin.williscroft@globalhq.co.nz Annette Scott 03 308 4001 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Gerald Piddock 027 486 8346 gerald.piddock@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com Riley Kennedy 027 518 2508 Cadet journalist riley.kennedy@globalhq.co.nz
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Opinion
FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
21
Connectivity boost will help regions Andrew Hoggard
A
S THE financial toll of containing covid-19 becomes apparent it seems every person and their dog is offering suggestions on how to keep the economy moving and assist in a recovery. So, with my daughter’s trusty golden retriever Elsa asleep at my feet, here is my take. The first and most obvious impact of covid-19 has been the near collapse of our tourism industry and its unlikely recovery any time soon. Even when we get a vaccine it will take a while for international tourism, in particular, to get back even close to where it was. That alone is going to have an impact of about $17 billion less coming into our economy. That, along with fiscal fallout from other sectors that have been disrupted, is the hole we’ll need to fill. The Government is planning to borrow billions to restart the economy. This isn’t free money. It will be paid back for generations to come so we need to ensure it is invested wisely and the priority is those projects that drive earnings and sustained employment and improvements to our way of life into the long term. The risk we run is a big lolly
The
Pulpit
scramble that might generate some short-term jobs but leave us with a bunch of bridges to nowhere. Or, worse yet, a bunch of committees that can’t even build a bridge to nowhere. Agriculture is once again being looked at as the backbone to our economy. So what are the ways we can grow productivity in our sector and hope to fill some of that earnings hole? One of the best investments the Government could make is in connectivity. The Rural Broadband Initiative is running behind schedule and even when it’s finished there will remain significant gaps –
including in many rural areas. Beyond the obvious stimulus of getting more people working by being more ambitious with the work programme this would also provide improvements to on-farm productivity. Some might query how on earth better internet connectivity and cell phone coverage make the grass and the crops grow more, make the cows milk better and the cattle and sheep put on more weight. The answer is farmers get the information they need more quickly, with less physical effort and the data is packaged in such a way that allows for better decision-making. That allows more time for doing the high-level tasks that will generate that increased performance. There is lots of information we record on farms but, unfortunately, a lot of it is in silos – not the steel ones with the barley but digital ones. The connectivity to be able to send that information off farm into the cloud is only one part. We also need to be able to shift that data between various programmes with simple systems that talk to each other. Not only will this provide better business information but it also reduces the compliance burden. Often doing the right thing environment-wise is the easy part.
WIRED: Improving rural connectivity could take pressure off urban areas if fewer people need to go into the cities to work, Federated Farmers vicepresident Andrew Hoggard says.
The hard part can be proving you did it. By enabling the connectivity we also enable the potential for programmes and remote devices we haven’t even dreamed of yet that can help further drive farm performance. That potentially leads to more innovative Kiwi businesses like Gallagher, which can export our agri tech to the world. Improved connectivity to the
regions will also help attract people to work outside our major urban areas, easing pressure on city infrastructure. Connectivity can help overcome the physical distance for many. It also provides for enhanced educational opportunities. Around the world there are many people who have learned they can do their jobs from a remote location. Those people might look at the chaos this pandemic has wreaked in their countries and New Zealand might look like a pretty smart option, so long as they can communicate and do business with the world. So, rather than first building lots of train sets to take people into the cities, why not just improve the connectivity in the regions and you might find with what we have learned to do, we don’t need to hop on the trains in the first place as much.
Who am I? Andrew Hoggard is a Manawatu dairy farmer and vice-president of Federated Farmers.
Your View Got a view on some aspect of farming you would like to get across? The Pulpit offers readers the chance to have their say. farmers.weekly@globalhq.co.nz Phone 06 323 1519
Everyone must get behind farmers Cathy Quinn
A
S ALL New Zealanders wrestle with the immediate impact of covid-19 and contemplate what it will mean for them in the short to medium term NZ needs its primary producers more than ever. Our primary sector is one of the few industries continuing to work while the country is in lockdown – providing food for New Zealanders, the rest of the world and generating much-needed export receipts. It was only months ago when many of our primary producers, particularly dairy farmers, felt under siege. Fonterra shareholders were still grappling with comprehending how their co-operative could have incurred significant losses impacting adversely on farmers own balance sheets. There was a fear and perception banks considered themselves over-exposed to agriculture and were pulling back from supporting farmers. Meanwhile, farm values were dropping as the impact of changes to the overseas investment regime and bank lending restrictions were biting. It was hard to recruit staff and encourage the next generation into the industry and many feared the Government’s proposals regarding emissions and clean
HELP: The Government must create an environment that allows farmers to make the most of their production, business leader Cathy Quinn says.
waterways not only positioned dairy farmers as environmental destructors in the community but would impose both impractical and unaffordable costs on already strained businesses. Fast forward to today. Fonterra has taken steps to get its balance sheet in order and restore much-needed confidence in its farmer base. Yes, more needs to be done but farmers can see the corner has been turned and a forecast
$7-plus milk price sure helps give much-needed confidence. In light of covid-19 the banks have a reprieve from the Reserve Bank’s capital proposals so, in fact, have more funds available to support good businesses. Indeed, at times like now there is moral pressure on the banks not to unnecessarily tip businesses over that can survive with a bit of time and a sensible plan. The Government has modified its most extreme proposals around emissions and clean waterways. The wider community has been reminded of the fundamental importance of our primary producers, including dairy, to not only stocking the supermarket shelves but to NZ’s ability to withstand the covid-19 shock to our economy. Before covid-19 the biggest contributors to our economy were exports from our primary producers at more than $20 billion and tourism at about $12b. Tourism has taken a massive hit and all predictions are the road to recovery, particularly on the international side, will take some time. Some commentators suggest 100,000 jobs will be lost in the tourism sector this year – that will not only hurt our economy but many families and local communities throughout NZ. From my perspective as a governor of a range of businesses
including an interest in dairy farming I believe this is a time for our primary sector to stand tall. While primary producers continue to face challenges from natural events such as floods, drought and the vagaries of global markets the fundamental importance of our primary sector to the nation has once again been made clear to all New Zealanders. I’m not suggesting our primary producers crow about their importance to the country and their local communities. Indeed, that is not the way of farmers in NZ. They are hardworking and humble. It is blindingly obvious to the NZ public and the Government just how important our primary producers are so we don’t really need to say it. But there is an opportunity to go about what primary producers do and to lead the country by example – demonstrating resilience and good will in the local community, offering jobs to those who no longer have one through no fault of their own, taking a holiday in NZ if the opportunity for a break away from the farm arises, continuing to lift on-farm standards from an environmental perspective and go about producing the very best products in the world. It’s time to stand tall. NZ needs our primary sector. NZ might once again be reminded and appreciate the long-term importance to the welfare of our
nation of primary production. We all need food and here in NZ we are fortunate that is one of the country’s strengths - food produced sustainably, food that is safe, food available for all New Zealanders, food the world wants, a sector that creates jobs in country, generates taxes needed to fund the Government’s big spending packages and a sector that produces much-needed export receipts. In my mind our primary producers deserve to be proud of the key contribution they make to NZ’s well-being. It’s also time the Government, regulators and others influencing how primary producers operate reflect on the importance of having an environment that enables our primary producers to run sustainable businesses can flourish for the long term for the well-being of our nation. As we inevitably come out of the covid-19 crisis it’s important those responsible for creating and interpreting regulation of our primary sector don’t forget its importance and seek to impose unnecessary regulation and cost.
Who am I? Cathy Quinn has been a long-term adviser in the New Zealand dairy industry and is now a director of a range of companies including of dairy farms, tourism, building products and construction as well as being on Treasury’s advisory board.
Opinion
22 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
Water quality is an issue for us all Alternative View
Alan Emerson
I SPENT last weekend reading the Ministry for the Environment’s report Our Freshwater 2020. It is an interesting document. My main problem with it centres around the changes in measuring techniques from previous reports. We are not comparing apples with apples. I also have an issue with comparing waterways today with those in their pristine state. Any form of activity will change our water quality from pristine. There is a further comparison between urban, pastoral, forestry and native. Most of our native forests are in the mountains, the headwaters of our rivers and streams. As rivers flow out to sea they are going to pick up all manner of things, be it in the form of natural sediment, duck droppings, farming, forestry or urban. In addition, the terms natural, native and native forest all mean different things. It’s confusing. There was concern over
vertebrates in waterways, the atrisk mudfish, whitebait, lamprey, long fin eel and stokells smelt. The mudfish and the smelt are food for trout and kahawai and the whitebait, lamprey and longfin eels are food for humans as well as trout and kahawai in the case of whitebait. You cannot blame farming for the state of the fishery. I thought the report was inclusive and positive. It was willing to outline the areas where it had insufficient information and it considered water quality over the country, not just in rural areas. It said pollution of our freshwater is not the result of single land use but comes from a mosaic of cities, farms and plantation forests. Pollution of our freshwater is not just a farming issue but one spread over the entire economy. Urban infrastructure is a major cause of pollution and needs urgent attention. Nearly half of wastewater treatment plants discharge into rivers and lakes while the rest discharge into the sea or on land. Stormwater pollutes fresh water with heavy metals, hydrocarbons and fertilisers used commercially and in home gardens. Of the total length of rivers running through urban areas 99% exceed the guidelines for nutrient or turbidity levels. Nearly half of
the length exceeded E coli levels. In pastoral areas, however, nutrient or turbidity levels are exceeded in 95% though the degree of the guidelines breach is lower. E coli levels are half those in urban rivers. The figure for forestry is again at 95% of the river length exceeding nutrient guidelines. What floored me was that rivers in native forest catchments exceed the guidelines in just under 60% of the river length. The definition of native includes less than 15% urban and 25% pasture.
