Farmers Weekly NZ June 27 2022 by AgriHQ

7 Make the most of fert Vol 20 No 24, June 27, 2022

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NZ can lead food evolution Annette Scott annette.scott@globalhq.co.nz

HILE New Zealand’s food and fibre sector is facing a number of challenges there are opportunities that if realised, will ensure the sector is fairly rewarded, Lincoln University Agribusiness and Economics Research (AERU) director Caroline Saunders says. Targeting consumers who share NZ food and fibre producers’ values is key to capturing premium returns for the primary sector. “Nothing should be low cost in NZ,” Saunders said in her opening address of the E Tipu Boma Agri Summit in Christchurch. “NZ’s early prosperity grew out of exporting three land-based commodities – meat, dairy and wool – to the United Kingdom. “The agricultural sector saved us through the [covid] pandemic so commodities might look quite good at the moment but we can’t use commodities into the future,” she said. Right now there are many initiatives that aim to create and capture greater value from food and fibre exports which remain vital to the economy. “My vision for the country is nothing is low cost for NZ, what we do for NZ should be high value. “As we face a lot of challenges,

we are looking for opportunities to capture premium value into a move away from volume to value in a value chain space.” The opportunities need to celebrate the sector and ensure it is fairly rewarded. “What do consumers value, what are they willing to pay for and how does that resonate with what is important in the collective values up and down the value chain, the attributes of foods we can’t see or touch but assurances consumers know are there.”

Agriculture is not under pressure yet from climate change policy, but it will be as consumer awareness continues to grow but there are huge opportunities to come from that as consumers want meat, but they want it more sustainable. Ramez Naam Climate technologist As well as producing food that tastes and looks good, NZ products have great credence attributes such as animal welfare, health benefits, environmental stewardship, cultural authenticity

and country of origin. The AERU has provided evidence for this in commodity and country studies, Saunders said. “By targeting consumers who share our values we can get winwins, higher prices for our produce that reward social, cultural and environmental standards. “This requires creating value chains that communicate our values to consumers and delivers premiums to producers and what we target will vary by country and commodity,” she said. Director of UK-based Balance Point Advisory Hannah Tucker says many of the foods we love and depend on are becoming an endangered species in the food system transformation from industrial to a modern economy. “Such foods are highly vulnerable to drought, floods – victims of a crisis, and if food is endangered then everything is endangered including our lives,” Tucker said. So how will food change in the 2020s? “The modern food system is both synthetic and regenerative, combining control of nature and collaboration with nature.” What’s for dinner in a regenerative world approach is based on more than a piece of meat. Synthetic versus regenerative is competing in many ways but also with many complementary approaches. “The modern food system

BEST OF BOTH: Director of UK-based Balance Point Advisory Hannah Tucker says the modern food system is both synthetic and regenerative, combining control of nature and collaboration with nature.

aligned with the capabilities of the 2020s technologies and how we combine modern philosophies, growing opportunities and shrinking risks, will create the 2020s food and beyond,” Tucker said. American climate technologist Ramez Naam says while there’s challenges now for all on planet earth, the good news is we are making progress. “I believe we are headed for a brighter future. This is the best time to be born on the planet ever. “The number one driver for the global rise out of poverty is agriculture; the world is heating up but the world wants more meat.

“Agriculture is not under pressure yet from climate change policy, but it will be as consumer awareness continues to grow but there are huge opportunities to come from that as consumers want meat, but they want it more sustainable. “That’s where there’s opportunity for NZ,” Naam said. “NZ producers, both food and fibre, legitimately claiming to be sustainable producers can tap into this market. Naam said the major culprit for NZ is methane emissions from livestock. “Saving the climate one cow at a time,” he said.

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20 Active living unit drives profits for Fonterra

Fonterra’s active living unit in the NZMP division is one of the value-add businesses that will deliver on the company’s long-term strategy of growing operating profit by 40-50% by 2030.

REGULARS Newsmaker ................................................... 28 New Thinking ............................................... 29

9 Prospering through the changes Golden Bay dairy farmer Corrigan Sowman spent several years studying how farmers can best tackle the changes underway in agriculture. Now he’s applying what he learnt back on farm.

Editorial ....................................................... 30 Pulpit ............................................................. 31 Opinion ......................................................... 32 Real Estate .............................................. 35-36 Employment................................................. 37 Tech & Toys.................................................... 37 Classifieds..................................................... 38 Livestock ................................................. 38-39 Weather ......................................................... 41

12 Dairy makes peace with environmental groups

The dairy sector, Fish and Game and Forest and Bird say they have put aside their differences after years of animosity.

It takes two to test innovations

They say two heads are better than one, and now farmers and rural professionals are being urged to team up to test innovative ideas that could lead to significant improvements in farming systems.

Markets .................................................... 40-44 GlobalHQ is a farming family owned business that donates 1% of all advertising revenue in Farmers Weekly and Dairy Farmer to farmer health and well-being initiatives. Thank you for your prompt payment.

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FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Region confident training to stay Neal Wallace neal.wallace@globalhq.co.nz CONFIDENCE is growing that vocational training will resume at the former Taratahi Agricultural Training Centre, which was forced into liquidation in 2018. Primary Industries Minister Damian O’Connor says his office and the Tertiary Education Commission are working with the liquidators “to find a long-term solution to secure sustainable agricultural education at Taratahi now and into the future”. Community leaders in Wairarapa are equally confident, saying there is a potential buyer for the complex near Masterton. O’Connor says he is committed to a solution that secures sustainable education at Taratahi and utilises the 294ha farm and adjacent buildings and teaching facilities. Liquidators recently sought a High Court determination on whether the farm can be sold to pay creditors, with Justice Ellis ruling that it could with the approval of the Minister for Primary Industries. This potentially opens the door for a new owner and training

provider on the campus, but it has raised concerns from the descendants of those who gifted that land in 1918, who want it retained as an agricultural training campus. Wairarapa farming leader William Beetham says he knows the Government has in the past few years been talking with local Iwi about having a future role at Taratahi, but they were reluctant to run it as a training provider.

I am aware that there is an interested party. I’m very confident a buyer will emerge. Greg Lang Carterton District Council Mayor He doubts that position has changed. Farmers Weekly has approached Ngati Kahungunu for comment but none has been received. Beetham says efforts to resume

WILL DO: Agriculture Minister Damien O’Connor says he’s committed to a solution that secures sustainable education at Taratahi.

agricultural training at Taratahi have been underway for several years and he welcomes any progress. With the Government centralising the administration of polytechnics, any training offered at Taratahi would have to meet the national strategy while also ensuring the course meets the expectations of trainees and employers. Beetham says descendants of the original donors need to be consulted to ensure that any change satisfies the wishes of their forebears that the land continues to be used for the training of people to work in the farming sector. Carterton District Council Mayor Greg Lang says he is “extremely confident” a successful buyer will use the campus for educating young people in farming and rural related industries. “I am aware that there is an interested party. I am very confident a buyer will emerge,” he says. Negotiations were at a delicate phase, but Lang says the recent High Court decision was a significant development, allowing solutions to be considered. Liquidators want to sell the land, the last substantial unsold asset, to release funds to repay Westpac $6.6m. After WWI, Sir William and Lady Margaret Perry donated 131ha to help returning servicemen reestablish themselves and promote modern farming practices in the Wairarapa. At the same time a neighbouring 163ha was bought off Mrs Ivelenah Rayner using funds raised from the Wairarapa community along with donated livestock. The Government funded buildings, fences and equipment. This led to the establishment of the Wairarapa Cadet Training Farm.

PROGRESS: Wairarapa farming leader William Beetham says efforts to resume agricultural training to the Taratahi campus have been underway for several years and he welcomes any progress.

Up until 1969, the farm was controlled and managed by a committee appointed by the Minister of Agriculture, but the passing in 1969 of the Wairarapa Cadet Training Farm Act, vested the farm and land in a trust board to give governance a more certain legal footing and easier access to funding. Taratahi reported financial

losses in 2017 and 2018 with a further loss forecast for 2019. Low enrolments at that time required the repayment of Tertiary Education Commission funds which pushed the trust into liquidation in December 2018. Justice Ellis notes that at the time of liquidation, the board owed $11.9m and a further $12.5m to the Westpac.

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FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

All hands on deck to push EU on trade Nigel Stirling nigel.g.stirling@gmail.com MEAT and dairy exporters are anxiously holding their breath as the Prime Minister Jacinda Ardern heads to Brussels this week to try and break a deadlock in trade talks with the European Union. Ardern’s trip comes as EU negotiators continue to dig their heels in over market access for the two key pastoral exports as a deadline to conclude talks by the end of this month looms large.

I am confident in some of the negotiators that are leading the negotiation but I am not confident in the Europeans in the way they engage in trade negotiations. Sirma Karapeeva Meat Industry Association It is understood the EU has offered to scrap modest tariffs on kiwifruit and honey but continues to stonewall on demands to significantly reduce tariffs on dairy and beef. In return the EU is demanding NZ dairy producers give up the use of product names associated

with European places – so-called Geographic Indications – such as feta and parmesan. Underlining the urgency of the situation the leadership of the Meat Industry Association, Beef + Lamb NZ and the Dairy Companies Association travelled to Brussels last week to coincide with Ardern’s trip. Fonterra is also represented. Dairy Companies Association chairman Malcolm Bailey said the Europeans were offering small increases in quotas for dairy imports coupled with high inquota tariffs. “When we run the numbers we can’t see that they will be viable to use most of the time.” Bailey said the offer was so bad NZ would be “going backwards” compared to the quota available following the Uruguay global trade round in the mid-1990s. Those quotas were split after Britain exited the EU last year. NZ dropped its objections earlier this year in the hope quotas would at least be restored to preBrexit volumes during the current talks with the EU. However, Bailey feared there was now “momentum” from both sides to meet their deadline of reaching an in-principal agreement by the end of this month. He said NZ should resist concluding a deal by then if there is no improvement in the EU’s offer for key exports like dairy. “We are not happy to conclude a deal based on what we see at this point in time.” Meat Industry Association

NOT GOOD ENOUGH: Dairy Companies Association chairman Malcolm Bailey says NZ should resist concluding a deal if there is no improvement in the EU’s offer for key exports like dairy.

chief executive Sirma Karapeeva said it would be better for the Government to call a halt to talks than sign a substandard agreement and set a precedent for future trade deals. “And we have made that point with the Minister [of Trade Damien O’Connor] in meetings with him. “We cannot support a deal that does not deliver to our commercial interests in that market.” When asked whether she was confident the Government was prepared to walk away from a deal not in the industry’s best interests Karapeeva equivocated. “I cannot answer that question. “I am confident in some of the negotiators that are leading the negotiation but I am not confident

in the Europeans in the way they engage in trade negotiations. “I am not confident that they will come to the party and strike a deal that is all that it set out to be.” One trade-watcher and former negotiator said he “could not believe” the Government would conclude a deal with such a poor outcome for two crucial export industries like meat and dairy. However he conceded there were pressures on the Government to sign an agreement with the EU even if it fell short of the ideal outcome for exporters. Instead NZ would be demonstrating “solidarity” with Western security partners in the face of rising threats from China and Russia. The source said it was notable

Ardern would be attending a meeting of the NATO defence alliance during her European trip. “We are in lockstep with Europe on Ukraine and we are increasingly in lockstep with the Americans in the Indo-Pacific. “There is a dynamic in all of this which can play one of two ways. “It can be used to demonstrate that we need something from our allies in the economic space which is the way they should be playing it. “Or that the ties that bind us are so strong that we have to conclude all these arrangements to demonstrate our solidarity. “I personally think that is the greater risk…that to demonstrate our impeccable Western credentials we just get ripped off again by protectionist Europeans.”

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FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Sheep milking expands to Taranaki Staff reporter

BIGGER: Spring Sheep chief executive Nick Hammond says he’s thrilled to be launching sheep milking into the Taranaki region.

THE Government is backing Spring Sheep Milk Company in a new $19.94 million programme to expand the dairy sheep supplier base into new regions. The Scale Up partnership follows a successful six-year Primary Growth Partnership, Sheep Horizon Three. With strong customer demand for sheep milk globally, additional growth in the number of farmers will be required. Spring Sheep currently has 16 supplier farmers. To support this growth, the Scale Up programme will foster expansion of the dairy sheep in new regions of New Zealand starting with Taranaki. The Taranaki region is well suited to dairy sheep farming and shares close proximity to

existing industry manufacturing capability. Spring Sheep will work closely with regional partners Parininihi ki Waitōtara (PKW), who have the necessary whenua and capacity to bring a new industry to life in this region. Spring Sheep chief executive Nick Hammond says the programme is incredibly exciting for the industry. “We are thrilled to be entering this next phase of growth in conjunction with MPI and are particularly excited to be launching sheep milking into the Taranaki region. “The Scale Up programme is absolutely critical to setting the industry up for success over coming years, working right across the value chain from global market development to farming insights across New Zealand.

“It is fantastic to work with experts, from farmers to scientists and manufacturers who are embracing this emerging industry and joining us on the journey as we deliver quality New Zealand sheep milk to the world.” The Sustainable Food and Fibre Futures progamme is delivered through the Ministry for Primary Industries. The Scale Up programme includes a workstream for farmerled research and development projects across the country’s established producers which will deliver improved industry knowledge and foster the development of best-practice standards. A dairy sheep training module will also be established to upskill the required workforce to support growth across the regions.

Strategy will help face change Annette Scott annette.scott@globalhq.co.nz TE PUNA Whakaaronui Thought Leaders group chair Lain Jager says New Zealand needs a strategy that will take the country forward as a nation. He says there is a short window of opportunity to invest and make progress. Strategies that are incomplete will not attract investment and if you can’t invest in them then you can’t move forward. “Without clear strategy and capacity to implement change this country will go backwards,” Jager told the E Tipu Boma Agri Summit in Christchurch. “We do need new industry, new billion-dollar business, to drive this (primary industries) sector forward.

“From $48 billion in exports to $85b by 2050, if we can grow the sector by 2% annually – there is no other $37b prize. “We know the politics of environmental excellence and licence to operate, we have four drivers of success.” Jager outlined these as: absolute commitment to environmental excellence; alignment of incentives, investment and policy to enable and accelerate innovation; sustaining the current strong natural foods position; and sustained leadership to realise potential in new sectors and markets. Referring to Well NZ – reframing NZ’s food sector opportunities, Jager pointed to the three drivers of change impacting food and fibre value chains as climate change, consumer needs and

rapidly developing technology. Well NZ describes the evolution of global food and fibre value chains, identifying risks and opportunities. Jager says rapid change makes predicting the future impossible so getting the strategy right is important but increasing the capacity of the system to accelerate and support the rate of innovation is more important. There is no silver bullet however the opportunity to enhance NZ’s existing system lies in growing the best, most nutritious natural foods that we can and at the same time looking for nutritional compounds to add value to both natural foods and precision fermented foods. “We can build resilience into our natural food production system and identify opportunities

EVOLVE: Te Puna Whakaaronui Thought Leaders group chair Lain Jager says our competitors are investing to adapt to global food system and technological change and NZ should be too.

within a modern food space and grow and innovate. “The global food and wellbeing economies represent opportunities for NZ’s food and fibre sector – if we are prepared to

embrace change. “Our competitors are investing and taking positions to adapt to global food systems and technological change – NZ should be too,” he said.

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FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Value every grain of fertiliser Hugh Stringleman hugh.stringleman@globalhq.co.nz HIGH fertiliser prices provide an opportunity to carefully consider soil fertility, nutrient needs and the calibration of spreaders, Ballance science strategy manager Warwick Catto says. He told dairy farmers at the Northland Agricultural Research Farm, Dargaville, to take a really hard look at soil test variability across the farm, which could surprise in its extent. “Even on relatively flat Waikato farms we have seen Olsen Phosphorus levels from 10 to 100. “I have seen a particularly low potassium soil test on just one block of a Mid Canterbury arable farm, and that paid for 10 years of soil testing on that farm, from the economic benefit of getting that sorted.” Catto said identifying the variability within the farm with comprehensive soil testing was key to making worthwhile savings on spreading. “Most farms will have blocks with optimal or over-optimal legacy fertilities which can be exploited.” Variability applied to all nutrients, phosphorus, potassium, sulphur and nitrogen, and to pH, he said. Catto advised farmers to categorise their farm blocks into As, Bs and Cs, being best, medium and low potential, for the prioritising of fertiliser expenditure. The highs would receive all the fertiliser they needed, the mediums maintenance fertiliser only, and the lows nothing. “High-performing or valuable blocks, say with younger pastures, should get what they need to protect your investment. “Low-performing blocks get nothing because the potential responses are of no significance to the farm performance as a whole.”

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OPPORTUNITY: All farmers should take a hard look at their soil tests and spreaders, Ballance science leader Warwick Catto advises.

Low-performing blocks get nothing because the potential responses are of no significance. Warwick Catto Ballance Agri-Nutrients A main aim of fertilising pastures was to grow more clover content and therefore gain the cheapest source of nitrogen. Areas of the farm with very low clover content could be left out of

fertiliser spreading because the loss of dry matter would be trivial. Catto also advised asking the timing question whether fertiliser applications could wait a season, to delay the cash outflow, although that required taking a position of the way prices will move in future. “Where you already have high soil fertility, deferring applications doesn’t make a big difference.” Aerial spreading should be concerned with slope and aspect of hill country and their differing pasture responses as well as soil test variability, he said. Nitrogen fertility levels are the primary determination for

dairy farms with already high soil nutrients and early spring applications are crucial to set up the rest of the season. The second consideration should be a spelling interval after N applications following behind cow grazing. Plants take up nitrogen and slowly convert that into dry matter so to minimise animal urine N levels the grazing rotation should be 20 days or more. Typically 10% of applied nitrogen disappears as ammonia, so the use of volatilisation inhibitors can cut that loss in half, thereby adding 5% more nitrogen response.

Finally, Catto emphasised the requirement for spreader calibration to even out fertiliser distribution across the ground. While a Spreadmark accredited operator may cost more, they provide value for money by putting the right product in the right place at the right rate. Mild temperatures in previous drought regions like Waikato have recharged pastures quickly and the next climatic determination would be La Nina persistence into next season, he said. “If La Nina recurs, what might I do differently to get a good buffer of feed to carry through?”

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FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Bull sale averages up $2800 on last year Hugh Stringleman hugh.stringleman@globalhq.co.nz NORTH Canterbury bull breeders did very well with top prices and considerably higher averages during a week of sales highlighted by $65,000 paid for a Woodbank Angus at Clarence Valley. Ben and Caroline Murray’s Woodbank 20021 was sold to Stern Angus at Pleasant Point Woodbank put up 62 bulls in two runs and sold 57 with an average of $12,104, a whopping $2800 better than last year. Co-vendor Matariki Herefords, Jim and Becky Murray, improved their annual sale average by the same $2800 a head, selling 62 for $11,274. Their top price was $47,000 paid by Limehills Herefords, Millers Flat for Matariki Nautical, by Matariki Kruise. Nautical has very impressive indexes and a great back end, said the vendors. A good clearance of 74 bulls and an average $1000 more than last year marked the Kakahu Angus two-year bull sale near Geraldine, South Canterbury. This year’s average was $11,140 and the top price was $38,000

for Kakahu 20056, out of Syngen Enhance. Kakahu also sold a bull at $30,000 and two at $22,000. For their 50th annual bull sale Koanui Polled Herefords, Maraetotara, sold 41 of 54 bulls offered and averaged $9585, right up with last year’s average. Top price was $23,000 for Koanui Marvel R049, sired by Koanui Major P469, purchased by Glenlapa Station, Gore. Marvel has high dollar indexes across the board and is out of Koanui Cynthia 1112, in the top four females in the herd and a donor cow. The Chesterman family at Koanui also sold 10 in-calf heifers for part of the 50th celebration and got a $12,500 top price from Stewart and Julia Eden, establishing Fermoy Herefords, also near Gore. The heifers averaged $6100 and were all sold. Jennifer Chesterman said commercial farmers competed strongly for the bulls, although there were some gaps among the usual clients because hill country farms have gone into forestry. Another vendor to improve on last year’s average price was

JUBILEE: Koanui Marvel R049 was sold to Glenlapa station in Gore for $23,000.

Kaiwara Angus at Culverden, North Canterbury, which sold 21 out of 26 and averaged $7750, with a top price of $13,000 paid twice.

LONGEVITY: Fred Chesterman has been breeding Herefords for 50 years at Mararetotara, Hawke’s Bay.

On the same day in the same district Hemingford Charolais had a excellent sale with a top price of $37,000 paid by Kia Toa Charolais for Hemingford Regency R12, by Ned Kelly N2 out of Hemingford 0152. The Holland family said sale day saw a record crowd, record top price and record average of $9160 for 53 sold out of 56 offered, an increase of $1300 a head on the 2021 sale. Nearby Grampians Angus, Amuri, is a model of consistency, selling all 45 bulls offered for the second year of full clearance, despite offering 10 more. The top price this year was $19,000, followed by one each at $18,000 and $17,000 and seven at $16,000. The average was $11,911, well in advance of last year’s average. Another North Canterbury Angus stud, Red Oak at Amberley, had a very consistent sale with an average of $10,004 over 35 sold which was $2640 more than last year. Top price was $16,000 paid by Turihaua Angus for Red Oak

Photos: Koanui Herefords

20095, sired by High Country, now a 10-year bull with unbeatable soundness and longevity.

Commercial farmers competed strongly for the bulls, although there were some gaps among the usual clients because hill country farms have gone into forestry. Jennifer Chesterman Koanui Polled Herefords Two were sold at $15,500 and one at $15,000, all in the first six lots. Waiterenui Angus, Hastings, sold 39 out of 43 and averaged $7282 with a top price of $13,000. Fossil Creek Angus had a full clearance of 66 bulls, averaged $11,878 and had a top price of $21,000 paid by a commercial farmer.

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FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Prospering through the changes farmstrong.co.nz

GOLDEN Bay dairy farmer Corrigan Sowman spent several years studying how farmers can best tackle the changes underway in agriculture. Now he’s applying what he learnt back on farm. Whereabouts are you farming? We’re dairy farming in Golden Bay, milking 700 cows and raising 400 beef stock on 500 hectares. It’s a family farm going back 75 years – my brother and I farm together with our parents. We’ve got three staff, with another due to start shortly. You’ve done a lot of study about the impact of change on farmers. Yes, I was looking at how can people prosper through change and how can we do change better as an industry. What did you discover? That when it comes to change, many farmers feel under the pump. For example, there’s a lot of public discussion at present around sustainability. Society’s got a view that we need to do things better in agriculture so people tend to pile into farmers on these issues and what do farmers do? They often go into fight or flight mode in terms of their thinking. They freeze. Isn’t that understandable? Yes, but going into survival mode isn’t going to help you deal with change. If you think like that, you’re not going to constructively consider what people are trying to say, or how much of that is true or how we could improve their understanding of why we’re doing what we’re doing. We need society

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OPEN UP: Golden Bay dairy farmer Corrigan Sowman says farmers have got to become a little more self-aware of the way they’re thinking and more open to change.

to appreciate it has taken a while for New Zealand farming to reach this point and it will take time to unwind it, because none of us have endlessly deep pockets. Fundamentally, farmers have got to become a little more selfaware of the way they’re thinking and more open to change. We’re not going to tackle any of the challenges in front of us unless we can think our way through them. It sounds as if you’re advocating a different mindset. Some might find that challenging. I know, because farming is a unique occupation. It’s not just someone’s livelihood, it’s where they live, it’s who they are. Their family and sense of self-worth are often all tied up in how they react to change. But we still have to find a way to keep the industry evolving because life itself will always keep changing. I’m a fan of what All Black psychiatrist Dr Ceri Evans said about performing under pressure – sometimes we just have to get comfortable with the uncomfortable. That’s true for farmers too. There are some realities – water quality, animal welfare, climate issues – which we’re going to have to confront, whether we like it or not. The reality is that if we own these challenges and get to work on them, then we’re going to be way further ahead than burying our heads and ignoring them. How does a person change the way they think? These are the so-called soft skills that people can learn. I think in agriculture we spend a lot of time talking about the what, but

we need to start to consider the why a lot more, which relates to how people think. My study showed that people are the hardest thing to change and yet people are at the heart of addressing issues like sustainability. If we don’t understand our people and their thinking, nothing is going to be any different. For instance, we might come up with a solution for methane inhibitors, which is an issue stressing out a lot of farmers right now, but how are we going to implement it and make people understand that they need to do it? Have you applied this approach on your own farm? My studies have really influenced what I do. Where I’m farming at the moment we’re at the point of a whole lot of regulatory change. As farmers, we’re trying to consolidate and gain wider acceptance in our community about the impact of dairy farming for the environment we farm in. That’s why I put my hand up to be involved in the Fonterra sustainability panel. It’s giving me a greater understanding of the issues and allowing me to contribute.

So, has your own way of thinking changed? Yes, I’ve gained a much greater awareness that I’m not going to be able to tackle the issues facing this business if I’m not thinking clearly and helpfully. It doesn’t mean I don’t have negative thoughts anymore, but I’m pretty quick nowadays to realise when I’m not in the right headspace. How has this new attitude helped on farm? I can think my way clearly through way more things now than I could a few years ago. If you improve your mind’s ability to think, then it definitely helps you to perform under pressure. These days even when things don’t all go to plan, I can come back the next day in the right space to deal with them. Have you introduced these ideas in your workplace? Yes. We engaged a coach last year to help us socialise ideas around soft skills like communications that no-one likes talking about, but everyone knows are important. I think it’s about forming deeper relationships with people so you’re not just saying – here’s what I want you to do today.

Being aware of my thinking has definitely helped me manage my team better. For example, I’m better at communicating how I’m feeling with them. I can say, “look yesterday wasn’t that flash, there was a bit going on”. One of the things I’m learning is to manage change you’ve got to keep delegating and growing your team so they can take more responsibility. You’re a strong supporter of Farmstrong aren’t you? I think Farmstrong’s ideas around wellbeing are definitely filtering through the industry. Getting through a drought’s not easy, getting through a wet spring’s not easy, dealing with inflation or under-staffing isn’t easy. People are realising that it’s all about looking after your brain and body so you can perform at your best and get through these challenges.

is the official media partner of Farmstrong

Listen to Corrigan’s chat with Farmers Weekly editor Bryan Gibson here: https://spoti.fi/3tQNNCK

22/06/22 3:04 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Sector calls for pause on biodiversity plan Neal Wallace neal.wallace@globalhq.co.nz FARMING groups are asking the Government to pause implementation or at least extend consultation on new biodiversity rules, saying the sector is swamped with legislation. The call has fallen on deaf ears, however, with the Government confirming the process will proceed as planned. Beef + Lamb NZ says it has concerns with the recently released exposure draft for the National Policy Statement for Indigenous Biodiversity (NPS-IB) and says few of the changes it has sought have been included. “We have serious concerns over the criteria for determining Significant Natural Areas (SNAs) and the areas this would include,” chairman Andrew Morrison says. The criteria for identifying an SNA remains too broad and will capture significant areas of farmland. “We previously advocated for the definition to be narrowed to identify habitats that are threatened, at risk, or rare as SNAs. “Our proposed definition is already used by some councils and has been working well.” Morrison says owners of SNAclassified land will be restricted in their ability to undertake new or modified activities. “In some cases, the activity may

Given the timeframe to date and the level of engagement that has taken place throughout, officials are not considering any further delay to the NPS-IB or extending the current targeted consultation period. James Shaw Associate Environment Minister

TAKING CARE: Councils and ecologists working with landowners will identify Significant Natural Areas and councils will need to be transparent and clear about how this information will be used.

not be able to occur, in others it may be granted via a resource consent process which involves an ecological assessment.” Associate Environment Minister James Shaw says there will be no time extension or delay. “Given the timeframe to date and the level of engagement that has taken place throughout, officials are not considering any further delay to the NPS-IB or extending the current targeted consultation period.” Shaw says that once finalised, the policy will be phased in slowly. “Councils will have up to five years to include SNA provisions in implementation plans. “Existing land uses that have been lawfully established can continue, provided the impact to biodiversity does not increase.” The ministerial disclosure document says it has responded

to feedback by ensuring economic activities such as farming, forestry, infrastructure and energy can continue. The document states pastoral farming can continue in areas identified as SNAs, but councils need to work with landholders to advise and support them on how to best manage those areas. “Where maintenance of improved pasture is required, it will be able to continue within some parameters.” These parameters were not stated. Productive plantation forests with identified areas of SNAs must be managed over consecutive rotations so threatened or at-risk species are maintained. In 2014, there were 71 identified rare ecosystems, with 45 of them threatened with collapse, the document states.

Wetlands are now only about 10% of their pre-human extent. The NPS-IB attracted 7000 submissions with the majority in support of the policy’s intent, specifically to help address the decline in indigenous biodiversity and clarify council responsibilities for protecting areas and habitats of significant indigenous vegetation. The policy will have an effect on the management of biodiversity on private and publicly-owned land. “Much of NZ’s indigenous biodiversity is on privately owned and managed land. “This includes ecosystems that are poorly, if at all, represented within public conservation land, such as lowland ecosystems.” Councils will be required “to consistently identify areas with significant vegetation and habitats

of significant indigenous fauna,” which will have to be managed and protected through regional and district plans. “The intent of these provisions is not to identify all indigenous biodiversity, but to ensure the indigenous biodiversity that is most significant and precious is identified and protected.” Councils and ecologists working with landowners will identify SNAs, and councils will need to be transparent and clear about how this information will used. The document states the intent is not to stop any new development from occurring, but ensure new uses and developments avoid and manage any adverse effects on significant indigenous biodiversity. By 2027 territorial authorities will have had to identify, map and notify SNAs in their region.

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22/06/22 3:57 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Irrigation company in receivership Neal Wallace neal.wallace@globalhq.co.nz A DISPUTE with a contractor has pushed a North Otago irrigation company into receivership owing more than $50 million. The Kurow-Duntroon Irrigation Company (KDIC) owes nearly $39m to two secured creditors, $35.6m to Crown Irrigation Investments Ltd and $3.1m to the Waitaki District Council, and $12.2m to trade and other creditors. Receivers, BDO, are investigating claims from other security holders. The receiver’s report states the company was formed by 70 shareholders in the Waitaki Valley in May 1989 and owns and operates the Kurow-Duntroon Irrigation scheme supplying water to 4090ha but with capacity to supply a further 5500ha.

It sources water from Lake Waitaki and distributes it to shareholders from the Waitaki Dam and Duntroon. The report states that in November 2018 KDIC entered a contract with Monadelphous Engineering NZ (MENZ) for a $43m upgrading and extension, which included piping the scheme’s water system. This followed direction from Environment Canterbury that the company had to reduce water losses from scheme canals that it had been using to transfer water. Construction began the following February, but delays soon disrupted work. Access to the dam was not finalised until August that year resulting in an extension of time claim from MENZ which cost the company $453,000. That same month the Waitaki District Council issued an

BILLS: The Kurow-Duntroon Irrigation Company owes nearly $39m to two secured creditors, $35.6m to Crown Irrigation Investments Ltd and $3.1m to the Waitaki District Council, and $12.2m to trade and other creditors.

abatement notice against KDIC for work it says did not meet consent conditions. Agreement was reached with the council which required remediation and a further extension of time claim. The parties could not agree on an amount and last November MENZ initiated adjudication proceedings. In April the adjudicator determined KDIC is liable for $12.9m plus interest. When it was unpaid in midMay MENZ initiated court proceedings.

KDIC directors considered the determinations incorrect and in tandem initiated further arbitration and engaged discussion with its lenders. This lead to the decision of directors in May to seek voluntary administration through BDO, an insolvency process that places a moratorium on creditors and at the end of the process creditors vote on the company’s future. The receiver says the dispute with MENZ has made KDIC insolvent. “Our review of the company’s financial position indicated

that prior to the adjudication determinations being received, the company was solvent and had sufficient working capital to meet its ordinary obligations as they fell due. “However, upon receipt of the adjudication determinations, the company lacked sufficient resources to settle the sums due to MENZ and was therefore insolvent.” The scheme is still operating but BDO notes that communityowned irrigation schemes are owned by those who benefit, leaving receivers few options.

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Dairy farmers make peace with NGOs Gerald Piddock gerald.piddock@globalhq.co.nz THE dairy sector, Fish and Game and Forest and Bird say they have put aside their differences after years of animosity. The commitment to co-operate comes down to mutual respect, Fish and Game chairman Ray Grubb told a DairyNZ webinar held as part of its Farmers Forum series. Attitudes around environmental protection have changed over the past decade and this was noticeable in the farming sector. “Our style these days is nonconfrontational and we believe in community partnerships.” Those partnerships involve people visiting farms as fishers or game bird shooters and having a good relationship with the landowner, he said. “We couldn’t have had this conversation three years ago. We had ‘dirty dairying’ when I became chairman that got dropped very quickly. I felt it was disrespectful of the people both in F&G and in the farming community.” Grubb said the campaign did not achieve a practical purpose and he believed the same thing could be achieved by co-operation and working together. “A year later I was sitting next to [DairyNZ general manager of sustainable dairy] David Burger at the Environmental Defence Society conference talking about the changes the dairy industry were making. We couldn’t have done that many years ago.” There will and should be disagreements, but the dairy sector and NGOs also have different priorities. But the overarching priority would always be to improving freshwater. Farming had also changed, with more introducing science on their farms by measuring pasture covers, cow performance, water levels and other inputs.

MOVING FORWARD: New Forest and Bird chief executive Nicola Toki says her organisation can bring to the discussion how people can be “nature positive” whatever they do.

We couldn’t have had this conversation three years ago. We had ‘dirty dairying’ when I became chairman that got dropped very quickly. I felt it was disrespectful of the people both in F&G and in the farming community. Ray Grubb Fish and Game “What we are asking you to do is assess those impacts off the farm, the impacts of nutrients and sediment on waterways and the surrounding environment.” F&G can help farmers mitigate those impacts, he says. It was not their job to interfere

on farms or compel farmers to meet Government standards. Instead, it was to advocate for those standards to be applied in a proper way through rules and regional plans. “When we do that, we’ll do it with respect and hopefully cooperatively and certainly that’s happening now.” Burger also doubts this conversation could have happened in the past and it was an important conversation to have. Historic tension between the groups erupted when the dairy industry expanded in the late 1990s and 2000s. Looking back, Burger says while a lot of that criticism was fair, some of it was not. The ‘dirty dairying’ campaign caused a lot of hurt in rural communities and farmers felt they were being unfairly targeted. On many levels, the two groups shared similar environmental aspirations and Burger says in

recent years the dairy sector has also taken a lot more ownership of their environmental impact. “We know all of that action is going to lead to environmental improvement but at the same time, we know we have a big challenge in front of us.” The leadership of groups like F&G, F&B and the Environmental Defence Society had been pivotal in enabling constructive conversations, he says. “That discussion hasn’t been easy at times, but I think the shift in leadership that we are seeing has been really important and does allow us to get into detail and focus on solutions together.” New F&B chief executive Nicola Toki said their organisation can bring to the discussion how people can be “nature positive” whatever they do. “We are up for the conversation to help,” she says. But any conversations have to be honest and courageous. “That means its uncomfortable

but if it’s not uncomfortable, we’re not going to make change. We need to resolve these wicked problems, and to do that means brave hearts and that means honest conversations, testing evidence and being real and upfront.” F&B said the conversation must be upfront about the issues the two parties agree and disagree with. “But that bit in the middle, that’s the magic spot and we risk cutting off our noses to spite our faces if we don’t take the opportunity to grab the bit in the middle.” F&G deputy chairman and dairy farmer Richard McIntyre says sitting around the F&G table allowed a farmer’s perspective to be brought to the conversation. “There’s a saying that if you’re not at the table, you’re on the menu and I think farmers have suffered from that in the past.” He believes the organisation was also sincere about its desire to re-set that relationship.

Mark Copeland LLB, CMInstD

Rural Disputes Expert

Available to assist with resolving rural disputes, or for appointment as a Sharemilking Conciliator, Rural Arbitrator or Farm Debt Mediator throughout New Zealand.

Ph: 07 345 9050

e-mail: copeland@copelandlawyers.com

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STORY TO TELL: Fish and Game deputy chairman and dairy farmer Richard McIntyre says sitting around the F&G table allowed a farmer’s perspective to be brought to the conversation.

22/06/22 3:05 PM

Protect your patch, stop the spread! Every time you open your farm gate to a visitor you are taking a biosecurity risk.

Pest plants spread slowly from property to property, often going undetected. Seeds and plants can be brought on to your property through vehicles, stock animals, and feed. Canterbury is currently being invaded by a host of new pest plants that pose a significant threat to the sustainability of farming in our region, and to our environment.

Have a clean-on, clean-off policy. Provide washdown facilities and set requirements for all service providers.

Hold incoming stock in a designated paddock for 24-hours upon arrival.

Source verified seed and feed. If buying locally, ask the supplier whether they know of any concerning weeds or pests on their property.

Display a sign on your gate outlining your requirements, and limit access to ensure you know who is coming on and off your property.

You can help control the spread and reduce the likelihood of something new entering your property by implementing some simple actions:

By protecting your assets from pests, you’re also protecting your neighbours, your community, and region.

Pests currently spreading in Canterbury through human activity: If you see one of these plants, report your sighting using the Find-A-Pest app or reportpests.nz with photographs and location details. Yellow bristle grass

African love grass E22/9009

Chilean needle grass

0800 324 636 biosecurity@ecan.govt.nz

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22/06/22 1:24 PM

INSTORE DAYS DEALS Two of the best days o� the farm, since 1994

Just some of our partners o�ering great deals for your farm. Find out more at www.ruralco.co.nz/instoredays

The Ruralco Instore Days is a fantastic celebration of all things agricultural, focussed on bringing the rural community together and this year’s event is shaping up to be another exciting opportunity for farmers to connect with each other, our team and suppliers. This year’s Ruralco Instore Days will be held on Thursday 7 July and Friday 8 July, with deals available online till midnight on Sunday 10 July. From small beginnings in 1994, Instore Days has grown and is now likened to a “mini �eld days” in our Ashburton store, where you can bene�t from deals across Ruralco and our suppliers. This year, you can visit our marquee at the Ruralco Ashburton store, or if you live locally to Methven or Rakaia simply pop into those stores and see the team. If you are out of the area most of our deals are available online until midnight 10 July at www.ruralco.co.nz/instoredays Join us at Ruralco Ashburton to meet suppliers in person and get epic deals.

Thursday 7 July | 8:00am - 5:30pm Friday 8 July | 8:00am - 4:30pm

Visit our stores in Methven or Rakaia to get the same great deals.

Head to www.ruralco.co.nz/instoredays and purchase most of our products online with free delivery nationwide.

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22/06/22 1:25 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

It takes two to test farm innovations

SHARING’S CARING: Our Land and Water chief scientist Rich McDowell says the funding will help get good ideas off the farm and out to everyone who can benefit from them.

Staff reporter THEY say two heads are better than one, and now farmers and rural professionals are being urged to team up to test innovative ideas that could lead to significant improvements in farming systems. The Rural Professionals Fund, established in 2020 by the Our Land and Water National Science Challenge, is now accepting applications for the third round of funding to support projects that could benefit farming communities. Applications close on Friday, August 12, with projects to begin on October 1. Our Land and Water chief scientist Rich McDowell says Kiwi farmers are creative and resourceful, often trying out new ideas and practices because they are curious to see what will happen. “As a science funder, we’re used to hearing big ideas from scientists seeking research funding. But we wondered, how many promising ideas are stuck on one farm – or inside a farmer or rural professional’s head? Loads, it turns out.” The third round of the fund will invest up to $75,000 in projects to rapidly test ideas and innovations within a short nine-month time frame. Project teams must include a rural professional and a farmer or grower. The team also must include a person with relevant scientific or technical expertise, or mātauranga Māori, or kaupapa Māori research expertise (this may be the rural professional in some cases). Projects must align with the Our Land and Water objective: to improve Aotearoa’s land and water quality for future generations, while enhancing the value of the primary sector to New Zealand. Communicating the results of both successful and unsuccessful projects to the wider rural profession and farming community is a crucial part of the process. “We are particularly interested in projects that will help diversify land use and practices, effect behavioural change and create new ways of doing things across the agri-food and fibre system,” McDowell says. “We want to see concepts emerge that can generate evidence and move into action quickly, the fund allows us to quickly explore a lot of options, and encourage and resource more innovators and entrepreneurs to test their good ideas.” Chief executive Jo Finer says the NZ Institute of Primary Industry Management is delighted to support the opportunity to pilot innovative ideas that drive improvement on farm. “Rural professionals play a valuable role as trusted advisors to farmers and this provides them with a unique opportunity to generate ideas which can be tested with the support of funding.” Last year, the fund received 47 applications, of which 12 projects were funded and are now close to completion. These projects encompassed a wide variety of farm systems, industries and ideas. The projects all have one thing in common: if the concept was proved, it could create real benefit for farming communities, our land, or our water.

Every farm is unique, even if they’re neighbours. That’s why you need a vaccination programme that fits your farm’s unique requirements.

Find out more and apply for funding: ourlandandwater.nz/RPF-apply

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

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Schering-Plough Animal Health Ltd. Phone: 0800 800 543. www.msd-animal-health.co.nz. NZ-NLV-220400001 NZ/NLX/0518/0003e © 2022 Intervet International B.V. All Rights Reserved. 1. Baron Audit Data. March 2022.

22/06/22 1:23 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Emissions reductions still a slow process If farmers were to be credited for the carbon captured in their soils, then they would also have to pay for any that was subsequently lost. Ants Roberts Ravensdown

Neal Wallace neal.wallace@globalhq.co.nz DON’T expect a massive reduction in greenhouse gas emissions from current technology, farmers attending the South Island Dairy Event in Oamaru have been told. Ravensdown chief scientist Ants Roberts says for each kilogram of food eaten, cows produce about 21 grams of methane. Annual emissions of enteric methane from a typical North Otago or Canterbury dairy farm range from seven to 22 tonnes/ha, primarily from microbially digested feed in the rumen, of which 95% is belched with the rest flatulence. Higher quality feed reduces those emissions. Roberts says there are other steps farmers can

take to reduce greenhouse gas production such as reducing annual nitrogen application rates, using inhibitor-coated nitrogen fertiliser and optimising soil fertility through regular testing. Reducing peak cows, improving per cow performance and reducing replacements from 23% to 18% can lower methane emissions by between 2% and 11%. Research trials indicate that sowing plantain into a pasture can lower nitrous oxide emissions by 28% compared to ryegrass while growing fodderbeet instead of kale can lower nitrous oxide emissions 39%. Roberts says other measures include minimising effluent storage time in anaerobic ponds, capturing effluent through a stand-off pad or barn, using all effluent as a substitute fertiliser and

JEFF ROBINSON ...is happy to ‘talk up’ the benefits of his JCB SERIES III to his contracting business. We challenged him to see the advantages of owning a second one. Here’s what he said...

keeping animals off pasture during wet periods to avoid urine deposition and soil compaction. He says carbon in the soil is not counted as sequestration because it is not permanently locked up. It is subject to microbial degradation and the degree of carbon loss depends on management practices such as irrigation, stocking rates and cropping practices. In the past three to four decades, soil carbon on flat land has declined by between 0.32 to 2.9t/ha a year on volcanic ash, gley and peat soils, but on stable hill country slopes it has increased 0.6t/ha a year. Roberts says if farmers were to be credited for the carbon captured in their soils, then they would also have to pay for any that was subsequently lost. Landcare Research is sampling 400 sites around the country to measure soil carbon with those sites revisited and measured in the future. Roberts says research to find potential solutions to reduce greenhouse gas emissions include breeding low methane emitting sheep and cattle, technology that is up to five years away but could give 10% reduction. A vaccine is at least 10 years away and could reduce methane emissions by 30%, but a rumenbased methane inhibitor could be sooner, up to five years away, and provide a 30% reduction. EcoPond, a system of reducing methane from effluent ponds, removes 95% of the methane emissions by killing the methanogens in the pond, as well as killing 99% of E.coli. It will also potentially decrease phosphorus leaching from effluent blocks by 90%.