To concentrate on one area as we have done with farming does not fix anything.
There are other points in the document I found interesting. We have emerging contaminants that aren’t being monitored. Active ingredients in sunscreen and artificial sweeteners were found as were pesticides, pharmaceuticals, industrial waste and food additives. PFAS compounds were also present. Banned in 2011 they were widely used in food packaging, non-stick products and
UNCLEAN: Even rivers in native forests are polluted.
firefighting foams. There is also inadequate information on the quantity of water taken from rivers, lakes and groundwater, which makes it impossible to establish if they are being over-exploited or how long they can meet our needs. The report also acknowledges the future need for irrigation to help mitigate climate change. So, what all that tells me is that water quality is not just a farming problem but a national one. No matter what you do or where you are, you’re involved one way or another with lowering our water quality. To concentrate on one area as we have done with farming does not fix anything. There needs to be a strategy involving all parts of the problem. It cannot be a one-size-fits-all strategy either because different parts of the country have different issues. Rivers in some areas are highly polluted, in others they are not and that needs to be acknowledged. Rivers in native forests are
polluted as well as those running through cities and farmland. Environment Minister David Parker has welcomed the report, which is pleasing. You cannot just fix one part of the problem as is being promoted with farming. If you adopt that approach pollution of waterways will remain. I was a little surprised by the reaction of Forest and Bird. Generally they come across as reasoned, even if you do not always agree with them. In this case they came across as emotive, strident, shrill and wanting to turn the clock back. For the record I have no intention of getting back on a horse or walking the 50km to Masterton. What I would like to see from here is the establishment of an agreed scientific base level for water quality using scientists who do not have axes to grind then a strategy that covers the entire country, rural and urban and to get the groups involved to agree to that strategy then implement it. It’s that simple.
City folk must live like farmers From the Ridge
Steve Wyn-Harris
WHAT comes after covid-19? It is going to be different. Drastically so for those places that have come to rely heavily on international tourism. Quite a change, I imagine, for main streets and retailers in towns and cities. Less so for those of us in rural communities. In fact this covid-19 lockdown has not felt greatly different except the tennis coach is now a constant presence at home and has used only a quarter of a tank of petrol in a month. The drought remains a far greater difficulty than the effects of the virus and control measures. The coming weeks feel like they might be a reversal of what we experienced in the mid 1980s with rural areas relatively unaffected and urban ones severely so. Perhaps a repositioning
of the economy given the sudden acknowledgment of the importance of food production. The day I started farming in my own right in 1985 coincided with the removal of subsidies. Ironically, the day I bought a radio station a few weeks ago on April Fool’s Day coincided with the biggest fall in media advertising in history. Timing is everything. But what I learned in that first event long ago is helping with the current purchase. And maybe it’s a template to assist what other industries and places are likely to go through now. During Sir Robert Muldoon’s reign farm income from subsidies climbed to 40% of the total. The worst drought I have witnessed was the El Nino one from 1982-83. It started blowing terrible winds in September and never stopped till the following May. It evaporated all the water out of Lake Hatuma and I walked across it in April because I could. The subsidies meant you did not make rational decisions. Farmers kept more stock on through that terrible drought so they were there at balance date to collect the subsidy cheque. The animals were there but they looked terrible. I imagine if you are a business
in a port city where there has been an endless number of cruise ships rocking up or a resort town where masses of tourists flock you have never planned or expected for a time when the music stops. But when it does you better be fleet of foot. I am surprised by the stories coming out of these places of businesses already in serious financial trouble after just a month of no income and that is with the wage subsidy meaning their major cost is covered. What has happened to the decent profits they have made for years and why are their balance sheets in such a poor state? Questions that could have been asked of farmers in 1985, I guess. The predictions of widescale and sudden farm walk-offs did not occur but there was a steady movement of folk leaving the industry over the next decade or so. Those of us who hung on changed dramatically the way we ran our businesses. Jane and I survived by putting off having kids and she continued her dental nurse career as the outside income was the difference between keeping or losing the farm. I worked bloody hard and slowly worked smarter. We
lived very frugally and that habit continued until only recently. Every time we had a spare dollar, we paid off debt. Farming businesses, more so sheep and beef than dairy, mostly have strong balance sheets, which create a buffer for difficult times. We have become accustomed to adversity. And the nature of seasonal income is that we are used to long periods without income and plan accordingly. These traits suddenly make us the darlings of the banking industry. These are the sort of strategies our urban business friends are going to have to learn quickly if
they wish to survive. The hubris of our situation where we had such smugness in our economies, way of living and civilisation reminds me of Percy Shelley’s excellent poem, Ozymandias. Shelley’s inspiration was likely the British Museum’s purchase in 1817 of a large fragment of a statue of Ramesses II from the 13th century BC out of Egypt. Ozymandias was the Greek name for Ramesses.
Your View Steve Wyn-Harris is a Central Hawke’s Bay sheep and beef farmer. swyn@xtra.co.nz
I met a traveller from an antique land Who said: Two vast and trunkless legs of stone Stand in the desert. Near them, on the sand, Half sunk, a shattered visage lies, whose frown, And wrinkled lip, and sneer of cold command, Tell that its sculptor well those passions read Which yet survive, stamped on these lifeless things, The hand that mocked them and the heart that fed: And on the pedestal these words appear: ‘My name is Ozymandias, king of kings: Look on my works, ye Mighty, and despair!’ Nothing beside remains. Round the decay Of that colossal wreck, boundless and bare The lone and level sands stretch far away
Opinion
FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020
23
Why is China so important to us? The Braided Trail
Keith Woodford
IT IS just four weeks since I wrote how China was going to become even more important as a market for New Zealand’s exports as we work our way through covid-19. I subsequently took some flak from a few keyboard warriors on the grounds I was supposedly ignoring both human rights issues and also the blame for covid-19, both of which, it was said, should preclude NZ trading with China. My response is that I have not taken a public stance on those other matters and I do not intend to. Whether we should trade with China is something for others to debate. I prefer to focus on how it occurred that we have become so dependent on China and what the future might hold and where alternative markets might lie. In this article my focus is predominantly on how we got into this situation. Detailed analysis of alternative markets and the future will have to wait for another time. However, I do observe here that NZ marketers went to China because it became the easiest place to sell food and fibre products. In many cases that still applies. Alternatively stated, it was predominantly the Chinese who came searching to NZ, wanting our products rather than us developing markets in China. When we did go there and tried to engage in market-supply work closer to the consumers we often messed up. The evidence shows in general we are very good at processing products and getting them on a ship and most of the time we are reliable people with whom others like doing business. But we struggle greatly when we try to operate further down the
supply chain in foreign business cultures. That applies not only in China but elsewhere. Two big exceptions are The a2 Milk Company with its a2 Platinum infant formula and Zespri. Both have a genuinely differentiated product that others cannot easily replicate. For most other products we remain sellers of commodities and ingredients, with the final consumers unaware where the product components come from. Things really started to happen for NZ in China with the signing of the free-trade agreement in 2008. China chose NZ for its first developed-country free-trade agreement for both pragmatic and ideological reasons. There was a synergy of trading interests. And we had strong relationships with China going back to the Kirk Government elected in 1972 and even before that some might say with foundations built by Rewi Alley. Since the signing of the freetrade agreement in 2008 we have seen a remarkable increase in exports to China. I recall in that same year with a colleague from Otago University I spent three weeks in China with the chief executive and chairman of a NZ meat processing and export company. Our aim was to introduce the company leaders to relevant Chinese companies, together with exposure to Chinese foodculture so the company would better understand the market opportunities. At that time very little NZ meat was being exported to China. The company’s key markets were in Europe, including Britain, and the concern was that it needed to diversify. The chairman had a five-year goal that China might be able to take 15% of the company’s product at prices equivalent to European prices. It wasn’t so much about wanting to make super-profits but to reduce risk associated with high dependence on those European markets. We travelled widely around China in those three weeks, from south to north and east to west. At
IT’S GROWN: Shenzen, a fishing village of 6000 people when Keith Woodford first visited, is now home to 50 million people.
the end of the visit the company was convinced there was potential to build markets in China. However, any notion China would become the dominant market, with risk thereby moved from Europe to China, was not even vaguely on the horizon. It had been 15 years earlier in 1993 while living in Australia that I first led a meat-industry market research trip to China, accompanied by five undergraduate students from Queensland University. I was a little nervous about letting these students loose but it was remarkable how well they scrubbed up when given some responsibility. We did have some excitement early on. We split into two groups while still in Hong Kong and travelled separately to Shenzhen on the Pearl Delta mainland. We planned to meet again that night after completing some interviews. In the meantime, a typhoon struck and Shenzhen was under water. Much of the city was flooded. Eventually, after declining the offer of an entrepreneurial local person who offered a ride on an upturned wardrobe, which for a fee he would push through the waist-deep waters, we managed to hire a boat with an outboard motor to get to our hotel. It was with relief we eventually found the rest of our group as these were the days when mobile phones were a rarity. Reporting
back to my university that I had lost three of my students somewhere in China would not have been easy. When I first travelled through the Pearl Delta in 1973 I recall Shenzhen as a sleepy fishing village of around 6000 people. By 1993 Shenzhen was a city of several million people but the Pearl Delta still had broad expanses of rice fields. By 2008 the Pearl Delta was essentially an urban conurbation with about 50 million people. On that 1993 trip with my Queensland students we spent considerable shoe leather visiting wet-markets at dawn then meeting up with companies later in the day. The key message we brought back to the Australian company sponsoring the research was that we could immediately obtain markets for many thousands of tonnes of offal meats as long as the company could manage the logistics of market entry. However, they should for the foreseeable future forget about the so-called prime cuts. The markets were not ready for that. As for the offals, the Australian meat company responded back to us that the quantities of offal we were talking about were more than the total Australian supply. I tell those stories here to depict something of the dynamic nature and excitement of Chinese markets. Things change so quickly.