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TOOLS: Ravensdown chief scientist Ants Roberts says some of the steps farmers can take to reduce greenhouse gas production include reducing annual nitrogen application rates, using inhibitor-coated nitrogen fertiliser and optimising soil fertility through regular testing.

22/06/22 1:23 PM

News Acland takes on deputy’s role with Beef + Lamb

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

ON TOP: Kate and husband David Acland on their Mt Somers Station property in the foothills of Mid Canterbury.

Annette Scott annette.scott@globalhq.co.nz MT SOMERS Station farmer Kate Acland has been appointed to the re-established role of deputy chair at Beef + Lamb New Zealand. Acland, elected as the Northern South Island director in April 2021, takes up the position to help spread the increasing workload for chair Andrew Morrison. While Morrison plans to seek re-election as chair in 2023 he says the decision to re-establish the deputy chair role comes from the ever-increasing workload in a period of significant change for farmers. “Kate [Acland] has an excellent mix of rural expertise and business acumen to support us in achieving our strategic goals and objectives of helping farmers run thriving and profitable farm businesses.

The sheep and beef sector is facing intense challenges and we will continue to advocate and work hard on behalf of our farmers for sensible and practical policy settings.

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Andrew Morrison Beef + Lamb NZ “I will continue as chair and look forward to Kate’s assistance in her new role as deputy chair. “The sheep and beef sector is facing intense challenges and we will continue to advocate and work hard on behalf of our farmers for sensible and practical policy settings,” Morrison said. Acland is looking forward to her new role and the challenges ahead. “I’m enormously passionate about our sector and the people that are a part of it, and I strongly believe Beef + Lamb NZ plays a key role in its future success. “I’m excited about the challenge and looking forward to supporting Andrew [Morrison] and the wider team,” Acland said. Before moving to her husband David’s family farm in the foothills of Mid Canterbury, Acland developed her own vineyard, winery, processing and export business in Marlborough. Mt Somers Station runs 30,000 stock units in a mix of sheep, beef and deer, as well as an 850-cow dairy unit. The farming operations also include a standalone honey business with 500 hectares of native vegetation and beech forest providing the food for 400 hives that produce manuka, honeydew and clover honeys. The Aclands have three children and employ 30 staff across their diverse group of businesses. Acland is also a Ruralco director, a director of the Wool Research Organisation of NZ and managing director of Marlborough-based Sugar Loaf Wines, while David recently took on the role as Federated Farmers Mid Canterbury provincial chair. The couple also own off-farm businesses including the local Mt Somers general store and the Staveley Farm Shop and Café.

Your comment counts Add your voice to this story at farmersweekly.co.nz

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22/06/22 1:23 PM

An update from Andrew Morrison, Beef + Lamb New Zealand Chair, and John Loughlin, Meat Industry Association Chair June 2022

Agriculture emissions pricing recommendations

What does this mean for farmers now?

Recommendations on an agricultural emissions pricing system as an alternative to already-legislated entry into the Emissions Trading Scheme (ETS) have gone to the Government. B+LNZ and MIA representing the red meat sector, along with others such as DairyNZ and Federated Farmers and iwi, are part of the partnership that developed the recommendations.

We know emissions pricing is confronting for some farmers and could significantly affect profitability. We’re focused on minimising costs and supporting farmers to make changes to their farm systems to reduce emissions.

The recommendation is for a farm-level levy system. While not perfect, it is significantly better than the ETS and gives farmers more influence over their future. Farmer feedback was critical in refining the recommendations and the system can be further refined and improved over time – this is not the end point. Farmers have expressed a high level of concern about this process – this was made clear through the consultation period. The implications for farming business viability have therefore been at the forefront of our minds. While we strongly support the recommended farm-level levy approach and believe it’s better than the ETS, what’s crucial is the pricing applied under it. B+LNZ therefore also released additional modelling on the financial implications of the recommendations. This modelling based on over 400 individual farms reinforces the need to take a cautious approach on the prices applied to agricultural emissions – we’ll keep pushing hard for caution around the pricing of emissions. What has been recommended? The farm-level levy system recognises what individual farmers are doing on their farms. Key recommendations include: • farmers calculating their methane and nitrous oxide emissions based on what they’re doing on-farm, not on national averages • unique prices for both methane and nitrous oxide • a maximum starting price for methane to provide certainty • credit for sequestration from a wider range of vegetation than currently recognised in the ETS • incentive payments taken off costs for using technologies and practices that reduce emissions • money raised in the system goes back into research and development for further agricultural emissions reductions. There’s information on the B+LNZ website on how farmer feedback helped refine the recommendations – see the web address below.

Unless the Government decides to bring agriculture into the ETS beforehand, pricing won’t happen until 2025 – there’s time to get prepared. Any actions you can take to reduce emissions on-farm now will put you in a better position when pricing is introduced. The first step is to know your on-farm emissions numbers – eg through the B+LNZ GHG Calculator online or a B+LNZ workshop.

Why do we need the He Waka Eke Noa approach? The Government wanted to put agriculture into the ETS in 2019, but we and other partners convinced them to work with us on an alternative as we believed the ETS would be disastrous for farmers. With the legislation already in place to price agricultural emissions, saying ‘no’ to pricing wasn’t an option. The ETS does not recognise the range of on-farm sequestration available (particularly natives). If agriculture joined the ETS, the methane price would also be linked to the carbon price, which would not recognise methane’s different warming impact and the price of carbon is expected to continue to rise rapidly. This would have a significant impact on sheep and beef farming viability, as B+LNZ’s modelling shows (go to the web address below for more information about the modelling).

What about the emissions reduction targets? B+LNZ has and will continue to advocate for science-based emissions reductions targets, separate to our work on He Waka Eke Noa. We don’t believe the current methane targets in the Climate Change Response (Zero Carbon) Act are justified based on the latest international science about methane’s warming impact. We’re continuing to advocate, along with DairyNZ, Federated Farmers and others, for the Government to report on warming as well as emissions and for the use of GWP* as a more appropriate metric for setting targets.

What are the next steps? The Government is considering the recommendations and public consultation is expected later this year, so farmers will likely get a further opportunity to provide feedback. By December 2022 the Government will make its final decision on how agricultural emissions will be priced. We’ll work with He Waka Eke Noa partners over the coming months to inform the Government’s analysis and won’t stop working to get the best outcomes for farmers, particularly on issues like pricing.

For further information go to www.beeflambnz.com/emissions-pricing-consultation

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22/06/22 1:25 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Trade optimism follows WTO meeting Eric Frykberg A SERIES of agreements at the World Trade Organization (WTO) last week are being seen as good for New Zealand, even though they will have little direct impact and even though agricultural reform completely failed. That is because the agreements revitalise an institution that had been growing moribund against New Zealand wishes. The agreements came at the 12th conference of WTO Ministers (MC12), which extended its schedule for a day and then sat all through the night, finally reaching consensus just before dawn on several issues. New Zealand’s trade minister Damien O’Connor was there, though he left for other meetings before the end of the talks. MC12 was the first ministerial meeting since 2017 and became bogged down in lengthy and sometimes heated argument before reaching agreement just before sunrise. “At last, we delivered!” the WTO Director General Ngozi OkonjoIweala tweeted ecstatically. “A successful MC12 with 6 plus solid deliverables! Sincere thanks and congratulations to Ministers, Ambasadors, Senior Officials and Secretariat Staff for making this work!” The breakthroughs included a deal to reduce subsidised fishing, which New Zealand and other nations say is a dangerous practice that causes environmental damage. Other issues included a partial waiver of intellectual property (IP) rights for Covid-19 vaccines. And there was an extended ban on e-commerce tariffs, which are widely thought to be be unenforceable anyway. None of these changes are of direct benefit to New Zealand. But Stephen Jacobi of the New Zealand International Business Forum says the fact that agreements were reached was a good thing for countries like New Zealand. “The delegates can go home happy knowing that they did a good piece of work,” he said.

“It means the WTO is starting to function again as it should, which is the world’s trading partners coming together to work out how the multilateral trading system should operate.” In tangible terms, New Zealand has always wanted an end to trade-distorting subsidies for agriculture, but there was no progress on this, as there hasn’t been for 20 years. All that happened was a commitment to talk some more about it.

It means the WTO is starting to function again as it should, which is the world’s trading partners coming together to work out how the multilateral trading system should operate. Stephen Jacobi New Zealand International Business Forum Okonjo-Iweala spoke candidly about this failure in her closing address at the conference. “While we all agree on the vital importance of agriculture in our economies, differences on some issues, including public stockholding for food security purposes, domestic support, cotton and market access, meant that we could not achieve consensus on a new roadmap for future work,” she said. “But here too, members found a renewed sense of purpose: they are determined to keep at it on the basis of existing mandates with a view to reaching positive outcomes at MC13.” There were other omissions too, such as a failure to revitalise the inner workings of the WTO, by restoring a quorum of judges to its appellate body.

NEXT TIME: WTO Director General Ngozi Okonjo-Iweala says while progress was slow at MC12, members were determined to keep at it on the basis of existing mandates with a view to reaching positive outcomes at MC13.

But Jacobi thinks the agreements that were reached constitute a milestone. “The WTO is back in the business of making decisions and that is a good thing. “It was a more successful meeting of the WTO than we have seen in recent times.” This view was shared by Julien Chaisse, a law professor at the City University of Hong Kong. He told Al Jazeera the agreement represented a “great

dawn” for international trade and multilateralism. The only tangible outcome of MC12 that affects agriculture was a decision to exempt food bought for humanitarian purposes from export prohibitions. This was an attempt to alleviate worries about food security because of the war against Ukraine. But New Zealand exports different food products to different markets and does not have export bans anyway, so

it will not be affected. New Zealand has repeatedly said it wants a robust WTO to guarantee that trade is done acccording to agreed international rules. But in fact, this country has done well, with or without the WTO. In the five years between this WTO Ministers meeting and the previous one, total primary sector exports rose from $38.2 billion to $54.3 billion annually.

Thinking about a career in the rural sector?

Join Olivia Weatherburn on her brand new podcast as she talks with young Kiwis working in the sector, to provide an insight into some of the many exciting career pathways available, how to get there and why they love it. In our latest episode, Cheyenne Wilson shares with us her journey which has taken her from starting her rural career through calfrearing, to landing a role as a Graduate Maori Relationship Partner at DairyNZ. To listen scan the QR Code

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22/06/22 1:26 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Active living brings value to Fonterra

FUNCTIONALITY: Komal Mistry-Mehta heads a business unit called active living that uses proteins, probiotics and phospholipids.

Hugh Stringleman hugh.stringleman@globalhq.co.nz FONTERRA’S active living unit in the NZMP division is one of the value-add businesses that will deliver on the company’s long-term strategy of growing operating profit by 40-50% by 2030. It is growing revenue by 7% annually and on target to deliver the 2030 targets, divisional head Komal Mistry-Mehta said.

PROTECT YOUR LIVESTOCK BY STEPPING UP TO COGLAVAX8 VACCINE Changing to Coglavax8 increased the survival rate of our lambs. Now we only use Coglavax8 across all our sheep and cattle. Donald Polson

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Active living margins will increase by $50 million from 2021 financial year to FY24, she said. Her Singapore-headquartered marketing unit works with functional foods for lifestyle choices, often to counter the modern afflictions like anxiety and stress, tiredness and fatigue, obesity and sleeping troubles. Mistry-Mehta said the global health and wellness market was valued at US$66 billion and growing at 6% annually. Medical nutrition is valued at US$50b and growing at 5% a year. Health and wellness nutrition is rapidly going mainstream, with eight out of 10 consumers looking for functional benefits when snacking. Dairy is the obvious source for many of the proteins and lipids in these functional foods, she said. Fonterra already has expertise, including dairy proteins that help maintain muscle mass, lipids to improve mood and probiotics to support immunity, digestion and a developing role in mental wellbeing. It goes beyond ingredients processing and functionality into consumer propositions based on science-backed nutritional health claims. “Our portfolio of these bioactives definitely has synergistic benefits so, through R&D, how do we create unique value propositions for our customers,” she said.

Dairy is the obvious source for many of the proteins and lipids in functional foods for active living. Komal Mistry-Mehta Fonterra NZMP

STEP UP TO 8 IN 1 PROTECTION When you’ve built a reputation for outstanding genetics you don’t want to take unnecessary risks with clostridial disease. That’s why Waipuna Farms have stepped up from 5 in 1 to Coglavax8 vaccine to protect their unique Waipuna Maternal and Terminal breeds against 8 clostridrial diseases present in New Zealand.

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coglavax8.co.nz Ceva Animal Health (NZ) Limited. P: 09 972 2853 ACVM No. 7528 References: 1. JS Munday, H Bentall, D Aberdein, M Navarro, FA Uzal &S Brown, Death of a neonatal lamb due to Clostridium perfringens type B in New Zealand, New Zealand Veterinary Journal 2020. 2. West, Dave M., Bruere, A. Neil and Ridley, Anne L. The Sheep, Health, Disease and Production. Auckland: Massey University Press, 4th ed., 2018. Print.

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The active living division has expanded its geographical reach into China and South Korea, whereas future markets included Vietnam, Indonesia and Thailand. It deals with medical professionals, supplement brands and health and wellness brands, moving beyond business-to-business into addressing consumers also. Primary health benefits concern muscle mass and its gradual loss in the elderly, mobility, malnutrition and digestive health. The developing benefits include oncology perioperative care and mental wellbeing. The complementary benefits may include immunity, metabolic health and weight management. Premium proteins are the hero products where Fonterra can be first to market with IP-protected and highly differentiated products. The United States is the world’s largest active living market, where Fonterra has whey protein plants and does business with Sun Genomics, which provides personalised probiotics to consumers. Another company is Life Extension, offering a range of vitamins, nutritional substances and blood tests, which launched in 2021 supplements containing Fonterra’s BifidoB HN019 probiotic. In South Korea the Daesang company recently launched a new bioactive whey for immunity with eleven times the lactoferrin percentage of standard whey protein. Fonterra produces probiotics in Palmerston North and it is not dependent on the milk supply.

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News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Second farm found with M bovis Annette Scott annette.scott@globalhq.co.nz A MID-Canterbury dairy property has become the first to be confirmed with Mycoplasma bovis this year. The infection was found in a spring-calving herd during routine bulk tank milk (BTM) screening. Movement restrictions have also been placed on a small number of associated properties that have had known cattle movements from the confirmed property in the past year. Ministry for Primary Industries (MPI) Mycoplasma bovis eradication programme director Simon Andrew says while the M bovis programme is on the brink of eradication it is expected that more infected properties will pop up. But Andrew says it is not a concern. “We expect to find small pockets of infection and the latest find in Canterbury shows our BTM screening system is working. “The BTM programme provides confidence that Mbovis is not widespread and we remain on track for eradication, as shown by our very low rate of case finds

We expect to find small pockets of infection and the latest find shows our BTM screening system is working.

NOT DONE YET: Ministry for Primary Industries (MPI) Mycoplasma bovis eradication programme director Simon Andrew says while the M bovis programme is on the brink of eradication it is expected that more infected properties will pop up.

Simon Andrew M bovis Programme from testing, Andrew said. He says based on previous years, it is known that autumn and spring are the peak periods for detects picked up from the BTM screening and it is not unexpected to find infected farms at this time. “With our network and background surveillance operating as they should, along with the commitment of farmers, industry and rural communities, we are still on track to be the first country in the world to eradicate M bovis. “It’s important to note, we are still in the delimiting phase for Mycoplasma bovis eradication and there is still work ahead of us, so good biosecurity practices and

use of Nait remain important.” The M bovis programme is committed to working closely with the farmer on the latest confirmed property, Andrew said. This property is the first to become an active confirmed property in 2022. Movement restrictions have been placed on a small number of associated properties that have had known cattle movements from the confirmed property in the past year.

“We are also investigating backward traces to determine where the infection may have come from, but it is likely to be linked to animal movements,” Andrew said. BTM screening takes samples each month at the point of collection as part of the normal milk collection process. Samples are then screened for M bovis antibodies and results indicate whether an on-farm investigation is needed.

Recent MPI analysis of screening data found detection of the infection is higher in the first 30 days of milking. As a result, from July to September, fortnightly BTM screening will be implemented. The confirmed result is the first for 2022, and brings the current number of properties with active infections in New Zealand to two, second being the Five Start beef Feedlot in Mid Canterbury confirmed infected back in 2018.

I N V I TAT I O N - C O M P L I M E N TA R Y S E M I N A R

Opportunities beyond the farm

Farming in New Zealand is rewarding, but your assets and income can be open to change at any time from extreme weather conditions, commodity prices and all the other challenges of being in business. To protect against these events, you may wish to consider diversifying your assets and investing offfarm. A diversified investment portfolio can help

to minimise your risk and can provide you with a regular income from your investments if needed. Federated Farmers and Forsyth Barr invite you to join Martin Hawes who will provide an interesting and informative presentation on diversification, succession planning, and why investing off-farm could provide you with superior returns against the backdrop of international events.

About Martin Hawes: Martin Hawes is a well-known New Zealand author, conference speaker, and TV & radio commentator. Martin is the author of 23 books on personal finance. The best known of these are: “20 Good Summers – work less, live more and make the most of your money” (New Zealand best-seller), “Family Trusts – A New Zealand Guide”, and “Cracking Open the Nest Egg”. Attendees at the seminar will go in the draw to win one of 5 copies of Martin’s latest bestseller, “Cracking Open the Nest Egg”, helping people get ready for their retirement.

For more details and to register, please visit forsythbarr.co.nz/ffseminars or email seminars@forsythbarr.co.nz

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22/06/22 1:30 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Velvet market tipped for strong growth Annette Scott annette.scott@globalhq.co.nz EXPORTS of New Zealand velvet could reach $200 million a year over the next 10 years with potential sales growth in several markets including Korea and China. In his address to the recent deer industry branch chairs meeting in Wellington, Deer Industry New Zealand (DINZ) markets manager Rhys Griffiths reported a positive future for velvet. Velvet is a growing industry, with exports estimated to reach $120 million by the end of this 2021-22 season, Griffiths said. This is a doubling of production and a quadrupling of farmgate value over the past 12 years. However, the economic impacts of inflation, falling consumer confidence, lockdowns in China and temporary stifling of new product development, along with plenty of this season’s unprocessed stock sitting in China, will remain problematic in the short term as covid-19 continues “to knock the industry for a six”, Griffiths said. In the medium-term, the overall outlook looks positive. “More opportunities are emerging in South Korea’s healthy foods market where companies are investing in ‘NZ-ness’ so need NZ velvet.” NZ Trade and Enterprise workshops are helping NZ velvet to connect better with Korean consumers and more innovative products are in the pipeline, such as the newly launched Sooshin Energy Shot from New Origin. In addition, China represents a significant opportunity for growth

If we want to expand and to grow a market because we want to grow production, we’ve got to find ways of getting into China and that’s why we’re trying to tap into those food companies. Tony Cochrane PGG Wrightson

OPPORTUNITY: Deer Industry New Zealand markets manager Rhys Griffiths says velvet could increase to $200 million in the next 10 years.

where currently consumption is natural and organic and entry to the market must be well managed to replicate what has been done in Korea. “Now is the time to own the position,” Griffiths said. Velvet exporters are working within the China Deer Velvet Coalition to establish links with potential customers in the Chinese food sector. As well, investigations are underway in Taiwan where Korean company KGC recently reported

success for a second new velvet product. DINZ is also looking at prospects in Japan and Vietnam. While there are plenty of challenges Griffiths painted a bright outlook. “If industry is successful in its ambitions, we could increase to at least $200 million in the next 10 or so years,” he said. Meanwhile PGG Wrightson has exported the first ever dry velvet to China, signalling a sign of the changing times for NZ deer

velvet that is targeting health food companies in the emerging market. The small trial airfreight consignment arrived at Beijing in early June in what is hoped will be the first of many shipments for the company, PGG Wrightson national deer and velvet manager Tony Cochrane reported. Addressing a DINZ road trip event Cochrane told farmers industry is working together to promote the product into China as a food ingredient with the

collaboration also part of the Primary Collaboration NZ (PCNZ) based in Shanghai. There is also potential for a boost from “revenge spending” as Chinese consumers exit strict lockdowns looking both to boost their immune systems and try new things like NZ deer velvet and venison. China takes all grades of NZ deer velvet but particularly prizes the jelly tips of the velvet, the part that has the active cell growth and that sells for $10,000/kg. But of the 60% of velvet currently exported to China, 40% goes to customers in South Korea. “If we want to expand and to grow a market because we want to grow production, we’ve got to find ways of getting into China and that’s why we’re trying to tap into those food companies.” In doing so, managing animal welfare and public perceptions through VelTrak and the sector’s quality assurance programmes will be important, Cochrane said.

Venison starts a slow recovery Annette Scott annette.scott@globalhq.co.nz A FARMGATE price recovery as high as $11 a kilogram is needed to get the struggling venison sector back on track. Deer Industry New Zealand venison markets manager Nick Taylor says while May showed improvement, it is still in recovery mode. Despite the logistics challenges, the market diversification programme away from restaurants in Europe to retail markets in the United States and China continues and is making headway. “Companies are looking to build those markets with a long-term view.” Continuing challenges around covid-19 lockdowns in Shanghai and last-minute shipping delays and schedule changes, compounded by the war in Ukraine, have caused headaches for exporters who now face risks in getting chilled product to market, especially in Europe. In China, where promotion activities have had to be delayed or adjusted due to lockdowns, exports of venison lifted to around

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340 tonnes in April – 750% more than April 2020. There have also been increases in the number of high-value products heading to the US and Europe. American diners have been reluctant to eat out but numbers are now approaching pre-covid levels and export value has picked up since February, though still not to where it was pre-covid. With the continued expansion of new high-value products going into Europe, lower tonnages of venison exports to the region are seen as a positive signal that value is growing, Taylor said. In a series of road trip meetings around the country DINZ chief executive Innes Moffat told farmers the industry’s top priority is to assist with the recovery in venison prices. “It is absolutely acknowledged that the venison price is not where it needs to be and everybody is working hard on encouraging more consumption and demand for NZ venison.” To provide some examples of a venison schedule that is needed, DINZ engaged an agricultural consultant to do some

comparative profitability analysis on South Island moderate country to put to venison marketers. This put the venison farmgate price on a $10.50-$11 track to equate with recent high lamb prices.