As one Kiwi resident in Shanghai said to me more recently “I will come back to NZ when I have my first boring day here in China”. As for that NZ meat company with its 2008 goal of 15% of product going to China within five years, that was easily surpassed. Then, in 2014 or thereabouts, the board of the company became sufficiently worried at the remarkable success of its Chinese endeavours it put a restriction on the chief executive that, on the grounds of risk management, only 35% of product could be exported to China. Soon thereafter the chief executive had to go back to the board and tell it the Chinese markets were sufficiently profitable relative to other markets, especially for mutton forequarters, that the company could not be competitive in farmlevel procurement under that constraint. And so the limit was removed. To reinforce that message, we are now in a situation some 12 years since that NZ company made its first exploratory visit to China that China is not only NZ’s dominant market for sheep products but also for dairy, beef, seafood and timber. Those exports continue to increase each year. The latest concern, captured recently in commentary to the Wellington Chamber of Commerce on March 11 by Finance Minister Grant Robertson is that some industries have probably become too reliant on China. My rejoinder can be summarised in two sentences. First that was where new consumers with increased spending power were emerging and they wanted animal-based foods we could supply. Second, developing alternative markets will not be easy.
Your View Keith Woodford was Professor of farm management and agribusiness at Lincoln University for 15 years to 2015. He is now principal consultant at AgriFood Systems. He can be contacted at kbwoodford@gmail.com
Process has potential for Kiwi logs Denis Hocking LAST week’s article, We’re buying our own wood back, needed to emphasise the exciting new market that is emerging for New Zealand radiata pine with Accoya wood. This wood modification process involves acetylation of softwoods turning them into remarkably durable and stable alternatives to threatened tropical hardwoods. The good news is that acetylation is a very low-impact, non-threatening process and the even better news is our radiata pine is the best wood in the world for this treatment. But the Accoya modifiers are dancing on the top shelf and
they want good quality, radiata clearwood from large, pruned logs for their process. Accsys, the owner of the Accoya process, is already a major buyer of NZ clearwood and wants more. Note that pruned log prices have held steady through all the hiccups of the last 12 months. Last week’s article gave the impression this acetylation technology was developed by Scion. Scion or its precursor Forest Research did some acetylation work, as have 1001 other laboratories over the last 100 years, before Accsys bought this intellectual property from Forest Research along with IP from other labs.
This was incorporated into the development work already under way in The Netherlands. Incidentally, The Netherlands remains the largest per-capita consumer of Accoya wood. Several points should be noted regarding Accoya wood. It is already being sold in 60 countries, is growing rapidly and is only just planning its first United States plant. The treatment process is nonthreatening with no heavy metals or persistent toxins and acetic acid, ie concentrated vinegar, is the main waste stream. With the right infrastructure this acetic acid can be recycled into the active ingredient, acetic-anhydride. The process is approved
by several non-government sustainability groups. Accsys definitely wants our wood while there must be doubts about the longer term Chinese appetite for low-quality logs. Sheep farmers should think back to the 80s and 90s when we discovered the world didn’t want masses of low-grade mutton but would pay well for quality. Too many of our forests are managed for low-grade quantity ahead of quality. Our pruned resource is shrinking with most corporates having largely abandoned pruning on the basis of advice from shortsighted accountants in a longterm industry. No other country has adopted pruning to the extent
that NZ has and we have both a head start and competitive advantages for pruning and clearwood. So, in short, I think the message we need to get across regarding Accoya is that we have a very promising, even exciting, market for a product we are already very good at producing. We just need to bring those old skills of planting, pruning and thinning back to centre stage.
MORE:
For more information on Accoya wood go to accoya.com Another useful reference is Wood Modification for Improved Performance by Robert Franich, NZ Jnl of Forestry, Aug 2019
Tolaga Bay 545 Mangaheia Road
World class Mangaheia Station is on the market Mangaheia Station is on the market for the first time in decades. The 2,720ha property offers a significant level of scale with a combination of excellent management and a favorable balance of contour and climate resulting in a prime breeding and fattening unit with equally strong wintering options. A focus on annual cropping and resowing of hundreds of hectares of cultivated land has meant substantial areas of new pasture have been replanted annually as high yielding perennials for finishing, enhanced by various crops sown for cattle, and chicory for lambs. The station comprises of circa 22,600SU including capital stock of 800 Angus cows and a ewe flock reporting 174% lambing on ewes wintered. Years of careful management has delivered a high level of investment with farm infrastructure features including a 11 stand woolshed and concreted sheep/cattle yards.
bayleys.co.nz/2751675
bayleys.co.nz
Tender (will not be sold prior) Closing 4pm, Thu 18 Jun 2020 10 Reads Quay, Gisborne Simon Bousfield 027 665 8778 simon.bousfield@bayleys.co.nz Stephen Thomson 027 450 6531 stephen.thomson@bayleys.co.nz James Bolton-Riley 027 739 1011 MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Boundary lines are indicative only
Wairoa 821 Tiniroto Road and 14 Kent Road, Ruakituri
57ha freehold, maize crops, machinery and leases
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An A'maize'ing opportunity located 16km north of Wairoa, Northern Hawke's Bay, is a fantastic cropping business opportunity. Bound by the Wairoa river the picturesque home title of 37ha includes approximately 15ha of maize with the four bedroom villa and numerous implement sheds with a large lockable workshop/three bay high stud shed. The 20ha Kent Road title includes approximately 11.5ha of maize, a three bedroom weatherboard home with the balance easy hill. The going concern sale includes a large list of tractors, cultivation and harvesting equipment as well as over 80ha of maize crop soon to be harvested and the opportunity to enter into a longer term lease of approximately 45ha of cropping land in Wairoa. An opportunity to start your own cropping business or for farmers wanting to extend into a mixed/cropping business with the ability to finish livestock.
Tender (unless sold prior) Closing 4pm, Wed 13 May 2020 17 Napier Road, Havelock North Tony Rasmussen 027 429 2253 tony.rasmussen@bayleys.co.nz Stephen Thomson 027 450 6531 stephen.thomson@bayleys.co.nz
bayleys.co.nz/2852103
EASTERN REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008 MACPHERSON MORICE LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
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bayleys.co.nz
Property Brokers Ltd Licensed REAA 2008
Motivated vendor prepared to meet the market Substantial Dairy Farming Portfolio An outstanding opportunity for an astute investor seeking a competitive yield to acquire a large-scale self-contained dairy portfolio located in South Waikato, available as one lot or as individual units. • Total area 2,733 hectares including 1,937 ha dairy platform, 550 ha support block and 98 ha in trees • Four dairy units milking 5,000 cows with threeyear average production 1.578 million kgs of milksolids • Support block carries all replacement heifers plus harvests approx 150 hectares of grass silage • Excellent accommodation provided by 15 modern brick homes
• Turn-key operation, available as a going concern including livestock, plant and machinery Capitalise on the efficiencies created by significant scale and the strong fundamentals of global demand for dairy products by investing at an opportune time in the property cycle. Motivated vendors prepared to meet the market with a portfolio of dairy properties that can be sold both individually or collectively as a going concern with the potential to generate very attractive returns.
These properties, adjacent to the Waikato river and State Highway 32 are in close proximity to Tokoroa and Whakamaru and offered for sale with excellent, near-new infrastructure.