It is absolutely acknowledged that the venison price is not where it needs to be and everybody is working hard on encouraging more consumption and demand for NZ venison. Innes Moffat DINZ “This is obviously significantly higher than the current schedule, but that didn’t scare the marketers. “If we carry on with adding value, through getting away from the commodity end of the

business, it’s within reach.” Closing the gap a lot more between frozen and chilled prices will help, as will the sector’s market diversification strategy that is working to lift prices. Moffat says creating market diversification, particularly in China, is the next priority for the DINZ executive. Venison companies continue to invest in the new markets, which are growing and will need to be supported to provide longer-term sustainable and superior returns. “For velvet, we need to develop a new market channel in China so we can recreate similar growth and demand in new product forms as we’ve seen in Korea. “That way we expect demand will continue to keep ahead of production which is continuing to increase in NZ.” Covid-19 disruption and constraints caused by environmental compliance are combining to affect production for the deer industry. Moffat says this is affecting DINZ’s 2022-23 budgets now being drawn up, which assume a reduction in the venison levy and an increase in velvet production

RETURNS BOOSTED: DINZ venison markets manager Nick Taylor says lower tonnages of venison exports are seen as a positive signal that value is growing.

and consequent lift in income. “We had built up some reserves because of higher than budgeted venison production over the past couple of years.” In the future we will see a closer balance between venison and velvet with more farmers focusing on velvet than venison, which will need to be reflected in the activities that we do, he said.

22/06/22 1:26 PM

SAME SAME BUT DIFFERENT

fieldays.co.nz

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30 NOV- 3 DEC

22/06/22 1:26 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Court corrals Bayer again on Roundup Richard Rennie richard.rennie@globalhq.co.nz THE DEBATE on glyphosate safety has intensified following a United States court ordering the Environmental Protection Agency (EPA) to re-examine the spray’s risk to human health. The United States circuit court supported environmental groups and farm worker and safety advocacy bodies that maintained the EPA did not consider Bayer’s Roundup glyphosate product’s impact on cancer risk and endangered species. The decision came only a week after a jury in Kansas City ruled in favour of Bayer over glyphosate litigation, the sixth litigation ruling on the crop treatment and the third consecutive ruling that has fallen in Bayer’s favour. Of the three trials Bayer has lost, it has been required to pay tens of millions of dollars in settlements. Meantime, globally the agricultural industry is closely watching whether the US Supreme Court takes up Bayer’s appeal against a $25 million damages claim awarded to a California man who claimed his cancer was the result of the company’s weed killer. The worker had regularly used Roundup for 26 years at his home

Glyphosate-based herbicides are among the most thoroughly studied products of their kind, which is a major reason why farmers around the world continue to rely on these products. Mark Ross Agcarm

CONTROVERSIAL: Agcarm chief executive Mark Ross said the latest court issues about glyphosate mark another round in an on-going debate held in United States and Europe.

before being diagnosed with nonHodgkins lymphoma. The Biden administration has since urged the court not to hear Bayer’s appeal on the case, a reversal of the view taken by Trump’s government. Agcarm chief executive Mark

Ross said discussion on the use of treatments like glyphosate were healthy, given the many differing views on product use. But in this instance he said Agcarm believes the US EPA will continue to conclude as it has for the past 40 years that glyphosate-

based products can be used safely and are not carcinogenic. Back in 2020 the EPA’s interim review stated the agency had thoroughly evaluated potential human health risk associated with glyphosate exposure and determined there were no risks to human health from current registered uses of the product. This was echoed last month after the European Chemicals Agency committee for risk assessment found that classifying glyphosate as a carcinogen was not justified. The assessment included data from over 1500 studies and 12,000 new articles. Ross said due to the lack of

alternatives it was important the current product registrations remain in place in the United States and growers and other users can continue to use the product, based on label instructions. “Glyphosate-based herbicides are among the most thoroughly studied products of their kind, which is a major reason why farmers around the world continue to rely on these products not only for effective weed control but also to minimize tillage farming practices, reduce greenhouse gas emissions, preserve more land for native habitats, and provide enough food to meet the needs of a growing population worldwide,” he said. In the European Union glyphosate has gained approval for use until mid-December this year. Austria banned its use outright in 2019, and Germany intends to phase it out by 2023. The United Kingdom has pushed out approval for its use until 2025. After mid-December if there is a qualified majority among member EU states in favour of a renewal, or a qualified majority against it, the EU’s commission will follow the vote. Bayer has undertaken to work with the EPA in the US on its decision making.

Pāmu Deer Milk wins global award PĀMU’S awarding winning Deer Milk won the Best Dairy Ingredient category at the World Dairy Innovation Awards, announced in Laval, France overnight. Chief executive Mark Leslie says the win in these prestigious awards is a validation of the hard work and innovation that has gone into creating an all-new product for the agri-sector.

“All New Zealanders, as shareholders in Pāmu should be really proud of this win, at what is essentially the World Cup for the dairy sector. “Our deer milk product has been steadily growing in popularity among high end chefs and as a unique new ingredient in cosmetics. But that’s not where it ends. “This win recognises the extensive application and

unique properties of deer milk, and the growing recognition of deer milk as a specialty dairy product.” Pāmu Deer Milk is sourced through a partnership with Peter and Sharon McIntyre, who run a deer farm near Gore and now through the company’s own farm Aratiatia, in the North Island’s central plateau. “While covid has meant more

challenging market conditions to promote deer milk in the short term, the reopening of the world means Pāmu Deer Milk can once again make its way back on the world stage, and this win is an incredible boost to that,” Leslie said. The Doe Nutrition innovation received a highly commended rating at last night’s awards, making it a doubly successful occasion for the company.

Keep an eye out The latest issue of Dairy Farmer will hit letterboxes on July 4. Our On Farm this month features a Taranaki farmer who milks less than 30 Jersey cows throughout the year that set breed production records. We also catch up with the Dairy Industry Awards Share Farmer of the Year on his farm in Canterbury.

REPRESENT: Chief executive Mark Leslie says all New Zealanders, as shareholders in Pāmu, should be really proud of this win.

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22/06/22 1:27 PM

News

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

MPI warning on DIRA changes was too low, farmers would leave and vice versa. But the 2020 amendment to THE Ministry for Primary DIRA removed the requirement Industries (MPI) says Agriculture for Fonterra to accept all the milk Minister Damien O’Connor offered to it from June 2023, which is placing greater weight on will impose a substantial risk on supporting Fonterra’s commercial farmers who might want to leave objectives than he should. to back a new venture. Instead, the Government If that new venture failed, a should return to the original farmer could not be sure Fonterra intent behind the Dairy Industry would allow them to return. Restructuring Act 2001 (DIRA), O’Connor is now proposing to which aimed to mitigate the remove most of the remaining harmful effects of allowing constraints on Fonterra’s market Fonterra a near monopoly, MPI power by agreeing to back the said in its regulatory impact restructuring. statement on proposed law He wants to increase the changes. In 2001, Fonterra had 96% of the Government appointees on the panel setting the company’s market for raw milk and, although farmgate milk price from one to Fonterra’s milk volumes have two and for the panel’s chair to be grown 39% since then, its market independent to try to ensure a fair share is now 79%. milk price. As it was originally framed, He also wants a market maker DIRA allowed farmers to exit to support the price of Fonterra Fonterra without penalty and shares, which trade on the NZX. required Fonterra to accept all the In contrast to O’Connor’s milk offered to it. preferred approach, which “These ‘open entry and exit’ cabinet has approved, “MPI’s requirements were designed to recommended approach equally ensure that Fonterra could not weighs all of the assessment ‘lock in’ or ‘lock out’ farmers’ milk criteria”, it said, although it added supply,” MPI said. that “the appropriate weighting That meant Fonterra could for the criteria is a matter of influence its milk supply volumes judgement”. only through milk price signals to MPI’s preferred outcome would farmers – if its farmgate milk price take into account the adverse impact on milk pricing, competition, efficiency and innovation across the wider dairy industry. AWDT Next Level 2022 Fonterra Food & fibre women – are you ready to lead has asked the change for the people and places you care Government to about? amend DIRA To step-up and make change happen, join to support its our friends @AgriWomensDevelopmentTrust restructuring from requiring farmers on Next Level - a six-month leadership and to own one share governance programme for developing the for every kilo of confidence, skills and connections to inspire milk solids they others. supply it with Connect with your cohort of aspiring food to one share for & fibre leaders, grow through individual every three kilos executive coaching, build a leader mindset supplied. and set your action plan to make change Fonterra wants happen. to make it cheaper Learn more and register at www.awdt.org.nz/ for new farmers to next-level/ join Fonterra. Next Level will run in: Strictly Wairarapa speaking, 27, 28, 29 September Fonterra could Online go ahead with 28, 29 July and 19, 20 October its restructuring Christchurch without a DIRA 7, 8, 9 June and 1, 2, 3 November change, but that Change happens. Are you ready for it? would expose it to potential litigation. Just launched by our friends @ That’s because AgriWomensDevelopmentTrust, ‘Know your DIRA includes Mindset. Do what Matters’ is a short, practical provisions training programme on managing multiple requiring the price pressures, calmly and clearly. of Fonterra shares Designed specifically for rural people, it’s to reflect the fair about learning to press pause under stress, value of milk – focus on what matters most and take positive those provisions action in your life. were instead If you’re looking for the tools, skills and of any direct connections to navigate change, register at regulation of the https://www.awdt.org.nz/programmes/knowprice of milk. your-mindset-do-what-matters/ MPI said the restructuring Should your event be listed here? would support Phone 0800 85 25 80 Fonterra’s or email adcopy@globalhq.co.nz commercial BusinessDesk

LK0109662©

Agrievents

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WEIGHING IT UP: MPI said the restructuring would support Fonterra’s commercial objectives and help it deal with flat or declining milk production, but the costs would fall on its farmer-shareholders – 85% voted in favour of the restructuring in December.

objectives and help it deal with flat or declining milk production, but the costs would fall on its farmershareholders – 85% voted in favour of the restructuring in December. “Collectively, Fonterra’s farmershareholders have accepted a balance sheet hit of around $2.5 billion and imposed an additional $160 million value loss on unitholders,” MPI said. At Fonterra’s current share price of $2.70, the collective loss to farmers is now about $3b. MPI said that over time, the restructuring could reduce the contestability for farmers’ milk, weaken incentives for Fonterra to drive long-term performance, innovation, sustainability and value creation for the wider dairy industry, as well as reducing the ability of other processors to compete with Fonterra. “It could also have negative flow-on impacts on Fonterra’s future financial resilience, confidence in NZ capital markets and the cost of dairy products for NZ consumers,” MPI said. “A high-performing Fonterra is … central to a well-functioning dairy industry and the wider NZ economy,” MPI said. What it didn’t say is that Fonterra has not been “highperforming”. A September 2018 report by TDB Advisory, which has been advising MPI, said that “there is little evidence” that the $310m of cost savings, productivity improvements and synergies anticipated when Fonterra was formed in 2001 had been delivered. Fonterra was supposed to have grown annual revenue at a compound rate of 15% but had actually recorded compound annual revenue growth of less than 2.5%, TDB found. Fonterra has told MPI that if its milk supply declined, its assetstranding costs could lead to a sixto-13 cent per kilo of milk solids

fall in its farmgate milk price and potentially necessitate the closure of 12-to-18 of its 28 processing sites. MPI said Fonterra hadn’t provided it with the data, analysis, or modelling assumptions underpinning its scenarios and noted such assessments are “fraught with difficulties”, essentially because they involve predicting the future. If the restructuring proceeds, Fonterra shares could trade at discounts of anywhere between 20% and 60% compared with where they were trading before the restructuring was announced, it said. MPI noted that Fonterra shares make up between 10% and 15% of a dairy farm’s assets and the average farmer supplies 150,000 kilos of milk solids a year to Fonterra. Selling the 150,000 shares currently required to back that production would mean the average farmer “could forgo between $135,000 and $400,000, depending on whether the price discount is as little as 20%, as Fonterra expects, or as large as 60%, as some analysts are predicting”. MPI said the impact would be most significant for heavily indebted farms. It would also produce a barrier to farmers switching to other processors. “Fonterra’s undervalued share price would only need to deter as few as 50 average farmers or 20 larger farmers from exiting to be sufficient for Fonterra to reduce the competitive pressure it might otherwise face from other processors or alternative land uses,” MPI said. Fonterra could end up growing its milk supply “not because of its improved performance but because of its structural market design for shares”. Over time, that could mean

higher than economically efficient processing volumes and lead to Fonterra avoiding, delaying or deferring decommissioning or reconfiguring its processing capacity. “This may take pressure off management to continuously seek to optimise the co-operatives size and product mix, drive cost efficiencies and invest in innovation and value creation,” it said. “Over time, this could work to the detriment of Fonterra’s farmershareholders.”

It could also have negative flow-on impacts on Fonterra’s future financial resilience, confidence in NZ capital markets and the cost of dairy products for NZ consumers. Ministry for Primary Industries MPI said the price of Fonterra shares “would be materially divorced from the underlying value of Fonterra’s future returns from its value-added activities”, reducing the transparency of its performance. The depressed share price would also artificially inflate the dividend yield and “could provide sufficient room for Fonterra to shift some of its capital returns from the dividend to the milk price”. The current DIRA provisions “are not equipped” to deal with this. “Distorted pricing may also deter entry by new, potential more innovative processors.”

22/06/22 1:27 PM

AginED Ag ED

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

Volume 111 I June 27th, 2022 I email: agined@globalHQ.co.nz I www.farmersweekly.co.nz/agined Are you a parent or teacher and want to receive AginED every week directly to your email inbox? Send us an email to sign up at agined@globalhq.co.nz

FILL YA BOOTS:

HELLO HAPPY HUNTERS!

Firearms and looking out for your mates - while you stay safe!

Rule # 3

We all get excited about the prospect of going for a hunt and getting that ‘big one’ but the trouble with excitement is that it can mean we forget to take notice of the things around us as we are hunting, that keep us safe. Rule # 3 highlights the importance of not being too ‘overexcited’ when hunting with a firearm and there is a catch - something that is a mechanical part of our semi-automatic firearms can be relied on too greatly by people when they are out and about. Send in what Rule # 3 is and the information that keeps you and your hunting friends safe PLUS a personal account of how you use rule # 3 to stay safe with the extra information about semi-automatic shotguns and rifles to agined@globalhq.co.nz. This will put you in the draw to WIN a brand new pair of Burris binoculars valued at over $600 thanks to Anna and James from Rivers to Ranges in Rangiora! Next time we will cover Rule # 4. Each time you send in your answers it gives you a higher chance of winning!

NZ BULL SALE RESULTS 2022

Click here to read the article on Silverstream Sandown, a yearling bull who sold for a record $50,000. https://www.farmersweekly. co.nz/carried-away-by-charolais/ 1

What breed is Silverstream Sandown?

2 What stud was he bred at and who was his sire? 3 The buyer discusses the rise in popularity of Charolais in the dairy industry. Why do you think it is becoming more important for dairy farmers to use quality beef bulls over their dairy cows?

Why is it important that NZ farmers don’t use hormonal growth promotants?

Breed

NZ Average

Top price

Angus

8,606

92,000

Charolais

7,054

50,000

Hereford

7,306

47,000

South Devon

6,719

16,000

Simmental

7,833

27,000

Shorthorn

5,419

14,000

This table shows the NZ average and top price for a selection of breeds from bull sale data collected by AgriHQ so far this season. 1

What breed has achieved the highest top price?

2 What breed has achieved the highest average price?

STRETCH YOURSELF: 1

List the breeds in order from the highest average value to the lowest average value.

2 Compare the highest and lowest value and do some research. Why might the breed with the highest average be more desirable than the breed with the lowest average value? 3 If you had to purchase a bull, which breed would you choose and why?

Good luck and happy hunting! Harriet :)

Harriet

www.makingmeatbetter.nz

WHY DO WE PREGNANCY SCAN EWES? Head to https://beeflambnz. com/news-views/making-bestuse-ewe-pregnancy-scanningdata?fbclid=IwAR2gJyR-Pd5JQc0i5w TIQZrOQZmb9FtHP4jzImk7iziSbaC89 UUKZmVcHr8 to read about why scanning is such a useful tool for farmers. Then see if you can answer the following questions: 1

Massey University Professor Paul Kenyon states that pregnancy scanning data can be used to maximise ewe and lamb survival. Can you outline how scanning can do this?

2 When is the most important time to make sure that ewes are fed correctly? 3 How does scanning allow a better understanding of when the crucial window of feeding time is for a range of ewes? 4 What is set-stocking? What are the benefits of setstocked paddocks? 5 How does set-stocked paddocks allow for better survival data analysis at tailing?

A United States plastic surgeon has carried out research using wool sourced from New Zealand sheep to help with dermatological treatments, including the management of wounds and severe burns. Follow this link to read the full article: https://www.farmersweekly.co.nz/woolsupplement-helps-heal-wounds/?fbclid=Iw AR24MHao7XrS5rtUqF8IVRppeYC8ElS1PJXgJ 8tLfOCIMesLmWWvh3ItXB8 1

To listen to the podcast about the use of ewe pregnancy diagnosis (scanning) information, with Professor Paul Kenyon from Massey University follow this link: https://beeflambnz.com/knowledgehub/podcast/use-ewe-pregnancydiagnosis-scanning-informationprofessor-paul-kenyon-massey

How has keratin been used in the past for topical wound healing?

2 With the new research, how could keratin be used in the future? 3 What is a scleroprotein? 4 Why do you think that coarse wool yields higher levels of keratin that fine wool? 5 Do some research on what types of products currently contain keratin. Can you name five products that contain keratin?

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22/06/22 1:27 PM

28 NMaker

Newsmaker

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Top-notch beef, zero carbon Ben Ensor knew he had indigenous vegetation that sequestered carbon that was not recognised, so to have the opportunity to produce beef for a net carbon zero by nature programme is an exciting venture. He talked with Annette Scott.

EW Zealandgrown beef with a net carbon zero footprint has hit the supermarket shelves in the United States and Ben Ensor’s Angus beef is part of the programme. The launch last month of the Silver Fern Farms (SFF) USDAapproved Net Carbon Zero by Nature, marks the culmination of a two-year pilot to prove contributing farms sequester more carbon than they emit. The partnership is seen as a key part of future-proofing naturepositive food production. Ensor, who runs a sheep and beef farming operation at Cheviot in North Canterbury, says aligning partnerships between consumers and farmers through products like Net Carbon Zero beef are important in addressing collective climate and environmental challenges. Ensor and his wife Jane have been farming the family farm since 2008. The hill country breeding operation, Jedburgh, takes in 1300 hectares of mainly hill country complemented by Willow Grove, a 120ha flat irrigated property on the south bank of the Waiau River. The Ensors run 300 Angus cows plus replacement heifers alongside a 4500-breeding ewe flock. Calves are normally weaned to the finishing block in February with the yearling cattle wintered on fodder beet, finished and off the property by the following February. In recent years Ensor has transitioned the sheep flock from

PERFECT MATCH: As a sheep and beef farmer with areas of indigenous vegetation sequestering carbon, Ben Ensor realised the opportunity to respond to consumer demand for carbon neutral food. Photos: Annette Scott

50-50 Romney and half-bred to the quarter-bred to capture the better returns in the fine-wool market. “The biggest challenge is the weather but that’s what I really enjoy – making a system that’s adaptable enough to cope both climatically and economically with ever-changing challenges. The Ensors invested in irrigation on their 120ha finishing block. “That’s been a big investment but a good investment. “It’s given us certainty in our planning and guarantee of what we can do and what we can produce and with that we have been able to build relationships with meat companies and contract supply.” With a lot of good heavy soil and a number of spring-fed creeks, Ensor is acutely mindful of the farm’s environmental impact. “We have actually got a very light environmental footprint and water quality coming out of

here is very, very good. He has been instrumental in leading the way to achieve practical and sensible environmental planning regimes. “The environment is always a big part of what we do on farm but the wider, environmental aspect with new regulations has been a big part of what I have been doing off-farm too.” In 2016 he led the establishment of the Hurunui District Landcare Group (HDLG), a collective of 300 farmers established to demonstrate and promote good farming practice. “The HDLG employs three full time catchment farm advisers that work alongside our members to assist them with their environmental management, as well as helping them to deal with the tsunami of new regulation coming their way.” Ensor was well aware his hill country property had significant areas of indigenous vegetation,

UNITS: The Ensors run 300 Angus cows plus replacement heifers alongside a 4500-breeding ewe flock.

26-29 FW 27-06.indd 28

which he knew sequestered carbon, but it was not being recognised. He was also aware that more and more consumers are demanding assurances that environmental and social concerns, such as the biodiversity linked to Net Carbon Zero project, are addressed. As a sheep and beef farmer with areas of indigenous vegetation sequestering carbon, Ensor realised the opportunity to respond to consumer demand for carbon neutral food. “This carbon zero scheme gives recognition in the native regeneration we have that is hard to get recognition for or a return from. “In our higher hill country we have got quite a bit of regeneration fenced off so it is nice to get both recognition and a return for the action we are taking. “Returns for us is being able to sell carbon credits from regeneration into the scheme rather than the premium on the beef itself, that is where the value is in it for farmers. “SFF have processes in place to measure vegetation through remote sensing so for us it’s continuing management practices we already have in place. “It has allowed us to be recognised for a class of vegetation that didn’t previously have a value,” Ensor said. While he supplies up to 200 prime Angus beef animals to SFF each year it is not clear on just how much of that is in the Net Carbon Zero programme. “However, it is really positive for the future to have a programme like this that is creating value at the consumer end. “It gives a lot of confidence in the industry when we can turn around and show a product is positive and we can put programmes like this in place. “It’s a good news story for all

sheep and beef farmers,” Ensor said. SFF chief executive Simon Limmer says the transition to a low carbon economy is an important opportunity to create new forms of value for NZ and position farmers as climate innovators.

The environment is always a big part of what we do on farm but the wider, environmental aspect with new regulations has been a big part of what I have been doing offfarm too. Ben Ensor Farmer “We have worked alongside a group of farmer suppliers from across the country to better understand their own carbon footprint and opportunities to optimise carbon stored on their farms.” The Net Carbon Zero beef programme incentivises farmers to invest in and maintain on-farm carbon sequestration including native and riparian planting. The product is fully certified and has USDA approval. “What is unique about the Net Carbon Zero beef is that the certification is achieved by what our farmers do on their own farms to balance out emissions rather than by simply purchasing carbon offsets as is the case for many other carbon zero products.” While the size of the premium payment is still to be calculated, it will be “meaningful,” Limmer said. SFF intends adding zero carbon lamb and venison later in the year.

22/06/22 1:55 PM

29 NThinking

New thinking

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Resisting the antibiotic bug Greater use of antibiotics in production animal systems has been attributed to the growth in antimicrobial resistance (AMR) globally. But until now little has been known about AMR in New Zealand farm systems, and whether grazing cows outdoors in a grass-fed system has any influence on its prevalence. Post-doctoral researcher Rose Collis has helped lift the level of that knowledge. She spoke to Richard Rennie.

HEN it came to studying just how prevalent AMR is on New Zealand dairy farms, Rose Collis took a “whole farm” approach to an issue most farmers may associate mainly with mastitis treatment and how well their cows respond to that treatment. “We knew from some good earlier work based off sales data that NZ’s use of antibiotics is relatively low and when you look at our dairy farms here, they typically use less than more intensive indoor systems like poultry or pig production.” Her work has proven particularly timely in light of a recent report released by the Prime Minister’s chief science advisor Professor Juliet Gerrard on this country’s AMR management strategy. This included a series of recommendations on both human and production animal use of antibiotics, identifying a number of holes and weaknesses in how the growing global risk was being managed here. The report recognised an advantage NZ has compared to some countries, with our relatively low AMR incidence, but also the risk that advantage is lost without better monitoring. While largely focused upon human health management issues, the report also pinpointed a need for better AMR surveillance in animal systems and a need for better information sharing across all sectors on AMR prevalence. Collis’ work involved collecting samples of effluent, faeces, soil and raw milk from two Manawatū

dairy units and applying some cutting-edge sampling techniques to try and identify the type and prevalence of AMR genes and resistant bacteria on the farms. Employing “shotgun” metagenomic sequencing enabled Collis to effectively scoop up complex samples and identify all the genetic material contained within that sample, regardless of what it was.

What we found was that the presence of AMR genes was low compared to overseas data. The original hypothesis that the free range, grass grazing outdoor environment does contribute to our lower AMR levels proved to be right. Rose Collis AgResearch As a method it provides scientists with the ability to literally take a deep dive into a population in remote or challenging environments, including ocean samples. “Once sampled we can sequence all the DNA contained within it and use comparative analysis from indices to look for AMR genes present.” This contrasts to a more conventional approach of taking

a culture sample and growing out bacteria to determine if they are AMR or not, although this process will also often be used alongside the shotgun sampling. “What we found was that the presence of AMR genes was low compared to overseas data. The original hypothesis that the free range, grass grazing outdoor environment does contribute to our lower AMR levels proved to be right.” She did find the most diverse range of those AMR genetics discovered were present in the effluent samples taken from farm effluent ponds, although still comparatively low. “Given the study ran over 15 months, we were also able to see if there were any variations across the farming year. While there was some increase in specific antibiotic resistant bacteria over summer, the numbers were still relatively low. “If anything, I would have been expecting a lift in AMR genes over calving-spring time.” Her thesis also earned her an audience with the Prime Minister during a recent visit and recognition at Massey, being put on the Dean’s list of exceptional theses. Now working with AgResearch’s Food System Integrity team, Collis is able to apply some of the skills and methods developed during her thesis to look at identifying the types of E coli that populate freshwater sources. “This next generation sequencing provides a longer ‘read’ of the genomic DNA, and with that more information on that particular genetic material.” From here she hopes the

RESISTANT: Rose Collis’s work determined that NZ dairy farms have a relatively low level of antimicrobial resistant bacteria.

technology will enable scientists to determine not only that a catchment is contaminated with E coli, but also the source, whether it be livestock, bird, or human. Her work has confirmed that NZ’s status as one of the three lowest users of antibiotics in livestock use globally translates to less AMR in the farm environment and has proved dairy farmers have another environmental benefit worth preserving.

Collis says the sector should also receive some recognition for the efforts it has made to preserve that low AMR status and respond to calls about careful antibiotic use. “The NZ Veterinary Association has supported the traffic light system to help vets in their antibiotic decision making, and farmers are using more alternative non-antibiotic preventatives in their dry cow therapy treatments.”

The glasshouse enterprise growing capsicums in Warkworth Southern Paprika is New Zealand’s largest single site grower of capsicums, with 26 hectares of sophisticated glasshouses producing almost 7 million kilograms per year. Watch the video now at youtube.com/OnFarmStory This episode was made possible with support from Rabobank On Farm Story

26-29 FW 27-06.indd 29

On Farm Story

22/06/22 1:28 PM

30 Editorial

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

EDITORIAL

A match made in the high country heaven

T’S not often that two problems can be solved with a single solution. North Canterbury sheep and beef farmer Ben Ensor saw a couple of challenges and met them both. The first concerned his emissions. He has a lot of native vegetation on the property that didn’t count towards balancing his emissions profile. The second issue was meeting the changes in consumer behaviour. There’s a segment of society worldwide that wants sustainably-grown food. Silver Fern Farms’ net carbon zero beef programme has gone a way towards solving both those issues. The native plantings help balance the carbon ledger, through the certification programme the processor offers. And, there’s a premium for the beef sold into it. There’s still a gap between what people say and what they’re willing to buy when it comes to sustainable food, for sure. With inflation running rampant around the world many shoppers are reassessing how their food budget is spent. Sometimes the contents of the trolley won’t live up to the ideals they hold. But inflation, hopefully, is transient. Sustainability is a longer-term commitment and it’s not just consumers who are catching on. Governments and trade blocs around the world are also making moves to account for the carbon load on the products they import. Then there are the banks, who will increasingly look at how their loan books are contributing to the warming climate. It’s a lot to confront, but farmers like Ensor are doing it simply by looking at their business, their land and the food that comes off it and adapting in a way that works for them. With processors identifying the product streams that will bring value back inside the farm gate, the argument about a lack of sustainable returns for sustainable food is losing strength.

Bryan Gibson

LETTERS

Who’s driving this emissions bus? IN THE recent joint statement by Beef + Lamb New Zealand and the Meat Industry Association Agriculture emissions pricing recommendations released there is a link to B&LNZ modelling. I note to my dismay that without sequestration rule changes by 2030, 33% of class 3 farmers (North Island hill 6-10su/ha) such as myself, will suffer a greater than 30% reduction in profits as a result. Apparently, this haircut is required to offset other sectors of industry where emissions continue to grow unabated and other countries where farmers are not subject to such carbon taxes. Why were such costings not released to farmers during HWEN farmer consultations? To release them immediately

after the farmer consultation had finished is either negligent or deceptive. How can we as farmers support our industry bodies in making good recommendations without reviewing the likely costs of those decisions in advance? Why is our rural media not demanding such data? One can only imagine the reception a stevedore union delegate would receive if he told members “the Government wants us to take a massive wage cut to offset wage increases in another sector”. “We are going to argue for a smaller cut, we can’t tell you how much it will be but we want your support anyway.” Port workers would simply not accept such behavior from their union officials – so why do we?

Furthermore, we are constantly fed the tired old line by red meat industry leaders and farming lobby groups that our overseas customers are demanding these changes (taxes) – yet they never provide us with the actual consumer market research studies to support their claims. If it really were the case, and given we are the only country in the world inflicting such heinous carbon taxes on farmers, then surely our meat products would subsequently attract some significant premiums, which would gradually be reflected in increases to the revenue side of the aforementioned model? Where is this premium shown in the modelling? Unsurprisingly, it is nowhere to be seen. My message to our industry leaders is simple.

Stop telling us to get on the bus when the ticket price is too high (and gets higher each year), the bus route is unclear (and may change at any time at the whim of the driver – our Government) and our global competitors are still traveling by car rather than bus. If you really want to represent farmers (as opposed to representing the government to farmers) – sort the bus out. It appears our red meat industry is very good at scoring own goals but is having great difficulty in front-footing a more equitable process that truly positions New Zealand farmers for what we are – world-class, carbon-efficient producers of the finest grassfed red meat. Jason Barrier Waerenga

Letterof theWeek EDITOR Bryan Gibson 06 323 1519 bryan.gibson@globalhq.co.nz EDITORIAL Carmelita Mentor-Fredericks editorial@globalhq.co.nz Neal Wallace 03 474 9240 neal.wallace@globalhq.co.nz Annette Scott 021 908 400 annette.scott@globalhq.co.nz Hugh Stringleman 09 432 8594 hugh.stringleman@globalhq.co.nz Gerald Piddock 027 486 8346 gerald.piddock@globalhq.co.nz Richard Rennie 07 552 6176 richard.rennie@globalhq.co.nz Nigel Stirling 021 136 5570 nigel.g.stirling@gmail.com

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22/06/22 1:28 PM

Pulpit 31

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Nurture community, as well as environment Katherine Wright

OR rural people, some of the most significant relationships we can have are with our neighbours and community services. In a rural context, those neighbours and localities may be a stones-throw away, or a few kilometres down the road. The issue of farmland being bought up large by overseas corporate behemoths for forestry – non-native monocultural trees such as pine and gum – are threatening our rural communities. A classic example of public issues causing personal problems. The new neighbours were quiet. No machinery hummed, no animals to be seen, apart from the odd pest rabbit or possum. They just stood there, kept to themselves, did not converse with the local folk. They all looked the same and grew tall very quickly. Unfriendly types. Didn’t have much interest in using community services either – schools, sports clubs, or even spending in the scattered few local stores. More neighbours like these ones moved into the area and the school rolls shrunk even more. They are trees. Lots and lots of trees. Who can blame them really? Our Government has ensured that neighbours like these have slotted in easily, subsidising carbon credits and allowing virtually unlimited access to carbon farming for international buyers – as long as it’s trees. The money they offer for such farms is huge – more than most Kiwis could afford, especially the younger generation wanting to enter farming. This fact alone predicts that less of the younger generation will enter farming simply because of unaffordability – they cannot compete with the money the forestry giants can afford. This will equate to enormous consequences for the future of farming in New Zealand – not just the lifestyle, but our exports, our GDP, food production and sustaining our many rural communities all over the country. For them, farming is being seen as a “sunset industry”. For older farmers, the sense of helplessness is palpable. Their life’s work, and perhaps several generations of their family’s work, could potentially be erased and replaced with nameless, faceless green spread within as little as a year.

30-34 FW 27-06.indd 31

The

Pulpit

Knowing that selling up for forestry is a double-edged sword where they are paid for their land, but never again will its landscape be seen as what it is now. We can’t go back from this. I am reluctant to examine further the Government’s role of forestry conversion – there are already experts doing a great job of this like Dame Anne Salmond. I am a mental health professional and a rural person and I am deeply concerned at the mental health implications of the insidious occupation and attainment of productive farmland for foreign-owned forestry.

Neighbours are disappearing and loneliness is being felt by those whose lives are intertwined with the land, in their livelihoods and their everyday interactions. I have been spurred to write this as it has been a common finding in my current master’s research on rural mental health – the loss of people, business, services, schools, halls, and clubs is affecting people right now, and this shone through as being a salient factor in our increasingly poor mental health. Farmland covered in trees that all look the same is creeping all over this country, dark blots on the landscape with little or no open spaces. For me this is most salient in areas near where I live, rural Southland and Otago, but it is nationwide. Neighbours are disappearing and loneliness is being felt by

TREES DON’T TALK: Southland counsellor Kathry Wright says the erosion of rural communities due to forestation is creating an environment where social connections are being lost.

those whose lives are intertwined with the land, in their livelihoods and their everyday interactions. There is a true sense of loss of the future of farming and of being part of a disappearing community – no hope of sustaining what has essentially run in the veins of people who farm the land – what was, will never again be. Neighbours get it. They understand the isolation. They often take care of each other in ways that town-folk don’t. The sharing of machinery, pooled labour through baleage or silage production, tailing, weaning, right through to childcare, shared meals and gatherings, or car-pooling to town. Camaraderie. As human beings, we need this social interaction like we need oxygen. The erosion of rural communities due to forestation is creating an environment where social connections are being lost, and this will unquestionably affect the mental health of the humans that remain in those areas. Loneliness has become an epidemic in Western society. Loneliness causes a special type of suffering that is triggered by high cortisol levels, which in turn makes it much more likely that the sufferer will catch viruses more easily, suffer from depression and anxiety,

contribute to heightened cynicism and a lack of selfesteem. It creeps up on you and the cruel thing about loneliness is that the more you are away from other humans – intentionally or not – the harder it will be for you to re-join society. The antidote to loneliness is social connection. This may look like simply interacting with your neighbours, or it may be joining the squash club, your local Young Farmers, Lions or Rotary, school PTA or board of trustees, rugby, or netball club, or whatever is offered in your community. The loss of families and individuals from farms due to corporate forestation is threatening the existence of all of these and more. Clubs are disbanding, school rolls are declining, town halls are being abandoned and less is being spent at small local stores. This is having a devastating effect on how rural people relate and connect to each other, and it will continue to ripple out until something changes. It appears that these large pockets of locked-up farmlandinto-forestry are causing an issue that the Government is not hearing or not understanding. Displaced sheep and beef farmers, workers and their families are becoming anomic in both their

personal and professional roles, and the support services that would traditionally be in place to assist them also appear to be disbanding. How can this matter be denied or ignored for much longer? As far as I can ascertain, large scale forestry conversion is a false economy in many ways, not least because the cost of poor mental health caused by sociological factors such as the denigration of productive farmland will end up costing our healthcare sector dearly in mental health care. The problem seems to be snowballing without any attempt to stymie the flow. Small rural localities are being wiped off the map with an enormous social cost. I am urging the Government to investigate this matter and to look beyond profits and environmental kudos – it is always the people that must come first.

Who am I? Kathryn Wright is a Southland-based counsellor specialising in working with rural people. She is married to a Te Anau farmer.

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

22/06/22 1:28 PM

32 Opinion

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

High country lettuce anyone? Alternative View

Alan Emerson

THE hue and cry over He Waka Eke Noa (HWEN) has been considerable, which I suppose is to be expected. In many cases ignorance is bliss and the amount of ignorance attached to much of the criticism has been massive. What irritates me is the media blindingly accepting the criticism of the uninformed. For example, we’ve heard the rabid voices of Greenpeace and others talking about factory farming in NZ. Much of the mainstream media accepts that ridiculous mantra and runs it unquestionably. If we were debating the issue in a court of law we would rely on the definition provided by the Oxford Dictionary. That dictionary describes factory farming as “a system of rearing livestock using highly intensive methods by which animals are confined indoors under strictly controlled conditions”. That doesn’t happen in New Zealand and any media reporting that is both lazy and ill-informed. We don’t have factory farming in NZ. We ethically produce grassfed animal products for the world markets.

Our management practices are second to none, we survive totally on a grass-fed system and our animal welfare is exemplary by any world standard. In addition our greenhouse gas footprint per unit of production is by far the lowest in the world, which begs the question as to why the media is so anti-farming? Correspondingly, not a lot of coverage was given to the fact that NZ’s food and fibre exports raised a record $52.2 billion, up 10% on the previous year. That’s despite covid-19, punitive Government regulations, a war in Europe and the massive disruption of supply chains. What hasn’t been in the media is that we’ve achieved that with a reduction of 13% of the productive land. Food and fibre production is the only show in town. Not that you’d read about it. The barriers to that continuing are massive. For a start we have Government regulation. For example, the Government’s National Policy Statement on Biodiversity has been described by Beef + Lamb as “badly timed and ill-considered”. I’d agree. Federated Farmers considered it “pious and under-funded”. Again, I’d agree but why would you? The bottom-line issue is that currently farming is all we have. It’s got us through the tumultuous past three years and it is the country’s main game. The borders are open, the tourism sector can’t get cheap

labour to survive and their carbon footprint is considerable. We should be encouraged, not leg-roped by ridiculous legislation. My angst was exacerbated by a media report telling me that “global veganism is imperative for the survival of humanity”. That was according to Nobel Laureates, 14 cities and 40,000 individuals. I’d respectfully suggest that with a global population of eight billion people, 40,000 individuals were statistically insignificant. They didn’t say who the Nobel Laureates or cities were but it wouldn’t have been Eketahuna. They’re more sensible in Eke. The quotation was from an IPCC expert reviewer, one Dr Peter Carter. Like you, I have a problem with that. For a start on our property you may be able to cultivate four or five hectares but I’d need to purchase a four-wheel drive tractor, get some irrigation and apply bucket loads of fertiliser. That aside, this Dr Carter told me that “a global climate catastrophe could not be averted without the elimination of meat and dairy from our diets”. That was followed by Vegan Society Aotearoa president Claire Insley,telling me that “diet is something you can change really easily, really quickly”. “You don’t need any new technology for it, we don’t need to get a silver wand or any magic to make it happen.” She added “far more people can be fed with plants per acre than by animal farming”. I hadn’t figured you could grow

REALLY? People advocating for the world’s population to go vegan haven’t done their homework on farming systems, Alan Emerson says.

lettuce on our coastal Wairarapa hill country or mung beans on the Maniototo. My respectful opinion is that she wouldn’t have a clue. Anyway, this IPCC expert reviewer Dr Carter comes from British Columbia, he is a doctor of medicine. He’s integral in the Climate Change Emergency Forum that was intimately involved in the talkfests that were COP 25 and 26. He has a highly qualified group of colleagues with degrees in engineering, physics, climatology, English literature, psychology, structural engineering, library and information and adult education. I can only assume that the qualifications for an IPCC expert reviewer are distinctly negotiable.

What I find encouraging is that our sector can survive and prosper under some massive headwinds. We continue to produce for the good of NZ when other sectors of the economy are falling over. We have right on our side when it comes to ethical food production, yet reading and listening to the mainstream media you’d think we were raping and pillaging the planet a little like the Mongols of old. There’s no acknowledgement of us saving the NZ economy and with it our lifestyle.

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

Staring into the eyes of the chief From the Ridge

Steve Wyn-Harris

AS A keen amateur star gazer, I’ve been a supporter over the years of the recognition of Matariki in some form so I was pleased when it was recognised as a public holiday, which we have just seen observed on Friday. I would have been content if Queen’s Birthday had been dropped in its place but for now, it seems that particular legacy of our past remains. Anything that reminds us to look up and marvel at the simple beauty in the heavens above which far exceeds anything seen peering at a device in your hand must be a good thing. Let’s start with the star cluster itself. It is 444 light years from us. Relatively close in universe terms. Looking at any star is a lesson that space and time are

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interrelated. The light from these stars was emitted in 1578, when Francis Drake was crossing the Pacific on his planet circumnavigation and Europeans were in the process of establishing colonies in the Americas. Many cultures report seeing seven stars but with particularly good eyesight in dark skies apparently there are up to fourteen visible objects. These are large hot blue stars but there are at least 1000 other stars in this cluster. All are relatively young at 100 million years old compared to our own middle-aged sun which is four and a half billion years old. What I hadn’t realised until recently is the significance this star cluster has had for human cultures all over the world for many thousands of years. This is because of its high visibility and that it is on the ecliptic, which is the solar system’s planetary plane. I knew about the Māori, Greek and Japanese connections but stories like Matariki, Pleiades and Subaru are across almost every culture in both hemispheres. The word Matariki or similar is found in Polynesian languages right across the Pacific.

In many of the Polynesian languages, Matariki translates into the “eyes of the god or the chief”. Those early intrepid Polynesian navigators seven hundred years ago who became Māori, brought the stories and significance of Matariki with them.

Anything that reminds us to look up and marvel at the simple beauty in the heavens above which far exceeds anything seen peering at a device in your hand must be a good thing.