For more info about these properties please contact Property Brokers sales consultants: Brian Peacocke 021 373 113 Paul O’Sullivan 027 496 4417 Dave Peacocke 0274 732 382 Doug Wakelin 027 321 1343 pb.co.nz/atarangi
Dairy Support
TENDER TOKOROA Wainui Road • • • • • • • • •
WEB ID TWR02686
550.22 hectares (subject to title) Taupo sandy loam soils Easy to medium rolling contour with some sidlings Approx. 483 ha in pasture with 150 ha mowable Grazes all replacement heifers through for two years Near new 250 head capacity steel cattle yards 4-bay implement shed, covered 180t fertiliser bin Modern 4 bedroom brick home Inspection by appointment
TENDER Thursday, 21st May, 2020 or other date to be advised 138 Arawata Street, Te Awamutu
Atiamuri
TENDER WHAKAMARU 2603 Whakamaru Road
WEB ID TWR02688
• 612.7191 hectares • Atiamuri sandy loam soils • Flat to easy to undulating contour with some sidlings • 539 hectare milking platform; 1,450 cows • 3-year average production 431,896 kgs milksolids • First-class 60 bail rotary dairy with in-shed meal feeding • 4 modern low maintenance dwellings • Inspection by appointment
TENDER Thursday, 21st May, 2020 or other date to be advised 138 Arawata Street, Te Awamutu
pb.co.nz/atarangi
TOKOROA Telephone 0800 367 5263
Price expectation based on yield Tokoroa Downs
TENDER TOKOROA 726 State Highway 32
WEB ID TWR02689
• 593.1596 hectares • A mix of Tirau silty loam and Taupo sandy loam soils • Flat to easy to undulating contour with some sidlings • 548 hectare milking platform; 1,350 cows • 3-year average production 444,645 kgs milksolids • First-class 60 bail rotary dairy with in-shed meal feeding • 23 hectares in forestry deriving lease income • 4 modern low maintenance dwellings • Inspection by appointment TENDER Thursday, 21st May, 2020 or other date to be advised 138 Arawata Street, Te Awamutu
Twin Lakes
TENDER WHAKAMARU 1957 Whakamaru Road
WEB ID TWR02690
• 482.8841 hectares • Atiamuri sandy loam soils • Flat to easy to undulating contour with some sidlings • 367 hectare milking platform; 950 cows • 3-year average production 305,532 kgs milksolids • 60 hectares in forestry deriving lease income • 18 ha ex-forestry suitable for pastoral development • First-class 60 bail rotary dairy with in-shed meal feeding • 3 modern low maintenance dwellings • Inspection by appointment TENDER Thursday, 21st May, 2020 or other date to be advised 138 Arawata Street, Te Awamutu
Whakamaru
TENDER WHAKAMARU 2362 Whakamaru Road
WEB ID TWR02691
• 494.0799 hectares • Atiamuri sandy loam soils • Flat to easy to undulating contour with some sidlings • 478 hectare milking platform; 1,250 cows • 3-year average production 396,342 kgs milksolids • First-class 60 bail rotary dairy with in-shed meal feeding • 3 modern low maintenance dwellings • Inspection by appointment
TENDER Thursday, 21st May, 2020 or other date to be advised 138 Arawata Street, Te Awamutu
28
farmersweekly.co.nz/realestate 0800 85 25 80
Real Estate
FARMERS WEEKLY – April 27, 2020
RURAL | LIFESTYLE | RESIDENTIAL
CHEVIOT, CANTERBURY 701 Sisters Road Water / Pivots / Nutrients / Pastures • • • • • •
430ha, versatile contour, will suit most types of farming (Nutrient Budget available) Low cost irrigation – 96ha pivot, 16ha spray, irrigation consent 130l/sec Modern pastures/crop regime/high fertiliser inputs/soil tests available Outstanding farm infrastructure, water storage, fencing and lanes Strong cattle history including dairy grazing / sheep breeding and finishing / cattle finishing Four-bedroom home and two-bedroom cottage
DEADLINE PRIVATE TREATY
Plus GST (if any) (Unless Sold Prior) Closes 2.00pm, Thursday 28 May
Peter Crean M 027 434 4002 B 03 341 4301 E pcrean@pggwrightson.co.nz
pggwre.co.nz/CHR31511
GREEN VALLEY, OTAGO 189 Pringles Road Cattle Breeding and Grazing Unit 611 hectares (subject to survey) Ideal beef breeding and grazing property. Cattle yards hold 500 head. Easy rolling to some steeper faces with cultivated tops and scrub gullies. Suitable grazing or forestry property in a handy location to sale yards and port. Autumn 2020 - 100 18mth heifers, 260 MA in-calf cows (175 1st calvers), 250 weaner calves, 9 breeding bulls
TENDER Plus GST (if any) (Unless Sold By Private Treaty) Closes 12.00pm, Monday 1 June VIEW By Appointment Only
Craig Bates M 027 489 4361 E craig.bates@pggwrightson.co.nz Paul Thomson M 027 435 3936 E pthomson@pggwrightson.co.nz
pggwre.co.nz/DUN32219 Helping grow the country
PGG Wrightson Real Estate Limited, licensed under REAA 2008
Your destination For Rural real Estate
Market your property to an audience that counts
Add another touchpoint to your campaign on the website built for farmers. Align your brand with content farmers read: • Geo and agri sector targeting options available • Post campaign analysis of your adverts performance • Advertise on our Real Estate page alongside relevant editorial content • Enrich your print ad - Click through to your property videos or websites from the virtual edition.
Get in touch with your agent today
farmersweekly.co.nz/realestate
FO SALR E
For a delivered price call .... 0800 436 566
NOTICEBOARD ADVERTISING
High Country Cabins and Construction www.highcountrycabinsandconstruction.com • Farm accommodation • Horse stables • Small buildings Available in kitset & fully build packages. Available NZ wide. Further information phone 027 963 5390 Highcountrycabins66@gmail.com
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Do you have something to sell?
WANTED FORESTRY/ FARM WOODLOTS (All volumes – big or small)
For more details please phone James Mancer on 021 308 760 or email your applications to james.mancer@taratahi.ac.nz
We purchase standing trees, land and trees or harvest and market on your behalf. All paper work is done for you around health and safety, resource consent application and management.
Call Debbie
0800 85 25 80
farmersweeklyjobs.co.nz
0101788
Hopkins Farming Group - Tahuna Farm
JOBS BOARD
Dairy Support Manager Required
63.57x120 FW Jobs Board
2 YEAR WARRANTY. NZ ASSEMBLED. ELECTRIC START & QUALITY YOU CAN RELY ON 13.5HP. Briggs & Stratton Motor. Electric start. 1.2m cut
HFG consists of 10 dairy farms and 3 support farms in the greater Manawatu. We have a Farm Manager position available at Tahuna, near Bulls. Tahuna is 366ha with 230ha irrigated via 4 pivot irrigators. Excellent cattle yards with integrated technology. Support staff are provided in the peak months.
Assistant Manager Contract Milker Dairy Support Manager Farm Manager
Heavy duty long lasting
General Farm Assistant Shepherd / General Stud Stock Manager
12Hp Diesel. Electric Start
11.5HP Briggs & Stratton Motor. Industrial. Electric start.
GST $4400 INCLUSIVE
GST $4200 INCLUSIVE
50 TON WOOD SPLITTER
GST $4200 INCLUSIVE
To find out more visit www.moamaster.co.nz
Phone 027 367 6247 • Email: info@moamaster.co.nz
50 TON WOOD SPLITTER
FOR LEASE
12HP, Diesel, Electric Start
Heavy duty construction for serious wood splitting. Towable.
A tidy 3-bedroom house is available with schooling nearby in Bulls. 20 minutes to Feilding, 30 minutes to Palmerston North.
*FREE upload to Farmers Weekly jobs: farmersweeklyjobs.co.nz
TOWABLE TOPPING MOWER
TOWABLE FLAIL MOWER
Ph 021 047 9299
The Manager will be responsible for: • Executing the farm plan • Record keeping and reporting weekly • Animal welfare and management • Pasture management and feed budgets • Intensive feed management • Irrigator management • Health & Safety • Planning and communication
Fencer / General
GUARANTEED PAYMENTS Call or email Aaron West 027 562 3832 aaron@westtreenz.co.nz for a no obligation appraisal
classifieds@globalhq.co.nz
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For more details please phone James Mancer on 021 308 760 or email your applications to james.mancer@taratahi.ac.nz
Successful applicants will have the following attributes to be able to hit the ground running: • No less than 12 month dairy farming experience • Good work ethic • Positive and ability to work as part of a team • General farm duties from milking, stock work, fencing, weed control etc.
NZ’s finest BioGro certified Mg fertiliser
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Successful applicants will have the following attributes to be able to hit the ground running: • No less than 3 years dairy farming experience • Provide effective leadership to the farm as 2 IC and ability to work as part of a team and manage the farm in the Farm Manager’s absence • Experience in the operation, maintenance and use of tractors, machinery and equipment • Milk harvesting and quality management • Calving and calf rearing • Knowledge and good practice of health and safety
Taratahi Agricultural Training Centre’s Masterton Dairy Unit runs 550 cows on 224ha and is supported by good facilities, including a 46 aside HB shed.
0101843 Cabins High Country & Construction 63.57x50
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Taratahi Agricultural Training Centre’s Masterton Dairy Unit runs 550 cows on 224ha and is supported by good facilities, including a 46 aside HB shed.
Apply with your CV & cover letter to: finance@hopkinsfarming.co.nz Applications close Sunday 10th May 2020
481 ARAPOHUE ROAD, DARGAVILLE.
GST Special Price $4200 INCLUSIVE Very limited stock
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All applicants must have NZ residency or valid work visa.
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Competitive remuneration available.