When the cluster appears above the horizon, the Hawaiians celebrate the god of agriculture and fertility, the Tongans welcome the new year as do those on the far-flung Rapa Nui (Easter Island) who also acknowledge the end of the fishing season in April when the cluster sets. Australian first nations people have songlines of these seven sisters being pursued by a man

that we know as Orion the hunter. Many Indigenous American cultures also mark the cluster’s rising with the beginning of the new year and a lot also have stories along the seven-sister narrative. Meanwhile, on the other side of the planet, the cultural significance of this star cluster abounds. The Greeks, like many other European cultures, also saw them as seven sisters and the ancient Celts during the Bronze Age, like Māori, associated the cluster with mourning and the passing of loved ones. In 1999, a bronze disc inlaid with gold was unearthed in Germany. It is now known as the Nebra sky disc as it depicts the sun, moon and a cluster of stars that are likely to be Matariki. Its Bronze Age dating makes it 3500 years old and is called one of the most important archaeological finds of the twentieth century. In recent times, archaeologists have been taking a closer look at many of the ancient cave paintings found throughout Europe. They have noted that not only are animals and humans depicted in these paintings by our ancient

ancestors, but they have also added astronomical information into their cave art. The drawings show that humans understood the heavens and how that worked up to thirty thousand years before the Chinese and Greeks were working along similar lines. It appears they were recording comet strikes, working out the equinoxes and keeping track of time and the seasons through the annual movement of the stars. The Lascaux Cave in France was discovered by a young boy in 1940. There are thousands of paintings covering the cave walls dating back seventeen thousand years ago. One is of the constellation Taurus depicted as a bull which is how we still see it. In front of the bull’s nose are the stars of Orion’s belt and above his shoulder can clearly be seen the Pleiades or Matariki. This new festival we have is not so new it seems and connects us not just with Pacific cultures but with cultures all over the world

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

22/06/22 1:29 PM

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Farming in a better place than most Straight Talking

Cameron Bagrie

FEW look forward to the prospect of a recession, but one looks around the corner. Economic expansions do not typically die of old age. They are driven by an exogenous shock, a massive build-up in imbalances that require a reset, or they are slaughtered by policymakers. This one looks a combination of all three. Central banks are on the inflation warpath. Interest rates are rising rapidly. Asset prices are in retreat. Farmers can be less downbeat about the year ahead than most. There are a number of challenges for the rural sector to navigate over the coming years, including environmental and climate change issues, finding and retaining employees, logistics, and an over reliance on China. Historically, global recessions have led to large falls in commodity prices. We now have an inflationary shock not a deflationary one. But stepping back and putting

on my Highlanders hat and a glass that is half full, here are some positives to think about. Higher interest rates expose leverage. Households have been leveraging up, with credit growth outstripping income growth. Household debt has risen $85 billion (35%) in the past four years. If your first mortgage was a oneyear rate around 2.2% a year ago, your refixed mortgage is likely to be above 5%. Conversely, agriculture debt is unchanged, and dairy debt has fallen $2.5b in the past two years. Rural balance sheets have improved, putting farmers on a better footing to weather higher interest rates. The low-risk asset in term of where banks have been lending (housing) is now a higher risk asset. Auckland house prices are already down 11% from their peak. For decades, New Zealanders have over-invested in housing and under-invested in productive assets. Is this the housing downturn that forces a rethink? The Nasdaq has fallen 35% since the start of the year. Crypto currencies are being slammed. Assets purchased on prospects of making money are out of favour with the era of cheap money at an end. Inflation supports physical assets not non-tangible ones.

Show me the money is back in favour along with cashflow. Farmers are generating cashflow. Currencies are two sided coins and the United States dollar has soared as inflation pressures intensifies in the USA, forcing the US Federal Reserve to raise interest rates. The NZD/USD dollar started 2022 above 0.68. At the time of writing, it was below 0.64. A lower NZD is adding to the cost of inputs such as fuel, but the most important line is revenue, and a lower currency boosts it. Inflation is household’s key concern according to the IPSOS Issues Monitor. Inflation is a thief that is stealing people’s money and hitting living standards. Law and order is now a top five issue too. Voters are worried. The 2023 election is a genuine two horse race. Irrespective of who wins the next election, it is clear the path we are on is not sustainable and any incoming government needs a plan. Inflation is rampant. Non-covid government spending is projected to rise 13.9% in the coming year. We have poor infrastructure, declining educational achievement and rising crime. The current account deficit (our national cheque-book with the

A BETTER PLACE: Cameron Bagrie says while there will be some pain to come, the farming sector is in better shape because it has been showing restraint and not over-indulged. rest of the world) has blown out to $23b. We need real leaders with vision and an economic plan, not just politicians who promise more spending or tax cuts. Those are just recipes for continued inflation. I am not in favour of tax cuts. I want more invested in education and infrastructure. We need more talent across the whole political spectrum. Interest rates trended lower for 30 years. Each economic downturn resulted in even lower interest rates and monetary policy stimulus. Central banks had investors back. Absent inflation, central banks poured more money onto an asset price fire and dampening the downside of the economic cycle, implicitly giving investors a backstop. Not anymore. The backstop has been removed. The era termed the “great moderation” – low inflation and

dampened economic volatility – is over. Welcome to the old normal of having to take real risk to make real money. That is an environment where the strong and good prosper and possums get caught in the headlights. The economic party is over and some who have over-indulged will have sore heads as rising interest rates bite. Lots of property developers and construction firms will go bust. Some land transactions have been eye-watering but in aggregate the farming sector has been showing restraint and not over-indulged. Recession is a time of resets and getting back to basics. Many would say it is long overdue.

Your View Cameron Bagrie is the managing director of Bagrie Economics and a shareholder and director of Chaperon – helping businesses navigate banking. His views do not constitute advice.

Planning vital for managing costs

KNOWLEDGE: Rural adviser Amanda Burling says in volatile times it’s important to know your position and keep an eye on it, then you can make timely decisions.

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SOME dairy farmers are facing $70,000 to $100,000 in additional costs per 100,000 kilograms of milk solids this year. The 2022 forecast farmgate milk price of $9.60 has been revised back to $9.30 and escalating costs over the past six months have brought profits down. However, going through to the 2023 season (which has a mid-range forecast farmgate milk price of $9.00), dairy farmers are facing 12 months of high prices for fuel, feed, freight and fertiliser, not to mention rising interest rates and inflation – and no way of knowing how bad things might get. We haven’t seen the full impact of these costs yet because expenses have only been increasing significantly over the past six months. It’s still a really good milk payout, but we’re expecting those costs to come up anything from $0.70 to $1.00 per kg of production, so if your farm does 100,000 solids, that’s $70,000 to $100,000 of additional costs. It is going to hurt. It’s important that everyone affected gets to grips with their financial position, considering everything from their break-even milk prices to pasture and feed requirements. From there, it’s important to form a financial plan and establish goals for the year ahead.

It’s quite a volatile environment so our approach to that is going to be, know your position and keep an eye on it, and then you can make timely decisions. Now, when it’s not as busy on the farm, is a prime time to be nailing down a forecast for the year. Instead of thinking at the end of the season, “we haven’t done very well”, you can assess every couple of months and go, “right we’re not tracking where we want to be – what can we do?”

It’s important that everyone affected gets to grips with their financial position, considering everything from their breakeven milk prices to pasture and feed requirements.

Other farming sectors are facing the same cost increases, while those in the agricultural and horticultural industries are also dealing with labour shortages. It’s not necessarily just labour shortages but the pressure to pay a really good wage to secure your people, or at least provide decent

housing, otherwise you’re generally expecting people to travel and they’re not going to travel if the fuel costs too much. If you’re in agri-business, budgeting may not be a top priority – or maybe you track the business’s performance in your head. But covid-19, the war in Ukraine, increased interest rates, rising inflation and other instabilities have made it doubly important to know your financial position and have an up-to-date forecast. For example, an increased interest rate of 2% might double your interest bill and it’s got the potential to unravel your business, so you’ve got to take pre-emptive steps to avoid that. There are software programmes that can provide an accurate and up-todate view of your current position. You create your forecast at the start of the year and as you update it every couple of months (in line with GST works well), the software overwrites your previous forecast with actual data, so you’ll always have a current forecast closing position. The key thing is to use the winter season to keep on top of forecasting and build good habits for the future.

Who am I?

Amanda Burling is a rural adviser at Baker Tilly Staples Rodway Taranaki.

22/06/22 1:29 PM

34 OpED/World

Opinion

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Methane issue is far from settled The Braided Trail

Keith Woodford

IN LATE May, the eleven ruralindustry partners in He Waka Eke Noa (HWEN) reached internal compromises that were sufficient for all to sign-up to a joint greenhouse gas (GHG) document, which laid out the bones of how they think agriculture’s greenhouse gases should be priced. It went right down to the wire before Federated Farmers agreed to add their logo. Some of the other partners to the document were also less than happy, but the alternative of failing to come up with an agreement at all was even less palatable. Now it will be up to the Government, taking account of forthcoming advice from the Climate Change Commission (CCC), to make some calls as to the path forward. The Government does not have to accept the HWEN recommendations. Nor does it have to accept the advice of the CCC. But if it does not accept CCC advice, it is required by legislation to give reasons. My bet is that there will be robust discussions within Government. There are some within Government, including senior members, who understand very clearly that they must not destroy agriculture. But there are also elements within the Government who are fundamentally antagonistic to New Zealand agriculture as currently structured. One of the key reasons for antagonism towards New Zealand’s agriculture is serious misunderstanding as to the importance of primary industries in general, and pastoral agriculture in particular. This lack of understanding is fed by the crazy way that we measure the importance of the agricultural sector in New Zealand. This starts with the measure of GDP, whereby agriculture supposedly makes up in the order of 5% of the economy. This GDP measure is limited not only to what happens onfarm, ignoring everything before and past the farm gate, but it also includes only part of what happens on-farm. For example, shearers are not part of the sector. Nor is any contractor that comes onto the farm to plant a crop, make hay, make silage, or apply fertiliser. Nor are veterinarians or other farm-related professionals such as accountants. They are all part of the service sector outside agriculture. Given the way the statistics are published, the only way to

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understand the importance to New Zealand of the land-based primary industries is to look at exports. More than 80% of New Zealand’s merchandise exports come from the primary industries. According to MPIs latest SOPI document, the pastoral industries by themselves are expected to earn $33.8 billion of export income for the 2021-22 year just ending. Where else can those earnings come from to pay for all the imports? Unfortunately, most of the urban community does not understand that there are good ecological reasons why so much of New Zealand’s farming lands are pastoral. The combination of topography, soils and maritime climate determines that situation. If it were more profitable and ecologically sustainable to grow a lot more crops, then farmers would already be doing so. The bottom line arising from this situation is that New Zealand has responsibilities to itself, and also to others through the Paris Agreement, to protect food production. However, that does not let New Zealand off the hook from having to minimise greenhouse gas emissions whenever it can do so consistent with its food obligations. Returning to the HWEN issues, I expect there will be relative quiet in the media for the next few months. In part this will be because of the economic storm now descending upon the country and taking everyone’s attention. Beneath the surface, there will still be lots going on. It will only be a pregnant pause as the Government figures out how to proceed. Every Government member will be aware that the months are ticking by to the next election. It has long been clear that many people on both sides of the farm gate hold fixed positions as to how agriculture should or should not be charged for its emissions. However, few people have a genuine understanding across the issues. Given the fixed views, it is very hard to hold a rational discussion and deal with some of the misinformation. Here I will step back to try and put some structure around those issues. There are two gases of major concern within agricultural systems. One of these is methane which is produced in the rumen of cattle, sheep, deer and goats. This methane is burped out as a natural by-product of grass digestion. The other gas is nitrous oxide, formed in the soil from the dung and urine these animals excrete from their other end. Here I focus on methane, which gets most of the media attention. However, nitrous oxide is also important. That will have to wait for

NO FREE PASS: Keith Woodford says that although the atmospheric balance argument can be and should be an important part of the debate, there are also important counter arguments that need to be acknowledged as to why it does not let agriculture off the hook.

another article. When human society first started thinking seriously about greenhouse gas emissions some 30 years ago, there was an almost total focus on carbon dioxide. Accordingly, when the focus subsequently widened to include methane, it seemed convenient to express this in so-called units of carbon dioxide equivalence. We have been stuck with that convention ever since. The problem with carbon dioxide equivalence, written as CO2e, is that it is like trying to compare apples to oranges, or lemons to peaches. How many apples does it take to be equivalent to an orange? Do we mean by weight? Or by sugar content? Or by Vitamin C? Or some other unit? Each criterion provides a different answer. Well, it is the same when comparing methane to carbon dioxide. Except that the key question there is the time period of the comparison. This is because of the very different length of time that carbon dioxide and methane remain in the atmosphere. Should we use 20 years, 100 years or 500 years as the basis for comparison? The focus to be placed on methane within climate-change policy is very much dependant on the answer to that question. If we say that a 100-year time frame is important, then the warming caused by a tonne of methane is equivalent to approximately 25 tonnes of carbon dioxide. Conversely, if the focus is on the warming created over the next 20-years, then the so-called damage caused by a tonne of methane equates to about 85

tonnes of carbon dioxide. This is the period when methane does most of its damage. However, if we extend our time horizon to 500 years, then the warming created by emission of a tonne of methane is equivalent to emission of about ten tonnes of carbon dioxide. Scientists refer to the average time that methane remains in the atmosphere as its atmospheric residence time. Scientists are still refining their knowledge of this, but the latest IPCC figure is 11.8 years. That means that approximately half of the warming effect of methane emissions occurs in the first 12 years with the remainder occurring thereafter. By 100 years, well under 1% of the original molecules will be present. For those who are mathematically inclined, it can be approximated by a first order decay function. In contrast, the scientific consensus is that carbon dioxide emission entering the atmosphere now will still be causing elevated levels of carbon dioxide in the atmosphere many hundreds of years and possibly thousands of years from now. The maths of carbon dioxide removal from the atmosphere is particularly complex and there is still lots to learn. One of the features of New Zealand agriculture is that methane emissions have been approximately constant for more than 20 years. This means that the cloud of NZ-sourced methane is approximately in balance, with newly released methane approximately balancing methane decay. There are some who therefore argue, and do so vociferously, that farmers should not be charged for their emissions as long as this balance

is maintained. When I started writing this article, I had planned to say a lot more about the above argument, including both its strengths and weaknesses. But that will have to wait for another time. What I will say here is that although the atmospheric balance argument can be and should be an important part of the debate, there are also important counter arguments that need to be acknowledged as to why it does not let agriculture off the hook. I can see another article coming up on that issue alone. A key point about converting methane to carbon dioxide equivalence is that it depends not only on science. It requires a value judgement as to how we weight the importance of the very long-term future compared to the nearer term. And should New Zealand farmers be grandfathered and therefore allowed to continue the farming of methane-emitting animals as they have always done? Well, that is indeed enough for this article. But alas, I have only scratched the surface. A final point that I do want to emphasise is that methane debates must start with a basic understanding of the science. But that is just the start. The debate also requires value judgments as to what is important, what is fair and what is reasonable. Within that framework, there is no absolute right and wrong.

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

22/06/22 1:29 PM

Cheviot 630 Hundalee Road Deadline Sale

Don't miss out! Attention farmers, lifestyle buyers, hunters and fishermen. This very versatile 201 ha farm has a significant amount of natural bush including a QE2 covenant that is fenced and has an abundance of native birds. There is an eco-cottage in the bush which will appeal to tourists, as well as potential for farm-stay and farm tours. The property is just 10 km from the sea at Oaro, with abundant fishing and diving options and Kaikoura is just 30 km away. The farm has approximately 17 blocks and paddocks, with a considerable area being wheel tractor country, and is very well tracked. The home, built in 2005 is well insulated and constructed of board and batten with an iron roof. Comprising two double bedrooms plus a single bedroom, open plan living with large pantry as well as a tongue and groove feature ceiling. Heated by a log burner with wet back. Outbuildings include a two stand raised board woolshed with covered yard attached.

Deadline Sale closes Thursday 14th July, 2022 at 2.00pm, (unless sold prior) View By appointment Web pb.co.nz/RR93343

Maurice Newell M 027 240 1718

E mauricen@pb.co.nz

Hamish Anderson M 027 678 8888 E hamisha@pb.co.nz

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Property Brokers Ltd Licensed REAA 2008 | pb.co.nz

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Real Estate

farmersweekly.co.nz/realestate 0800 85 25 80

FARMERS WEEKLY – June 27, 2022

YOUR LOCAL EXPERTS National network, strong local connections Bayleys Country sales team have the market covered with experts in all corners of the country, who understand New Zealand’s rural sector, whether it’s dairy, drystock, horticulture, viticulture or lifestyle real estate. In over 22 years, we have become New Zealand’s number one rural real estate brand, with our dedicated team of country salespeople selling more farmland than any other agency.

Rotongaro 568 and 616 Hetherington Road Golden early season opportunity Rarely does an opportunity present itself to secure such a strategic farming investment so early in a season. Encompassing 106 hectares (more or less) in three titles. The farm is currently run as a OAD operation with last seasons production being 85,111kgMS. Supplying Fonterra the tidy 22 ASHB is complete with modern plant and is supported by a large feed pad. The farm is well catered for with quality infrastructure including a two-bay shed, calfshed, two haybarns, yards, and loading races all centrally located. Predominantly two and three-wire electric fencing subdivide the farm and flank the extensive laneway system. The four-bedroom character home has recently been extensively refurbished and boasts modern appliances and double glazing.

bayleys.co.nz/2313502

106ha

Auction (unless sold prior) 11am, Thu 28 Jul 2022 96 Ulster Street, Hamilton View 11am-12pm Wed 29 Jun Karl Davis 0508 83 83 83 karl.davis@bayleys.co.nz Peter Kelly 027 432 4278 peter.kelly@bayleys.co.nz

Bayleys Country team is part of the wider Bayleys national network across all sectors; Residential, Commercial and Property Services. We have the ability to derive insights and expertise from across the country and along with our local market knowledge, we can provide our clients unmatched results when it comes to finding the best buyers for your rural or lifestyle property.

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WHAKAMARAMA, BOP 116 Turner Road Magnificent Ocean Views This 25.2ha offers expansive views to the Pacific Ocean, Mayor Island and Mt Maunganui. With incredible building sites, that new dream home on your own rural property is now a lot closer to reality. Existing improvements include 1990's buildings, consented as "temporary accommodation" and "double garage and verandah". These buildings offer three bedrooms, kitchen-living area, bathroom and carport. Currently, the land is being utilized as a grazing block for cattle and features ponds and mature lusitanica and pine plantations. Potential here to create another title or two!

TENDER

Plus GST (if any) (Unless Sold By Private Treaty) Closes 12.00pm, Thursday 7 July

VIEW 12.00-1.00pm Wednesday 29 June

Anton Terblanche M 021 324 702 E anton.terblanche@pggwrightson.co.nz

pggwre.co.nz/TAR36215 PGG Wrightson Real Estate Limited, licensed under REAA 2008

Helping grow the country

This stud is performance driven and run under commercial conditions. For a sale catalogue please visit www.hazlett.nz/livestock/sale-catalogues/ classifieds@globalhq.co.nz

Primary Pathways – Jobs, Education & Training

Further enquiries: Callum Dunnett 027 462 0126 Ed Marfell 027 462 0120

Time for a Change If you are looking to retire your whistle, or hang up your overalls, then you might be interested in grape-farming. Just like on the farm, grape-farming involves tractors, machinery, fencing, cropping, irrigation, repairs and maintenance, cultivation, and plant husbandry.

A BIT ABOUT ALEXANDER FARMING GENETICS… Alexander Farming Genetics is farming 570 ha in Central Waikato. This is a family-owned farming operation that offers some diversity on the property. The farm is run as an intensive commercial sheep and cattle breeding and finishing operation along with running a small stud of Facial Eczema Tolerant Romney ewes. They are wintering around 8000su at 14 su/ha.

Ata Rangi is on the lookout for a vine shepherd, with a broad range of skills. We currently farm 80,000 vine stock units (VSU) over 11 paddocks around Martinborough. Unlike sheep and beef, vines don’t move, so no dogs needed. Just a good level of practicality, and energy.

THE OPPORTUNITY… The 2IC/Stock Manager will work closely with the owner in all dayto-day tasks on the property. You will need to be an experienced stockperson with a team of well-controlled dogs. As there are higher stocking rates on the property, a strong understanding of pasture management will be beneficial.

A BIT ABOUT YOU…

With a mixed stocking policy including both sheep and beef with a focus on both quality breeding and finishing, this is a fantastic opportunity to be involved in the running of a diverse farming operation. You will be working alongside the Farm Manager and the Shepherd General with the role being based around 80% stock work and 20% general duties. This is a great opportunity for those with a few years’ experience and looking to take the next step.

Included in the attractive remuneration is a choice of a two- or three-bedroom home. The farm is centrally located, just 15 minutes from Matamata, 20 minutes from Cambridge and 1 hour to Tauranga meaning there are ample recreational activities nearby as well as many schooling options to choose from.

You will have: • The ability to work efficiently on your own and as part of the team • Good pasture and stock management skills • A strong work ethic to “get the job done” • Excellent communication skills and an attention to detail • A team of dogs under good command

The employers of Alexander Farming Genetics are keen to guide and mentor the successful applicant, additional responsibility will be given as you become more versed in their farming operation.

LK0112276©

FURTHER INFORMATION:

LK0112232©

Te Uranga B2 Incorporation operates a 1153ha sheep and beef enterprise 10 minutes north east of Taumarunui carrying 12,000 stock units and is a past finalist in the Ahuwhenua Trophy Maori Farmer of the Year.

ON OFFER…

RECRUITMENT & HR

In business for over a decade, Hazlett Limited are built on the belief that PEOPLE come first and they live and breathe this principle. As a thriving and successful rural services business, they have a proud reputation for top-of-the-line livestock broking, insurance, agrisupplies and funding. With a motto of ‘Tough business, powerful harmony’, they work as ‘One Team’ to provide New Zealand farmers and businesses with services that will enable their success.

Shepherd - 1153ha

Along with relevant experience to fulfil the roles responsibilities and a passion for the industry, the successful applicant will come with: • A high level of stockmanship, including a small team of wellcontrolled dogs. • Reasonably good understanding of stud and genetics. • Sound computer skills and ability to utilise modern technology. • Strong communication skills, both written and verbal. • Excellent attention to detail and presentation skills. • Great people skills and the ability to relate well to a wide range of people.

We offer excellent remuneration for the right skills, good quality housing and a location close to town and schooling.