*conditions apply
Contact Debbie Brown 06 323 0765 or email classifieds@globalhq.co.nz
DOLOMITE
General Farm Assistant Fixed Term
Assistant Manager / 2 IC Fixed Term
Noticeboard
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Agri Job Board
To find out more visit
Dairy Support Farm Manager Kia hiwa rā! Ngāi Tahu Farming’s dairy support operation covers 1,300 irrigated hectares at Te Whenua Hou (Eyrewell), half an hour north of Christchurch. Ngāi Tahu Farming currently consists of eight Dairy farms milking 7,900 cows.
www.moamaster.co.nz Phone 027 367 6247 Email: info@moamaster.co.nz
• 303ha dairy farm • 50 bail rotary shed • 950m² feedpad • 130 paddocks approx • 3 year term • Commencement: 1/6/2020 Open for inspection by appointment only on 30/04/2020 All enquires to ian@targetfocus.co.nz
We have an opportunity for a Dairy Support Farm Manager to join our whānau. The focus of this role will be to oversee the delivery of the growth, health and mating performance targets for the 4,000 replacement heifers and 450 MA bulls. What we can offer the successful applicant: • More time focused on stock, pasture and people through quality infrastructure • Great opportunities for learning and career progression • Access and involvement with industry leading research • Collaboration across our wider Ngāi Tahu Farming beef finishing business To apply, please visit mahi.ngaitahu.iwi.nz and submit your application online. For confidential enquiries, please contact Amanda Davison, Senior HR Advisor on amanda.davison@ngaitahu.iwi.nz
STANDARD FEEDER (C6 Pinned) • • • •
1 x 6 foot bale 2m diameter 15 feed positions 15 - 30 animals
100% New Zealand Made Quality Stockfeeders
0 $ 85 +GST
OVAL FEEDER (S2 Pinned) • • • • •
3 x 4 foot bales 2 x 6 foot bales 24 feed positions 24 - 48 animals 4m long
$ 120+G0 ST
0800 104 404 | www.stockfeeders.co.nz
New Zealand’s proven stock feeder for 24 years | 100% New Zealand Tensile Steel
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Nau mai, haere mai, tauti mai!
Noticeboard
FLY OR LICE problem? Electrodip – the magic eye sheepjetter since 1989 with unique self adjusting sides. Incredible chemical and time savings with proven effectiveness. Phone 07 573 8512 w w w. e l e c t r o d i p . c o m ANIMAL AND HUMAN healer, now doing absent healing. For more information phone Ron Wilson 027 435 3089. CRAIGCO SHEEP JETTERS. Sensor Jet. Deal to fly and Lice now. Guaranteed performance. Unbeatable pricing. Phone 06 835 6863. www.craigcojetters.com
ATTENTION FARMERS FAST GRASS www.gibb-gro.co.nz GROWTH PROMOTANT Only $6.00 per hectare + GST delivered Brian Mace 0274 389 822 brianmace@xtra.co.nz
GOATS WANTED
LIVESTOCK FOR SALE
NAKI GOATS. Trucking goats to the works every week throughout the NI. Phone Michael and Clarice. 027 643 0403.
WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556. RED DEVON BULLS; Also in-calf cows + heifers, BVD vaccinated + weaners. Hill country stud. TB-C10 - 06 376 3966
BRIDLES STATION TYPES. Heavy NZ leather. Hand sown. Breast plate. Leg straps. Hobbles. Crupper, etc. Phone Otairi Station. 06 322 8433.
CONTRACTORS GORSE SPRAYING SCRUB CUTTING. 30 years experience. Blowers, gun and hose. No job too big. Camp out teams. Travel anywhere if job big enough. Phone Dave 06 375 8032.
DOGS FOR SALE HUNTAWAY BITCH, 6 months old, well bred, ready to go. $1800. Phone 021 557 119. Waikato. SELLING AND BUYING since 2012. Deliver. Trial. www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.
DOGS WANTED 12 MONTHS TO 5½-yearold Heading dogs and Huntaways wanted. Phone 022 698 8195.
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. BOOK AN AD. For only $2.10 + gst per word you can book a word only ad in Farmers Weekly Classifieds section. Phone Debbie Brown on 0800 85 25 80 to book in or email classifieds@globalhq.co.nz
HORTICULTURE NZ KELP. FRESH, wild ocean harvested giant kelp. The world’s richest source of natural iodine. Dried and milled for use in agriculture and horticulture. Growth promotant / stock health food. As seen on Country Calendar. Orders to: 03 322 6115 or info@nzkelp.co.nz
SALE TALK
PERSONAL Rural Lady Companionship / Friendship A down to earth country lady who loves animals, bush walks, swimming, cooking and a good conversation. She is looking for companionship built on mutual respect, trust and honesty. To meet, please call 0800 446 332 Quote code 49
Here at Farmers Weekly we get some pretty funny contributions to our Sale Talk joke from you avid readers, and we’re keen to hear more!
A newly wed couple was gifted a set of bedside drawers, and agreed they would never look in each other’s top drawer. Many years later the wife was away for the day, and her drawer was slightly open. The husband couldn’t resist and looked inside. He was confused when he found there to be three eggs and a bag of coins. The next day he couldn’t help himself, so he asked his wife, “I am really sorry, I looked in your drawer. Why do you have three eggs and some money in there?”
If you’ve got a joke you want to share with the Farming community (it must be something you’d share with your grandmother...) then email us at: saletalk@globalhq.co.nz with Sale Talk in the subject line and we’ll print it and
The wife replied, “Well, every time I have an infidelity, I put an egg in the drawer”. Thinking three eggs wasn’t so bad, as the husband had had a slip up as well, he asked “What is the money for then?”
credit it to you.
“Well, every time I got a dozen, I sold the eggs off!”
Conditions apply
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ANIMAL HANDLING
Livestock Noticeboard
www.countrycompanionship.co.nz
FOR SALE
ANNUAL FEMALE PRODUCTION SALE • Lines of quality, in-calf Hereford cows • Farmed on Hunterville hill-country as part of the Ardo Hereford stud • All mated to Ardo stud Hereford bulls from December 1 to January 25
NOTICEBOARD
• 40 unmated R-2-year Hereford heifers also available
REACH EVERY FARMER IN NZ FROM MONDAY
• Closed herd, C10, vaccinated annually for BVD, 7-in-1 and Rotovirus William Morrison – 027 640 1166 Maurice Stewart, PGGW – 027 246 9255
Advertise in the Farmers Weekly
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30
www.morrisonfarming.co.nz
$2.10 + GST per word - Please print clearly Name: Phone: Address: Email: Heading: Advert to read:
farmers weekly hits 78,039 Rural letterboxes Farmers choose us first for news, opinion, analysis, market updates and even their own livestock advertising.
Return this form either by fax to 06 323 7101 attention Debbie Brown Post to Farmers Weekly Classifieds, PO Box 529, Feilding 4740 - by 12pm Wednesday or Freephone 0800 85 25 80
farmersweekly.co.nz/advertising
2537FW BULL SALES
For more contact: Hannah Gudsell 06 323 0761 or 027 602 4925 livestock@globalhq.co.nz
FARMERS WEEKLY – April 27, 2020
Livestock Noticeboard
Looking for a Beef Shorthorn?
RANUI BULL SALE JOIN US FOR OUR
40TH SALE
Check them out
ON THURSDAY 4TH JUNE* • •
The Ranui Angus herd has been established for 70 years
*The Bull Sale will be held online if the Covid-19 lockdown continues •
livestock@globalhq.co.nz – 0800 85 25 80
Raupuha
Mahoenui Bulls - Private Sales Incalf Heifer Sale Bidr, 29th May 07 877 8977 - Russell
Sale e-books available now
Contact Lindsay or Maria Johnstone today 027 445 3211 or 027 610 5348
Longview
Kerikeri Bull and Incalf Heifer Sale 22nd May, 11.30 09 401 9633 - Shane & Dot
Glenrossie
Whangarei Heads Sale June 28th, 1pm 09 434 0987 - David 09 434 0718 -Will
Lochburn
Taupiri Private Sales 07 824 6751 - Kelvin
Aubrey
Waitomo Private Sale 07 873 6968 - Ron
Carnegie
Waiuku Private Sales 021 031 3091
Browns
Waitara Private Sales 06 754 6699 - Roger
Mill Valley
Whangamomona Private Sales 06 762 3520 - Aaron
Roscliff
Te Awamutu Private Sales 027 211 1112 - Ross
Mangaotuku
Stratford Private Sales 06 765 7269 - Jack
Marton Private Sales 06 327 8185 - Alan
MYLIVESTOCK PLATFORM WELCOMES ONLINE, REAL TIME BIDDING AT AUCTIONS!
Colvend
Ongarue Sale 26th May, 3.30 07 894 6030 - Alan
Hinewaka Sale
Takaka Private Sales 021 556 806 - Bill
Masterton Sale June 3rd, 3pm 06 372 7615 - David
In a New Zealand first, farmers will be able to actively
Waikari Private Sales 027 233 3678 - Chris
Glenbrook Station
participate (including bidding) in livestock auctions streamed live
Carriganes Cattle
Omarama Private Sales 021 285 9303 - Simon
and direct from saleyards and a number of on-farm auctions via mylivestock.co.nz.
Westwood
The online live capability will support a range of real livestock
Tuatapere Private Sales 03 226 6713 - Anita
auctions run either in saleyards or on farm (Clearing sales and Bull sales etc). This is a hybrid of the traditional saleyard format and
Glenfern
supports a return to confident trading.
Tokanui Private Sales 06 327 8185 - Alan LK0102109©
Our new upgraded platform will support and enhance our agents’
Waipukurau Sale to be announced 06 858 5369 - Jim 06 855 4737 - Nick
Dunblane
Kumara Private Sales 027 379 8167 - Chris
farmers, for farmers and adding value to your business.
Keep up to date at mylivestock.co.nz for all events and details.
Hiwiroa Sale
Woodcall
Turiwhate
Here at NZ Farmers Livestock we are committed to working with
challenging time.
Katikati Bull and Incalf Heifer Sale Private Sales 07 552 0815 - Ken 021 520 244 - Craig Morrinsville Private Sales 07 889 5965 - Hamish
Te Kohanui
ability to deliver superior service to our farmer clients during a
Orena
Bullock Creek
ranuiangus.co.nz
31
Dunsandel Private Sales 022 470 2447 - Sarah
Rough Ridge
Ranfurly Sale May 15th, 11am 03 444 9277 - Malcolm
Maerewhenua
Oamaru Private Sales 03 431 2871 - Norman
Using a n bull in Shorthor ing ss-breed your cro l increase wil program ne up to li m o bott 20%
Glendhu
Heriot Sale May 19th, 11am 027 497 8104 - Fraser
Renowned for great marbling producing top quality meat Keep an eye out on our facebook and website for updates
w w w.short horn. co. nz
NEED TO MOOOVE SOME STOCK?
Advertise your stock sales in Farmers Weekly LIVESTOCK ADVERTISING
PHONE HANNAH GUDSELL 0800 85 25 80
Phone HANNAH 0800 85 25 80 or email livestock@globalhq.co.nz
32
livestock@globalhq.co.nz – 0800 85 25 80
Livestock Noticeboard
FARMERS WEEKLY – April 27, 2020
Trade livestock like never before Hewitt_BB_2300x750@20%.indd 1
WEEKLY AUCTIONS Wednesday night – North Island Thursday night – South Island
1/11/19 11:44 AM
Winners of the Steak of Origin 2018 1447 Hereheretau Rd, RD 6, WAIROA 4196 www.kerrahsimmentals.co.nz
PROFIT-A-BULL EXCELLENCE
FEATURE AUCTIONS Wednesday, 29 April 2020 at 1.30pm PGG Wrightson Taranaki Sale
Jon Knauf
80
SALE BY PRIVATE TREATY
PREDOM INANTLY POLL PERFORMED AN BULLS CE
by Tuesday, 19th May 2020 Please contact asap for requirements
Friday, 1 March 2020 at 1pm PGG Wrightson Feilding Sale
NZ’s Virtual Saleyard
For further information go to bidr.co.nz or contact the team on 0800 TO BIDR
“Where Performance Meats Phenotype” CONTACT: for catalogue
Jon Knauf 06 838 6793 E: jsknauf@gisborne.net.nz
Phil Transom 0274 420 060 PGG Wrightson
CLEARING SALE On farm supported by live online bidding
Ross Mitchell 0274 048 965 Fergus Rural
HIGH INDEXED CROSSBRED GENETICS On Account of: JUST ONCE MORE LIMITED Shaun & Kelly Bicknell 169 Horomanga Road, RD 1, Murupara. DN 22290 Tuesday 12th May 2020 - 12 Noon
LIVESTOCK ADVERTISING Advertise your stock sales in Farmers Weekly
farmersweekly.co.nz
Sale to be held on farm and live online at mylivestock.co.nz
11th Annual Bull Sale
LIVESTOCK ADVERTISING
22 RISING 2 YEAR OLD BULLS
10am Tuesday 26 May 2020 th
Due to Covid 19 restrictions sale will be held online via www.bidr.co.nz (registrations necessary)
View by appointment only - Beaumont Township, 1910 State Highway 8 Contact: Justin Wallis (Stud Master) 027 225 8330 or Clayton Peters 027 222 4421 PMS – PMS 445 C
PMS – n/a
RGB – 60, 76, 64
RGB – 255, 255, 255
CMYK – 0, 80, 95, 0
CMYK – 50, 28, 24, 65
CMYK – 0, 0, 0, 0
HTML – f15a29
HTML – 3c4c54
1910 State Highway 8, Beaumont, RD1 Lawrence 9591, Otago Phone 03 446 6030, 027 225 8330 or 027 222 4421 Carrfields LIVESTOCK
PGG WRIGHTSON LIVESTOCK
Roger Keach 027 417 8641 Callum Dunnett 027 587 0131 Callum McDonald 027 433 6443 Chris Swale 027 442 5032 Donald Baines 027 328 8781 Brent Taylor 027 333 2421 Paul Pearce 027 478 5761 Andrew Holt (South Island Livestock Manager) 027 496 3311
Storth Oaks Angus “Genetics still available” 2020 on farm & bidr simultaniously streamed Annual Sale NOTE: We hope to have a normal on-farm auction which will be run simultaniously on Bidr for those that cant/wont travel but if we are still in stage 4 it would be all electronic. Tim & Kelly Brittain 524 Paewhenua Rd,RD 2, Otorohanga. 3972 Phone: 07 873 2816 Mob: 02756 935 387 Email: tim@storthoaks.co.nz www.storthoaks.co.nz facebook.com/storthoaksangus
storthoaks
twitter@storthoaksangus
Call HANNAH 0800 85 25 80 livestock@globalhq.co.nz LK0102107©
PETERS ANGUS
PMS – PMS 173 C RGB – 241, 90, 41
HAVE A SALE COMING UP?
PRODUCTION: The Herd consistently produces 400kg ms/cow being milked OAD all season on a system 2 - 3. MATING: DTC 12/7/20 for 3 ½ weeks to LIC Frs, Crossbred & Jsy. Tailed with Hfd Bull. 65% Incalf to AI. Expected calf BW 217. R2 Yr Heifers DTC 12/7/20 with 60% incalf to AI Jsy. Expected calf BW 243. Tailed with Crossbred Recorded Bulls. ANIMAL HEALTH: TB C10, Lepto Vaccinated, M. Bovis undetected. Herd has been blanket treated with Cepravin. AUCTIONEERS NOTE: NZ Farmers Livestock are privileged to offer this very well bred G3 Profiled Herd and young stock for auction. A2A2 results Herd 48%, R2yr 50%, R1yr 57%. Current av weights R2yr 420kg, R1yr 215kg. The Herd will come forward in good condition and offers buyers a good selection of crossbred genetics. PAYMENT & DELIVERY: Payment 14 days. Delivery within 3 days of sale unless prior arrangements. View Listing on mylivestock.co.nz WAI 81017 Further enquiries: Agent: Michael Conwell 027 226 1611 Vendor: Shaun Bicknell 027 221 1977
GOING GOING GONE! Have you got a sale coming up? Advertise in Farmers Weekly
To advertise Phone HANNAH GUDSELL 0800 85 25 80 or email livestock@globalhq.co.nz
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in conjunction with
After 40 years of LIC Breeding the Bicknell Family are selling their entire herd and young stock. Consisting of 240 Cows BW 150 PW 210 RA 100% (BW’s up to 268, PW’s up to 550) 57 x R2 Yr Heifers BW 194 PW 207 70 x R1 Yr Heifers BW 209 PW 225 Cows 1, 2, 110, 210 are carrying contract matings. 210 & 1 being Dam & Daughter R2 Yr Heifers 18-221, 298 are carrying contract matings R1 Yr Heifer 19-104 (BW 290 PW 314) to be contract mated.
Livestock Noticeboard
FARMERS WEEKLY – April 27, 2020
33
T D Findlay Livestock Cambridge
STOCK FOR SALE R2YR FRSN HERE STEERS 350-500kg R2YR ANG ANGX STEERS 340-400kg
50 Jersey carry-over cows
R2YR ANG & Ex X HEIFERS 380kg
BW158 PW165 In-calf to Jersey Bull 2017 & 2015 Born Due 15/07/20
BULLS 300-440kg
STEER, HEIFER & BULL CALVES
1500 PERE STH Down EWES RW Sth D 25/03
Martin & Mary Taylor 06 8555322 Emma & Andy Martin 06 8555348 E: taylors@glenbraestud.co.nz
200 Friesian/Friesian X plus a few Jersey cows
See our website for more stock
www.dyerlivestock.co.nz
BW91 PW124 Cows that have been leased out, in very good order and figures available 10/07/20 calving AI Urgent Sale $1250
www.dyerlivestock.co.nz
Ross Dyer 0274 333 381 A Financing Solution For Your Farm E info@rdlfinance.co.nz
Lot 5
Lot 16
View Online: www.glenbraestud.co.nz
2020 AVERAGE OF GLENBRAE SALE BULLS ‘VS’ BREED AVERAGE
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2YR FRSN
livestock@globalhq.co.nz – 0800 85 25 80
Dairy Contact David 027 493 Key: 9061
The Bull Sale will be held online if the Covid-19 lockdown Continues.
Glenbrae Annual Bull Sale 1019 Mangaorapa Rd, Porangahau. Thursday 2pm. 28th May 2020 Cattle
Sheep
Other
DAIRIES FOR SALE
Extremely Good Value Deals 56 Xbred A2A2 Cows BW90 PW81 RA93% DTC 18/7 all i/c to LIC, System 2. $1400 Val Ditchfield 027 573 7480 Ref: DH1797
NORTH ISLAND HERDS & IN-CALF HEIFERS FOR SALE
185 Fsn/FsnX Cows BW83 PW110 RA73% DTC 14/7 to LIC, 400ms, H Tested System 3, HB shed, owner operator. $1400 Jason Duncan 021 170 5354 Ref: DR1753 30 C/O Cows BW136 PW201 RA100% All in-calf to Charolais, young. $1300 Brent Espin 027 551 3660 Ref: DR1806
PGG Wrightson Dairy representatives are specialists at marketing and selling dairy herds. Benefit from the nationwide team that is dedicated to matching herds with the right buyers and achieving an optimal outcome for your business.