Applications close: Friday 8th July 2022

As the company continues its impressive growth, this new position has been created. Reporting to the General Manager – Livestock, Hazlett Ltd are seeking an exceptional leader to support the Lower South Island team (Timaru south). You will be responsible for recruiting, coaching and motivating a top team of livestock agents, ensuring they fulfil their potential and deliver agreed livestock commission plans. Using your experience, you will assist your team to build long term client relationships. You will also be responsible for developing and then implementing financial plans that contribute to the broader Livestock Division targets and strategy. Position responsibilities: • Lead the livestock team from Timaru South – living the values of Hazlett. • Contribute to the leadership group of the Livestock South Island team. • Lead auction/sale yard and on farm sales activity. • Undertake all staff performance and salary reviews for the region. • Lead the recruitment and training of the Livestock team, ensuring coaching programs are implemented. • Develop and monitor individual commission plans for agents. • Manage a small but high value client group. • Be responsible for compliance activities to ensure the business meets its obligations. • Encourage and support cross divisional referrals to the wider Hazlett Group (Insurance, Agri-supplies, Procurement & Funding). • Participate and contribute in the Hazlett Leadership Team strategy forums. What you will bring: • Deep livestock brokering experience and understanding of the Stock and Station industry. • Proven ability and experience to train and develop a team. • Passion, commitment, and drive. If you are looking to take the next challenge in your career and can demonstrate integrity, intelligence, and energy, please apply now. To discuss the role in confidence, please contact Steve Kennedy on 021 223 2850, or email s.kennedy@eqconsultants.co.nz

For more information phone Manager, Rod Walker on 07 895 7008 or send CV and covering letter directly to: Rod Walker 611 Ngakonui Ongarue Road RD 4, Taumarunui 3994 Or e-mail Upoko@teurangab2.co.nz

Exciting new position South Canterbury based Reporting to General Manager – Livestock

He aha te mea nui o te ao? He tāngata. He tāngata. He tāngata

If a change interests you, then get hold of Braden on 022 343 0942 or braden@atarangi.co.nz

There will also be a certain level of involvement in the stud component of the business. There will be the opportunity to learn more about genetics, which in turn will give you a greater understanding of breeding good stock.

Applications close Sunday 10th July 2022

• • •

We have a great, small team. Delicious coffee, and the hours are good for those who want a life outside of work. Mostly 40 hours per week, mostly Monday to Friday, with extra work during summer/spring drenching (spraying), grape mustering (harvest), stock protection (frost), and dagging (trimming and plucking).

Another key element of the role will be R&M in order to maintain and improve the already high level of presentation on the farm. The property has high-quality infrastructure with excellent sheep and cattle facilities, including a new woolshed and covered yards. They have established good laneways for ease of stock access.

For more information or to apply please visit https://bit.ly/39BncCF or give the Rural Directions team a call on 06 871 0450 for a confidential chat (Ref# 923068).

Livestock Manager – hazlett.nz Lower South Island

www.eqconsultants.co.nz

Tech & Toys THE ALL NEW COOPER

RUGGED TREK

@coopertiresnz www.coopertires.co.nz

0800 453 418

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2IC/Stock Manager

LK0112223©

FARMERS WEEKLY – June 27, 2022

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

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

CONTRACTORS GORSE AND THISTLE SPRAY. We also scrub cut. Four men with all gear in your area. Phone Dave 06 375 8032.

DOGS WANTED

FORESTRY

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

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

WANTED

FARM MAPPING

DOGS FOR SALE HEADING PUPS, 10 weeks. Well bred, good working parents. $250+gst. Phone 027 449 0048. Waikato. HUGHES FAMILY DOGS (Pets). Beardies, Border Collies, Beardie x Collies. https://www.youtube.com/ channel/UCFyzfLgzI8 py3Gc2iZ PoDNQ/videos 07 315 5553. WORKING DOGS, deliver NZ wide, trial! Buying / Selling since 2012! www.youtube.com/user/ mikehughesworkingdog/ videos 07 315 5553.

PINPOINT AREA SIZES of grazing and vegetation on your farm with an accurate and practical farm map. Call 0800 433 855 or visit farmmapping.co.nz for a free quote.

WORD ONLY ADVERTISING. Phone Debbie on 0800 85 25 80.

FOR SALE

GIBB-GRO GROWTH PROMOTANT

WINTER SPECIAL Buy $200 plus

PROMOTES QUICK PASTURE growth. Only $6.50+gst per hectare delivered. 0508-GIBBGRO [0508 442 247] www. gibbgro.co.nz. “The Proven One.”

Get a pair of Possum Merino wool socks worth $25

www.thesocklady.co.nz

farmersweeklyjobs.co.nz

JOBS BOARD

LEASE BULLS

RAMS FOR SALE

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.

AUTUMN CALVING lease bulls available. BVD. TB tested. Competitive rates. Freight paid. Phone 027 739 9939. WORD ONLY ADVERTISING. Phone Debbie on 0800 85 25 80.

WILTSHIRES-ARVIDSON. Self shearing sheep. No1 for Facial Eczema. David 027 2771 556.

FOR ONLY $2.10 + gst per word you can book a word only ad in Farmers Weekly Classiﬁeds. Phone Debbie on 0800 85 25 80.

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

CONTROL FLYSTRIKE & LICE Includes • Jetter unit • Pump & hose kit • Delivery to nearest main centre

76 80 +GS

JW110646©

2IC / Stock Manager SUPPLYING FARMERS SINCE 1962

Farm Manager Fencer General Livestock Manager

Industries Ltd

Senior Farm Assistant

DOLOMITE

DOGS WANTED

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

LEASE LAND WANTED WANTED LAND FOR lease. 100+ hectares. Anything considered. NZ wide. Phone: 027 498 9293.

LIVESTOCK FOR SALE RED DEVON BULLS. Well grown, purebred. Feilding. Phone 027 224 3838. FALLOW DOES for sale. Trophy genetics, 40 years breeding. Phone 021 886 065.

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

0800 436 566

WANTED TO BUY HOUSES FOR REMOVAL. North Island. Phone 021 455 787. WHAT’S SITTING IN your barn? Don’t leave it to rust away! We pay cash for tractors, excavators, small crawler tractors and surplus farm machinery. Ford – Ferguson – Hitachi – Komatsu – John Deere and more. Tell us what you have no matter where it is in NZ. You never know.. what’s resting in your barn could be fattening up your wallet! Email admin@ loaderparts.co.nz or phone Colin on 0274 426 936 (No texts please)

Gravel Screens Vibrating, Portable, USA tough. 20, 50, 75, 100, 150mm available mesh. 3 models from $10,800+

Phone Dick 0800 21 21 26

www.sitemachinery.nz

Travel further with Farmers Weekly Promote or find your next adventure in our Travel & Tourism section published monthly. Next issue – July 11 Booking deadline – Tuesday July 5, 12 noon To advertise your travel products and services contact: Debbie 06 323 0765 or email classifieds@globalhq.co.nz

National Fieldays moved.

Shepherd

Can’t wait? Talk to us now about your trailer requirements.

Viticulture Position

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FARMERS WEEKLY June 27, 2022

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

• Over 50 years experience of building quality, durable trailers for New Zealand conditions.

*conditions apply

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

• Our professional staff can build one for you at competitive prices.

Heavy duty long lasting Ph 021 047 9299 LK0111858©

Selling something?

0800 888 323 • www.prescotttrailers.co.nz

0800 85 25 80

Livestock Noticeboard

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

Ready to talk some Bull?

TE KUITI SELLING CENTRE FRIDAY 1ST JULY 2022

TE KUITI CATTLE

BEEFGEN is currently purchasing animals for live export for late July delivery:

& EWE FAIR Sheep 11.30am

2021 Holstein Friesian Heifers

Get in touch with Ella to discuss the best advertising options to suit your needs this sale season!

On A/c: Whakamaro Station: A&K Blake

F12 and plus $1,550 plus GST F8 – F11 $1,450 plus GST A2A2 $1,600 plus GST

1000 x Perendale Ewes SIL to Suffolk & Sufftex Ram 7/04. One earmark line, home bred ewes

2021 Angus Heifers Commercial $1100

farmed on hard Taumarunui Hill Country. Russell Profﬁt eczema tolerant Breeding for 7 years.

2021 Simmental Heifers Registered $1600 • Commercial $1350

06 323 0761 / 027 602 4925 livestock@globalhq.co.nz farmersweekly.co.nz/advertising

Selling due to loss of Lease. Will be drafted into age groups Contact: Richard Bevege 027 453 9824

LK0111964©

Cattle 12.30pm Contact: Alan Hiscox 027 442 8434

JW112257©

- 2ths to 5 years

Please contact your local agent for further information. BEEFGEN : Brian Pearson : 021 0907 1688 BEEFGEN : Jess Crow : 022 074 1210 BEEFGEN Office : 06 927 7154

Call Debbie

Livestock Noticeboard

FARMERS WEEKLY – June 27, 2022

SALE TALK My wife from the

yelled

bedroom asking, “Do you ever get a shooting pain across your body like someone’s got a voodoo doll of you and they’re stabbing it?” I replied, “No.” She yelled back, “How about now?” Courtesy of Peter Neilson

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

STOCK REQUIRED

Here at Farmers Weekly we get

500 SIL Pere or Pere x ewes Due Sept/Oct. Term ram 250 SIL ewes due early Aug Terminal ram Shorn R2 YR Fries or Fries x Bulls 300-400kg R2 YR Fries Bulls 420-520kg R2 YR Ang or Ex x Steers 500-550kg

some pretty funny contributions to our Sale Talk joke from you avid readers, and we’re keen to hear more!

NZ’s Virtual Saleyard 12.00pm Whangara Angus Bull Sale 3.30pm Turihaua Angus Bull Sale

WEDNESDAY 29 JUNE 10.00am Kernhardt Angus Bull Sale 2.00pm Turiroa Angus Bull Sale 7.00pm Royal Valley Speckle Park Bull Sale

1000 CS Rom R6th R5YR Ewes rwr 25/04 45 days 67kg 57 CS R2YR Ang Heifers VIC Ang 1st Jan 2 cycles 460kg

with the Farming community (it must be something you’d share with your

THURSDAY 30 JUNE

140 Top R1YR Fries Bulls 240kg

2.30pm Glanworth Angus Bull Sale 7.30pm Galloway Cattle Society Bull Sale

grandmother...) then email us at: saletalk@globalhq.co.nz

FRIDAY 1 JULY

www.dyerlivestock.co.nz

with Sale Talk in the subject line and

1.00pm Glenrossie Shorthorn & Santa Gertrudis Bull Sale

Ross Dyer 0274 333 381

we’ll print it and credit it to you.

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

Conditions apply

UPCOMING AUCTIONS

TUESDAY 28 JUNE

STOCK FOR SALE

If you’ve got a joke you want to share

Regular Livestream coverage of five North Island Saleyards Head to bidr.co.nz to find out more. ADVERTISEMENT

GALLOWAY CATTLE SOCIETY OF NEW ZEALAND (INC)

Inaugral Bull Sale Thursday 30 June, 7.30pm

Easy efficiency, any country Galloway cattle are one of the most rapidly-expanding of all British beef breeds and this expansion, not only at home, but in many countries overseas,

Galloways are well known for their

hardiness, great converters, easy calving with low weight calves and naturally polled.

www.nzgalloway.co.nz

is based on the realisation that here is a breed which has a great deal to offer

ONLINE ONLY AUCTION

to the discriminating breeder. Galloway cattle are a medium sized breed

that is suitable for first-time cattle owners with a low impact on pastures

NZ’s Virtual Saleyard

26 Lots up for auction

and fences. They are renowned for being an attractive heritage beef breed that is easily recognised by their various colour patterns from standard black, belted, white galloways with black ears, legs and muzzle and the lesserknown riggit galloway colour pattern with a white dorsal stripe running down its back with some animals producing dun and red colouring. Due to the breed’s naturally dense, insulating hair coat the galloway does not layer on excessive outside fat, which is generally discarded at slaughter time enabling good production of some of the finest quality beef that is lean and low in fat and cholesterol. Galloways are renowned for producing under the most economical conditions. Originating in the Scottish hills, the galloway thrives under free range conditions, upon types of land where other breeds could not exist, and can economically convert their inferior pastures with their ability to thrive in the harshest of winters with a willingness to eat weeds in pasture. Although developed for cold, wet conditions galloways equally do well on dry hill country. Galloways are well known for their high fertility, longevity (cows often calving annually until ages 15 to 20) with an ease of calving, excellent calf vigor. They are naturally polled (hornless). They are great colour markers when crossed in commercial herds and are ideal over dairy heifers for the ease of calving with beef calves that grow quickly and are attractive to local markets as feeder calves. All these factors make them an attractive option for both commercial and lifestyle block farmers.

Cam Heggie

| Livestock Genetics Rep & Auctioneer 027 501 8182 | camheggie@pggwrightson.co.nz

If you are considering galloways we will be holding our inaugural galloway auction on the 30th June 2022 at 7:30pm with a variety of galloway cattle.

Interested in receiving the bull sale results? Subscribe to the Farmers Weekly bull sales e-newsletter and receive upto-date results from sales across the nation, direct to your inbox. Head to tinyurl.com/bull-sale to sign up today. Got a result to share? Email Javier at livestock@globalhq.co.nz or text 027 602 4925.

www.farmersweekly.co.nz

LK0112074©

For details contact:

MARKET SNAPSHOT

Market Snapshot brought to you by the AgriHQ analysts.

Mel Croad

Suz Bremner

Reece Brick

Fiona Quarrie

Hayley O’Driscoll

Caitlin Pemberton

Deer

Sheep

Cattle BEEF

SHEEP MEAT

VENISON

Last week

Prior week

Last year

NI Steer (300kg)

6.05

5.55

NI lamb (17kg)

8.90

8.80

8.00

NI Stag (60kg)

7.95

5.60

NI Bull (300kg)

6.00

5.50

NI mutton (20kg)

6.05

6.00

SI Stag (60kg)

8.05

8.00

5.60

NI Cow (200kg)

3.90

3.80

3.90

SI lamb (17kg)

8.95

8.85

7.90

SI Steer (300kg)

6.00

5.95

5.15

SI mutton (20kg)

6.00

5.90

6.10

SI Bull (300kg)

5.95

5.85

5.10

Export markets (NZ$/kg)

SI Cow (200kg)

3.95

3.75

3.55

UK CKT lamb leg

Slaughter price (NZ$/kg)

9.92

9.00

10.0

US domestic 90CL cow

9.66

9.46

8.56

9.0 $/kg CW

9.74

North Island steer slaughter price

12.44

North Island lamb slaughter price

7.0 6.0

8.0

5.0

7.0

6.0

5.0

10.0

5.5

South Island lamb slaughter price

10.0 9.0 $/kg CW

South Island steer slaughter price

7.0

Oct

5.0

WOOL

4.5

(NZ$/kg)

Dec 5-yr ave

Feb

Apr 2020-21

Jun

5-yr ave

Jun

2020-21

Dairy

Oct

Dec

Aug 2021-22

MILK PRICE FUTURES

Apr

Jun

Aug

2020-21

2021-22

FERTILISER Last year

NZ average (NZ$/t)

Last week

Prior week

Last year

2.64

2.52

Urea

1381

734

37 micron ewe

2.35

Super

495

329

30 micron lamb

DAP

1794

1017

Grain

Data provided by

Feb

Fertiliser

Aug 2021-22

Two weeks ago Prior week

Coarse xbred ind. Apr

7.0

6.0

5.5

Feb

8.0

5-yr ave

6.0

Dec

9.0

5.0

7.0

5.0

Oct

South Island stag slaughter price

6.0

8.0

6.5

4.0

North Island stag slaughter price

8.0

11.0

4.0

Last year

9.0

6.0

4.5

Last week Prior week

10.0

12.06

6.5

5.0

$/kg CW

Slaughter price (NZ$/kg)

$/kg CW

7.0

Last year

11.0 12.30

Export markets (NZ$/kg) US imported 95CL bull

Last week Prior week

$/kg CW

Slaughter price (NZ$/kg)

Sara Hilhorst

Ingrid Usherwood

Top 10 by Market Cap

CANTERBURY FEED WHEAT

Company

YTD High

Fisher & Paykel Healthcare Corporation Ltd

19.61

33.4

YTD Low 19

Meridian Energy Limited (NS)

4.37

5.36

4.32

Auckland International Airport Limited

7.27

7.95

6.88

600

Ampol Limited

38.26

41.08

36.9

9.00

550

Spark New Zealand Limited

$/tonne

650

9.50 $/kg MS

10.00

8.50 8.00

500 450

7.50

400

7.00

Jun-21

Aug-21

Oct-21 Dec-21 Sept. 2021

350

Feb-22 Apr-22 Jun-22 Sept. 2022

Jun-21

4.7

4.98

4.3

40.25

44.3

36.11

Mercury NZ Limited (NS)

5.41

6.36

5.2

Mainfreight Limited

68.18

94.4

67.91

Contact Energy Limited

7.24

8.42

6.82

Infratil Limited

7.62

8.4

7.33

Ebos Group Limited

Aug-21

Oct-21

Dec-21

Feb-22

Apr-22

Jun-22

Listed Agri Shares Company

DAIRY FUTURES (US$/T) Nearby contract

CANTERBURY FEED BARLEY Prior week

vs 4 weeks ago

600

WMP

0.00

550

SMP

0.00

500

AMF

0.00

Butter

0.00

Milk Price

0.00

$/tonne

Last price*

400 350

Jun-21

* price as at close of business on Thursday

WMP FUTURES - VS FOUR WEEKS AGO

550

4200

500

4150

450

4100 4050

Aug-21

Oct-21

Dec-21

Feb-22

Apr-22

Jun-22

WAIKATO PALM KERNEL

4250

$/tonne

US$/t

450

40-44 FW 27-06.indd 40

Jul Aug Latest price

Sep

Oct 4 weeks ago

Nov

YTD High

YTD Low

ArborGen Holdings Limited

0.22

0.27

0.215

The a2 Milk Company Limited

4.76

6.39

4.2

Comvita Limited

3.15

3.78

2.98

Delegat Group Limited

10.2

14.45

Fonterra Shareholders' Fund (NS)

3.14

3.78

2.75

Foley Wines Limited

1.45

1.57

1.38

Greenfern Industries Limited

0.125

0.25

0.089

Livestock Improvement Corporation Ltd (NS)

1.5

1.73

1.3

Marlborough Wine Estates Group Limited

0.17

0.26

0.165 0.187

New Zealand King Salmon Investments Ltd

0.197

1.38

PGG Wrightson Limited

4.53

5.76

3.93

Rua Bioscience Limited

0.3

0.53

0.29

Sanford Limited (NS)

4.17

5.07

4.03

Scales Corporation Limited

4.6

5.59

4.07

Seeka Limited

4.7

5.36

4.49

Synlait Milk Limited (NS)

3.2

3.54

3.04

T&G Global Limited

2.7

3.01

2.7

S&P/NZX Primary Sector Equity Index

11984

14293

11724

S&P/NZX 50 Index

10702

13150

10588

S&P/NZX 10 Index

10408

12725

10291

400 350

Jun

5pm, close of market, Wednesday

300

Jun-21

S&P/FW PRIMARY SECTOR EQUITY

Aug-21

Oct-21

Dec-21

Feb-22

Apr-22

Jun-22

11984

S&P/NZX 50 INDEX

10702

S&P/NZX 10 INDEX

10408

22/06/22 3:06 PM

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

Analyst intel

WEATHER

Overview

Half-year report is a mixed bag

The short outlook for the week ahead is mainly settled then a southwesterly airflow starts to develop this weekend. For a slightly longer look at things, today and Tuesday are mainly settled thanks to high pressure. A front teases the far south bringing rain or showers, meanwhile an area of low pressure forms in the Tasman Sea. This low rotates over the top of New Zealand on Wednesday bringing some rain to the far north, On Thursday this low pushes out to the east while another front moves onto the far south. This front builds and pushes northwards during Friday and Saturday then letting in a southwest airflow in behind bringing cooler temperatures and showers.

14-day outlook

Mel Croad mel.croad@globalhq.co.nz AT THE halfway mark for the year, sheep and beef farmers are searching for some clarity in terms of what the rest of the season is going to look like. After a roller coaster couple of years, there is no blueprint to follow. Breaking it down, market conditions are mixed at best. For lamb, global markets appear more comfortable with dialling down pricing expectations. These lower asking prices and softer demand stretch across most key markets. Fortunately, through May we had the exchange rate on our side, which buffered this slowdown in in-market pricing. To be fair, prices received for NZ lamb are still at near record levels, even though global markets are slightly wobbly. For beef, market messages remain firm. There have been some jitters appear in the US market, based on their oversupply of beef. Key Asian markets appear more willing to accept NZ beef but shipping and container problems are still continuing to hamper the ability to supply these lucrative markets. Beef export values have regathered some of the momentum lost in recent months and are again surging higher. In recent years, ignoring 2020, export demand and pricing has continued to rise without looking back from this point in the season. Much of this can be attributed to the seasonal slowdown in production and exports out of NZ. But generally, markets have been in good shape.

Another somewhat settled week on the way for the first half of this 14 day outlook, there is rain or showers about the far south though while elsewhere is frosty and settled. Rain for the far north on Wednesday as a low moves through. Friday is when we start to see a northwest airflow build with rain moving into the West Coast, a few showers for the western North Island and about the far south. This weekend southwesterlies push through bringing in showers. Southwesterlies and showers look to continue for the first half of next week then perhaps the second half maybe some high pressure will start to move in from the Tasman Sea.

Highlights

22/06/2022

Wind

Winds are mostly light the first half of this week, maybe Wednesday easterlies for the upper North Island might be a little fresh. Northwest winds gusty through Cook Strait on Friday, this weekend southwesterlies may be fresh to strong for some coastal areas.

Source: NIWA Data

7-day rainfall forecast Showers for Southland and Fiordland today, easing tomorrow. Rain for Northland on Wednesday meanwhile a few showers continue for Fiordland and perhaps Southland. Showers again on Thursday about the far south. Rain for the West Coast on Friday, showers for Southland. A front moves over the North Island on Saturday bringing rain, showers for the rest of NZ. Showers continue on Sunday especially for coastal areas, a bit drier up through the interior.

Temperature Average temperatures for the first half of this week. On Thursday and especially Friday we start to warm up in the east. On Saturday as southwesterlies spread over the South Island temperatures then drop, these cool temperatures spread to the North Island on Sunday.