75 Xbred C/O Cows BW157 PW206 RA100% DTC 20/7 to AB, Owner bred, G3 profiled Closed herd, high quality. $1500 Brent Espin 027 551 3660 Ref: DR1771 32 R1yr Xbred Hfrs BW136 PW157 Capital line from very good herd. $750 Andrew Gordon 027 487 2044 Ref: DR1807
34 Xbred Hfrs BW189 PW201 RA89% Top Capital line, long LIC history. $1450 Paul Collins 027 304 8994 Ref: DR1805
Visit our Website for the best selection available
www.carrfieldslivestock.co.nz
LIVESTOCK ADVERTISING
Are you looking in the right direction?
BW 74
PW 91
$1,550
+GST
•
RA 100% Long established, hardworking herd farmed in a difficult climate. Vendor exiting industry and farm is sold. Very low cell count. Herd tested and milked on System 2. All Fully Recorded. Tim Pickering– 027 446 9963 Agonline ref: 6157
NATIONAL TEAM. LOCAL KNOWLEDGE.
Freephone 0800 10 22 76 | www.pggwrightson.co.nz LK0101439©
105 Jersey Herd BW107 PW121 RA88% DTC 22/7 to LIC/CRV, low inputs. $1200 Jack Kiernan 027 823 2373 Ref: DH1799
227 Capital Stock Friesian & Friesian X Herd
Helping grow the country
COMPLETE DISPERSAL SALE VIA bidr ONLINE AUCTION SYSTEM Outstanding Jersey Herd and In calf Heifer Replacements Herd BW 165/51 PW 178/70 RA 100% Vendors M/s RA & PE Adam and family 156 Allen Road RD 5 Te Awamutu 3875 The offering will comprise; • 154 Top Jersey cows. 37 with BWs above 200 up to 284, PWs to 473 • 79 Top Jersey in calf heifers with BW average 188, top BW 294
Tuesday 5th May 2020 at 1pm 57 Jersey cows Wednesday 6th May 2020 at 3pm 65 Jersey cows Thursday 7th May 2020 at 1pm 53 Jersey cows an in calf heifers
King Country BULL BREEDERS OPEN DAY AND BULL SALE WEEK We are working with our agents to bring our valued clients the best possible options for the upcoming season - please contact your stud breeder or stock agent for advice as listed below. Hingaia Angus Richard & Andrew Jolly 027 499 7159
Raupuha Shorthorns Russell & Mavis Proffit 027 355 2927
Storth Oaks Angus Tim & Kelly Brittain 027 593 5387
Kaha Speckle Parks Katherine Robertson 021 525 723
Kia Toa Charolais Paul & Claire Grainger 027 209 1959
Tarangower Angus Rob & Nikki Purdie 07 877 8935
Potawa Simmentals Andrew & Tracey Neal 027 366 5514
Rockend Herefords Peter & Kirsty McCormick 07 877 7897
Iona Angus Bruce & Audrey Bevege 07 877 7541
Ipurua South Devons Peter & Caroline Foss 07 877 7881
Colvend Shorthorns & Angus Alan and Val Park 07 894 6030
Shian Angus Brian, Sharon, Rob & Tracy Sherson, 07 895 7686
Blackridge Angus Dean & Teresa Sherson 027 690 2030
Pukenui Angus Alan & Cathy Donaldson 07 896 6714
Friday 8th May 2020 at 1pm 58 Jersey in calf heifers All intending purchasers must register with bidr during the week prior to the sale commencing to avoid disappointment. TB Cl0, EBL Free, Vaccinated for Blackleg and Leptospirosis, Milk tested negative for M Bovis. Herd established in the 1940s has always been owner milked. Outstanding udders, capacity, production and temperament are a feature. Under a low in put system the 170/200 cows have consistently averaged better than 400 kgs milk solids and up to 460 kgs milk solids per cow. Somatic cell count this season averages 77. Unsound, old and empty cows are not being offered. Majority of offering is A2A2 profiled. Calving is due to commence from 10 July 2020. Herd were all mated to high index AB and no bulls were pastured. Heifers ran with high index bulls. All have been pregnancy tested in calf. Vendors have engaged a sharemilker. These cattle are renowned for their shifting ability and are recommended to all dairymen requiring replacements. Catalogues giving all details are available from the auctioneers and also at www.pggwrightson.co.nz or www.jersey.org.nz Watch facebook: Carnmor & Thornwood Jersey for further updates.
All enquiries to the Auctioneers: Andrew Reyland PGG Wrightson Livestock M 027 223 7092 Brian Robinson Brian Robinson Livestock Ltd M 027 241 0051 Richard and Pauline Adam Vendors P 07 871 6884
Trading online with confidence during the COVID-19 Lockdown www.bidr.co.nz
To advertise Phone HANNAH GUDSELL 0800 85 25 80 or email livestock@globalhq.co.nz
Cam Heggie, 027 501 8182 Kevin Mortenson, 027 473 5858
Brent Bougen, 027 210 4698
Alan Hiscox, 027 442 8434 Helping grow the country
MARKET SNAPSHOT
34
Market Snapshot brought to you by the AgriHQ analysts.
Suz Bremner
Mel Croad
Nicola Dennis
Cattle
Reece Brick
Graham Johnson
Caitlin Pemberton
Sheep
BEEF
William Hickson
Deer
SHEEP MEAT
VENISON
Last week
Prior week
Last year
NI Steer (300kg)
4.85
4.85
5.45
NI lamb (17kg)
6.50
6.70
7.30
NI Stag (60kg)
7.00
7.00
9.00
NI Bull (300kg)
4.85
4.85
5.15
NI mutton (20kg)
4.50
4.55
5.05
SI Stag (60kg)
7.00
7.00
9.00
NI Cow (200kg)
3.25
3.30
3.90
SI lamb (17kg)
6.30
6.45
6.85
SI Steer (300kg)
4.40
4.40
5.05
SI mutton (20kg)
4.05
4.05
4.85
SI Bull (300kg)
4.35
4.40
4.90
Export markets (NZ$/kg)
SI Cow (200kg)
2.90
3.05
3.40
UK CKT lamb leg
10.35
10.38
9.34
US imported 95CL bull
8.00
7.92
7.83
US domestic 90CL cow
9.17
8.78
7.33
Slaughter price (NZ$/kg)
Export markets (NZ$/kg)
$/kg CW
$/kg CW
6.5
Oct
Dec 5-yr ave
Feb
Jun
2018-19
Dairy
Dec
Feb
Apr
Jun
Aug
2018-19
2019-20
Apr 2018-19
Jun
Fertiliser
Aug 2019-20
FERTILISER
Coarse xbred ind. Apr
Oct
5-yr ave
(NZ$/kg)
Feb
8.5 7.5
WOOL
5.00
5-yr ave
Aug 2019-20
Last week
Prior week
Last year
-
-
2.96
NZ average (NZ$/t)
Last week
Prior week
Last year
Urea
567
567
625
314
314
321
787
787
833
37 micron ewe
-
-
-
Super
30 micron lamb
-
-
-
DAP
Grain
Data provided by
MILK PRICE FUTURES
Top 10 by Market Cap
CANTERBURY FEED WHEAT
Company
Close
YTD High
Fisher & Paykel Healthcare Corporation Ltd
27.65
32.22
YTD Low 21.1
The a2 Milk Company Limited
19.6
20.3
13.8
7.75
430
7.25
420
Meridian Energy Limited (NS)
4.37
5.8
3.61
Auckland International Airport Limited
5.79
9.21
4.26
410
Spark New Zealand Limited
4.38
4.93
3.445
Ryman Healthcare Limited
12.5
17.18
6.61
Mercury NZ Limited (NS)
4.36
5.62
3.595
$/tonne
$/kg MS
South Island lamb slaughter price
9.5
7.0
5.0
4.50
6.75 6.25 5.75
May-19
Jul-19 Sep-19 Sept. 2020
Nov-19
Jan-20 Sept. 2021
WMP
Last price*
380
Mar-20
Mar-19
Prior week
2525
2745
vs 4 weeks ago 2490
SMP
2500
2500
2380
AMF
4100
4050
4200
Butter
4175
4175
3825
Milk Price
7.20
7.22
7.22
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
$/tonne Aug
Sep 4 weeks ago
Oct
25.23
18.42
5pm, close of market, Thursday YTD High
YTD Low
420
20.3
13.8
Comvita Limited
3.15
3.65
1.66
410
Delegat Group Limited
9.75
12.1
6.39
Fonterra Shareholders' Fund (NS)
3.66
4.06
3.62
Foley Wines Limited
1.65
1.91
1.35
Livestock Improvement Corporation Ltd (NS)
0.7
0.82
0.7
0.197
0.21
0.191
400 390
Marlborough Wine Estates Group Limited
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
New Zealand King Salmon Investments Ltd
1.8
2.3
1.29
PGG Wrightson Limited
2.55
2.6
1.55 5.55
Sanford Limited (NS)
7.1
8.2
Scales Corporation Limited
4.9
5.17
3.3
SeaDragon Limited
0.05
0.205
0.001
Seeka Limited
4.35
4.74
3.4
Synlait Milk Limited (NS)
7.1
9.1
4.36
T&G Global Limited
2.65
2.93
2.35
16099
16941
12699
400
S&P/NZX Primary Sector Equity Index S&P/NZX 50 Index
10446
12073
8499
300
S&P/NZX 10 Index
10953
12096
9100
200 100
Jun Jul Latest price
23
Ebos Group Limited
19.6
500
2500
4.9 4.54
Company
WAIKATO PALM KERNEL
2600
8.08 7.74
Close
Mar-19
2700
6.62 6.22
The a2 Milk Company Limited
370
WMP FUTURES - VS FOUR WEEKS AGO
Port of Tauranga Limited Contact Energy Limited
Listed Agri Shares
380
* price as at close of business on Thursday
2400 May
May-19
CANTERBURY FEED BARLEY
$/tonne
Nearby contract
400 390
DAIRY FUTURES (US$/T)
US$/t
10.5
5.50
Dec
South Island stag slaughter price
6.0
South Island steer slaughter price
Oct
8.5
11.5
8.0
6.00
4.00
9.5
7.0
9.0
6.50
10.5
6.5
5.50
4.50
Last year
7.5
5.0
5.00
Last week Prior week
North Island stag slaughter price
11.5
8.0
6.0
6.00
Slaughter price (NZ$/kg)
$/kg CW
$/kg CW
6.50
Last year
North Island lamb slaughter price
9.0 $/kg CW
North Island steer slaughter price
Last week Prior week
$/kg CW
Slaughter price (NZ$/kg)
Ingrid Usherwood
0
Mar-19
S&P/FW PRIMARY SECTOR EQUITY
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
16099
S&P/NZX 50 INDEX
10446
S&P/NZX 10 INDEX
10953
35
FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020 SI SLAUGHTER MUTTON ( $/KG)
NI SLAUGHTER COW ( $/KG)
4.05
3.25
SI SLAUGHTER COW ( $/KG)
2.90
PULSE MEL CROAD
Plan to offset the price volatility
I
T SHOULD come as no surprise the farming business model is dependent on so many variables. As outlined in AgriHQ’s Livestock Outlook in the past 10 years, which now excludes the global financial crisis, farmgate lamb and beef returns have stretched wide open between the best-case and worst-case seasons. It’s a clear example that in any given year farmers deal not only with fluctuating returns but also the need to align them against increasing costs and regulations, not to mention natural events outside of their control. Farmers are forward thinking and the graph shows why it is imperative to think and operate in that manner. Covid-19 lockdown regulations have copped a lot of blame for recent pricing downside – it’s been an easy target. But when the facts and figures are unearthed, much of the pricing downside felt this year was significantly higher through January and February. Since lockdown slaughter prices
have fallen by 10-30c/kg in the North Island and 15-35c/kg in the South Island. That is a lot more than normal but nothing to the scale of the earlier downside. As processing restrictions are lifted here throughput will increase, however, that must be balanced with overseas demand picking up. The key element holding back inmarket demand are the restrictions on eating out. Even as these are relaxed further down the line any economic recession might continue to weigh on markets. Optimists will note most of the trend lines on the graph lift going into spring. The revival in farmgate prices will be slow – dependent on how restrictions are removed through global markets. There is some way to go before we get towards a best-case scenario and it might not even be this year. What farmers need to do is revise budgets and be realistic with winter pricing levels. We are seeing glimmers of hope in key markets but at this stage they are very small lights at the end of a long tunnel.
WEATHER Soil Moisture
Overview This week kicks off with westerlies which by Tuesday fade as a huge area of dry, high pressure moves in across the entire country. It will bring settled weather till late Thursday or Friday and very little rain. As it slides out east on Friday it will allow a subtropical northerly down across the country. So the week ahead is both warmer than normal by day in many places but also drier than average. This weekend we get rain moving in slowly up the West Coast with heavy falls. Watch for rain warnings. The North Island might have weekend showers in the north but might remain mostly dry. Wetter weather arrives on Sunday or Monday.
23/04/2020
Source: NIWA Data
Highlights
Highlights/ Extremes
Temperature
Wind
Westerlies blow on Monday and will be gale force around Cook Strait and the Southern Alps, especially southern parts of the South Island. Then light winds until late week thanks to high pressure. Sub-tropical northerly quarter winds late week/weekend.
Generally speaking this week should become warmer and warmer, both by day and night, with subtropical airflows arriving in most regions by late week as high pressure departs our shores.
14-day outlook
It is drier than normal in basically every region for the next seven days but rain is returning for some. Refer to www.farmersweekly. co.nz/weather for new rain accumulation maps for the next seven days ahead.
7-day rainfall 7-DAY RAINforecast MAP
NI P2 steer trend (10-year best/worst/ave.) NI P2 steer trend (10-year best/worst/ave.) 6.5 6.0 5.5 5.0 4.5 4.0
Oct
Dec Feb 5-yr Ave
Apr Jun Last Year
Aug This Year
Oct
Despite Monday being a bit windy, especially from the lower North Island south, high pressure is pushing in by Tuesday and smothering the country on Wednesday. It slowly departs on Thursday and Friday, allowing sub-tropical winds to slide down over the nation. But the first weekend of May looks unsettled with a cold front moving in from the west bringing bursts of heavy rain and will coincide with the sub-tropical northerly bringing some rain for drought zones. Westerlies return next Monday.
It is drier than normal this week in many places. Weekend rain might be heavy on the West Coast on Saturday and some northern heavy falls are possible on Sunday.
Weather brought to you in partnership with weatherwatch.co.nz
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The news you need to see in a daily newsletter from the biggest rural newsroom in the country.
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Markets
36 FARMERS WEEKLY – farmersweekly.co.nz – April 27, 2020 NI SLAUGHTER LAMB
NI SLAUGHTER BULL
SI SLAUGHTER LAMB
($/KG)
($/KG)
R2 DAIRY CROSS STEERS IN TARANAKI BIDR AUCTION SELLING OR PASSING IN FOR
($/KG)
($/KG LW)
6.50
4.85
6.30
2.30-2.40
85% 75% high Sheep processing processing lights Cattle capacity compared capacity compared to pre lockdown
to pre lockdown
Chathams lambs still selling Suz Bremner suz.bremner@globalhq.co.nz
C
HATHAM Islands livestock have been caught up in the covid-19 lockdown but two solutions have emerged – one for the North Island and one in the South. Shipments of livestock from the Chatham Islands arrive at Napier and Timaru and are traditionally sold via Stortford Lodge and Temuka sale yards. In a typical year boats arrive about every fortnight, bringing mainly lambs and store cattle. The journey takes two or three days depending on sea conditions and the stock are grazed out to freshen up. In Hawke’s Bay, Chatham Islands stock are largely managed by Ken Simpson from Redshaw Livestock and having seen the writing on the wall earlier in the year he opted to postpone shipments. “A month before lockdown we were making plans. “We had a feeling that something major was about to happen and opted to postpone the boats to avoid stock arriving from the Chatham Islands and finding no market to absorb them.” Lambs, in particular, need to achieve a price that covers transport costs and the local lamb market was already feeling the impact of a very dry summer and was about to be broadsided by covid-19 and the subsequent lockdown. The last shipment came into Napier port at the end of December and was sold prelockdown in early February. With consecutive boats postponed the next shipment is due in Napier on May 2 and would have been offered at the May 13 Stortford
ALL GONE: Spirited bidding achieved a full clearance of Chathams Islands lambs on Friday.
We had a feeling that something major was about to happen and opted to postpone the boats to avoid stock arriving from the Chatham Islands and finding no market to absorb them.
Lodge sale, which is still the plan at this stage. “There are not huge volumes coming over at this time of year so we had some flexibility around postponing the boats, even with
conditions on the islands very dry. “For the next shipment we’ve asked vendors just to send their best stock – decent-sized lines of one age group and sex and so on – so that if for some reason the sale yards are not available then these will hopefully find a market in the paddock,” Simpson said. South Island company Peter Walsh and Associates has taken a different approach with the support of the Chatham Islands vendors. Boats have continued to arrive at Timaru and the first shipment from April 8 are the feature of PWA’s first LiveBid on-line lamb auction. Peter Walsh said the vendors did not hesitate to use the online auction platform.
WE’RE HERE TO KEEP YOU
GOING In these uncertain times any bit of certainty can go a long way. We’re reaching out to you, to let you know that as a key service provider to essential industries we’ll be doing everything in our power to keep you going while playing our part in keeping New Zealanders safe. Our service department will still be operating and parts are readily available, so be sure to secure your winter servicing requirements now.
All interaction will strictly follow the government’s guidelines for safe practices. Remember, we’re here to keep you going. To find out more about these guidelines and how to order and receive parts go to KEEPYOUGOING.CO.NZ
“The vendors can sit and watch their lambs being sold for a change. They are happy with how their stock look in the videos and can watch the auction. “They think it’s great.” The auction opened on Tuesday and closed on Friday with livestreaming from 1pm. On the Chatham Islands it is a real novelty to be able to see their stock sold without making a big journey to do so and Tony Anderson from Wharekauri Holdings is very supportive of LiveBid. “It was very innovative of Peter Walsh and the team to come up with LiveBid. “We did not want our lambs sitting around on grazing for an extended period and it was great
that they were able to come up with a competitive way to sell our lambs.” Anderson followed the auction for his mainly Romney wether lambs with interest and said the videos and commentary give buyers a good understanding of what they are being offered. The LiveBid auction achieved a full clearance after spirited bidding with the top Romney and Romneycross wether lambs making $97$112 with second cuts $81-$87. Ewe lambs and lighter Perendale cryptorchids sold for $72-$75. A second boat docked last Tuesday and a decision will be made later on how that shipment is sold but if the LiveBid option proves successful it might well find a place selling Chatham Islands stock.