Highlights/ Extremes

Key Asian markets appear more willing to accept NZ beef but shipping and container problems are still continuing to hamper the ability to supply these lucrative markets.

No exceptional weather coming up this week, rain for Northland on Wednesday has a slim chance of being heavy. Warm temperatures can be expected in the east on Friday. Expect frosts during the nights if skies are clear and winds are light.

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

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LH013

Soil Moisture

Last year is a classic example of continuous upside amid concerns about supply. March-July last year was peppered with supply contracts indicating on-going concerns about processing supplies and the ability to service commitments to customers. This year the potential “belt tightening” of global consumers and the uncertainty about how much stock is left to process means only a handful of contracts have been released. Without the clarity those contracts can give, most are simply expecting prices to follow trends set last year without factoring in the broader picture. Store lamb prices achieved from late-May to early-June backs up these expectations. For store margins to be realised later in the season, farmgate lamb prices are going to have to continue to lift. Farmgate slaughter prices for lamb are currently 77-97c/kg ahead of this time last year, at nearly $9/kg. This has been achieved almost two months earlier than last year. Based on the position of current export values there is definitely some wriggle room for lamb slaughter prices to continue to lift, as outlined in AgriHQ’s recent Livestock Outlook pricing forecasts to November. But weighing on just how rosy lamb prices are going to get is the bigger global picture. High global inflation and tighter financial conditions are currently taking the shine off expectations. That leads to the possibility of consumers trading down on proteins which will have more impact on lamb demand than other proteins. Expectations for beef prices at the farmgate remain solid. Current bull and prime prices are 50-80c/ kg above this time last year. With less widespread market wobbles than lamb is dealing with, AgriHQ is picking beef prices to remain on track with further upside earmarked through to spring. If the US can work through their current glut of beef and start looking for imported supplies, then this could give beef prices an extra boost in the last quarter of this year.

22/06/22 3:17 PM

SALE YARD WRAP

Prime prices hit new heights As temperatures plunge, a boost in competition for prime stock is bringing plenty of heat to the market. That lift in demand pushed both steer and lamb prices to record heights at the recent Canterbury Park prime sale. A pen of five lambs reached $320 with a further 70 making $285-$300. PGG Wrightson regional livestock manager Grant Nordstrom said demand is now outstripping supply “the quality has lifted as the season has progressed. Since the weather has been so favourable, we have seen several farmers hang onto lambs longer and take them to these heavier weights. The main reason that farmers are not turning over lambs so much this year is that they (the lambs) are proving to be hard to replace, so farmers are opting to carry what they have to heavier weights and the season has allowed for that. It is the heavier end that are in demand as it outstrips supply on these types”. A similar story played out in the prime cattle pens where high yielding Angus and Murray Grey-cross steers pushed to new heights of $3.44/kg. “Prices are lifting as space restrictions are easing and people are looking ahead to the high prices going forward. There are some good future premiums out there and some buyers will be putting the cattle away to take advantage of those premiums later on”, Nordstrom said. Prime ewes have also exceeded $300 at Temuka and Coalgate recently and as the season progresses it is expected that these levels for the top end of the ewes and lambs will become the norm. NORTHLAND Wellsford cattle • Good R2 beef-cross heifers made $2.79/kg to $2.90/kg • Better R1 dairy-beef and beef-cross steers lifted to $3.44/kg to $3.59/kg • R1 Hereford-Friesian heifers, 157-195kg, earned $3.25/kg to $3.38/ kg • Good replacement R1 Friesian heifers, 273kg, achieved $480 Buyers with orders to fill helped the market improve at WELLSFORD last Monday. R2 steers sold on a more consistent market with the majority $2.85-$2.95/kg and those of lesser breeding were typically $2.70-$2.80/kg. The R2 dairy-beef heifer average jumped 15c/kg to $2.65/kg with better types able to reach $2.68-$2.76/kg. Read more in your LivestockEye.

AUCKLAND Pukekohe cattle • Best prime steers lifted to $3.00/kg, $2100 • Prime bulls achieved $2.32/kg, $2080 • Boner cows lifted to $1.64/kg to $1.84/kg, $970-$1260 • R2 heifers earned $850-$990, $2.23/kg to $2.65/kg Prime cattle were strong at PUKEKOHE on Saturday, June 18 with medium prime heifers able to achieve $2.81/kg to $3.18/kg, $1670-$1690 and light to medium steers, $2.87$2.94/kg, $1520-$1700.

WAIKATO PGG Wrightson Frankton cattle • The R2 dairy-beef steer average lifted 10c/kg to $2.83/kg • R2 dairy-beef steers typically sold from $2.70/kg to $2.90/kg • Good R2 Friesian heifers, 434kg, realised $2.34/kg • The R1 dairy-beef steer average held at $3.01/kg • R1 heifers mostly traded at $2.33-$2.43/kg The market for better types ticked along at the PGG Wrightson FRANKTON cattle sale last Tuesday. R2 steers sold on a more consistent market with better types $2.91$2.97/kg and the next cut $2.80-$2.86/kg. Good R2 Hereford and Hereford-Friesian heifers, 345kg356kg, met good demand to reach $3.01/kg. The bulk of the autumn-born weaner steers and heifers earned $360-$405 and a line of 20 100kg Friesian bulls realised $400. The boner cow market strengthened with most $1.60$1.70/kg. Read more in your LivestockEye.

BAY OF PLENTY Rangiuru cattle and sheep • R2 Hereford-Friesian steers, 373kg, made $2.79/kg • R2 Jersey bulls realised $1290 Store cattle markets dropped at RANGIURU last Tuesday due to a lack of demand. Most R2 Hereford-Friesian steers along with Red Devon-Friesian traded at $2.67-$2.77/kg and others were further discounted. Among mixed-quality R2 heifers, Hereford-Friesian and Charolais-Friesian were the highlights and earned $2.65-$2.73/kg at 356-406kg. Autumn-born yearling Hereford-Friesian steers returned $2.72/kg over Hereford-Jersey. Prime steers sold on a steady market and most made $2.72-$2.82/kg while Murray Grey heifers, 522kg, realised $2.49/kg. Friesian cows over 500kg traded at $1.79/kg. A small yarding of prime lambs collected $135-$148. Read more in your LivestockEye.

POVERTY BAY Matawhero sheep 17.6 • Better store ram lambs earned $139 • Heavy ewe lambs eased to $143-$148 • Mixed-age Romney ewes, scanned-in-lamb to Poll Dorset, made $225 • Prime lambs mostly fetched $150-$195 • Better prime mixed-age ewes sold for $170-$179 There was a large selection of 4700 store lambs on offer at MATAWHERO on Friday, June 17. The average eased $5 to $134.70. Male lambs were mostly $140-$145 though heavy types reached $158-$166. Light ewe lambs traded at $91$120 and medium, $129-$134. Good 2-tooth ewes, scanned to Poll Dorset and South Suffolk rams, met good demand to reach $230-$242 while 4-5-year scanned with singles and lesser 2-tooths sold for $205-$206. Read more in your LivestockEye.

TARANAKI Taranaki cattle • R2 Hereford-Friesian steers, 439-474kg, firmed to $2.95-$3.05/kg • Top lines of R2 Friesian steers, 419-455kg, sold from $2.27/kg to $2.44/kg • Boner cows firmed to $1.85-$1.89/kg A big feature at the TARANAKI cattle sale last Wednesday were owner-bred R2 Friesian steers and second and third cuts sold from $1.92/kg to $2.17/kg for 401-407kg. Hereford-Friesian, 394kg, managed $3.20/kg though other lines were off that pace. The balance of the R2 steers were very small lines. Quality was mixed in the R2 dairy-beef heifer pens and most varied from $2.20/kg up to $2.39/kg. A small R3 section featured dairy-beef and the top heifers reached $2.97-$2.98/kg which was in line with the second tier of steers of the same age. Top R3 steers returned $3.01$3.09/kg. Weaner tallies were low, and quality was also mixed. Read more in your LivestockEye.

HAWKE’S BAY Stortford Lodge prime sheep • One pen of heavy ram lambs traded at $213 • Heavy male and cryptorchid lambs mostly returned $197.50-$198 • Medium-heavy mixed-sex lambs fetched $177-$202 Ewe numbers came back to more usual levels at STORTFORD LODGE last Monday after a busy sale the previous week. Very heavy lines ranged from $195 to $201 followed by the largest section of the day, heavy pens, that made $178.50-$187. Most others were good types that fetched $147-$168. Read more in your LivestockEye. Stortford Lodge store cattle and sheep • R2 Angus & Angus-Hereford steers, 459-518kg, firmed to $3.29$3.31/kg • R1 Angus steers, 216-258kg, made $870-$955

KING COUNTRY Te Kuiti Supplementary ewe and cattle sale 17.6 • Four-tooth ewes made $182-$200 • Angus cows, 576-625kg and vetted-in-calf, sold for $1.87-$1.97/kg • The best of the R3 steers, 543-590kg, earned $2.93-$2.96/kg, $1595-$1750 • The best of the R2 steers, 500-512kg, fetched $2.89/kg to $2.95/kg The supplementary ewe and cattle sale were held at TE KUITI on Friday, June 17. The best of the capital stock 2-tooth Romney ewes, run-with-ram, earned $186 and the next cut $166. Six-year Romney, scanned-in-lamb, achieved $218. In the cattle pens, capital stock R2 Angus heifers, 435-472kg and vetted-in-calf, achieved $2.42/kg to $2.56/kg, $1055-$1210. Most R2 Angus-cross and Hereford-cross heifers, 340380kg, traded at $2.56-$2.60/kg. Freshly weaned R1 crossbred steers, 340kg, realised $3.05/kg, $1040.

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CELEBRATION: Koanui Polled Hereford at Maraetotara, Hawke’s Bay, conducted its 50th annual bull sale. Pictured from left are Chris Chesterman, stud founder Fred Chesterman, past Hereford Association president Colin Corney and Jennifer Chesterman.

22/06/22 3:10 PM

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022

• Most prime lambs returned $160 to $240 Prime cattle sold to good demand at COALGATE on Thursday, June 16, and traditional and beef-cross steers, along with a few heavier dairy-beef, collected $3.10-$3.23/ kg. Heifers were much stronger as Angus and Charolaiscross, 429-515kg, traded at $3.10-$3.17/kg and a second tier managed $3.02-$3.11/kg. Beef bulls which weighed 463546kg made $3.10/kg to $3.25/kg. Boner cow returns mostly settled at $2.00-$2.24/kg and beef cows reached $2.42/kg. Better R2 Hereford-Friesian steers, 420kg, made $2.90/kg while R2 traditional heifers realised $2.78-$2.80/kg along with well-marked Hereford-Friesian. Forward Corriedale lambs made good returns and top woolly ewe lambs from Greta Valley fetched $200. Corriedale-blackface from one Rakaia vendor collected $158-$178. The prime lamb market lifted again and the heaviest earned $273 while the ewe market held at $125-$234. Read more in your LivestockEye.

ATTENTITIVE: A full bench of buyers at Koanui Herefords bid strongly on the two-year bulls and on 10 in-calf heifers sold for the first time by the Chestermans. • Capital stock, woolly 6-tooth Romney ewes, scanned 180% to Romney, made $235 • Store male lambs averaged $142 • Most ewe lambs eased to $124-$145 One vendor provided the bulk of the 126-head yarding of cattle at STORTFORD LODGE last Wednesday, as they offered up 73 R2 Angus & Angus-Hereford steers. The third cut included two reds and along with a pen of Angus sold for $3.11-$3.14/kg. Nearly 2500 breeding ewes were penned, and most were capital stock due to a farm sale and a lease. A consignment of 800 4-tooth to 4-year Romney ewes sold for $230-$235, and from a different vendor 530 2-tooth Romney ewes, scanned 170%-183% to Romney, made $206-$230. Despite more outside buying power, the average male lamb price came back $10, mainly due to fewer heavy end lambs and a softer market. Ewe lambs also came back to an average of $126. Read more in your LivestockEye. Dannevirke sheep 16.6 • Top prime lambs reached $177 • A small offering of store wether lambs made $147 and mixedsex, $151 DANNEVIRKE yarded nearly 3500 sheep on Thursday, June 16 and store lambs made up the majority. In the male pens cryptorchid, ram and male lines sold from $104 to $143.50 and averaged $130-$135. Ewe lambs were variable and started at $40 and sold up to $151, though averaged $110-$115. Just over 660 ewes were penned and sold from $80 to $178 for an average of $150-$153.

MANAWATŪ Feilding store cattle and sheep 17.6 • R3 traditional steers, 535-625kg, lifted to $3.25-$3.35/kg • R2 Friesian bulls, 455-565kg, eased to $3.05-$3.10/kg • A consignment of 170-200kg R1 Angus steers averaged $865, $4.60/kg • Store male lambs averaged $151 • Store ewe lambs averaged $128 A little over 1500 store cattle sold at FEILDING on Friday, June 17. Vetted-in-calf Angus cows, 510-575kg, started the sale at $1190-$1240, followed by 530-570kg R3 dairy-cross steers for $3.00-$3.20/kg. R2 traditional steers, 355-525kg, were mostly $3.20-$3.30/kg with other breeds usually $2.90-$3.10/kg. R2 traditional heifers, 375-475kg, returned $2.95-$3.15/kg while the rest typically made $2.65-$2.80/kg.

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R1 Angus steers, 135-170kg, traded at $540-$650. R1 heifers were tougher selling but 155kg Hereford-Friesian were solid at $505, $3.20/kg. The market was steady-to-weaker on the 13,000 store lambs. Forward-store males were $170-$185, good lines $155-$170, medium $130-$145 and light, $115125. Good ewe lambs sold for $135-$145, medium $125$135 and light, $110-$120. Good scanned-in-lamb ewes, 163%-200% to a terminal ram, made $207-$230. Read more in your LivestockEye. Feilding prime cattle and sheep • Angus and Angus-Hereford cows, 728kg, fetched $2.27/kg • Top lambs returned $225 Cows remained the focus in the cattle pens at FEILDING last Monday and a mixture of dairy and beef went under the hammer. Better beef types collected $2.11/kg or more and the top tier of boner cows returned $2.05-$2.12/ kg. Hereford-Friesian steers, 573kg, earned $2.82/kg and heifers of the same breed which weighed 424-457kg made $2.60-$2.65/kg. Friesian heifers, 397-414kg, collected $2.18$2.21/kg and in-spec beef bulls realised $3.04/kg and up to $3.16/kg for 755kg Simmental-Friesian. Throughput lifted in the sheep pens and demand from buyers was limited due to the short week. The top end held, or was slightly stronger, while a significant number of lighter types were entered and struggled. Ewes held on last week. Read more in your LivestockEye. Rongotea cattle • Better R2 Hereford-Friesian and Speckle Park-cross steers lifted to $2.60/kg to $2.79/kg • Good R2 Simmental-cross and Angus-cross heifers realized $2.62-$2.63/kg • R1 Hereford-Friesian steers, 248kg, achieved $2.42/kg • Boner Friesian cows, 425-483kg, improved to $1.39/kg to $1.53/kg There was a big yarding of in-calf cows at RONGOTEA last Tuesday, New Zealand Farmers Livestock agent Darryl Harwood reported. Values depended on age and figures though in-calf Friesian earned $785-$1200, Friesian-cross $870-$970 and Jersey, $655-$1100. Better R2 HerefordFriesian heifers improved to $2.46/kg.

CANTERBURY Coalgate cattle and sheep • Prime Angus steers, 579kg, fetched $3.32/kg • Prime Angus-Hereford heifers, 575kg, reached $3.20/kg

Canterbury Park cattle and sheep • Prime Angus heifers, 465kg and 540kg, reached $3.30/kg • Top prime lambs fetched $320, a lamb record for Canterbury Park New price records for June were set at CANTERBURY PARK last Tuesday in both the cattle and sheep sales. A Murray Grey-cross steer, 663kg, and Angus, 505kg, were tied at the top with returns of $3.44/kg as steer and heifer markets strengthened. Many beef steers traded above $3.30/kg and the bulk of dairy-beef realised $3.25-$3.35/ kg. All reasonable heifers made $3.00/kg or more. Top beef cows traded from $2.00/kg to $2.26/kg and in-spec bulls ranged from $2.40/kg to $2.96/kg for a Red Devon at 715kg. Lower demand for store lambs resulted in a softer market and male lambs received a premium over ewe lambs. Most ewe lambs sold for $140-$158. The prime lamb market lifted again and mainly ranged from $145 to $239, and ewes eased. Read more in your LivestockEye.

SOUTH-CANTERBURY Temuka prime and boner cattle, all sheep • Prime dairy-beef steers, 555kg and above, firmed to $3.21-$3.32/ kg • Top prime traditional heifers lifted at least 10c/kg to make $3.17$3.28/kg • The boner Friesian cow average improved 9c/kg to $1.99/kg • Very heavy store ewe lambs reached $202-$228 • Heavy prime ewes sold for $220-$320 Prime cattle strengthened across the board at TEMUKA last Monday. There were particularly good lines of Angus on offer and steers met strong demand to reach $3.36$3.41/kg. Better dairy-beef heifers held at $2.95-$3.05/kg. Nice prime Angus cows, 566-670kg, achieved $2.38/kg to $2.50/kg. Heavy male store lambs were in demand to reach $166-$176. Heavier mixed-sex lambs traded at $164-$215, medium $121-$137 and lighter types, $91-$107. The median prime lamb price lifted nearly $30 to $217 with the top end to $283. Prime ewes strengthened with the median at $170. Read more in your LivestockEye.

SOUTHLAND Lorneville cattle and sheep • Prime heifers, 500kg and above, improved 10c/kg to $3.00-$3.10/ kg • Boner cows achieved $1.75-$1.80/kg • R2 Angus steers, 331-366kg, made $1010-$1180 • Local trade rams strengthened to $60-$80 Prime steers sold on a strong market at LORNEVILLE last Tuesday with the best above 500kg able to reach $3.05$3.10/kg and lighter types, $2.90-$3.00/kg. In the store pens, R2 Hereford-cross steers achieved $3.08/kg and Angus-cross heifers, 345kg, $2.74/kg. R1 Belgian Blue-cross heifers, 199kg, traded at $2.96/kg and 194kg Angus-cross, $2.70/kg. Heavy prime lambs held at $200-$230 while light to medium types lifted to $150-$190. Heavy prime ewes strengthened to $220-$250, medium $180-$210 and light, $120-$150. Top store lambs sold for $130-$150, medium $115-$125 and light mostly $100-$110.

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The most comprehensive and independent sale results you can get your hands on

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Only AgriHQ sample-weighs store lambs to give you $/kg LW benchmark pricing Informed commentary to support the trends Emailed directly after the sale

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22/06/22 3:11 PM

Markets

FARMERS WEEKLY – farmersweekly.co.nz – June 27, 2022 NI COW

SI STEER

SI LAMB

($/KG)

6.00

3.90

8.95

STORE MALE AVERAGE AT STORTFORD LODGE ($/HD

142

high $3.40-$3.44/kg $144-$159/hd yielding prime Good store male lambs lights High steers, 663-735kg, at at Matawhero 17.6 Canterbury Park

SMP and butter in demand Hugh Stringleman hugh.stringleman@globalhq.co.nz

LOBAL Dairy Trade showed a mixed bag of price movements in the latest auction, including a substantial 9% fall in the average values of cheddar. Cheddar prices have fallen 25% in the past five fortnightly auctions, although they had risen 60% over the nine months prior. NZX dairy analyst Stu Davison wonders if the quick fall after the prolonged rise is a sign of inflationary food prices hitting consumers. He said there was a dramatically sharp lack of demand from the outset of the auction. “Only enough buyers arrived to clear the increased volume in this auction. “It seems that cheddar prices are in free fall again, with the market correcting lower over the last five auctions, following the

long drawn-out price hike seen from July last year. “Price movements across contract periods suggest that buyers are expecting supplies to be sufficient as we approach the end of the current year. “This outcome poses the question is cheddar the canary in the mine for inflationary price impacts hitting consumers?” The GDT price index fell 1.3% after the 1.5% rise in the previous auction. Whole milk powder prices were steady at minus 0.6% and skim milk powder rose 1%, while butter led the way up 2.4%. The skim milk powder and butter product stream is performing particularly well right now, with average skim prices higher than whole milk powder. Fonterra is moving its new season processing into more skim and butter and away from whole milk powder, taking advantage of its wide product optionality, ANZ agricultural economist Susan Kilsby said. “Normally WMP would be

worth more than SMP, but at the moment those values are inverted because SMP has a wider variety of end uses and a large number of customer countries. “So much of our WMP is used to reconstitute liquid milk and the prices are dependent on demand from China and Sri Lanka, which is subdued.

It seems that cheddar prices are in free fall again, with the market correcting lower over the last five auctions. Stu Davison NZX Dairy Derivatives “Butter prices are high, reflecting the high levels of all fats globally, including vegetable fats.” Kilsby was comfortable with her milk price forecast of $8.50/kg

milksolids, although she did point out the spot price based on the latest GDT results would be more than $10. Milk supplies around the world are constrained and there is no building trend towards more milk, anywhere among the seven main producing regions. The mixed nature of the latest GDT result suggests prices are in a holding pattern, Westpac senior agri economist Nathan Penny said. “At the last auction the market factored in better covid news in terms of easing restrictions in China. “But with no fresh news to digest on that front, the price moves reflected changes in product mix rather than any underlying factors.” Penny said global supply remains very tight and when China announces more relaxation of covid rules then demand will go higher. His farm gate milk price forecast is $9.25. Dairy farmers can also secure

INVERTED: ANZ agricultural economist Susan Kilsby says normally WMP would be worth more than SMP, but at the moment those values are inverted because SMP has a wider variety of end uses.

$10-plus contract milk prices on the NZX Dairy Derivatives market for milk price futures.

Find out more about AgriHQ at agrihq.co.nz

SAVING THE BEST TILL LAST!! The Bull Selling Season isn’t over yet.

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22/06/22 3:06 PM

Farmers Weekly NZ June 27 2022

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